|If ever there were a market metric that dictates price, it would be supply and demand. Generally if the supply is low and demand is high, prices rise. Of course the opposite is also true. Our real estate market is currently a perfect example of low supply, high demand, and rising prices. Fortunately, although prices are up, it isn’t at meteoric levels….it’s reasonable and sustainable. More good news is that as the majority of our sales are cash with the balance being those that simply are taking advantage of low interest rates, we have a stable strong buyer base that isn’t highly exposed to market blips. I do not see this market going backwards or sideways for the foreseeable future. Why? Because behind the strong baby boomer generation currently buying into this market we have the Millennials, a generation that is coming into home buying maturity and dwarfs the numbers of baby boomers, or any other generation for that matter. We could in fact see housing continue to strengthen for years to come simply for this reason; lots of buyers. Closed sales on 30A have slowed just a bit because there is so little to sell. We need sellers. This dynamic continues to support and lift prices…although moderatly. I have buyers that ask, “is this market at it’s height”? Although I’m not a soothsayer, I don’t think so for the aforementioned reasons. Simply because prices are higher than they were the year before, or the year before that, doesn’t mean they won’t continue to rise. But remember, buying at the beach first and foremost should be done because you want a home at the beach to enjoy with speculative appreciation being second. If you like real speculation without any real use case like real estate offers, stocks, bonds and metals serve that purpose. So let’s get to some highlights…..
Clearly there is a correlation between price increases and inventory depletion. Unlike the roaring mid 2000’s, people buy homes here now because they want a beach home and are not flipping for profit, hence, I do not foresee a mass exodus of sellers and prices should continue to rise at a moderate level with demand staying strong and supply being low. If you are a buyer, a purchase now would be better than later if you can find the right fit. Contact me, I’ll find the right fit.
Feel free to call or email me any time with questions or comments.