What do you think will happen this year in real estate?
Mortgage rates took a large dip since their peak in October. This has significantly boosted buyer demand and the market is starting to move again.
The Federal Reserve did not cut rates in their last meeting and inflation reports were higher than expected, which caused rates to increase slightly.
As mortgage rates ease from the peak, more homes are hitting the market with the number of new listings growing.
However the market was still sluggish in January with over priced homes sitting on the market and most homes selling for below list price.
30.4% of listings having at least one price cut, well down from over 45% in 2023. More homes are selling, but pricing is right is critical. Overpriced listings are sitting on the market and not selling.
Chasing the price downwards can do price damage to your home with buyer wondering “why isn’t this property selling?â€.
Overall signs point towards a healthy, balanced market this year.
The Fed will have an outsized influence on the market this year. Significant rate cuts could drive up buyer demand and create another hot market with many seller’s locked in with low interest rates.
Let’s see what happens. What do you think will happen this year in real estate?
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