I just returned from a conference with 1500 of the top real estate agents in the country. I’m always looking for ways that I can better serve and inform my clients and I’m thrilled with some of the innovations I’m getting ready to implement to help you! But I was also very excited to get information about the real estate market that confirms what I’ve been thinking.
We have been in a very strong Seller’s market over the last several years. The market shifted into a more normal market in the last 6 months. But despite “more inventory” and “price reductions” and “decreasing values” I’ve been feeling like we are still low on inventory because I can’t find the right home for many of my buyers – who are all in different price ranges! What I found out last week is that the data confirms my feelings. Yes – we are now in a more normal market – but we aren’t in a freefall and no one is projecting one!
In fact – WE ARE STILL IN A SELLER’S MARKET! We have more inventory available but only by about one month’s worth! Doom and Gloom? I don’t think so!
One of the dominant refrains I’ve heard over the last couple of years is the prediction that we are in for a real estate crash. Why? Because our most recent negative market experience was the housing crash in 2007. But when we look at actual historical data it is clear that the 2007 recession was not typical. That’s because the real estate crash in 2007 was the cause of the recession not the other way around!
Real estate prices actually increased in 3 out of the last 5 recessions:
January 1980 – July 1980 – Prices increased by 4.5%
July 1981- November 1982 – Prices increased by 1.9%
July 1990 – March 1991 – Prices Decreased by .9%
March 2001 – November 2001 – Prices Increased by 4.8%
And yes, experts do predict a “slow down” in the economy in the next 12-18 months. But those same experts also predict appreciation in the coming years.
The attached graph shows average prices for sale and sold in the Greater Sacramento area over the last year. While the average sales price is “down” for January 2019, it is not “down” from a year prior. Today’s stats in Metrolist show that the average sales price from 2/1/19 to 2/11/19 is at $400,000 – up 3.9% from the same week in January.
My hope is that you will take headlines with a grain of salt – remember – bad news sells! It’s a great time to buy and sell. Please call me so I can answer your specific questions and help you reach your goals!