The new year offers both hope and uncertainty for the real estate market. Like a New Year's celebration, too much of a good thing can have lingering effects. Higher borrowing costs, insurance and tax rates mean the party's over. Sellers must list with realistic expectations. As inventory continues to increase, and demand is stalled due to affordability, the market continues to shift to a buyer's market. Expired and withdrawn listings aren't showing up in the market data, and this excess inventory is putting pressure on home prices to come down.

Buyers are hopeful for a return to normalcy in the market. Buyers are able to exercise patience in selecting the right property in the right area. A sweet deal may be possible, if you have retained a savvy negotiating expert.

Mortgage rates are back at a six month high of 7.17% on a 30 year fixed. Borrowers who entered into a 2/1 buy-down are waking up to higher payments, since lower rates have not materialized, and two year teaser rates end. The 50 year average for a 30 year loan is 7.75% so we are still below average, but a new normal is here. The fed can cut rates, but the bond markets know that more inflation is likely on the horizon, regardless of who's in political office.

For over 20 years our clients have relied on our expertise for their success. Reach out today to discuss how we can help you navigate this evolving Real Estate market.