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Home Buying Trends for the 1st Quarter of 2019

January 18, 2019
Home Buying Trends

2018 was a year with plenty of highs and lows for the housing market. The beginning of the year was marked by high home prices and historically low mortgage rates. It definitely was a market that favored sellers. However, the end of the year showed signs that it was shifting with home price growth slowing and interest rates on the rise.

The question for 2019 is will the shift to a buyer's market continue? While the larger picture seems to indicate that the answer is yes, markets with tight inventory may still favor the seller despite the following factors.

Mortgage Rates Are Still Rising

While mortgage rates are still on the rise, the reality is that they are still lower than what interest rates were throughout most of the recession and below average for the strong economic growth that is currently being experienced.

Still, the rates will continue to rise, and it looks as if the fixed rate is going to continue in an upward trend.

Rising Rates Won't Slow Home Sales

Despite these rising rates, many home buyers will continue to purchase, including millennials. There are a large number of millennials who will be entering the peak time for home buying. It is going to contribute to an increase in first-time home buyer demand.

Homebuyers may also be more open to consider a fixer-upper home to allow them to enter the market at an affordable price point.

Inventory Will Increase

One of the biggest complaints over the last few years has been the lack of inventory, especially for first-time home buyers. While that supply crunch is likely to ease during 2019, it depends on your price point. The biggest increase in housing inventory is expected to be concentrated in the mid- and high-end portions of the housing market.

In Staten Island, home pricing is starting to reflect the buyer's market, as inventory increases. It appears the increasing interest rates may have played a factor.

Housing Options Are More Varied

If you are a first-time home buyer, it is important to keep an open mind. 2019 appears to be the year of shifting the definition of a home. The volume of manufactured homes is increasing, and the costs associated with alternatives can make them appealing in terms of your budget.

Plus, people are expanding their options in terms of townhomes or other attached homes versus a standalone single-family home.

This year appears to be a strong year for the housing market, despite home prices slowing in growth and the rising interest rates. For first time home buyers in Staten Island, the housing market is still vibrant. If you are looking for a new home in 2019 in Staten Island, contact us today!

Wonica Realtors & Appraisers are Staten Island's #1 independent full-service real estate firm, serving the needs of the community for over 30 years. Whether you're buying, selling, renting or relocating, our staff of highly trained professionals will provide quality realty services with personal attention to your individual real estate needs.

North Shore: 415 Manor Rd. S.I., N.Y. 10314, tel: 718.442.2880 fax: 718.442.1073
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