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A note from Tami Pardee
Fall is here! In the spirit of back-to-school season, I’m sharing some educational guidance on the real estate market and the future of interest rates. As you’ve seen, interest rates have gone up significantly since the beginning of the year and the latest hike comes as no surprise as the Fed tries to aggressively bring down inflation.
The long-term direction for interest rates certainly looks optimistic. However, given my experience and the cyclical nature of the market I understand that this moment feels scary and uncertain. I urge you to reframe this moment as an opportunity to take advantage of less competition in the market. If you’re a buyer and can manage current rates for the next 12-18 months, you can refinance in 2024 when rates are projected to fall. If you wait for rates to come down, you risk being in a tougher position and a more competitive market later.
I’ve always said Real Estate is the best hedge against inflation — a home is an incredible investment that you can also live in. Being educated about current rates and future projections can help you make informed decisions and seize greater opportunities.
I know the news about interest rates and mortgages can feel scary and confusing; please know that I am here to support you as an educational resource as you navigate the shifting market, and to provide experienced transparency to assuage any uncertainty. Pardee Properties is happy to be a source of information for you even if you haven’t bought or sold a home with us.
Please connect with us if you have questions about current market conditions or to learn more about what real estate decisions might make the most sense for you right now. Let us support you and educate you!
What I’m noticing in the market
Inventory is not what it was
Most areas on the Westside saw an uptick in available inventory of properties; however, these gains still haven’t caught the market up to the levels seen in the third quarter of 2021. As inventory rises, competition is not as intense — which historically leads to price reductions.
More days on market
In general, properties are sitting on the market a while longer than they were in the third quarter of 2021. This is measured by the average days on market by area — most areas on the Westside saw this number increase.