The first week of January I went to Orlando for a marketing conference. On the flight home the passenger next to me was saying he expected 2020 to be a great year. He said all the economic trends were going to keep getting better and better. I agreed but also mentioned the problem with trends is they tend to continue until something unexpected happens.
Of course, if I truly had any idea what was going to happen I would have been able to capitalize on it and I would be writing this from my own private Caribbean island. If we have learned anything in the first 6 months it is that our crystal balls are usually a little bit fuzzier than we would like.
Some of the things we have learned this year are…
- Our real estate market is resilient. Our area doesn’t have many of the economic conditions necessary to see panic selling. Even our clients who lost their jobs and decided to relocate have so much equity in their homes they weren’t desperate and were able to sell their homes at a great price.
- Given the choice people want to move here. Since April we had 3 buyers we represented who previously were being relocated to another city (Dallas, Chicago and Houston) but with so many people working from home their companies gave them more flexibility on where they can live and they decided to come here.
- We had 2 buyers decide to cancel contracts back in March. I can’t blame them; it was a scary time. From a financial standpoint both should have bought a home. Both are now back in the market and will pay a higher price for the same home they could have bought in March/April. The lesson here is if you see an opportunity you need to be ready to take advantage because it may not last long.
What we expect for the 2nd half of 2020…
- I expect our summer selling season will extend further into the fall. Overall our real estate market is not as seasonal as you might expect. Believe it or not December is often one of our better months as buyers want to be in a home before the holidays. What that means is if you have been holding off selling your home there is still plenty of time to get a great price this year.
- I expect we will see an acceleration of both buyers and renters moving to the suburbs. Between employees giving more flexibility to work from home and a desire to escape congested areas it bodes well for our future real estate values.
- I expect the inventory of homes for sale will continue to be well below the 2019 pace. Sellers trying to decide between selling this year or waiting until next year should understand current market appreciation is happening due to an imbalance in supply and demand. This year we are seeing a reduced inventory of homes going on the market. Whether that is temporary or something that will continue into next year remains to be seen. Based on the number of homes we already know we will be selling next year I expect inventory levels will be higher in 2021.
Why Do I Say "Whenever You Are Ready…?"
Recently I had a sales trainer recommend I should be pushier. Rather than ending my messages and emails by saying “whenever you are ready…” he said I should say something more salesy that would get people to call me immediately.
One of the reasons so many home sellers like to work with us is we aren’t pushy salespeople. In addition, because we run a successful business, we can give advice based on what’s best for our clients and not because we need someone to sell their home so we can pay our bills.
I could try to twist your arm into doing something you’re not ready to do. I know all the sales tactics and it would probably work. But, if you’re like me you don’t like the hard sell. If you’re like me you want to get advice based on what’s best for you.
That’s why in the long run both of us are better off when I say for you to contact us “whenever you are ready.” For me I attract more clients and the type of people I want to work with. For you it means you can get information you need to make a good decision and decide what’s best for yourself.
Whenever you are ready to talk about your situation call/text me directly at 512-791-7473 or email eric@koparealestate.com.
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