Predicting the future of real estate is more art than science. But we do have the opinions of experts to give us a sense of where the 2019 housing market might be headed.

We hope you’ll find these real estate trends and predictions useful, especially if you’re thinking about buying a new home or refinancing your current one in 2019.

Home Prices Will Continue to Rise in 2019, but They Will Not Rise as Quickly

The housing market will go from red hot to warm in 2019, according to many experts. Home prices will rise and the number of homes for sale will continue to be limited – but both of these trends will stabilize next year compared to the recent past.

According to Aaron Terrazas, senior economist at Zillow, “[Housing] inventory is still falling on an annual basis, and home values are growing well above their historic pace. Although these trends are starting to lose their edge, it is far too soon to call it a buyers’ market."

However, it’s still possible to buy a home you love in a place you want to live. Check out our 8 Tips for Buying a Home in a Seller’s Market.

Mortgage Interest Rates Will Keep Going Up

Interest rates on home loans have been on the rise in 2018 and many experts think mortgage rates will continue to increase in 2019.

An expanding economy, low unemployment, growing wages, and the Federal Reserve Bank’s estimate of how much inflation might increase all play a role in rising mortgage rates.

Take a look at this article from CBS News which shows the median home price in each U.S. state, plus what the monthly mortgage payment would be if rates were to rise.

The good news is, there are things you can do to help influence lenders to offer you the best possible rate – such as improving your credit score and your debt-to-income ratio (DTI).

Millennials Will Keep Buying Houses in the Suburbs

We said the trend of millennials moving to the suburbs would continue in our 2018 predictions and we were right. And we think this real estate prediction will keep going in 2019 for a couple reasons:

More and more millennials are reaching the age where they are starting families. And for many young parents, a home with a lawn in the suburbs is where they see themselves raising their kids. Houses in the suburbs are often more affordable than the cities in which many millennials lived (and rented) before starting a family.

This trend is also driving a boom in many mid-sized American cities like Louisville and Pittsburgh, which have the desirable combination of urban living and home affordability. To learn more, check out this article from to learn more.

The Housing Market is Looking Good for 2019

Experts do not see the 2019 housing market going into decline. Lawrence Yun, chief economist of the National Association of Realtors, believes the rise in prices is a result of there being greater demand for houses than the market can supply. According to his statement on Forbes, he has this to say about the danger of a housing bust.

“Since the word “bubble” is on the minds of many consumers, it is worth laying out why today’s conditions are fundamentally different compared to a decade ago. Back then, lending standards were non-existent, with subprime loans everywhere. By contrast, the lending standards today are still stringent, as evidenced by the higher than normal credit scores of those who are able to obtain a mortgage. That is why mortgage default and foreclosure rates are at historic lows.”

Many experts agree with Mr. Yun, seeing rising prices and hot real estate markets as signs that the demand for housing is greater than the supply.

Still...Don’t Buy More House Than You Can Afford!

If you are thinking about buying a home – don’t buy more than your finances can handle.

To help you figure out how much you should spend, use our handy Purchase Power Calculator. This tool will look at your household income, monthly debt, down payment, mortgage interest rate, and other factors to help you choose a home purchase price that’s right for you.

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