submitted by Joe Cairo, Re/Max Centre Realty, www.josephcairo.com
Last year was a little bit of a roller coaster ride in the real estate market. The year started off with a bang, continuing the trend of 2021. Interest rates were very low along with inventory causing a frenzy of buyers and multiple offer situations.
But the second half of the year changed. Interest rates jumped from approximately 3% to about 7%.
That is a large jump in a short period of time.
Homes continued to sell fairly quickly because of the lack of inventory, but what changed was the number of multiple offers received on a property. Earlier in the year a home would receive 10 to 15 offers and by the second half of the year that same home would receive about two to three offers.
The obvious reason for the change is the jump in interest rates, decreasing the amount of buyers qualifying for that home and the increase in mortgage payments as well. If interest rates hold steady, we will see this trend continue in 2023.
At the moment, inventory still remains low which continues to drive a sellers’ market. If you have any questions regarding the local real estate market, please don’t hesitate to give me a call at 215-630-9363!
Happy New Year!
PHOTO CAP: Joe Cairo