Realtor.com® releases 2019 housing predictions

Both mortgage rates and home prices will be higher in 2019, predicts realtor.com® chief economist Danielle Hale.

In realtor.com’s® 2019 National Housing Forecast, Hale said that while inventory levels will remain low, there will be small increases of up to 7 percent. However, most of that additional inventory will be higher-end, upscale properties. But more housing should be coming, as single-family housing starts are expected to increase 8 percent in the new year.

Mortgage rates are expected to reach 5.5 percent by the end of the year, and monthly mortgage rates could hit 8 percent, according to the forecast. Millennials will be responsible for 45 percent of mortgages, compared to 37 percent of Generation X and 17 percent of baby boomers. Existing home sales are expected to drop by 2 percent compared to this year.

“Buying a home will be an even more expensive undertaking in 2019 as mortgage rates and home prices increase. Buyers who are able to stay in the market will find less competition as more buyers are priced out, but feel an increased sense of urgency to close before it gets even more expensive,” Hale said in the report.

Several Pennsylvania metros are expected to see increases in both prices and sales.

The Allentown-Bethlehem-Easton metro is predicted to see 4.6 percent sales growth in 2019 and a decline of price by 0.9 percent, while the Harrisburg-Carlisle area is expected to see a decrease of sales by 1.4 percent and an increase of cost by 4.3 percent. In the Philadelphia area, sales are expected to decrease 1.6 percent, while prices will increase 0.2 percent. Pittsburgh will see growth in sales by 3.8 percent and price by 2.6 percent. The Scranton–Wilkes-Barre–Hazleton area will see a growth in sales to 3.9 percent, while prices will go up 2 percent.