Housing Predictions for 2019
According to lending leader the following 5 Predications are indicated for 2019
- Home prices will increase, with only minor exceptions.
A housing shortage coupled with a strong job market should keep the current housing market slowdown from getting out of hand.
- Millennials drive the hottest markets.
The most rapid home price growth is expected to occur in the areas most desirable to Millennials. These include
neighborhoods in, or close to, downtowns and vibrant areas near universities.
- Credit risk will increase.
Lending guidelines may continue to gradually loosen (and yet still remain vastly better than during 2005–2008 thanks to the stricter regulations that were put in place after the housing market collapse).
- Housing affordability will continue to worsen.
Both interest rates and home prices are forecasted to increase, hurting affordability. With unemployment at peacetime historic lows and the tax cut adding an oddly timed and only temporary stimulus, the Federal Reserve needs to continue raising interest rates. For one thing, growth increased from 2 to 3 percent over the past year and makes up the majority of product costs). Even though higher interest rates reduce home sales, modest increases in mortgage rates are not as apocalyptic for housing as many believe. Rising rates historically only caused temporary, mild slowdowns in home sales, ranging between 5 to 10 percent.
- No bursting housing bubble.
Why? Because there is no widespread housing bubble. The typical warning signs – excessive debt levels, poor quality loans, exponentially increasing home prices, rising vacancy rates and a high number of internet searches on house flipping – are not present.
– This information has been provided by Richard Fuller from Cornerstone Home Lending, Inc.