Monthly Value Message – October 20

Year To Date Closed Residential Sales (SCASD/BASD/BEASD/PVASD) January 1 – October 8

2019……………..1135 Closed Residential Property Sales

2020……………..1028 Closed Residential Property Sales – Down 9.5%

Back in April/May of this year we were down 25% in closed sales, a solid comeback.

1. Real Estate Information From Todd.

I feel the need for some normalcy….so going back to the Standard Monthly Value Message Emails with monthly prize and a “Where’s Todd” prize.

As an additional service I will be producing the…….

Real Estate Reality Video Series.

These videos will be delivered a minimum of once a quarter.

2. Last Quarter 2020 and Looking Forward to 2021….What Do The Tea Leaves Indicate

As my long time clients know, forecasting the future of anything is to be offered with a grain of salt.

That said and with salt included….a few observations for the near future:

1. Based on the Sale Pending data above, we could end the year only 5% below last year in total closed Residential Property sales. With an Active Global Pandemic for nearly 10 of those months…..that would be amazing.

2. Possible Upside: Inventory Levels and Mortgage Rates

Property Values are directly affected by supply and demand. When we look at the total numbers of properties for sale, inventory has been running below last year. Combine that with the lowest Mortgage Rates since the beginning of time and it would be difficult to predict falling property values in the near term.

3. Possible Downside: Multi Year Recession

It is difficult to predict the “Covid Economic Recovery”, while we are still in the middle of it. That said, if no further substantial Federal Relief is provided to the industries most affected and to the hardest hit families, the overall economy could be in for a multi year recovery. Additionally, there are some indicators that point to higher inflation rates once a successful Vaccine is found and Covid moves from the forefront of our daily lives. Unemployment rates above 7 to 8%, combined with annual inflation rates near or above 2.75% could cause significant downward pressure on overall economic conditions and reduce demand across broad sections of our economy. Centre County property values would not be immune.

With history as our guide and a little more salt…..At Least We Live in Happy Valley!!! It seems no matter what happens all around us(state/national/global), we generally don’t get hit as hard or fall as far as other regions and we recover quicker.

The past in no assurance of the future, but Happy Valley is still the place to Live Happily Ever After.

3. Where’s Todd?

The third person to respond via email with the correct location of this photo wins a $10 Panera gift card.

Hint…it will always be somewhere in Centre County.

This Month’s Prize….

2 winners will each receive a $50.00 Gift Card to the State Wine and Spirits Store.

“It was one of those March days when the sun shines hot and the wind blows cold: when it is summer in the light, and winter in the shade.”

– Charles Dickens