What's the State of American Real Estate?

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.