What Industry Leaders Predict for the Real Estate Market in the Next Year

By Shamus Greene

Shamus Greene is a Realtor and the team owner of the Shamus Greene Realty Group with United Real Estate Louisville. Shamus has a strong background in the mortgage industry. He began his real estate career in 2005 as an independent agent and developed the Shamus Greene Realty Group in 2014.

What is going on in the real estate market right now? Factors like interest rates, demand, and inflation play crucial roles in shaping the industry’s trajectory and shaping your financial decisions. Let’s delve into the current state of our local real estate market and share some insightful predictions for the upcoming year.

Presently, interest rates are hovering around 7% to 8%, contributing to a decreased demand as potential buyers hesitate to make moves in the uncertain market. However, I attended two real estate conferences in Scottsdale, Arizona, this week, and had the opportunity to connect with industry leaders and gain valuable insights.

Anticipating the Federal Reserve’s December meeting, expectations suggest that rates are unlikely to rise or fall. The prevailing sentiment is that the rates will remain steady for the next three to six months, creating a challenging environment for real estate professionals, particularly agents.

Despite the anticipated tough times ahead, predictions indicate a potential shift in the market after six months. With inflation showing signs of easing, the consensus is that the Federal Reserve may begin to lower interest rates again. This downward trend is expected to last for approximately 18 months, potentially stabilizing at around 4.5% to 5.5%.

For those considering real estate investments, be proactive. While waiting for rates to reach the bottom may seem tempting, historical trends reveal that bidding wars ensued when rates were at their lowest. To circumvent this frenzy, make a purchase now and capitalize on refinancing opportunities as rates drop. If you have questions, feel free to reach out for personalized assistance.