Even with home prices and mortgage rates on the rise this year, dreams of owning a home are still alive and well. The only things that have changed, according to a new report, are the ideal locations.
New data from Realtor.com’s 2019 top 10 markets reportOpens a New Window. found that certain cities throughout the country are getting a record number of mortgage applications from millennials. Additionally, the markets are becoming a hotbed for job growth and new construction.
“These markets are millennial magnets with bustling economies, affordable housing for today’s standards, and an overall high quality of life,” Danielle Hale, chief economist at Realtor.com, said.
This year’s top markets include Lakeland, Florida, Grand Rapids, Michigan, El Paso, Texas, and Chattanooga, Tennessee.
Sellers believing they can get their top price and sell very quickly will be surprised when those offers don’t come pouring in. Days on Market will likely increase. If sellers want to move their homes quickly, they need to make sure it’s priced to sell so it won’t languish on the market. Consider there are still good profits to be made, only not the huge windfalls we’ve been seeing. “Sellers were in a dream market in several ways and that is changing,” Hale observes.
It’s no surprise, Millennials are making up the key share of buyers as their income increases and as they start and grow their families. Realtor.com expects, Millennials will account for 45% of mortgages with 37% going to Gen Xers and 17% to baby boomers in 2019.
In April when tax time rolls around, the housing market will see how President Trumps revampes tax plan impacts homeowners and renters. Look for a saner 2019 housing market, where affordability continues to play a key role.