Over the past several years, the fierceness of the housing market has given buyers a sense of “fight-or-flight” when trying to buy a home. There was little inventory, massive demand, and historically low interest rates. From 2020 through the summer of 2022, it was commonplace in our Gallatin Valley housing market to see multiple offers, over asking price, on any given listing. As the market started to cool due to rising interest rates and inflation near the end of last year, we’re seeing less of a seller’s wonderland and more equal opportunity again for buyers. 

So far this year, 2023 is shaping up to be more of a buyer’s market than we’ve seen for the past several years. The main reasons for this projection are:

• -After the aggressive doubling of interest rates during 2022, the 30-year mortgage has fallen from its 7% high by over 1% making the 30-year fixed loan more approachable for buyers. 

• -In the Gallatin Valley, inventory and days that listings stay on market (days on market) have substantially increased since last year. As seen below, there’s been a significant increase for both inventory and days on market since mid-2022.  With more homes coming onto and staying on market, buyers have more choices and greater opportunities. 

• -As mentioned above, buying a house is starting to revert back to a more “normal” process. Buyers are able to tour homes, think about a home, not compete with multiple offers, and not have to offer at or above asking price. What’s more, there are seller concessions/buyer inventives galore making initial affordability more attainable. 

As we get closer to spring, expect to see a surge in housing inventory. If you are curious and want to be ahead of the game in buying or selling, give me a call! I’m always here to talk about housing.

Respectfully,

-Dianne