The real estate market presented this scenario in 2023: high-interest rates and low housing inventory. Buyers faced bidding wars and inflated property prices. While declining home prices may eventually provide some relief, buyers could still navigate the market by finding a home that fits their needs and budget.

On the other hand, a market that has low interest rates but high competition attracts many buyers, resulting in fierce competition, higher prices and bidding wars. Although these low interest rates and manageable monthly payments may seem appealing, the inflated property prices often make homeownership unattainable despite seemingly favorable loan conditions.

Despite high interest rates, low housing inventory drove up housing costs and prices in 2023. Nonetheless, buyers may have been spared the frenzy of previous bidding wars. Each scenario has its fair share of plusses and minuses, and experienced industry professionals like you can help buyers navigate either market.