Volusia residents and visitors are wondering what to expect for the 2019 real estate market. For 2018, the market started with high home prices, historically low mortgage rates and a seller’s market. Has turnover in the housing market peaked? National housing experts predict price gains can only decelerate.
The New Smyrna Beach Board of REALTORS Residential Market Statistics reports closed sales moving positively throughout the year with September, October and November as outstanding months for percent year-over-year. Undecided buyers are making moves in order to keep their interest rate under five percent. The 30-year mortgage rate breached five percent last month, the first since 2010, and is forecast in the latest national poll by Reuters to stay above that level over the next three years.
Volusia’s housing inventory remains competitive. Coastal communities like New Smyrna Beach, Port Orange and Edgewater are observing mainland prices slowly averaging out. Properties in desirable locations with updated features and walkable neighborhoods are still outstanding in the inventory and can market higher price points compared to last year. In some cases, properties are receiving multiple offers.
Some inventory in the coastal areas are for investment purposes. The New Smyrna Beach Visitor’s Bureau wrapped up summer season in September. The city of New Smyrna Beach published that the Tourist Tax Collection numbers came in at $108,849 that month, up over nine percent compared to this time last year.
According to Forbes.com, surging demand in 2019 will come from millennials. In a published release, Danielle Hale, chief economist for Realtor.com, stated, “While first-time buyers will struggle next year, older millennial move-up buyers will have more options in the mid-to upper-tier price point and will make up the majority of millennials who close in 2019.”
In summary for 2019, mortgage rates will continue to rise, millennials will keep buying homes, there will be a slight decline in nationwide home sales and home price growth will continue to slow. Incomes will have an opportunity to catch up due to slow price appreciation. With slower sales, inventory has an opportunity to normalize. In most expert opinions, a slowdown in 2019 creates a healthier housing market going forward.
Top technologies that are predicted to be adopted in the 2019 real estate industry include secure collaboration and communication portals between all parties to the real estate transaction and remote online notarization and eClosings. Blockchain technology and cryptocurrency-funded closings were predicted of little or no influence in the new year.