I have heard from several people asking what is going on with the real estate market and what to expect. As we all know we can Google our questions and get the answer we are looking for or the answer you want it to be, but does it make it true? It certainly is a challenging time with real estate nationally and locally. We are hearing that interest rates may start to come down with the last (hopefully) interest rate increase by the Federal Reserve. We are seeing inflation calm down a bit and some prices are coming down, which bodes well for our local market.
With interest rates hovering around 6% many would-be homeowners are sitting on the sidelines longer to see what happens in the next few months. It makes sense if you have an interest rate in the 2.5-3.5% range to stay put rather than sell your home and move up with a much higher interest rate. Buyers, however, are still shopping and with the lower inventory of homes to buy the prices are holding stable.
Without sellers entering the market buyers are still competing with other buyers for existing homes or seeking out new homes. Builders are on a mad tear to get homes built as quickly as possible to meet the strong demand for homes. I know that many are still struggling to hire enough workers and the subcontractors are also trying to ramp up to meet demands. Even with employees hired there still seems to be a backlog in getting homes approved through local building authorities. I did read that some builders are looking at building smaller homes to meet the need for “more affordable homes“ with the current interest rate levels. I think that people will realize that they don’t necessarily need that much house and can find new homes with all the same features but with a smaller footprint. And besides, a bigger house just means more house to clean!
It seems like builders are busy and on the rebound from the Pandemic slow down and when interest rates come down, the existing home sellers will get off the fence and get into the market. These two things should have a very positive impact on our real estate market and hopefully level out the playing field for buyers and sellers.
If you are in a position of needing to sell it is still a great time to take advantage of the low existing inventory. Lower inventory keeps the prices stable and can create some competition for your home. Some examples of needing to sell could mean moving out of the area, downsizing, selling estate property or even a second home. All these scenarios are solid reasons to sell, and I am able to answer questions or help you with those opportunities.
If you are on the flip side of the real estate equation such as moving to the area for family, work, quality of life or needing a larger home to accommodate a growing family or a multi-generational family or just ready to get into a home rather than renting…. I would love to visit with you to explore the best option for you!
So, the bottom line is real estate is still thriving in our area. The hype and craziness of a year ago is gone and we are now in a more normal market which allows you time to understand the market, your needs and make a plan for all of your real estate needs.