In October, interest rates peaked around 8%. As of today the 30 year fixed mortgage is hovering around 6.64%. According to Business Insider mortgage rates are falling at their fastest pace since 2008.
As a buyer this is much needed relief as affordability has been strained for some time now. CNBC reports that the Fed is projected to cut rates 3 more times in 2024. Inflation has eased and the stock market is roaring to new highs.
As buyers start to digest this news we should see more and more buyers enter the market. In 2024, I predict a wave of pent up buyers to re-enter the market. This will bring back a lot of competition in the market. I also expect a slight bump in inventory. There's also a lot of sellers that have been locked into their homes with interest rates in the 2's and 3's. Sellers will begin to digest that selling in 2024 and picking up a new mortgage in the 5's and 6's is a lot easier to digest.
So What Does This Mean For 2024?
More Buyers and more sellers.
Buyer demand will outweigh any inventory bump.
Buyer demand will be slower in the first half of the year as buyers will remain cautious. Buyer demand will increase as interest rates go lower.
Appreciation in the Los Angeles Market for 2024 as a whole will increase. Some neighborhoods and price points will decline.
How to Strategize
As a buyer, I don't recommend trying to time the market with interest rates. Get out there sooner than later as it will be harder and harder to land a home as the year progresses. Look for homes that are overpriced and sitting on the market with bad photos. The light cosmetic fixer is where the deals are right now. Let's hop on a call to discuss best lenders and negotiation tactics! There are deals out there right now that will appreciate this coming year.
As a seller, inventory is still historically low but it's still a whacky market. Pricing and the marketing of your home is more important than ever. I'm seeing great homes sit on the market due to poor pricing strategies, low quality marketing images and no preparation. Sellers should paint, do minor upgrades and stage their homes. Check out our concierge services. We front you money up front to remodel your home, no fees or questions asked. It's money in your bank to spend as you like!
Interested in buying or selling now or in the future? Maybe you're just curious about the process? Let's hop on a CALL when the time is right for you! I'm a no pressure agent.
