Real Estate Trends We Expect to See in 2019

If you’re thinking about selling or buying real estate this year, you want to know what to expect. What will home prices do? Will interest rates go up? Is now a good time to buy or sell? With those questions in mind, let’s take a look at the real estate trends we expect to see in 2019.

Real estate trends we expect to see in 2019

Buying a home could be more expensive.

Interest rates are on the rise.

If you’re buying a house this year, you can expect to pay higher mortgage interest rates than in the past few years.

Mortgage interest rates dropped slightly in February, but are expected to rise as the year goes on. How much?

Realtor.com’s chief economist, Danielle Hale, predicts mortgage interest rates will reach 5.5% by year’s end.2

Historically speaking, 5.5% isn’t all that high. But after getting used to more affordable rates – as low as 3.5% – for several years now, that type of increase can cause sticker shock for buyers.

Rising interest rates will keep some buyers from making the leap. Even a small bump in interest rate can make a big difference in affordability. Many home buyers will face the decision between staying where they’re at or finding a lower priced home to fit their budget.

Higher interest rates can also keep existing homeowners in their current homes. Homeowners that secured a super low-interest rate in recent years will be more hesitant to sell their homes and move into a pricier mortgage.

“The forecast for home sales will be very boring – meaning stable” – Lawrence Yun, National Association of Realtors

Sales and prices will still go up.

  • Prices of homes are still expected to rise, but more slowly than they have been over the past 2 years. The price of homes is forecast to increase by about 3% in 2019.1
  • The National Association of Realtors expects the number of existing home sales to go up about 1%.1

More mid to high priced homes are being built.

  • Construction of new homes will continue to increase. The demand for new housing is so high in some regions that builders can’t build houses fast enough.
  • Even though more and more houses are being built, many new buyers could find the prices unaffordable. Most new construction is being offered at a higher price-point, making it too expensive for some buyers, especially first time home buyers.2

Luxury homes will see the most significant growth.

  • The largest increases in home inventory and value are expected to be in the luxury home category in the larger metropolitan areas.2

Millennials will buy more homes than any other generation.

For the last few years, the millennial generation bought more homes than any other age group. That trend is expected to continue.2

In fact, millennials have 45% of the total mortgages nation-wide, coming out slightly higher than Gen Xers and Boomers.

As millennials continue to get older and push into their 30s, they will continue to buy homes. The youngest millennials will be in the market for more moderately priced homes. And as the oldest millennials start families and get further into their careers, many are ready to upgrade to more expensive homes.

Despite rising interest rates, millennials are expected to continue to buy homes. But they will be more mindful of price.

Many millennials are strapped with student loan payments. They also want to be able to afford a particular lifestyle, which can include travel and other experiences. Millennials are likely to compromise on the price of a home to be able to afford the lifestyle they desire.

How do Real Estate trends affect buyers and sellers?


Though buyers can expect prices to shift upward due to mortgage interest rates, price increases will be moderate – and still affordable for many.

If you’re looking for a home in the low to mid-range price point, patience is the key. You might have to expand your search locations. Or you may have to give up some of the things on your wish list to find a home to fit your budget.

The market is expected to be more balanced than it has been in recent years. For buyers, this means less competition and more opportunity to get an offer accepted without a bidding war.

As a buyer, having a great real estate agent is a necessity. When your agent knows what you want in a home, they will stay on top of the new listings on the MLS. Your agent will get you information on houses that fit your needs immediately, making it easier for you to find a home.


For sellers, higher interest rates could mean fewer buyers. Yet, prices are expected to stay steady, and even rise in some regions.

With fewer buyers out there, as a seller, you need to make sure your home is competitive with other homes. Your house needs to stand out as the best value for the money out there. Marketing and price should be your top priority.

For the best results, you need to reach the largest number of buyers right out of the gate. Your real estate agent can help you with competitive pricing and marketing.

With millennials buying more homes than ever before, online marketing is an absolute necessity. Millennials will start their search for a home online – and if your home doesn’t stand out in that first few seconds (with professional photos), they will move on to one that does.

For an extra touch that is sure to pay off, stage your home so it will stand out. Staged homes sell faster and for more money.

Whether you’re selling or buying a home, the process can feel intimidating and overwhelming. But it doesn’t have to. At Coluzzi Real Estate, we answer all your questions and simplify the process. We’re here for you every step of the way. Please don’t hesitate to contact us today!


1 https://www.nar.realtor/newsroom/2019-forecast-existing-home-sales-to-stabilize-and-price-growth-to-continue

2 https://www.realtor.com/research/2019-national-housing-forecast/


About the Author:

Amanda has lived in the Des Moines area since 1999, where she and her husband have bought and sold a handful of homes over the years, including a recent flip. Amanda enjoys writing, obsesses about personal finance and is fond of looking at houses. She loves sharing useful tips and info to make life easier for anyone wanting to buy or sell a home. In her spare time, Amanda cherishes time with her family, volunteers with IHYC, gardens, hikes, and practices TaeKwonDo. You can read more of her writing at whywemoney.com