The year hasn’t quite went how we all expected. Back in the spring, everyone speculated that rates would be back in the low 6’s by the end of 2023. Now here we are midway through Q4 and rates are hovering at 8%. Any rate assumptions are now kept quiet as it’s not certain how the future will look. We are expecting they will come down at some point; however, it’s uncertain as to how much. Historically from 1971-2023 the average rate is 7.74%, so realistically we aren’t too far off from average. We were just spoiled with the 2,3 and 4% interest rates recently. The current rates are going to require buyers and seller to adjust expectations. We watched home prices soar during 2020 to late 2022. Then as rates increased, the home prices started to stabilize. Now we are seeing more price reductions and this is alarming to some sellers. With rates up, buyers are being much more selective with their home search. Sellers need to realize the days of things selling homes within hours of being listed are essentially gone. Now we are getting back closer to pre pandemic market times. It’s more important that ever to price your home appropriately and have high quality listing content.
