Watching and Waiting

Oh hello 2023. Last year, we dealt with inflation and rising interest rates, and now everyone’s scrambling because of the egg shortage. At first I panicked (I eat eggs daily), but then I realized this situation won’t last forever. It's constantly changing, just like our current market.

What I'm seeing as we enter a new year:

Even though prices aren’t going up like they were, things aren’t so bad for homeowners. They’re sitting on enormous amounts of equity. While sellers have been making price adjustments, they're still selling their homes at solid price points.

Many buyers are stuck on the sidelines waiting for home prices to fall enough for them to jump back in. Yes - the housing market is slowing down, but homes aren't getting cheaper. Median prices went up across all areas over the last year.

Inventory is historically low, and we're far from pre-pandemic levels. Those who've purchased in recent years at low rates are staying put. Tight inventory has kept home prices from falling off. There's enough demand from people who can afford to buy despite high housing costs and higher rates.

The current slowdown was needed. Buyers have breathing room to make decisions and more negotiating power.

Uncertainty typically slows the pace of sales. As we head into 2023 with a strong local economy, I'll be tracking how the macro-economic uncertainty will continue to impact our valley. You'll be the first to know.