The future of the home buying market – especially in St. Louis – looks bright for 2019. There are homes on the market at all price points, buyers are purchasing, and inventory is short. To help you with your home buying experience, we’ve put together some key real estate trends, so you know what to expect if you are shopping for your perfect home this year.

Most Home Buyers are Millennials

2019 is the year of millennial buyers. They’ve aged in their careers and have more purchasing power to buy homes. This has allowed them to take over as the primary demographic in the house buying market. But millennials aren’t the only one’s home shopping. To a smaller extent Baby Boomers and Gen X’s are also in the market.

Quick tips for home buyers:

  • Expect to have competition for the suburban three-bedroom home.
  • Make a list of absolute must-haves to use as a foundation for a more targeted home search that will save time.
  • Reach out to the home seller with a personal letter if there’s a bidding war. Let them know how much you love their house and why you want it.

Homes that offer energy efficiency and technology upgrades (think automation) are current trends that hold appeal. Interior space, larger bathrooms, home upgrades, and open floor plans are also important preferences that cross generational lines.

Slowly Rising Home Prices

House prices are rising, but the pace is slower rate than that of the 2017 and 2018 markets. This increase is attributed mostly to higher mortgage interest rates and economic uncertainty. If you’re home hunting, budgeting is crucial with rising house prices. Make sure you know the absolute maximum you can spend, and don’t go over this.

Quick tips for home buyers:

  • Find out how much home you can afford by getting preapproved.
  • Sacrifice some of your must-haves and plan to make future upgrades to a less expensive home in the best location.
  • Expand your search to areas with lower demand to get more for your money.

Rising Mortgage Interest Rates

Even though they are still relatively low, interest rates are going up after being at a standstill for the last seven years. This isn’t bad news because it means that people are willing to borrow and spend. However, it does mean that the increase in rates will affect the monthly mortgage amount you will have to pay.

Quick tips for home buyers:

  • Save for a down payment and closing costs.
  • Try to make a minimum 10% down payment with a 15-year fixed-rate mortgage.
  • If you can afford to, pay cash for your new home.

Takeaway? Take Control of Trends With an Expert Real Estate Agent

If you’re looking for the perfect home, it’s important to find the right realtor to navigate the market. The Sarah Bernard Real Estate team is on top of all the real estate trends and has years of experience helping buyers through every step of the purchasing process.

We want nothing but the best for you and prioritize client satisfaction above all else, providing a unique experience tailored to you. Contact us today at (phone number).