We are midway into 2019, and it has made an impact on different industries. Real estate industry is one of them and following we are going to mention a few changes that are still due. We are going to name the trends that will change the real estate market until the end of this year.
1. Buying a New Piece of Property is Difficult
Here are some reasons why buying a new piece of property is more difficult this year than before. Mortgage rates have been climbing this year and are estimated to reach the peak this year at staggering 5.8 percent.
You better evaluate the affordability of monthly payments. The mortgage rates will increase. Yes, there will be a few slips in price points. Thanks to these facts, the prices of property changes. It will decrease the sale ratio but only by a small percentage.
In recent years, the inventory failed to keep up with the current demand. This year, we expect this trend to change, but it will not be profound. Instead, it will only increase by 7 percent. This is nothing impressive, but it helps to ease deficient from previous years. As the increase is small, it helps the seller to stay on top. Its expected increase will come from luxury estate hitting the market. Agents who have made a living working with luxury homebuyers or sellers who benefit from this change to test the skills.
It’s surprising, but Millennials will continue to make a good chunk of the buyer demographics. The majority of the millennial group is now reaching their 30s. So most of them will no longer be a first-time buyer. They are no looking to expand as they are looking for a nicer place to keep your head. It is believed millennials will be price conscientious.
Most still carry the burden. It’s predicted they are willing to make cuts on location, amenities, and even space to save money. This is because they are still paying back their student debt.
The insurance market took note of it. There are making hangs to entertain the millennials, and thus, they make insurance more affordable. Some companies tailor their packages for millennial to entertain their needs. iSelect is one of these companies, and it tailors insurance packages to fulfill your requirements.
4. High Equity
People who bought a piece of land during recessing or shortly afterward bought it with low interest. It remained the same till 2015. But after that, the prices rose. If you are a victim, then the equity rose, and it happened with almost every mortgage payment. Every renovation you make to the house will be sold for a better price. The higher your equity is, the more you net form sale.
The higher your equity is, the more you will get from selling your property. This will go with the down payment of your next payment. Large down payments favor you in long term installments. It will help you with better monthly payments and mortgage insurance.