Although inventory shortages continue to restrict sales, both new and carryover buyers (who have been looking since last year) are waiting to pounce on the brightest and best of this year’s class new listings. And they all want to lock in with their deals before interest rates rise further than they have.
Expect to see a similar pattern of sales and sharp price increases with lots of bidding wars in the first half of this year. The market will settle in the second half as this year’s best listings sell off and the remaining inventory quality fades.
Higher interest rates reduce affordability which hurts buyers and sellers equally. Any buyers and sellers who are thinking about moving in the near future, should do what they can to do so sooner rather than later.