The 2023 spring market is in full swing. Here’s what’s happening.
What’s happening with the current 2023 spring market, and how is it forcing a shift in the expectations of both buyers and sellers? You may have already heard about this shift through various online platforms and radio broadcasts. As we delve deeper into the current market situation, we’ll explore the changes that have taken place and how they impact different stakeholders in the real estate industry.
We’ve seen interest rate changes, and while there’s still some fluctuation, it’s now occurred at a point long enough where it has established the current market. With that, we have definitely seen some change in buyer activity. Buyers are still getting approved for financing for loans, but there’s been a change in the number of buyers actually showing properties.
In the last couple of years, homes were selling so quickly that buyers couldn’t take their time to make decisions on what they wanted to purchase. Now, there’s a little more patience for buyers, which is a different pace than it has been for years. As an industry, we all need to shift our expectations and adjust to the latest trends.
“Lenders are working very hard to make monthly payments more manageable.”
We are still seeing some multiple offers happening in some pockets, particularly in the entry-level scale and some townhomes. However, the key reason we’re not seeing it like we used to is due to an affordability change. Buyers are looking at payments and budgets and making decisions based on that. With the increase in rates, buyers are really considering that in their offers and what they can afford.
Lenders are working very hard to impact affordability and make monthly payments more manageable. There are some options for people, but we are at a point where prices have now come to the highest they’ve been in a long time and our interest rates are also rising. These two factors are colliding.
Interestingly, we are still in a seller’s market in terms of inventory, with five or fewer months of inventory on the market. This is an interesting change that we, as agents, are working to navigate with our clients.
If you have any questions about the ever-changing market that we’re seeing right now and where we’re heading in the late spring and summer markets, please call or email us. We’re happy to help.
