Dear Joan, I am no financial wizard, and I may be a bit of a worrier, so I have to say I got nervous this week with what looked like the great volatility of the Stock Market taking such a plunge! I don’t want to sound like chicken little, running around saying the sky is falling, so is there anything you can tell me that will keep me from worrying about buying a home this year? I started thinking maybe we are in another “bubble” and I should sit tight and try to be content with the home I have. Looking for some reassurance, if you think there is some. Thanks!
Dear Worrier, as you know, there are no guarantees in life, so I cannot predict the future with any certainty. I can, however, point out positive facts and let you know the predictions of Dr. Lawrence Yun, chief economist and Sr. V.P. of Research at the National Association of Realtors are positive for economic growth in the next few years. In answer to your first fear, the stock market came back in an extremely short time (2 days). Second, as far as us having an inflated housing bubble, I can most assuredly say that we do not have a surplus of homes, we actually have a shortage of homes across the U.S. and especially in our Valley. The need for housing, especially under the one million dollar price range, has brought our land prices back from devastating lows in the last economic down turn. It may be a good thing, but the increased difficulty for builders to get construction loans, the costs and availability of building materials and the lack of enough skilled workers have all slowed construction down so that there will not be a runaway surplus in the foreseeable future. These factors keep the economy from over building but it also keeps prices up because the demand is staying strong with our increased population growth and the desire for second homes in our pristine Valley. The really good news for you is that if your are going to sell your existing home, now is a great time to make the move with the prices higher than they have been in almost a decade. Contact your knowledgeable Realtor and get their opinion on what your home could sell for now…and hopefully you will be pleasantly surprised! And remember Dr. Lawrence Yen’s words from a 2018 first quarter real estate publication “There is very little risk of an impending economic recession. Job openings are at a multi-year high and the number of people filing for unemployment insurance claims remains at historic lows.” Now might be a great time to use the immortal slogan of Nike and “just do it!” All the best! Joan