If this plays out and it takes time to break even, it is not enough to halt markets since making money isn't the main reason people buy homes. They are typically motivated to improve their quality of life, are switching jobs, trading up or down or experiencing a change in their family structure. That said, buying can still benefit you financially by helping you build long-term wealth through equity and ultimately appreciation.
Thank you to everyone who sent me notes, excited by the encouraging economic news. NAR's chief economist, Lawrence Yun, recently shared his analysis of what is to come.
"The bond market is reacting as if the Fed will be cutting rates in 2024. The key benchmark 10-year Treasury yield slid down to 4.55% and is below a recent high of 5%. That means mortgage rates will be coming down. The 30-year fixed rate will stick in the 7% range for this year but looks to move down into the 6% range by the spring of next year. Moreover, if the spread between Treasury and mortgage were to move from the current abnormal high to just the historical average, the mortgage rates today would already be in the 6.2% to 6.7% range. Be ready for more home buyers and more home sellers.”
Our local market is spotty. Alerts or price changes are flashing across emails, while others are pulling listings off MLS as we edge towards the holidays. A few well-priced gems were scooped up quickly since buyers feel satisfied that they have seen all the inventory that will come on this year, and they won't be missing out on anything new in the coming weeks. We start 2024 with low inventory all around us once again. Have a good week!!