A NEW REAL ESTATE LANDSCAPE According to Ellie, there will likely be less transactions this year, and perhaps flat appreciation also. However, the needle is moving, with more transactions happening recently. “People are tolerating and adjusting to the 6% interest rates,” she said. But without a crystal ball in hand, it’s impossible to know what will happen. Ellie hopes that interest rates settle in the 5-6% range and believes the market could handle those numbers. “I don’t think we’re going to return to how things were, but we aren’t going to see a market crash either,” said Ellie. She has also fielded many questions about the state of foreclosures. “The foreclosures we’re seeing right now are simply processing the backlog created from the foreclosure freeze that the government imposed,” she explained. REBOUNDING & FORGING AHEAD Even after enduring shaky times in the recent past, the real estate market is warming up and people are dipping their toes back into the water. Looking ahead, it’s likely many people will hold onto their Iow interest rate mortgages for longer until they get used to the higher rates. These homeowners still have options other than selling, including remodeling, renting their current house, or just staying where they are. However, these factors will keep inventory low, which holds everyone in a market that slightly favors the sellers. Even as the market starts to balance out, Ellie advises buyers not to overextend themselves or make a purchase if
“With marriages, births, divorces and deaths, families grow and need larger houses, or seniors downsize. It’s real estate. It’s life.” they cannot afford the payment. Buyers must know their budget and stay within it. “We are returning to a normal and healthy market,” said Ellie. “It gives buyers and sellers time to slow down a little, think and make decisions that are a win-win for both parties,” said Ellie. n
41
March 2024 | The Business Review
Made with FlippingBook - professional solution for displaying marketing and sales documents online