Your January Market Update



First, we’d like to wish you and your family a happy, healthy and peaceful 2024. While we normally reflect on market conditions for the previous month, January is an appropriate moment to look back at 2023 and forward to prospects for the coming months.

Last year was a tale of two markets as we adjusted to mortgage rates that rose substantially in 2022 and stayed in the 6.5% range for much of the first 6 months of ’23. Then, just when everyone thought they were headed down, they headed up! Higher than 8% in some markets. The climb was swift and a shock to buyers. Even swifter: The decline that began in late October to settle back in the 6.5% range by year’s end.

Here’s where it gets exciting: Since the mainstream media lags reality, the improvement in buyer demand – evidenced by a 20% INCREASE in pending sales in December ’23 vs. ’22 – will show up as higher sale closings in January. The media will pick that up in February. Remember, you heard it here first!

There is more optimism right now, driven by lower mortgage rates than we have seen for some time. Right out of the blocks in January, demand is strong. I am excited to bring 4 properties to market this month and we are getting calls before the signs go up!

Smart buyers know that, while rates could go down further, they could also go up. Like they did last year! They are jumping in with the regained affordability of interest rates not seen since last Spring.

While inventory is tight, we know more homes will come on the market between now and Spring than any other time of the year.

If you’re thinking: Do I list now or later? Call Jim today at 415-492-0100!