By Carrie Struss, December 30, 2019
This coming year the housing market will be defined by 3 things- inventory, interest rates, and appreciation. But the biggest issue the housing market will face in 2020 is an inventory shortage. There aren’t enough homes on the market for buyers, especially on the lower end of the market. This is a topic that has come up frequently within the past several months.
Based on what is forecasted, we know that interest rates are projected to remain low and that appreciation is expected to continue as we move into 2020. Additionally, the upcoming election will provoke many unique perspectives on the health of the US housing market. The challenge will be understanding what is actually happening and how you can best position yourself if you are thinking of buying or selling your home.
Here are several perspectives to consider on the inventory issue facing housing next year
According to realtor.com
“Despite increases in new construction, next year will once again fail to bring a solution to the inventory shortage that has plagued the housing market since 2015. Inventory could reach a historic low as a steady flow of demand, especially for entry level homes, and declining seller sentiment combine to keep a lid on sales transactions.”
Diana Olick at CNBC
“Inventory has been falling annually for five straight months, after it recovered slightly toward the end of last year, due to a spike in mortgage rates. Rates began falling again by spring of this year. Homebuilders have been increasing production slowly, but it’s not enough to meet the increasingly strong demand.”
George Ratiu, Senior Economist with realtor.com
“As millennials — the largest cohort of buyers in U.S. history — embrace homeownership and take advantage of this year’s unexpectedly low mortgage rates, demand is outstripping supply, causing inventory to vanish. The housing shortage is felt acutely at the entry-level of the market, where most millennials are looking to break into the market for their first home.”
Bottom Line
The most important thing you can do is understand what is happening in your local market. You may not be able to avoid some of the issues brought on by low inventory, but you can be educated and prepared. Let’s connect and discuss the options that make the most sense for you and your family.
Carrie Struss
Broker | OR & WA
She/Her
Carrie brings eight years of experience as a Licensed Broker in Oregon and Washington, combining her industry expertise with an eye for detail honed through her degree in Commercial Photography.
Her career began with one of her proudest accomplishments: relocating to New York straight out of college to work as a photo producer, where she never settled for an entry-level mindset. It is this same tenacity that has helped make her the top producing agent at Living Room Realty in the Vancouver, WA area since 2021. This accomplishment is a testament to her unwavering commitment to client success.
Throughout her career, Carrie has had the privilege of assisting over 100 homeowners achieve their real estate goals. What sets Carrie apart as an agent is her empathetic approach, ensuring that every client feels heard and understood throughout the buying or selling process.
Carrie has lived in the Pacific Northwest since 2017, though she’s been visiting the area since her teenage years. Beyond her professional life, Carrie finds peace and joy in nature, spending summers by the river and winters in Hawaii. Amidst her successful career, Carrie's greatest joy is her son Jack, who brings boundless love and inspiration to her life.
As your agent Carrie will…
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- help get your home (and emotions) ready to sell, then sell your home.
- find you a new home complete with (fill in the “must have” blank).
- facilitate the transaction making sure everyone does what they need to do and has what they need to do it.
- negotiate tenaciously for you.
- educate you on the daunting, overwhelming, and at times stressful process.
- remain calm, always.
- keep you focused on your goals.
- pay attention to every detail.
- show up.
- effectively communicate in the way that works best for you.
- uphold Living Room Realty’s values and what they mean to her.
- T: 503-953-0850
- carrie@carriestruss.com
