The Latest Stats About Our Market

Here’s a quick update about what’s going on in the real estate market, including our projections for what’s to come.

More and more, I’m seeing consumers buying and investing in their future, their wealth, and in an asset that makes them happy. No longer are their homes simply borrowed from a landlord. Increasing numbers of people are seeing the importance of homeownership.

I recently read a survey put together by the Urban Land Institute that said homeownership appears to help borrowers accumulate housing and non-housing wealth in a variety of ways, including tax advantages, as well as greater financial flexibility due to secured borrowing built into full savings, amortization, and normal, fixed payments. It also provides the potential to lower home maintenance costs through equity. Homeowners benefit from putting time and energy into increasing the value of their homes over a lifetime of living there.

Earlier this month, the Federal Reserve Bank released a study that showed that the percentage of Americans who see home ownership as a good investment has grown over the past five years, going from 55.7% in 2014 to 65% in 2019. Similarly, Gallup also released a study showing that Americans tend to choose real estate (35%) over stocks (27%), savings accounts (15%), and gold (14%) as the best long-term investment. These studies show that homeownership truly is the key to building wealth and securing your financial future, a fact that will only strengthen alongside the economy.

Understanding what’s really going on in the market is the key to assuaging your fears so that you can make better decisions about your life.

In our market, inventory as of June is at an all-time high with 4.2 months of supply as compared to the 3.8-month supply in May. This inventory increase is nothing to be concerned about—it’s just a sign of our market moving back to a normal, healthy state.

However, sellers do need to be aware of what is going on. I’ve received many concerns from sellers who think that the market is crashing and are wondering if they need to sell their house soon. If you’re thinking of selling your house in the next 18 months, you need to have a conversation with your real estate professional about whether now is a good time to downsize your home, upgrade it, or simply cash out and do something different. (Spoiler alert: The answer to all these is yes!)

Understanding what’s really going on in the market is the key to assuaging your fears so that you can make better decisions about your life.

If you have any questions about buying, selling, or investing in real estate, please feel free to reach out to me. I’d be more than happy to answer your questions.