Predictions show that in 2019, the US economy will be on its strongest roll ever.
Some of the factors that will contribute to the growth of the US will be new career opportunities and return of high-paying jobs, growth in employment, lowering of taxes and jobs that have high wages. Consequently, this will have a positive effect on the real estate market too and will play a role in its growth.
According to real estate firm Kale Realty, In 2019, there will also be a growth in the number of foreign investors that would want to invest in the real estate market. Thus, investors from Canada, China, and Singapore, and increasingly want to invest in the real estate sector in the US.
Here are 4 tips which will help you in investing into the US real estate market in 2019.
Understand the market: In 2019, it is believed by experts that there will be a rise in new housing construction. For instance, the markets that you should look to tap into include Chicago, Dallas and Austin home development areas.
The new construction of homes is picking up slowly and even though there might not be enough homes to satisfy the housing demand from real estate buyers, it is worth waiting for the market to pick up a bit. As far as demographics are concerned, millennials might be the ones that will be investing most into real estate.
So, maybe you should try to pitch your sales to the millennials and use more appropriate marketing techniques to attract the younger investors. The younger generation is more keen on single-family homes and housing surrounding 18-hour cities with transit-oriented developments will be very high in demand. The younger generations want amenities including communal gardens, movie theaters, dog run spaces, and access to co-working space. Thus, homes offering these high-end services including ones like laundry services will fetch higher investments.
Mortgage Rates: In 2019, the mortgage rates are also slated to steadily rise. While this could mean the addition of $100 to the monthly housing payments of a few customers, for others if affordability is not an issue, this could mean that they could decide to purchase homes.
If the cost of renting homes goes up, it could mean that buying a home might seem like a more feasible option to some in 2019. If the prices keep rising, it would be a good idea to consolidate all your debts so that you can refinance your mortgages. However, this doesn’t necessarily mean that there would be a major impact on real estate sales. Thus, the best time to invest in a house is in 2019.
Prices: Prices are slated to increasingly rise in 2019 however, prices will usually vary by region. While some cities across the US real estate market will see huge rise in prices, there could be smaller gains in other markets. Cities with stronger demand, like LA, New York, Houston, Seattle and San Francisco will experience biggest gains. So, for real estate investors who already own investment property in any of these cities, they can put up such property on rent.
The Power of Technology: The real estate market will continue to depend on technology. The real estate market has been witnessing inroads by tech firms and startups and very soon, one might see the rise of AI in building management, organization, and design.
For instance, shared co-working spaces like WeWork often use AI to analyze user behavior in these shared spaces to refine and redesign their office layouts, and create a virtuous feedback loop. In fact, AI may offer huge benefits for security and more effective property access. Thus, once you ride on the big wave of technology, you are more likely to tap into potential markets that will reap you huge benefits.
Thus, even though 2019 market might have ups and downs, it is important that you make the right choices to make the most out of the real estate market.