Posted: 12/07/2018

As we approach the New Year, there are some changes on the horizon for the Bay Area real estate market.

Quick sales, tight inventory and skyrocketing prices may no longer be the norm in 2019.

Here are three predictions for the Bay Area real estate market to watch out for.

Fewer Buyers

Record-high prices and sales – hallmarks of the booming real estate market in the Bay Area – are slowing down. This new reality, however, isn’t generating more buyers.

Other conditions forecasted for 2019 could further hinder new buyers. According to the California Association of Realtors, rising interest rates and the lack of affordable housing are just some of the ingredients in its forecast.

Since prices remain high, many future homebuyers are having a difficult time entering the market, a trend that’s likely to continue into the New Year.

Slight Price Increase

A slowed-down housing market doesn’t necessarily mean lower prices. In fact, real estate experts are forecasting home prices to go up by 3 percent in 2019. Should the economy continue an upward trajectory, that could also be a factor.

Such a price increase would still be smaller than what we have seen over the last couple of years, however.

Downturn in Sales

Prices are still increasing, albeit at a slower pace. This trend, however, may not result in more sales in 2019. Already, homes are taking longer to sell and not reaching the stratospheric prices common in the market earlier this year.

After years of high-octane growth, the market is finally appearing to cool off. The cool-off, however, is likely not enough to immediately bring in more buyers, lower prices or interest rates.

Since the economy remains strong and buying a home is still expensive, future homebuyers may want to act before any other major shifts remake the market again.

As the market begins to soften, now may be the time to get pre-approved for a loan to see how much home you can afford. If you do decide to get pre-approved, consider using our Keys on Time Program, which can give you an advantage by offering:

  • A fully underwritten pre-approval.
  • The flexibility to waive the loan contingency, an opportunity that comes from a pre-approval. This will strengthen a buyer’s offer and will allow it to stand out from the rest.
  • Assurances that the closing will occur on or before the close of escrow.

All of this, plus Guarantee Mortgage’s decades of experience in the Bay Area market can help you in your effort to land the type of home you have been looking for in 2019.

If you’re ready to begin, please contact us today.

 

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