Your Local Real Estate Economist

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Real Estate

 A lot has changed in the past 10 years with the economy and the housing market, and lets face it, the world! Our company at Keller Williams went International in a big way which makes it much easier for us to help buyer and seller locally as well as globally. We also see generational growth with data showing that the Millennial generation born 1980-1996 were about to surpass the Baby Boomers in 2019 as the largest living group in America. According to Pew research there are four generations in the workplace which include Baby Boomers, Millennials, Gen X (1960's-80's), and Gen Z (born after 1999), . That also creates the need for more housing.

For the past two years we have experienced a housing shortage in many areas. The rule of supply and demand is what creates shifting markets. Less homes for sale creates a sellers market. More homes than buyers will shift the market in favor of the buyers having more to choose from and sellers needed to compete more with lower pricing. The current sellers market saw the the median housing price in 2019 climb to $316,000 nationally which is a record high! Prices are still rising slowly. Home prices grew slower in 2019 (3.3%) than 2018 (5%). Some experts predict that home values will be slower in 2020 at 2.8% while home loan interest rates are being lowered for now and economists predict they will remain the same for 2020 at 3.7% for a 30 year fixed rate and 3.2% for a 15 year mortgage. While the Baby Boomer generation continue the downsizing trend, they become sellers and buyers. Currently the largest home buying group are the Millennials.