RISMedia's Real Estate Magazine

JAN 2019

Real Estate magazine is the industry's leading source for real estate news and information since 1980. Published monthly by RISMedia, Real Estate magazine offers timely and relevant real estate news to the industry's top brokers and agents.

Issue link: http://remag.rismedia.com/i/1066259

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Page 29 of 118

prices today, however—and at the in- terest rates of tomorrow—there will be a measure of relief. "Certain headwinds—including ris - ing mortgage interest rates, higher rents and stiff competition for hous - ing in the most desirable areas—will only grow stronger over the next year, but that won't necessarily be a bad thing," says Aaron Terrazas, senior economist at Zillow. "A slower-mov - ing market is likely to give more buy- ers a chance to catch their breath and choose from a wider selection of homes that fit their preferences and budgets." First-timers will again be a force in 2019, accounting for 45 per - cent of mortgages, according to realtor.com's report. Many will be millennials who are moving or trad - ing up. According to Trulia, 21 per- cent of millennials are planning to purchase in the next year. Given the buyer dynamics, 2019 will continue the favorable market for sellers, as well—but not everyone will garner multiple offers, as in re - cent years. According to the forecast by realtor.com, sales will soften for the year, down 2 percent. "For the first time in a while, home seller sentiment has decreased," Young says, citing the report by Tru - lia. "I think people, net, are still think- ing it is a good time to sell, but it is not as favorable as it was last year." One critical development in 2019 is the effect of the Tax Cuts and Jobs Act. According to the research by Tru - lia, half of homeowners believe they will not benefit from the changes when they file their taxes—and many, realtor.com's report shows, will have a bigger bill at tax time. How housing will be impacted overall is unknown. Another development is disas - ters, which are growing in intensity and number. Following two devastat - ing hurricanes and the wildfires in 2018, analysts are expecting more occurrences this year. According to the predictions by Zillow, a "record number" of homes will be lost as a result—but according to the findings from Trulia, 52 percent of homeown - ers are "no more or less concerned" about the potential threat. The Takeaway With the burn-out in home prices and rates rising, housing has been inch - ing toward normal, and is anticipated to stabilize through 2019. Battered buyers may have improved pros - pects this year, but will still contend with cost and inventory pressures. "2019 looks to be a pivotal year as the market cools and transitions from one marked by robust recovery into one more in line with historic norms, and more balanced between buyers, sellers and renters," Terra - zas says. RE Suzanne De Vita is RISMedia's online news editor. Email her your real estate news ideas at sdevita@rismedia.com. HELP YOUR AGENTS BUILD THEIR BUSINESSES WITH THE ONLINE www.store.realtor GET 20% OFF to receive 20% off your next purchase! USE DISCOUNT CODE SHOPRIS From sales and marketing to legal resources, research and more, the REALTOR ® STORE has you and your agents covered!

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