| Hi Taylor
- Where's the housing market headed? My wife and I are on the fence
about buying in 2019, mostly because we're nervous about buying right
before a big price drop. Any insight? - Rick
Hi Rick - I have insight, but I do not have a crystal ball.
I'm happy to give you some of my personal thoughts based on the information
available, but I have to ask that you refrain from telling everyone
that Taylor Kovar thinks he knows exactly where the real estate market
is headed and when. If that were true, I'd be a multibillionaire.
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
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.
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!
Kovar January 4, 2019
More "Go Far With Kovar"
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