2019 Real Estate Predictions by Kim Kiyosaki

2019 Real Estate Predictions

Find out what can you expect when it comes to investing this year

Is one of your 2019 New Year’s resolutions to finally dip your toe into the real estate investing pool? Or do you already have some investments and are wondering what’s in store for the industry this year? As you can imagine, given my own substantial real estate investment portfolio, I’ve been keeping a close eye on various reports and predictions for 2019. Here’s a brief recap of some of the information I’m seeing, as it will help all of us make more informed decisions when it comes to evaluating new investment opportunities this year:

  1. Rising mortgage rates.

    According to a report from Wells Fargo Home Mortgage, mortgage rates have risen faster than economists predicted, which could deter some potential buyers. According to Zillow, the 30-year, fixed rate mortgage will climb to 5.8 percent—the highest we’ve seen since 2011. The same leading real estate marketplace predicts that rising rates will compound the effect of rising home values in 2019 — which could make owning a home even less affordable.

    Current homeowners who may have been contemplating moving could find themselves staying put in order to hang on to their locked-in low mortgage rate and first-time home buyers (or investors) could put off this major purchase in favor of waiting for better rates. I should note that mortgage rates are currently hovering around 4.7 percent, though, so perhaps there’s no time like the present!

  2. Low inventory.

    Look around — are you seeing new residential housing developments going up? Probably not very many. Inventory of homes remains low this year, as increased costs of construction materials and labor means a lack of new housing projects. And what little building is going on, is geared toward the higher-end housing, leaving millennials and other first-time homebuyers priced out of the market.

    Natural disasters took some housing off the market in 2018 (15,000 homes were destroyed by the California wildfires and still others were destroyed by hurricanes and floods). Simply put, there aren’t enough new housing options to keep up with the demand, and this is leading to rising housing costs.

  3. Suburbs on the rise.

    With housing prices rising in major cities, many people are having to bite the bullet and move out to the ‘burbs—but that doesn’t necessarily mean they’ll have to endure a longer commute. Tech companies, for instance, are starting to move to secondary markets where millennials can afford to live. So it stands to reason that those areas will keep on gaining population.

  4. Great rental market.

    So what happens to all those people who can’t afford to buy a new house because of rising costs and higher mortgage interest rates? They rent, of course! This is great news for landlords, as there won’t be as much concern over vacancy.

  5. Apartment amenities abound.

    One way to attract new tenants to your rental property is by choosing your amenities wisely. Renters are looking for upgrades like keyless locks, smart thermostats and doorbell cameras, open floor plans, stainless steel appliances, in-unit laundry, media rooms, secure parking and online rent pay. You’ll want to explore these options, checking out competitors in your market, and then decide what’s right for your property.

Since these are merely predictions from industry experts, it’s impossible to say what will really happen. That’s why it’s important to follow the market closely and become familiar with neighborhoods, city trends, and the inventory in your town. I’d suggest starting the process by reading a few of my past real estate investment blogs, including:

The more you read and learn, the more confident you’ll be about not only recognizing, but jumping on a great opportunity the moment one comes your way.

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