As shared in the January's Expert Question's answer, its of my opinion that our market place will continue to have a tight inventory of homes for sale, especially in the median single family home category. Prices will continue to climb but at a slower pace then recent years.
Also, I am personally seeing that if sellers bring their homes to market with high value asking prices, without having done the much needed upgrades. We then see less offers, and when written with more resistance to the price by asking for Seller Request for Repairs. They don't want to take on someone else's expenses and pay the high price.
Thinking, I would add other professional opinions to this answer, I also am sharing conversations I had with Gary Gangness of Real Options Realty, and Paul Bailey of Bailey Properties.
Gary views the market fluctuations through historical data, by looking at each category of homes with their unsold inventory and by tracking the amount of properties and the amount of months on market average. He does his review the same week each month year after year. So, for Condos / Townhomes we currently have 5 months of inventory as of the first week of Dec 2016 , up from the previous month. With 93 homes Active & Contingent compared to 76 year to date. Single family homes have maintained 3-4 months of inventory, in Dec. with 389 homes available , compared to 420 year to date. The thinking, which seems to hold true, is the tighter inventory will push up pricing.
Paul has an interesting and more long term view. "We are in chaos!" He is right, this has been a tough election for Americans. However, whether we personally support this president or not he is pro business. We will need 6 months going forward until we can really see how this levels out. What has happened already? is the Stock market is surging with growth. Corporate America likes this president. President Trump has discussed cutting back Capital Gains Taxes on home owners, currently at 48% State / Fed. If done? More Baby Boomers will be selling homes and making the desired changes they have hoped to, increasing our inventory. Our President is also talking of lowering Corporate taxes in exchange for corporations bringing there income back into the US from Ireland where many have Head Quarters today as a tax haven. The result means more taxes paid in he US, Companies will be flush with cash and investing in growth and more jobs at home. Paul feels strongly that our market value will see a 12% growth in 2017
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