Wishing Everyone a Happy + Healthy 2024

Dear Friends and Family...
 

REFLECTIONS

As we prepare to ring in the New Year, now is the time to reflect on lessons learned and positive growth ahead. New beginnings, both personal and professional, are essential for growth as well as embracing all the goodness in your life. Having just celebrated my 16th anniversary as a Realtor, I'd like to extend a heartfelt thank you for your continued trust and support. It's been a privilege to be a part of your journey, and I look forward to the many successes ahead!
 

LOOKING AHEAD

Approaching 2024, signs point to growth and opportunities in California's housing market. According to C.A.R. President Jennifer Branchini, 2024 will be a better year for both buyers and sellers as mortgage interest rates are expected to decline next year. A more favorable market environment with lower borrowing costs, coupled with an increase in available homes for sale, will motivate buyers and sellers to reenter the market next year. First-time buyers who were squeezed out by the highly competitive market in the last couple of years will try to attain their American dream next year. Repeat buyers who have overcome the “lock-in effect” will also return to the market as mortgage rates begin to trend down. 

C.A.R.'s "2024 California Housing Market Forecast" baseline scenarios:

• An increase in existing single-family home sales of 22.9 percent.
• The average 30-year, fixed mortgage interest rate will decline from 6.7 percent in 2023 and could reach mid-5% by end of next year.
• The median home price is forecast to rise 6.2 percent to $860,300 in 2024, as persistent housing shortages continue to put upward pressure on home prices.
• A projected increase in active listings of between 10 percent to 20 percent, however 2024's housing supply will remain below the norm.
• Inflation will continue its gradual decline over the next 18 months, with the CPI registering 2.6% in 2024, down from 3.9% in 2023
• With the economy expected to soften in 2024, the Federal Reserve Bank will begin loosening its monetary policy. Buyers will have more financial flexibility to purchase homes at higher prices, generating an increased demand for housing, and therefore continuing the upward pressure on home prices.

As always, I will continue to keep you updated on the happenings of the market. If you're interested in a detailed evaluation of your real estate holdings, please call me to discuss strategy.