Stay Focused S3 Ep6: Your Biggest Real Estate Concerns
This week Erik & Randal take a look at the headlines and see if there's fake news or fact news about the real estate market.
Erik: Welcome to Stay Focused. Focus Real Estate's weekly video series and welcome to February. And this week, we want to talk about what are some of your biggest concerns in real estate.
Randal: I know it's always kind of fun to reflect back a little bit and to talk about what we're hearing from our audience, our clients, our customers, our friends, our neighbors, and a few of the questions that they've been asking lately.
Erik: So we want to pull out our crystal ball and see if we can answer some of those questions and concerns.
Erik: And demystify that.
Randal: Yeah, I guess so. I know, we should have brought a crystal ball today. Anyway, the biggest question that people are asking us is what is 2019 going to bring? What is the real estate market going to look like? There's a lot of concern around a recession happening in the United States. And what we really want to clarify is the difference between a decline in the housing market and a recession and what that means.
Randal: When you hear economists talking about recession, they're talking about growth in the GDP. Okay? So they're not talking about what's happening in the real estate market. So we want to first of all talk about that. And then actually talk about what's been happening and what we see as far as some of Erik's favorite terms are.
Erik: Economists, when they're studying the general real estate market and the economies, they actually report on lag indicators.
Randal: So it already happened.
Erik: So they look at what's happened, the job report numbers, the GDP, what it was last month. And they report on that and then predict from there. As real estate professionals engaged in the exercise of real estate, talking to buyers every day, talking to sellers every day, doing open houses-
Randal: Hosting open houses.
Erik: Answering the phone, answering questions, those are lead indicators. What does it look like is happening? Based on what we see the activity that's happening right now.
Randal: And based on what we've been seeing through the late fall and early winter markets is that there's still very strong foot traffic to begin with. Lots of phone calls asking about information on properties.
Erik: And even multiple offers still on property.
Erik: Inventory still remains very low.
Randal: Interest rates are still very low.
Erik: And lots of inquiries from buyers and not a lot of sellers and properties coming on the market.
Randal: So we still have a lack of inventory.
Erik: So big takeaway is when you're listening to the news, be aware that what you're hearing is some of the predictions based on what's happened and not necessarily what's happening right now in our local market.
Randal: Indeed. And those sound bites are made to get you to listen.
Erik: Exactly. And grab your attention. So if you want more information, give us a call or drop us a line. We will let you know what we're seeing right here and now in our market and what it looks like going forward. And be happy to help you with the most up to date information so you can make the best decisions possible for yourself.
Randal: Absolutely best way to be an educated consumer is get the information you need. So please give us a holler and let us know how we can help you out.
Erik: Yeah. So thanks for watching. Don't forget to like us on Facebook.
Randal: Subscribe to our YouTube channel.
Erik: And until next time, Stayed Tuned and Stay Focused.
Randal: Stayed Tuned and Stay Focused.
Randal: What are you laughing about?