Optimistic look at 2024 real estate

CLAYTON, CA (Jan. 19, 2024) — The 2023 real estate market brought various shifts and nuances that left an imprint locally.

Rising interest rates, a scarcity of housing inventory, and an intriguing dance between hesitant sellers and cautious buyers characterized the landscape.

Various reports showed that local inventory was less than half of where it was a few years ago. This echoed a broader Bay Area trend where relocation and market movement seemed markedly subdued.

Mortgage rates started 2023 in the low 6% range and hit a high in the October timeframe slightly above 8%. Since then, rates have trended down and currently sit in the mid 6% range.

According to Money.com, most experts believe the housing market should be “slightly” calmer in 2024 and I agree. Factors such as lack of inventory and interest rates that are double from where they were a few years ago are still in play; however, most experts don’t anticipate the market will get any worse.

With rates trending downward and steady improvement with inflation numbers, the Federal Reserve held the federal funds rate steady and signaled possible rate cuts in 2024. Given this news, we have seen increased buyer activity in recent weeks. That’s a great change from a quieter market in the last half of 2023.

It appears many buyers are starting to feel more optimistic with the trend downward in interest rates, which in turn also has some sellers rethinking about listing their home and making a move.

Looking forward, 2024 seems poised to be an intriguing year with an anticipated ebb and flow in both local and national real estate dynamics. Many buyers have asked when more homes will start to hit the market. Based on recent meetings with sellers, I’d say the first quarter of 2024.

As we embark on this year, the local real estate community braces for an exciting journey ahead.

Jennifer Stojanovich is an owner/broker with Better Homes Real Estate. Send questions and comments to jennifer@bhrbroker.com