Although there were some significant changes, 2018 remained an active real estate market. As the year comes to a close, the big question on everyone’s mind is, what will the market look like in 2019. No one can tell the future, but we do have some 2019 real estate market predictions to share.

Interest Rates Will Continue to Rise 

The Fed has made it perfectly clear that they intend to increase rates during the next year, so this prediction is basically a given. Rates already rose a bit in 2018, but that didn’t seem to deter buyers. Our guess it, slight increases in 2019 won’t impact buyers much either. Although refinancing may be less frequent, rates are still historically fairly low from a buying perspective.

Price Increases Will Slow Down

Interest rate increases eventually cause a plateau in home prices, but this takes years. For now, what we may see is a slow down of price increases compared to the previous few years. Most experts believe the market will still improve, just not so drastically. Sellers will still benefit from strong home prices while buyers will benefit from the pace slowing down enough for them to keep up with.

Buyers Will Be More Price Conscious 

As interest rates rise, buyers will have less purchase power. What we’ll start to see, as a result, are more price conscious buyers. Sellers have been spoiled lately with dramatic bidding wars and significant offers above asking price. The bidding process may be less aggressive in 2019, especially in higher price ranges.

Final Words on 2019 Real Estate Market Predictions 

With so much pent up demand and low inventory across the country, it’s unlikely that we’ll see dramatic changes in the real estate market. It’s also important to mention that individual markets don’t necessarily follow national trends. It’s always important to work with local professionals to understand your local market. This can help you make smarter investment decisions. Please keep in mind that these 2019 market predictions are truly best guesses. With an ever changing market, rely on your real estate and mortgage professionals to provide current information and advice throughout the year.