So… how is the Real Estate business?

It is that time of the year – for parties and celebrations, generosity and giving, spending time with loved ones and appreciating the little things. I have been witnessing goodness and joy all around and absolutely love every second of it.

I have also had the opportunity to attend quite a few events lately, and to spend time with some old friends and some new ones. Inevitably, the question of the state of the real estate market and the ever-so dreaded recession in the economy comes up in a conversation. And yes, we all do remember the last big one at the end of the last decade, and many of us were affected by the startling events that unfolded in the real estate market. Being part of that industry now has made me extra aware and cautious of all changes happening currently.

The NWMLS just released the statistics for November and it looks like the numbers managed to surprise everyone. According to the report, in November, there were “plenty of buyers” competing for the sparse inventory. That led to a 9.2% increase in year-over-year mutually accepted offers compared to the same month last year.

In King County the median sale price was $612,000 which was a one percent higher than last year. According to Dick Beeson, a member of the MLS board of directors, unlike the rest of the U.S., the pending sales were not on the decline in the Puget Sound. The year-over-year of pending sales for the King, Pierce and Snohomish counties have gone up by 9%, however the housing market here has virtually sold-out of the mid-price range.

Another economy expert who’s reports I follow closely is Windermere’s Chief Economist Matthew Gardner. In his 2020 forecast for the US economy he predicts that the recession will begin either next year or, at the latest, in 2021. However, it will not be nearly as catastrophic as the last one we had.

The economy will continue grow and the number of jobs will as well, but at a much smaller scale, about 2%, than the one we have witnessed during the last decade.

As far as the real estate market, Mr. Gardner predicts that the home sales will be somewhat slowing down and the home price growth will measure about 3.9% growth year-over-year.

As far as new construction homes, he predicts that there will be a growth in the number of units sold, however, the increasing cost of building new homes will prevent the pricing of going up by more than about than 1.5%.

Mortgage interest rates will grow a bit, but not drastically and first-time home buyers will be entering the market more prominently, according to the forecast.

In conclusion, YES – the recession will happen. It’s only a normal part of the business cycle. However, it will not be as catastrophic as what we have witnessed in the past and with careful planning we will be prepared and be able to move forward. In the meantime, I will continue to follow the market trends and keep informed on the latest developments. Because I care!