2023 MARKET WATCH SECOND HALF
After a record-breaking run that saw mortgage rates plunge to all-time lows and home prices soar to new highs, the market finally started normalizing late last year. However, home values have started rising again, for three months in a row.
LEONARDO AND ANGELICA,
If you’ve thought about selling, now is a great time to take advantage of the lack of inventory. Give us a call at 907.440.982 or 907.887.6133 and let’s discuss a strategy to help you move into your next dream home.
SELLERS HAVE POWER DUE TO INVENTORY
We’re still well below the five to six-month supply needed for a healthy, balanced market. This explains why bidding wars have returned; many buyers still have little choice but to bid up prices. The supply-anddemand equation simply won’t allow a price crash.
HOME PRICES ARE STEADY AND WILL RISE BUILDERS DIDN’T KEEP UP WITH DEMAND
Prices are up by more than $100,000 since the pandemic began in March 2020.
According to Rick Arvielo, head of mortgage firm New American Funding, “You’re not going to see house prices decline. There’s just not enough inventory.”
Never fully ramping up from pre-2007 levels, there’s no way for builders to move quickly enough to quench demand. Overbuilding looks unlikely, and while increased construction balances supply and demand, it won’t happen overnight.
