December 12, 2022
Good News Despite Challenging Market Conditions
As we approach the end of 2022, we look forward to celebrating the holidays and spending time with our loved ones. We hope that each of you will also be able to get some down time during these final weeks of December.
There is some good news for home buyers as we head into 2023. Interest rates averages have steadily declined during the past 4 weeks, dropping from a recent high of 7.08% down to 6.33% this week. This follows the Fed's announcement of easing up on interest rate hikes. Many of the homes that had trouble selling this year are now offering significant discounts. Additionally, as we head into January and should start to see increased inventory and more choices for buyers to select from.
For most residential sellers, it does make sense to hold off on listing their properties until the upcoming springtime, when buyers will delve into house hunting more seriously. The best date to list will depend on each buyer's timeline and situation. For some of you, it may be better to get your home to the market sooner rather than later. We keep a daily pulse on the market and can provide you with an appropriate forecast for your home and neighborhood.
From the entire Highland family, wishing you the happiest holidays!
In the current real estate market, interest rates are the hot topic of the day, and for buyers and sellers, our priority is to lay out all the options available to fit their needs. Using our collective experience and knowledge, we’re able to provide holistic guidance to our clients.
One way we’ve seen buyers work around the recent interest rate hikes is to obtain a loan with an Adjustable Rate Mortgage (ARM). These three, five, seven, or ten year loans allow them to buy at a lower interest rate now, with an eye on refinancing when rates eventually come back down to earth.
For sellers, it’s important to understand that there are still willing and eager buyers out there. There are some who missed out on purchasing when the market was hot, but still have the means and a desire to buy a home. If you have a quality property and showcase it well, you’ll still see competitive offers at a solid price point. Whatever the market conditions, we can help guide you toward meeting your buying or selling goals.
What We're Reading
Major Home Improvement retailers like Home Depot and Lowe’s are faring relatively well in the current market, while home sales activity has decreased. This can be attributed to an “Improve in Place” phenomenon right now where homeowners are waiting out any home purchases are sales until the market shifts into a more favorable direction. Some buyers feel priced out because of this year’s higher interest rates and instead are shifting to home renovation projects. Others (especially those sitting on a lot of equity) are getting a head start on improving their homes so that they will be able to get higher dollar once they feel it is the appropriate time for them to sell. Read more here.
Stay up to date on the latest real estate trends.
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You’ve got questions and we can’t wait to answer them.