2019 finished with home values at an all time high marking the eighth consecutive year of price appreciation. In broad strokes, scarce inventory was quickly snapped up by demand bolstered by a strong economy and low interest rates. A shortage of building professionals pushed remodeling costs to stratospheric levels and yet, there seemed to be construction on nearly every block as homeowners found they were largely priced out of move-up or downsizing options. Yet, a deeper dive reveals the real news…. it was a tale of two markets.
Strategies continued much the same way as 2018. Sellers who corrected deferred maintenance, prepped and professionally staged their properties and listed at a sharp price received far better results than those who did not. Buyers who bid aggressively with a sizeable down payment and no contingencies often received the keys. Of the $53 million in sales I did this year, my sellers received an average of 4 offers and a sales price of 25% over list; two thirds of my buyers secured their home with their first offer. Despite the barrage of news focused on the slow demise of real estate agents, 2019 remained a year when having an experienced professional in your corner really mattered.
As I look forward to 2020, early signs are that we will have a considerable amount of inventory coming to market in the first quarter. The availability of professional stagers is a leading indicator and their calendars are full. I expect these homes to be met with strong demand. There remain many serious buyers in the market who are ready to move on the right property. As we approach the second half, I expect activity to cool off a bit with summer vacations and then going in to a fall presidential election. In my experience, some people refrain from making life-changing decisions amid uncertainty.
I wish you and your loved ones health and happiness in the new year! Here’s to a terrific 2020.