Rates Seem Stuck :(
Happy New Year!
As we step into 2025, we wanted to share some insights about the real estate market. Take a look at the graph below—a couple of things are immediately apparent…
The Market is Seasonal:
Like clockwork, our business slows during the holiday season. January starts the ramp-up for the year and things peak in the summer.
A Smaller Ramp in Recent Years:
We see fewer transactions over the past two years. Many buyers were hesitant to commit to what felt like “high” mortgage rates, and sellers also held back, not wanting to trade a 3% mortgage for 7%. But here’s the thing—rates haven’t dropped. Perhaps they won’t!
A recent social media post struck a chord: Back in 1971, mortgage rates were 7.33%. If you waited for rates to drop, you would have waited 22 years! During that time, real estate values quadrupled. Waiting might not have been the best move in 1971. The post’s conclusion was “Don’t wait to buy real estate.”
We realize that some buyers are simply priced out. With high prices, the doubling of interest rates made affording a home twice as tough; simply out of reach for some. But we imagine that a certain percentage of people who have put their home needs and dreams on hold for two years will likely move forward out of pure necessity, or perhaps having decided that waiting for rates to fall carries its own risks.
We hope 2025 is off to an amazing start for you. If you’re thinking about buying, selling, or just want to chat about the market, We are always here to help!
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