I hope you are off to a great 2023! Right now, the market is a bit slower than it has been in the past few years. Honestly, after feeling super busy for so long, the slow down has been sort of welcomed on my end. It’s nice to have time to play catch up and get things done that I’ve been putting off, like this post!
I wanted to give a couple of updates on the market and things to expect this year. If you are thinking of selling this year, please let me know! Planning ahead is helpful in having a smooth transaction.
This year, expect rates to drop back down, most likely into the 5% range. The correction is expected to happen as a result to the recent banking crisis. Rates will be lowered in hopes to correct the economy, get small businesses and people back to borrowing money. This is needed to keep the FED healthy and raise the value of bonds.
Once rates drop, more buyers and sellers will likely enter the market. Right now, inventory is still really low. Homes that are priced well are still selling quickly. More incentives are being offered by sellers than there has been in recent years, such as seller paid closing costs or sellers offering to buy down rates for borrowers. Long story short, homes are still selling, but there is a bit of a shift going on and sellers are having to be more realistic.
Prices are expected to continue to rise, just at a much slower pace than the last two years. This is actually a good thing. The sharp increase in prices was not realistic and in the long run made many areas much harder to afford. That being said, if you are planning to sell, it’s probably a good idea to do it sooner rather than waiting, simply for the sake of affordability.
If you are interested in seeing a current assessment of what your home is worth, please let me know. It’s always good to know where you stand in grand scheme of things. Overall, I expect this to be another strong year in our area. People are still moving here and lots of building and growth is still going on. If you do have any questions, I’m here to help!