Quiet Holidays this Year? Probably.

It seems like we may have a quiet December in real estate this year. There is a lot going on in the market from stable but somewhat high interest rates putting the brakes on buyers, a lack of sellers willing to sell, and a bit of a negative outlook among the public about the state of the economy moving into 2024. 

2024 is a major election year. Generally during these election years politicians are looking to move towards an improving economy because they want to get re-elected. A foul economy is often a tide changer in elections whereby incumbents are vulnerable. I would expect to see action taken by the Administration in Washington DC to curb the economical roadblocks. 

If that happens would could see a nice spring bump in real estate and perhaps even see some sellers decide to come out of their shells, so to speak. Most of the activity in listings seems to be people moving away to be close to family elsewhere, or retirees moving to warmer climate, or mandated by job changes. Of course there is also the usual divorce and death that sometimes facilitates a need to sell the house. 

Honestly a sudden flood of listings would crash the local market so I'd prefer not to see that. But a little relief in rates just a single percentage point could provide the gentle nudge we need to get back to an active market.

We shall see how things unfold as the New Year takes shape. 

Interest Rates Improve

The last couple weeks has seen a nice measurable improvement in rates. Hopefully this will stabilize and allow home buyers that extra bit of breathing room. I doubt rate will improve a whole lot more but maybe the Fed will settle down a bit and just let these current rates percolate a bit before jumping to any conclusions about inflation.

Right now excellent borrowers are seeing rates in the range if 7.25% to 7.75% and borrowers with some financial and credit challenges are getting approved in the 7.75%-8.25% range. Although this seems high relative to recent rates just a couple years ago, this is only a little higher than the 50 year average. It would be nice to see some more relief maybe getting the "A" borrowers back under 7% but I am not holding my breath. This upcoming year is an election year so the politicians in power right now will want to hang on to that power so they may pass legislation or use other political maneuvering to try and ease the "pain" so as to stay in power. Perhaps the Fed will hold tight for now.

Prices on homes continue to be flat and stable. The median price in most local sub markets remains about what it was a year ago maybe a tad less or a tad more depending on the specific area.   

Happy Thanksgiving and Black Friday

Well it's Black Friday today and that means all the stores will be extra crowded today, oh goodie ;) I do hope you all enjoyed your Thanksgiving. Those of you thinking about buying or selling from this point forward to the end of the year, remember that it can actually be a good time to be either a buyer or seller in  during the holidays. I know, I know, I harp on this every year. But look-loo buyers tend to go away during the holidays, people have too much going on to waste time poking around at houses they are not going to buy. So seller's can capitalize on a smaller group of serious buyers. Meanwhile fewer sellers are in the market because let's face it, it's already a pain in the backside to have your home on the market and during the holidays that pain is much worse. Many sellers choose to wait till after the holidays to list their home or they pull it off the market until January.

All the rules still apply, keep the driveway and front walk free of slippery leaves or snow and ice. Salt the walkway on cold days and keep the rain gutters clear. Minimize clutter and don't make it difficult for buyers to show the home. Buyers you can take advantage of the fact that sellers during this time period tend to be a bit more motivated.

All in all our local market still favors sellers but only modestly so, sellers cannot count on multiple offers any longer so if you write something reasonable on a listed home, there is a solid chance you will get the home. 

Happy Holidays!