real estate Jennifer Ferrara January 12, 2024
As of December 4, 2023, interest-rate futures traders (the people who make a lot of money being right about where rates will go) expect the Fed to cut the federal funds rate, which currently falls between 5.25% and 5.50%, by 1.25%.
The falling sales in 2023 have allowed inventory to grow, which is much needed. Although inventory is still down 6% year over year, it has increased 20% in 2023 and will likely continue to increase through the rest of the year, which is far different from the typical seasonal trend of increasing in the first half of the year and declining in the second. In Q1 2024, we expect inventory to rise further, helping ease the low supply problem. Greater supply will be necessary because mortgage rates should decrease meaningfully with the anticipated rate cuts, driving up demand. A 1% decrease in interest rate equates to a 10% decrease in monthly financing costs. At this point, we expect a large number of would-be buyers to wait a little longer to gain more clarity around rate cuts in 2024 and hit the market in the spring and summer months.
Different regions and individual houses vary from the broad national trends, so we’ve included a Local Lowdown below to provide you with in-depth coverage for your area.
Unlike 2023, 2024 inventory has a much better chance of following more typical seasonal patterns. The falling sales in 2023 have allowed inventory to grow, which is much needed. Although inventory is still down 6% year over year, it has increased 20% in 2023 and will likely continue to increase through the rest of the year
As demand slows, buyers are gaining slightly more negotiating power and paying less than asking price on average, but buyer competition will ramp up meaningfully in the spring, which will create price support.
Where historic charm meets the Pie Capital of Texas, in the state's fastest-growing city
An idyllic blend of artistic flair, natural beauty, and tranquil living in the heart of Texas Hill Country
Lakeway, a hidden gem west of downtown Austin.
Sharing our favorite spots in Austin and surrounding areas.
Considered as one of the city's crown jewels. Besides offering plenty of food, beverages, hotels, shopping, and culture, Rainey Street is a hub of the downtown Austin … Read more
Austin just wouldn't be Austin without South Congress, and it's the vein that leads straight to the heart of Texas.
Buying or selling your home doesn't have to be stressful...even in this aggressive market! Our team can help you navigate these waters, so you can get the best deal, and walk away with more money in your bank account. How can we help you?