Real estate market conditions change almost as fast as the stock market. Who’d have thought we’d have such a strong market now? I’ve been posting (quite a bit, actually) over the last year or so about the improving real estate market conditions, but holy cow! This market has come back so strong and so quickly, it’s taken most of the industry by surprise.
We were lucky in the Denver area that we didn’t get hit as hard as some cities when the bottom fell out in 2008. We had a better place to rebound from and now we’re ahead of the game. We should consider ourselves lucky, and I hope you do.
I’ve posted recently that with the change in the real estate market conditions, the inventory is way below “normal.” Consequently, buyers are finding less to choose from, which is leading to bidding wars. Wow. That hasn’t happened for years.
Remember the supply-and-demand lessons from school? With the reduced inventory, you’d expect an upward pressure on prices. It appears, however, that there won’t be a huge, sudden increase in prices. This is mostly due to the fact that just because inventory is down right now, it is not expected to remain so. As the real estate market conditions continue to strengthen, more and more sellers will put their properties on the market, thus increasing the inventory. That, of course, will help stabilize the prices.
In future real estate market conditions reports, I will be getting into more details and number-crunching, but for now, let’s just let this be while I get used to organizing my blog in this new way. Let me know what you think.
With the interest rates remaining at historic low levels, this truly is just about the best market you’re ever going to find to buy a new home. I urge you to take advantage of it.
By the way, the significance of the picture in this post? It reminds me of an admonishment I heard from my mentor when I first started selling real estate. We had a good market then, and he told me, “Always remember: pigs get fat, and hogs get slaughtered.”
So what’s next? Take your pick.
Yeah. You should probably do at least one of those things right now.