What's the State of American Real Estate?

In conjunction with the President's State of the Union Address, Realtor.com published its analysis of the state of the national real estate market. I usually focus on the local market, but think this information is really important for a wide-ranging view. 

This national report focuses on two significant factors: strong economy and low inventory. These dynamics are the foremost drivers of today's real estate market. 

First, we started 2018 with a robust and growing economy. Four strong markers that positively impact real estate include: 

• Unemployment fell to its lowest level in 18 years at 4.1% as jobs were added for a record 86th consecutive month. 

• Consumer confidence is at "historically high levels" according to the Consumer Confidence Index just released January 30th. 

• American Stock Market has reached several all-time highs over the past year. 

• The American Retail Federation announced 2017 retail business ended strong and finished with a 5.5% increase in holiday sales. 

Second, we have extremely low inventory in just about every market in the country. Joe Kirchner, senior economist for realtor.com announced: "The macro-factors that have defined real estate in recent years - strong demand and weak supply - continue to set the tone for the industry." The national inventory fell to 8.8% in 2017 - down about 2% from 2016. Real estate is a supply vs. demand business. Low inventory with strong demand has driven prices up. 

Home ownership continues to be a major vehicle to build wealth. With interest rates hovering in the 4% range, financing still gives the buyer a lot of bang for the buck when considering historic interest rates. 

Do you have any plans to invest in real estate or sell a property in 2018? Our team is prepared to help you make real estate your BEST investment. Let us know how we can assist you.