As we come off of this previous weekend at Leaders in Luxury, we wanted to take a moment to reflect on the event, the lessons we learned and how this relates to October’s Luxury Market Report.
This year’s event focused on addressing the concerns of ‘the winds of change,’ claims of
a slowing market to forecasts of recession by 2020.
However, in her opening statement, Institute President, Diane Hartley, stated that she believes 2019 will actually be a year of opportunity for both sellers and buyers provided that they remain agile, innovative, and adaptable to their local market influences.
Attendees also got the opportunity to hear from Leslie Appleton-Young, Chief Economist for the California Association of REALTORS®, who offered a fresh perspective: From Great to Good.
Leslie worked to highlight all the possible variables including inventory and pricing, to equity and inflation. She detailed exactly what would impact a market and sought to give a clearer insight into why real estate was not in a crisis but merely finds itself moving from “Great to Good”.
Leslie offered the advice, “investment in real estate needs to be viewed over the long term – not just compared to the last month – only then will the story become obvious.” In fact, long-term statistics show that the market is now moving at a more even rate rather than at the rapid, overcharged pace following the market crash in 2008.
In the short-term single-family home prices have fallen as much as 5%, however, over the last 18-months, the median sold price has remained stable – right around $1.4 million. In the attached luxury home market the decline was a little steeper with as much as an 8% drop month-over-month, yet again a consistent median sales price of around $915,000.
The economies of Canada and the United States are considered to be in strong positions – so if employment is at an all-time high, unemployment is at an all-time low, there has been little change in inflation and consumer confidence is skyrocketing, then that begs the question, What is causing uncertainty in this housing market?
Download our Luxury Market Report to find out.
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