The state of the market is always evolving and changing, but what exactly does that mean for new homebuyers and sellers? Dr. Marci Rossell, former CNBC chief economist, recently shared her insight on the economy and her prediction for what to expect over the next few months. If you’re planning on moving in 2023, take note.
Although inflation remained steady month over month at 8.2% in September, we have been experiencing a relatively steady decline since its peak at over 9% in June. While recent shocks to food prices hindered the inflationary downtrend, a major driver of recent inflation – used car pricing – is now edging down significantly month over month. Consumer spending patterns overall are starting to return to normal, and inflationary patterns are reflecting that trend.
Industry headlines are sounding alarms over the recent hike in mortgage rates to over 7%, but Dr. Rossell reminds us that 7% is the long-term average. If the Federal Reserve continues to raise rates, we will likely see additional increases in mortgage rates – although not necessarily at a steady pace. Swings are likely during times of economic uncertainty.
While we have seen a drop in home sales since the beginning of the year, homeowners are still building equity, even as home prices stabilize across the country. Although the market seems to be slowing down, we are really just experiencing a return to normal following an unprecedented 24-month overheating of the housing market.
Enter 2023 with a new mindset and a good grasp on the economy. If you’re curious about homes available in Sarasota, or are interested in putting yours on the market, email me at AmyChapman@michaelsaunders.com. I’m happy to walk you through your options.