Was the Last Quarter of 2022 the End
for a Depressed Housing Market?
With the new year, many predictions were made regarding what the market might look like this year. Some experts predict that the last quarter of 2022 was the end to this depressed housing market era and here's why.
According to the California Association of Realtors, January’s Market Data Report was looking quite optimistic. As explained in the report, the daily average of closed sales is at 363 closes per day, on top of that we are seeing an average of 188 new listings per day and 231 pending sales. REALTORS® are predicting that sales will be up by 23.5% and listings will be up by nearly 40% within the next few months. Although it is not expected to see a drastic change in home prices, there was a slight decline in the median of home prices statewide. Some experts go as far as saying we may not see a huge tilt in the market this year; not quite favoring either buyers or sellers but a more balanced market.
Although interest rates may seem like a nightmare, NerdWallet reports that over the last 50 years, 30-year mortgage rates have averaged 7.5%. CNET shares that although in 2023 we may be seeing higher interest rates, the big increases are most likely staying in the past. Surprisingly within the last few days, there was a slight increase in the 15-year fixed mortgage while the 30-year seemed to trail off. Although the market is constantly changing and it's not always predictable, we are seeing some positives so far this year.