WeBuyHouses.com Releases 2019 Housing Market Predictions

[Dev Horn]

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(Dallas, TX) December 20, 2018 – Every December, WeBuyHouses.com - the most recognized and trusted brand among cash home buyers - surveys its independent business owners and asks: What will next year be like in your market?

This year, the company received responses from 45 of their local market affiliates, offering a unique insight into the professional “home flipping” business - and the real estate market, in general - at local, regional and national levels.

CEO Jeremy Brandt summed up their outlook for 2019: “After five years of non-stop price increases in most areas, residential real estate is likely to slow down in most local markets next year. In 2018, we’ve definitely seen the cooling effects of rising interest rates (up 70 basis points since our last survey), and we expect that to continue with similar increases in 2019.”

WeBuyHouses.com makes the following housing market predictions for next year:

• Home prices are expected to level out in 2019. They will drop on the West coast, rise in the South, and start to level out everywhere else. On average, we expect home prices to rise about 3% next year (to a predicted year-end median price of $264,000).
• Inventory of existing homes available for sale will rise in most markets in 2019. As a result, we’ll see days-on-market increase, resulting in a slower turnover rate for invested capital. Longer DOM will require more investment in marketing properties for sale.
• The market switches from a Seller’s Market to a Buyer’s Market over 2019.
• Home renovation costs will rise in 2019 in almost every market. Labor and materials will be in high demand next year, even as home prices start to soften. Rising renovation costs combined with softening prices will put margin pressure on real estate investors and push many unprofessional players out of the market.
• Rising interest rates are a big factor in slowing down the housing market. The Fed might have wanted to cool down a market that ran too far too fast. We don’t know, but we expect 5%+ home mortgage rates a year from now (up 75 basis points from here).

Dev Horn, VP Marketing and author of the 2019 Report, added: “The pull-back will be most dramatic in West, particularly California. Luxury home prices hit the wall in 2018 and will continue to drop as demand softens next year, while entry-level housing is likely to rise in value a bit more as demand will remain strong for at least another year.”

ABOUT WeBuyHouses.com

Based in the Dallas/Ft. Worth area, WeBuyHouses.com is a national leader in the residential real estate investment industry. With local offices in over 60 U.S. markets, the brand has been trusted by more than one million homeowners since 1997 and has been featured in national media including Forbes, the Wall Street Journal, Associated Press, Inc., and CNBC. Detailed reports and video content for the 2019 Housing Market Survey are available from the company. Media Contact - Dev Horn, [email protected], (817) 251-8296

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