December 15, 2022
By Brad Lewis
The real estate market has turned a complete 180 degrees from early 2022 and currently
there is a lull in activity.
With the large increase in interest rates over the past six months, the market is no longer a
seller’s market, where buyers were paying 10% to 20% or more over asking price with bidding
wars being the norm and often selling to cash buyers. Fast forward to now, where we are
seeing homes sit on the market for weeks with price reductions being common, inspection
items being addressed, and sellers buying down the interest rate to reduce the buyers
mortgage payment. Contingent buyers who need to sell their current house are also seeing
sellers work with them.
There still are challenges for buyers, mostly due to the continued problem of low inventory and
the fluctuation of interest rates. More recently, interest rates have been declining to
around 6% for a 30-year fixed rate.
If you can find your house now, I suggest you go for it! Take advantage of the current market
situation as a buyer and negotiate a good deal.
Conventional wisdom says rates will drop into the 5% range in 2024 and refinancing could be an
option to reduce your rate. Additionally, December is one of the slower months of the year
which means less competition for a buyer. January business will start to pick up again, but
inventory will continue to be limited. As a buyer it is best to get ahead of the Spring buying
season, so the sooner the better!