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6 Real Estate Trends to Watch in 2019

Written by Posted On Monday, 14 January 2019 18:25
Real Estate Trends for 2019 Real Estate Trends for 2019 One Click SEO

Real Estate Trends to Watch for 2019

6 Real Estate Trends to Watch in 2019

Buyers and sellers of real estate may have some challenges in 2019. Both will continue to compete in this market as fewer homes go on sale. Home prices and mortgage rates are also expected to rise, affecting buyer confidence. Home builders will construct smaller homes while tiny homes seem to have some traction with some people - I don't understand why... but they do. The 2019 real estate market pay prove to separate the players from the pretenders.

Here are some of the real estate trends to look out for in 2019

Fewer Homes will be for Sale

Expect fewer homes to hit the market in 2019. For the last six years, the real estate market has been good to both buyers and sellers. Home buyers quickly saw their value increase where sellers were pushing the envelope further every month. The market could absorb a glutton of homes hitting the market and still see gains. In 2019, we may see real estate agents and marketers having to be a litle more creative to get a home sold for top dollar.

Supply vs Demand

This demand is expected to continue to meet the supply. This will lead to more homes continuing to make it to an Act of Sale. Although we may see the real estate market slow down a little in 2019, the demand for homes is still strong. We did see a decrease in new construction for the 4th quarter of 2018 and a smaller number of new construction permits being acquired vs the same time last year. This shortage is getting worse for buyers of brand new homes and will not improve in any of the markets. Only 370,000 homes were built in 2018 to satisfy the demand.

Home Prices Will Go Up

Home prices are expected to rise in 2019. However, the prices won't rise as much as they did in 2018. While home appreciation is on the decline, prices will continue to climb. Home prices are expected to rise around 2.5% in 2019, which is less than the 4.7% in 2018.

The increase in prices will result in a slowdown of home sales. Since home appreciation halted in 2018, the rising interest rates and prices will further slow down the market. Some experts don't believe that the driving home prices will slow down the housing market. Since the housing market is so vast, not all markets experience the same estimates.

Mortgage Rates on the Rise

Mortgage rates will continue to rise as well. Analysts predict that mortgage rates will climb at a slower pace than they did in 2018. According to Freddie Mac, the mortgage rate will climb to a half a percentage rate in 2019. Fannie Mac, on the other hand, anticipates a rise of 0.1 percentage point.

Mortgage rates can fluctuate based on the economy, what the Fed does. The 30-year fixed-rate mortgage started out at 4.09% then hit 5.09% in November. It then fell to a quarter of a percentage point a month later.

Real Estate Marketing is Shifting

We are seeing a turn in real estate digital marketing.  From 2015 through 2018 we have seen Realtors and smart real estate brokers jump into larger websites to get a piece of the huge online real estate pie.  For 2019, that pie is being sliced up into another piece that many Realtors are not aware of.  Local SEO for real estate - showing up in the Map Search or the Map Pack for search terms such as "realtor around me" or "best realtor in my city" have shown to be chipping away at the traditional search engine optimization and Google pay per click dominance of yesteryear. 

With the explosion of the smartphone coupled with Google taking up page one screen space of the results with rich snippets and knowledge graphs - the results of organic search engine results have been pushed down.  That means if you don't rank #1 or #2, you are better off getting leads from your Google My Business account.  To do that, you must optimize your GMB account for real estate

 Trending Paint Colors For 2019

Tiny Homes are Still Popular

The tiny home trend will continue to grow strong in 2019. Home builders are noticing the popularity and are now building smaller and affordable homes. The size of the average home fell the last three years due to the entry-level home construction trend. The average size of single-family homes went from 2,400 square feet in 2015 to 2,320 square feet in 2018.

Families are looking to buy homes that cost less than $200,000. They don't mind moving into a new home with less space. This trend has encouraged home builders to focus on developing smaller homes for these buyers. They've been seeing the value of the lower-end-priced market that they've been building communities in these areas. I think this is a pretty silly trend and the people that invest in "tiny homes" will find themselves upside down in a home that will hold little long term value. The mobile home of the new millennium.

 

Affordability a Concern for Homeowners

Since home prices are on the rise, home buyers are afraid that they won't be able to afford a new home. This is a great concern for buyers who live in areas with a lower inventory. These areas tend to be places where home prices increase the fastest since the demand exceeds the supply for homes.

Rising mortgage rates won't make buyers want to sell a home. Their monthly payment will only rise between $75 and $100 a month. Most of the home prices are up against these affordability concerns. Home prices will slowly fall later this year to adjust to incomes.

Overconfident Sellers Will Struggle

As mentioned in the beginning, 2019 will continue to be a seller's market. There will be more buyers than homes in the market. But, that doesn't necessarily mean that buyers will be fighting over these homes.

That's true for people who are selling homes that are priced above the average in their local market. First-time buyers typically take over this market and shop for homes priced below the average. If you're pricing your home above the average price, you're going to have trouble with getting offers and competitions from buyers.

It turns out that it's going to be a difficult market for both buyers and sellers in 2019. This is especially the case for buyers who want to purchase an affordable home and sellers who are selling theirs above the average.

 

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Dean Cacioppo

Dean Cacioppo Credentials

Dean has worked as a real estate agent, real estate instructor and has years of experience working on the technology side for major Real Estate Brokers, Agents and MLS’s.  Dean has sat on the Board of Directors for multiple MLS’s including being elected to President.  Years of serving on a number of MLS Committees for multiple boards, served on the Strategic Planning Committee for Louisiana REALTORS and participated in many task forces and committees for the benefit of all Real Estate Agents in Louisiana.

Work in Real Estate Technology

Dean has provided live training on technology, direct IT and Technological Support to thousands of Real Estate Agents for over 16 years.  With years of being the go-to guy on technology strategy, training and support for Brokers and MLS’s across the country, you can now have direct access to Dean for your personal technology needs. 

Real Estate is extremely competitive on the web and we specialize in Real Estate Websites and Digitial Marketing for Realtors, Search Engine Optimization for Real Estate and Social Media Marketing for Real Estate.  Please don’t be confused, we are happy to work in all business verticals and have quite a bit of experience in a variety of markets.

For 2019, we have seen an expoetional increase in the ability to generate leads from local SEO for the real estate industry.  This has Google My Business taking a larger share of buyers and sellers looking for real estate online.  We understand that there is a real estate sales cycle that determines how "ready to act" the lead is.  Leads that are aquired for search phrases such as "Realtor around me" or "top realtor in my city" have a much better chance of converting than the indevidual searching for a generic real estate term.  

 

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