What Can Home Buyers and Sellers Expect in 2019?
Louisiana Realtors • January 30, 2019
As quickly as 2018 ended, 2019 has arrived. And as with each new year, especially in the world of residential real estate, a lot more than just the calendar is expected to change. These expectations can mean a lot if you are planning to buy or sell a home in the coming months. So, just like you’d check the weather before making outdoor plans on the weekend, let’s look at a few things that are being forecast for the year ahead.
Mortgage Rates Will be on the Rise
While mortgage rates are still below the levels they reached during the recession, they will continue the steady climb we’ve seen over the past two years. However, rates will remain below average in spite of the strong economic environment we’re experiencing. By the end of 2019, 30-year fixed rate mortgages are expected to 5.8%
In Spite of Rising Rates, Home Sales to Millennials Will Increase
Even with mortgage rates on the rise, demand from Millennials will continue to increase. This surge will add to the growth of first-time homebuyers. 45% of home purchases are expected to be from Millennials, compared to 37% from Gen Xers, and 17% from Baby Boomers.
Inventory Will Improve
Compared to 2018 the increased demand from first-time buyers will be met by a slightly higher inventory level in 2019. The number of homes being put on the market and newly constructed homes increasing, combined with a slower pace of sales will improve inventory for home buyers.
Home Price Growth Will Slow
Another benefit for home buyers in 2019 will be a slow down in home price appreciation. This is a result of increasing inventory. Recent years have seen anywhere from a 5-10% increase in home prices. With buyers having more options, coupled with higher interest rates, price growth is expected to drop from 1-3%.
Week three of the Regular Session kept real estate issues in the conversation, even as lawmakers continued to focus heavily on workforce, tax and insurance policy. On the property tax front, measures to reshape assessments and exemptions, including proposals for a new blight rehabilitation exemption and additional relief for seniors, remain parked in the House Ways and Means Committee as stakeholders work through fiscal and local government concerns. These bills matter because they will influence long-term carrying costs, redevelopment incentives and how tax burdens are shared across residential and commercial property. Homestead related legislation, including parish level authority to increase the exemption amount, is also in the queue, signaling that the broader structure of Louisiana’s homestead system is officially on the table, not just the dollar figure. For homeowners and buyers, this debate goes directly to affordability. For local governments, it raises revenue stability and service delivery questions. There also has been movement on several identical pieces of legislation that would instruct parish assessors to develop a process for homeowners to permanently register for the homestead exemption for the duration that they own and live on the property. We are actively tracking legislation that will directly shape how investor activity and non-traditional transactions are recognized and regulated in Louisiana’s real estate market. This includes HB 468 by Troy Hebert , a key component of the Louisiana REALTORS® legislative package that targets the wholesale of residential real estate, which was heard in the House Commerce Committee on Monday. The bill is currently positioned for a floor vote early next week. As drafted, HB 468 represents a major step in the right direction for consumer protection in Louisiana, advancing needed guardrails through potential disclosure, registration, and practice standards that could redefine how assignment contracts and “off-market” transactions intersect with licensed brokerage activity. In parallel, HB 292 by Delisha Boyd passed the House on final reading, 86-3, and is on its way to the Senate. Together, these measures represent a coordinated policy effort to bring greater structure and transparency to emerging transaction models, while preserving the integrity of the traditional brokerage framework. Finally, the broader policy backdrop remains important: the Governor continues to push income tax changes and cost of living relief, while business and industry groups are prioritizing insurance, workforce and energy — each a key driver of long run housing demand and investment. As these debates evolve, we’ll keep you updated on what moves, what stalls and what it all means for your clients, your pipeline and private property rights across Louisiana. Please view the weekly bill tracking report provided by our lobbying team over at Harris, DeVille and Associates.
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NAR is pleased to share the latest consumer guide that explains the concept of home staging, offers DIY staging tips and missteps and shares the latest NAR member sentiment on how staging can help buyers better visualize the property as their future home and potentially net sellers a higher price. As a reminder, all guides in this series are available for download—in both English and Spanish—on facts.realtor . Please allow up to two weeks for the Spanish version of the latest resource to be translated and uploaded. For ease of reference, below is a list of the most recent guides: NEW: Staging Your House for a Sale Spotting Deepfake Scams in Real Estate Are You Ready to Invest in Real Estate? Thinking of Selling? 7 Factors to Consider How to Make Your Home More Energy Efficient Thank you for your continued engagement with the “Consumer Guide” series and for sharing the resources with prospective clients to ensure they have the information they need to find success in their home buying or selling journey. Remember that these guides are for informational purposes only and are not meant to enact or change any existing NAR policy. Be on the lookout for the next consumer guide, which discusses home mortgage options that allow buyers to fold in renovation costs.
