What is Happening in the Market Compared to November 2022?
❓ What have interest rates done since our last market update? ➡️ They've continued to rise. 📈
✨ There is good news though: We've seen some relief over 2 weeks and rates are now trending around 7 or high 6's. We don't yet know what the long-term impact will be.
❓ What is happening right now in the market, especially compared to previous months and November of 2022?
- Back in June and July of 2022, interest rates started climbing and by November buyers were paralyzed.
📌 In our local market of St. Louis County, St. Charles County, Northern Jefferson County, and St. Louis City sales were up from November 2022 to November 2023. 📊
- Comparing October 2023 to November 2023, sales are down as we move into the quieter winter months.
👉 Homes are going off of the market, but as of right now, inventory is still increasing. 📈
- Sellers are leaving the market because their homes have expired, they've canceled with their current agent, or they just want to wait for the spring market.
❗Sellers, there is absolutely no reason to wait for the spring market.
- Unless you have a specific reason to wait until spring (for example: trees will shield a major road or commercial property behind your house, or if you have water features in your yard), there is no reason to wait.
👉 There are buyers looking to buy right now not in the spring.
❗Every 1% decrease in interest rates will equate to an estimated 5 million buyers entering the market. ❗
🗓️ Going into 2024:
- It's predicted to be a stronger year as interest rates go down. This may not motivate a lot of sellers who are still locked into 2% interest rates.
- There will be strong buyer demand.
- Home prices will continue to increase.
🏡Sellers: Prepare your home for sale and get it on the market. Buyers can be pickier in today's market so preparing for sale is critical.
🏡Buyers: You now have the opportunity to buy with contingencies. This is a big shift from 6 months ago. Prices are softening a little bit.
😀 If you have any questions about buying, selling, investing, happy to go through any of the information with you.