Two Big Questions

Many people have been asking me these two important questions…

1. Will Rates Go Down this Year? 

Not by much, no. If anything they'll go down by half a percent. The inflation numbers for January just came in and year over year we are at 3%, that's not the Fed's target. If you are waiting for interest rates to drop to 4, you may have to wait a long time unfortunately! I think when they do go further down in 2026, we will be looking at maybe 5.5% as a "great" interest rate, not 3.5, and certainly not 2.5. A half percentage rate drop though can have a big difference in your monthly payment. I would be surprised (happily) if we see things below 6.5% this calendar year. 

2. Will Housing Prices Finally Come Down? 

No, but I do not foresee them rising like they have by 5 to 12%. I think we will see a 2-4% increase in home prices in the GR area. Demand is still outpacing supply, but more people will put their homes on the market this spring which should ease our inventory woes. If you are waiting for home prices to fall before you buy, they shouldn't, unless we have some cataclysmic event. The best you can hope for is flat or slightly higher from last year. 

Please dont hesitate to email, text, or call if you have any questions or want to discuss the market...I love hearing from you and I love talking about Real Estate! 

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-Joe