Misraje Real Estate Partners wants to give you a quick update on California's real estate scene and what's been happening lately.
Interest Rates Might Stick Around: Even though it was initially expected that interest rates would drop by 2024, recent updates suggest we might see them stay high for a while longer. Why? Our economy is doing better than expected, especially in the job market.
Home Sales & Prices: Even though buying a home has gotten a bit pricier due to high interest rates (above 7%), there’s been a small boost in people looking to buy. On the bright side, experts predict more home sales and higher home prices in 2024. They're expecting home prices to reach around $866,300 next year, which is a 6.2% increase from 2023.
Job Market Update: Good news on the job front. More Californians are working now than last year. In fact, last week saw the lowest number of people applying for unemployment benefits since October of 2022. This shows our job market is strong, which is helping our economy grow faster than expected.
Mortgage Applications: Even though interest rates have been on the rise, there was a 12% increase in mortgage applications last week. However, it's still challenging for first-time buyers due to the high costs. And many homeowners prefer to stay put, possibly due to the low rates on their current mortgages.
Federal Reserve Update: The Federal Reserve, which influences interest rates, decided to keep them at 5.5%. They've indicated that they might keep rates high for a while to control inflation (keeping prices stable).
Current Real Estate Scene: California's housing market is a bit slower as we head into winter. Fewer homes are being sold, and those that are available are slightly more negotiable on price. While a good number of homes are still being sold above the asking price, the rate has dropped from 52% in June to 46% last week.
In summary, the real estate market is shifting a bit, but there are still opportunities. Whether you're looking to buy, sell, or just stay updated, I'm here to help.
Misraje Real Estate Partners