If one thing defines the real estate market in 2019 I would say “buyer frenzy” driven by consistently dropping interest rates. Feds dropped their yield by nearly 36% in 2010. Now, this
Real Estate Wrap Up For El Paso TX 2019 Dated 01162020
If one thing defines the real estate market in 2019 I would say “buyer frenzy” driven by consistently dropping interest rates. Feds dropped their yield by nearly 36% in 2010. Now, this is unprecidented because it was actually driven by a healthy economy this time. The last time we saw this kind of activity from the fed it was caused by the mortgage bubble and compelled out of desperation for economic survival.
So what did the buyer frenzy do? It lead depleted resale inventory, leaving on the market only overpriced homes. Or homes that had skeletons in the closet that came out on title, inspection or appraisal. Now I want you to hold that thought.
Because coupled with the fact that builder suffered a short time of labor shortage, this drove buyers needing a home now, back into the resale market. Buying over priced homes which then lead to a synthetic inflation in resale value.
Of course as you can tell, the labor shortage problem was quickly acclimated and remedied by increase in wages.
Now back to the inflated prices of resales, appraisers had a hard time wrapping their head around that, but where demand goes price follows. Many deals bomed, the dust settled, at the end of the day resale prices kept rising.
Now, seller’s don’t get discourage, these outrageous Day on Market times are the equivalent to getting an F on your report card. So those are inflated as well. How do I know the buyers are still out there? All you have to do is look to the east and west of El Paso to notice the growth is exponential. People are still purchasing and 2020 is going to be an excellent time to buy or sell a home. The reduction in interests amoratized over a 30 year term is more than compelling when compared to a homes inflated value. And because we have a more educated consumer that can understand this, the market will push forward.
Thank you for reading El Paso, if you have any questions I can be reached at 915-525-7556.
As an El Paso native with an intimate understanding of El Paso's Geography and climate, I look forward to putting my years of experience and expertise to work for you. Honesty, integrity, work ethic a....
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