If you have been watching the news, interest rates and the real estate market have been top of the headlines and it has been a maddening rollercoaster. We started 2022 with 3.2% Interest Rates, low housing supply, multiple offers over list price and buyers were weary! We ended the year with 7.5% Interest Rates, 71% increase in number of listings and buyers were able to negotiate more with their offers. With all the changes there is some uncertainty going forward in 2023 so let’s break down what the numbers and the experts are saying.
All the experts are presenting a more balanced market. Interest rates have stabilized and even dropped a bit. Currently an FHA 30 year loan has rates around 5.9%. They are expecting these to settle around 5.7% for the remainder of the year. Home Prices saw a 5.5% appreciation in December which still shows homeowners are gaining equity even with the increased inventory and longer days on market at 2.7 months (normal is 6 months!)
So where is the bottom? Balance is the bottom and we are seeing that now. Foreclosures were once top headlines and we just aren’t seeing that like we did in 2008. Mainly due to the fact that homeowners have built a good deal of equity so foreclosures are still at low market percentage.
What do I suggest? Rather than trying to time the market, let’s make a plan! If your goal is to buy or sell a home in 2023, we can sit down and discuss the best way to help you reach your goal. Call me and let’s get started.