Housing Market Recovery

Outlook for the Florida Real Estate Market

The U.S. housing market has seen an overall recovery from the financial crisis that began a decade ago, as homeownership rates continue to rise, while home prices are at or approaching record highs in many of the nation’s hottest markets.

Some of the country’s most active real estate markets are predicted to see a sales slowdown as 2018 comes to a close. These drops in home sales can be connected to home supply shortages paired with price increases – not necessarily low buyer demand as many might think.

A shortage of homes for sale

A new construction slowdown and a short supply of existing homes for sale have pushed housing prices high enough in some markets that home shoppers are either waiting it out on the sidelines or experiencing bidding wars. What this means for homebuilders is that it is a great time to increase supply.

As the effects of limited construction and homes for sale still lingers, increasing home inventory will contain rapid price growth, and open up the market to prospective homebuyers who are increasingly being priced out. As 2019 approaches, the anticipated rise in inventory and moderate price growth will keep home sales on the upward trend.

For those selling their homes, historically low home inventory should help owners get the price they want when they take their property to market. According to experts, though, it’s still too soon to call it a buyer’s market.

The latest of mortgage rates

From luxury condominiums to single-family homes, open floor plans and large entertaining spaces continue to be popular. Grand gourmet kitchens continue to be popular, with top-of-the-line appliances and features that make today’s cook feel like a gourmet chef at center stage. Kitchens open up to large living and dining spaces, so that everyone can gather together. Large media rooms and movie spaces are still popular, but trends are moving in favor of rec rooms, large loft spaces and game rooms, and features that are more interactive for families.

Stunning Outdoor Spaces

Mortgage rates are rising at a healthy pace, but the good news is that mortgage default and foreclosure rates sit at near historic lows. Lending systems in the U.S. are dramatically different than they were a decade ago, thanks in part to sound lending practices and policy reforms.

Earlier this year, experts were predicting that mortgage rates would close the year between 4.6% and 5%. Though these rates are slightly higher than rates in 2017, the projections are still historically low. (As of this month, the current 30-year fixed rate hovers at around 4.8%).

Millennial homes buying trends

The generation of adults born after 1980 have been slow to enter the housing market, but as many are now approaching the age when they get married and have kids, they are in the fortunate position to buy homes at rates equal to that of their parents’ era. Even single millennials are more likely to own a home than prior generations of singles.

Contact the experts at United Landmark Associates for the latest analysis of the real estate market, information about homebuying trends and predictions moving into 2019.

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