Top 3 Things You Need to Know if Buying or Selling in 2019
We get a lot of questions about what’s going to happen in our 2019 market. The National Association of Realtors suggests this year will be a slower and steadier market than what we saw in 2018. Last year’s market started out hot, but it cooled toward the end of the year. So, what’s in the forecast for this year? Today we’d like to share the top three things you should know about our market in 2019:
We’re expecting more inventory. We might have a 10% to 15% increase over last year, and we believe this is going to affect higher-priced homes.
Affordability will remain difficult. Both home prices and interest rates are expected to increase. Mortgage rates may cap out at around 5.5%—a full percentage point higher than now. We’re looking at an increase in affordability by about 8%, meaning monthly payments will be rising.
Our tax situation has changed. The new tax laws cap the mortgage interest deduction on $750k in mortgage debt versus $1M in prior years. Additionally, there is now a $10,000 limit on state & local tax deductions (including state income tax and property taxes). Fortunately Florida doesn't have a state income tax so most will still be able to deduct most of, if not all of the annual amount paid in property taxes (up to the $10k limit). Hopefully this tax change will keep people moving here to avoid paying much higher taxes in other states.
SELLERS: We believe the days of the frenzied market are over. There are fewer buyers due to affordability, but since inventory is growing, they’re able to take their time when looking for homes. Price your home competitively and you’ll be able to sell.
BUYERS: You may not be able to afford as much home because of rising rates and prices. You don’t need to hurry to make any decisions, but if interest rates keep rising, this could severely limit your buying power. So if you find a home you like that’s priced competitively, it’s likely time to make a deal.
If you have any questions or need more information, feel free to reach out to us. We look forward to hearing from you soon.