2023 was a tough year for many aspiring home buyers. The median sales price for homes in Chester County increased 13.5% from December 2022 to December 2023 and closed sales were down about 12% from the year before. Inventory remained low throughout 2023, even when mortgage rates surged—hitting a high of 7.79% in October. Mortgage rates have ticked down since October and continue to do so. Unfortunately, significant mortgage rate drops won’t occur until the Fed implements cuts to the federal funds rate. Demand continues to outpace housing supply—and likely will for a while. Lower mortgage rates and low inventory will generally bolster prices as we head into the spring market.
