NO. OF ​PENDING

416

AVERAGE ​DOM

24

SALE TO

LIST PRICE

102.5

NO. OF ​SALES

360

Our team remains dedicated to serving your real estate needs while prioritizing the health and well-​being of you and your loved ones.

As your local experts, we believe in empowering you with knowledge. Whether you're considering ​buying or selling, we want you to feel confident with the latest market insights. That's why we've ​prepared this exclusive monthly analysis, breaking down key trends and valuable information specific to ​your area.

Have questions or need guidance? We're here for you! Don't hesitate to reach out – we're happy to be ​your trusted resource throughout your real estate journey.

Nidia Nuristani

Broker

BRE 01473954

THE BIG STORY

Mortgage rates are down 1.18% from the 7.79% high.

Is 2024 is the year of the 5’s.

Quick Take:

• The average 30-year mortgage rate fell 1.18% in the last two months of 2023, which is a significant ​drop from the 23-year high reached at the end of October 2023 and cut the cost of financing by 11%.
  
• Although sales are still down 16% YOY, the number of homes that went into contract went up 21% , ​ending a five-month streak of decline. Inventory levels declined month after month for most of 2023. ​But in January we began to see a small spike, still only 1.5% months of inventory which prevented ​home prices from falling meaningfully in the second half of the year.
  
• The median home price declined remained almost the same. When the Feds begin to cut rates in ​March, financial markets are predicting, 30-year mortgage rates could easily fall another point, ​bringing buyers and sellers back to market in the spring and summer.
  

A 1.18% mortgage rate drop matters … a lot

The Fed’s last meeting on Jan 30th resulted in no change in the interest rate. As of now the Fed rate is ​between 5.25% and 5.50%. The Fed forecasted it would make ¾ of a point cut by the end of 2024 to ​lower the benchmark rate to 4.6%. The FOMC will meet again March 19, 2024.

More than 70% of homebuyers finance their real estate purchases and they found rate cuts to be GREAT ​NEWS.

The market has seen a slow down in the last 18 months because people have been priced out. And ​because inventory hasn’t grown much, home prices haven’t meaningfully declined.

The National Association of Realtors’ Chief Economist Lawrence Yun recently remarked that home prices ​keep marching higher, and only a dramatic rise in supply will weaken price appreciation. Even if a ​significant number of sellers come to market, there’s enough pent-up demand that inventory won’t be ​able to grow enough for prices to stagnate or decline outside of normal seasonal trends.

Different regions and individual houses vary from the broad trends, so we’ve included a Local Lowdown ​below to provide you with in-depth coverage for your area. In general, higher-priced regions (the West ​and Northeast) have been hit harder by mortgage rate hikes than less expensive markets (the South and ​Midwest) because of the absolute dollar cost of the rate hikes and limited ability to build new homes. As ​always, we will continue to monitor the housing and economic markets to best guide you in buying or ​selling your home.

NO. OF ​PENDING

416

AVERAGE ​DOM

24

SALE TO

LIST PRICE

102.5

NO. OF ​SALES

360

NO. OF ​PENDING

16

AVERAGE ​DOM

32

SALE TO

LIST PRICE

100.7

NO. OF ​SALES

15

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