2019 will be an exciting one for real estate. Rumors abound that it could be a bumpy-road; although, I believe it’ll be mostly about perception and even one’s state of mind. Forecasting the future includes a mixture of facts, opinions, and foundational elements. Here are a few thoughts to ponder in creating your state of mind.
In the Sioux Empire, when all numbers are finalized, 2018 will probably show a slight increase in home sales and home values from the previous year. The length of time a house stays on the market before it’s sold will have increased, and more homes than normal will be taken off the market before sold. Mortgage rates went from about 4% for a 30 year mortgage to 5%, but have now retreated to 4.5%. 2017 was record-breaking, and 2018 will be equally as good.
Escalating mortgage and interest rates, increased homes prices, a volatile stock market, early cold weather, and the cost of healthcare premiums are factors that have put many consumers on pause lately. In addition, the overwhelming negativity circulating in the world of politics and media has had a large effect on consumer confidence. People hate uncertainty. Our leaders in Washington appear more concerned about power than governing; the media loves turmoil and exploits it daily. Few, if any, are exempt from this folly.
Unfortunately, this may continue for a while. One solution is to accept the scenario and move on with our lives; ultimately, it will have little long term impact.
South Dakota has been fiscally sound for decades, and it will continue to be so. We have a very diverse industrial, farm, service, and retail base. All economic indicators are rock-solid with high employment participation and rising hourly wages. We also have traditional principles that have been handed down from the pioneer days, which continue to be a foundational stabilizer. Nationally, the GDP is 3% or so, and unemployment is below 4%. The future is looking like the 1980’s all over again.
The economic world in which we live is as sound as it has ever been. Mortgage rates are still historically low. Opportunities for a better life are within reach for everyone. There are no major indicators that suggest real estate or our local economy is anything but on firm ground.
The best Real Estate success is determined by knowledge and dependent on good planning; the better the plan, the better the outcome! Our Dream Home Process™ can lead the way.
We invite you to call or text…605.359.4100
Tony Ratchford, the Ratchford Group, Keller Williams Realty Sioux Falls.