The decades of association with a particular business makes us one of the experts in the field who has an idea about the impact of a particular variable on a particular aspect of the industry. With such deep and firsthand experience, we are sharing our understanding about the real estate in the year 2019. One thing that you will have to agree with us before we proceed further is that there is no crystal ball in the real estate business. You can’t expect everything that we mention here as the future prophecy that will definitely happen. Rather we are just sharing our opinion with the expert knowledge and insights into the industry to provide you with a rough outlook about what to expect in this industry this year.
By reading this article, you’ll get some of the ideas about the possible opportunities and risks involved in the industry this year. This analysis is not dependent on only the understanding of the real sector rather the statistics depicting the historical trends in this sector. But these statistics combined with the knowledge about the impacting factors have helped in the generation of this article. Here we are going to provide you with the discussion and analysis of certain factors, which can really have a role in the real estate market.
1. Interest RatesThe rising interest rates impact the rate of mortgage too. As most of the house owners use the mortgage as a medium to buy the home, the increase of mortgage rate increases their monthly expenses. Even a small increase in the interest rate is going to impact the mortgage rate directly, resulting in higher expenses to be paid for owning a house. With the increase in the mortgage rate, some of the individuals who might have about a house otherwise would not even qualify for purchasing a home. Along with it, the spending and saving proportionality might get disturbed, and the individuals or households might not go for new houses.
All of these factors result in the “seller market” nature of the real estate market to the buyer market or at least the neutral one. With this change, you must expect the adjustment of the prices. So, if you are a buyer, then you must be knowledgeable of this situation as it can be advantageous for you.
Now with all this explanation, what do you expect 2019 to be in terms of real estate? Although, no one knows the future, but still it can be estimated that small increase in the interest rates can be seen, which will impact the mortgage rates and thus price adjustments because of the reduced demand of households. As a buyer, you must wait till this situation before you buy a house in 2019.