Amidst shrinking inventory and rising mortgage rates, home price growth moderated slightly.
In December, the S&P CoreLogic Case-Shiller national index noted a 0.2% increase in home prices, culminating in a 5.5% rise for the entirety of 2023.
Leading the year-over-year growth, San Diego saw an impressive jump of 8.8%, while Los Angeles and Detroit each enjoyed gains of 8.3%.
Well, well, well, folks! Brian Luke from S&P Dow Jones Indices just dropped some knowledge bombs about the good ol’ U.S. housing market. According to him, 2023 was quite a wild ride for this market. You see, it didn’t follow the same synchronized surge we witnessed during the peak of the pandemic. Nope, no sir! Instead, it opted for some consistent yet modest growth. And what does that mean, you may ask? Well, it could be a sign of some long-term changes in the housing dynamics after COVID. Exciting stuff, right? Let’s buckle up and see where this housing rollercoaster takes us!
As Luke pondered upon the bygone year, he couldn’t help but notice that the price hikes in 2023 were off the charts, leaving the average annual gains of the past 35 years looking like mere pocket change. With a wry smile, he mused, “Well, in the coming days, the impact of those skyrocketing mortgage rates on housing prices will become as clear as a sunny day. The last quarter gave us a sneak peek into the chaos, with 15 markets feeling the heat of pricing pressure, all thanks to those pesky financing costs.”
Ah, the housing market, a wild ride of high prices and mortgage rates that has potential buyers tiptoeing around like nervous squirrels. You see, homeowners who were lucky enough to snag low rates in the past are now holding onto their properties like treasure, afraid to let go. This reluctance to list their homes is creating a scarcity of available inventory, making house hunters feel like they’re searching for a needle in a haystack. It’s a delicate dance, my friends, a delicate dance indeed.
Mortgage rates are anticipated to decrease as the year progresses, following expected rate cuts by the Federal Reserve, yet they will likely remain above pre-pandemic levels.
Hold onto your hard hats, folks, because we’ve got some spicy new home sales data coming right at ya! According to the latest Census Bureau report, January saw a 1.5% jump in new home sales. But wait, there’s a plot twist: December’s figures were adjusted downward. *Gasp!* Don’t fret just yet, though, because the current sales pace is sitting pretty at a whopping 661,000 homes. Talk about a housing boom! It’s worth noting that all regions, except the South, experienced a sales surge. Looks like those southerners still hold the crown for highest sales volume, y’all. Keep those home sales rollin’!
Get ready for some real estate excitement, folks! This Thursday’s highly anticipated home sales report for January is about to drop, and word on the street is that we might see a modest rise. That’s right, we’re building on December’s impressive 8.3% increase, so things are looking up… kind of. With the spring buying season in full swing and mortgage rates hovering around 7% for a 30-year loan, it’s hard to say where the market’s momentum will take us. But hey, there’s a glimmer of hope! Rumor has it that there might be more listings popping up, which means more options for all you eager buyers out there. So, buckle up, grab your calculators, and let’s see what this rollercoaster ride of real estate has in store for us!
Well, well, well, folks! According to the fabulous Hannah Jones from Realtor.com, December was quite the rollercoaster ride for the real estate market. Despite the usual seasonal slowdown, we saw a delightful increase in both active and new listings compared to the previous year. Can I get a “hallelujah” for that? It seems like Santa Claus wasn’t the only one bringing gifts last month! This exciting development marks the second month in a row where we’ve witnessed some good ol’ annual growth in these areas. And hold on to your hats, because that’s not all! The end of the year brought us an absolute surge in pending and new home sales. What was the secret ingredient, you ask? Well, mortgage rates took a little breather and decided to loosen up a bit. And boy, did that grab the attention of buyers! Even though the rates were still higher than my hopes of becoming a professional ice cream taster (which is pretty high, let me tell you), the drop from October’s peak got people all fired up. It was like a real estate frenzy out there, my friends! So, let’s raise a glass to the wild ride of 2021 and the promising start of 2022. Who knows what surprises the housing market has in store for us next? Buckle up, folks, it’s gonna be a bumpy and exciting ride! Ah, behold the eternal struggle between insatiable desire and scarce resources, forever fueling the fiery furnace of skyrocketing prices.
