Friday, January 8, 2021
2021 Could Bring Mixed Bag
I think that we should see a strong real estate market for the first half of 2021 but likely a slowdown at least in the rate of price growth as economic conditions catch up and federal tax policies may change as well. Our market has had a deficiency in inventory for a couple of years now and that keeps prices on the rise, but the pandemic of 2020 and other contributing economic facotrs will likely catch up with us around summertime. At this point I am not suggesting a full correction but rather a bit of a slowdown in the rate of appreciation. There is still tremendous demand for real estate and new people are coming into the area from places like California and the East Coast but also from Portland just across the river. This should keep real estate values moving in the plus direction, but I do not see double digit growth year over year this time round. With interest rates remaining very low buyers are still in position to get a relative "value" in the market even if appreciation slows as rates in the 3s are a long term benefit that tends to outweight any short term pricing issues. Look for a robust spring followed by a seasonal typical summer and perhaps a near neutral market coming out of the autumn later this year.