OUR THOUGHTS ON THE CURRENT MARKET

Buyer Demand

Buyer demand has been steadily recovering from its lowest point in late 2022. Although mortgage applications still lag significantly behind the previous year’s figures, many prospective buyers have come to terms with higher interest rates as the new normal and have decided to proceed with their purchasing plans.

Inventory Levels

The number of new listings hitting the market has dropped from recently established norms. This can largely be attributed to homeowners with exceptionally low, long-term, fixed-rate mortgages being hesitant to sell their properties and subsequently purchase new ones at significantly higher prevailing interest rates. This decline in new listings has weighty implications for the dynamics of supply and demand, further intensifying the pressure on prices even in an environment of reduced overall activity.

Rates

Though rates are higher than they have been in some time, Buyers are accepting these higher rates as the new normal & the initial “sticker shock” has largely subsided.