Is this going to be the year when things return to a normal market? What does a normal market really look like? In 2022 we saw a lot of volatility, and it was mostly caused by interest rates. Interest rates were about 3% at the beginning of 2022, then rose to 7% by October, and now we’re getting below 6% again. What does that mean and what does that mean for the rest of the year?
By the end of 2023, we’ll likely see interest rates get closer to the 5% range. The overall market economy’s growth is slowing. When that happens and we enter into a recession, the interest rates for home mortgages go down. That gives buyers the opportunity to buy a little more expensive homes.
The under-$300,000 market is strong, and it will stay strong. It’s rare to see one of those homes last longer than a few weeks on the market. Some are even getting multiple offers. It’s a great time for buyers to get into lower interest rates, but don’t expect home prices to fall. The new-construction market is lower than earlier, and builder confidence was down until this month. Overall, demand for new construction has been down across the country, which will potentially start pushing material prices down.
“The overall market economy’s growth is slowing.”
Expect more inventory for buyers to choose from. Last year, we had as few as 1,700 listings in the MLS, and it got up as high as 2,700. We’re expecting to get closer to 4,000 listings in the MLS this year, so sellers should expect a little more competition.
Creative selling solutions are what we do here. If you have any questions, we’d love to touch base with you. Reach out to us by phone or email. We look forward to hearing from you.