US real estate predictions for 2019

Similar to how political pundits claim this election cycle will be the biggest in a generation, this year could be the biggest year in recent memory in terms of mortgage lending and the residential real estate industry in general. (And if you think I have a piece of trading land in Florida, I’d like to sell to you.) For a variety of reasons, I have unilaterally decided to keep it short and sweet this year. So, here are the three perennial predictions for 2019.

1. Concert work.
At first glance, the phrase “Gig Work” seems antithetical to mortgage underwriting standards, but it’s actually quite refreshing. And that means that as the aftermath of the 2008 crash couldn’t be further from the subconscious, there may be a “creep” of subprime mortgages into current underwriting standards. But these aren’t your dad’s Oldsmobile subscription standards. Which means today’s lenders are more than willing to count intermittent and part-time work as bona fide income, even though it was discounted after 2008.
According to Saideh Brown, president emeritus of the United Nations National Council of Women, “Mortgage lenders are starting to look at gig work for mortgage approval. This is only going to become more prevalent in today’s job market. Banks are looking at all sources of income and gig work is fast becoming a primary source of income for millennials and needs to be factored in for emotional acceptance of homeownership for this generational bloc.”

So the bottom line for 2019 in Prediction 1 is to expect creative but reasonable underwriting standards to become part of normal mortgage underwriting procedures.

2. Saved by Millennials (again). What?
At second glance, who doesn’t get bored with self-absorbed Millennials. Me, for example, but despite that tongue-and-cheek denigrating response to the flavor-of-the-month generation, who will no doubt be replaced by the next offspring of the eternal hopeless, they at least make a good impression. And here is the angle; While many are concerned whether real estate is a safe bet today, historically speaking it is, and therefore one’s perspective should be long-term, despite naysayers of non-real estate appreciation for 2019.

According to Dan Green, CEO of real estate site Growella, “Rising mortgage rates are not slowing down the Millennial Generation’s desire for home ownership. Pent-up demand will continue to build through 2019, driving up home values ​​across the board.” price points. I like it. In every market, housing is defined by supply and demand. And as long as supply and demand stay within tolerable ranges, housing will remain a good investment.”

So, the bottom line for 2019 in Prediction 2, buy now, shut up forever, as interest rates remain good.

3. Decrease in the price of housing.
Real estate has always been local. Hence the adage “Location, location, location.” With that in mind, there is nothing to worry about catastrophically in terms of buying a home as a primary residence. If you are an investor, pick your fights carefully as not all markets will perform as expected, no matter how smart you may think you are! With that in mind (again), there will be a slight degree of variability, as it appears to be, as you’d be crazy not to expect some degree of variability. Even in the Garden of Eve, the market value probably went down after Adam took a bite of the apple.
According to Ruben Gonzales, chief economist at Keller Williams, “Looking ahead to 2019, we anticipate home sales to decline about 2%. We expect it to be another year a little slower as buyers continue to grapple with higher mortgage rates after dealing with several years of rapid price growth.

So the bottom line for 2019 in Prediction 3 is to proceed with caution as an investor, but as a primary homebuyer, nothing should reasonably warn you of a purchase decision, as home appreciation should be an afterthought, and especially depending on your waiting period.