Current clients, past clients, friends, and family,
In 2022, our team was fortunate to help over 60 clients and their families buy, sell, and rent their homes. We remain incredibly grateful to the wonderful community of people who hire us to represent their interests in one of the biggest decisions of their lives. Below you will find a reflection on this year’s real estate market and what lies ahead.
As we look back on 2022, it’s safe to call it a “tale of two markets.” As 2021 closed out and we started the year anew with interest rates between 3-3.5% on a 30 year fixed rate mortgage; lows that year were found in July at 2.75% and were historic. As I write this in late November of 2022, those rates have more than doubled to 6.5%-7%. It’s hard to overstate the impact that this has had on the market - primarily on affordability and demand, but not necessarily on average sale price.
The winter and spring of 2022 were characterized by multiple offer scenarios with buyers bidding 10-20% above the list price consistently. This environment disappeared rapidly as rates increased in late spring and early summer and continued into the fall market. As the fall market kicked off, buyers were seeing price moderation and in some cases reductions, but their cost to carry property increased significantly alongside rate hikes.