Friday, February 26, 2021

Is Tight Inventory a Product of the Pandemic?

It's hard to say why homeowners are choosing largely to stay put, but with interest rates still very low, the traditional case study suggest they would capitalize on substantial equity gains and move up. They are not doing it this time and the only real difference is the pandemic. 

Are homeowners nervous about the future economy, the persistent potential for lockdowns, or is it some other cultural shift in the mentality of homeowners. Are millennials taking a different approach to homeownership than their parents who on average bought a new one every seven years. Perhaps they will be more like their great grandparents? Are millennials going to be a generation that stays in their first house through retirement?

I hope not, as that would not be good for us Realtors® ;) A lack of resale homes leads to a tight market and higher prices for entry level buyers. If millennials end up a buy and hold generation, the market for Gen Z will be really tough.

Baby boomers were perhaps a little too 'loose' with their equity, but one can also be too tight with it as well. Using the equity to buy a larger home or a home in a better neighborhood, closer to work, or another life benefit is not a bad idea. As with all good things in life, just don't abuse them.

Friday, February 12, 2021

Listings Hard to Find

Listings are tight and that means the market will remain difficult for buyers and excellent for sellers. Our transition into the neutral market seems to be sliding back in favor of sellers. It seems that sellers are staying put. Vancouver and Clark County remain a hot destination as new people from Oregon and Seattle are flowing into the region. Meanwhile few Clark County people want to leave. A possible additional complication is that people in a position to move up may be uncertain about the economic future with COVID still raging and uncertainly in future governmental policy. If this is the case then that leaves even fewer new listings in a market filled with ready, able, and willing buyers.

I think the vaccine roll out and a slowdown in new cases later in the spring (hopefully) will ease the jitters of some local move-up sellers. This should help boost inventory in the traditional spring season.

If you are thinking about upgrading your home now could be the perfect time. You will get top dollar for your current home maximize its equity thus putting you in a stronger position ie. larger down payment, lower future payment, etc. when you offer on the next home. Interest rates remain extremely low, but that may not be the case in the future since the feds are printing massive amounts of dollars to combat COVID-19. Even if the housing market were to take a dip next year, the interest rates combined with he capture of a large equity pool would most likely carry you through any future downtown, grinning.

Reach out to me or your local trusted agent today to find out what your specific situation looks like.