There’s been a lot of talk lately about the market “slowing down.” Everybody knows the market goes in cycles, so a slowdown is inevitable right? Well, that depends on how you define a slow down.
‘Over the past 5 years, the market has been increasing at an impressive rate. Not as impressive as the craziness we saw in 2005, but impressive none the less. Over the past 5 years, our overall market has been increasing at an average of 7% per year. That’s great news for any homeowner. This increase has been driven mainly by demand in our market. So many people continue moving here from all around the country. Especially from cold weather states and also California. It seems people are getting tired of dealing with shoveling snow in the winter & getting taxed to death in California.
Enter 2019. We’ve been on a great run, and it has to end sometime right? Not necessarily. It seems our increase has decreased to an average of around 5.8% per year. So yes, 5.8% is a lower yearly gain than 7%, but 5.8% is still a great return on your home investment!
So is the market “slowing down?” It’s all relative. I’m sure any homeowner would welcome a 5.8% increase per year as opposed to the market heading in the opposite direction. This is a natural market correction within a healthy market. Small corrections like this are a good sign that we are maintaining healthy levels of growth.
So, when people say the market is “slowing down,” tell them that you will be happy to take their 5.8% gain every year!