As we began 2024, the frigid temperatures of January were thawed by a sudden reprieve from high interest rates. The market really froze going into the holiday season as buyers chose to wait until the New Year before being enticed back into the market in early January. Inventory that had been sitting through December was snapped up as buyers braved below zero temps and rushed to fill the void left by high rates and the seasonal holiday pause.

Average home appreciation year over year tracked at 5.43% for 2023. This may seem tame compared to the breakneck pace over the last several years, but this is a fantastic, safe return and an easy way to protect your purchasing power against higher inflation. We are still experiencing an inventory shortage, and sellers will continue to have pricing strength.

Buyers looking to capitalize on the slowdown over the holidays did well if they had an experienced negotiator in their corner. A lull in buyer activity from October through December offered excellent opportunities for price reductions and seller-paid concessions from motivated sellers.

With less Fed talk of spring rate cuts, mortgage rates rocketed back toward 7% in the last two days, and are currently sitting at 6.96% for a 30-year fixed. As these windows of cheaper borrowing present themselves, I expect to see an ebb and flow in inventory and opportunity. Let our years of experience work in your favor.