Winter 2023 Economic Conditions Update And Advice

Winter 2023 Economic Conditions

Market and Mortgage Update Brief:

The housing market in Q4 2022 dramatically slowed. Mortgage rates were over 7% and many would-be buyers exited the marketplace and put their new home searches on hold.  Incidentally, I predicted a 7% year-end 2022 rate towards the beginning of 2022 in one of my emails when rates were still in the 3% range but the Fed was threatening to start raising rates.  But, in Q1 2023, so far we are seeing a sharp reversal of this slowing sales trend. Now that mortgage rates have dropped into the high 5% and low 6% range, the buyers are back! The market is now seeing the return of multiple offers and bidding wars like during Covid-19 and thereafter.

 

My Advice:

I always tell people that my crystal ball broke in 2008. But, if you are one of those buyers that left the marketplace in Q4 2022, now may be the time to get back in!  If this current trend continues, home prices will start accelerating up again.  If you are a would-be seller, now is the time to list to enjoy the more robust activity of years gone by.

 

Even if you are not buying or selling:

If you have a minute, I’d love to hear how things have been going for you lately!  I develop deep and lasting friendships with many past clients and I enjoy touching base, saying hello, and hearing all about the new and exciting things in your lives!  Please email me at realtyandloan@gmail.com or call/text me at 619.889.8400.

And of course, if you want to talk real estate and mortgages, I am always here for you to help you strategize and plan next steps!

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