submitted by Joe Cairo, Re/Max Centre Realty
As we are winding down 2022, so too is the real estate market. I will say that this year has been a roller coaster of a ride for our market. Not just our market, but for the real estate market as a whole.
In the first half of the year, we saw interest rates at around 3%. Now, as we are wrapping up the year, we are seeing rates at around 7%! That is a huge increase in such a brief period of time.
We can sit here and try to figure out what caused this, but just like anything else, inflation along with all good things, must always come to an end. Regardless of the increase in mortgage rates, our area was stable. Recently listed homes of mine, sold for asking price or slightly above! Multiple offers were received, but not in the numbers they were earlier in the year.
We can attribute that change to interest rates. Lower rates increased buying power which in turn, increased the number of buyers in specific price points.
What will the new year bring us? Assuming interest rates hold steady where they are, we should have a stable market with no increase in the prices of homes.
I feel the interest rates will stabilize and eventually come down a little bit but, not to the 3% rates that we were used to seeing earlier in the year. If you have any questions about the value of your home, please do not hesitate to call me at 215-630-9363.
Have a happy and safe holiday season!
PHOTO CAP: Joe Cairo