In 2023, the Local Real Estate Market continues to be strong!
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The Supply Chart
Supply is below normal, keeping prices in better shape than we expected due to the interest rate hikes.
Supply may continue to be low as so many Homeowners are in mortgages that are below 4%...why would they move?
The Appreciation Chart
Rapid appreciation occurred 2020-2022.
Appreciation is flattening, but not the decline you may hear in the news!
We almost always see a 3Q dip in sales. This is due to the seasonal effect on the Luxury market.
Unless we get an unexpected source of new supply, 4Q should show a rebound from that dip.
The new Message – sourced from what our best short- and long-term indicators are telling us:
SHORT TERM: Look for continued improvement this year, barring systemic external forces. (Interest rate hikes, currently in the 6-7% range, well below the 50-year average)
LONG TERM: Our bank grade 5-year forecast ‘sees’ a flattening of prices in the Valley over the next 5-years’…and here comes the punchline:
‘May that 5-year forecast hold – as it sustains the massive equity / appreciation that has been accrued in recent years.’
FOR SELLERS: Seller gains will not only be sustained but may see some additional gains in the short term. Note that today’s Buyers are “picky.”
FOR BUYERS: It suggests that while buyers may have missed that massive appreciation, their purchase of a Home as an asset makes sense, as it always has from that ‘asset’ perspective.
Be sure to contact us with any specific question about your Real estate assets.
