Here’s how 2023’s housing market impacts our market heading into 2024.
2023 was quite a year in our market, marked by significant changes in the real estate landscape. Today, I’d like to review 2023’s market based on the two primary factors that shaped the year: interest rates and inventory.
Looking back to January, our initial expectation was for interest rates to decrease throughout the year. However, reality took a different turn. Interest rates, starting at 6.5% in January (which seemed high at the time), rose to almost 8% in October, only to decline back to around 6.5% by year-end. This unexpected increase was largely attributed to inflation.
As for inventory, we thought it would increase in January 2023, but the opposite happened due to the rise in interest rates. Consequently, higher interest rates led to increased home costs, resulting in affordability becoming a significant challenge for many buyers throughout the year.
“Consider the broader context when considering a move.”
Despite the challenges, the real estate market saw considerable activity, with numerous transactions involving both buyers and sellers. While it didn’t align with our initial expectations, we assisted many clients in navigating the market.
Stay tuned to our blog, where we will delve into our expectations for 2024 and the current market landscape. It’s crucial to consider the broader market context and how the events of the past year can inform our decisions moving forward. If you have any questions or need assistance, feel free to call or email me or any member of my team. We’re here to help tailor a personalized approach to navigating the real estate market.
