What a year 2023 has been in the Real Estate Market. 2023 saw the highest mortgage rates in over 20 years, low inventory, record low sales, price reductions, an increase in time homes sat on the market, a continued California exit, new construction homes not moving, a decrease in luxury home and investor sales, and high home sales and rent prices. Add inflation and some insurance carriers refusing to issue home policies, and we had a recipe for real estate disaster.
Bidding wars, common a few years ago, were fewer and farther between, given the higher mortgage rates. According to an article by Redfin, “51.6% of homes had a bidding war in 2023, down from 54% in 2022.” (source)
According to the same article, cash was King in 2023. With record high interest rates, cash buyers became the dominant purchasers, representing 32.7% of all homes purchased; this figure is a 30.7% jump from last year and the highest share in a decade.
Sellers Chose to Stay in their Homes
With interest rates soaring at 8%, sellers who refinanced when rates were at 3% could not justify selling and stayed in their homes. The high interest rates were attributed to the lack of inventory. In a struggling economy, it just didn’t make sense for sellers to give up a low mortgage to move and double their mortgage rate.
A looming recession and the threat of wars also kept people at home and added to the reasons why inventory in 2023 was so low.
What to Expect in Real Estate in 2024
Traditionally speaking, a big election year can sometimes dictate the real estate market. Voters want to see more affordable housing, a stronger economy, more money in their pockets, and a rate that makes sense to buy. Those seeking office will come in with promises to make the American Dream come true to attract these votes.
A new year also translates to the start of the home selling season which will bring more inventory at lower prices, according to Redfin market predictions.
We may also see a trend to return to work and an end to remote working. Buyers who moved away from big cities for a more balanced and affordable living situation may sell these homes and relocate to be closer to work.
Younger generations, still unable to afford a home of their own, may move in to multigenerational homes with their parents.
There is still so much uncertainty with looming wars and economic instability.
While The Gamache Team does not have a crystal ball, we have been selling real estate for 50 years and keep in line with trends in the real estate industry.
Predictions The Gamache Team Knows for Certain
The Gamache Team can undeniably say for certain that when you work with us, your home will be staged, photographed, marketed, and advertised to sell at a price that attracts buyers.
We do our due diligence in comparing other homes to yours and discussing the right price to sell your home with you.
We are there every step of the way to help you through what can be one of the most stressful and emotional journeys of your life.
Your home is your castle. It is where memories are made, dreams are envisioned, and celebrations are enjoyed. No two transactions are the same. No two sellers are alike. No two homes are identical.
Let us do the work while you concentrate on your next real estate goal.