The year 2018 for housing market had its peaks and valleys, with the year starting off with high home prices and history of low mortgage rates giving sellers an upper hand. On the latter part of the year, though, prices faltered with mortgage rates soaring with buyer’s getting more from the market. For the year 2019, home price appreciation will not be significant, slowing to only 3% as the increasing inventory is enough to sustain the demand for the coming year. What are the big property buying opportunities for 2019? Read on below:
As interest rates continue to rise this year, the market is cooling down in 2019. However, some markets will remain hot allowing investors to take advantage of big buying opportunities for 2019 through 2020.
When it comes to investing in the US, property investors should consider putting their money in emerging markets such as assisted living, warehouses, and co-working spaces as these are the real estate of the future.
Assisted living homes will continue to be in demand because of the large number of baby boomers approaching retirement age.
With online shopping on the rise, the need for space to keep their stocks both locally and internationally are also growing. There is also the constant demand for traditional warehousing for service trades such as plumbing, electrical, and HVAC.
Technological advancements fuel the need for a modern office that provides a space for people who work on the go. Up and coming enterprises now recognise that maintaining a physical office is an unnecessary cost. Investing in shared spaces is a growing trend and is a huge buying opportunity for 2019 through 2020.
Property Buying Opportunities for 2019
In a report released by Tranio, an online real estate agency. Property buying opportunities for 2019 are huge in Greece, Cyprus, Germany, and Malta.
As the economy is starting to recover, private real estate investment from foreign investors in the country is at an all-time high. Foreigners purchase property in Greece in exchange for citizenship or the Golden Visa, a programme that awards a residence permit for real estate buyers above €250,000. Locals cannot afford to buy real estate even if sold at below their market value. Most property investors in the country are foreigners, mostly Chinese.
Cyprus and Malta
These countries are also popular for international real estate buyers because of their citizenship programmes. Golden Visa programmes encourage property investors to buy into the country to qualify for citizenship.
The country remains a top investment hub for its economic stability, reasonable financing, population growth, and safe investment process.
Whilst these properties are hot, investors should still be wary of growing interest rates as this can cause some real estate markets to lose their momentum. Experienced home buyers will see less competition as the number of homes increase this year. However, most of these properties focus heavily in the mid to high-end price points, which can scare off first-time property investors.
All in all, the property market for 2019 will slow down but this should not be seen as a bad thing. Slower sales mean a great opportunity for the inventory to normalise and a good opportunity for income to catch up. This slowdown in 2019 can fuel property buying come 2020.