Happy 2023!

2022 was definitely a wild ride in the real estate market!  We went from an incredibly low interest rate environment (under 3%), which sent home prices shooting up double-digits from 2021.  Low inventory meant homes were being snapped up almost instantly, often with multiple offers and far above listing price.

Jump forward to today, and the market is…. well, let’s just say it’s a bit jumpy!

The spike in mortgage interest rates over the last six months seems to have tapered off, but rates are still above 6%, which has decreased the affordability of properties, even as high demand and low supply are keeping prices from correcting downward.

The result is a strange market that’s technically a seller’s market (there is a low inventory of homes), but also a buyer’s market (houses are selling more slowly than before, which should put downward pressure on prices).

So what does this mean for you?

1. If you’re a seller, you may be facing a situation where you could sell your house but not be able to afford to buy something with the sale proceeds.  If you feel this might be the case for you, talk to us about introducing you to some mortgage loan officers who could better help you understand your options.  Your local bank or credit union might not have a full range of loan products that would help you with these issues.
2. If you’re a buyer, you might be discouraged by the higher interest rates and what your monthly payments might look like.  But if you’re flexible in your home purchase date, it is quite likely prices will be dropping in the short term due to market slowing, and interest rates may (or may not) stabilize in 3Q and 4Q of 2023.  Our advice – stay up to the market news, and keep your connection with a great loan officer so that you’re ready to make an offer on that dream home when the time comes.
3. If you have to sell, let’s talk.  We know that sometimes you don’t have the option about when to buy or sell because of life events that we all face.  We’re here to help!

Best wishes to you and yours in 2023!  Together, let’s make it the best year ever!