October 25, 2023
It’s officially Spooky Season, and for the Real Estate market, it is no surprise that the season could stay longer than desired. With a lack of interest from buyers to buy, along with sellers to sell, here are some spooky truths about today’s unique market:
High Mortgage Rates
The Spooky Truth: Rising rates are definitely affecting the real estate market and the rates are not going down anytime soon. As banks aim to cut their portfolios, we could see rates hit as high as 8%.
Low Inventory/Seller’s Greed
The Spooky Truth: Sellers are in fear of losing their low-interest rate on their current loan, causing the housing inventory to be at an all-time low. Low inventory leads to the overpricing of homes, also known as seller’s greed; a lose-lose situation for our buyers.
The Spooky Truth: As election year 2024 approaches, many people like to stay put during election years due to the unpredictability of what could happen. This being said, our market is predicted to stay as hesitant as it is currently.
With a lack of motivation from buyers and sellers, we have found that although it is a seller’s market, the seller’s greed hasn’t been too successful. Most buyers aren’t desperate and are not willing to commit to a home unless they sniff out a great deal. Overall, the market currently consists of people who need to buy or sell, whether that be work relocation, divorce, death, resizing, etc. If you are finding yourself in a position where you need to sell or would like to tackle the spooky truths, call Jim Slater, “The Lakeshore Guy” at 612-590-1802, he has the experience and expertise to guide you through this spooky market.