No one can predict what will happen in the housing market for 2019. If you have some money, then you can jump into the real estate market game with a more educated guess. The upcoming trends for Memphis, Tennessee tend to go at a slower pace. This is marked by the job market and how static local economies are faring. So far, the real estate trends for Memphis, Tennessee in 2019 are looking up.
In the past, people have not been able to actually afford the house they live in. People want a house, but really cannot afford to be in it. Financial experts share advice that a household should not spend more than 30% of their income on housing. For some areas, people simply cannot afford this based on their professions and what they are being paid.
Over the past decade, the housing market has been an up and down chart and it is now climbing back up again. It is only uncertain due to it not staying in one place. This unsteadiness makes for first time home buyers to not be courageous in making the plunge to becoming a homeowner. Add student debt to the equation and you will have even fewer home buyers ready to step into the arena of home buying. From here, they will become long term renters due to necessity. Memphis, along with many other cities in the United States, have experienced this uncertainty. Despite the unpredictable financial conditions, one can take comfort in the fact that the affordability factor is indeed improving.
Sales and Prices
The lows of overall home sales are slowly making their way up in Memphis, Tennessee. Sales of homes are going to go up due to how households have grown. People are going to need somewhere to live.
Depending on the area in which you live will almost always have a price range that varies. Collectively the price of homes has gone up. Just a short time ago the old trend used to be that when the economy was stable, it was obvious that the market moved up in unison. Nowadays, this has changed with micro-neighborhoods. These micro-neighborhoods can go up or down independent of each other. There is more of this type of fluctuation to come. Zip codes and neighborhoods will vary and these changes are definitely something to look for in many cities across the nation, and not just a broad sweeping of the whole state of Tennessee. If you're going to jump into the real estate game, you will want to be certain of this nuance and find out why homes are selling better on one block than they are on another.
Mortgage Rates Going Up
The Federal side has made it very clear that the rates will continue to go up. This cannot be avoided. This inevitable fact leaves many people concerned if whether or not they will be able to make monthly mortgage payments. As this happens, current homeowners may also not want to refinance. This potentially could leave them priced out and not able to buy back their own home.
Taxes Are Coming
When it's tax time, we all rely on someone else to complete our taxes - an accountant or even a software. Understanding any new tax plans are important. It's a challenge to say it's the same for everyone, as each person's financial situation is unique. Homeowners of the higher end homes, those that have mortgages that range between $750,000 and $1 million, will not be able to deduct as much of their mortgage interest as they were before the new tax law.
It's All Mental
The consumer and what is being thought will have a big effect too. As per “Fannie Mae's 2017 Year End Home Purchase Sentiment Index”, consumers are not feeling as confident anymore. Pair this with a new law that affects mortgages and home buying in Memphis appears to become a little more uncertain.
We all need a place to live, but that does not make the housing market recession proof. Consumers and investors need to arm themselves with more information and stay abreast of the laws and trends. This information will arm them with knowing if the home they are buying will retain its value or grow more in the future.