Well, it’s official, our real estate market has turned.
Gone are multiple offers and buyers waiting in line at open houses willing to pay over list price.
Let’s face it, double digit home appreciation was not sustainable. However, if you’re a home seller, it’s still a great time to sell as available home inventory remains below normal levels. And if you’re a homebuyer, you might be able to finally find your new home without a bidding war.
So what’s in store for the remainder of 2022?
Goldman Sachs predicts home sales will fall 12 percent from 2022’s mid-year sales rate even after the steep declines that have already occurred. “The sustained reduction in affordability, waning pandemic tailwind, and recent decline in purchasing intentions suggest that home sales are likely to fall further through year-end.”
To add insult to injury, the investment banking giant expects home sales to recover only “modestly” in 2023, portending a full year of sales volume more akin to what the housing market saw in 2012 than in the bustling decade since.
This of course is just a projection and rests heavily on what the Federal Reserve does with interest rates and inflation. Currently, mortgage rates are 2-3 points higher than they were just one year ago and the highest they’ve been since 2008.
So, what does this mean for you?
If you’re thinking about making a move in 2023, please reach out to setup a time to discuss the factors affecting our local market. Some communities in our area are still in high demand, with others not so much.
And as always, if you have any real estate questions please reach out.