It’s prediction time! What would the new year be without endless, fearless (and always “bold”) predictions from “industry experts” in the field of something or other. There’s that, and the list of Celebrities We Lost (RIP Tim Conway), and that’s about it.
Is this finally the year of flying cars and nuclear-powered vacuum cleaners? Probably, but I’m gonna try to stay in my lane. The standard questions like “Will the real estate market go up or down?” And, “Are we in a real estate bubble?” I’ll answer with “yes” and “nobody knows,” in that order. Speaking personally, I’m not building a bomb shelter any time soon.
To get insight into 2020, let’s look at 2019. I like to keep my stats local, so I’ll use Anthem as my petri dish. Overall, price per square foot was up 4 percent, but units sold increased by only about 2 percent. It’s no secret that inventory is scarce, and it’s even more so for the first-time homebuyers looking for lower-priced homes.
I don’t see that dynamic changing, barring a nuclear vacuum cleaner incident.
And speaking of nuclear incidents, the market is still down about 15 percent from the height of the boom in 2006. If you bought a home then, I personally feel your pain. We are, however, back to near 2007 prices. If you want more detailed stats, just call the office. We’ve got nerds!
One of the big changes in real estate over the past few years has been “online” buying/selling, and that trend will continue in 2020. As my grandpappy would have said, if he didn’t grow up in New Jersey, “There’s a saddle for every donkey.” I just recommend a thorough pencil session to figure out the actual costs involved and services provided in any quick, ibuyer transaction. Everything costs something, from actual dollars to hairs left on scalp. Ain’t no free rides in flying Ubers.