It’s not going to be a buyer’s market for real estate, but there will be opportunities.
“In 2019, we might finally see sellers sort of loosening their grip on that housing market,” said Trulia Senior Economist Cheryl Young. “While that might spell some relief for some frustrated home buyers out there, there’s still a lot of challenges ahead.”
The problem is still supply and demand.
“Inventories still remain really low,” said Young. “That’s been how it is, sort of a historic low. We’ve seen worsening affordability. Even though prices are slowing down their growth, they’re still not really dropping.”
Part of the affordability problem will likely stem from increases in interest rates.
“As mortgage rates rise, that means you’re going to be spending more and more of your income every single month on your house,” said Young. “Those looking for a house and maybe shopping around for mortgage rates or homes will think as rates go up, I’m going to have to be spending more every single month. It may actually keep people from jumping into the market right away.”
In the long term that may positively impact demand for those who have had trouble finding a home, if they can afford the higher payments.