As we continue to follow the real estate market and economy very closely, this past week provided a little more clarity on both. Here are a few observations worth sharing: 

• March Madness continues for Buyers with low inventory and unprecedented competition. 
• Relief is being felt throughout the market as the Federal Reserve indicated there are likely no interest rate hikes in the near future and possibly through 2023.  
• The $1.9 trillion dollars being injected into the economy will surely ramp up economic growth but because this money will trickle in over many months, the impact will be at a slower pace.  
• Commodity prices are at an all-time high.  
• The cost of building materials (including oil and lumber) have skyrocketed over the past year which is impacting the cost to build homes. 
• The combination of cheap money, stimulus money and the adaptation to the COVID live/play/work from home lifestyle has contractors/developers, architects and trade workers spread thin with projects. 
• Building supply chains are also struggling to keep up with the demands of the marketplace and were not prepared for this level of activity.  

While we don’t have a crystal ball, it appears Buyer activity will remain high given interest rates, building costs and desired lifestyle changes. Sellers would love to take advantage of this Seller’s market but they don’t know where to go and are nervous they too will become Buyers. Homeowners who are considering a remodel are learning just how expensive and time consuming a remodel is today. The question is, will people sell and buy or will they opt to stay and remodel or just appreciate what they have? For now, low inventory, building costs and tough competition will continue to drive prices up. 

Please reach out anytime. We are all here to help answer your questions and guide you. 

Dana