Stay up to date with the latest news in the real estate market. From major housing and construction projects in Santa Cruz County to predictions for home prices in 2024, we’ve got you covered. Discover how to make your voice heard and navigate the ever-changing housing market. Whether you’re a buyer or seller, our experts provide valuable insights and advice to help you make informed decisions. Find out more about the current state of the housing market and what the future holds. Read on to learn about the ongoing construction projects in Santa Cruz County and gain valuable insights into the housing market predictions for 2024.
Housing and construction projects in Santa Cruz County – Santa Cruz Local
Stay up to date on major housing and construction projects across Santa Cruz County and find out how to make your voice heard. Construction continues on a 205-unit housing project with shops at Pacific Avenue and Laurel Street in Santa Cruz on Oct. 19, 2022. (Stephen Baxter — Santa Cruz Local)
Housing Market Predictions For 2024: When Will Home Prices Be Affordable Again? – Forbes Advisor
You might be using an unsupported or outdated browser. To get the best possible experience please use the latest version of Chrome, Firefox, Safari, or Microsoft Edge to view this website. Reviewed. Updated: Mar 21, 2024, 12:48pm. As the spring home-buying season approaches, there are signs that buying and selling activity in the market may not fully bloom. A combination of still-high mortgage rates and home prices amid historically low housing stock continues to put homeownership out of reach for many—most notably first-time buyers. Many may have to surrender to the reality of elevated home prices and mortgage rates if they want to buy a home in the foreseeable future. Essentially, all of the 2023 headwinds remain. Elevated mortgage rates, out-of-reach home prices and record-low housing stock continue to make for a perfect unaffordability recipe. “The recent boomerang in rates has dampened already tentative home-buyer momentum as we approach the spring, a historically busy season for home buying,” said Sam Khater, chief economist at Freddie Mac, in a press statement. While U.S. home prices declined in December for the second consecutive month, according to the latest S&P CoreLogic Case-Shiller Home Price Index, home prices year-over-year jumped 5%. Experts anticipate a slower rise in 2024 home prices compared to recent years. Moreover, the fluctuation will vary regionally and depend strongly on local market supply. Chief economist at First American Financial Corporation Mark Fleming predicts a “flat stretch” ahead. “If the 2020-2021 housing market was too hot, then the 2023 market was probably too cold, but 2024 won’t yet be just right,” Fleming said in his 2024 forecast. For a housing recovery to occur, several conditions must unfold. “For the best possible outcome, we’d first need to see inventories of homes for sale turn considerably higher,” says Keith Gumbinger, vice president at online mortgage company HSH.com. “This additional inventory, in turn, would ease the upward pressure on home prices, leveling them off or perhaps helping them to settle back somewhat from peak or near-peak levels.” And, of course,mortgage rateswould need to cool off—which experts say is imminent, despite rates edging back up toward 7%. For the week ending March 21, the 30-year fixed mortgage rate stood at 6.87% However, when mortgage rates finally go on the descent, Gumbinger says don’t hope they cool too quickly. Rapidly falling rates could create a surge of demand that wipes away any inventory gains, causing home prices to rebound. “Better that rate reductions happen at a metered pace, incrementally improving buyer opportunities over a stretch of time, rather than all at once,” Gumbinger says. Kuba Jewgieniew, CEO of Realty ONE Group, a real estate brokerage company, is optimistic about a recovery this year. “[W]e’re definitely looking forward to a better housing market in 2024 as interest rates start to settle around 6% or even lower,” says Jewgieniew. With many homeowners “locked in” at low interest rates or unwilling to sell due to high home prices, demand continues to outpace housing supply—and likely will for a while. “I don’t expect to see a meaningful increase in the supply of existing homes for sale until mortgage rates are back down in the low 5% range, so probably not in 2024,” says Rick Sharga, founder and CEO of CJ Patrick Company, a market intelligence and business advisory firm. Housing stock remains near historic lows—especially entry-level supply—which has propped up demand and sustained ultra-high home prices. Still, some hopeful signs are re-emerging. For one, home builder outlook, which had been on a downslide, is trending back up amid declining mortgage rates and better building conditions. The most recent National Association of Home Builders (NAHB)/ Wells Fargo Housing Market Index (HMI), which tracks builder sentiment, rose from 44 to 48 in February. A reading of 50 or above means more builders see good conditions ahead for new construction. At the same time, new single-family building permits managed to tick up slightly in January—the 12th consecutive monthly increase—according to the latest data from the U.S. Census Bureau and U.S. Department of Housing and Urban Development (HUD). Though the housing market demonstrated some signs of growth ahead of the spring home-buying season, persistently high mortgage rates may hinder activity from fully flourishing. Here’s what the latest home sales data has to say. Existing-home sales showed tentative signs of a pre-spring thaw in January, climbing 3.1% from the month before, according to the latest data from the National Association of Realtors (NAR). Sales dipped 1.7% from a year ago. Meanwhile, home prices continue to grow to unprecedented heights, reaching $379,100, which marks the seventh consecutive month of yearly price increases. “While home sales remain sizably lower than a couple of years ago, January’s monthly gain is the start of more supply and demand,” said Lawrence Yun, chief economist at NAR, in the report. “Listings were modestly higher, and home buyers are taking advantage of lower mortgage rates compared to late last year.” Meanwhile, new homes continued to lure buyers frustrated with the lack of resale inventory. Sales of newly constructed single-family houses were up 1.5% in January from the month before and 1.8% annually, according to the latest U.S. Census Bureau and HUD data. The median price for a new home in December was $420,700, widening the gap between existing home prices to $41,600 amid steady demand. See MoreSee Less If the latest pending home sales data is a harbinger of spring housing market activity then we’re in for a paltry season. NAR’s Pending Homes Sales Index sank 4.9% in January compared to the month before and was down 8.8% year-over-year. The West and Northeast saw monthly transaction gains but all four U.S. regions recorded year-over-year declines. Though Yun expressed optimism about the country’s wealth and stable job market as favorable home-buying conditions, he acknowledged that headwinds remain. “[C]onsumers are showing extra sensitivity to changes in mortgage rates in the current cycle, and that’s impacting home sales.” Inventory of unsold resale homes inched up 2.0% to 1.1 million between December and January, leaving existing home stock at a scant three-month supply at the current sales pace, per NAR. Many experts say a balanced housing market has a four- to six-month supply. Though down from its 2023 high of 7.79%, the average 30-year fixed mortgage rate in 2024 remains well over 6% amid rising home values. As a result, home buyers continue to face affordability challenges. Monthly mortgage payments are back on the rise, with the median payment in January climbing to $2,671, up from $2,361 in December, according to Redfin. And the news doesn’t appear to look much better for eager home buyers in the months ahead. A panel of 100 housing experts predicts that mortgage rates will stabilize at a median rate of 6% by the end of 2024, per Q1 2024 Pulsenomics and Fannie Mae Home Price Expectations Survey data. Though seemingly welcome news, the panelists anticipate lower rates will benefit homeowners over home buyers, with lower rates—combined with limited inventory—pushing up home prices. Here are some expert tips to increase your chances for an optimal outcome in this tight housing market. Hannah Jones, a senior economic research analyst at Realtor.com, offers this expert advice to aspiring buyers: Gary Ashton, founder of The Ashton Real Estate Group of RE/MAX Advantage, has this expert advice for sellers: Despite some areas of the country experiencing monthly price declines, the likelihood of ahousing market crash—a rapid drop in unsustainably high home prices due to waning demand—remains low for 2024. “[T]he record low supply of houses on the market protects against a market crash,” says Tom Hutchens, executive vice president of production at Angel Oak Mortgage Solutions, a non-QM lender. Moreover, experts point out that today’s homeowners stand on much more secure footing than those coming out of the 2008 financial crisis, with many borrowers having substantial home equity. “In 2024, I expect we’ll see home appreciation take a step back but not plummet,” says Orphe Divounguy, senior macroeconomist at Zillow Home Loans. This outlook aligns with what other housing market watchers expect. “Comerica forecasts that national house prices will rise 2.9% in 2024,” said Bill Adams, chief economist at Comerica Bank, in an emailed statement. Divounguy also notes that several factors, including Millennials entering their prime home-buying years, wage growth and financial wealth are tailwinds that will sustain housing demand in 2024. Even so, with fewer homes selling, Dan Hnatkovskyy, co-founder and CEO of NewHomesMate, a marketplace for new construction homes, sees a price collapse within the realm of possibility, especially in markets where real estate investors scooped up numerous properties. “If something pushes that over the edge, the consequences could be severe,” said Hnatkovskyy, in an emailed statement. In January, total foreclosure filings were up 10% from last month and 5% from a year ago, according to property data provider Attom. Recent data also suggests broader economic conditions are beginning to have a greater influence on foreclosure activity. “[E]xternal factors may be at play such as escalating interest rates
Is The Housing Market Going To Crash? | Bankrate
At Bankrate, we strive to help you make smarter financial decisions. Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We follow a strict editorial policy, so you can trust that we’re putting your interests first. Our real estate reporters and editors focus on educating consumers about this life-changing transaction and how to navigate the complex and ever-changing housing market. We value your trust and provide accurate and unbiased information. You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate. We are transparent about how we bring quality content, competitive rates, and useful tools to you. Despite high mortgage rates, home prices continue to rise, driven by a lack of housing supply. Economists agree that while a correction may occur, it will not be as severe as the Great Recession. The housing market is being pulled in two directions, with high mortgage rates putting downward pressure on prices, while significant demand and low inventory place upward pressure. All of this suggests that while affordability may be a challenge, a housing market crash is unlikely. For more information, read the full article on Bankrate.