SPRING MARKET UPDATE

The housing market is not crashing. 

In fact, we are in the strongest real estate economy where 48% of homes are equity rich with at least 50% equity. 63% of mortgages originated are below 4%. 

Of note:

• Interest rates are fluctuating based on economic factors right now. Rates 6.5% - 7% mean limited buyer demand. Rates 7%-7.5% mean weak buyer demand. Lawrence Yun, chief economist of the Nat’l Assoc. of Realtors (NAR), expects rates to fall to 5.5% by mid-2023. Fannie Mae predicts 6.8% and Freddie Mac is 6.4%.
• Home prices will vary depending on location. Overheated markets are depreciating; others are appreciating. In NH, prices are up 5% thru Feb. 2023. The Home Price Forecast 2023 shows, for example, Realtor.com projecting +5.4%, CoreLogic +3.1%, NAR -1.6%, Fannie Mae -4.2%. Prices are expected to increase and reach more normal levels of 3%-4% annually starting in 2025.
• The biggest challenge is low inventory. The number of homes for sale in the US is 47.4% lower than it was before the pandemic. In NH, new listings are down 20.3% in Feb. 2023 vs. 2022. The lack of homes for sale has kept prices from falling. Fourteen years of underbuilding is one of the major reasons for this low supply.

Don’t let false information stop you from buying or selling. Contact me for the straight scoop on the real estate market.

Donna Forest   Listing Broker Contact me today! O: 605.526.4116 donna@donnaforest.com www.donnaforest.com

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