A New Home Under Construction in Naples, Florida by Nova Homes of South Florida
Moving on with the real estate market trends to come in 2019, let’s look at home prices. According to Zillow, the median home price in the US rose by 8.1% over the past year. Given the current (imbalanced) supply and demand situation, it appears that this ongoing trend of rising home prices will continue in most US cities throughout 2019. In a forecast issued in July, Zillow predicted that prices will rise by 6.5% in the upcoming 12 months.
Increasing home prices will, of course, vary by region. Some cities across the US real estate market might experience a large jump in home prices, while others could see relatively small gains. It all falls back to the supply of properties and demand of homebuyers in the city. Cities with stronger demand, like New York, Miami, Los Angeles, Seattle, Houston, and San Francisco will obviously see the biggest gains. This is good news for sellers, but it presents a problem for homebuyers – especially millennials – who can’t afford such high prices.
For a real estate investor already owning an investment property in one of these cities, putting the property on the market for rent is a smart investment decision. When home prices climb up, so will rental rates because people settle for renting when they can’t afford to buy a house. Thus, with a rental property, you could make a pretty attractive rental income in 2019!
For information about Nova Homes of South Florida and the Southwest Florida real estate market, contact Nick Cornwell at 239.776.5076 or BuildNow@NovaHomesBuilder.com. Homes are priced from the $200s.