The first quarter of 2023 was a pleasant surprise of the real estate market shifting positively again after seeing things slow a bit in the last half of 2022. As many of you remember, in April of 2022 we saw the Federal Reserve begin to increase interest rates at alarmingly fast rates to try and get a grip on the inflationary numbers that we have seen nationwide for the past couple of years. Buyers who were used to seeing 3% interest rates quickly became caught off guard by rates that seemed to be climbing each time that the Fed met.

In our market, we always see a bit of a softening around the holidays, but last year in our tri-county area, we saw single family contracts per week fall as low as 73 one week, hovering around the 150+/- range for most of November and December. These contracts are often in the 250+/- range. It could be that families decided to stay home to spend time with loved ones after an unusual couple of years instead of listing their home. It could have been buyers waiting on a sign of rates slowing. Our inventory continued to drop during that time. In mid-January, we saw rates drop into the high 5%range in mid-January for the first time in months. Consumer confidence in real estate resurfaced, causing buyers to flood back into the market and sellers rushed to list their properties. Pending home sales increased 8.1%. Multiple offers were not back as crazy as January-March 2022, but they are back, which is excellent news for sellers.

We have continued to see the stronger demand side throughout the 1st Quarter. Many have accepted the new norm of rates fluctuating from the low to high 6% range and contracts are back to floating between 200 to 250 per week again through most of March. We anticipate another strong 2nd Quarter, so if you are considering selling, then now is the time! If you are thinking of buying, then take advantage now before inventory drops to even lower levels. I’d love to help you get top dollar for your home or help you find your perfect new home or investment property.