Sept. 30, 2019

This paid piece is sponsored by The Tony Ratchford Group.

By Tony Ratchford

The Argus Leader front-page headline Sept. 23 was “Tax growth beats expectations.” The article gave a rousing economic report for the city of Sioux Falls and surrounding area.

According to the Sioux Falls Finance Department, sales tax revenue for August increased 11.7 percent over the previous year, a 25 percent increase over expectation for the 12-month rolling average.  The four-county area added 2,000 jobs in June and July, and the unemployment rate is 2.1 percent, one of the lowest in history.

This level of employment creates greater demand for employees; consequently, wages are rising and household income is increasing. According to a recent article in The Wall Street Journal, the national rate for wage increase over last year is 4 percent. People are earning more, saving more, spending more and feeling better about their lives.

In April, the total number of homes sold in the Sioux Falls area for the year was down 20 percent from the previous year. Sales have rebounded, however, and there is a good chance we’ll end up with as many sales in 2019 as in 2018.

Mortgage rates remain low and are just under 4 percent for a 30-year loan and around 3.5 percent for 15 years. It appears there is little chance of them rising in the near future.

This economy is equal, if not better than, the 1980s market, which sent us on a 20-year largely bull market. Talk of a recession is pure nonsense. An economy driven by labor will always thrive. When people work and earn money, everyone wins!

That means sales will continue at a solid pace, prices should stay flat or increase slightly, and real estate ownership will still be a good investment as well as a place to call home. A caveat to all of this may be the world of political rhetoric. Some people, hoping things to be different, may convince enough people things aren’t as good as they appear, which can develop into a high level of uncertainty and, therefore, affect consumer confidence and people’s willingness to spend money.

The Ratchford Group continues to be optimistic and believes a good plan for buying and selling is essential for the best outcome. We have developed a process that will help you maximize your dollars, save you valuable time and give you peace of mind knowing you are doing the right thing at the right time.

We invite you to call or text at 605-359-4100.

“Before anything else, preparation is the key to success.”

                                                                Alexander Graham Bell