2019 is barely a month old, but is already giving way to the year’s emerging real estate trends. For anyone in the market for a new home, this year’s market will continue to bring similar concerns as last year. Buyers and sellers alike need aware of these real estate trends to watch for in 2019.

Expect a Shift in the Real Estate Market

2019 looks like it is going to be an interesting year in real estate. It is already shaping up to once again remain a sellers market. Home prices and mortgage rates are once again expected to rise, a blow for affordability. New home construction is going to continue to rise and first time home buyers will be king.

1. More Relaxed Lending Standards--during the housing crisis of 2008, mortgage lenders tightened their standards, making it harder to qualify for a loan. This meant fewer people were buying homes. Lenders got the point, and have slightly loosened their strict standards in favor of more relaxed ones.

1. Slowing Rise of Home Prices--home prices are not going down, but they are increasing at a lower rate. This will help to combat rising mortgage interest rates.

1. High Tech Building Becoming More Popular--buyers are looking for smart homes and a variety of technologically-advanced amenities like energy-saving appliances. New home construction will continue to stay ahead of this tend, offering new amenities to maker buyer’s lives easier

1. Reduced Home Size--the days of the McMansion are coming to an end as buyers are looking to downsize. Affordability remains a concern. More and more buyers are staying in the area of $300,000 and buyers are working around this, creating smaller spaces for new buyers.

1. Shift From Owning to Renting--rents are continuing to rise, which is a concern for many. However, baby boomers are moving out of larger metro areas into smaller cities, selling their homes and turning to the convenience of renting. This is causing a shift in the number of renters available, pushing market pricing.

1. Mortgage Rates Continuing to Rise--from the beginning of 2018 to mid-December, 30-year fixed mortgage rates went up a little less than three-quarters of a percentage point, to around 4.75%. Forecasters expect mortgage rates to rise again in 2019 — but at a slower pace.

1. More Homes For Sale--the market will continue to favor sellers, meaning that the number of homes for sale will continue to rise, as it has for the past 6 years. Demand for new homes is expected to once again exceed supply in 2019.

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