Home Ownership Trends For Boston 2019
If your plans for 2019 are to buy a home in Boston, then the time has arrived. Keeping an eye on the changing tides of the housing market can help to choose the best time to enter the market.
No one can fully predict the housing trends, however, one could get a sense of the forces that will push thing a certain direction.
More Homes For Sale
In particular, there will be more houses for sale in South Boston in 2019. The homes hitting the market are not enough to keep up with the demand of those wanting home ownership and wanting to buy real estate.
This year the inventory of available homes will rise and recover. The growth will continue, but it will not be blockbuster sales. Buyers love this news, whereas sellers come to a different type of reality. If you try to sell a home, then there will be more competition. Adjusting expectations in the selling market will be a requirement.
Luxury homes usually have a stronger economy, with higher paying jobs. Luxury home growth will be modest. An increase in high-end inventory is expected in Seattle, Boston, Savannah GA, and New Orleans. This may include neighboring towns. These areas could see themselves in the double-digit gains in inventory.
Affording A Home May Still Be A Challenge
The tides may be changing and in favor of the buyer. Home buyers will find it to be easier with more options. At the same time, it will also be a challenge because of the increase in mortgage rates. Mortgage rates could go up to 5.5%, which means a monthly mortgage payment could rise to about 8% higher next year.
Meanwhile, personal incomes are not growing at such a rate. Homeowners will feel the pinch. This realization is tougher on first time home buyers. First time home buyers tend to borrow the most and are starting out with no equity to draw from.
When Will The Housing Market Slow Down?
Millennials Continue To Dominate
Millennials used to be the new kids in buying homes. Now their numbers have grown and they are a big group of home buyers. Millennials account for 45% of mortgages today. With 17% belonging to baby boomers and 37% to Generation X’ers.
Still, the first time home buyer will find it a challenge to jump into the game of buying a home. Those who have home equity will gain more benefits.
boston real estate market 2019
Millennials will also carry with them the debt of student loans and typically want to spend money on travel and experiences. Those experiences take away from their down payment which could aid in a lower mortgage payment. Millennials may compromise instead and buy less space, but still own a home, for example.
Tax Law Questionable
The proposed revision of the tax code was battling its way through Congress. Now, we still don’t know, and won’t know until April 2019 when taxpayers file taxes under the new law.
Renters will certainly have a lower tax bill, but still, affordability is a factor for them.
Sellers for higher-end luxury homes may take a financial hit with regard to a bigger tax bill.
The housing market continues to fluctuate and change, but there are clues as to where you can jump in and take advantage. The clues may even tell you when to sit and hold until the time passes on to friendlier housing times. For more information about your local real estate market, or to inquire about buying or selling a home, contact your local trusted real estate agent.