The real estate market is always changing, sometimes a bit faster than you can follow. The many variables in real estate market make it very hard to accurately predict the long-term future of the market. Still, keeping yourself up to date with the continuous ever-changing trends will put you in a stand out position from the crowd if you are a real estate investor or simply if you are interested in the subject. 2018 was an odd year for the real estate market as it began hot then things de-escalated just as quick. So, will 2019 be the same? Here we have seven of the predictions that are based on economic and political state and trends for this year.
The price rates may be facing a drop
Unlike 2017 and 2018 where the prices jumped 10%; this year, the prices might not follow the same path which might be great news for some, and bad for others depending on your side of the coin. The prices are still increasing but at a much lower pace which is estimated to be around 1% at most so far. The reason behind that prediction lies mainly in the instability of the economic climate which can drive off most of the interested buyers.
However, the golden rule of supply and demand still applies here; the cost increases with the low supply of the product; this might play a vital role in surprisingly increasing the prices especially for new houses considering the undeniable fact that there are many areas that don’t have enough supply of newly built houses. This fact might be the main contributing factor into increasing the expected rate from 1% in a jump to 8% approximately.
The homeownership urge is on the rise
Many researches might state that people are settling for just a rental instead of buying especially millennials. This was proved to be wrong by the numbers of the houses sold this past year which rose to be around 64.5%; surprisingly enough, the increase is majorly caused by millennials. A report made based on the difference regarding new homes proved that millennials and the older generation share the same interests and point of views. Giving up space for more benefits is found to be common between both parties which made the sellers’ job easier in catering to two different generations.
Marketing for real estate is becoming more digitized
The younger folks who aggressively invaded the market have established the importance of using social media for marketing. The main reason behind choosing to depend on the internet is not solely for the long hours spent daily on it; it’s also for the fact that most people now rely on online reviews to make up their minds when facing a final purchase decision. Resorting to the internet have made it easier for sellers to reach a wider range of audience, as well as helping buyers to make the right decision in choosing the right house for them. Using digital means helped in residential property efficiency as it allowed for new technologies to be used making it easier to assemble your dream house within your budget.
Mortgages are Getting aggressive
Australia’s renowned low-interest rates are going to take a direct hit around the second half of next year, it is highly advisable for buyers to take advantage of the current lower rates before it gets hiked next year. Banks are urging buyers to pay as much as possible from their debt using the price hike as a warning. It may seem implausible but paying close to $ 150 extra per month is going to save you a fortune in the long run, about $10,000 to be specific, while also cutting a year off of their debt duration. It is the sanest option to do as much damage to your debt as you can right now while you still have the chance.
Rentals Will Start Shrinking
The market isn’t supportive of either house prices or rental occupation. Even though apartments are popping up constantly for the last 4 or 5 years yet over a half of these properties are being taken prematurely by developers looking to invest in real-estate. This provides the advantage of making the market a more competitive environment with all the offers renters receive from landlords who are forced to make their prices match the financial environment of the location. Losing a month’s rent become easier if landlords cannot carefully listen to the beat of the market. Some developers may be forced to sell their properties prematurely so they wouldn’t lose their investment or most of it.
Building Buildings is Becoming Costlier
Lumber is directly proportional with the prices of houses, since they are used to create the most basic building materials for houses; therefore, their rise also causes a rise in prices of renting and purchasing houses. Importing tariffs imposed on imported construction materials simply increase the end cost on all buildings, especially since the imposed taxes are going to hinder the flow of supply into the country and raise the prices of the construction materials and houses even more.
Concrete floors are making a comeback in home design
Concrete flooring are strong now in basements, kitchens, and even some bedrooms as they are becoming trendy again for their fresh industrial look. You won’t have to synthesize old warehouse designs to get that chic look you are looking for. The way to really drive concrete designs home, is by fully or mostly integrating concrete designs to give the right overall vibe to your house. They are also affordable compared to common other options like hardwood. If concrete floors aren’t really your thing, then you should try considering concrete walls to get a point across. This article explains more about the price range that you can consider.
Final Thoughts on Trends
Overall, design trends have changed dramatically as much like the economic trends. Concrete caused some noise in the design scene thanks to the new additions it provides in terms of themes and also the affordable prices it comes with. Whatever the trend you deem fit to follow, you should try to apply it quickly, because 2019 is going to be pretty hectic in terms of pricing and availability of materials. Investors also will need to act quick so they wouldn’t lose a lot of money. Careful research even if hasty needs to be done to know for sure the basic outline of your plan.