The most reputable companies and independent experts in the field of residential real estate gave their forecasts regarding the cost of American homes/apartments in 2019 and the prospects for their purchase.
The main news was the final exit of the real estate market from the crisis of 2007/2008. As specialists predicted, it took exactly 10 years for the cost of houses to stabilize and start to grow very slowly, but still. The housing bubble is similar to what happened to the Florida market, it will surely burst again, but this will not happen until 2040-2050.
When buying a home in 2019, the last thing you have to think about is how much it will cost in the future. Focus on the fact that you need a home for life. You should not consider living space as an investment.
Many experts believe that the tax reform, which provides for deductions concerning mortgage interest (mortgage interest deduction) and property tax (property tax deductions) will make the real estate market more stable, but also more boring.
In other words, the cost of houses during 2019 will fluctuate slightly, and remain at about the same level. No surprises and shocks will happen.
Also, experts note that next year it will be impossible to give an objective answer to the question about the benefits of buying or renting real estate. Each of these types of accommodation has its pros and cons. If tenants win something by choosing to buy a house/ apartment, then not even thousands, but hundreds of dollars a year.
As for new housing, in 2019 construction companies are going to build significantly more skyscrapers with apartments and create new communities with private houses than in any previous year, starting in 2008. Therefore, experts advise the most cautious potential buyers to carefully study the market for the availability of profitable pre-construction proposals (a person makes the first installment 24 – 60 months before putting housing into operation). In this regard, the most profitable segment is called the north-west of the country, namely: the states of Washington (especially Seattle and its suburbs, where real estate prices rose by 12.7% last year), Oregon, Montana and Idaho.
It is also important to note that after the devastating fires, floods and hurricanes in 2017, foreign companies are revising the prices of real estate insurance in more than 30 states of the country. Therefore, if you are thinking of buying a property, you will first learn how much you have to pay for insurance annually and what kind of natural or man-made disasters it covers.
The mortgage interest rate for 2019 ranges from 4.0% to 4.5%. The expected threefold increase rate may provoke small jumps in the real estate market; however, the average annual figures will remain almost the same as in 2017.
Experts emphasize that in recent years, the interest rate on mortgages increasingly depends on the credit rating of the buyer. Therefore, it is sometimes better to postpone the purchase of a house if the credit score is below the ideal (750 – 850 points). So you can save a few tens of thousands of dollars on a 30-year mortgage.
Another trend in 2019 is the sharply increasing number of mortgage banking for buying houses without a down payment.
Today, a person with stable work and reliable credit history can enter his/her own home for $ 0 deposit. Of course, it will be much more difficult to pay a 30-year mortgage, but the fact that it is possible to buy real estate without a down payment testifies to the stability of the market and the confidence of banking structures.
Finally, it should be said that practically none of the specialists in the real estate market urges Americans to sell or buy houses/apartments. All parties must act on the principle of “seven times measure and one cut” in order to get the maximum benefit from any concluded deal.