What a Run During My Lunchtime Says About Our Real Estate Market
What does a run around my neighborhood at lunchtime tell me about the current real estate market? If you’re thinking I’m going to say that it’s booming, I see for sale signs that have immediately gone under contract, I’m sorry to say that you’re wrong. Truthfully I ran all over one side of my neighborhood and didn’t see a single “for sale” sign in a yard. Not a one. Inventory is so low. Studying the stats tell me that houses are selling quickly, but my lunchtime run showed me nothing of the sort. So what then?
One street was totally encumbered by a giant hardscape truck. Four to fives cars accompanied the big truck and trailer. Lots of people at work, moving stone and block to a backyard. Gravel piled up along the edge of the lot. Another home had plywood laid down along the side yard with a path to the back for pool construction. Several other homes also revealed partially built pools. I noticed a gorgeous new deck and retaining wall in a home that I know was purchased about six months ago. Those new owners came in and overhauled the backyard, what a dramatic change! I saw a contractor moving lumber to a backyard with a new deck being built. Another home had about ten huge rolls of carpet on the lawn that had been pulled out to be replaced. I saw a few work trucks with ladders in front of another home. I saw signs in front yards advertising the companies who have recently installed landscape lighting, or irrigation, or done interior painting.
What I saw while I ran was that my neighbors in this community are improving their homes. Lots of neighbors. Lots of projects. I find this exciting and fascinating and very insightful. It’s exciting because I love a good before and after and I’m hoping I’ll see some of these awesome projects on the neighborhood Facebook page. It’s fascinating to me to see just how many people are having work done in their homes. It was staggering today. Once I noticed it and started looking around, it was everywhere! The homes on my side of the neighborhood are no older than seven years old, with some being as young as two or three years old. So it’s not like these are old houses that people must update or that things are breaking or in need of remodeling. No, what I saw was homeowners who are excited about the equity in their homes and comfortable putting money into their homes. They’re adding things to their homes to add even more value. They have seen the news, read my posts, talked to their neighbors who have sold…they KNOW that the market is hot. But they don’t want to move! Rather, they want to enjoy the opportunity to comfortably spend money and invest in their most appreciating asset. Their home.
I’d say my most asked question these days is, “So is the market slowing down?” I always answer no. I am not an economist and I don’t have a crystal ball. (I usually give this caveat in my answer). But I do study the market and the local stats. I don’t see a real slow down. Do I expect this drastic rate of home price appreciation to eventually taper off or plateau? Yes, probably. I do not, however, expect a crash or a bursting of any bubble, not based on the articles that I read or the information that I listen to and absorb. Inventory remains so terribly low, and until we have more houses to sell, a simple lesson in supply and demand tells me that homes will continue to hold their value or even increase. At least for now!
As I run up and down these side streets, I’m convinced many of my neighbors agree with my prediction. If they expected things to take a turn or their value to drop, I doubt there would be so many who are comfortable adding to their investment. I hear people talking all the time about refinancing their homes over the past year or year and a half. So many of us have taken advantage of lower rates, and either lowered our monthly payment or switched to a 15-year mortgage and started knocking down that principle balance quickly. It’s exciting. Who doesn’t like a lower monthly payment or to see a quickly diminishing loan balance? Those things make it possible for homeowners to explore projects that might not be feasible in a weaker market. Like a pool, a kitchen upgrade, a new shower in the primary bedroom, fresh carpet, built-ins, and more. As a homeowner in this neighborhood, I love the upgrades. As my neighbors upgrade and improve and differentiate their homes, I believe it adds to the value of my own home. We are all stepping up and elevating our homes. That is exciting! Maybe it’s just me because I’m in the business, but it definitely brings a smile to my face. Which says a lot when that happens while I’m running!
One final thought I’d like to drive home is that a strong real estate market doesn’t have to mean you should want to sell your home. Many of us don’t want to do that. Just because our home is worth a lot more than it used to be doesn’t mean we don’t want to live there anymore! Don’t get me wrong, I love to sell houses. I would LOVE to list more homes. As I mentioned, I didn’t see a single “for sale” sign during my run up and down the streets on my entire side of the neighborhood (and I live in a fairly large neighborhood). I’m always seeking new listings and thrilled to help homeowners who do think it’s the right time to take advantage of this market. Trust me, if you want to strike while the iron is hot…it’s hot! The market statistics support that and I think you’d probably be pleased with a discussion about your current home value. But if you find that you are like most of my neighbors and you are perfectly content where you are and not ready to move, then I hope you enjoy this strong real estate market. It provides peace of mind. It creates equity. Equity, in turn, creates options. Options give us the freedom to customize and personalize our homes to make home an even sweeter place to live.
My running needs a lot of work, but my real estate game is strong. If I can help you by talking about home projects, home value, or anything home-related, please don’t hesitate to reach out.
