By Nedra Kanavel, Associate Broker, Idaho and Montana With the changing seasons comes a shift in dynamics within the housing market. As we approach the autumn of 2023, there are several trends and factors to watch out for. Firstly, interest rates are expected to remain relatively stable. The Federal Reserve's cautious approach to monetary policy is likely to keep mortgage rates around their current levels. This is good news for potential buyers, as steady interest rates can make homeownership more accessible and affordable. Prospective buyers can expect a continued window of opportunity to secure their dream homes without the pressure of rapidly rising rates.
One intriguing trend on the horizon is the peculiar buying pattern. While homes are increasingly being listed at a reasonable market value, buyers often seem to be waiting to act until homes are priced a little under their market value. The changing market might present buyers with an advantageous position to explore homes that offer excellent value for their money.
Interestingly, the online landscape is playing a substantial role in shaping buying behaviors. We are currently witnessing an unprecedented surge in online activity from potential buyers. Many are engaging with listings and showing their interest by liking and saving properties in much higher numbers. However, what sets this trend apart is the cautious approach that buyers are adopting. While the virtual world is bustling with activity, physical showings are witnessing a different trend. Buyers are more likely to proceed with showings when homes are priced below their market value. This indicates a deliberate strategy on the part of buyers to make the most of their investment and capitalize on the current market conditions.
With interest rates holding fairly steady (especially when compared to the historic rate increases last year), homes priced strategically below their market value, and a surge in online engagement, potential buyers have a unique window to navigate the market. As the leaves change colors, so do the dynamics of the housing market, offering opportunities for both buyers and sellers to make the most of this season of change.