Every buyer and seller should know about these three market trends.

With rising costs and increasing demand, how is the housing market faring? Today, we’re here to talk about the latest trends in the 2023 real estate market. Here are the top four trends to watch for:

1. Low inventory. There is a shortage of homes for sale throughout the country. However, there is some good news: since May of last year, the inventory has been slowly increasing, and in November of that year, there was a significant month-over-month jump of about 46% in housing inventory compared to the same time the previous year. Nevertheless, it's important to note that the active home listings in November 2022 were still around 38% lower than the pre-2020 inventory levels. This means buyers need to be prepared to act quickly to secure their desired homes.

2. Rising home prices. Though the growth rate has slowed down compared to earlier in the year, the national median home price for active listings saw an 11% increase in November 2022 compared to the previous year. In Charleston, home prices are rising between 5% to 30% depending on the area, making it essential for buyers to set a budget limit and save for a substantial down payment.

“Buyers need to be prepared to act quickly to secure their desired homes.”

3. Increasing mortgage rates. The average rate for a 15-year fixed-rate mortgage reached its highest point in over 15 years in October 2022. Higher interest rates can impact affordability, so buyers need to carefully consider their options and stick to their budgets.

4. A rise in risky buying options. Some individuals are resorting to down payment loans or purchasing homes with no money down. However, these approaches can lead to higher interest rates and fees, as well as financial strain. It's crucial to prioritize a reasonable, low down payment and avoid risky options. Then you can prevent potential foreclosure or short sales.

These trends require careful navigation for both buyers and sellers. Work with an experienced real estate agent to make informed decisions and stay in control of your largest financial investment. Whether you’re buying or selling, don’t hesitate to call or email us. The market may fluctuate, but with our knowledge and guidance, you can make sound choices.