Why 2019 is THE Real Estate Benchmark: Insights from Jenny Smith & Jessica Miller

Why 2019 is THE Real Estate Benchmark: Insights from Jenny Smith & Jessica Miller

The real estate market has seen its fair share of ups and downs, but one thing has become abundantly clear: the market isn't what it used to be. In a recent candid conversation, real estate experts Jenny Smith and Jessica Miller explored why 2019 has emerged as the crucial benchmark for evaluating today's market dynamics.

Inventory Levels Have Dropped Significantly
Perhaps the most striking trend is the sharp decline in housing inventory, which is down 50% compared to the same period in 2019. While this may be unsettling for some, understanding the factors contributing to this can provide valuable insights for both buyers and sellers.

The Unique Circumstances of 2020-2021
Why use 2019 as a benchmark? The years 2020 and 2021 were clouded by the global COVID-19 pandemic and historically low interest rates. These extraordinary circumstances created market anomalies that are unlikely to be repeated. Therefore, looking at 2019 offers a more stable reference point for understanding long-term trends.

How Low Interest Rates are Keeping Homes off the Market
One of the primary reasons behind the dwindling inventory is the current mortgage environment. Approximately 80% of homeowners have managed to secure interest rates below 4.5%. This comforting financial cushion makes them reluctant to sell, thereby reducing the number of homes available on the market.

People are Living Longer, and New Construction is Lagging
Another interesting factor contributing to low inventory is the aging population. Many homeowners are choosing to age in place, while a stagnant construction industry, still recovering from the 2008 crisis, fails to keep up with demand.

A Seller's Paradise
For those contemplating selling their homes, this could be a golden opportunity. With fewer houses available and steady demand, home prices remain robust. Sellers are in an excellent position to negotiate better deals and potentially secure top dollar for their property.

What Buyers Should Consider
For prospective homebuyers, this market may seem daunting, but it's not all doom and gloom. With investor activities waning, there's more room for negotiation. Additionally, rising interest rates in the future are likely to mobilize more buyers, so taking the plunge now could prove advantageous.

Final Thoughts
The real estate market is ever-changing, influenced by a myriad of factors ranging from economic indicators to human behavior. However, armed with knowledge and the right guidance, navigating this labyrinth becomes far less intimidating. Tune in to our discussion to garner more insights and actionable advice for your real estate journey.

Don't forget to check out the video discussion between Jenny Smith and Jessica Miller for a more detailed understanding of why 2019 is the go-to benchmark for today’s real estate market.

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