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.

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