Limited housing supply and high demand are still causing bidding wars and that is keeping home prices high.
Even though we have all read about warnings of a housing recession, the housing market has been resilient and a recession has not materialized. The housing market is experiencing a shortage of housing inventory, with an estimated deficit of nearly 4M houses nationwide in 2023.
Since February 2023 prices have started to increase, and it’s unlikely that prices will fall significantly lower due to the limited supply.
Housing Mortgage Rates
Along with that limited supply, surging mortgage rates and still-high home prices are not leaving home shoppers much to be thankful for these days.
The 30-year fixed rate eased to 7.44% in the week ending November 16, the third consecutive week of decreases. For some context, mortgage rates were in the low 3% range only two years ago, according to Freddie Mac.
Though most experts believe that two rate-hike pauses in a row are a sign that the Fed is finally done with increases, Fed policymakers reiterated at the November post-meeting presser that achieving the goal of a sustainable 2% inflation rate still has “a long way to go.”
“The housing market—like so many other markets—is almost impossible to time,“ says Orphe Divounguy, senior macroeconomist at Zillow Home Loans. “The best time for prospective buyers is when they find a home that they like, that meets their family’s current and foreseeable needs and that they can afford.”
Divounguy says “getting on the housing ladder” is worthwhile to begin building equity and net worth.
The old saying is “Marry the house – not the rate.”
Pro Tips for Buyers
Forbes offers advice to aspiring buyers:
- Move to a lower-priced housing market if you can switch jobs or work remotely
- Get all your ducks in a row in advance so you can act fast—review your financial situation, gather required documents, shop multiple lenders and strengthen your credit score
- Check prices and listings regularly to beat out the competition
- Know how much your monthly payment will be—complete with taxes—and how well that fits into your budget
Pro Tips for Sellers
Advice for sellers:
- Work with a real estate agent to get your pricing right, encourage buyer competition and sell faster
- Get your home in shape to sell sooner rather than later
- Set up your home’s online curb appeal
- Include professional photos and floor plan in your listings for more page views and saves
Contact Us
Tucker Benner Realty’s professional agents are standing by ready to assist. Call or text today 231-730-8781.
Marilyn Tucker
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