We’re just past the 10-year anniversary of Lehman’s 2008 collapse and into the 9th year of U.S. economic recovery which trumpets at least three robust measures: a 3.7% unemployment rate that’s the lowest in nearly 70 years, a 20% rise in GDP, and a bull stock market that’s up more than 50% from 2007 even after the last two-day downward slide.... The current housing slowdown which began in NYC at the upper end of the market is now palpable in every market category... Since 2009, there's never been a better time to purchase a home, despite spiking interest rates and tax reform concerns.
I’ve been selling residential real estate for 35 years, and for the first time I hosted a business talk last week in my Living Room with a guest banker and an attorney. I had a script and an agenda, but we were an intimate group, and the setting was informal, so as I touched on the stats that impact the market, I encouraged Q & A from the buyers and sellers who had gathered. To set the stage for discussing whether now is the time to buy or sell, I offered an overview of current inventory, identified 3 distinct market segments, highlighted the rise of the condo product, and considered absorption rates.
It’s tough to ignore the economists and real estate pundits who see in the current marketplace signs of ebbing exuberance and cooling ardor. Professional brokers will agree that the frenzy of last spring is gone, and that is a good thing, they add. But are we headed for a freefall? Are we in the midst of a real estate bubble that’s about to burst? No, and no.
