To get an idea of what we can expect from our 2019 market, let’s start at reflecting on what happened in 2018.

In short, 2018 was a fantastic year. In our marketplace, homes appreciated by a rate of 10%, and there were 35,300 total home sales. That’s a slight drop from the 35,500 homes that were sold in 2017, but it’s still a good number and an important indicator that things are leveling off.

“Despite this drop-off, 2019 should still be another good year.”

Why did we do so well in 2018? The answer is low supply, and that brings us to the main theme of 2019: increased interest rates. Rates are forecast to rise anywhere between 5.25% and 5.8%, and because of this, we’ll have low supply once more in 2019. Think about it—if you refinanced and your mortgage rate is at 3.5%, you probably won’t be too eager to trade that mortgage for a mortgage with a 5.5% rate.

In addition to keeping supply low, rising rates will also weaken demand slightly, and as a result, our rate of appreciation will lessen. I predict that home sales will drop by 2%, and instead of a 10% appreciation rate, we should be closer to 7.5%. Despite this drop-off, 2019 should still be another good year.

If you have any more questions about our market or you’re thinking of buying or selling a home, don’t hesitate to reach out to me. I’d love to help you.