Experts predict no major rise in housing market supply until mortgage rates hit below 5%. This is expected to happen after 2024.
Making right decisions in the housing market easily
3 figures of the U.S housing market you need to know
The housing market favors sellers, with high prices and extremely low levels of inventory persisting into the near future.
Insights of the housing market
Home Prices Continue Upward Trend for Eighth Straight Month
According to NAR (*), the housing market saw the median sale price for existing homes reach $384,500 in February. This represents a 5.7 percent increase from last year, marking eight consecutive months of year-over-year gains. Simultaneously, the national housing market saw a 9.5 percent increase in home sales from the previous month. This surge brought the annual sales rate of 4.38 million homes.
(*) The NAR: The National Association of REALTORS®
Housing Market Inventory Continues to Stay Low
Despite the rise in sales and prices, the housing market inventory totaled 1.07 million units. This shows a modest 5.9 percent increase from January and a 10.3 percent rise from the previous year. However, with just a 2.9-month supply, it falls short of the 5-6 months needed for a balanced housing market.
2024 Housing Market Outlook: Trends and Predictions
Low supply in the housing market mainly stems from owners “locked in” at very low interest rates. Experts predict no major rise in housing market supply until mortgage rates hit below 5%. This is expected to happen after 2024.
Explore Exciting Spotlights Of The Housing Market In California
The current housing market is more favorable for sellers, where the demand exceeds the available supply. This can lead to quicker sales and higher prices.
Rising housing market in California
California’s Housing Market Surge in February 2024
In February 2024, California experienced an 11.2% increase in home prices compared to the previous year. By which, the average sale price reached $783,500. Despite this, the annual number of homes sold increased by 8.9%, totaling 18,594 units. This is in comparison to 17,077 sales in the same month the previous year. Additionally, homes spent a median of 35 days on the market, which is 14 days fewer than last year.
Is the Current Supply Sufficient to Satisfy Buyer Demand?
There were 69,867 homes listed for sale in California, a slight decrease of 0.58% from the previous year. New listings amounted to 25,794, marking a 17.0% increase from last year. The average supply duration for homes in California was 2 months. The figure is even shorter than the national average of a 2.9-month supply. This sign indicates that California’s housing supply is struggling to meet the demand.
Top 10 Metros with the Fastest Growing Sales Price in California
Source: www.redfin.com
Predictions for the housing market of California
According to the C.A.R, the housing supply is expected to increase by 10% to 20%. This forecast is based on predictions that market conditions and the lending environment will continue to improve. Despite this increase, the housing supply in 2024 will still remain below normal levels. Due to the high demand-low supply situation in the housing market, analysts forecast a continued increase in home prices. By which, the median home price is projected to reach $860,300 this year.
Revealing Helpful Tip in Housing Market for Sellers Here
The increase in housing supply somewhat pressures sellers with competition. We are here with useful strategies to optimize your transactions.
Certified Secrets in Housing Market for Sellers
Standing Out in a Crowded Market
Your marketing efforts should target the specific audience likely to purchase your home. Staging forms a critical component of this strategy. Rather than generic staging, determine your target buyer and tailor the staging to resonate with them.
For instance, a suburban home might appeal more to young families if bedrooms are staged as children’s rooms. Similarly, a room staged as a den might appeal more to buyers in a retirement community. Tailored staging makes it easier for potential buyers to envision themselves living in the space. This reduces their concerns and boosts the chances of securing a higher sale price.
Facing Uncertainties in Your Sale?
Never too early to elevate your property to the next level. Contact us today to discover how we can help you optimize the value and enhance the selling potential of your home in the current market. Our team of experts is ready to share their extensive knowledge and hands-on experience to guide you every step of the way.
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