“The bulk of the year was very similar to 2021,” says Jessica Dillenbeck, president of the Greater Binghamton Association of Realtors. The year, much like the preceding years, was marked by low interest rates combined with a shortage of inventory that made it a seller’s market. That lasted until summer when interest rates started increasing. […]
“The bulk of the year was very similar to 2021,” says Jessica Dillenbeck, president of the Greater Binghamton Association of Realtors. The year, much like the preceding years, was marked by low interest rates combined with a shortage of inventory that made it a seller’s market.
That lasted until summer when interest rates started increasing. Currently around 7 percent, rates earlier in the year were as low as 3 percent.
The rising rates meant it wasn’t quite the frenzied market with buyers offering over asking price or waiving home inspections to seal the deal, says Ann Rushlo, executive officer of the Mohawk Valley Association of Realtors. It also means a buyer’s dollar doesn’t buy as much house now as it did earlier this year.
While that cooled things off some, Rushlo says, there are still buyers out there and not enough homes for sale to meet demand.
That limited inventory actually predates the pandemic, Dillenbeck says, but was exacerbated by the pandemic and low interest rates. People were spending more time at home, interest rates were good, and it just made sense to buy, she says.
At the same time, Baby Boomers are staying in their homes longer, she says, further decreasing the inventory of homes on the market.
Looking ahead, both Rushlo and Dillenbeck expect things to continue much as they have, but with more normalized prices and, hopefully, steady or decreasing interest rates. Lawrence Yun, chief economist for the National Association of Realtors, predicts mortgage rates have topped out, especially after October’s consumer-price index showed inflation was rising less than expected.
While there are some challenges ahead for 2023, Dillenbeck says, interest rates are not as big of a concern as some might make them out to be. In general, rates are still affordable, she says. “We’re so hyper focused on it right now,” she says, but buyers need to use airplane view versus microscopic view.
“It’s hard to predict a whole year because who would’ve predicted the past couple of years,” Rushlo says. “I don’t necessarily see our local market changing drastically.”
In his November report, Yun predicts home sales will decline 7 percent in the coming year while the national median home price will increase just 1 percent. That last figure will vary by market, with some gaining more and other markets experiencing price declines.
He predicts a stronger rebound for 2024 with a 10 percent increase in home sales and a 5 percent price increase.
“Houses sell every day, and there are typically buyers looking every day,” Dillenbeck says.
These days, that buying and selling happens in a variety of ways thanks to changes that came along with the pandemic, Rushlo says. Showings can be virtual instead of in person and there’s even an electronic option for document signing if people can’t make it to a closing in person.
“It’s an industry that’s adapting to the changes,” she adds.