2020 will be another year for the record books! The demand is there. People have more money o spend. Rates are low. The only missing part is inventory needs to break out.
Inventory is crucial. In our area #NorthCentralWashington prices were good last year but with a lack of invventory to pick from many buyers were sidelined waiting until they can find the house they wanted. Normally a short inventory, supply and demand kicks in but the reluctant seller helped keep the market from going crazy. This year I think inventory will expand. If it expands as market needs then watch for prices to gradually kick up. If it doesnt then buyers will be chasing prices.
However, low rates are helping buyers by allowing buyers buy more house than two years ago for the same amount of money so in a way the rates give buyers an ability, though limited to, compensate for prices. Growth in real wages will help too as will stock market growth all of which puts more spendable dollars in pockets.
As REALTORS we need to stay on top of the market. Prices can be difficult so get out of thinking about 2017 and think about next month 2020. Help your buyers find and understand the path they need to take. Help your sellers understand the dynamic and show them how they have the market helping them with the sale price and the rates helping them with the purchase... win on both ends I think.
The Chalet above, is a property in a recreational area near where I work. I look for the market in second, vacation and rentals to also push up... so do your homework, update your approach to social media and customer contacts and enjoy 2020!!
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