2019 Real Estate Market Forecast

Dated: January 19 2019

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Every January, we hear predictions on how the real estate market will shake out. Will rates go up? Will inventory materialize?

This article gives a great snapshot of what real estate experts are forecasting for this year's market. The bottom line is that most think it will be an average or moderate year in terms of price growth. Homes will appreciate approximately in the 1 to 3 percent range, some experts think. If the months of inventory increase to the 4 to 8 month range, we would be entering a balanced market

In the Metro Milwaukee market, we have seen over 21,000 homes sell three years consecutively in 2016, 2017, and 2018. Before this stretch, the Greater Milwaukee Area has only been over 21,000 units sold one other time this century (2005).

So, is it a good time to buy?

While rates are higher than they were two years ago, they are still lower than the 150-year average. Plus, the average homeowner has a net worth 45 times of the average tenant.

Is it still a good time to sell?

Yes, but buyer demand is waning, and price appreciation is beginning to taper off. That might mean this spring is the last time to cash in on a voracious seller’s market. If rates continue to rise incrementally, fewer and fewer buyers will be able to afford homes, bumping all buyers down in buying power on their preapprovals.

For homes over $450,000, we are seeing a buyer’s market set in, so make sure you have a plan of attack to out-market the other homes for sale, because buyers have options at that price point.

I hope you enjoyed my post on the 2019 Real Estate Market Forecast. If you or someone you know is looking to buy or sell real estate in 2019, please reach out to me!

Blog author image

Zach Hicks

I've been a resident of the Greater Milwaukee Area my entire life. Real estate has given me the privilege of working with my neighbors and friends--aiding them in purchasing or selling their homes. Of....

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