2019 will be a great year to buy real estate
2019 will be a great year to buy real estate
The difficult economic situation will cause real estate prices to plummet in 2019, all over the world.
Statistics and analysis of experts show that 2019 is a good year to invest in real estate. The luxury real estate market in 2018 is not good for many people. Everywhere, sellers see a bad sales because of negative signs with both macroeconomic and microeconomic, while buyers face many problems such as stock prices, high interest rates. and tax.
In 2019, there are no optimistic signs for sellers. UBS Group AG reports that London, Amsterdam, Hong Kong, Munich, Toronto and Vancouver are all at risk of asset bubbles, leading to deflation.
In the US, if you look at the data, there will be a clear answer. Jon Woloshin, chief of asset management at UBS Global Wealth Management, said the $ 3,000 / square foot asset class is clearly stalled. Foreign buyers, especially Chinese rich, have stalled partly because of the strong dollar while rising interest rates make home ownership less attractive.
In London, the asking price was too high combined with the uncertainty of Brexit made the housing market slow down. In September last year, house prices fell by 0.7% over the same period last year. It was in stark contrast to March 2016, when London housing prices increased by 14.8% over the previous year. However, the slowdown may increase at a faster rate than the problems that the British economy is facing.
The decline is most clearly seen in the cities described as the financial centers of the world. It also takes place in places where financial people often come to rest. House prices in the Hamptons on New York's Long Island area fell sharply while inventories rose. The average price in Aspen, Colorado fell 13% in the quarter 3/2018 compared to the same period last year. In Switzerland, luxury resort towns like Verbier have also dropped prices in the middle of 2018.
The greatest potential threat to home prices may be oversupply. According to data, there are about 3,000 new apartment units launched in New York in 2018. The average price in Manhattan has also fallen below $ 1 million for the first time in 3 years.
However, the situation seems to be worse in 2019. While the number of houses completed and sold continues to increase due to the construction started a few years ago, the time of real estate peaked, the number of people consumption is reduced. The old inventory is not over yet, the amount of new houses added may make the price continue to fall further.
For those who sell, 2019 is clearly not a bright year. However, for buyers, this is a good signal because they have the opportunity to own houses with softer prices.
Linh Anh
