In this video, I'll discuss the latest trends in real estate and what that means for homebuyers.
According to NAR. Pending home sales in November 2022 recorded the second-lowest monthly reading in 20 years as interest rates climbed, drastically cutting into the number of contract signings to buy a home. With mortgage rates falling throughout December, home-buying activity should inevitably rebound in the coming months and help economic growth.
Existing-home sales retreated for the eleventh consecutive much in December 2022, with three of the four U.S. regions recording month-over-month drops.
Mortgage rates have marched to recent highs — with the average 30-year fixed mortgage leaping from 2.68% in December 2020 to the 6%-7% range in December 2022.
Ultimately, the rising interest rates, and economic conditions are leading to a buyers market in 2023, however with a more than doubling of the interest rates, affordability will remain a factor. For the most part, experts see the pricing leveling out and possibly coming back down a bit say 3-5% in markets with population growth, its a buyer beware scenario in markets that don't have inventory shortages, where prices could come down steeply.
What this means is that we should expect the rental demand for multifamily and SFR to stay strong as many wait for pricing and interest rates to stabilize.
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https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales
https://www.nar.realtor/research-and-statistics/housing-statistics/pending-home-sales
https://www.homelight.com/blog/real-estate-market-forecast-2023/
