Crazy, Crazy Market

 

It’s been 269 days since we pulled our kids from their schools on March 8, a few weeks later than many of their friends and a couple days before their schools officially closed. What a crazy year, that’s all I can say.

 

It has been a crazy year in real estate as well and buyers are facing an uphill battle with low inventory and extreme competition. New construction used to be easier and most times, buyers had a choice and some leverage when it comes to negotiation, however that is long gone. With Covid-19 restrictions in construction, most builders are struggling with their timelines and this has resulted in releasing only a couple of lots every month. For the first time in a very long time, we are seeing offer reviews and escalating prices in new construction as well. If I told you a year ago that a new home in North Bend would cost you over a million without any upgrades, you likely would have laughed and told me that I must be kidding. Well, that is the reality in today’s world.

 

Why would one buy a home right now then? Why not wait until things cool off a bit? Well, the thing is… I have clients that have waited, and waited and as they save money for that bigger down payment, the home prices keep climbing and nothing really changes in the financial equation, with the exception that $800K is now a million. No, I don’t know what future holds, I wish I did, however history shows that a home will build equity long term, no matter what, and in general I would say it’s better to pay your own loan rather than your landlords.

 

What I wanted to say, was that real estate did not stop with Covid-19. It slowed down drastically in March and April but has since darted to a frenzy that does not show any signs of stopping, not even in December, the time of the year that people usually think about other things than buying and selling homes.