I recently came back from the annual Keller Williams conference held last month in Austin, Texas. I was very interested to find out how other agents and teams were doing in all other parts of the country. Going in, I was under the impression that Colorado was a bit of an anomaly. Denver was being touted as the number one real estate market in the country by Money Magazine, MSN, and Fox News so I maybe I wasn’t aware of how bad it was across the rest of the country. I would hear stories from people relocating to Denver and they would always tell me how bad their market conditions were back home.
I’m pleased to announce that all I heard was good news. For three days, one agent or team after another stood on stage and talked about their improving market conditions. From Champaign, IL to Scottsdale, AZ, everyone was expounding on their record low inventory, rising home prices, multiple offers and fewer days on market. Even our friends in the hardest hit states like Arizona, Florida, Nevada, Michigan and other parts had a terrific progress report. It wasn’t all roses; many admitted that it’s not great yet, but it sure was a lot better than the last four years.
We heard from real estate teams that are doing 120, 150 and 200 plus transaction a year. Their sales volume has reached as high as 150 million in total sales. This is good news for the entire economy. In fact, when you look at the formula for a total recovery, all the elements are here today with the exception of jobs. We have low inventory across the nation, low interest rates, and a stable banking system. If we could just add jobs to that list, then we would be in position to have a total recovery. Because we have not been able to add jobs to the mix, some people are still skittish about the market. For many, the current real estate recovery feels false or at best, unstable. That perspective would not be wrong and most would agree that jobs are the final piece of the puzzle.
In closing, after listening to several economists on the topic of the real estate market at our conference, all had a very positive outlook for 2013 and beyond. Apparently, homebuilders agree because new home starts are dramatically up across the nation. All good news!
Dan Polimino is an Owner/Broker with Keller Williams Realty DTC. He can be reached at firstname.lastname@example.org