The real estate market is off to a great start for the year. Prices increased 2.73% which directly offset the 2.8% depreciation that we saw the month before. January statistics are a result of December activity, so I am less interested in the appreciation since it is such a slow time of the year.
However, I am interested in the fact that buyer demand is increasing. Mortgage purchase applications were up 24 percent in January. Also, the buyers that are shopping can afford more home. Now that rates are mid-6’s, buyers with a $3,000 monthly budget have gained nearly $40,000 in purchasing power since interest rates were at a high of 7.8% in October. The combination of these will inevitably lead to appreciation.
TLDR: Buyers, if you are looking to purchase some time in the next 6 months, now is the the best time. You will capitalize on all of the appreciation that we will see over the first half of the year and walk into instant equity. Sellers, I would wait until March or April to list in order to get the most return on your investment. That is situational though, so call me if you are considering selling and I can give you my thoughts on your specific circumstance.
