Our Broker of Record, Dean Stalter, shared his key insights into the current real estate market, aiming to shed some light on the market for both buyers and sellers.
Here’s a breakdown of what buyers and sellers can expect of the Southern California real estate market in the upcoming months and throughout 2024:
Based on last year’s trends, the primary concern for buyers is the need for more inventory and therefore better choices. The market has seen increased pressure on prices, limiting opportunities for buyers. Dean Stalter suggests that addressing the shortage of inventory is crucial in the Southern California real estate market.
Additionally, Dean predicts a moderation in interest rates. He emphasizes that the Federal Reserve may need to lower lending rates, allowing for more flexibility. By the third quarter, he hopes for the possibility that interest rates will soften by the end of the year.
Sellers, on the other hand, still find themselves in a powerful position within the current market. It’s typical that most sellers also transition into buyers, often in tandem, and will face similar considerations and challenges. One big advantage as a seller are opportunities to maximize gains and realize appreciation.
For sellers looking to make a move – the option to advance a portion of equity to secure a new property before selling the current one is an excellent approach. This strategy aims to reduce stress, increase value, and help buyers secure the home they truly desire.
Dean closes by pointing out a critical issue facing California – a reported shortage of 2.5 million housing units. This shortage significantly impacts the real estate market, making it essential to build more housing in areas and at price points that people can afford. Taking such measures will not only increase inventory but also provide flexibility to everyone in the market.
Dean’s insights offer valuable guidance for both buyers and sellers in navigating the ever-evolving real estate landscape. As the market continues to present challenges, being informed and strategic becomes key to making successful real estate decisions.
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