Here’s my thoughts about what’s happening with the real estate market, some things to watch out for, and my personal opinion of what I think is going to be happening with Real Estate in 2019. Add me on Snapchat/Instagram: GPStephan
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Get $50 off for a LIMITED TIME with code ThankYou50 - The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $125 million in sales: https://goo.gl/UFpi4c
Here what effects prices:
Lets start with interest rates…because I guarantee this is going to be a hot topic in 2019, and this pretty much has a ripple effect across the economy. My prediction for 2019 is that the FED is going to be VERY strategic with their rate increases…they see the immediate impact a rate increase has on the stock market, and any HUGE rate hike would be detrimental to the economy. Because of that, I think we’ll see rates increase about half a point in 2019.
Next, lets talk about supply and demand - and with that, we’ll talk about excess inventory because the two are directly correlated. I’m personally seeing a LOT of excess inventory coming from new constructions and investors who started their projects 6-18 months, and are just now coming to the market as they finish completion. Because these properties NEED to sell, oftentimes because the owners take out short term loans to save money on interest, they’ll be priced fairly aggressively to get them off the books.
In terms of price appreciation, much of this will be very location-dependent. I think we’ll see some markets do considerably well, for instance around the Amazon HQ2 locations. Overall, I’m going to say real estate prices are likely to increase about 3-4% in 2019…basically just inflation, plus an extra 1-2% on top of that.
And one last thing, is that we’ve definitely seen some stock market turmoil lately…this does INDIRECTLY effect the price of real estate, as investors have less money to invest when they lose money in stocks. I personally think 2019 won’t be a stellar year for stocks, and I’d expect things to continue to stay relatively flat.
Now at the end of the day…all of this considered, long term, this really won’t make any difference. 30 years from now, you’re not going to be worried about whether or not you should’ve bought a year later or a year sooner…it won’t make a difference. And as an investment property, when people don’t buy, they rent…and this means rentals do well in a “bad” economy. When we’re in a great economy and people are buying, housing prices go up and you’ve “made equity.” Either way, long term investment property wins.
So to sum things up:
In 2019, I predict we’re going to see interest rates between 5.4-5.5%
I predict we’ll continue to see excess inventory coming on the market
I predict it’ll take sellers LONGER to sell their property
I predict that overall, we’ll see about a 3-4% appreciation on prices
I predict stocks will have a relatively flat year, again
…and I predict that you’ll smash that like button.
For business inquiries or paid one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at GrahamStephanBusiness @gmail.com
Suggested reading:
The Millionaire Real Estate Agent: http://goo.gl/TPTSVC
Your money or your life: https://goo.gl/fmlaJR
The Millionaire Real Estate Investor: https://goo.gl/sV9xtl
How to Win Friends and Influence People: https://goo.gl/1f3Meq
Think and grow rich: https://goo.gl/SSKlyu
Awaken the giant within: https://goo.gl/niIAEI
The Book on Rental Property Investing: https://goo.gl/qtJqFq
Join the private Real Estate Facebook Group:
https://www.facebook.com/groups/therealestatemillionairemastermind/
Get $50 off for a LIMITED TIME with code ThankYou50 - The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $125 million in sales: https://goo.gl/UFpi4c
Here what effects prices:
Lets start with interest rates…because I guarantee this is going to be a hot topic in 2019, and this pretty much has a ripple effect across the economy. My prediction for 2019 is that the FED is going to be VERY strategic with their rate increases…they see the immediate impact a rate increase has on the stock market, and any HUGE rate hike would be detrimental to the economy. Because of that, I think we’ll see rates increase about half a point in 2019.
Next, lets talk about supply and demand - and with that, we’ll talk about excess inventory because the two are directly correlated. I’m personally seeing a LOT of excess inventory coming from new constructions and investors who started their projects 6-18 months, and are just now coming to the market as they finish completion. Because these properties NEED to sell, oftentimes because the owners take out short term loans to save money on interest, they’ll be priced fairly aggressively to get them off the books.
In terms of price appreciation, much of this will be very location-dependent. I think we’ll see some markets do considerably well, for instance around the Amazon HQ2 locations. Overall, I’m going to say real estate prices are likely to increase about 3-4% in 2019…basically just inflation, plus an extra 1-2% on top of that.
And one last thing, is that we’ve definitely seen some stock market turmoil lately…this does INDIRECTLY effect the price of real estate, as investors have less money to invest when they lose money in stocks. I personally think 2019 won’t be a stellar year for stocks, and I’d expect things to continue to stay relatively flat.
Now at the end of the day…all of this considered, long term, this really won’t make any difference. 30 years from now, you’re not going to be worried about whether or not you should’ve bought a year later or a year sooner…it won’t make a difference. And as an investment property, when people don’t buy, they rent…and this means rentals do well in a “bad” economy. When we’re in a great economy and people are buying, housing prices go up and you’ve “made equity.” Either way, long term investment property wins.
So to sum things up:
In 2019, I predict we’re going to see interest rates between 5.4-5.5%
I predict we’ll continue to see excess inventory coming on the market
I predict it’ll take sellers LONGER to sell their property
I predict that overall, we’ll see about a 3-4% appreciation on prices
I predict stocks will have a relatively flat year, again
…and I predict that you’ll smash that like button.
For business inquiries or paid one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at GrahamStephanBusiness @gmail.com
Suggested reading:
The Millionaire Real Estate Agent: http://goo.gl/TPTSVC
Your money or your life: https://goo.gl/fmlaJR
The Millionaire Real Estate Investor: https://goo.gl/sV9xtl
How to Win Friends and Influence People: https://goo.gl/1f3Meq
Think and grow rich: https://goo.gl/SSKlyu
Awaken the giant within: https://goo.gl/niIAEI
The Book on Rental Property Investing: https://goo.gl/qtJqFq
5% that’s super high now.
The IRS should audit your taxes.
Do a vid like this for 2020
Funny watching because I am in the process of refinancing to 3.375% at this moment. Still love you Graham.
Guess you were wrong on this prediction 🙂 Trump effect?
I also stop the microwave just before it hits 0
Hey Graham, looks like you had predicted the bitcoin crash to 3500. World ending hypothesis that did happen haha
so what is the rate today ?
Awesome. Ty
Wrong! rates are dropping!
Really looking forward to that update/review vid! ☺
well its near end of 2019 and you were dead WRONG. Fed lowered rates all 2019. just goes to show, even so called 'experts' have no idea about anything in this corrupt bubble economy.
Dude you need a podcast.
Update – imortgage rates have declined one point since January.
Where do you go for all your market info??? Graham
The condos they’re building In long Island City look really nice, right next to the water, that dusty New York water.
its all speculation my dear Watson
Prediction: 1 million subs by 2019
This video didn't age well lol🤣 interest rates going to 0 and below
Not even banks anticipated the rate cuts sooooo I dont blame you
Planning on doing the same thing I did in 2006, wait for the foreclosures…and buy! ROI has been awesome on them and bought em CHEAP!!!
I’m convinced this guy is a killing people and burying them under his garage
You are a very smart guy! Love your videos!
#1 remember when investing in RE is to buy the property for Cash Flow. That way, regardless if market decreases, you can still rent the property out and make additional cash flow. Regardless if home value decreases. #2 Buy a home in an area that WONT be affected when people lose their jobs. Such as Blue Collar workers. (nurses, construction, etc.) People will always need a place to live. 2-3 bedroom, 1-2 bath,
Well, it looks like your interest rates prediction was completely wrong, lol.