#rosevillerealestate

[michaellerschmba]

What’s Ahead for Real Estate in 2019?

  As we begin another year, everyone wants to know: “Where is the housing market headed in 2019?”

 It’s not only buyers, sellers, and homeowners who are impacted. The real estate market plays an integral role in the overall U.S. economy.  Fortunately, key indicators point toward a stable housing market in 2019 with signs of modest growth. However, shifting conditions could impact you if you plan to buy, sell, or refinance this year.

  HOME VALUES WILL INCREASE

 The value of real estate will continue to rise. Freddie Mac predicts housing prices will increase by 4.3 percent in 2019.1  While the rapid price appreciation we witnessed earlier in the decade has slowed, the combination of a strong economy, low unemployment, and a lack of inventory in many market segments continues to push prices higher.

 "Ninety percent of markets are experiencing price gains while very few are experiencing consistent price declines," according to National Association of Realtors (NAR) Chief Economist Lawrence Yun.2

 Yun predicts that the national median existing-home price will increase to around $266,800 in 2019 and $274,000 in 2020. "Home price appreciation will slow down—the days of easy price gains are coming to an end—but prices will continue to rise."

 What does it mean for you? If you’re in the market to buy a home, act fast. Prices will continue to go up, so you’ll pay more the longer you wait. If you’re a current homeowner, real estate has proven once again to be a solid investment over the long term. In fact, the equity level of American homeowners reached an all-time high in 2018, topping $6 trillion.3

  SALES LEVELS WILL STABILIZE

 In 2018, we saw a decline in sales, primarily driven by rising mortgage rates and a lack of affordable inventory. However, Yun isn’t alarmed. "2017 was the best year for home sales in ten years, and 2018 is only down 1.5 percent year to date. Statistically, it is a mild twinge in the data and a very mild adjustment compared to the long-term growth we've been experiencing over the past few years."2

  Yun and other economists expect home sales to remain relatively flat over the next couple of years. Freddie Mac forecasts homes sales will increase 1 percent to 6.08 million in 2019 and 2 percent to 6.20 million in 2020.1

 “The medium and long-term prospects for housing are good because demographics are going to continue to support demand,” explains Tendayi Kapfidze, chief economist for LendingTree. “With a slower price appreciation, incomes have an opportunity to catch up. With slower sales, inventory has an opportunity to normalize. A slowdown in 2019 creates a healthier housing market going forward.”4

 What does it mean for you? If you’ve been scared off by reports of a market slowdown, it’s important to keep things in perspective. A cooldown can prevent a hot market from becoming overheated. A gradual and sustainable pace of growth is preferable for long-term economic stability.

  MORTGAGE RATES WILL RISE

 The Mortgage Bankers Association predicts the Federal Reserve will raise interest rates three times this year, resulting in a rise in mortgage rates.5 While no one can predict future mortgage rates with certainty, Realtor.com Chief Economist Danielle Hale estimates that the rate for a 30-year mortgage will reach 5.5 percent by the end of 2019, up from around 4.62 percent at the end of 2018.6

 While mortgage rates above 5 percent may seem high to today’s buyers, it’s not out of line with historical standards. According to Hale, “The average mortgage rate in the 1990s was 8.1 percent, and rates didn’t fall below 5 percent until 2009. So for buyers who can make the math work, buying a home is likely still an investment worth making.”7

 What does it mean for you? If you’re in the market to buy a house or refinance an existing mortgage, you may want to act quickly before mortgage rates rise. To qualify for the lowest rate available, take steps to improve your credit score, pay down existing debt, and save up for a larger down payment.

  AFFORDABILITY ISSUES WILL PERSIST

 Although the desire to own a home remains strong, the combination of higher home prices and rising mortgage rates will make it increasingly difficult for many first-time buyers to afford one.

   “Buyers who are able to stay in the market will find less competition as more buyers are priced out but feel an increased sense of urgency to close before it gets even more expensive,” according to Hale. “Although the number of homes for sale is increasing, which is an improvement for buyers, the majority of new inventory is focused in the mid-to-higher-end price tier, not entry-level.”6

 What does it mean for you? Unfortunately, market factors make it difficult for many first-time buyers to afford a home. However, as move-up buyers take advantage of new high-end inventory, we could see an increase in starter homes hitting the market.

  MILLENNIALS WILL MAKE UP LARGEST SEGMENT OF BUYERS

 “The housing market in 2019 will be characterized by continued rising mortgage rates and surging millennial demand,” according to Odeta Kushi, senior economist for First American. "Rising rates, by making housing less affordable, will likely deter certain potential homebuyers from the market. On the other hand, the largest cohort of millennials will be turning 29 next year, entering peak household formation and home-buying age, and contributing to the increase in first-time buyer demand.”4

 Danielle Hale, chief economist for Realtor.com, predicts the trend will continue. “Millennials are also likely to make up the largest share of home buyers for the next decade as their housing needs adjust over time.”6

 What does it mean for you? If you’re in the market for a starter home, prepare to compete for the best listings. And if you plan to sell a home in 2019, be sure to work with an agent who knows how to reach millennial buyers by utilizing the latest online marketing techniques.

  WE’RE HERE TO GUIDE YOU

 While national real estate numbers and predictions can provide a “big picture” outlook for the year, real estate is local. And as local market experts, we can guide you through the ins and outs of our market and the local issues that are likely to drive home values in your particular neighborhood.

 If you’re considering buying or selling a home in 2019, contact us now to schedule a free consultation. We’ll work with you to develop an action plan to meet your real estate goals this year.

   START PREPARING TODAY

 If you plan to BUY this year:

    Get pre-approved for a mortgage. If you plan to finance part of your home purchase, getting       pre-approved for a mortgage will give you a jump-start on the paperwork       and provide an advantage over other buyers in a competitive market. The       added bonus: you will find out how much you can afford to borrow and       budget accordingly.

  Create your wish list. How       many bedrooms and bathrooms do you need? How far are you willing to       commute to work? What’s most important to you in a home? We can set up a       customized search that meets your criteria to help you find the perfect       home for you.

  Come to our office. The       buying process can be tricky. We’d love to guide you through it. We can       help you find a home that fits your needs and budget, all at no cost to       you. Give us a call to schedule an appointment today!

  If  you plan to SELL this year:

    Call us for a FREE Comparative Market Analysis. A CMA not only gives you the current market value of your home,       it will also show how your home compares to others in the area. This       will help us determine which repairs and upgrades may be required to get       top dollar for your property, and it will help us price your home       correctly once you’re ready to list.

  Prep your home for the market. Most buyers want a home they can move into right away, without       having to make extensive repairs and upgrades. We can help you determine       which ones are worth the time and expense to deliver maximum results.

  Start decluttering. Help       your buyers see themselves in your home by packing up personal items and       things you don’t use regularly and storing them in an attic or storage       locker. This will make your home appear larger, make it easier to stage       ... and get you one step closer to moving when the time comes!

    Call (916) 660-3002

mikelersch@hotmail.com

Sources:

1.     Freddie Mac Economic & Housing Research Forecast – http://www.freddiemac.com/research/pdf/201811-Forecast-04.pdf

2.     National Association of Realtors 2019 Forecast –   https://www.nar.realtor/newsroom/2019-forecast-existing-home-sales-to-stabilize-and-price-growth-to-continue

3.     Bankrate 2018 Year in Review – https://www.bankrate.com/mortgages/year-in-review-for-housing-market/’

4.     Forbes 2019 Real Estate Forecast – https://www.forbes.com/sites/alyyale/2018/12/06/2019-real-estate-forecast-what-home-buyers-sellers-and-investors-can-expect/#a98b80a70d9a

5.     Mortgage Bankers Association Forecast – https://www.mba.org/2018-press-releases/october/mba-forecast-purchase-originations-to-increase-to-12-trillion-in-2019

6.     Realtors.com 2019 National Housing Forecast – https://www.realtor.com/research/2019-national-housing-forecast/

7.  ��  FOX Business – https://www.foxbusiness.com/personal-finance/where-mortgage-rates-are-headed-in-2019

[homesbyheath]

Well you have to hang it somewhere so why not? #lockboxfail #realestate #realtor #realtorlife #rosevillerealestate #roseville (at Roseville, California)

[kayeswain]

Had such a delightful time in just the perfect temperature - walking and talking on phone with sweet grandkids while playing hangman with one including the word camellias 😀 A fun and healthy break between real estate projects - even got to the 5 mile mark today! 😀 #rosevilleweather #RosevilleCalifornia #RosevilleCA #Roseville #rosevillejoys #rosevillecaliforniajoys #RosevilleRealestate #RosevilleRealtor #RosevilleRealEstateAgent #RosevilleCAREALTOR #WestRoseville #RosevilleBlogger #RosevilleCABlogger #RosevilleGrandparents #RosevilleGrandparent #RosevilleGrandkids #Rosevillewalkingtrails #Rosevillehealthyliving #RosevilleGrandchildren (at Roseville, California)

[matthew1stewart]

THE BUYERS ADVANTAGE - WORKING WITH A CERTIFIED HOME BUYING ADVISOR Matthew Stewart Real Estate Team

DON'T BUY ANYTHING....until you've watched this short informative video!

[lexijeanphoto-blog]

Yesterday we had 2 shoots one in #rocklinrealestate and in #ranchocordovarealestate . Today we're doing an Emergency job in #rosevillerealestate I am now offering Motion Picture Video Tours that include Highest Quality DSLR MLS Photos , Drone Photos for 325.00 first time customers! Motion Picture Video Tour can be substituted for Matterport Virtual Tour . LexiJeanPhoto.Com. CALL NOW !(916) 860-9216 #realestatephotography #realestate #roninm #ronin #videohometour #virtualtour #realestatevirtualtour #videotours #realestatewalkthrough #realestatewalk #realestate #realestatephotography (at Roseville, California)

[michaellerschmba]

Me waiting for someone to walk in my #openhouse 🏡 #rosevillerealestate #rocklinrealestate #roseville #rocklin #homebuyers #homesellers #mba (at Roseville, California) https://www.instagram.com/p/B0J2PPUpC8D/?igshid=ioaahz42ocsv

[michaellerschmba]

Pretty Houses 🏘 This makes real estate fun 🤩 start at $786k 📲 dramatic architecture and the pools, holy 🐄! #realtor #realestate #luxury #luxurylifestyle #bayarea #bayarealife #sanjosecalifornia #danville #danvilleca #danvillecarealestate #rocklinrealestate #rosevillerealestate #rocklinca #rocklin #dreampool #dreamkitchen #stair https://www.instagram.com/p/BuKSs0pHJRt/?utm_source=ig_tumblr_share&igshid=1ektts56sdnlu

[michaellerschmba]

TOP 8 🎨🏡Home Design and Remodeling Trends for 2019🏡🎨

[michaellerschmba]

🏡Open House 🏡 Sat 11-3, Sun 1-4 1311 Trevor Way Roseville 95678 📲my app:www.app.realtyonegroup.com/onemichaellersch #rosevillerealestate #roseville #rosevilleca #rosevillemoms #realtor . . . #walnut #localbuisness #woodmizer #salvaged #wood #walnutwood #hollow #hollowlog #woodworkersofinstagram #woodworking #sheridan #sacramento #woodworker #marysville #lincoln #roseville #woodworkingcommunity #royalballet #rocklin #balletbeautifulgirls #yubacity #balletclub #loveofballet #balletlove #ballet_a #dancersworld #ballerinaproject #balletworld #ballett #balletlife (at Roseville, California) https://www.instagram.com/p/BudCvXansuK/?utm_source=ig_tumblr_share&igshid=1oy6x5aotdg90

[michaellerschmba]

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#realestate #sale #dream #life #australia #terrigal #modern #beautiful #lifestyle #inspiration #milliondollarlisting #perfect #happy #luxurious #building #awesome #inspiring #instadaily #bestoftheday #contractors #contruction #laboroflove #veteran #veterans #pugetsound #washington #boyswithtoys #builders #labor #rocklinca

[kayeswain]

Roseville Sacramento 916 area code friends - don’t forget to start dialing 1-916 before local numbers - for phone calls and for texting 😃👍 #Rosevillerealestate #RosevilleRealtor #Rosevillerealestateagent #RosevilleCAlifornia #rosevillecarealtor #RosevilleCA #SacramentoCA #SacramentoCalifornia #LincolnCA #RocklinCA #GraniteBayCA #AntelopeCA #CitrusHeights #CarmichaelCA #FairOaksCA #OrangevaleCA #ElvertaCA #RioLindaCA #FolsomCA (at Roseville, California)

[kayeswain]

Had a lovely afternoon yesterday sharing neighborhood newsletters, answering a couple real estate questions and snapping pix of these lovely flowers 😃👍 #rosevillerealestateagent #RosevilleRealEstate #WoodcreekOaks #WestRoseville (at Roseville, California)

[kayeswain]

So rare and yet so vital for those who need it - a roll-in shower in a house for sale that I visited for a real estate client today! Awesome! #rosevilleca #rosevillerealestate #rosevillerealtor #disabilityaccess (at Roseville, California)

[kayeswain]

Wow! Talk about a doubly true description! I just got back from delivering neighborhood newsletters and it is HOT! And it was fun delivering them in the street where my newest listing sold FAST! (ONE day! GREAT price! This is one HOT real estate market in Roseville! And one HOT house - lovely and in a great neighborhood. Great news for the seller and the new owner! 😀 PS thinking of selling? I'd love to help you! Check out my site KayeSwain.com or give me a buzz - 916-768-0127 😀👍 #rosevillerealestate (at Woodcreek Oaks, Roseville)

[lexijeanphoto-blog]

Yesterday we had 2 shoots one in #rocklinrealestate and in #ranchocordovarealestate . Today we're doing an Emergency job in #rosevillerealestate I am now offering Motion Picture Video Tours that include Highest Quality DSLR MLS Photos , Drone Photos for 325.00 first time customers! Motion Picture Video Tour can be substituted for Matterport Virtual Tour . LexiJeanPhoto.Com. CALL NOW !(916) 860-9216 #realestatephotography #realestate #roninm #ronin #videohometour #virtualtour #realestatevirtualtour #videotours #realestatewalkthrough #realestatewalk #realestate #realestatephotography (at Roseville, California)