New listings of properties continued to drop in November, suggesting homeowners are adjusting to sharply higher interest rates and have not been forced to sell their homes.  The fact that the supply of homes for sale has remained low, has supported average selling prices in the $1.08 to $1.09 million range since August.

The rise in borrowing costs is a short-term shock to the real estate market. The rate shock will likely wear off later in 2023 as we start to see the impact of record population growth start to have a greater effect. To a certain degree we are already seeing this in the rental market with extremely tight market conditions and double-digit rent growth.