September stats from the NWMLS are quite fantastic…closed sales are running 17% higher than last year and prices are up over 9%. And yet everyone is predicting a slowdown??
The ingredients to our continued housing recovery remain firmly in place…good job growth, low interest rates, scarce inventory. And until something changes, housing will continue to lead. The economic recovery, started 5 years ago, continues with our major employers proceeding to hire and secondary employers increasing their hiring plans. The fed is playing word games with interest rates, but until the rest of the world rebounds somewhat, low rates continue to drive this market. And inventory? There are not big plans anywhere to grow housing significantly in our area. Demand continues to grow faster than supply.
We might have a little slow down…there are signs of buyer fatigue; chasing prices, multiple offers and lending is still difficult…and prices have risen fast…almost 30% from our lows, almost back to 2007 highs…but the market is quite different now than it was then.
So, while we may see a sideways drift, the elements for a continued bull market in housing are still there.