With the current economic situation and market commentary, it’s normal to feel confused about what to do. This can often lead to decision paralysis, in which potential homebuyers are fearful of looking into a home purchase, and potential sellers are hesitant to explore the possibility of selling.
However, the best solution for such decision paralysis is information! It’s my hope that I can provide you with a bit of a clearer picture of the present situation, and this will allow you to approach one of the biggest decisions of your life, whether it’s buying or selling, with confidence and knowledge!
First, let’s talk about interest rates – because that’s the crux of it. With the inflation rates that we’ve seen over the last year, the Federal Reserve has been announcing interest rate increases in the hopes of pushing down demand and slowing down the economy, which should slow down inflation back to the Fed’s goal of 2 percent.
While some may be hopeful that the Fed will stop the rate hikes amid a weakening economy, this is unlikely to be the case. Fed Chair Jerome Powell himself said last month that the Fed would continue to accelerate the rate hikes if the economy remains as robust as it is now. You can read more about his announcement here:
Experts also seem to expect mortgage rates to hover around the same level in Q2 that they are currently at – despite some hopes for lower mortgage rates.
But what about one of the biggest trends that people pay attention to? I’m talking, of course, about home prices themselves!
We saw a huge increase in home valuations in 2021 and early 2022 as the economy rebounded from the pandemic and high demand for homes enhanced the values of homes around the nation. Now, however, it seems that the market may be taking a bit of a different trend. According to Bankrate, new home prices in the U.S. have fallen for over seven months now – an important trend for both buyers and sellers to be aware of! You can read more about this shift in home prices here:
It’s my hope that the above resources will be helpful and that this post gives you some context as to the state of the market. But as always, be diligent and do your research so that you can be a confident and informed buyer or seller!
And of course, if you would like to talk things over or just get a better sense of your position and options in the market today, please do feel free to reach out, as I would be happy to chat. I can be reached on my phone at (978) 270-7929
or by email
– I look forward to hearing from you!