What's Ahead in 2024 Real Estate

 

Last Wednesday, the Fed reiterated no rates cut...yet! I would think some time before our 2024 Presidential Election the first rate cut will happen. What a coincidence! Regardless of timing, the Fed announced a change of path, going from 3 rate cuts to only 1 cut this year. It's reasonable to conclude we won't be seeing interest rates around 5% anytime soon. So if you've been waiting for that, I wouldn't hold my breath! So hard to time the market.

Despite what you might hear and see on the media streams, the truth is Bay Area sellers aren't motivated to sell their homes. Inventory continues to stay low while real estate demand hasn't subdued. Sellers are now looking for more than just capital gains benefits in order to consider giving up their 30-year fixed 4% or lower interest rates! With that being said, I do believe this sticky situation is here to stay for some time beyond this year.  I'm currently in this situation myself, we'd love to upgrade and buy a bigger house for our growing family but it's just not doable for us in the short term. 

Set realistic expectations. It's normal to feel bummed out about high costs and low inventory. That’s especially true for first-time buyers who have been putting off their search, only to see the market remaining rough. The solution is to think long-term. Holding out for lower rates likely means you’ll face steeper prices and more competition. So if you’re determined to buy, find a place that suits your needs and budget as-is. Expecting perfection often means setting yourself up for disappointment.

You don't have to go through the lengthy research yourself. We can curate a buying plan with an effective outcome for you. Let us help!

 

If you're a seller, congrats!  You're still in a great place if you want or need to sell your home.  Lucky you.