Is The Housing Market Turning ?

    The U.S. avoided a recession in 2023, and some say it will have a soft landing in 2024. Inflation has hovered in the 3% range for many months higher than the central bank would prefer, but at 2.6% for personal consumption expenditures (PCE), it’s closer to the target range of 2% and far from the double-digit highs since the pandemic began. Most sources cite the core PCE, which excludes volatile energy and food prices which sat at 3.2% by year’s end - the lowest level since March 2021.

    Sales in March of newly-built homes posted their biggest monthly increase in 15 months, up almost 9%, pushing sales more than 8% ahead for the year. The median price fell almost 2% versus a year ago to a median of $387,600. Mortgage interest rates have crept up and could be dampening demand. As of today, May 1, 2024 - 30 year conventional rates are just under 8% at 7.933%, 30 year VA is 7.13% and 30 year FHA is 7.137.  Existing housing inventory remains tight with approximately 3.5-month’s supply on hand at the current sales pace.

    Due to the improvement in market conditions and higher consumer confidence, Realtor.com research finds that two factors will drive housing sales in 2024’s relative affordability in the Midwest and Northeast and the 2023 dip in western home prices. Areas like Oxnard, Riverside, Bakersfield, San Diego, and Sacramento in California; Las Vegas, Nevada; Toledo, Ohio; and Springfield, Massachusetts could get double-digit sales growth in 2024. Toledo, for example, offers housing 51% below the national median with low unemployment.

    These improvements should encourage more homebuyers to make the leap to homeownership. Locally, my vendor contacts tell me that after a softer than usual March and April, they are seeing a resurgence in pending home sales.  This comes from my lender and attorney contacts who work with many different real estate agents.  I have seen a trend of price drops on Saint Simons in the under $700k on resale homes.  Inventory drifted upwards, a trend that may continue.

    Have a question? Just ask me, your Berkshire Hathaway HomeServices Forever Agent to update you on the latest local real estate market conditions.

Jeffery Williams  Associate Broker

Berkshire Hathaway HomeServices

520 Ocean Blvd, St. Simons Island, GA 31522

Ofc: 912-291-3428

https://jefferywilliams.hodnettcooperrealestate.com/

https://linktr.ee/jeff_williams_realtor

Designations & Specialties

Associate Broker License

Resort & Second Homes Market Specialist®

Military Relocation Professional®

rCertified® Relocation Specialist

eCertified® The Next Generation

Brookfield GRS Broker Certification

Certified Red Book Contracts Specialist®

BHHS eTeam Member

BHHS Spanish Speaking Team

Verified Rocket Homes® Agent