It "May" be the Best Spring Market in Years

People ask, "Evan, how is the market?" Thankfully, in the last few months, my answer has been "great." I go on to say: inventory is moving, prices are holding steady, multiple offers are occurring, interest rates are low and most important, consumer confidence is up. I see it in real estate and in spending in general. Many people I talk with are experiencing the same "uptick," regardless of what industry they are in. When consumers feel comfortable, the economy is better.

For years all one would hear about real estate is how bad things are. Well lately, I am sure you would agree, we are hearing better news. As houses sell, other areas improve as well. People buy furniture, appliances, lawn supplies, paint, ... I am sure you get the picture.

Real estate is a great barometer for the rest of the economy. I understand and agree that this is more of a localized theory, but it holds true wherever real estate is strong.

Another area of the real estate market that is picking up is the investment side of the business. More and more investors are ready to buy rather than sit on the side and watch. They too are seeing an increase. However, investors are looking at it from another angle. There is still a side of real estate that is not as strong. That lies with the buyers with higher debt to income rations, lower credit scores and a short work history. Banks are still firm with this type of borrower and therefore many of these folks can not buy yet and are renting. This is really strengthening the rental market which in turn is helping these investors come out of the woodwork to buy.

So overall, buyers are buying, sellers are selling, banks are a bit tighter, which is a good thing for our economy, people are renting. All in all, real estate is improving.

So I am confident this trend will carry on into May.

I can be reached at evan@brodergroup.com with any questions.