The reduced growth of property prices and ever-increasing interest rates have many investors worried. Many continue to question what the real estate outlook for 2019 is going to be like. The fact that economists predict a recession in the coming days has not helped at all, with many people unwilling to act, lest they end up losing money.
Regardless of where you reside, you may have noticed a change in market conditions. There is a need to be prepared because as thing stand, one could be looking at the property market in Connecticut or even Vancouver.
Rather than start worrying due to the fear of facing the unknown, the solution is to get comfortable and start studying market conditions. The following are trends to expect in the coming days:
New Constructions on The Rise
Buyers who have continued to feel as though the market was working against them have started turning to new construction projects. 2019 projections indicate that the property market will notice an increase in new construction projects by up to 8%.
The good news here is that there is a high demand, which means that builders will continue churning out new properties to make a living. The downside is that there is not enough land to meet construction demands.
Home Prices Are Rising at a Steady Pace
The last two years saw the property prices rise at a very fast pace. In some areas, property values rose by as much as 10 percent. However, the same trend is not expected this year.
While there is no projected property boom, this is not enough reason for you to become nervous. Experts have attributed the slow uptake of properties to the uncertainty currently surrounding the financial markets.
Investors and home sellers are encouraged to remain vigilant, even as they continue to assess their investment decisions.
Interest Rates Are Rising
Financial experts have in the past few months been cautioning investors about rising interest rates. The reality is that the time has finally arrived, and the rates have started to rise.
Sellers everywhere should take into account the rising interest rates. They are the sole reason why many buyers are no longer able to afford homes they would have easily paid for a few months ago.
As a seller, it is not possible to ask top dollar for your residence when buyers are grappling with high monthly repayments due to rising interest rates.