“Sarah, what do you think the market is going to do in the years ahead?” is a question I get asked regularly and often. When that question IS posed I like to ask about what part of the market the person is interested in learning more about. Often knowing where the personal interests and desires “lie” is the best means through which I can deliver the most meaningful answer. Someone who is an investor most likely views a trade of a home via a different lens than that of someone buying a home as their primary residence. My conversation with a first-time buyer will be different than that of one with a downsizer.
Where my clients are in life and what lies ahead for them plays a huge part in how we frame our conversations. Where do they see themselves in five years? Will their family be growing? Will grandkids be in the picture? How do THEY see their lives unfolding in a house they are contemplating buying. For that is usually the integral piece when throwing it into the canvas of what the macro and the micro-market will be doing. I am a bit of a nerd who loves to consume all things real estate market-related. I can tell you what the mean sales price is in your area, the average days on market, the number of spending, solds etc but at the end of the day the main concern about “how the market will be doing” is how do YOU see yourselves playing a part in that market.
Prices will remain high and supply, while increasing, will remain low for a while. Price appreciation will decelerate. It has to. But what we are dealing with right now is a disconnect between supply and demand. We were 2.5 million units short in the US BEFORE Covid started and with the shortage of supplies, lack of labor and epic high demand, fueled in large part by millennials, it will take a LONG time for supply to hover near demand. Those are the trends we are likely to see but what I like to drill down on with my clients when they get tied up in the ups and downs of the market is how do THEY envision their “best life” within our real estate market? Once we lay out the vision, we can bring the perfect and “fiscally prudent” home to fruition!!! Check out my “thoughts ” on this popular question in my video shot from the porch of my recent listing on the East Side of Providence .
Stay well and keep envisioning those dreams!