As we reflect on 2022 and begin to prepare for 2023, we have so much to be grateful for. We’ve been blessed with an amazing family and group of friends, an incredible business with the best colleagues, good health, and so much more.
With that said, we wanted to give you our thoughts on the current real estate market since many have asked. We are definitely optimists. But the other truth (that not many in our industry seems to be sharing) is that the market absolutely stinks right now. And that’s a relative term. In some areas, sales have dipped by more than 40%. Mortgage interest rates to start 2022 were at historical lows at around 2.5%. Today, they are hovering between 6% and 7%, which over the last 40 years or so isn’t that crazy. However, it’s still a shock to homebuyers that never experienced anything over 4%.
People considering selling their home have very little incentive to move if they are locked into that 2.5% interest rate. Home prices are also at record highs and available inventory is still very low. The last 2-3 years in real estate have been wild. Homes were flying off the shelves. We all knew it would come to end at some point, and for those of us that prepared, eliminated debt, and skipped the Maserati and vacation home, we’ll be fine to weather the storm. Sadly, many in our industry will not be so fortunate.
No one has a crystal ball, but many experts believe that the market will continue to be tough, with little activity at least through Q1, and possibly throughout all of 2023. Prices will likely come down some, but they won’t fall off a cliff like they did in 2008, at least not here in our market. Those of you looking for deep discounts and bargains may be disappointed.
Many of you still need to move for various reasons or have a major life event that requires a relocation, a downsize or a little more space. While it may not be the best time to make those changes, it’s certainly not the worst. There are still some great opportunities in the market, you just need to know where to look. Baby Boomers remember interest rates at 14% or higher, or values depreciating so rapidly that it caused a total financial meltdown and left nearly 4 million families in foreclosure.
This is NOT a doom-and-gloom post – there are sales happening and bright spots. But anyone thinking of buying or selling should know we’re back to 2019 levels.
Through the good and the bumpy times, if you have questions, need guidance, or need to move for one reason or another, we’re here to help. We try to be the most giving and caring team of agents to hold your hand through the entire process. Because we’re running our business and lives lean (like many of you); and because we care deeply about the people in our community, we’re not feeding you false or misleading information for a paycheck. We’re going to give it to you straight, even if it’s not necessarily what you or other Realtors want to hear. It’s our responsibility and our passion.
We look forward to serving you with all your real estate needs in 2023 and beyond.