2020 has been quite a ride, a not so good one for many. Residential real estate, on the other hand, has had one of it’s best years ever. Locally and nationally, the real estate market has been going straight up. Here in the NW, we are getting a double….easy money, and population growth. If you are selling, it is a great time to do so.
So what is driving the market? Nationally, interest rates have been the biggest factor in price appreciation and increased demand. The economic stimulus in response to the pandemic has produced interest rates in the high 2’s% for most buyers, with VA buyers around 2.5%. This means that people who couldn’t think of buying a home last year, will do pretty well this year.
The other major factor, local to the Northwest, and some other parts of the country, is migration and population growth. In 2019, more than 100,000 people migrated to western WA (The I-5 corridor), and it seems like there are even more this year. Strong demand for housing, low inventory, and low interest rates: The definition of sellers market.
If you are looking at selling this year, we need the inventory! Please give me a call. Gayle and I would be happy to give you our opinion on what to do to get ready, an estimate of sale price, and get on the schedule for pics…If you are holding, I suggest keeping a very close eye on new construction, and a closer eye on interest rates. The current low rates will almost certainly result in a large amount of New Construction this spring. Increasing inventory will have the obvious effect, and if interest rates start going up, keep in mind that 1% of 400k is more than $300 a month.
So…put that seatbelt on! Happy New Years… and a prayer for a moderate 2021