What is Really Happening Right Now

Sometimes in life, we all just need a recap.  Like, it's hard enough to remember every character, plot point, and side plot. 

It’s December and we are only days away from Christmas.  In our business we have seasonal trends, but when it comes to real estate, home waits for no day. But with all the noise of excitement or gloom, let’s get you caught up.

First up, Home prices!    Even throughout 2022, we saw an incredible increase in home values.  In fact, nationally it was 10% year over year!  Although we aren’t seeing that high of an increase right now, home inventory is still under 2 months, and because of that, home values continue to rise.  Homes that are staged well, move in ready, and priced competitively are getting top dollar and even multiple offers.  And with values continuing to increase, homeowners are building more equity each year.  

And then everyone's favorite, the Interest rates.  This has been the one moving factor aimed at stopping inflation that has been heard around the world.  And even this past week, the Feds increased the rates by half a point.  But even with the higher interest rates, these are only temporary.  As soon as inflation goes down, so will the rates.  And during this time, there are some amazing lending opportunities for lower interest rates.  Which we have some recent videos on.  Additionally, because the interest rates are higher, there is less competition on the market, so buyers are able to get home inspections, home sale contingencies,  and even seller help towards closing costs.

So, should I buy?  Should I wait?  Is there an impending crash or a market spike?  To be honest, we can’t completely know.  But currently things are trending positively, as inflation is slowly coming down, and home prices have kept their values, especially here in the DMV.  Home ownership is more than just the price you pay.  It’s an investment, yes, but not just monetarily.  It's the place you create a life, where you build memories, a place you can feel safe…its home.