How is the Market

“So, Matt how is the market,” was the talk at the fall party. I field that question a lot.  I actually enjoy speculating with everyone on what the market might look like in the coming months and next year. My favorite line is, “we don’t know what is going to happen, but we know it’s going to happen.”  But here is my $.02.   The median home price jumped every month this year until June when it reached a record high of just over $413,000 before falling to just over $389,000 in August. Some of these declines are seasonal, but most are due to the federal government increasing rates in an effort to keep inflation under control.  As of late, they have seen some positive indicators it’s working.  So, will rates keep going up? Maybe, but I think the more likely result is a little more stability in rates. Forbs and some economists are still forecasting a 2.8% increase in home values next year down from a 9.8% forecast for the end of 2022.  Homes will still sell and buyers will buy, the pool of buyers and sellers will just be a little smaller.  The National Association of Realtors is projecting about 800,000 fewer homes sold nationwide next year, or about a 20% decrease year over year. 
It will still be a seller’s market from most key indicators, but buyers will have the luxury of time, something that was extremely lacking in the past few years. They can think about the decision more, have inspections, and get more concessions from the sellers. Days on market will continue to increase for most homes, but because of the lack of inventory, sellers should still see some increases in values next spring especially once we establish some market consistency again. 
As always, myself and the Pomerleau Team are here to be helpful and offer support in whatever area of real estate you need.   Ask questions early and keep us in mind for any friends or family looking to make a move.  We have the knowledge and expertise to navigate today’s market.