Once Hot Housing Market Likely to Cool Further in 2019

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In 2018, the housing market slowed despite a strengthening economy, unemployment falling to near a 50-year low, and a stock market that until recently hovered near all-time highs

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Leading edge construction companies are responding to these challenges with new ways of building, new materials and new technologies.

There is now a window of opportunity to use new construction materials and new technologies, to make a significant change in the construction industry. The housing industry is strongly supported by government policy initiatives meant to stimulate the new houses market.

However, if supply continues to lag after demand, home prices could outpace income and house building could fail to reach its potential. The reduced level of U.S. housing supply is a hard challenge the housing market is facing throughout 2018.

On the labor side, the U.S. construction industry is suffering from a lack of skilled workers, with young people leaving rural areas to live in big cities, and it takes time to build more houses, in view of a growing demand.

Home building costs encompass land cost and regulations. And in shining cities like San Francisco and Los Angeles the land can cost up to 70% of the cost of building a home. Regulatory costs increased 29% between 2011 and 2016, the National Association of Home Builders reveals.

Two of the reasons of slow housing production are development costs and lack of skilled workers.

Millennials make up the key share of house buyers. Their income increases and they also start and grow their families. They will account for most of housing mortgages. They are looking for affordable housing and this will make the housing market starting from 2019 healthier.

This will ultimately decrease prices in trendy cities like San Francisco and San Jose which will enjoy investment housing opportunities as anywhere, no more or less.

With continuing job growth, and a shift to real estate development, new construction developers and small innovative builders could find room for profit if they get property owners to sell their land.

In San Francisco and Silicon Valley people had to pay whatever prices the market demanded. But with the development of new technologies and new technology players on the horizon, there is really no need to be in Silicon Valley in order to succeed.

Bringing back American jobs, lowering immigration, developing the American technology sector are key drivers of affordability which will add new jobs and will be propelling the employment market and the economy forward.

Jobs and work opportunities returning to America from overseas are a most optimistic factor in the U.S. economy. Momentum grows in the housing market as Millennials in particular find themselves with lasting jobs, high paying careers and work.

The United States economy is predicted to grow 3 to 5% and with employment strong and salaries rising, we will see more Americans buying a home.

On the demand side, increase is driven by economical development, leading to more buyers with increased incomes and having stronger purchasing capacity too.

Supply side constraints including regulations and rising costs of housing construction have contributed to the home prices run-up.

Unlike the 2008-09 housing bubble caused by reckless lending standards of financial institutions, this time home prices increase in many parts of the country have been driven by a systematic imbalance between supply and demand.

In 2019, the market is expected to re-establish equilibrium.

The United States economy has performed well in the last years, and the housing market is an important part of it. More and more people are looking forward to become homeowners.

Real estate industry professionals establish promising forecasts for the housing market in the coming years.

'If new home sales are to resume growth in 2019, builders may have to shift their focus to more modestly priced homes and smaller sized homes to help offset housing affordability concerns,' said Sam Khater, chief economist of Freddie Mac.

In the last forecast estimation, Freddie Mac appreciates that home sales will regain momentum and rise 1% in 2019 and 2% in 2020.

'The U.S. Housing market could see a moderate growth in 2019' according to Freddie Mac.

What goes up, must turn into a bubble and burst. We all knew this, it was just the ignorant who decided to ignore facts. TrumpsBubble StocksCrash HousingFails YouWereWarned by the FakeNews media. Too bad you believed Trump and not the facts.

Just like the stock market, homes are overpriced.

Inaccurate and misleading 'News' from the Peddlers of Derivatives Branding and Marketing of Derivatives like News Products to the gullible and the uninformed. The American Real Estate has been heading down for months now. Nothing recent..

There was overbuilding due to cheap money....trees don't grow to the sky...

These track homes look the same wherever you go in the states.

Home buyers did the math and said “whoa that’s kind of pricey!!”

ThanksObama

It will be interesting to see if select markets proof to be exempt of this national trend. Thinking SF, SanJose, NYC, Austin.

Millennials

Hand it to the Fed that no one can afford Motgages anymore and your 401k is depleted. Thanks to the geniuses at the Fed. Another INCOMPETENT government entity. Re-haul needed.

And you were against Trump being President

That’s what happens when rates rise rapidly.

Thank You Federal Reserve Chairman for screwing up the Markets!

Can't wait to see what happens when homes don't turn into investments like everyone hopes

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Will Santa deliver a stock market rally or pile of coal during worse December since 1931?The 'Santa Claus Rally,' the typical year-end stock surge, may not deliver in 2018. Too many worries persist on Wall Street. May not? Who writes this huh merry christmas
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