On December 15th, the Federal Reserve voted to raise interest rates another .5%. While that is less than the .75% intervals it has been employing to combat inflation these last few months, it puts interest rates at their highest in 15 years (4.25%-4.5%). While mortgage interest rates will likely spike a bit in the coming weeks, they will settle again, but the Fed is not expected to lower rates until 2024 at the earliest.
Despite the strong possiblity of a recession in 2023, the DFW market will likely resemble the markets of 2018 and 2019, according to trusted economists. While they were hardly banner years, they were hardly bad years. Both enjoyed healthy price appreciation and listing inventory, although I have a feeling property values will appreciate modestly the next couple of years given what’s happened to the housing affordability index. It’s hovered a bit over the last 4 months, but the median income household can no longer afford the median-priced house in the metroplex. We’re still nowhere close to places like New York, Los Angeles and Miami, but a healthy housing market still provides access to the average homebuyer.
For our annual trip Kacie, my mom, my aunt and I were able to get away for a week in Big Sky, Montana. Like I’ve said sarcastically, don’t go there. It’s terrible. We’ll just retire there so you don’t have to. In all seriousness, its a magical place, but like so many other beautiful areas it’s been discovered by costal migrants who have just sold their shanties for $3m and throw cash at houses like Monopoly money.
Leave a Reply