NATIONAL MARKET UPDATE
What will 2021 look like?
|
According to the most recent market update from the National Association of Realtors Economist Lawrence Yun and a panel of 4 additional Chief Economists, 2020 was a surprise with its rise in home purchases in spite of the COVID pandemic. Unprecedented low interest rates combined with low inventory created environment of buyer demand & competition which continues to drive prices up. Single family homes experienced double digit price appreciation, even the more expensive million dollar homes doubled in transactions. Affordability remains the concern, due to lack of inventory, as growth in prices will edge out the first time home buyers, as prices have increased at double digit pace. Inventory, an issue that was already pre COVID, inventory is needed from builders who cannot build homes fast enough with the need for land, qualified laborers and cost of lumber had a significant increase this year. Sellers are lacking, as new listings continue to decline, and it is possible the COVID stay home order has affected sellers ability and comfort level to list their homes. Overall, the group was optimistic about the Real Estate market going into 2021 as interest rates will continue to remain low and home prices will climb by at least 5%, Real Estate is doing well universally. Home valuations vs mortgage outstanding, wealth from the stock market & housing equity is giving confidence.
So how has COVID affected the market and the question is will a vaccine affect buying and selling? Tech companies where employees are able to work from home are doing very well. These workers are not area bound and are buying homes to accommodate work from home space and moving to areas they desire. Due to COVID restrictions there has been a shift in the US economy which had been service industry driven, but with the shut downs, is now goods driven as people are spending on durable goods. Consumer spending held however is a concern if Government assistance goes away, if shut downs continue. Huge impact by COVID layoffs of workers in hotels, restaurants, leisure industries. With school closures parents are challenged with lack of child care and students whose schooling has been disrupted are trying to find work. Quality of laborers is a growing concern due to loosing skills due to shut down. FHA reported 8% of all mortgages were in forbearance, it is important that homeowners keep their jobs and this could become an issue in the market 2022. The Stock market is a reflection of a “K” shape recovery as tech stocks out performed, however, industries that are not doing well are airlines, cruise lines, restaurants etc. What is important is job creation.
|
|
LOCAL WILLAMETTE VALLEY MARKET UPDATE
End of November / December 2020
|
According to the Willamette Valley Multiple Listing Service local statistics show new listings in November 2020 was the 4th lowest month on record since December 2017. In contrast buyer demand remains very high going into December, as Sales and total dollar volume YTD have passed 2019. As was expected after the COVID pandemic slowed sales in May 2020, the later “spring” seasonal sale was very strong in the months to follow, driven by buyer demand with continued low interest rates. Salem area stats in the past several weeks show median price point at $339,000 down slightly, units sold at 229, a 40% drop in inventory shows a significant decrease in days on market to 34, price per sq ft increase to $210 and 101.5% of ask price is received. YTD top sales terms show majority of buyers used Conventional financing at 5,538 with Cash in second at 1,924 next FHA 1360 and VA at 822. With the given momentum with the amount of buyers looking and ready to buy in the market, it is not expected to slow coming into 2021 as interest rates are expected to remain low. With lower inventories home values are expected to continue to increase by at least 5%. Sellers needed!! For more exact statistics as it relates to your neighborhood, as each area varies in sales and percentage of value increase, contact me I am happy to help get you that information |
|
TALES OF SALES AND SETTING EXPECTATIONS
|
Being your Realtor advocate advising you while navigating a transaction whether buying or selling is my job and what I enjoy doing. If you are thinking about buying or selling soon, here are some recent experiences and realities to be prepared for so unrealistic expectations don’t sabotage the possibility to buy or sell. This market is booming and homes sell FAST, it is critical buyers financing is in order before beginning to search for homes. Knowing what the purchase budget is, cash to close including closing costs, and having a preapproval letter available is needed, so when the dream home is found, submitting a realistic winning bid can happen. Over the past several months the majority of my successful closing have been buyers who had to sell a home to purchase, and some of those have even been competing offers, so we were successful in negotiating a winning offer with a contingency. A successful sale of the buyers home starts with review of the homes condition inside and out, and how it will present to the public. A realistic strategy to ready the home is determined based on budget, timing and priority. Facilitating the homes readiness to list, showings, negotiating offers and escrow while the buyers purchase is also moving through escrow, has been my expertise, it can be done. Most importantly, understanding & following COVID mandates & recommended protocols during the process.. Buyers and sellers should understand that availability for communication and flexibility is an important part, as lenders, inspectors, appraisers, all parties to a transaction are very busy, and need to be able to get information for the transaction quickly. Understanding there may be delays while navigating escrow, inspections, appraisals during COVID, so it is my business practice be proactive in addressing any possible hurdles as early as possible in the transaction. |
|
Licensed in the State of Oregon since 1997 |
|
|
|
Patti Williamson
Principal Broker Owner / GRI
|
If you have questions or are ready to buy or sell, don't hesitate to reach out!
503.932.1267
|
|
|
|
|
|
|
