As a local market expert I often get asked by Buyers and Tenants, “What are prices going to do?” Well, if you ask 10 people that question, you will probably get 10 answers, most of them being varied. My response would be, “I have no idea”. However, I can tell you this. The market is extremely dynamic, Right Now!
If you back up three months, the take away from our Q1 report noted we had 39 properties currently on the market for sale, which at the time seemed like a lot of properties.
A couple of those buildings were functional buildings that were sitting on the market longer than would have been expected. For this reason, I thought that maybe we were seeing a leveling off on the latest pricing run.
If that had been my opinion at the time, I would have been proven wrong. Buyers are still buying and owners are still raising prices.
- Demand is high.
- Prices are rising.
- Inventory has remained steadfastly low.
With all that being said, there is a reoccurring theme in more of today’s discussions, which has to do with Federal Reserve’s ongoing threat of an interest rate hike.
We’re told the economy is on solid ground and the inevitable interest rate hike will occur. The repercussions of the interest rate moving further beg the question, “What are prices going to do?”
Either way, if your building isn’t moving, be it for lease or for sale, you may want to have it properly analyzed by an agent who is active in your specific market.
We would really appreciate a chance to talk with you about current market conditions and how your building fits into the mix. Whether it be us or another agent, make sure they are active in this market and it will surely have a positive impact on your bottom line.