Pacific Equity & Loan

March 2024 – Market Update

Welcome to our March 2024 Real Estate Market Update, where we dive deep into the latest trends and insights shaping the ever-evolving real estate landscape. As we venture further into the year, it’s essential to stay informed about the dynamic shifts and emerging opportunities in the market. Join us as we analyze key indicators, explore market dynamics, and provide valuable insights to help you make informed decisions in your real estate endeavors. Whether you’re a seasoned investor, a prospective buyer, or simply curious about the state of the market, our comprehensive update is here to guide you through the intricate world of real estate in March 2024.

The Inflation Report Exceeding Expectations Will Lead to Slight Increases in Mortgage Rates–However, No Cause for Alarm

The latest data reveals that core inflation for February exceeded expectations slightly. While concerns about inflation persist, there's no need for immediate panic. Mortgage rates are expected to see a modest increase today, with any anticipation for a rate cut in May likely diminishing. However, the possibility of a rate cut in June remains on the table.

February saw the first increase in housing supply in 8 months, according to the latest housing market update

As spring draws near, more homes are hitting the market, prompting increased activity among house hunters. Touring activity is on the rise, and mortgage-purchase applications have seen an 11% increase this week. Compared to a year earlier, new listings have surged by 13% nationwide over the four weeks leading up to March 3, marking the most significant increase in almost three years. This uptick in new listings has contributed to a 1.7% increase in the total number of homes for sale, breaking an eight-month streak of declines. February notably marks the first month where the inventory of homes for sale has grown on an annual basis.

Recent pricing data offers some optimism for prospective buyers. Asking prices for new listings have seen the smallest increase in approximately two months, and 5.5% of home sellers have reduced their asking prices, the highest share for any February since at least 2015. Despite high mortgage rates pushing the median monthly housing payment close to an all-time high, final sale prices have risen by 5.3% year over year, signaling one of the most significant increases in the past year and a half. However, the momentum in price growth for new listings is expected to slow down soon, potentially leading to declining final sale prices.

At last, there's an abundance of affordable homes hitting the market. Discover where you can purchase properties priced below $350,000 right now

While the median home price across the nation remains at $415,500, there has been a notable surge in properties available at considerably lower prices.

According to recent reports, the number of homes listed for sale in the $200,000 to $350,000 range has increased by 20.6% compared to the same period last year. This rise in affordable housing options surpasses growth in all other price brackets.

Chief Economist Danielle Hale, says that the growth in the South is a significant factor behind the rising proportion of lower-priced homes available for sale.

Although homes within this price range vary widely, the median price stands at $285,000. This represents a substantial savings of $130,500 compared to the overall median home price.

Sources: Redfin, Keeping Current Matters, Realtor.com

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