As we barrel through the second quarter of 2019, it’s time to stop and look at what’s happening in the housing market. May is a great time to review the year in progress because you can reflect on the predictions made at the beginning of the year and change course before it’s too late if those predictions prove false. This article will be divided into three sections: the projections, the present reality, and the future, so you can make an informed decision about whether you’re looking to buy or sell a home in 2019.
Historical Housing Market Predictions Of 2019
Experts predicted that Millennials would keep buying homes despite rising prices. Unfortunately, many young buyers chose to take on more debt to pursue the American dream of homeownership. However, jumping into homeownership without understanding the process can create serious, long-term financial challenges. Always consult financial and real estate professionals before making major decisions, especially in a cautious buyer’s market.
Rising Mortgage Rates Shaped Buyer Behavior
Analysts also expected mortgage rates to rise and reshape the housing market. A Washington Post article from January stated that higher rates would “affect everyone, driving up costs for home buyers and creating more demand for rentals.” This trend benefited rental companies but caused homeowners to worry about increasing mortgage payments and affordability.
Political and Economic Factors Affected Home Construction
The political climate played a major role in the home-building industry. High-rise apartments began appearing across urban centers, but builders faced major challenges. A combination of labor shortages, limited buildable lots, strict lending conditions, and tariffs on materials like lumber drove up construction costs. Robert Dietz, chief economist for the National Association of Home Builders, explained that these combined pressures made it harder for developers to keep up with demand.
Major Predictions for 2019
Industry experts summarized the real estate outlook for 2019 into four key expectations:
- Mortgage rates would rise.
- Home sales would slow.
- Millennials would keep buying homes.
- The home-building industry would struggle.
Looking Back at the Predictions
Now that a third of the year has passed, the data offers valuable insight into how these forecasts have played out. From interest rate fluctuations to buyer behavior, the housing market has continued to evolve—showing both resilience and volatility in equal measure.l estate professionals before making major decisions, especially in a cautious buyer’s market.
Rising Mortgage Rates Shaped Buyer Behavior
Analysts also expected mortgage rates to rise and reshape the housing market. A Washington Post article from January stated that higher rates would “affect everyone, driving up costs for home buyers and creating more demand for rentals.” This trend benefited rental companies but caused homeowners to worry about increasing mortgage payments and affordability.
Political and Economic Factors Affected Home Construction
The political climate played a major role in the home-building industry. High-rise apartments began appearing across urban centers, but builders faced major challenges. A combination of labor shortages, limited buildable lots, strict lending conditions, and tariffs on materials like lumber drove up construction costs. Robert Dietz, chief economist for the National Association of Home Builders, explained that these combined pressures made it harder for developers to keep up with demand.
Major Predictions for 2019
Industry experts summarized the real estate outlook for 2019 into four key expectations:
- Mortgage rates would rise.
- Home sales would slow.
- Millennials would keep buying homes.
- The home-building industry would struggle.
Looking Back at the Predictions
Now that a third of the year has passed, the data offers valuable insight into how these forecasts have played out. From interest rate fluctuations to buyer behavior, the housing market has continued to evolve—showing both resilience and volatility in equal measure.
The Current State Of The Market In 2019
Like nearly every prediction, unforeseen circumstances in the housing market can cause the entire foundation of your prediction to crack, sending your thoughts tumbling down on top of you. A recent article in Forbes found that interest rates have not been rising, as predicted, but rather, “interest rates have dropped every month since November 2018. Part of this is a global drop in long-term interest rates, and a secondary factor is the recent Federal Reserve policy shift, which involves both short-term rates as well as the Fed’s large portfolio of long-term securities.” This lowering in interest rate, combined with a “labor shortage that will continue to drive up wage rates, boosting total income”, will bring the market to a more stable point, meaning now is an okay time to be both a buyer and a seller.
Real Estate in Transition: A Closer Look at Selling, Buying, and Building in 2019
The 2019 housing market continued to evolve, reflecting shifts in buyer behavior, seller strategy, and home construction trends. While not as frenzied as in prior years, the market remained strong and presented key opportunities for both buyers and sellers—particularly Millennials eager to invest in their first homes.
Selling in a Cooling Yet Strong Market
According to U.S. News & World Report, “housing markets may not be as hot as previous years, but selling now could be your best bet.” Even though demand had slowed, sellers still benefited from favorable conditions. Nick Ron, CEO of Home Buyers of America, advised that “if you’re on the fence about selling this year or next, this year will be better than 2020 and 2021.”
Homeowners who had purchased during or after the recession were in an especially strong position. With historically low interest rates, their equity had risen with each mortgage payment. As a result, selling in 2019 often meant walking away with solid profits.
However, higher listing prices meant fewer offers. Rising mortgage rates and inflated home prices pushed some first-time buyers out of the market, reducing competition for listings. Sellers were encouraged to price realistically and to consider who their buyers were—often Millennials, tech-savvy and research-driven, comparing 10 to 15 properties online before deciding.
How Sellers Adapted to New Buyer Habits
Technology changed how homes were marketed and sold. Sellers learned to take advantage of digital tools, from professional photos and virtual tours to optimized online listings. In an era where buyers could explore countless properties in minutes, presentation became everything. A strong online presence often determined how quickly a property sold.
For sellers, this shift meant adapting strategies. Instead of relying on traditional marketing, successful homeowners turned to platforms that offered exposure through MLS listings, professional media, and online traffic—helping them reach motivated buyers directly.
The Buyer’s Perspective in 2019
From a buyer’s standpoint, 2019 proved challenging but not hopeless. Prices remained high, and inventory was tight. A Zillow Research study revealed that over 75% of experts didn’t expect the market to shift toward buyers until 2020 or later. In fact, 43% predicted a buyer’s market by 2020, and another 18% believed it wouldn’t arrive until 2021.
Despite higher costs, many buyers—particularly Millennials—continued to purchase homes. For them, ownership represented stability and achievement, even if it meant stretching budgets. While the immediate environment wasn’t ideal, the long-term benefits of owning property continued to outweigh short-term challenges.
The Struggles of the Home-Building Industry
While home sales persisted, the building sector faced serious setbacks. Kiplinger reported that housing starts and building permits declined in early 2019, signaling a continuing downward trend in residential construction. February data showed an 8.7% drop in housing starts and a 1.6% decline in building permits.
Builders cited multiple issues: labor shortages, higher material costs due to tariffs, and limited buildable land. Even temporary spikes in new home sales were often tied to discounts or short-lived incentives rather than genuine recovery.
What It All Meant for the Market
By mid-2019, four key predictions had largely proven true:
- Mortgage rates rose.
- Home sales slowed.
- Millennials kept buying despite debt concerns.
- The building industry struggled to keep pace.
The takeaway was clear: the market had cooled, but opportunities remained for those who acted strategically. Sellers with equity stood to profit, buyers who planned carefully could still find value, and investors continued to watch construction trends closely.
Although challenges persisted, 2019 reminded everyone that real estate—much like the economy itself—thrives on adaptability, timing, and informed decisions.
Future Projections For The 2019 Housing Market
Although we’ve seen that predictions can be wildly inaccurate in setting the stage for what’s to come in the housing market, it is important to understand what to expect the rest of the year to look like now that some of the dust from 2018 is beginning to settle. We already know that buyers are being advised to proceed with caution from now until 2021 and that sellers on the fence about letting go of their property should either pull the trigger now or wait half a decade, but what here’s what some of the experts say for anyone just entering the market as either a buyer or seller in the latter half of 2019.
2019: A Turning Point for Buyers and Sellers in the Housing Market
By mid-2019, the real estate market had entered a transitional phase. Sellers still held the upper hand, but signs of change began to appear. Market analysts and economists warned that the long-running seller’s market might soon give way to a more balanced—or even buyer-friendly—environment.
Why 2019 Was the Time to Sell
For homeowners considering selling, the message from experts was clear: now was the time. Surveys of real estate professionals suggested that nearly half expected the next economic downturn to occur in 2020. Whether or not that prediction proved accurate, most agreed that the market was unlikely to remain as favorable to sellers for much longer.
The housing market, like any market, follows cycles of growth and correction. After years of appreciation and tight inventory, experts predicted a cooling phase.
Buyer Advice: Patience Pays Off
On the buying side, the consensus was mixed but cautious. Many experts advised patience, especially for those without urgent housing needs. Waiting could lead to better prices and more inventory as the market cooled.
However, buyers who found a property that aligned with their long-term goals and budget were encouraged to move forward. With competition lower than in previous years, qualified buyers often found less pressure and more negotiating room. At the same time, wage growth and strong employment numbers offered reassurance for those planning to settle down.
Still, challenges remained. Inventory shortages persisted, particularly in the lower and mid-range segments. According to the National Association of Realtors, “more inventory is needed at the lower end and a price reduction may be needed at the upper end.” This imbalance left many first-time buyers struggling to find affordable options, while even luxury buyers balked at high asking prices.
A Market Balancing Itself
In hindsight, 2019 stood as a year of “semi-stable unsustainability.” Homes were still selling, but fewer buyers could afford them. Sellers continued to benefit from strong equity gains, but cracks in affordability began to show. Rising costs, stagnant inventory, and cautious optimism defined the year.
Conclusion
The lesson for both sides was clear: timing and preparation mattered more than ever. Sellers who moved early likely reaped the best rewards. Buyers who exercised patience—or negotiated wisely—positioned themselves for opportunities ahead.