It’s getting nice outside, and spring is in the air! Here’s what to expect from our 2020 spring market.
Historically, spring has been a super hot market, but will that ring true for 2020? Let’s look back at the last three months:
As far as sales go, December was extremely hot, and January followed suit. Salem saw double-digit year-over-year sales growth in January and February (16%). A similar story unfolded in the Portland Metro, as January brought 14% year-over-year growth. However, Portland Metro’s sales growth did slow a bit in February, achieving only 6%. Why?
It all comes down to inventory levels. At this time last year, we had almost three months of inventory, whereas now we’re hovering around 1.5 months’ worth.
Unlike Salem and Portland, Southwest Washington’s market has been relatively flat when it comes to sales volume. Heading into spring 2020, things are still looking great for sellers, as the low inventory will spur multiple offers. On the flip side, buyers will have their work cut out for them.
In 2019, we saw properties staying on the market longer, meaning 2020 sellers don’t have the increased value in their homes to list at outrageous levels. As a result, homes are flying off the market now.
Interest rates are unbelievably low at 3.5%, even 3.3%—cheap money. Here’s my spring prediction: The market will stay on fire. Buyers will have to get creative by exploring off-market properties.
The real question for 2020 revolves around Q4. What’s going to happen with the election? Traditionally, general elections slow things down just a tad. Overall, I don’t foresee interest rates rising, nor do I think the market will slow down that much, and the Portland Metro area will reap higher appreciation than in 2019 (not double digits quite yet, but probably around 5%).
If you have additional questions about the information covered in today’s message or you’re interested in buying or selling a home, feel free to call or email me. I would love to speak with you.