2023 was a year of significant change in the real estate market, driven largely by fluctuating interest rates. From record lows to sudden hikes, the financial landscape presented both challenges and opportunities for buyers, sellers, and investors alike. Let's
take a look at how interest rates impacted real estate sales throughout the year:
Early 2023: A Market Fueled by Low Rates
The year began with mortgage rates hovering near record lows, fueling a booming housing market. Homes were flying off the shelves, often with multiple offers and bidding wars driving prices to record highs. This surge in activity was fueled by first-time homebuyers
taking advantage of affordable financing and investors seeking to capitalize on a seemingly unstoppable market.
The Mid-Year Shift: Rates Rise, Market Cools
However, the tide began to turn in the midsummer months. As the Federal Reserve took action to combat inflation, interest rates started to climb significantly. This increase in borrowing costs quickly impacted affordability, leading to a cooling of the market.
The number of homes for sale began to rise, and the days-on-market increased as buyers became more cautious.
The Second Half: A New Market Reality
By the end of 2023, the real estate market had settled into a new reality. While still active, the market was no longer the feeding frenzy it had been earlier in the year. Buyers had more negotiating power, and sellers had to be more realistic about pricing
their homes. The focus shifted from rapid appreciation to long-term stability.
Looking Ahead to 2024
Predicting the future is always challenging, but most experts agree that interest rates are likely to remain relatively stable in 2024. This should provide some stability to the real estate market, allowing it to continue its gradual recovery. While prices
may not rise at the same pace as they did in 2022, the market is expected to remain healthy and balanced.
How to Navigate the Market in 2024
Whether you're looking to buy, sell, or invest in real estate in 2024, here are some tips to keep in mind:
By staying informed and making informed decisions, you can navigate the ever-changing real estate market and achieve your goals in 2024.
Higher interest rates make it more expensive to borrow money, which can lead to a decline in home sales. This means that appraisers may see a decrease in the number of assignments they receive.
However, there are still opportunities for appraisers in 2023. Here are a few things appraisers can do to adapt to the changing market:
In addition to the above, here are some other trends that appraisers need to be aware of in 2023:
Overall, the appraiser profession is facing a number of challenges in 2023. However, by diversifying their practice, focusing on niche markets, embracing technology, and staying up-to-date on the latest trends and regulations, appraisers can continue to be
successful in the changing market.
Here are some additional tips for appraisers who are looking to adapt to the changing market in 2023:
By following these tips, appraisers can position themselves for success in the changing market in 2023 and beyond. By Google Bard with some editing by Wayne L. Henry.
Going through a divorce is one of the most difficult and emotional experiences a person can go through. It can also be a very expensive process, especially when it comes to dividing up assets, such as real estate.
If you and your spouse are going through a divorce and you own any real estate together, it is important to get a divorce appraisal. A divorce appraisal is an unbiased and professional opinion of the value of your property. This information can be invaluable
to you and your attorney during the divorce process.
There are many reasons why you should get a divorce appraisal. First, a divorce appraisal can help you and your spouse reach a fair agreement on the value of your property. This can save you time and money in the long run, as you will avoid having to go to
court to have the value of your property determined.
Second, a divorce appraisal can provide you with documentation of the value of your property. This documentation can be very helpful if you need to sell your property or if you need to obtain a loan.
Third, a divorce appraisal can help you avoid disputes with your spouse over the value of your property. If you and your spouse disagree on the value of your property, a divorce appraisal can provide an impartial third-party opinion that can help you resolve
If you are going through a divorce and you own any real estate together, it is important to get a divorce appraisal. A divorce appraisal can provide you with the information you need to make informed decisions about your property and to protect your interests
during the divorce process.
Here are some additional benefits of getting a divorce appraisal:
If you are considering getting a divorce appraisal, be sure to contact a qualified real estate appraiser. An appraiser can help you understand the process and can provide you with the information you need to make the best decision for your situation.
VaCAP has been informed of a Discussion Draft of a Bill introduced into the US House of Representatives that will directly impact every appraiser,
appraiser trainee, appraisal firm, and appraisal management company..
From the discussion draft, the purpose of the Bill:
establish an independent agency to be known as the Federal Valuation Agency and real estate valuation standards and appraiser criteria, including promoting a fair, unbiased, transparent, repeatable valuation process, and for other purposes.”
VaCAP encourages everyone to read, analyze and think through how this will impact you and your business. It does not matter if you agree or disagree
with the content of the Bill, it is important to discuss the the content with all of your US Representatives. Our Representatives will be the ones who ultimately vote on this Bill and they need to understand what they are agreeing to. More importantly, how
will this impact the public.
Ideally, having a face to face conversation is preferred, but realizing that is not an easy task for most, email is convenient and provides documentation
of your opinions and observations. However, there is no guarantee your representative will actually see the email. Most have staff that filter and respond to email.
Go old school and send a letter. This is more likely to actually been seen and read by your Representative.
We realize some appraisers are still very busy and some have started to slow a bit. If you are able to have a face to face conversation with your
Representatives, please follow up highlighting your conversation either by email or letter.
The reality is the more our Representatives hear about the Bill, the more they pay attention. What we don’t want to happen is this bill, or any
bill for that matter, to be voted on by our Representatives that have no idea what they are voting on.
Find you Representatives here. https://www.congress.gov/members/find-your-member
You have a voice, please use it!