Monday, December 31, 2018 / by Amber Felton
What to Expect from the Greater Savannah Real Estate Market in 2019
We’re getting to the time of year when real estate agents from all over the world analyze and assess the performance of their local markets and identify future events that may change the market’s current status quo.
With that in mind, here’s what we think buyers, sellers, renters, and developers should expect if they’re planning on entering the market in 2019.
Buyers & Renters...
While there is a wide range of different financial and market-based factors that buyers need to consider, there is no doubt that interest rates are one of the most important (or at least most prominent). We’re currently in a financial period that has the highest interest rates we’ve seen in about 8 years. The Federal Reserve is planning at least one more interest rate rise in 2019, with the strong possibility of a second-rate rise coming later in the year.
A reasonably small increase in interest rates doesn’t usually add as much monthly cost to your mortgage as you would perhaps think. However, it’s hard to remember that when you see the monthly increase in payments, it adds up over the term of a 30 year loan.
Purchasing now before interest rates rise, may save you that feeling of buyer’s remorse in the future.. A majority of loans only require as little as 3% down or even 0%. There are many loan options to explore with local lenders in our area. Remember this before re-signing your apartment lease or give us a call we'd be happy to help!
For most buyers, the extra hundred dollars or so per month won't put their desired properties out of budget, but it certainly makes them less attractive. And as you would expect, less favourable buying conditions ensure that some people who were otherwise ready to buy a property are now holding back for a while. With less demand property prices rise slower than they otherwise would. We’ve already seen this in 2018, and there’s a good chance that the trend continues in 2019 too.
Whether you're a first-time home buyer, in the military relocating to Fort Stewart/ Hunter Army Airfield, or a seasoned Home buyer, our Buyers Specialists are here to guide through the purchase of your home in this changing market!
Sellers & Developers...
As we’ve seen in the section above, the rise in house prices is destined to slow further over 2019, in some smaller metropolitan areas there’s a chance that prices could stop growing altogether and stagnate.
Housing inventory is low, meaning the current market is a sellers’ market. Now is the time to list your home to receive maximum return, before those serious buyer’s interest rates rise!
For developers the rate of new build construction is expected to continue. With dramatic changes in the amount of new affordable housing, stocks are not going to be occurring any time soon. Again, the rate of construction that is taking place is going to be slowed slightly by the decisions of the Federal Reserve. Builders need to lend from banks and investors to fund projects, and they also need to find buyers quickly to keep their margins profitable – which makes increasing interest rates a double-edged sword for them.
Trust Your Local Expert...
When selling your home, it is critical to partner with a real estate professional that has a proven track record and holds themselves accountable to a very high standard. The Trisha Cook team serves Pooler, Richmond Hill, Savannah, Effingham, Rincon, and all of the greater Savannah Area. With over 300+ homes SOLD in 2018.. We are your local real estate experts, contact us today for more information at 912-844-8662 https://bit.ly/2C71T8z