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Momentum Building on the Economic Recovery

May 13, 2021 | By Dara Giddings
Momentum Building on the Economic Recovery

If you have been in the housing market for the past few months, or if you are even in a neighborhood social media group, you have probably encountered the struggle of houses moving on and off the market very quickly. Stories of houses being bought sight unseen because buyers have missed opportunities or had offers rejected.  Everyone in my circle is concerned about the real estate market and I believe that there is a general belief that as the economy goes, so goes the real estate market. However, that is not what happened last spring when the pandemic hit. Everyone anticipated that the real estate market would falter, but the market paid little attention to the overall economy as the housing market went on a tear.

While it is my belief that the real estate market cannot continue to grow at the current rate, my “guess” is that it will come back to earth via a “soft” landing, especially if the economy grows as this article from FloridaRealtors.org suggests that it could. A strong economy could, however, encourage a prolonged Seller’s Market like the one we’ve been experiencing. A seller’s market happens when the number of buyers exceeds the number of homes for sale. This means that buyers have fewer homes to choose from, which in turn leads to less competition amongst sellers. These market conditions may inspire bidding wars amongst buyers, driving up the sale price and giving the seller more negotiating power.

But within the broad economy, we are also seeing the recovery picking up momentum. As vaccination totals increase, more businesses are re-opening, and things are looking up across the board. With increased vaccination rates, many office jobs are requesting their employees return to the office, this then increases the business at lunch counters, fast food locations, and other convenience businesses. According to FloridaRealtors.org, “The bounce-back has been swift. In March, employers added 916,000 jobs – the biggest burst of hiring since August. Meantime, retail spending has surged, manufacturing output is up and consumer confidence has reached its highest point since the pandemic began.”

The U.S. housing market is 3.8 million single-family homes short of what is needed to meet the country’s housing demand, up 52% as compared with 2018’s shortfall, according to a new analysis from mortgage-finance company Freddie Mac. In 2018, Freddie Mac had estimated that the housing market was 2.5 million units short of what it needed to meet long-term demand. The new estimate is as of the end of 2020 and it emphasizes the severity of the housing supply. While there is no guarantee how long this current seller’s market can last, experts don’t see a dramatic shift until new construction can increase the listing inventory.

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Sold our home in less than 3 weeks and above asking price. Will be using him again to sell our other home in the very near future. You wont be disappointed in selecting Chuck and his team, I recommend you start packing once you bring him on board.

Bob

Kyla helped me find my perfect home. She was helpful, knowledgeable, and most importantly, she listened to my wants and needs! We searched until we found my perfect home. She stayed on top of the inspections and mortgage broker requirements until closing day. I could not have chosen a better  partner for my home search. Thank you, Kyla! You are a rock star and I could not be happier.

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Chuck is just the best! So friendly, helpful and quite the funny guy 🙂 we loved him ?? and after all of our shenanigans, house to house to house to house……he was so patient and would even tell us if he thought we were in over our head. Sometimes we saw “a little fix here and there” but chuck  saw a headache! He’s not in it for a quick sale! That’s why, we’re going to buy another house! We purchased our house a little over a year ago but we’re ready to move on….I’ll be call you soon Chuck!

Jess & Colin

Words can never express how much I enjoyed and loved working with Kyla. For me, I never wanted to work with a realtor due to fears of them scamming me and just “talking a good game”. Kyla eased that fear the very first time we met. She was personable and she answered questions in a way that made  you actually answer your own questions in order for you to be the sole driver of the process while she copiloted and snatched the wheel when need be. Lol. She was available when needed most and very understanding when questions came up in the wee hours of the night. Would I recommend her, ABSOLUTELY!! Kyla thank you again for all that you’ve done for my family and I! YOU ROCK!

Kevin

Kyla was excellent. She was very kind & understanding. The closing on my home was a mess! Everything that could go wrong, did go wrong. Kayla sat with me the entire day at the closing office waiting for a wire transfer. She made a difficult day much easier for me. The purchase of my new home was  swift & easy bc of her. She also made sure that I won the bid on my new home with a secret she uses, as there were 5 offers!! I would highly recommend her to anyone buying or selling.

Debi

Chuck was everything you could ask for in a realtor – smart, responsive, thorough and genuinely kind and honest. After meeting with other realtors, we were so happy we went with Chuck. He really listened to us, gave us sage advice and made the selling process a breeze. Doesn’t get better than that!

Stacey

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