In 2018, we saw distinct forces at work in the housing market: supply, demand, and affordability. Although these factors are always at play, the pressure increased this year and is predicted to continue into 2019. Looking at the inventory shortage we continue to see in Whatcom County, sellers might see the New Year as a great time to put their home on the market.
Supply levels are low due to a lack of existing homes being resold. The number of years we are staying in our homes has reached an all-time high of 10 years which is one of the main contributors to the inventory shortage. Also, there is a continued lack of new construction and foreclosures to add to our inventory levels. On the other hand, demand has been high and is expected to continue to be so. The economy is humming along with unemployment at a almost historic lows, GDP is up, consumer confidence is up, and Millennials that can afford to buy are ready to do so.
As a seller, it is important to be smart and not fall victim to what we call “greedy seller syndrome.” The high demand for housing has caused prices to soar out of a comfortable price range for buyers. Interest rates are also on the rise, which makes affordability another force at play in the market. Many buyers are taking a step back and assessing the situation instead of moving forward, which is a sign that the market hit its peak.
That being said, there is still a huge demand for housing, but sellers must get realistic about their price. Many buyers will try and capitalize on interest rates that are expected to rise throughout 2019, so don’t let this opportunity pass you by!
We have the experience and expertise and want to make sure either party is educated and prepared when entering the market. Give us a call if you’d like to make a move in the New Year!