They call them forecasts and predictions rather than facts for a reason. Nevertheless, when we asked some prominent local realtors what they saw coming for the economy and their business, there was considerable consensus.
Following a somewhat tepid start to the year the market heated up through the second quarter and now appears to have decelerated somewhat sense. While home ownership remains the best method of building wealth, obstacles to first time buyers remain. Relatively high prices and lack of inventory continues to define the local market, with most of the current sales volume occurring in the middle range, with properties at the high and low ends of the spectrum continuing to under-perform. Nationally while talk of a possible recession has everyone on cautious footing, Pasadena remains somewhat “self-contained”, with local housing fundamentals still strong, and the outlook generally positive.
“There is no doubt that the national economy is shifting. We are perhaps coming toward the end of a frenzied market. Next year … our real estate market will bring higher expectations and greater importance on listing preparations and the realtor’s ability to guide a seller through that process.” —LUCY MAO COMPASS REAL ESTATE
“The good homes that are priced well in good areas will continue to sell quickly, and more than likely in multiple offers. There is an influx of buyers from the Westside of L.A. who are seeing how much more they get for their money here [in Pasadena], in addition to much higher quality of life! The secret is out!” —TIM DURKOVIC DOUGLAS ELLIMAN
“The sky isn’t falling! 2020 is going to be all about managing expectations, for both sellers and buyers. We have a strong economy, the unemployment rate is historically low, interest rates are still at historic lows, and we have a ready, willing, and able buyer pool. This is a great time to be selling.” —LAURIE STANFORD TURNER COLDWELL BANKER RESIDENTIAL BROKERAGE
“The real estate market will continue to be strong as we move into 2020. Low inventory and low interest rates will keep fueling the competitive market. The internet and digital marketing will be more abundant and a stronger force in the industry.” —ED AFSHARIAN DEASY PENNER PODLEY
“Our Instagram and HGTV buyers are obsessed with new. They will pay a premium for a brand-new or newly renovated property. Homes as new as 7 to 10 years old are considered old. Buyers at all price points have no desire to do any upgrades or renovations.” —ANNIE CLOUGHERTY COMPASS REAL ESTATE
“We know the public has been hearing a lot of chatter about an upcoming recession. However, we believe that the real estate market in 2020 will continue to remain fairly stable. Believe it or not, during three of the four recessions prior to 2008 the real estate market actually appreciated.” —GEORGE AND JENAN MUSULLI COLDWELL BANKER RESIDENTIAL BROKERAGE
“U.S. and California tax implications, as well as the ripple effect from global economic and political uncertainty, have impacted the whole of the real estate market, specifically the high-end, which has seen a significant 18-month correction.” —RITA WHITNEY THE AGENCY
“While I still feel this is a relationship-based industry, the ability to communicate and do business using many different devices, the advent of automated valuation platforms, the ability to work remotely using video to convey your message, and social media marketing have all upped the ante for realtors.” —DONNA BAKER DOUGLAS ELLIMAN