Market Insights: What to expect in 2024!
As we head into early 2024, we wanted to give you a little perspective on what we are seeing start to happen in the housing market along with what some of the experts are saying.
2023 was a year of sellers holding onto their low interest rates and staying put, and the expectation is that this trend will continue for the coming years, but likely not to the extent that we experienced in 2023. With rates having come down from their peaks, and looking like they will trend down, it has re-opened the door for more homeowners to have the finances to move up or down, depending on their life stage.
In these first few weeks of 2024, we have already seen multiple offers being received by sellers that wouldn’t have experienced the same kind of activity just a month ago. Morgan and I expect this will likely continue (if not ramp up) especially if inflation comes down. Now that the Fed has indicated that rate hikes are assuredly finished, and with cuts likely happening in this next year, the fear that gripped the housing market for 2023 has mostly subsided and there is much more confidence in the real estate market.
All of that to say, we are expecting some more inventory to hit the market, but with the expected and already-felt increasing demand, we will likely be in a more competitive version of 2023 with just a few more homes to choose from. This opinion is from our experience, but it's also from reading and hearing a variety of experts on the topic. Many economists (along with us) agree that Southern California will have modest growth of around 4-6% in 2024, followed by 3-4 years of similar, if not slightly less, annual appreciation.
I'm admittedly more bullish on San Diego real estate specifically - there is just such a shortage of inventory when compared with the demand, and the attractiveness of San Diego (as a place less impacted by natural disasters with fantastic weather) will likely only increase.
So what does our opinion boil down to?
Seller: If you are considering selling because you are fearful of the market, I don't think this is the best time to sell. The fundamentals make the market here in San Diego look very solid with times ahead, maybe in the near future, as possible great times to sell.
- Homeowner looking to upgrade: Possibly an incredible time
- Homeowner looking to downgrade: Likely not as ideal of a time
Buyer: If you are considering getting into the market or making an addition to your portfolio, I think it could be a really good year to take a serious look - especially earlier in the year before competition has a chance to pick up.
As always though, we encourage your life and lifestyle to be what you want it to be, whether or not you fall into the (though never certain) *ideal* timeframe!
2023 was a year of sellers holding onto their low interest rates and staying put, and the expectation is that this trend will continue for the coming years, but likely not to the extent that we experienced in 2023. With rates having come down from their peaks, and looking like they will trend down, it has re-opened the door for more homeowners to have the finances to move up or down, depending on their life stage.
In these first few weeks of 2024, we have already seen multiple offers being received by sellers that wouldn’t have experienced the same kind of activity just a month ago. Morgan and I expect this will likely continue (if not ramp up) especially if inflation comes down. Now that the Fed has indicated that rate hikes are assuredly finished, and with cuts likely happening in this next year, the fear that gripped the housing market for 2023 has mostly subsided and there is much more confidence in the real estate market.
All of that to say, we are expecting some more inventory to hit the market, but with the expected and already-felt increasing demand, we will likely be in a more competitive version of 2023 with just a few more homes to choose from. This opinion is from our experience, but it's also from reading and hearing a variety of experts on the topic. Many economists (along with us) agree that Southern California will have modest growth of around 4-6% in 2024, followed by 3-4 years of similar, if not slightly less, annual appreciation.
I'm admittedly more bullish on San Diego real estate specifically - there is just such a shortage of inventory when compared with the demand, and the attractiveness of San Diego (as a place less impacted by natural disasters with fantastic weather) will likely only increase.
So what does our opinion boil down to?
Seller: If you are considering selling because you are fearful of the market, I don't think this is the best time to sell. The fundamentals make the market here in San Diego look very solid with times ahead, maybe in the near future, as possible great times to sell.
- Homeowner looking to upgrade: Possibly an incredible time
- Homeowner looking to downgrade: Likely not as ideal of a time
Buyer: If you are considering getting into the market or making an addition to your portfolio, I think it could be a really good year to take a serious look - especially earlier in the year before competition has a chance to pick up.
As always though, we encourage your life and lifestyle to be what you want it to be, whether or not you fall into the (though never certain) *ideal* timeframe!
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