Spring Market – Déjà vu 2023
No crystal ball here, but don’t hold your breath for a housing inventory boom or major price drops. If you were banking on 2024 being the real estate savior after holding off in 2023, well, the vibes aren’t too great. Mortgage rates, are still on the high side, and finding a decent house is like searching for a needle in a haystack. But if those rates dip, even a little, things might get interesting. Less expensive houses and folks with lower rates might finally decide to throw their homes in the ring.
Buyer demand is still riding high. And Sellers who’ve been sitting on the fence, holding onto their sweet 3% interest rate, can only hang out for so long. Life happens – growing families, downsizing, retirement, you name it – inevitably it keeps the market moving.
Home inspections and renegotiations have been on the rise hinting that buyers might be gaining some extra bargaining power. It’s a promising step toward finding balance in the market.
Some good news, interest rates seem to be inching down and Westwood’s property tax rate got a haircut from 14.30% to 12.81%… But don’t take your kazoos out yet – the recent Mass Appraisal Process countered with increased appraisal values of 18 – 25% leaving many recent buyers with sticker shock.
Now, how’s all this affecting the upcoming local real estate game for buyers and sellers? For buyers, the revamped tax rates might cramp their style, messing with their buying power, jacking up monthly payments, and adding extra zeros to closing costs. This will also prove more challenging for price-conscious buyers who had anticipated some relief through a later refi.
Sellers on the flip side, might have to adjust their expectations to counter the new tax payment to keep their homes “affordable” (vocab of yesteryears).
On the development side, as a design resource to many builders in the area, we have personally seen modest growth in the new construction segment of the residential market – with quite a few New Construction homes coming to market for late fall of 2024, hint… hint. The long lead time associated with new construction often prevents developers from quickly capitalizing on market opportunities. The longevity of this unprecedented market has held steadfast allowing builders to get into the game and take advantage of the ongoing inventory shortage.
On the development side, as a design resource to many builders in the area, we have personally seen modest growth in the new construction segment of the residential market – with quite a few New Construction homes coming to market for late fall of 2024, hint… hint. The long lead time associated with new construction often prevents developers from quickly capitalizing on market opportunities. The longevity of this unprecedented market has held steadfast allowing builders to get into the game and take advantage of the ongoing inventory shortage.
The recent tax shake-up definitely throws a curveball at buyers and sellers. Stay in the loop with a savvy real estate agent who knows the local scene, understands the nuances of the various pockets of Westwood, and has ninja negotiation skills. Brace yourself for a 2024 that might just be a déjà vu of 2023.
