The Top 3 Housing Market Questions on Most People's Minds

When it comes to what’s happening in the housing market, there’s a lot of confusion, as well as uncertainty. You may hear one thing while talking with your friends or co-workers, see something totally different on the news, and then read something on social media that contradicts all of them. And, if you’re thinking about making a move, this inconsistency can leave you with lots of questions. That’s where a trusted and experienced, 5 Star, local real estate agent comes in. And to help, here are the top 3 questions people are asking about today’s housing market, and the data to help answer them.

1. What’s Next for Mortgage Rates?

As we all know, mortgage rates are higher than they’ve been in recent years, and, if you’re looking to buy a home, that impacts how much you can afford. That’s why so many buyers want to know what’s ahead for mortgage rates. The answer to that question is: No one can say for sure, but here’s what we know based on historical trends.

There’s a long-standing relationship between mortgage rates and inflation. Basically, when inflation is high, mortgage rates tend to follow. Over the past year, inflation was up, so mortgage rates were too. But inflation seems to be stabilizing some. And this is why the Federal Reserve has recently paused their federal funds rate hikes, which is part of the reason why we started to see mortgage rates begin to come down.

However, it’s certainly been volatile and will likely continue to be that way going into next year. Some ongoing variation is to be expected, but the anticipation is, that in 2024, we’ll see a downward trend. As Aziz Sunderji, Strategist at Home Economics, says:

“The bottom line is that interest rates are likely to be lower-perhaps even lower than many optimists think – in the weeks and months to come.”

2. Where Are Home Prices Headed?

While there’s been a lot of concern prices would come crashing down this year, data shows that didn’t happen. In fact, home prices are rising in most of the nation. Experts say that trend will continue, just at a slower pace that’s much more normal for the housing market – and that’s a good thing.

To help show just how confident experts are in this continued appreciation, take a look at the Home Price Expectation Survey from Pulsenomics. It’s a survey of a national panel of over 100 economists, real estate experts, and investment and market strategists. As the graph below shows, the consensus is, that prices will keep climbing next year, and in the years to come.

3. Is a Recession Around the Corner?

While recession talk has been a common thing over the past few years, there’s good news about this. The Wall Street Journal (WSJ) polls experts on this topic regularly, and last year at this time, most of them thought a recession would have happened by now. But as experts look at all the leading indicators today, they’re changing their minds and saying a recession is getting less and less likely. The latest results show that more experts now think we’re not headed for another recession (see chart below):

This is great news for the housing market. And while the 48% - 52% split may seem close to half and half, the main thing to focus on is that the majority of these experts think we’ve avoided a recession already.

Bottom Line

So what’s the big takeaway? The data shows there isn’t cause for concern – there’s actually more signs of hope. Reach out to me should you want to talk more about any housing market questions on your mind as we head into the new year.

We hope this has been helpful and given you some insight and even eased any anxiety about the state of the market and mortgage rates. If you’re thinking of listing your property, or if you don’t own a home, condo or townhouse, and you’re interested in buying, let me know so I can help walk you through the current market conditions. I also have several resources and referrals from my many years of success in the industry that can assist you on this journey too. As an 11 year, Five Star Professional Real Estate Agent, knowing that no matter what is happening in the economy and interest rates (and especially now), you need an exceptional real estate broker on your team…and you’ll be in great hands with my team and me!

Please reach out, I’m here to assist and help you “move forward,”

Teresa Catania, Broker
West + Main Homes Oregon
Bend Oregon | Central Oregon | Portland Oregon
503-740-3293
teresa@teresacatania.com