Pent up demand and lower interest rates will be the driving forces for the real estate market this Spring.For example, in November of 2023 the 30-year mortgage rate was 7.76%. Historically not a high number, but a whole lot higher than the 3.09% of November 2021. And today, at the writing of this newsletter for March 2024 (2-26-2024), the 30-year mortgage rate is 6.62 %. A little more than a 1% decrease in interest rates.
Plus, In November of 2023, we had a housing inventory of about 626 and today, we have 563. That’s a 10% decrease in the number of homes for sale. And we all know how the supply and demand cycle works. When there is a higher demand for a product (ie. homes for sale) the price of the product is likely to go up.
Will there be a Rate Cut?
Well…. This is the question that everyone wants to know the answer to. I’ve heard some economists say that there may be as many as five rate cuts this year with the first one coming in June of 2024. I’m not an economist though I think that we’re not going to get that many. In fact, I wouldn’t be surprised if we don’t get the first rate cut until just prior to the presidential election in November this year. The economy is strong, unemployment is low, consumer spending isn’t slowing and incomes are rising. With this in mind (and a Federal Reserve Board that is very data driven) I see interest rates holding steady for a while.
Fun Facts:
Daylight savings time begins March 10th. March 17th is St Patrick’s Day. The first day of Spring (and equinox) is March 19th. The next full moon is March 25th. Easter is March 31st.
If you have any questions regarding this or any other real estate related matter, feel free to call, text, message, or email me 661-406-1562. If you want a quick valuation on your home, go to thishomesvalue.com and one will be sent to you right away.
Have a GREAT DAY!
