National Housing Market Predictions Investors Should Know For 2019
Wise investors always make sure to keep a close eye on market trends, and the end of the year should be no exception.
With 2018 drawing to a close, the holidays are the perfect time to evaluate housing markets throughout the country and prepare a careful strategy for investing in the new year.
Biggest Real Estate Trends of Q3 2018
Current Average Home Values and Predictions For 2019
According to Realtor.com, average list prices nationwide have consistently increased every year since 2013. Most recently, average asking prices rose to $293,000, up 8.5% YoY when comparing November 2018 to the same time last year. With more markets “heating up” (experiencing less supply than can meet demand), much of the country is entering a “seller’s market,” and prices are therefore likely to continue rising into the foreseeable future.
In fact, Zillow reports similar findings, and anticipates median Zestimate valuations will rise throughout the US by an additional 6.4% to $235,000 by October 31, 2019.
Hottest Markets As Of November 2018
Realtor.com measures “market hotness” using MLS listings data and a proprietary Market Hotness Index, which “exposes how local areas are experiencing fast moving supply and rising demand. Using proprietary insights on buyer activity and the most comprehensive data on active inventory, the analysis breaks down demand and supply dynamics to rank metro areas, counties and zip codes relative to the rest of the country.”
Based on this system, a market with a Hotness Index of 80.0 or above is considered a hot market. As of November 2018, 40 of the 300 total metro regions analyzed across the nation are considered to be hot, with an additional 79 markets categorized as “slightly hot” (as indicated by a Hotness Index measuring between 60.0 and 79.9).
Of course, cross-market demand all over the country has played a significant role in the rising number of hot markets as well. Understanding these trends will be key for successful investing in 2019, as more neighborhoods experience shifts in buyer demographics, income levels, and expectations.
2018 Rental Market Trends (And How To Prepare For 2019)
Forbes recently published an article discussing the top 25 rental markets across the country, based on an analysis by Local Market Monitor. According to the article, each of the cities listed below demonstrate high demand for rental homes and a strong local economy, meaning that investors in can expect to find tenants fairly quickly and start earning a favorable ROI in 2019.
Average Monthly Rent Prices As Of Q3 2018
As of this quarter, the median monthly price for vacant rental units nationwide is now $1,003, according to the US Census Bureau. The graph below illustrates the consistent increases in median rent prices each year since 1995. Based on this data, investors can look forward to seeing rental prices continue to rise in 2019 and well into the future.
Zillow also offers a more detailed look at median rental prices by metro region, which can serve as an excellent resource for pinpointing investment opportunities.
Interestingly, a recent report from Apartment List found that 90% of Millennial renters are actually interested in buying homes, but less than 5% of that pool can afford a down payment. In fact, when surveyed, nearly half of these prospective buyers admitted to not having saved any funds at all to put towards purchasing a home.
Based on this information and the median prices of condos, Apartment Finder estimates that Millennial prospective buyers in major metro regions will need to save up for at least 20 years before being able to afford a down payment.
Consequently, as property values continue to rise and Millennial's become the largest generation, it’s safe to expect demand to remain high in today’s prominent rental markets.
Find Low-Cost Investment Properties For Sale
CastleRock proudly maintains an expansive inventory of low-priced houses for sale. If you’re thinking about investing in property in the new year, browse our nationwide inventory online today!
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