Martha’s Vineyard Real Estate 2019 – January has come and gone, it’s still early in the year, and people are wondering “where is the housing market headed in 2019?”
It’s not only the people involved in real estate — the buyers, sellers, and homeowners — who are impacted, but all of Martha’s Vineyard feels the impact of real
Home Values Are Going to Increase
It has been shown nationally that the value of real estate will continue to rise. Freddie Mac predicts housing prices will increase by 4.3 percent in 2019.1 While the rapid price appreciation we witnessed in recent years has slowed, the combination of a strong economy, low unemployment, and a lack of inventory in many market segments continues to push prices higher.
“Ninety percent of markets are experiencing price gains while very few are experiencing consistent price declines,” according to National Association of Realtors (NAR) Chief Economist Lawrence Yun.2
Yun predicts that the national median of existing-home prices will increase to around $266,800 in 2019, and $274,000 in 2020. “Home price appreciation will slow down — the days of easy price gains are coming to an end — but prices will continue to rise.”
Martha’s Vineyard Real Estate 2019 – What It Means Here?
If you’re in the market to buy a home on Martha’s Vineyard, you may want to make your move. It appears prices will continue going up for a while.
If you’re a current home owner, you can feel good about it. Real Estate is a proven investment, especially here on the Island. In fact, the equity level of American homeowners reached an all-time high in 2018, topping $6 trillion.3
In 2018, we saw a national decline in sales, primarily driven by rising mortgage rates and a lack of affordable inventory. However, NAR’s economist Yun isn’t alarmed. “2017 was the best year for home sales in ten years, and 2018 is only down 1.5 percent year to date. Statistically, it is a mild twinge in the data and a very mild adjustment compared to the long-term growth we’ve been experiencing over the past few years.”2
National Sales Levels Will Steady
Yun and other economists expect home sales to remain relatively flat over the next couple of years. Freddie Mac forecasts homes sales will increase 1 percent to 6.08 million in 2019 and 2 percent to 6.20 million in 2020.1
“The medium and long-term prospects for housing are good because demographics are going to continue to support demand,” explains Tendayi Kapfidze, chief economist for LendingTree. “With a slower price appreciation, incomes have an opportunity to catch up. With slower sales, inventory has an opportunity to normalize. A slowdown in 2019 creates a healthier housing market going forward.”4
What does this mean for you? If you’re nervous about reports of a market slowdown, it’s important to keep things in perspective. If the market slows down, it can keep a market from from exploding. It is better that there is a gradual growth.
Mortgage Rates Will Rise in 2019
The Mortgage Bankers Association predicts the Federal Reserve will raise the interest rates three times this year, resulting in a rise in mortgage rates.5 While no one can predict future mortgage rates with certainty, Realtor.com Chief Economist Danielle Hale estimates that the rate for a 30-year mortgage will reach 5.5 percent by the end of 2019, up from around 4.62 percent at the end of 2018.6
While mortgage rates above 5 percent may seem high to today’s buyers, it’s not out of line with historical standards. According to Hale, “The average mortgage rate in the 1990s was 8.1 percent, and rates didn’t fall below 5 percent until 2009. So for buyers who can make the math work, buying a home is likely still an investment worth making.”7
If you are in the market to buy or refinance, it might be a good idea to do it sooner rather than later, since we know mortgage rates are going to rise. Some advice, you can take steps now to improve your credit score, like saving for a down payment or paying down your debt. These things will help you qualify for lower rates.
Move Over, Here Come the Millenials
“The housing market in 2019 will be characterized by continued rising mortgage rates and surging millennial demand,” according to Odeta Kushi, senior economist for First American. “Rising rates, by making housing less affordable, will likely deter certain potential homebuyers from the market. On the other hand, the largest cohort of millennials will be turning 29 next year, entering peak household formation and home-buying age, and contributing to the increase in first-time buyer demand.”4
Danielle Hale, chief economist for Realtor.com, predicts the trend will continue. “Millennials are also likely to make up the largest share of home buyers for the next decade as their housing needs adjust over time.”6
What does it mean for you? If you’re in the market for a home, prepare to encounter competition for ideal listings. If you plan to sell a home in 2019, it’s a good idea to work with a professional agent, like those on our team at Point B Realty. We know how to reach millennial buyers and others interested in buying Martha’s Vineyard real estate. Our team uses a variety of innovative marketing and technology tools and strategies to reach potential buyers.
Martha’s Vineyard Real Estate 2019: We’re Here To Help Guide You
While national real estate numbers and predictions can provide a “big picture” outlook for the year, real estate is local. And as local market experts, we can help guide you through the ins and outs of the Vineyard market whether you’re looking to sell or buy here.
If you’re considering buying or selling a home in 2019, we invite you to contact us for a complimentary consultation and a free comparative market analysis (if you’re thinking of selling your Martha’s Vineyard home). We’ll work with you to develop an action plan to meet your real estate goals this year.
You can email or call our sales team, 508-627-4567 ext 2, or feel free to stop by our office at 19 Winter Street, Edgartown, in Nevin Square. You can also easily search all the homes on Martha’s Vineyard by clicking here.
You can learn more about the Point B Team, who we are and what we do, on Facebook, on Twitter, LinkedIn, Pinterest, Youtube
Martha’s Vineyard Real Estate 2019: Helpful Tools
START PREPARING TODAY
If you plan to BUY this year:
Get pre-approved for a mortgage. If you plan to finance part of your home purchase, getting pre-approved for a mortgage will give you a jump-start on the paperwork and provide an advantage over other buyers in a competitive market. The added bonus: you will find out how much you can afford to borrow and budget accordingly.
Create your wish list. How many bedrooms and bathrooms do you need? How far are you willing to commute to work? What’s most important to you in a home? We can set up a customized search that meets your criteria to help you find the perfect home for you.
Come to our office. The buying process can be tricky. We’d love to guide you through it. We can help you find a home that fits your needs and budget, all at no cost to you. Give us a call to schedule an appointment today!
If you plan to SELL this year:
Call us for a FREE Comparative Market Analysis. A CMA not only gives you the current market value of your home, it will also show how your home compares to others in the area. This will help us determine which repairs and upgrades may be required to get top dollar for your property, and it will help us price your home correctly once you’re ready to list
Start decluttering. Help your buyers see themselves in your home by packing up personal items and things you don’t use regularly and storing them in an attic or storage locker. This will make your home appear larger, make it easier to stage … and get you one step closer to moving when the time comes!
Please consider voting for Point B Realty for Best Real Estate for this year’s Best of the Vineyard (we have been honored to hold the title the last 5 years. Click here to vote.
Sources:
- Freddie Mac Economic & Housing Research Forecast –
http://www.freddiemac.com/research/pdf/201811-Forecast-04.pdf - National Association of Realtors 2019 Forecast –
https://www.nar.realtor/newsroom/2019-forecast-existing-home-sales-to-stabilize-and-price-growth-to-continue - Bankrate 2018 Year in Review –
https://www.bankrate.com/mortgages/year-in-review-for-housing-market/’ - Forbes 2019 Real Estate Forecast –
https://www.forbes.com/sites/alyyale/2018/12/06/2019-real-estate-forecast-what-home-buyers-sellers-and-investors-can-expect/#a98b80a70d9a - Mortgage Bankers Association Forecast –
https://www.mba.org/2018-press-releases/october/mba-forecast-purchase-originations-to-increase-to-12-trillion-in-2019 - Realtors.com 2019 National Housing Forecast –
https://www.realtor.com/research/2019-national-housing-forecast/ - FOX Business –
https://www.foxbusiness.com/personal-finance/where-mortgage-rates-are-headed-in-2019