Spring is when the housing market tends to thrive, and all signs show that 2019 will be no exception. If you plan to buy a home this year, now is the time to start looking. Know what to expect from the market this year. Below we’ll break down some of the essential details, including mortgage rates, tax laws, and how the economy affects supply and demand.

Guide to This Spring’s Real Estate Market

The Latest in Mortgage Rates & Tax Laws

Mortgage rates have risen in recent months. Some buyers may decide to look and purchase more quickly in hopes of locking in a rate before they rise further. Other prospective purchasers may decide to wait to see if rates go back down before deciding to buy a home.

The tax law enacted last December also changes buyers’ plans. This new law reduces the amount of mortgage debt that will benefit from tax-deductible interest payments; this number has dropped from $1,000,000 to $750,000. These changes affect buyers in the middle-to-higher end of the housing market. If you’ve been planning to borrow more than $750,000, you may choose to delay in buying a home or simply to borrow less.

The Economy’s Effect on Supply & Demand

Strong economic growth and a maturing millennial population means that more Americans are looking to buy homes. The peak year for millennial births was 1990, and many among this generation are now planning to buy a home for their families.

The demand for homes on the lower and middle ends of the market is rising, and available supply has not yet risen to match. If you’re interested in buying a house in this sector of the market, you may find that you’re competing with other buyers for limited demand.

Preparing to buy a home this spring might look like a challenge, but finding the right real estate agent can make all the difference. Justyna Johnson – Edina Realty has built a reputation as a top local realtor in the greater St. Paul, MN, area. She has earned national recognition for her exceptional services and is a 5-Star Premier Agent with Zillow. Contact her online or call (651) 501-2345 to move your home purchasing plans forward. She also offers the “Trustimate” tool, which provides free and accurate online property reporting. Just text HOME to 651-501-2345 today.