How to buy a home in 2019

new housing market. Here’s how to navigate 2019.

If you’re revving up to buy a house in the next 12 months—or trying to decide if it’s the right time for you—a little inside info will help you make your best moves. The housing market made some big changes in 2018 as the rise in housing prices (finally) starting slowing, and the 2019 market will have its own quirks, too. Here’s what home buyers and home-dreamers need to know, compiled from the last year of Trulia research and analysis.

Inventory’s still tight – but great houses are out there.

Inventory has fallen nonstop for the last few years, and in 2019, that won’t change. The good news is, you can still find a great house. Here are three tips for buying in a tight market:

  • Consider a fixer-upper. Instead of looking at houses above your budget, look at fixer-uppers priced below your budget and invest the rest upgrading it. You’ll end up with a home full of your own design choices, and just think of the eventual return on investment. Just be sure to buy smart: avoid fixer-uppers with red-flag issues like a crumbling foundation.
  • Look at old listings. Old doesn’t always mean a listing has issues—it can also mean the house was priced too high from the start. Some sellers drag their feet before lowering the price, and the house just hangs out on the market. When buyers search only for new listings, they can miss great properties with price adjustments.
  • Get a sneak peek. Ask your agent about “coming soon” listings for homes waiting to hit the market. Often, real estate agents have the inside scoop on homes two to four weeks before they’re listed.

Homes are expensive, but your down payment doesn’t have to be.

Home prices have largely outpaced income growth, making it increasingly hard for would-be homebuyers to purchase a home. And in 2019, limited supply will only keep pushing prices up.

For 53 percent of renters who want to buy, the biggest challenge is the down payment. But here’s something that might surprise them: the 20 percent down payment everyone talks about is way more than what most people pay.

Most buyers pay 5-10 percent down, and some even pay zero (yep, zero). Talk with your real estate agent and lender and research loan alternatives with traditionally low down payments like FHA and VA. You can also find down payment assistance through sites like Down Payment Resource and your state’s housing finance agencies.

Interest rates will continue to rise, but not enough to be a deal-breaker.

In 2019, mortgage rates will reach a 10-year high, making an already tight, expensive market feel even costlier to enter. But—deep breath—it’s important to put the interest rates into perspective. Interest rates are still at a historic low at just above 5 percent. Dial back 30 years to 1988, and your parents paid a whopping 10.34 percent in interest on their home loan.

The rise in interest rates can easily be offset by other home buying decisions you make, including location, loan structure, price, and whether the home is a good fit for you. You can’t change interest rates, but you can change your list of wants and needs to make home ownership fit your budget.