Inventory Still an Issue in 2024?
Filed under: Real Estate Market
In today’s video, I want to talk about why real estate inventory is still an issue. Last year in 2023, we saw a dramatic increase in interest rates. Everyone knows it and the news has been talking about it. But what we didn’t see was the dramatic decrease in home prices.
Why didn’t home prices drop? Because there aren’t enough homes to meet the demand. Even though we had a weak demand in 2023, we had an even weaker inventory level. Meaning: we just don’t have enough homes to sell.
What To Expect in the Coming Year?
What does this mean going forward? I think that we’ll see things happen once rates adjust back down. The Fed has been very vocal that within the next few years, they are going to lower rates – that’s their goal. They haven’t hidden that fact. They’ve been talking about it ever since they raised rates. By 2025, they want a significant rate reduction from where we are now.
I don’t think they are going to go to the 2’s, but they will definitely go to the 5’s or the high-4’s. That being said, theoretically what will happen to homes if rates were to dip back down again? I just think it turns back into a seller’s market.
Are You Thinking About Buying a Home?
The takeaway: if you are thinking about getting into a home or buying an investment property, you really want to focus on getting that handled this year before we see any significant drop in interest rates. Inventory is still an issue – the data is showing that it is at one of the lowest points we’ve seen in awhile.
If you have any questions about this or you would like to talk in more depth, then call or text me any time. I’m always here to help: (951) 473-0390. Or, feel free to email me at [email protected] if you prefer.