Luxury Homes Selling For 1/2 Off!

National Real Estate Insights – February 2024 – Compass

NOW 
IS THE TIME TO MAKE THAT OFFER!

This home just sold for $3 MILLION 
under the original asking price!

In recent months, the real estate market has shifted from a seller's market to a buyer's market. This has significant implications for buyers, sellers, and real estate professionals. Buyers can take advantage of increased inventory and favorable conditions, while sellers and professionals can leverage their expertise to navigate the changing landscape. 

This shift introduces new opportunities for all parties involved, emphasizing the importance of staying informed and adaptable. Whether you're a buyer, seller, or professional, being proactive and adaptable in response to market shifts is key to achieving successful outcomes in real estate transactions.

Interest rates are well below those seen late last year, but have 
started ticking up in mid-February. 

Through February 22nd, stock markets have continued to rebound dramatically, deeply impacting household wealth – especially among more affluent buyers.

Having plunged from its peak in mid-2022, the inflation rate has not dropped as quickly as expected in recent months, a big factor in mortgage interest rates.

As a percentage of total sales, the share of transactions being completed 
by buyers paying all cash has continued to climb. 

Median home sales prices rise and fall to seasonal supply and demand dynamics, and January prices mostly reflect the slow December market. Still, U.S. house and condo/co-op prices were up 5% & 5.7% respectively year-over-year.

National house-price appreciation rates over various periods since 1990. 

Home sales by price segment:  Higher-price segments have recently seen 
by far the largest year-over-year increases in sales.

Median house prices in selected U.S. metro areas. "Metro areas" typically 
consist of large, multi-county regions. 

And a look at the approximate income required to buy a median-priced house in various U.S. metro areas, based on a 20% downpayment. 

As the new year's market wakes up, the number of new listings is spiking, 
but, so far in 2024, not enough to meet the acceleration in buyer demand. Since mid-2022, listing activity has plummeted due to the mortgage lock-in effect, but many analysts predict higher listing volumes this year.

Months-Supply-of-Inventory measures supply as compared to demand:  The lower the MSI, the more heated and competitive the market. During the pandemic boom, soaring demand dropped MSI to historic lows;  since mid-2022, the plunge in listings has been the main factor in keeping MSI so low by historical standards. 

January sales volume reflects the very slow market of December, but moving into spring, the monthly number of sales should begin rising quickly. Click on the image below for our overview report on market seasonality.

Strong demand vs. an inadequate supply of homes for sale, plus higher 
interest rates, have severely impacted housing affordability.

FEMA evaluates social and economic risk against 18 different natural hazards, including floods, wildfires, earthquakes & hurricanes.  Click on the image below to review a series of FEMA's Risk Index maps.

A limited illustration of Census data regarding U.S. population diversity. People have come and continue to arrive from every country across the globe – which is another significant factor in many regional housing markets.

Real estate agents and brokers play a crucial role in guiding their clients through market shifts. In a buyer's market, I can provide valuable insights into pricing strategies, market trends, and effective marketing techniques to help sellers achieve successful transactions. For buyers, I can help identify properties that align with their criteria and negotiate favorable terms on their behalf.

Please let me know if I can ever be of assistance, in any way, 
to you or your family, friends and colleagues.

Vincent Kessel

Real Estate Advisor
M: 561.693.9291
vincent.kessel@compass.com

National and regional statistics are generalities, essentially summaries generated by thousands of unique, individual listings and sales occurring across different market segments. They are best seen not as precise measurements, but as broad, comparative indicators with reasonable margins of error. Anomalous fluctuations in statistics are not uncommon, and last period data should be considered preliminary estimates which may be revised in future updates. Different analytics programs sometimes define standard statistics differently – such as "active listings," "days on market," and "months supply of inventory":  What is most meaningful are not specific numeric calculations but the trends they illustrate. Data from sources deemed reliable, but may contain errors, and subject to revision. All numbers to be considered approximate, and how these analyses apply to any particular property is unknown without a specific comparative market analysis.

Compass is a licensed real estate broker. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.

Luxury Homes Selling For 1/2 Off!

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