Reflecting the seasonally slow market in December, the data for January show the lowest monthly number of closed sales (sales typically close 3-6 weeks after going into contract). In mid-January, the market starts to become more active, building up to to the usually busy spring market.
After the price declines and drop in market activity in the second half of 2022, it is still too early to conclude if we will see a sustained recovery this year. The US inflation rate slowed for seven months straight, falling from 9.1% last June to 6.4% in January, according to the Consumer Price Index report released on February 14. However, this decrease is not as much as investors had hoped to see. The Fed will continue hiking rates, but it is possible they will not be as severe.
Some signs are pointing to a rebound in market demand, but how long it will be sustained or further improve is yet to be seen. On the ground, my colleagues and I are seeing much more activity from buyers, more disclosure requests and offers on listings, and open houses are drawing greater attendance—all positive indicators of a stronger spring market.