What to Expect Moving Forward

Buyers, have we hit the bottom?  

If you have been looking for a few weeks you probably feel like the market has picked up and it has.

With the current state of rates, stocks, and low home inventory buyers are probably feeling a bit more confident these days.

The question is where do we go from here?

I admit I am really surprised that the stock market has been so positive in the last few weeks.  This optimism has also caused mortgage rates to drop close to 6%, something I also didn’t think would happen so soon in the year.

The one thing that I am certain of is that home inventory will likely be low throughout the year.  

Although I expect the current stock rally won’t be sustained and that mortgage rates to probably hang around the low to mid 6% range in the next few weeks and months, I don’t foresee a situation where inventory will climb to very high levels.

This will help home values remain strong at least for the short term. 

All this optimism isn’t going to be good for inflation and may cause the FED to continue to raise rates.

The last time the FED reversed its rate hike plans in 2018 it may have been prompted by the stock market sell-off.  This time the stock market is holding up, and there is inflation which wasn’t a factor in 2018, which makes me wonder if that will prolong the period before the FED reduces rates.

As you can see, there is no way to know how this will play out.

My advice to buyers is to continue to shop and be active.  Home buyers are likely to start getting nervous once they hear about the multiple offer situations happening in the market.   This can cause more aggressive bidding and competition, so be prepared. 

I think in a matter of a few weeks, we will start to see the stock market sell-off

again as the market stalls and the reality of the FED not backing down sets in.

In the meantime, conditions for buying in the market should be improving in the coming weeks as more homes eventually come on the market.

Sellers, there is very little competition out there right now if you are selling a home.

This situation may continue for several weeks, even months.  Typically inventory starts to really climb in the March to April months.  By May and June the market isn’t moving so quickly because buyers have more homes to choose from and many have already bought homes. 

That is what typically happens, I am not so sure that will be the case this year.  Sellers seem to be choosing to sit this market out for whatever reasons.

My advice to sellers is if you want to make a move especially if you are thinking of making a move to a market where there is more new construction and supply of homes like Nevada, Idaho, and Texas then this market may be a great opportunity.

There are lots of reasons why selling and buying in this market makes sense.  Here is an article I wrote on the advantages of selling in slow markets.

Instead of offering general suggestions here, I would encourage sellers who have questions and concerns about selling in this market to reach out to an agent. 

Understanding your specific situation helps in determining how this market will affect you and your options.  I offer free consultations to buyers and sellers to discuss their needs, so please reach out, I am always happy to help.