In this week’s edition of RealTrending we welcome Mike Simonsen, founder of Altos Research to offer a real-time look at the 2023 housing market. He uncovers potential trends and reveals the one thing that could turn the market around for the positive.
Here is a small preview of today’s interview with Anthony. The transcript below has been lightly edited for length and clarity:
Tracey Velt: What do you think would cause the market to turn around more quickly?
Mike Simonsen: In August and September, when mortgage rates were in the fives, we could see people buying homes. Then at the beginning of the first week of September, mortgage rates jumped from 5.5% to 6.5% to 7.5% percent. Buyer demand stopped cold. If rates fall into the fives, I think you’re gonna have a relatively healthy year in transaction volumes. If rates, on the other hand, spike over seven again, that’s gonna be a real factor. That 5.5% is really a threshold we could observe directly in September. Rates spiked and inventory spiked at the exact same time and it was really clear, right about that 5.5% percent threshold.
RealTrending features the brightest minds in real estate. Twice a month, brokerage leaders, top agents, team leaders, and industry experts share their success secrets, trends, and lessons learned navigating this ever-changing industry. Hosted by Tracey Velt and produced by Elissa Branch.