What’s in store for the Greater Boston real estate market in 2019? Here’s my thoughts and market update:
Hi everybody. It’s Ruth. I want to give you a bit of an update and tell you what I see coming up in 2019 in the real estate market. It’s only January 2019 and we’re off already to a very, very strong start. Inventory coming on the market and traffic has picked up. Traffic meaning buyers are booking showings for listings. We are out and about as real estate agents looking at properties with buyers at whatever is on the market.
As predicted, the market was steady and did not stop throughout the holiday season. It’s been a really, really busy holiday season. What are we going to looking at going forward? It is a little bit hard to exactly predict at this point what the Fed is going to do and what the market is going to do as it’s been so volatile since roughly October but we are pretty sure about rising interest rates, rising mortgage rates, we’re going to see a little bit of that.
What does that mean? It means buyers – their ability, their affordability is lowered as the monthly payments go up for any property. I think price wise we’re going to see a pretty flat market. Not much going up and I don’t think much is going to down though either especially in the strongest markets in the United States.
There are some slithers of the market where we’re finding shortage of housing. Still we’re seeing it in urban areas, properties that are big enough for young families. Two, three bedroom condos in highly walkable areas, those are still highly desirable. Those are still in short supply and they may still be competed for during 2019 but not with the vigor of the past few years.
As for the mortgage market, I think that we’re going to find that mortgage companies are going to come out with some new products, new solutions, new ways for people to borrow money and get a little bit more creative as the refi business has really much died down and we’re not going to see much refis as this is a rising interest rate environment.
As for rising interest rates, what are we going to see? That’s a little bit hard to predict. I think most of the gains and most of the increase we’ve seen in the latter half of 2018 already, they will go up probably a little bit more. Certainly by mid 2019 we’re going to see I think another quarter of a point. I think that’s going to be it for a little bit. That’s my prediction. I’ll catch you in 2020 to see if that is correct.
If you have any questions about the market, if this is a good time to buy or sell property, give me a call and we can discuss whether or not this is something you should be considering doing right now. As usual I tell my clients that first we need to talk about your lifestyle needs and what it is you’re going to be doing that would require new housing and then we see how the financial piece of it works out. Lifestyle first, family first and I wish you all a happy, healthy, joyous 2019.