2022 Recap:
Well, that was a bumpy ride wasn’t it! The year started out with mortgage rates at approximately 3% and ended up at almost 7%. We know that the Federal Reserve Chairman (Jerome Powell) is trying to slow down inflation by raising rates. The thing is, he needs help from all the other parts of the government. Raising interest rates isn’t the only thing that will help slow down inflation, but it is the most effective. I expect that mortgage rates will remain at this level until we are (at least) past the first quarter of the year.
The housing shortage still exists. We’re still about 3.8 million homes shy of demand. This is going to take a while to correct. Supply chain issues, rising costs and a lack of labor are just a few of the reasons that home builders are behind.
This being said, the total inventory of homes for sale declined from November of 2022 to the end of December 2022. Part of this decline is seasonal, but now we’re into 2023 and the ‘Spring Market’ is right around the corner. The main thing that puts downward pressure on home prices is the inventory of homes for sale. We’ll have to watch this key indicator (housing inventory) to see where home prices go. For now, even with higher interest rates, I see home prices in the Antelope Valley going up.
The accompanying information (Flyer) is based on national statistics. This will give you an idea of what’s going on in other parts of our county. Real estate is local, every community is different. If you have any questions whatsoever, feel free to call, text, email or message me, I’m here for you.
Fun Facts: The Rose Parade began in 1890. The Carnation is the birth month flower, Garnet is the birth stone and the Zodiac sign is typically Capricorn (Dec 22 to Jan 19).
All of us at The Hier Advantage Real Estate Sales and Service wish you and yours a Happy and Healthy 2023.
Sincerely
Ron Hier
(661) 406-1562
[email protected]
