When I help clients organize their homes or help them prepare for a move, the topic of the housing market often arises. I decided to ask for some professional insight from a realtor. His observations might surprise you!
“Reasons to be Optimistic about the Housing Market” by Dan Faulkner
I spent all of December hand-delivering holiday gifts to clients, and without fail, I heard the same question from everyone, “So Dan, how is the market?”
Well, From the end of 2008 through much of 2009 there was a deep pessimism and fear about where the market was headed. However, the reality is that we have most likely bottomed out. Consider these facts:
- Closed sales in King County are up 33.4% over the last 12 months
- Pending home sales are up 85%
- Months of inventory is at 5.9 months (6 months is a neutral market according to the National Association of Realtors)
- Interest rates hit their lowest point ever in early December at 4.71% for a 30 year fixed rate mortgage
And, we are entering a new era where the Echo Boomers, the children of Baby Boomers, will be coming of age. There are 6 million more Echo Boomers than there were Baby Boomers, and households are expected to increase by 1.25 million annually over the next decade. This means there’s going to be a lot more people to buy a lot more stuff!
Nobody expects the market to surge anytime soon. In fact, we may not see any significant appreciation for a number of years, but one thing seems abundantly clear… there are reasons for optimism!
