What's Up Real Estate - February

It's time to get back to business with an eye on the spring and summer selling seasons. Despite a dip in December's home sales and a challenging 2023, there are several reasons for both buyers and sellers to look forward to 2024 with optimism.

🏠 Real Estate Market: A Glimpse into 2024

• Mortgage Rate Movements: A notable drop of over 100 basis points since October last year has ushered in a wave of optimism. Coupled with the Federal Reserve's anticipated rate cuts in the upcoming months, the stage is set for a potentially buoyant market.

• Inventory and Sales: While December saw a slight 1% MoM decrease in home sales, the broader picture for 2024 shows promise. With a 19% decline in 2023, hitting the lowest since 1995, the question looms: Are we at a pivotal market moment?

📈 Economic Tidbits: From CPI Shocks to Retail Ripples

• A Jolt from CPI: January's CPI data rattled the bond market with a YoY increase to 3.1%, sparking fears of inflation reacceleration. This was particularly pronounced in the shelter costs, significantly impacting core inflation metrics. BEA

• Bond Market's Reaction: The bond market's adverse reaction, with 10-year US Treasury yields spiking, underscored the market's hesitancy about an imminent rate cut, casting a shadow over the upcoming spring selling season. MBS Highway

• Retail Sales Downturn: January's retail sales dip (-0.8% MoM) further complicated the narrative, suggesting a potential cooling in consumer spending. Census Bureau

🏗️ Housing Market Highlights

• Zillow's 2024 Outlook: Encouragingly, Zillow identifies emerging housing markets, particularly in the Eastern US, offering a blend of economic growth and home appreciation potential. Zillow

• Builders' Confidence & New Home Sales: Despite broader economic uncertainties, the housing construction sector shows resilience, with new home sales in December 2023 rising 8% MoM. The trend towards more affordable, smaller homes is reshaping the market landscape. Census Bureau

🔄 Market Cycles and Looking Ahead

• Navigating the Cycle: As we scrutinize the current state of the real estate market cycle, it's crucial to remain cautious yet optimistic. With economic indicators showing strength, and the Fed's strategic moves on rates, deciphering the market's direction becomes ever more complex.

• What's Next for Buyers and Sellers?: For those pondering their next move, strategic planning is key. With the spring rush on the horizon, informed decision-making will be paramount, whether you're locking in gains from recent years or scouting for your dream home.

🎁 Special Offer

• Refer and Earn: In appreciation of your trust and support, I'm excited to announce a special offer: Refer friends or family who close on a property with me, and I'll cover half of their closing costs, plus you'll receive $1,500 cash. Let's make 2024 a year of unparalleled success together!

As we navigate these fluctuating tides, my commitment to providing you with insightful, actionable advice remains steadfast. Here's to a year of smart investments, dream homes, and prosperity.

Until next time, stay informed and inspired!