Market Update - November 2024
Market Action Index - November 2024
What a week it’s been! Plenty of questions, and many still need answers. Here’s what we know: the Fed just cut rates by 25 basis points, yet mortgage rates went up. Markets rallied around President Trump’s re-election, which has temporarily impacted mortgage rates negatively. I expect we’ll see rates slowly decline as we move through 2025.
We’re closer to a buyer’s market than we’ve been in over four years, with homes now sitting on the market for over a month—even those in good condition. Affordability remains a challenge, though there’s good news: more inventory means more options, even as prices climb at a steadier pace. Realistic relief will likely require further inflation decreases and weaker jobs reports.
Considering buying during the holiday season? It might be a smart move with options available! Reach out with any questions.
Market Segments - November 2024
“Homes located within a mile of a Starbucks coffee shop tend to appreciate at a faster rate than homes that are farther away. This phenomenon, known as the ‘Starbucks Effect’, highlights the importance of local amenities in driving demand and property values in certain neighborhoods.”
Market Profile - November 2024
HOT TOPICS
Would you like a home valuation and neighborhood report every month? Those receiving these have really enjoyed them! 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, and know exactly what’s being bought and sold in your area Send me an email brendan.gail@kw.com to be added!
Fed Cuts Rates: The Fed cut interest rates by 0.25% in November as expected. Even with a strong labor market and inflation close to target, more cuts are likely—one as soon as December. Since the announcement, mortgage rates have dipped slightly, helped by market calm post-election.
3. Housing Sentiment Up: Fannie Mae's housing sentiment hit a high since early 2022, with more people feeling it’s a good time to buy. Optimism is fueled by a stronger job market and hope that rates will ease next year, though recent rate increases are still a challenge.
4. Better Housing Affordability: Affordability in California improved in Q3 with lower home prices and easing interest rates, though recent rate hikes may keep affordability tight in the near term.
5. NAR’s Growth Forecast: The National Association of REALTORS® predicts strong home sales growth in 2025 and 2026 as rates stabilize. With anticipated rate cuts and solid job growth, existing home sales could see big gains, while new home sales might rise by 11% in 2025.
6. Construction Spending Up: Construction spending rose again in September, with single-family homes leading the growth. Multifamily projects dipped slightly but may rebound soon with increasing demand.se, potentially boosting mortgage activity in the upcoming week.
Things are STABLIZING AND GETTING READY TO ROLL IN 2025. If moving is in your future. 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!