MARKET INFLUENCERS: The US economy remains robust as we close out 2019 and look ahead to 2020. Primary economic indicators such as unemployment, wagers, GDP, and interest rates positively impacted housing results and are predicted to continue in the coming year. In the coming year, analysts predict the number of home sales will increase as will home prices, albeit modestly. This "Stable Growth" is characterized by a deceleration of prices which means price increases, but at a slower rate then the last few years. Focusing on interest rates, 2019 showed a steady decline against early predictions. This trend is predicted to continue and remain at this level over the 2 years averaging 3.8%.
LOCAL & REGIONAL: Our regional and local market mirrors the national. Looking at current statistics (in the margin), low Months of Supply (6 mths being the mid-range) affirms the continuation of a Seller's Market. This reflects fewer homes available relative to the number of interested Buyers. We also have experienced increasing home sale prices across many micro markets and price points. However, even as Sale Prices trend upward, the amount of the growth if flattening. THis means that although Sale Prices are likely to rise in the coming year (good for Sellers) they are rising at a lower and slower pace (better for Buyers). We are also likely to maintain the Days on Market trend, especially in the higher priced properties.
SELLER'S STRATEGY: As stated, we are continuing a Seller's Market into 2020. Although prices on homes sales are still trending up, that pace is slowing down. To capture the highest price on your listing, the art of a thoughtful and intelligent pricing strategy for the open market will be even more critical as Buyer's will not be attracted to an over-priced home. They will wait for another opportunity.
BUYER'S PLAN: As a Buyer in this market, your game plan is to be well prepared in advance of searching for your next property. Knowing that the competition may still be fierce in some price points and that Sellers may be adverse to negotiate too low (see the 98% of Original to Sale Price) that preparation will pay off!!
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