US housing market in 2019: Trends and predictions

2019 is fast becoming an interesting year for the United States housing market, where the words “slow” and “steady” are predicted to best characterize it this year. This follows a 2018 that began with fast rising demand that slowed down later in the year due to factors like high prices and fewer choices. Here’s a closer look at what to expect in this real estate segment this year, according to industry veteran Ron Cadman.

Image source: Pixabay.com


Realtor.com has the numbers, foremost of which is forecasting home prices to rise by 2.2 percent nationally. There are a couple of exceptions, though, such as the largest predicted price increases in areas from the 50 biggest markets, such as Grand Rapids, Michigan, at 8.2 percent and Boise City, Idaho, at 6.9 percent. It also anticipates that mortgage rates will reach 5.5 percent by the end of 2019, meaning the average home will cost 8 percent higher per month than it did in 2018.


According to a Reuters poll of property experts, however, there will be major peaks in turnover in the housing market. Covering 35 property market analysts back in November last year, the poll showed that while growth in house prices is still anticipated to outpace inflation and pay increase over the next two years, it will do so at a sharply lower rate than found in a previous survey.

Image source: Pixabay.com
It cited the S&P/Case Shiller composite index of home prices in the country’s 20 metropolitan areas, which was forecast to climb 3.7 percent in 2019, versus the 4.7 percent just August last year. Price gains are thought to decelerate in the face of previously reaching the peak in price increases, rates further rising, and the economy’s slowing movement.


While home buyers aren’t facing a rosy immediate future, they can still think things through in order to adapt to higher rates and prices. Around April, adds Ron Cadman, the housing market will also see how the revamped tax plan will affect homeowners and renters.


Ron Cadman is one of the directors of Investar USA. For over 30 years, he has worked on multifamily construction, apartment acquisitions, commercial property development and operations, as well as land banking and development. Learn more about real estate on this page.

Comments

Post a Comment

Popular posts from this blog

Ron Cadman: Should You Invest in an Apartment or a Single-Family Home?

With the spring season in full swing, you may be gearing up to embark on some real estate investing. The question is, should you invest in a single-family home or an apartment building? Many investors become intimidated by apartment buildings that feature more than five units. However, large apartment units carry great promise for investors when compared with single-family residences, according to Ron Cadman, a co-director of Investar USA development firm. Here is a rundown on why you should invest in an apartment building this spring. The biggest reason to invest in an apartment building is that valuations are handled differently between an apartment complex and a single-family home. With the latter, your property value will end up fluctuating when you compare your home with your neighbor’s. However, a larger apartment complex is valued based on the income approach. With this approach, the value of your property will depend on your building’s net operating income, not on neighboring
Read more

This is not a typical recession says Ron Cadman of Investar USA.

  This is not a typical recession says Ron Cadman of Investar USA. This is not a typical recession says Ron Cadman of Investar USA. People have lost jobs due to a government induced recession and Congress decided to break until September with no regard for the mess they created. Politics is taking priority over collaboration and addressing the real issues impacting America’s working class resulting from Covid-19. Those of us with hard assets are fine and are seeing asset values rise while the working class have lost jobs and are sliding deeper into debt. According to a recent analysis by John Friedman, an economics professor at Brown University, U.S. stocks are hovering near a record high, a stunning comeback since March that underscores the new phase the economy has entered: The wealthy have begun to recover. The bottom half remain far from it. This dichotomy is evident in many facets of the economy, especially in employment. Jobs have returned for the highest wage earners,
Read more

What’s in store for the housing market in 2020?

2020 is fast turning out to be an up-and-up year for the housing sector, driven by increased job markets and low mortgage rates. However, those in the market for a new home this year may have problems looking for one, according to Ron Cadman of residential and commercial property developer Investar USA. Real estate professionals say that generally speaking, the growth of the housing industry this year will be solid but modest and will carry over to 2021. This is driven by expert anticipation that the sector will finally have a real effect on GDP growth. And because of the mixture of more people getting employed and interest rates plummeting, consumer spending will increase, and more people will be shopping for new residential properties. The positive developments are bolstered by the recent signing of the Phase One deal in the ongoing U.S.-China Phase trade talks. And, though much has yet to be done to improve foreign relations with the Asian nation ultimately, players in the r
Read more