What Is On The Road Ahead For Real Estate In 2019?

Happy New Year!

I hope everyone had a great holiday season and is looking forward to 2019.  The beginning of a new year provides us with the opportunity to look at where real estate is going.  Real estate continued to do well for many of us investors in 2018, but not without some challenges.  Will we see the same in 2019?  What is on the road ahead for real estate in 2019? Here are some thoughts.

Real Estate Investing Will Continue To Become More Concentrated and Centralized

The real estate investing industry is becoming more and more concentrated and centralized.  Websites such as Zillow and Roofstock along with turnkey investment companies in many major cities and hedgefunds are redefining the business and bringing new resources to the industry.  These factors will make it more difficult and perhaps more expensive for smaller and beginning investors to get into the business.  It will be harder to find deals with expanded resources chasing them.  Finding and keeping good help will be more difficult as demand for their services grow.  It will also be more difficult to “go it alone” as everyone utilizes the new services this competition will bring.  These changes will require us smaller “mom and pop” operations to develop new strategies if we wish to remain competitive and grow.

Anti-Landlord and Anti-Investor Sentiment Will Continue To Rise

Anti-landlord and anti-investor sentiments will continue to rise and develop.  These sentiments could be especially forceful if real estate prices and rents continue to rise.   Plus a swing to the left is possible as a reaction to the current state of the country.  There will be misguided calls for rent controls, landlord registrations and other acts that will make our lives and the ability to conduct and enter the business more difficult.

Now Is A Great Time To Sell Real Estate

Perhaps in part because of these potential challenges and difficulties I describe above, now is the time to sell your real estate if you wish to do so.  Buyers have the money to buy and inventory seems to have been declining.  In many areas sellers can almost name their price as there are so many buyers chasing whatever becomes available on the market.  This situation will not last.  In fact, it may start to disappear sometime during 2019.  Will there be as hard of a fall as there was in 2008?  It is hard to say.   But if you do not take this opportunity now you may have to wait another 10 years for a similar opportunity.

The Real Estate Market Will Adjust

Developers in many locations have been scrambling to meet the increased demand for real estate.  Higher prices and higher rents have incentivized entrepreneurs to respond.  The numbers of new construction projects, especially apartment projects has been astounding.  All of this new supply will eventually come online and likely push down prices and rents.  Again, the time to sell is now.

Real Estate Will Continue To Be A Wise Choice

Real estate will continue to be a wise choice in 2019.  Yes, there might be some pain and readjustment as markets shift and clear or new laws are enacted but the eventual outcome is usually good if you can hold on.  Real estate is and will still be a valuable investment.  The players may change, the way things are done may change and prices may change, but change is part of the process and change creates opportunity for those who can see it and adjust to it.  Despite what the naysayers say, remember that real estate is tangible.  It cannot be created by the stroke of a pen or keystroke on a computer.  Plus, they are not making any more of it.  Barring a major war or catastrophe, good properties will offer good returns.

If you are looking to get started in real estate investing, 2019 may be the year for you to do it.  Challenges will be out there but so will opportunities.  Know your market and begin to gather information.  Sign up to smarterlandlording.com and let’s have a Happy Real Estate New Year!