Will we see the prices continue to go down in 2023?  This is the main question I hear from my customers.

Up until February 2022 with interest rates in mid-3.5% market was “crazy”.  Any offer you make with $100,000 over asking price, sellers tend to laugh in your face.  Multiple offer situations were a normal occurrence. Then in the month of March interest rates jumped and jumped again and everything stopped. In simple words, buyers have disappeared.

Just this last week of December 2022 a couple tiny interest rate reductions from low 7 % to high 6 % stirred up buyers’ interest.  Buyers started coming back. 

New inventory (listings) that hit the market and even 6-month-old listings start to go into the pending category.

My observation is that we don’t need a huge change in interest rates to change the effect on the market.  All we need is a DIRECTION of interest rates to influence the direction of real estate market.  

Stay tuned everyone!

Have a great weekend!