A Quick Update on Our Economy and Housing Market

What you need to know about the state of our economy and housing market.

Today, let's quickly touch base on our current economic climate and address some common questions we receive weekly about the market. 

First, the latest GDP numbers were released this morning, which showed a robust 3.3% annualized increase for Q4 of the previous year. The Federal Reserve closely monitors these metrics, and since they meet on January 30, there's anticipation that they’ll see these positive numbers and reduce interest rates. 

"The housing market could pick back up this year."

While it's uncertain if we'll see a rate drop in this meeting, the positive economic performance might lead to future rate adjustments. It's important to note that GDP numbers are retrospective, reflecting the strong fourth quarter of the previous year, suggesting the possibility of a soft landing instead of a recession. We'll be closely watching the Fed, and the expectation is that rates may start gradually decreasing over the next three to six months. 

Despite initial market concerns, our region, Chester County, experienced an average appreciation rate of approximately 6.5% last year. This indicates a resilient market, making it an opportune time for both sellers and buyers. Sellers should take advantage of the current conditions, and buyers can benefit by entering the market before the spring influx. We've observed heightened activity among our buyers this year, closely monitoring inventory and market progression.

Whether you're looking to sell or buy, now is an excellent time to act. Feel free to call or email us; we are local experts ready to guide you through any real estate transaction you may need assistance with. We look forward to hearing from you!