Back in Balance?
You may recall that this time last year, there were only 9 homes for sale in Washington Park. This year there are a whopping 21 available. Even though that is a 133% increase from last year, that is the second lowest December inventory in the last 10 years. So, we are headed to more balance in the market but not there yet. Just to put it in perspective, on Dec. 1 of 2009 and 2010, there were 120 to 125 homes available for sale. We were selling 20-40 a month. THAT was a buyer’s market.
My prediction for 2023 is that inventory will remain well below historic averages. However, demand will also remain lower as long as interest rates remain high. That is because of all of the reasons you probably have already read in the press, high rates for buyers and low rates for those who bought or refinanced in the last two years. This is causing those with low rates to stay put and discouraging those who need a mortgage. The winners this year could be the move down buyers. Those with large amounts of equity can take advantage of all of the value increases over the last few years and pay cash on the buy side, thus avoiding the high interest rates. Furthermore, they are not likely to see much competition on the buy side and they can put any excess that they don’t spend on the new place to work at a more attractive interest rate. If you have been thinking about a move and wondering what this market might mean for you, please don’t hesitate to be in touch.
Happy Holidays from all of us here at The Bridge Team!