As the end of the year approaches, many homeowners are looking ahead to 2019. What will happen in the real estate market in 2019? Will home prices continue to increase? Will it be a seller’s market or a buyer’s market?
In 2018, home prices along with interest rates has continued to rise, inventory has been limited and homes have sold rapidly. What is on the horizon? Berkshire Hathaway HomeServices Florida Network Realty is forecasting a bright future for real estate in 2019.
“We have seen robust appreciation in nearly every area over the past several years, and that does have to normalize at some point,” said President and CEO Christy Budnick, Berkshire Hathaway HomeServices Florida Network Realty. “Given the job climate, the historically low interest rates and low housing inventory levels, we believe the real estate market will continue to be very strong in 2019. We anticipate slightly lower levels of appreciation, ranging from 3 to 5 percent as compared to the 5 to 8 percent most areas in Northeast Florida have seen.”
The leadership at Berkshire Hathaway HomeServices Florida Network Realty believes the market conditions in 2019 will be good for buyers and sellers alike. Based on industry data and trends, the company sees positive news ahead.
An increase in new-home construction
Berkshire Hathaway HomeServices Florida Network Realty expects to see an increase in local new-home construction in 2019. More builder product in the market will help prospective buyers locate the right property. It may help some sellers who are thinking they would like to sell, but hesitant to do so because the buyer’s market is so tight. With more homes in the market, there will be more available inventory for buyers.
Opportunities for both sellers and buyers
Current real estate market conditions are favorable to sellers. According to the Northeast Florida Association of Realtors September market report, the months’ supply of inventory was 3.6 months, well below the five to six months considered a balanced market. With more builder product coming to the market, there will be slightly more inventory. However, Berkshire Hathaway HomeServices Florida Network Realty believes limited inventory will continue to some extent in 2019.
Home prices will continue to rise
Berkshire Hathaway HomeServices Florida Network Realty anticipates that home-value appreciation will continue to rise in the 3 to 5 percent growth rate in 2019. The increase in home prices will continue to be driven by the inventory of homes for sale. With rising interest rates, buyers who may be priced out of the market by a rate hike are encouraged to begin the buying process. On an existing home, the process typically takes at least 60 to 90 days from finding the perfect home to closing. Prospective buyers can find a wide range of home choices throughout Northeast Florida.
“Our local neighborhoods offer tremendous appeal,” said Founder and Chairman Linda Sherrer, Berkshire Hathaway HomeServices Florida Network Realty. “The Northeast Florida lifestyle offers something for everyone. Whether it’s golfing, boating, spending time at the beach or enjoying entertainment and culture in the urban core, Northeast Florida has something for everyone. Our neighborhoods offer a wide array of home choices and an incredible way of life.”
In addition to the area’s leading Realtors, Berkshire Hathaway HomeServices Florida Network Realty can connect buyers and sellers with the best mortgage professionals, title company resources, relocation experts and more. For more information, visit FloridaNetworkRealty.com.
*Written by Clockwork Marketing.
Photography:
- Berkshire Hathaway HomeServices Florida Network Realty President and CEO Christy Budnick and Founder and Chairman Linda Sherrer