With expected inventory gains, the mortgage rates are expected to hit 5.5 percent by the end of 2019 while monthly mortgage payments will rise 8 percent. Though this may place Gen-Z and Millennials out of reach in home ownership, buyers in upscale neighborhoods will see growth and more opportunities to buy.
Although housing inventory hit the lowest recorded in history last year, it reached a positive level this October. Though this may appear to be a slow demand in the market, sellers who are able to price competitively can still earn high profits from the sale of their home.
Growth in High End Homes
While national home inventory is to remain low in 2019, high priced markets will continue to see growth. In fact, upscale home prices have shown to incentivized buyers to place an offer.
Millennials Continue to Buy Homes
Millennials will account for 45 percent of mortgages in 2019. Older millennials are expected to make up most of closing sales and are expected to have the largest share in home purchases by 2020.
Tax Plans for Housing
April 2019 will implement the new tax plan. While it may benefit renters with lower rates and higher standard deductions, it’s a toss-up for homeowners. While some homeowners will receive lower rates and higher standard deductions, many will have a higher tax bill due to limited deductions.
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