Happy New Year Everyone!
We anticipate a busy year ahead based on early indicators. To frame this, we are looking at a few different factors:
Interest Rates
In the last two months of 2023, interest rates fell over one point, which has helped bring more buyers to the market. With the fall of the inflation rate, the Fed is expected to lower its benchmark rate in 2024. The mortgage rate will continue to decline this year as well.
The Stock Market
There were significant positive trends in the equities market in the last quarter of 2023, with both the Nasdaq and S&P index up from the start of the year. This plays a major role in household wealth in the Bay Area, effecting buyers' capacity to purchase.
Sales Volume from 2023
As buyer activity picked up toward the end of last year, we spent a lot of time looking for inventory, and there wasn't much available. The sales volume reflects this, with total sales down between 22-24% in our area in 2023 compared to 2022.
If interest rates do continue to trend down, we know that will bring more buyers to the market, and our hope is that it also frees up some sellers to transition into their next home, increasing available inventory.
So far this year we are already experiencing busy open houses and multiple offer situations. If you're considering selling, the first half of this year is a great time to do it.
Here's to a great 2024!
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