So, what's good with the market? Obviously inflation and recession are still the two most focused on topics in the economy. Are we in a recession? How long will it last? When will it happen? When will the Fed stop raising rates? Have we lost enough jobs? Although all of these questions insinuate a declining economy, incomes are still coming in and spending is still happening. From a statistical standpoint, it looks like the American consumer is standing strong. With that said, the evil level of credit debit has been on the rise and there are more companies likely to fire than hire.

 

Since a large percentage of real estate transactions happen between owner occupants, affordability leans heavily on the market. The current economic environment has had an effect on pricing and terms, but has not completely slowed down demand. From a pricing perspective, prices have leveled. Beautiful homes nicely situated are still seeing a flood of showing activity and multiple offers. Not at the same levels as during the COVID market, but at a rate that clearly defines the current market as a seller's market. Now, homes that need some love and have a deficiency or two aren't necessarily selling at the same levels as the updated home on a desirable lot. They are selling, but often need concessions to land a buyer.

 

Outside of a flood of new inventory or a complete economic meltdown, housing prices should remain level with normal annual appreciation levels of 2-5% for the foreseeable future.

 

Our advice to sellers is to put your best foot forward. Make sure to properly prepare, price and disclose. It's so important to attract the right buyer that will be confident in their purchase. You can't hit the reset button once you go live.

 

Our advice to buyers is to be ready to buy, consider condition and resale and don't fall in love. Although it still is a sellers' market, buyers are gaining more and more leverage in negotiations. Carefully think about your approach before DocuSigning that offer.

as of 1/30/23