After decades of involvement in financial planning and more than 10 years as a licensed real estate salesman in the state of New York, I think it&39;s worth looking more closely at the current trends and future possibilities (factors likely to have an impact), and how, with caution, be able to offer the best possible prospects, etc. Let&39;s start by clarifying, there is no crystal ball. real estate, and, in addition, any financial matter. At the same time, however, having a historical perspective, understanding how certain problems, etc., could affect the market, etc., are important and relevant issues. With this in mind, this article will attempt to briefly review, examine, review and discuss some of the factors that may affect the real estate market.
1. Factors Influencing Interest Rates: When interest rates rise, mortgage rates follow. The higher this rate, the more it costs, monthly, to own a home. Do not forget that the vast majority of homeowners enjoy a mortgage to buy their home. A slight increase may result in a monthly expense and, as a result, some people may not qualify for the loan, for this reason. In addition, many people consider their monthly budget and their personal comfort zone so that any significant increase can reduce the number of qualified potential buyers. The overall impact of this can be, transform a seller market, to a buyer or a neutral market. This often creates price adjustments and savvy consumers do what they can to keep themselves and prepare themselves. What will 2019 show in terms of interest rates? Nobody knows for sure, but the best guess would be a slight gradual increase, unless an important factor occurs.
2 Trust: When people have more confidence in the future, housing usually benefits. We often see it in stock market fluctuations, but this also happens in real estate. With a low employment rate, we have seen good markets in recent years, but how could this partial government shutdown take into account market potential and remain strong? We need to look closely at the possible factors involved, including: political uncertainty; dangers of the world; economic growth / slowdown, etc. Most of the factors seem to indicate both positive and negative factors, so proceed with wisdom.
3 Competition: Until the fourth quarter of 2018, the last two years had been marked by a sellers&39; market, in which many houses were selling quickly and at a price higher than the listing price. The fourth quarter showed a slight cooling and a little more normalcy. However, we also saw a slight increase in the number of listed homes and, as a result, a slight increase in inventories.
4 Price: Although uncertain, most factors point to more stable pricing, rather than the rapid rise we have seen in recent years. Most experts claim a slight increase from one year to the next, but beware, many factors can play.
5 Inflation: If we have a higher inflation rate, house prices will go up. Most only call for moderate inflation.
Do not ignore other factors, such as uncertain political issues, global crises, climate, etc., as they affect housing and the market. Beware, get ready and go on, eyes wide open.