Happy New Year,
I am so thankful to live in our beautiful Bozeman area community. It’s no surprise that lots of people enjoy living here, and when they come, they stay.
This is quite apparent in our local real estate market numbers for the end of 2022. Many Gallatin Valley homeowners just aren’t wanting to give up their little piece of Paradise, contributing to the lower sales numbers and higher prices--despite national news headlines. Our local area market is still moving forward more positively than the national headlines suggest. Looking at the current national statistics, the number of sales this year has decreased, and prices have still been increasing this year, but at a more moderate rate.
We need to keep in mind that the euphoric real estate markets of the last couple of pandemic years are the outliers, not the norm. During the last half of 2020 and all of 2021, the market was in a virtual sprint, and we all know you cannot sprint forever. Lack of inventory is definitely the log jam in the system. With so many potential sellers fearful of placing their homes on the market and having nowhere to go, they are holding off and not contributing to the available inventory of homes for sale. This is creating a block in the usual flow of homes for sale.
The 2022 housing market has been defined by two key things: inflation and rapidly rising mortgage rates. And in many ways, it’s put the market into a reset position. Moving forward, experts agree it’s still going to be all about inflation. If it goes high, mortgage rates will be as well. But if inflation continues to fall, mortgage rates will likely respond. The Bottom Line: The 2023 housing market is going to be defined by mortgage rates, and rates will be determined by what happens with inflation. The best way to keep a pulse on what experts are projecting for next year is to lean on a trusted real estate advisor.
If you are curious what your home is valued at in this market, reach out. I can give you a cost market analysis (CMA) and we can chat about your options.
All the best,