W I N T E R I N T A H O E
A Note From Team Tahoe’s Kirstin and Pilar
While Truckee and Tahoe residents dig out themselves after the historic storm this week, the market is slowly brightening up.
While the annual rate of increase in Core CPI has fallen from a peak of 6.6% in September, it remains far above the readings of around 2.0% seen early in 2021, the stated target level of the Fed.
The Fed plans to raise the federal funds rate to help reduce inflationary pressures and reach this goal.
On a brighter note, builders are more optimistic about future conditions. The NAHB housing index showed that home builder confidence unexpectedly jumped from 35 to 42, the highest reading since September.
Consumer spending accounts for over two-thirds of US economic activity. Following two months of moderate declines, retail sales in January surged a massive 3.0% from December, far more than the consensus forecast.
Sellers. Keep in mind this is still a much better time to be a seller than in 2019 (which seemed like a very healthy market then). You can expect a similar amount of time on the market but much higher sales prices.
Buyers. Keep in mind this is the most balanced market we have seen in the last three years. You now have the following things working in your favor:
The ability to negotiate price is back.
The ability to inspect a property and have expected contingencies is back.
The ability to negotiate repairs is back.
Yes, interest rates are climbing, but if they continue, you will be glad you are locked in now. If/when they reverse course, you can refinance to take advantage.
Investors will closely watch if Fed officials elaborate on their plans for future rate hikes. The core PCE price index, the inflation indicator favored by the Fed, will come out on Friday.
Call or email us today to find out more. In today’s complex market, expert analysis is critical.