If you’ve been looking at the latest charts and statistics about today’s market, hop on this economic ride of “huh”.
Services? Up. Manufacturing? Down. Stock market? Up, by almost 20%. Yet our economy has grown a measly 3%.
There are a lot of mixed messages when it comes to the economy right now, but one thing is for certain—interest rates are still dropping, and so are housing prices! Over the last several years, home pricing trends have been pretty smooth and stable overall, making it look like a boring ride. However, if you look closely at the month by month stats it’s been very up and down, like we’re on the wooden racing roller coast The American Eagle at Great America. In the last year, prices have completely leveled off or dropped after a steady climb when compared to the previous two years. Prices increased drastically from 2011-2015, but 2016-2019 has been more confusing and less predictable. The recent drop in interest rates and home prices has people fearing that a recession is coming. Luckily, recent recessions have been immediately followed by massive increases in housing prices, also known as bubbles. Not the case right now.
There are many reasons to fear the economic future, but real estate shouldn’t be your concern. It’s been boring, exciting and confusing for us real estate professionals. We’ve been setting records for number of transactions and sales volume (up), yet the average Chicago sale price has dropped 18% below the 2007 high, and existing home sales have declined for 12 straight months (down). Weird, right?
I decided to buy another property. After all, regardless of UP feelings about the market or DOWN predictions, you can’t argue with historic low rates and lower prices. This affordability is happening NOW!