The topic for 2023 is all about the supply of available homes. As of the third week of July, we only have four homes for sale in all of Solterra.
Why is this?
During the pandemic, we had subsidized interest rates and many owners refinanced their home loans into 2% and 3% interest rate loans. Interest rates are now hovering around 6% to 7%, so for many, it doesn’t make financial sense to jump into a new higher interest rate loan unless the move is absolutely necessary. I think we will continue to have a tight housing supply for some time to come, at least until we get back down into the lower interest rates, ie. 4%-5%. When we do see lower interest rates, I predict an increased supply of homes come to market and with that increase, we will definitely experience pressure on pricing.
If you were thinking about selling, we’re in an excellent low supply housing market, which makes it a great time to sell your house with little competition. Feel free to reach out to me to discuss in further detail.