At the end of our second month of the 2024 buyer’s market, the increase in inventory is beginning to impact pricing and deals. Although buyers technically have the upper hand, higher interest rates make it difficult to obtain affordable financing. Thinking back to 2021 and early 2022, rates were low enough that they were driving sales. That’s not the case now, with mortgage rates exceeding 7% and defying the recent Fed rate decreases.
At the beginning of the year, we usually see an increase in inventory—people are done with the holidays and are ready to commit to a sale. The other piece of the puzzle: The original concerns from a supply standpoint were in the entry-level and move-up segments, because they are the most impacted by interest rates. Now we are seeing changes across the market, with more luxury inventory hitting and more high-end properties sitting on the market for longer. The luxury season kicks off in January, but there is already a lot of product out there to fulfill that need.
If you start seeing signs springing up around your neighborhood, that means you have competition and need to manage your expectations—because supply and demand will eventually dictate lower pricing.
You can read all the details in the R.O.I. Properties “Real State – Residential” newsletter, with additional statistics, market trends and information, but here’s a quick peek at the highlights:
Originally shared via roiproperties.com newsletter. Click here to read full newsletter.
