We use cookies to enhance your browsing experience and deliver our services. By continuing to visit this site, you agree to our use of cookies.More info
Eric Marcus Chicago HomesEric Marcus Chicago Homes
Call Us:

773-732-9898

    Contact Us
    Follow us
    The Team

    About Us

    • Meet the Team
    • Success Stories
    • Buyer & Seller Tips
    • Contact Us

    Our Services

    • Seller Services
    • Free Home Valuation
    • Successful Seller Clients
    • Buyer Services
    • Search for Homes
    • Mortgage Calculator
    • Download Our Home Buyer Guide
    Eric Marcus Chicago Homes

    1525 W. Belmont Avenue, Chicago, IL 60657

    • 773-732-9898
    • [email protected]

    Top 4 Real Estate Trend To Watch In 2019

    Welcome to 2019, where you're likely to hear, "Let the old year end and the New Year begin with the warmest of aspirations,...

    • Eric Marcus
    • January 14th, 2019
    • 5 min read
    Featured Image

    Welcome to 2019, where you're likely to hear, "Let the old year end and the New Year begin with the warmest of aspirations, Happy New Year". With that being said it's a time to look ahead, form new ideas, make new goals, & achieve prosperity.

    If those goals entail buying your own home, be on the lookout for today's changing market. Identifying the housing markets’ leading indicators is the key to predicting future price movements.

    Take a look at what the forecast for 2019 might hold for buyers and sellers.

    1. More Inventory On The Market

    As the years pass we've been keeping a close eye on homes for sale. Its true, homes have been hitting the market but not nearly at a rate to keep up with demand. In fact, last winter in the United States inventory hit its lowest level, but this year it finally began to recover. We expect inventory growth to continue into the next year but not at an astounding rate - less than 7%. 

    While this is great news for buyers, sellers are faced with a humbling reality. 

     

     

    As more inventory enters the market, sellers now have to think more about their competition. It's not going to be as easy as it has been in recent years.

    As inventory growth is expected to be low, not the same thing can be said for the more expensive markets. These markets typically have strong economies and most of the expected growth will be directly from luxury home listings.

    The areas that will experience the biggest increase in high-end inventory is in the metro areas of Boston, Nashville, Worchester, and Seattle. All of these metro markets and the surrounding towns could potentially see double-digit gains in 2019.

    2. Tough Buyers Market

    Its been a seller's market for the past few years. Have we seen a shift that may change to the buyers' favor?

    On one side of the coin, home buyers life will be easier as they have a plethora of options. On the flip side, the future for home buyers is concerning as mortgage rates continue to increase. In addition to mortgage rates, we will see home prices climb and affordability will continue to be a touchy topic for buyers moving into 2019.

    Mortgage rates are currently at 5% and are expected to reach 5.5% in 2019. Household incomes are only growing at a rate of 3%. The monthly average mortgage payment on a typical home is expected to be 8% higher next year. A very scary stat for new homeowners, who tend to borrow the heaviest and have no equity to put down.

     3. A Dominating Generation

    Who do you think is the biggest generation group for home buyers? - Yup, you guessed it, Millennials account for nearly 45% ( compared with 37% Gen X and 17% for baby boomers). It wasn't too long ago that millennials were barely old enough to afford their own homes and now some are even moving up from their starter homes.

    As we stated above, it will be very difficult for first-time buyers. Homeowners that leveled up will reap the benefits of their home equity and the prudent decisions they made in the market.

    This leading generation of home buyers is going to have to be more price-conscious than any generation before. Mainly due to the fact that they are carrying massive student debt and want the ability to indulge in life experiences such as traveling. Money that should be put aside for a down payment or mortgage payments.

    Millennials choose experiences over material possessions and they need to maintain a certain lifestyle. But they still see the value on owning their home. 

    Due in part to heavy debt, 70% of Millennials own property that's less than 2,000 square feet. They're more likely to settle on distance from certain amenities or urban areas.

    2020 is where we anticipate the pinnacle of millennial home buying - at the age of 30. For the next decade, millennials will acquire the largest share of home buyers.

    4. Uncertainty In The New Tax Law

    At last year's forecast, the tax code was still being battled around Congress. The talks were believed to discourage home buying but nobody really knew it would impact the real-estate market.

    Well here we are... still uncertain. Most taxpayers will be filling under the new law in April 2019. Some people may have the luxury to have a tax adviser to discuss the ramifications on what to expect, but for many, the information will come in the form of a larger tax bill - or if you're lucky a hefty refund.

    Renters are the most likely to have lower tax bills and won't be pressured to buy while affordability is up in limbo.

    Those who currently own a house or want luxury market homes are going to pay a lot more with the new tax plan. Sellers of pricier homes are also going to take a hit as buyers are expecting bigger tax bills and aren't as willing to meet demands to pay a lot more for a high list price.

    As a result of the new tax law, we expect mortgages to take the biggest hit since people are less willing to take out large mortgages. Mortgage bankers have the most to lose.

     - Danielle Hale, realtor.com's chief economist 

    How the home buying process should be. 

    Your experience

    Why not sell your home with smarter marketing.

    You deserve it

    Author Photo
    About the author

    Eric Marcus

    773-732-9898
    I was born in South Bend, Indiana where my family owned and operated a small business for over 50 years. Every member of my family has been licensed to practice real estate, and my dad owns a real estate company in Indiana. After graduating with honors from Indiana University in 1991, I earned my CPA and worked for a big six accounting firm in Chicago. Combining my experience and entrepreneurial spirit, I started my own successful accounting business that I ran for 3 years. Next, I embarked on a career as a soybean trader at the Chicago Board of Trade, followed by a successful run as a stock options market maker at the Chicago Board of Options Exchange. I began my real estate career in 2003 as broker/owner of ESM Realty. My team has helped more than 600 clients buy and sell condominiums, townhouses, single family homes, multi-unit residential, and commercial properties. For 14 straight years, we were recognized by Chicago Association of Realtors as Top Producers. Our extensive marketing program includes premium placement on hundreds of websites, morechicagohomes.com and state of the art Facebook advertising. My team works tirelessly to make each client feel like they are our only client! We strive for the highest level of performance every day so that we exceed your highest expectations. Our business is 75%+ referral-based and we want you to not only be our client but our biggest raving fan. In December 2020, I brought my team to Keller Williams ONEChicago with branches in Lincoln Park, Lakeview and O'Hare. To set up a consultation or if you have any questions, please contact me at 773-732-9898.

    Similar posts like this

    Lifestyle

    Little Summer Habits That Make Home Feel Like a Retreat

    Read more

    The Secret Life of a Listing: What Happens Before You Ever Go Live

    Getting a home ready to sell is a lot like producing a reality show. Here’s your backstage pass to what we do before you...
    Read more

    You Found the One. Here’s How to Win It.

    So you’ve toured a dozen homes, scrolled through hundreds more, and finally… you found it. The one. Now comes the real c...
    Read more
    Eric Marcus Chicago Homes

    Your Real Friend in Chicago Real Estate

    Keller Williams ONEChicago

    1525 W. Belmont Avenue, Chicago, IL 60657

    Keller Williams ONEChicago

    1525 W. Belmont Avenue, Chicago, IL 60657

    773-732-9898
    [email protected]

    Footer Links

    • Meet the Team
    • Client Success Stories
    • Read Our Blog
    • Contact Us
    • Seller Services
    • Get Your Home's Value
    • Buyer Services
    • Search Homes for Sale
    Join Our Email List:

    *We respect your inbox. We only send interesting and relevant emails.

    Keller Williams ONEChicago © 2025

    Privacy Policy
    Powered by