Inventory Surge and Rate Resilience
As we bid farewell to 2023, it’s time to reflect on a real estate journey marked by highs, lows, and transformative shifts. The Abilene housing landscape witnessed a notable surge in inventory, with the consumption rate climbing from 1.3 months two years ago to the current 3.5 months. The interest rate rollercoaster, hitting historic highs before a November retreat, kept both buyers and sellers on their toes.
Price Pressures and Market Dynamics
The pressure on sales prices became evident, showcasing a considerable monthly dip and a more moderate annual decline. While the total number of annual sales hit the lowest point since 2016, sellers were forced to adjust expectations in terms of both pricing and the duration properties are on the market. Meanwhile, buyers contended with affordability challenges driven by rising interest rates and home prices over the past couple of years.
Relief in Rates and Anticipated Rebound
Encouragingly, positive news on inflation brought relief to mortgage interest rates. Although they maintained stability through December, a steady, albeit slight, decline is anticipated as we approach spring. Home prices are poised to rebound, projecting a 2-4% annual appreciation, as mortgage rates create renewed interest and affordability in the market. Seller concessions, at their highest in years in 2023, are expected to decrease as demand strengthens in early 2024.
Shifting Dynamics and Expert Guidance
Navigating these market dynamics is no easy feat, especially given the volatility witnessed. Our team of full-time agents, armed with decades of market experience, stands ready to assist. Expect personalized service, consistent communication, and unparalleled value when you entrust our team to guide you toward your real estate goals. Contact us today to connect with a specialist tailored to your market needs.