Home sale activity has picked up. Inventory normally goes down this time of year because of the slower nature of the season. Seller's withdraw their listings in favor of prepping for the Spring and relisting. However, the lower inventory this year is a combination of the withdrawals and a pick up of pending and closed sales. I've been mentioning for the last three months to watch the mortgage interest rates, and if they were to come down I would expect vigilant buyers to take advantage. They have done so with relatively little competition. As of now, this is setting up the scenario I suspect will take place in early 2023: - We will be entering the new year with low inventory - Mortgage rates have come down off their highs and have room to go lower - Home prices have been in a down trend, but may be stabilizing, let's give next year a 5% range +/- So...low supply, lower mortgage rates and lower home prices. Can you see how I begin to formulate a thesis for a demand rush in Spring 2023? Unless there is some kind of black swan event between now and then this is my expectation. If you are thinking about buying, I highly recommend getting the ball rolling before March. If you are contemplating a move for any variety of reasons, preparations should start in January. How do you foresee 2023 playing out in the housing market? ∞ PS. The "Ho! Ho! Ho!" banner is linked to a google form. I have three BJ's gift cards I want to giveaway this month. If you know of anyone or a family that could use a $25 gift card, fill out the form and I'll be happy to send out all three gift cards before Christmas weekend. What are you seeing or hearing? I'd love to know paul@guiderealestate.com |
