How Does the Richmond Market Relate to the U.S. Market?

Mission Realty Real Estate Podcast with Clayton Gits

What's going on in the world of real estate? Today we'll take a look at the Richmond market and the nation as a whole to get a picture of how you could be affected.

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What's going on in the real estate market both here and across the nation?

Gallup's U.S. Economic Confidence index shows us that consumer confidence is as high now as it has been for the last nine years. This started last year, so we can't give all the credit to our new president. This started under President Obama and has spilled over into the new administration.

This means that consumers are also confident about buying and selling homes. I really want to stress that in terms of existing home sales, which continue to climb. We're in the strongest market I've personally seen since 2005. It's a little location-sensitive, but in most areas, homes are selling fast.

Pending home sales—a leading indicator of future performance—are also up year over year. Inventory is down though, and our market is starving for it with demand so high. Existing inventory is down 9.1% overall with starter home inventory down 12.1% and trade-up home inventory down 12.9%. In every category, inventory is down. This downward trend of inventory started last year and continues to sink.

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Demand for homes is high; buyers
are starving for inventory.

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Finally, we need to look at what's happening with interest rates. For years we said that they needed to increase, and it's finally happening. Luckily, the experts forecast that rates won't go crazy; by the end of 2018, they think they'll be up to just about 4.75% to 4.85% depending on how the economy performs.

If you're thinking about selling your house, now is an outstanding time. There's no competition for you, but I think it's coming this spring and summer.

It's also a great time to buy a home with interest rates still very low.

If you have any questions, don't hesitate to give me a call or send me an email. I'd love to help you!