_________________________________________________________________________________________
Custom
Homes
What are your predictions for 2023 ?
Rates seem to be staying elevated through the peak real estate season of 2023 at this point , meaning people are less inclined to move if they do not have to . With inflation and banking in question more recently , people are becoming aware of how these factors affect their purchasing power . People that have to move are doing so , and are hoping that rates come down so they can refinance . The scarcity will continue though as long as rates and prices continue to price people out . The luxury markets seem to be less affected by rates , mainly because they can afford the time it takes for rates to come down and refinance , or they put more cash down initially and cash out refinance when rates are lower .
Omar ’ s concluding thoughts highlight that this real estate cycle has many factors combating each other . “ At the moment , rate hikes are the only answer the Federal government has come up with to try and quell inflation , and while some markets grew at a breakneck pace during the pandemic , others are seeing a two percent decrease to accommodate the elevated interest rates . People with liquidity will still be able to buy real estate in addition to putting more money down , and planning a cash out refinance at a later date . The best case would be for rates to decrease once inflation and consumer goods are back to reasonable prices . This will allow more people to participate in real estate ownership and building equity .” ■
Revere Real Estate www . revererealestateco . com
modernhb . com 29