Interest Rates will Stay Higher longer

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    I'm not sure if you've seen the more recent headlines... but interest rates are going to stay higher for longer.

    Here is how I see this impacting the rest of the 2024 housing market.

    Going back to my original prediction for 2024, I said it would be a boring year...

    I was wrong.

    The first few months of the year were anything but boring - our Orange County market took off. Home prices appreciated an average of 15%. Nobody would have predicted that type of increase.

    Now having said that, I'm sticking with my original prediction. Not that I think it'll be a boring year. What I meant by that was I thought we would see an average year of appreciation. Average being a 5% increase in prices. Does that mean I think prices will come down from where they're at now? Possibly, but I don't think they'll come down lower than they started the year at.

    Inflation numbers have come back bad (for interest rates) all year. This means that the economy as a whole is doing better than expected. Prices are still rising (on everything, not just housing) and people are still spending money. This is great for the economy but bad for hopes of lowered interest rates.

    The last thing the FED wants to do is lower interest rates and see inflation skyrocket again.

    I don't believe we'll see any interest rate cuts this year, but that's my personal opinion. If that is the case, we will see a slowdown in prices increasing. Whether that means prices go up or down, a bit from here is hard to say.

    What does this mean for you? The same thing I've said for a long time. The advice from your agent matters more now than it ever has. This is a very complicated market. There are winners, and there are losers.

    I recommend setting up a Strategy Session for anyone considering a move in the next 12 months.

    Buyers - Click Here

    Sellers - Click Here

    As always, there is no cost or obligation.

    I'll make sure to keep you updated as we get into the peak of the market.

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