2016 year end sales were down 4% from 2015 numbers. That’s it. We are done clawing our way out of the recession. Our double digit annual rise from the ashes is over. So what’s next? Where does the market go from here? What is the future of real estate? Predicting the future would be so much easier if I had a crystal ball. Instead, I am forced to look back, reflect and anticipate what may be. Doing so, however, leaves me pondering the question, does it really even matter?
A Look Back
2006 saw Summit County’s strongest sales with nearly 2500 for the year. 2007 was still a strong year with a minimal 9.8% drop in sales from 2006. In 2008, our inventory levels were building and sales were lethargic. By fall of 2008, the recession had hit Summit County.
Drawing parallels to the past, if 2015 was our peak sales year and 2016 was still a strong year with a minimal 4% drop in sales, what does that mean for 2017? Perhaps it’s just a little down turn like that seen in 2001 and 2002. Perhaps it’s not the sign of a down turn at all but just a hiccup brought on by the lack of properties for sale. Unfortunately, I think it’s impossible to know for sure if our market will continue to be strong with rising prices or pull back in 2017. We will have to let a few months pass in 2017 and take another look to see if any type of pattern has emerged.
It’s a Cycle
Buyers and sellers need to understand that the market will have its ups and downs, but in the future of real estate, property values will continue to go up. People that bought property during our peak years of 2006 & 2007 bought at the top. The market came down after that, but now values have come back to or exceeded previous highs. It’s a typical real estate cycle. Timing the market is difficult at best and leaves you standing on the edge of the pool waiting for the right time to buy instead of jumping in and making the most of it. If your goal is a long term investment, now is as good a time as any. Come on in, the water is great!