It’s no secret that interest rates are significantly higher than they just a few years ago. Contrary to expectations, the impact of these increased rates on the real estate market has been minimal, with home values soaring, days on the market plummeting, and inventory remaining frustratingly low. In this blog post, we’ll explore the surprising state of the real estate market as of September 2023.

One of the most astonishing trends in the real estate market is the robust increase in home values. As of September 2023, home values have surged by almost 9% compared to the previous year. This surge has defied conventional wisdom, which suggests that higher interest rates should suppress demand and, consequently, home prices. Instead, buyers seem undeterred, and they’re willing to pay a premium for their dream homes.

Another noteworthy statistic is the substantial reduction in the number of days homes spend on the market. In a seller’s market, where demand outstrips supply, homes tend to sell more quickly. However, the rate at which homes are selling today is nothing short of remarkable. The average number of days on the market has decreased by a staggering 33%. This swift turnover suggests that buyers are eager to secure their new homes and are willing to act swiftly to avoid missing out on opportunities.

While soaring home values and rapidly decreasing days on the market suggest a hot market, the issue of low inventory remains a stubborn challenge. Despite the robust demand, the supply of available homes is struggling to keep pace. The shortage of homes for sale has created intense competition among buyers, which in turn, continues to drive up home prices. This imbalance in supply and demand is a dominant force shaping the real estate landscape.

Interestingly, while the real estate market has faced some headwinds, the overall health of the market remains solid. As of September 2023, closed sales are down by almost 10% compared to the previous year. While this might seem like a significant drop, it’s important to remember that this decline is relative. The market was red-hot in 2022, and even with a slight dip in closed sales, it’s still performing well by historical standards.

In summary, the real estate market’s resilience in the face of higher interest rates is nothing short of remarkable. Home values are surging, days on the market are plummeting, and inventory remains frustratingly low. While closed sales have seen a decline, this is more a reflection of the extraordinary heights the market reached in 2022. The fundamentals of the real estate market remain strong, and buyers are displaying remarkable determination to secure their dream homes.

As we move forward, it will be interesting to see how the real estate market continues to adapt to the changing economic landscape. Will higher interest rates eventually have a more pronounced effect, or will the market continue to defy expectations? Only time will tell, but for now, the real estate market remains a beacon of strength and opportunity.

It’s no secret that interest rates are significantly higher than they just a few years ago. Contrary to expectations, the impact of these increased rates on the real estate market has been minimal, with home values soaring, days on the market plummeting, and inventory remaining frustratingly low. In this blog post, we’ll explore the surprising state of the real estate market as of September 2023.

One of the most astonishing trends in the real estate market is the robust increase in home values. As of September 2023, home values have surged by almost 9% compared to the previous year. This surge has defied conventional wisdom, which suggests that higher interest rates should suppress demand and, consequently, home prices. Instead, buyers seem undeterred, and they’re willing to pay a premium for their dream homes.

Another noteworthy statistic is the substantial reduction in the number of days homes spend on the market. In a seller’s market, where demand outstrips supply, homes tend to sell more quickly. However, the rate at which homes are selling today is nothing short of remarkable. The average number of days on the market has decreased by a staggering 33%. This swift turnover suggests that buyers are eager to secure their new homes and are willing to act swiftly to avoid missing out on opportunities.

While soaring home values and rapidly decreasing days on the market suggest a hot market, the issue of low inventory remains a stubborn challenge. Despite the robust demand, the supply of available homes is struggling to keep pace. The shortage of homes for sale has created intense competition among buyers, which in turn, continues to drive up home prices. This imbalance in supply and demand is a dominant force shaping the real estate landscape.

Interestingly, while the real estate market has faced some headwinds, the overall health of the market remains solid. As of September 2023, closed sales are down by almost 10% compared to the previous year. While this might seem like a significant drop, it’s important to remember that this decline is relative. The market was red-hot in 2022, and even with a slight dip in closed sales, it’s still performing well by historical standards.

In summary, the real estate market’s resilience in the face of higher interest rates is nothing short of remarkable. Home values are surging, days on the market are plummeting, and inventory remains frustratingly low. While closed sales have seen a decline, this is more a reflection of the extraordinary heights the market reached in 2022. The fundamentals of the real estate market remain strong, and buyers are displaying remarkable determination to secure their dream homes.

As we move forward, it will be interesting to see how the real estate market continues to adapt to the changing economic landscape. Will higher interest rates eventually have a more pronounced effect, or will the market continue to defy expectations? Only time will tell, but for now, the real estate market remains a beacon of strength and opportunity.