March 2024 Market Update Report

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From the Desk Of Josh Barker

MARKET UPDATE FOR March 2024

Homes Sold In February

The total number of homes sold in the month of February finished at 146, nearly unchanged when compared to last year when home sales in February finished at 129. 

Homes Listed For Sale In February

The total number of homes listed for sale in February finished at 209 nearly unchanged when compared to last year when 207 homes were listed for sale. Listing inventories are expected to remain stubbornly low through summer this year as many homeowners are reluctant to relinquish an extremely low mortgage rate for today's higher rates.

The Average Sales Price In February

The average sales price (Total value of all home sales divided by the total number) finished at $372k, up 2.5% compared to last year when the average sales price finished at $363k. Low home inventories are contributing to overall home price stability. 

Current Mortgage Interest Rates

Mortgage interest rates are currently averaging 7.25%, up from the rates of February last year when the mortgage rates averaged 6.65%. The Federal Reserve recently stated that it anticipates lowering rates in 2024, although it is likely not to happen until spring or summer at the soonest. 

The Rental Market

The long-term rental market in the Northstate continues to perform well. Many property managers report vacancy rates (total percentage of vacant rental properties under management) between 6-8% overall. This low vacancy rate has contributed to higher rents and shorter vacancy periods overall. The short-term vacation rental market has been a bit softer in comparison as vacancy rates have climbed and price reductions have been more common.

Housing Expectations Next quarter In The NorthState

Plenty of opinions are floating around regarding what to expect in the housing market this year. We see the following as the most likely scenario playing out.  First, according to the Federal Reserve (which controls rates), they will likely lower rates in 2024. For every 1% that the mortgage rate goes down., a buyer's purchasing power increases by up to 10%. Second, with many homeowners sitting in homes with all-time low interest rates, having a low home inventory will be challenging, which means more competition. Finally, as rates come down later this year, more buyers will be able to enter the housing market, and builders will have a bit more room to build for a modest profit. Clearly, this process will take time, and it is likely that the housing market will not experience increased housing supply at more affordable payments until later in the year.

In this market update, we've compiled informative slides that echo the themes discussed, providing a visual representation of the evolving market. Should you have additional questions or seek further insights, we're here to assist. Below is a collection of slides that correlate with many of the topics discussed in this report. As always, if you have any additional questions please feel free to contact us at 530-222-3800 or simply respond to this email. 

Have a great March!

sold listings feb 2024pending listings feb 2024Active Listings Feb 2024new listings feb 2024market summary feb 2024

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Make it a great February,
Josh Barker

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P.S. You can view all of our past real estate market updates by visiting www.reddinghomes.com/blog

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