Hey Everyone! I just wanted to write a quick post and introduce a company that we have started utilizing to further our real estate business. Buffini & Company is one of the top real estate advisor companies in the U.S.. We look to them for a lot of market data and expertise. In addition, they provide a lot of value to real estate agents so we can better serve our clients. They just released their Bold Predictions 2023 Market Update and here are a few good take-aways from their video:
Interest Rates: Interest rates have increased at crazy rapid speed this year. They increased from 2/3% to just over 7% in roughly 4 months! The National Association of Realtors (NAR) expert economist believes we are past the peak rise in interest rates but the question now, is how fast will the rates decline? Probably not too rapidly. But it seems rates have peaked just past 7% and will slowly decline from here, at least that's the prediction from the NAR and Buffini.
Housing prices: Prices were at a 10% increase this past year in 2022 from the year prior. In 2023, housing prices are projected to increase by only 1%, steadying off a little. But they are also projected to increase by 5% in 2024, which means that it doesn't seem like home values are going to drop all of a sudden as so many may believe.
Unit Sales: The number of real estate transactions is down by 15% this past year. Which is a large drop since the rise of 8.5% in 2021. The number of transactions is projected to be better in 2023, but still lower than what we saw during the pandemic. This means that there are less buyers purchasing property right now and that is likely due to the fact that rates have increased so quickly. Thankfully rates are projected to be on the decline, hopefully encouraging buyers that it is still a good time to buy real estate.
In the market report, Brian Buffini asked the NAR economist what his best business advice would be for 2023. He said that when you have a good real estate market, such that we have now and what is projected for next year - Then you should be saving for a real estate investment or making a real estate investment if you are prepared to do so. I thought this was simple and wise advice.
It's good to note that the above data is based on the U.S. National market. This data isn't necessarily specific to our market here in Central VT. But you can bet I will do a local market update for you as well!
*disclaimer - the above research doesn't take into account new acts of war or environmental challenges that our country could face that can tend to impact the economy. This is just a prediction, there is no crystal ball!*
Talk with your trusted real estate expert to gain a better understanding of your local market and the best ways you can be investing in real estate.
Here is the link to the Buffini market update video resource:
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