A slight dip in interest rates has sparked a sense of optimism this week. As of December 7, 2023, interest rates stand at approximately 7%, down from 7.8% in October 2023. ( It is possible to find rates even lower than this) If this trend continues, it could have a very positive impact on the overall market for sure. However, the ongoing decrease in inventory, especially less around the holidays, remains a force behind ever-rising home prices, resulting in a 4.6% increase since November 2022.

“With the current 30-year fixed mortgage rate hovering around 7%, the purchasing power of potential buyers is still constrained compared to a few years ago,” “Additionally, existing homeowners with low-rate mortgages remain hesitant to sell, contributing to a continued drop in year-over-year transaction volume and market inventory levels.”

Recent weeks have shown a modest increase in activity, especially buyer activity. Buyers willing to navigate higher rates and stabilizing home values ( in some areas) are experiencing some success, including having sellers cover some closing costs and addressing necessary inspection issues on properties they are purchasing. The outlook for 2024 is a bit more positive and suggests an improvement in inventory levels. I for one am looking forward to this in 2024.