Over the past few months, we’ve seen a significant shift in our real estate market. Interest rates have gone up, come down, gone up even more and recently receded a little. Inventory is still low and buyers are being pickier. Gone are the bidding wars on every home; they have now been replaced by multiple offers on some properties while others languish. Days on market have gone up but still there are few homes on the market.
What we know
· The market has slowed significantly.
· Home prices have leveled and, in some areas and categories values have dropped.
· High interest rates and inflation have had an impact on cooling the housing market.
· Multiple offers have disappeared except when they haven’t (there are always exceptions).
· Low housing inventory continues, and will for the foreseeable future.
· The crazy-hot seller’s market was not sustainable.
What we don’t know and a couple of things we do
· Will the Fed’s high interest inflation strategy work? Early indicators are it might.
· Will home values crash? We are not seeing evidence this will happen.
· Is it a good time to buy? The old saying is, “The best time to buy is when everyone thinks it isn’t.”
· Is housing a safe investment? Look at data for the past 50 years. It is! Plus, you get to live in your investment.
What’s in the future?
2023 will be a pause or transition year but the market will still continue to be solid. 2024 is being projected as a rebound y
ear and back to the hot seller’s market, but maybe not so crazy as what we’ve seen the last two years.
Interest rates are also projected to fall back to more reasonable levels over the next two years. Be prepared that it could happen sooner.
More than ever, I’m hearing buyers and sellers are looking more closely at the experience level of their agent before choosing who they might work with. When the market was hot and blazing, that consideration seemed less important. It wasn’t, but it seemed so. Now, experience in marketing and negotiating skills are more relevant.
How do I navigate these perplexities? That’s easy – call Boyd! I can answer questions and discuss successful strategies to help you make great decisions.
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