Navigating the 2024 Real Estate Landscape: Key Updates You Should Know
As we navigate the early stages of 2024, the first two weeks of January are showing us some key indicators that we can’t ignore. Here are some important market updates that could significantly influence your decision-making process, if you are looking to buy or sell:
Increased Open House Activity:
The initial two weekends of the year have seen a noteworthy surge in foot traffic at open houses. Despite the expected limited inventory, there are promising signs suggesting increased buyer activity, either re-engaging in their search or entering the real estate market for the first time this year.
Federal Reserve's Rate Cut Schedule:
The Federal Reserve has announced its intentions to adjust the federal funds rate strategically throughout 2024 - specifically three times. The proposed schedule is as follows, however, these projections are subject to change based on economic indicators such as CPI, employment data, and other relevant factors.
- January 2024: Pause
- March 2024: 25 basis points cut
- May 2024: Pause
- June 2024: 50 basis points cut
- July 2024: Pause
- September 2024: 25 basis points cut
- November 2024: 25 basis points cut
- December 2024: 25 basis points cut
10-Year Treasury Yield and Mortgage Rates:
As of the most recent assessment, yesterday, the 10-year Treasury yield, a direct influencer of consumer rates, rose to 4.21%. This adjustment has translated into an elevation of consumer rates to 6.88%, with a spread of 279 basis points to the consumer 30-year fixed-rate mortgage.
Zillow's Home Price Forecast:
Zillow has revisited its home price forecast, now anticipating a nationwide increase of +3.5% in U.S. home prices from December 2023 to December 2024.
These insights hold paramount importance for both prospective buyers and sellers, offering a nuanced understanding of the prevailing market dynamics. Whether you are contemplating a real estate transaction or observing from a distance, our team stands ready to provide the guidance and support required.
Questions? Need a personalized roadmap for your real estate journey? Please don’t hesitate to reach out.