The world of real estate is ever-evolving, and nowhere is this truer than in Southern California. The hotter the market, the more flux you can expect to see. Still, professionals can make predictions about the market with quite a bit of accuracy. So, what are the trends they are expecting to see in 2019?
1. Significant Transformation Ahead
This trend is relatively vague but is meant to capture the many smaller ways in which people expect the real estate market to change in 2019. Many factors are converging together to create a transformative year. Some of the most important factors are:
- Rising interest rates, making it harder to finance home purchases
- Stabilizing home prices, stopping the steady growth observed for the better part of this decade
- The introduction of self-driving cars, making more people open to longer commutes
- Changing demographics; for example more Millennials are purchasing homes
- Greater interest in home automation, driving the desire for "connected homes"
As all of these factors come together, it gives a bit of uncertainty to the market. Is that uncertainty enough to avoid buying or selling in 2019? Not at all. In fact, it may mean that 2019 is the perfect time to purchase or sell your home.
2. Suburban Living Gets Hot
Millennials are growing up, and as a result, what they look for in the housing market is changing. For years, young adults have been focused on downtown areas, leading to their revitalization and leaving the suburbs in the dust. Now, younger buyers are focusing on purchasing single-family homes over urban lofts, and that is driving an exodus of sorts to the suburbs. However, younger buyers are not exactly willing to give up everything they love about urban locations. Walkability, public transit, and arts and entertainment are still must-haves. So, that means that while suburbs are hot, traditional subdivisions are less so.
3. Remote Work Makes an Impact
Changes in employment are fueling changes in the real estate market. As more and more people opt for remote work, self-employment, and home businesses, they require homes that are conducive to their work. Home offices, loft spaces, workshops, and other spaces are in high demand. Another way remote work is impacting real estate is an increased interest in experience-based architecture. Because remote workers spend significant time in a single space, they are looking for environments that are unique, dynamic, and help them feel like they are getting more out of their day than they would in an average home. In other words, the advice that you should ensure that your home is not too unique to sell might not entirely hold true anymore.
4. Home Prices Level Off
If you are looking to buy, this is excellent news. Also, if you're looking to sell, this isn’t exactly bad news—home prices are not forecasted to drop slightly in the first half of 2019. The market favors sellers and has for many years, but in 2019, it is expected to shift to buyers. Can sellers still fetch a higher price? Yes, but it might require more effort. Selling as-is may be tougher, so expect to make some upgrades. However, given the long-term forecast is favoring buyers, if you are planning to sell in the next few years, you might want to consider moving up that timeline to sell in 2019.
5. Affordability Drives Location
Buyers are still willing to drop a pretty penny on the right piece of real estate. However, they are focusing more on cost of living. Here in Southern California, the cost of living is high overall, but certain cities are more affordable than others, as such, homes in these areas will still see a lot of competition. Sellers can capitalize on this by playing up the affordable aspects of their community when listing their home or offering tours. Even in areas where the cost of living is not very low, sellers can still emphasize certain things to draw buyers in more effectively. In essence, be prepared to transition from emphasizing luxury to playing up how your incredible home can still work for someone factoring in great public schools, commute costs, and lifestyle activity expenses into their overall cost of living.
Consult With Laura Dandoy
Laura Dandoy knows what to expect from Southern California real estate in 2019, especially for Claremont, La Verne, Upland, Rancho Cucamonga, San Dimas, and other nearby cities. With over 29 years of experience, she knows how to navigate the market to benefit both buyers and sellers. If you are ready to sell your home or purchase one, contact her at 909-398-1166 today.