Final Thoughts

Final Thoughts-

Week of October 19th, 2020 in Review Continuing Decline in Unemployment The US unemployment rate declined to 7.9 percent in September 2020 from 8.4 percent in the previous month and below market expectations of 8.2 percent, as fewer people were looking for jobs. The labor force dropped by 0.7 million to 160.1 million, with the number of unemployed persons falling by 1.00 million to 12.6 million and employment rising by just 0.3 million to 147.5 million. The jobless rate remained well above prepandemic levels as the recovery from COVID-19 shock showed signs of slowing amid diminishing government stimulus and a spike in new cases

Builder Confidence Reaches Another Record High The National Association of Home Builders (NAHB) Housing Market Index rose from 83 to 85 in October, marking the second month in a row that it has set a record high. This report is a near real-time read on builder confidence, and any reading above 50 on this index that goes from 1 to 100 signals expansion.

All three components of the index were positive, with current sales conditions rising 2 points to 90, sales expectations in the next six months up 3 points to 88, and buyer traffic remaining unchanged at 74.

It’s important to note that builders have said that they are being challenged by a lack of land, labor, and seriously spiking material costs.

John L. Scott Real Estate Columbia Basin Region

Final Thoughts

Interestingly, new homes that were sold but not started yet are up 69%, which shows how strong the demand has been. September’s increase in both Housing Starts and Building Permits will help to meet some of this demand, but there is so much more demand than supply right now that many more homes are needed. The imbalance will continue to support home prices.

The above comments are from a national point of view; however, they reflect what is happening in our region as well. Housing is leading us out of this slow down caused by the pandemic in both single family and multi-family categories.

Other Real Estate Categories-

Commercial Sectors

Office – in our area it appears that projects started will finish, those that are not started are on hold until we can see more positive energy to move back to an office setting vs. stay at home. This is true except for Medical which leasing and sales are still moving forward.

Retail – in our area this type of building is mostly on hold. Our discussion has been in the area of small strip malls with provide services to regional neighborhoods.

Industrial – These properties have plenty of capacity and limited interest in leasing or sales.

Office Warehouse – This is another bright spot in this category. Particularly with building that offer approximately 1500 sq. ft of office and an additional 5000 sq. ft of warehouse space.

Conclusion –

We hope that this give you an overview of what is happening in our area in various real estate categories. The key point is housing is driving the real estate market. If you interested in finding out what your home or commercial property is worth, give us a call.

Stay Safe and Healthy Dennis D. Gisi

Disclaimer: This information is only the opinion of the author and does not reflect an opinion or research of John L Scott. Past Performance is no guarantee or indication of future results.