Category: Market Reports

The inventory of homes actively for sale increased in 45 out of 50 of the largest metros compared with last year, and in four large metros, inventory was above pre-pandemic levels. With the anticipation of lower mortgage rates by the end of the year, home buyers could have more options and a bit more affordability.   Insights “Current expectations are that the Fed will start to cut rates at some point between June and September. The exact timing depends on how incoming economic data looks. The Fed’s March meeting did not set up the prospect of a near-term interest rate cut, but a summer cut appears likely. Forbes “Consumer attitudes toward home-selling conditions increased markedly in February, with current homeowners, in particular, expressing greater optimism that it’s a ‘good time to sell,’ a development that may foreshadow an upcoming increase in existing home listings. Doug Duncan, Senior VP and Chief Economist, Fannie Mae   Forecasts Housing prices in the US were surprisingly resilient last year in the face of a jump in mortgage rates. Now, with the prospect of interest rate cuts on the horizon, home prices are expected to climb more than previously anticipated, according to Goldman Sachs Research.

The real estate market continues to exceed expectations. There are more than 1M fewer foreclosures in the last five years, home prices rose in 96 of the top 100 largest metropolitan areas over the last four quarters, and Americans are sitting on tremendous equity. Insights “Policymakers now risk committing another policy error, this time by waiting too long to begin cutting interest rates. It is unclear why Fed officials feel it necessary to take this risk. After all, they’ve all but achieved their dual mandates of a full-employment economy and low and stable inflation. Mark Zandi, Chief Economist, Moody’s Analytics “Looking back at the year, 2023 appears to have exceeded average annual home price gains over the past 35 years . . . While we are not experiencing the double-digit gains seen in the previous two years, above trend growth should be well received considering the rising costs of financing home mortgages. Brian D. Luke, Head of Commodities, S&P Dow Jones Indices   Forecasts Goldman Sachs, Mortgage Bankers Association, Zillow, Fannie Mae, Freddie Mac and NAR all agree that home prices will increase in 2024. Looking back at the forecasts made in November 2023, we can see that the major

There is a narrative we must combat in the real estate market. The latest Fannie Mae report showed 24% of consumers believe their prices are going to depreciate over the last 12 months. We actually had a very strong 2023 and we’re going to finish this year between five and six percent appreciation.   Insights We anticipate that after the past several years of extreme volatility in interest rates, the 30-year fixed rate mortgage rate will continue to moderate over the course of 2024, moving toward a rate below 6 percent by year end. Doug Duncan, Senior VP and Chief Economist, Fannie Mae Geographic patterns in price gains continued to favor housing markets in the Northeast and the South, especially those that remain more affordable and have lagged in home price increases over the past couple of years. Dr. Selma Hepp, Chief Economist for CoreLogic   Forecasts What’s taking place with future home appreciation? The latest reporting of the major forecasters, shows that on average, when we average all eight together, the expectation is a 2.7% home price appreciation. Since November, many of the forecasts appear more optimistic and have increased their projection by upwards of 3%.     Rates

The real estate market remains strong, bolstered by the recent drop of mortgage rates. Home prices are expected to continue their upward trajectory in 2024, with most markets reaching new price highs. Insights It appears that mortgage rates are now falling again. They will almost certainly not fall to pandemic lows, although we may soon see rates under 6.0 percent, which would be low by pre-Great Recession standards. Dean Baker, Senior Economist, Center for Economic Research We now forecast three consecutive 25bp cuts in March, May, and June to reset the policy rate from a level that Powell has recently taken to describing as “well into restrictive territory” rather than just “restrictive”. Goldman Sachs, December FOMC Recap Forecasts The real estate market is projected to experience strong demand in early 2024, driven by dropping mortgage rates. This trend is expected to put pressure on home prices, with most markets reaching new price highs throughout the year. Forecasts from various sources, including CoreLogic, Case-Shiller Index, and Realtor.com, indicate an increase in home prices and a recovery of losses recorded in the previous year.     Rates With rates dropping, the demand for homes is expected to be strong in 2024. The

Topics: Introduction: Current State of the Real Estate Market 2024 Home Price and Sales Forecasts Mortgage Rates and Buyer Demand Home Affordability and Market Dynamics Opportunities for Home Buyers in the Current Market Conclusion: Invitation for Personal Consultation VIEW THE REPORT Introduction: Current State of the Real Estate Market As we approach the end of 2023, the real estate market continues to present both challenges and opportunities. From the unique perspective of a loan originator, it’s clear that the landscape has undergone significant changes over the past year, shaped by various economic factors. The market has witnessed fluctuations in home prices, shifts in buyer and seller behaviors, and adjustments in mortgage rates, all contributing to a dynamic environment. Despite these changes, the real estate market remains a crucial aspect of the economy, and understanding its current state is essential for potential home buyers. As a loan originator, my role is not just to provide financing options but also to offer insights into how these market dynamics can affect your home-buying journey. Whether you’re a first-time buyer or looking to invest in property, being aware of the current market trends is vital in making informed decisions. In this update, we’ll delve

Topics: Introduction: Navigating the Current Market Home Price Trends: Stability Amidst Uncertainty Mortgage Rate Movements and Affordability The Rise of Multi-Generational Living Inventory and New Listings: A Glimmer of Hope The Future of Homeownership: Millennials and Gen Z Conclusion: Your Path to Homeownership   VIEW THE REPORT Introduction: Navigating the Current Market In the November 2023 real estate market, there’s a palpable sense of uncertainty and a need for clarity. Sean Dobson, CEO of Amherst, encapsulates this sentiment, noting the inherent unpredictability in current forecasts. This uncertainty is compounded by a significant inventory shortage, over 40% lower than pre-pandemic levels, which fundamentally impacts market dynamics. Despite these challenges, the market is not poised for a crash, as the basic principles of supply and demand continue to hold. Prices remain robust, and there’s a cautious watch for potential reacceleration in home prices. The Case-Shiller report and the FHFA price index both indicate strength in the housing market, with most regions showing positive price changes. This scenario underscores the importance of understanding and navigating the current market trends amidst fluctuating conditions and widespread myths. Home Price Trends: Stability Amidst Uncertainty Recent Trends in Home Prices The latest data reveals a surprising trend: