Bi-Polar Market

Bi-polar Market

We all know the Market is hot right now.  Burning hot in some areas of the country, but did you also know that home ownership rates are nearing record lows?  According to realtormag, the first quarter of this year's home ownership plummeted to 63.6 percent, the third lowest on record.  With that said home builders say they are finally ready to build more new homes.  NAHB forecasters predict that single-family production will see a 14 percent uptick this year to 812,000 units, and then rise another 19 percent to 964,000.  Are you confused yet?  Just wait it gets better. 

New York Fed President and CEO William C. Dudley stated that "the housing market should remain on a solid trajectory, supported by rising employment and low mortgage rates. I continue to anticipate that consumption and housing activity will expand at a moderate pace this year."  Which all sounds really good, except lots of real estate agents like Marianne Guenther Bornhoft are a little scared.  "I'm a little scared that people are going to, again, get ahead of themselves."  Aaron Cunningham, owner of the Citibroker firm, has similar worries.  "I'm making more money today than I ever have, However, when times are good , it's really easy to get stupid."  Many agents don't feel we have a sustainable market right now but they also don't think it's a bubble either.  So what is it that's happening right now?  Inventory is down, prices are up, bidding wars are becoming the new norm, mortgage rates are not rising, the economy is coming back, and with all this the market looks a little like it did before the last crash.   What The Hell!

What does it all mean?  I'm not really sure but what I do know is we all (buyers, sellers and agents) need to be careful. Be aware that all the normal rules still apply so don't get crazy or emotional about selling or buying your home.    Always let logic rule and make sure you have an agent that knows what they are doing.  Good luck out there.

 

Cynthia Schmier, Broker/Owner
CRS, CDPE, CNE, CIAS, MDI, 5-STAR, SRS
RE/MAX Country
Cynthia@Cynthia-Online.com
(360) 400-3475
www.cynthia-online.com