McKae Properties Real Estate Market Commentary

 We started out 2023 with sufficient amount of homes listed For Sale in inventory without the corresponding buyers to make many areas on the verge of becoming a buyers market.  As interest moved higher by FED decisions, many anticipatory  buyers began to look at the forecast of even higher mortgage rates.  That stimulated buyers back into the market to reverse the trend toward a Buyer's Market.  Inventory declined due to the belief of many potential sellers that they would be creating large capital gains, losing low a property tax base and the potential of even higher rates on a new mortgage.  They decided  Stay Put.   The lack of new supply created a negative balance of inventory to supply the resurgence of buyers.  Real estate agents revived an old strategy to create multiple offers and over bids.  Homes were priced drastically under market values.  The strategy worked.  Inventory began to diminish as new buyers gathered momentum to create what began to appear as a new wave in hi

1971 the Dow Average had hit 1000 for the second time, brokers were celebrating.  Within 4 years the Dow was down about 60%.  Interest rates during the years prior to the 70's were dropped to create employment, and cheap money was dominant.  THEN, Oil prices went from $10 a bbl to over $100 a bbl in 10 years.  Inflation went to 25%.  The administrations of both Republican and Democrat could not solve the problems.  WIN, "Whip Inflation Now" was a new phrase by Washington for an illness they created. Interest rates rose dramatically!  a 6%+ mortgage went to 15%.  Buyers still went on with home purchases.  Where else do they put their money when Trust was damaged? (See next paragraph) The 70's started with the greatest investment for the average individual with a Mortgage Real Estate Investment Trust, REIT, that borrowed short term and lent long term.  They all failed.  Every investment in the same related strategy fell like dominoes.  Following that came the Savings an