Mouprise.com

US Real Estate Predictions for 2019

Similar to how political pundits claim this election cycle will be the biggest in a generation, this year could be the biggest year in recent memory in terms of home loans and the residential real estate industry as a whole. (And if you think I have exchange land in Florida, I’d like to sell it to you.) For a variety of reasons, I have unilaterally decided to keep it short and sweet this year. So, here are the three perennial predictions for 2019.

1. Concert work.
At first glance, the phrase “Gig Work” seems antithetical to mortgage underwriting standards, but it’s actually quite refreshing. And that means that as the aftermath of the 2008 crash couldn’t be further from the subconscious, there may be a subprime “drag” on current underwriting standards. But these aren’t your dad’s Oldsmobile subscription standards. Which means today’s lenders are more than willing to count intermittent and part-time work as bona fide income, even though it was disparaged after 2008.
According to Saideh Brown, President Emeritus of the United Nations National Council of Women, “Mortgage lenders are starting to look at gig work for mortgage approval. This will only become more prevalent with today’s job market. Banks are looking at all sources of income and gig work is quickly becoming a major source of income for millennials and should be taken into account in gaining an emotional buy-in to homeownership from this generational block.”

Therefore, the bottom line for 2019 in Prediction 1 is to expect creative, but reasonable underwriting standards to become part of normal mortgage underwriting procedures.

2. Saved by Millennials (again). What?
At second glance, who isn’t bored by self-absorbed Millennials. Me, for one, but despite that denigrating tongue-and-cheek response to the flavor-of-the-month generation, who will no doubt be replaced by the next offspring of the eternal hopeless, they at least make a good impression. And here is the angle; While many are concerned whether real estate is a safe bet today, historically speaking it is, and therefore one’s outlook must be long-term, despite the naysayers of non-real estate appreciation for 2019.

According to Dan Green, CEO of real estate site Growella, “Rising mortgage rates aren’t slowing down Millennial Generation homeownership desire. The pent-up demand will continue to build throughout 2019, driving up home values ​​across the board.” price points. Like In all markets, housing is defined by supply and demand. And as long as supply and demand stay within tolerable ranges, housing will continue to be a good investment.”

So the bottom line for 2019 in Prediction 2, buy now and shut up forever as interest rates remain good.

3. Decrease in the price of housing.
Real estate has always been local. Hence the adage “Location, location, location.” With that in mind, there is nothing to catastrophically worry about in terms of buying a home as your primary residence. If you are an investor, choose your fights carefully, as not all markets will perform as expected, no matter how smart you may think you are! With that in mind (again), there will be a slight degree of variability, as it appears to be, since you’d be crazy not to expect some degree of variability. Even in Eve’s Garden, the market value probably dropped after Adam bit into the apple.
According to Ruben Gonzales, chief economist at Keller Williams, “Looking ahead to 2019, we anticipate home sales to decline about 2%. We expect it to be another slightly slower year as buyers continue to grapple with higher mortgage rates after dealing with several years of rapid price growth.

So the bottom line for 2019 in Prediction 3 is to proceed with caution as an investor, but as a primary homebuyer, nothing should reasonably warn you of a buying decision, as home appreciation should be an afterthought, and especially depending on your waiting period.