Will we see the prices continue to go down in 2023? This is the main question I hear from my customers.
Up until February 2022 with interest rates in mid-3.5% market was “crazy”. Any offer you make with $100,000 over asking price, sellers tend to laugh in your face. Multiple offer situations were a normal occurrence. Then in the month of March interest rates jumped and jumped again and everything stopped. In simple words, buyers have disappeared.
Just this last week of December 2022 a couple tiny interest rate reductions from low 7 % to high 6 % stirred up buyers’ interest. Buyers started coming back.
New inventory (listings) that hit the market and even 6-month-old listings start to go into the pending category.
My observation is that we don’t need a huge change in interest rates to change the effect on the market. All we need is a DIRECTION of interest rates to influence the direction of real estate market.
Stay tuned everyone!
Have a great weekend!
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