If you’re planning to buy a home in 2019, there’s a lot you need to know. This past year has seen growing competition in the housing market as there are fewer homes on the market compared to the growing number of buyers. Mortgage rates are also on the rise at their highest levels since 2011, and this is intimidating to many potential home buyers.
Luckily, home prices are expected to slow down their rate of growth in the next year. This gives many new buyers some room to breathe while they look for a fit for their budget. The next generation of homebuyers, Millennials, account for 45% of homebuyers and that percentage is only expected to grow. With a new generation comes new trends in the real estate market.
With all of these stats and predictions about 2019, what kinds of homes should you be looking for this year? Here are the best types of homes to buy if you’re looking to make a purchase in 2019.
First, the easiest way to identify a good investment in a home is to look at the market. Some real estate markets are experiencing major booms right now, and these are only expected to grow in 2019. Where do we see the biggest growth? Here are the top cities to look out for:
Phoenix, Arizona – Increasingly affordable with 1.6% annual population growth each year
Atlanta, Georgia – Another affordable location with 3% population growth
Cape Coral, Florida – A Moderately affordable city with over 3% population growth
Of course, it’s not always possible to move long distances, but it might be worth considering one of these locations if you’re looking for an investment property or a great home deal. Within these cities above, you can find everything you need to secure a home you love that will gain value over time. Now is the time to make a purchase while the market is still hot but not too competitive.
Since March 2018, the average price for new construction homes has been on a steady decline. In fact, it’s decreased by over 7 percent in the past year. That means the time is now to make a purchase on a new construction home.
One reason for the lowering cost of new constructions might be that builders are trying to create a wider range of price points. While there’s certainly a focus on building more luxury rental properties and high-end homes, we’re also seeing a shift in price points that appeal to all buyers today.
There are also a lot of advantages to a new construction like lowered energy costs, less risk of damage and repair, and more customization options. The verdict is that if you’ve been thinking about owning a new construction, now is the time to make a purchase.
Second-City Suburban Homes
In the past year, we’ve seen the rise of a new term in the real estate industry known as “second-cities.” These are smaller U.S. cities that have experienced booms in their downtown that attract young adults, especially Millennials. Millennial adults are building their own communities both in and around second-cities, and these are the perfect homes to buy right now.
More Americans are moving to suburban homes around these second-cities, and this population growth is fueling a growing housing market. Single-family homes in these newly popular cities are popping up everywhere, many of which are lower-cost DIY properties. If you’re up for the challenge, 2019 is the time to act.
As you can see, a lot is shifting in the housing market in 2019. Trends of the past are slowly fading away as a new generation of home buyers enters the market. Thankfully, housing prices aren’t expected to rise as quickly as they have been in the past, and this means more room for growth across the industry. Are you ready to buy a house?