Market Update - March 2024
Market Action Index - March 2024
Total home sales and inventory remain incredibly low. I hate to sound like a broken record, but just when you think we can’t go any lower, here we are which means… prices are rising.
Most people in the industry are in a staredown with the FED. The policy has been restrictive and almost everyone would like to see just a neutral stance in order to alleviate some of the pressure on the market. It’s much of the same story. Most potential sellers are rate locked into their current homes and even if they wanted to sell, they can’t. The Federal Reserve really does hold the key to unlocking everything. I for one, understand and agree inflation was/is an issue. The cost of EVERYTHING has exploded over the last 3 years. However, I would also say that the restrictive policy is bringing a ton of frustration to anyone who’s considered a move in the last couple years.
When you consider the recent news about commissions, Realtors have become the lightning rod for all of the angst and frustration. Trust me when I say, Realtors, are even more frustrated. I can only speak for myself, but owning a home is part of the American dream. I want that for as many people as possible. We also have a fiduciary duty to get our sellers the biggest return on their investment. After all, they took the risk in buying the home and it’s them solely who have maintained it and paid the mortgage every month. There’s still opportunity in the market. Homes are being listed and sold as I write this. Are the windows tighter? Yes they are, but they’re out there. If you’re a buyer, hang in there. If you’re a seller, you’re in a great spot. Questions? Just reach out!
Market Segments - March 2024
“Evidence of this heightened competitiveness is clear: homes are selling faster than ever before, with the median time on market plummeting from 42 days in 2023 to just 20 days last week. ”
Market Profile - March 2024
HOT TOPICS
Would you like a free home report every month? Those receiving these have really enjoyed them, over 85% open rate! If you’d like a free home report every month, all I need is your address and an email for you. It’s a great way to track home values, loan information, payoff ideas, and what you might be able to rent your home for. Send me an email brendan@vshometeam.com to be added!
Fed makes no moves… yet - The Fed decided to keep rates steady in their latest meeting, as expected. They still plan to cut rates three times by the end of 2024. Recent economic reports showed stable inflation and a solid overall economy. The focus was on future rate cut projections, aligning with their previous expectation of three cuts in 2024. The news was more upbeat than anticipated, leading to an improvement in the bond market and slightly lower mortgage rates after the announcement.
CA job loss now worse than prior to Covid - In February, California's jobless rate climbed above its pre-pandemic average, according to the latest report from the Bureau of Labor Statistics. While most states saw steady employment growth, California experienced a decline of 3,400 jobs, ending a six-month streak of gains. The state's unemployment rate rose to 5.3%, up from 5.2% in January. Construction and trade/transportation sectors saw the biggest job losses, possibly due to weather conditions.
Mortgage applications dipped - The Mortgage Bankers Association's Market Composite Index fell 1.6% from the previous week ending March 15, 2024. Both purchase and refinance activity decreased due to rising mortgage rates driven by hotter-than-expected inflation. Uncertainty about the Fed's rate cuts led to rate volatility, contributing to the decline in mortgage applications. However, following the latest FOMC announcement, rates may ease, potentially boosting mortgage activity in the upcoming week.
Things are heating up, if buying or selling has crossed your mind. Let’s chat.
Reach out anytime! Call, text, or message me 😊
Brendan
P.S. I always appreciate referrals! It’s among the greatest compliments I can receive. If you know someone who is has questions about the real estate market, please send them my way. Thank you!