Real estate is always a sound investment, no matter where you are in the world. And home prices are bound to the rise and fall due to the local economy. The last quarter of 2018, was not kind to real estate buyers and sellers. So, will this downturn affect 2019? Unfortunately, yes. The downturn stems back to 2016, and will continue to affect housing in 2019. Here are some real estate trends for 2019.
- Prices will fall. Due to Britain’s exit from the European union, among other factors, prices will continue to fall. According to The Week, home prices have fallen for a fifth month in a row. This creates a prime opportunity for buyers. And because of the falling prices, buyers know they can negotiate to get the best deal. They may even hold out to last minute to make their purchase decision. However, housing industry experts predict a better half of 2019, with prices slowly climbing.
- Increase in inventory. The supply of affordable homes will increase due to many factors, such as divorce, death and new construction. Britain’s exit from the EU has many holding their breath to see what effect it will have on the real estate market. If it affects jobs, many will not be buying but renting. Or, buyers and sellers may not make a decision at all until the dust settles from the Brexit deal. No matter, there is still new development happening in the outer boroughs, which is encouraging Londoners to move out of the city.
- Regeneration. There are many areas that present regeneration opportunities, such as Acton. Another area enjoying regeneration if Harlesden. Once known for gang crime, this area (zone 3) is experiencing a building boom with new apartment buildings, low-rise homes and a revitalised town centre. The Help to Buy scheme will be ending in 2023, so this is another incentive to buy this year. There is a major development of Park Royal, which was an industrial zone. There will also be a new transport hub in Old Oak, which will link the crossrail and HS2 (2026).
- Opportunities for foreign buyers. Trade negotiations may cause the demand for homes (i.e. London) to fall, thus affecting the value of the pound. If foreigners are able to get more for their pound, they will make purchases (investments and personal). This would help the much-needed foreign investment in Britain.