Is this a turning point?

While market data shows a continuous trend through 2023, anticipated changes in interest rates might bring a turning point.

In November Median Sales Price reached the lowest for 2023 so far with $424,450. We started the year with $450,000 in January. Keep in mind that while this is low compared to last year, it is still considerably higher than it was pre-pandemic. 

High interest rates continue to keep average days on market, months of inventory and inventory high. Months of inventory is at 3.7 months - 0.7 months higher than last year November, and pretty much in line with where it has been for 2023 so far. 

Active listings are also high - 7% up compared to last year, but down in the 4 digit range again with 9,334 listings.

While mortgage rates hit a high in October with above 8%, the average rate on a 30-year fixed mortgage retreated to just above 7% this month. While the Fed left the interest rate unchanged earlier this month, it has indicated that there may be as many as three rate cuts in 2024. The Fed had raised rates 11 times since March 2022, but only once since May 2023. 

It still stands true that this is a time where buyers have the choice and can take their time finding the right property for them. It remains to be speculated how demand and median home prices will rise as interest rates will start to come down. 

Happy Holidays!

Last but not least we want to wish you a very HAPPY HOLIDAY. 

2023 has been a challenging and great year - we have brought on three new agents into our family run brokerage. We have weathered the market as it leveled out with the market and have had the opportunity to grow along with the challenges. 

As we are moving into 2024, we look forward to grow our brokerage and continue supporting you in navigating the real estate market and achieving your real estate goals.

We wish you a joyful Holiday and hope that the new year brings you all the success and laughter you desire.