What to Expect in 2024

I anticipate our local real estate market will be in flux in 2024 for the following reasons:

1. Interest Rate Reduction: I foresee interest rates adjusting downward this year, likely prompting increased buyer activity. With rates becoming more favorable, expect a surge in home sales across all price brackets. Buyers are adapting to the notion that current interest rates represent the new normal, which instills confidence in re-engaging with the market.
2. Persistent High Insurance Costs: I anticipate the possibility of further escalation in insurance rates in our area, attributed to the soaring expenses associated with labor and materials for home reconstruction. I am hoping for the return of major carriers, like State Farm and Allstate, which would stabilize and potentially reduce rates. Given the prevalent wildfire risk in our area, premium rates are likely to endure.
3. Continued Low Inventory: I anticipate a continued scarcity of inventory as many homeowners, who previously refinanced at favorable rates, remain hesitant to sell. Additionally, reluctance among long-term homeowners to sell due to capital gains tax concerns contributes to inventory constraints. Limited availability of developable land throughout the Bay Area further exacerbates the shortage. Moreover, the prevalence of reverse mortgages and extended homeowner tenure exacerbates the shortage of available homes.
4. Impact of Presidential Election Year: Historically it has been noted that some buyers and sellers exhibit hesitation during an election year due to uncertainties surrounding the economic climate. Fear of potential changes and their repercussions on buying power and property values may deter prospective buyers and existing homeowners from engaging in real estate transactions.

THE BOTTOM LINE

Presentation, marketing, and pricing remain the three most important factors in selling a home. These three elements need to be fully optimized in order to receive the highest price and best terms for a property. If you are thinking of buying or selling your home, please feel free to contact me for a confidential consultation. Let my experience, extensive market knowledge, and proven track record work to your advantage.