We are proud to present you with this synopsis of the national, regional, and localized trends that matter most, found here in our Shenandoah Valley 2023 Annual Report.
In 2023, the real estate market in the Shenandoah Valley was influenced by broader economic conditions, particularly the upward trajectory of mortgage rates as the Federal Reserve sought to manage inflation. The increasing mortgage rates introduced challenges for prospective buyers and sellers alike, creating a more competitive and restrictive environment. Unfortunately, this led to the exclusion of some individuals from the housing market due to affordability concerns. Despite these obstacles, there was a steady and consistent demand for housing in the Shenandoah Valley. The persistently low inventory levels contributed to the competitive landscape, and the increased days on the market suggested a gradual return to a sense of normalcy as the market adjusted to the changing economic dynamics and sought a more balanced equilibrium.
MARKET OUTLOOK – NATIONAL LEVEL
Every year starts naturally with a focus on the near future, and 2024 brings with it a mixed bag of economic signals that may at times contradict one another and provide a somewhat murky view of our year ahead. At Nest we are committed to providing our clients with the best and most relevant information to help you make some of the most important financial decisions of your life. On a national level, we focus on three key economic indicators—interest rates, consumer confidence, and employment—to help us look forward to what we should expect. The fundamentals of our nation’s economy are solidly on the right path: inflation rates have stabilized, interest rates have retreated, low unemployment has continued as a bright spot, and real wages finally seem to be making headway in a positive direction. But while the data may look cheery, our nation faces some of the lowest consumer confidence in more than a decade, driven, we believe, from political frustrations at home and geo-political instability abroad. With real estate in mind, a quick conversation with your Nest advisor will help you understand some of the problems created by historically low inventory.