Is 2019 a Good Time
to Buy a House?

1. Strong economy. Employment numbers and tax rates have the economy surging, and it doesn't seem like a potential housing bubble will threaten all American financials in the way we saw in 2008. Until we see signs of an economic drag, it's probably not smart to predict the housing market will take a drastic turn. However, the one economic factor that's trailing in some sectors is wage growth, and that's a problem that directly affects home supply and sales. Furthermore, you have to think about your local jobs and wages in addition to the national numbers. Right now the big picture is good. Until that changes, house prices should continue to rise.

2. Rise in construction. Since demand has remained high, it looks like construction and development is starting to pick up. In Texas, we're seeing a steady uptick in development near some of the larger cities. Since availability is a big factor in our current housing climate, more houses should help the market stay steady. Again, your location will determine supply. Some cities and suburbs are running out of buildable space, and those markets might struggle more than areas where development happens relatively quickly. Essentially, if houses are being built in your neighborhood, you have a better chance of finding something that will increase in value.

3. How much can you spend? It looks like prices are going to keep rising. While there will be some sort of correction at some point, the market will recover again and then we'll eventually see prices that dwarf the numbers we're seeing today. This cycle continues to repeat, making any property you can buy today something that will almost certainly go up in value over the course of a few decades. So, can you afford to buy a house? Don't think about the $20,000 you might save if you wait a year, and instead think about whether or not you can comfortably buy something at the going rate. If you can, I would say it's a good idea.

The market will change, Rick. I'm not sure when or how much, but it's going to happen. My advice is to worry less about what could change and focus on what you can and should do now. Good luck!

© Taylor Kovar January 4, 2019
More "Go Far With Kovar"

Disclosure: Information presented is for educational purposes only and is not an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance. To submit a question to be answered in this column, please send it via email to Question@TaylorKovar.com, or via regular mail to Lessons on Wealth, 106 E Lufkin Ave., Lufkin, TX 75901.