2019 Year In Review & 2020 Predictions

Happy New Year! I can't believe we are almost to the end of January already. 

I wanted to sit down and share some thoughts on the past year and what we see for 2020 housing market. 

2019 saw a roughly 1.9% decline in sales due to lack of inventory in Salt Lake County. On the flip side, prices continued to increase (approx 7% across Salt Lake and Davis county). The Fed also lowered the key interest rate multiple times which triggered a lot of buyers to flood the market. At the same time, we saw Multiple Offer situations hit a 10 year low! What are we to make of this? From my perspective, many buyers have been pushed to their max budgets and thus are much more discerning with what they want in a home. Since 2014 - we've seen multiple offer situations take off. Buyers may just be burned out! That being said, many of our buyers have seen great success in this market. Like many things in life, it takes grit, work and strategy to succeed in this market. 

In 2020 we continue to see favorable economic conditions and tight inventory. What does this mean? Many of our sellers are sitting on a nice chunk of equity while a lot of our buyers are struggling to find a house in their budget. While frustrating, it really does drive home the point that if you are able to get into the housing market - DO IT. Don't be on the outside looking in. Rent prices continue to outpace incomes which make buying a much smarter option for many people. 

It's hard to predict what 2020 will bring. I think there will be a lot of noise from the upcoming election. 2016 was one of the weirdest markets I ever lived through (maybe it's just me). Expect sentiment to swing based on polling and debates. Depending on the volatility, this may cause the average Days On Market to increase as buyers become more cautious. It could also have the opposite effect if US Housing shows as a safe haven to investors. Keep an eye on your long term goals. 

As always, it's an honor to serve and work for you. Thank you for allowing me to do what I love! 

Check out the cool video we put together to recap our 2019. https://www.facebook.com/utahdreamsrealestate/videos/502803663684056/

Cheers, 

J