Answering 2 of the Most Important Buyer Questions

Two things buyers need to know about our housing market in 2023.

Right now, we are hearing two questions from buyers on almost a daily basis: “Are interest rates coming down?” and “When will more inventory come onto our market?” Today, we’re going to answer both. 

When we talk about interest rates, you have to remember that previous rates were kept artificially low due to the pandemic. The subsequent rate hike was to try and curb high inflation rates. Most experts agree that inflation will calm down this year, so we’ll probably see rates come down as a result. That being said, they won’t be as low as they were before. Instead, most experts agree that rates will settle somewhere in the 5% to 6% range. 

Something to keep in mind is that 5% is a historically good interest rate. Plus, if you're renting right now, you're paying 100% interest; none of your payment is going toward building equity. If you look at things this way, a 5% rate practically sounds like a steal. 

The second question that we're getting all the time is, “When will more inventory enter our market?” Keep in mind that spring is the busiest time of year for the real estate market. As we get closer to March and April, more and more homes will start to enter our market. However, more buyers will enter our market as well, so you’ll have more competition. If you want to beat the rush, it might make sense to look for a new home sooner rather than later. 

"Spring is the busiest time of year for the real estate market."

Both of these questions are important, but the most important question might be, “Do I have an agent who represents and protects my interests?” If your answer is no, give us a call. We’d love to discuss your home-buying plans with you.