Back and Forth
If you’ve been here for a while, you know from May until September we saw our Median Sales Price plummet month after month. It seemed like it was never going to end.
Have I got news for you! For the second month in a row we saw a rise in our median home price. Remember all those people that said they were going to wait for the bottom of the market??? Did they miss it again? The short answer is only time will tell, but I don’t think so. I think we have a few more months to go before we are out of this mess.
With that being said, if you are thinking about buying in the next year, I would start to get my ducks in a row right now. I have a feeling that we will see an influx of listings after the holiday season and if you want your pick of the litter, your team (your lender, realtor, yourself) should all start to get on the same page. Some are predicting interest rates dropping in the first quarter of 2023. If this happens, we will have more buyers come back to the market which means more competition.
What does all that mean for sellers? At this time, sellers are still giving out credits to buyers to get them a more appealing interest rate. I believe this is going to remain the case for a while; however, if we see rates drop below 5% in the first part of the year, you can bet that more buyers will enter the marketplace making the scales tip back in favor of the sellers.
As you can see in the graphic below, the market is trying to correct itself. All the lines look like a high school driver on an icy road. We have 3 months of inventory if we continue to sell at this pace, which is pretty good considering where we came from, but we are going to need more listings (only 285 last month) if we want that to remain sustainable when the rates do come back down.
Long story short, I believe we’ll see some slight volatility over the next few months and hopefully we cruise into a balanced market around February or March… but really it’s going to be up to the fed and what they do with their inflation issue moving forward.
Thank you all for supporting me and helping me to become the top real estate producer of Haute Properties for 2022. Your guidance and words of encouragement have been invaluable and I am very grateful to each one of you.
I could not have achieved this level of success without your help, and I look forward to continuing our work together in the future.
Once again, thank you so much for all you have done.