Growth of the housing market in Greater Lansing continued in 2018 with sales volume and prices rising for the fourth consecutive year. The rise has been steady, but with the possibility of mortgage interest rates rising, what can we expect from the Greater Lansing housing market in 2019.

Consumer Confidence is Up

The National Association of Realtors tells us that over 8 in 10 adults see home ownership as a part of the American Dream and 86% of adults whether Millennial, GenXer, or Boomer see buying a home is a good financial decision.

Home buyers across these different generations will be looking for different things in their home, which is good news for well-rounded competition and new home construction. Many Millennials are looking for the first home and weighing their options when it comes to buying or renting. GenXers are most likely looking to move up into a larger home, either to accommodate their growing family or to fulfill their dreams. Many Boomers are looking to downsize, or sell their home in Greater Lansing to move to a warmer region. Combined, these groups together help to form a balanced home buying cycle.

The Local Economy is Strong

A critically important ingredient for a strong housing market is the economy. The Lansing area has continually added jobs since 2011, and unemployment has continued to drop. The Lansing area economy is very balanced, with a growing manufacturing sector, thriving health care providers, solid insurance company headquarters, and a growing tech sector. Job growth has contributed to a steady population growth over the past few years.

Mortgage Financing is Available

Another factor contributing to a strong housing market is readily available mortgage financing at affordable rates.  Although many expect interest rates to drift upward, borrowers can still finance at historically low rates with down payments as little as 5% even for first time buyers. This is good news particularly for Millennials, who are now the largest home buying segment of the population.

Home Ownership is Still Affordable

A final factor in a positive housing market is affordability. Although average selling prices have been rising, housing in the Greater Lansing area remains affordable. This means the median priced home in the area can be purchased by the median income family. The low cost of living is part of what makes Lansing one of the best places to live in Michigan, which further helps home buyers stay ahead of their payments and purchase their dream home.

Housing Market Predictions for 2019

So, what is the housing market predictions for 2019 in Greater Lansing?
• A positive economic outlook will continue.
• Home prices will continue to rise in the 5 to 6% range.
• The Inventory of listings will increase, but the seller’s market will continue.
• Demand for new homes will exceed home builders’ ability to handle the demand.

Housing market predictions for 2019 in Greater Lansing look bright. All the ingredients are in place for continued upward trends in 2019, though neither buyers nor sellers should expect a mirror image of 2018.