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The story of 2023 was balancing interest rates with home purchases and even home sales. The average weekly rate in 2023 was 6.8% and peaked in October at 7.94%. This caused some buyers to pause due to cost. Many sellers were reluctant to move and give up their low payments based on historically low rates, hence the large decrease in new listings in 2023.
Despite the highest rates we’ve seen in two decades, pending sales did not falter like new listings, indicating continued demand and resulting in a seller’s market. Inventory remained tight throughout 2023 and prices stable over 2022 (the peak) when the average rate was 5.34%. Since October, rates have come down by over 1%, bringing more buyers to the market. The Fed plans to continue this trend in 2024 which will increase buyer activity and new listings. 2024 will provide improved opportunities for all with a less stringent lending environment.
If you are curious about how the trends relate to your goals, please reach out. I strive to keep my clients well-informed and empower strong decisions.
