1,202,422
Have no idea. I think we're in for a challenging 4th of 2022 quarter and 1st & 2nd quarters for 2023. Now that I've said that we will have a smoking 3 quarters...lol. I think rates will rise to 8.5% - 9%. Markets go up and markets go down. The same is true for interest rates. The good news is, people buy and sell real estate in all sorts of market conditions.
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Nina Hollander, Broker
Charlotte, NC
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Kris Collis, Associate...
East Stroudsburg, PA
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Debe Maxwell, CRS
Charlotte, NC
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Emily Medvec
Santa Fe, NM
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Kathleen Daniels, Prob...
San Jose, CA
3,350,439
I would like to answer this question after the upcoming election results are in! My take is that things will get better or much worse depending on the election results.
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Nina Hollander, Broker
Charlotte, NC
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Brenda Mayette
Glenville, NY
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Debe Maxwell, CRS
Charlotte, NC
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Doug Dawes
Topsfield, MA
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Kathleen Daniels, Prob...
San Jose, CA
459,182
Great question for all of us. Frankly, I think what the institutional investors and renters do next will determine more about inventory than the typical seller or homebuilders. If both sellers and renters remain in a stuck mindset and rents begin to fall, then investors will sell. I have no crystal ball. I watch the numbers, supply chain issues and reports from homebuilders, MBA and NAR. I think it may take 1 to 2 more years before this current situation of rates and low inventory adjust into a new stability. As for my buyers and sellers, my focus is finding a real estate solution for them today...not in the future.
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Nina Hollander, Broker
Charlotte, NC
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Kris Collis, Associate...
East Stroudsburg, PA
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Debe Maxwell, CRS
Charlotte, NC
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Doug Dawes
Topsfield, MA
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Kathleen Daniels, Prob...
San Jose, CA
381,387
NEVER
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Tammy Lankford,
Eatonton, GA
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Nina Hollander, Broker
Charlotte, NC
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Debe Maxwell, CRS
Charlotte, NC
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Wanda Kubat-Nerdin - W...
St. George, UT
906,912
Our inventory is still fairly low at 1.5-2.5 months. Who knows about mortgage rates? I'm on the edge of my seat waiting to find out.
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Nina Hollander, Broker
Charlotte, NC
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Brenda Mayette
Glenville, NY
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Debe Maxwell, CRS
Charlotte, NC
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Kathleen Daniels, Prob...
San Jose, CA
921,504
Normal typically means 6 month inventory. I don't see that happening in Florida for years. further, interest rates will fix at around 4%. That gives the FEDs some room to mess with the economy.
What I am seeing is mega-plexes of apartments being built.
What I am seeing is investment groups buying executive homes to put into the rental pool.
As America becomes a nation of renters the definition of wealth and even middle-class will need to change.
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Debe Maxwell, CRS
Charlotte, NC
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Kathleen Daniels, Prob...
San Jose, CA
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Hella M. Rothwell, Bro...
Carmel by the Sea, CA
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Doug Dawes
Topsfield, MA
195,522
It seems like somebody asks a variation of this question once a week.
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Debe Maxwell, CRS
Charlotte, NC
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Brian L. Sirota, Esq.
Orange, CA
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Michael Jacobs
Pasadena, CA
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Doug Dawes
Topsfield, MA
3,140,848
No crystal ball here, Philip. I pay attention to trends and subtle changes in the real estate market and rely on reliable data to help buyer and seller clients!
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Nina Hollander, Broker
Charlotte, NC
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Debe Maxwell, CRS
Charlotte, NC
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Kathleen Daniels, Prob...
San Jose, CA
7,869,863
Time will tell. We have an inventory shortage in our area. Don't expect low interest rates for a long time.
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Nina Hollander, Broker
Charlotte, NC
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Debe Maxwell, CRS
Charlotte, NC
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Wanda Kubat-Nerdin - W...
St. George, UT
637,484
You gotta love real estate. I got into the business in 2006 and the market crashed spectacularly. From then, it's been a roller coaster and, it seems, something we didn't expect always comes next. And through it all, I've seen buyers waiting on the fence for something that will be more advantageous to them. If they need to get a loan, bet they now wish they had bought when interest rates were around 2%. Will it come back down to that? Highly unlikely with what we know now. As to current sellers, and getting the inventory up? With prices going back down, what is the incentive for the seller?
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Nina Hollander, Broker
Charlotte, NC
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Debe Maxwell, CRS
Charlotte, NC
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Wanda Kubat-Nerdin - W...
St. George, UT
5,115,773
Based on your question, I'm assuming you believe a buyer's market is a "normal" market. Not sure I would agree... in the Charlotte metro area it's been almost 10 years since we had 7 months of inventory. We are still at only about 1.4 months and new listings have dropped for four consecutive months. It could be a long time before we see a balanced market at 4 months. At the end of the day, how does one define a "normal" market?
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Brenda Mayette
Glenville, NY
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Doug Dawes
Topsfield, MA
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Kathleen Daniels, Prob...
San Jose, CA
5,244,229
My crystal ball is broken as to when and what is normal these days. As for rates in the 4 to 5% range, that is wishful thinking!
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Debe Maxwell, CRS
Charlotte, NC
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Nina Hollander, Broker
Charlotte, NC
6,423,260
I have been enjoying the Normal market that we have had for the past 5 years.
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Debe Maxwell, CRS
Charlotte, NC
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Nina Hollander, Broker
Charlotte, NC
1,506,763
I try not to prognosticate, since there are so many factors. As my mentor, The Magic 8 Ball, once told me "Reply Hazy, Try Again."
There is just too many unknowns. Fuel issues, hyper inflation/stagflation, the recession we've been in for several months now, multiple potential major wars (China, Ukraine), the election, laws and rules that sound good to voters but in reality make our problems worse, high unemployment and many needing to take second jobs to feed their families (making them 3-4 income homes).
I don't see the national housing supply tripling (3x) to increasing six-fold in the next 6-7 months, which is what it would take to get us back to a balanced market, unless there was a major external factor (such as multiple large companies leaving and taking their employees with them), but that would only impact specific regions.
Rates will come down. Some people with much, much, much bigger brains for this stuff than I think we'll be back in the 5% range within 2 years, maybe a lot sooner. You can only lower the rates so much to stimulate the economy before you're in negative territory like Greece and Japan were, and that doesn't do your country any favors since banks lend depositor money (which is how they get the money to pay the joke that is the 1%-2% bank interest rate). They have to raise it so they can drop it when needed.
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Debe Maxwell, CRS
Charlotte, NC
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Nina Hollander, Broker
Charlotte, NC
902,238
There may be a new "normal", who knows? Rates will come down, but not too soon. I know that's not a real answer, but that's because no-one knows the answer.
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Debe Maxwell, CRS
Charlotte, NC
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Kathleen Daniels, Prob...
San Jose, CA
2,785,276
Probably reach 5% middle of 2023 noting that a significant part of the Real Estate industry is being affected. For location-based homes (coveted), they will continue to hold their value and be in demand. For inventory in general, perhaps back down to 2-3 months' supply. Keep an eye on new construction sales which are very telling. First time buyer and trade-up market makes itself known in that arena. One thing though, those mega-equity rich owner/sellers are seeing the safest place for their money as well as their heirs is in Real Estate. A percentage of those will sit tight & wait
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Debe Maxwell, CRS
Charlotte, NC
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Doug Dawes
Topsfield, MA
5,257,583
The Charlotte Metro has years to go in my estimation but, then again, I am not qualified to 'predict' our market...just giving you my hypothetical crystal ball opinion!
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Nina Hollander, Broker
Charlotte, NC
766,669
Inventories are growing as sales decline. I would guess that in December there will be a lag that leads to 6 - 7 months on the market rate. Interest rates should come down after the first of the year especially if Congress changes hands.
133,651
I want to thank everyone for their "guestimate" as to the future of inventory. Reading other opinions online, as long as demand is greater than supply then the current market just may be our new norm; but we'll see what changes occur over the next 6-12 months. As far as interest rates, if they don't lower them over the long run, our economy will surely suffer; but how much lower is the real unknown. The Fed has to tread lightly, but not sure if they know what that means after today's 3/4% increase. I am not sure inflation is as high now as it has been, but housing and energy are still up there as well as food. Job creation is still higher than the Fed wants so we'll see what they propose in December.