2019 Will Look Similar to 2018 Say Experts
The real estate market offered few surprises in 2018. Inventory remained limited, home prices generally rose, and a single-family home or condominium in Northern California stayed on the market for fewer average days than in the prior year. Most market pundits predict 2019 will bring more of the same.
This sentiment was echoed by Lawrence Yun, chief economist of the National Association of Realtors. Yun said 90% of U.S. real estate markets saw a rise in home prices. With sound economic fundamentals that include low unemployment, record job openings, low unemployment claims, and an uptick in wages, Yun predicted 2019 will be more of the same with sales expected to rise to approximately 5.4 million nationwide.
Sara Sutachan, vice president of the California Association of Realtors (CAR), mirrored much of Yun’s thoughts in a fourth-quarter presentation on the 2019 market she gave to CAR members.
Where Sutachan differed from Yun was on the growth of sales in 2019. She pointed to the widening gap of available housing and a 2018 Housing Market Survey by CAR that found sellers are not moving as often as in years past.
She predicted a slower pace in price growth – though prices will continue to rise based on demand – and a less competitive real estate market overall. That said, she noted the continued growth of the economy, a strong job market, and an expectation over the short run of increased listings would continue to help drive growth in California’s real estate market.
In short, there will still be opportunities for buyers and sellers in 2019. Let me know if you want to talk about this changing market in more detail. I love talking about real estate and am here to help.
If you know of anyone looking to make a change, please don’t hesitate to reach out. I would be happy to provide them with excellent service.