Navigating the Horizon: Recent Real Estate Market Trends and a Glimpse into 2024

2024 Projected Market Trends

As we stand on the cusp of a new year, it’s crucial to reflect on the current trends that have shaped the current real estate landscape in both Northwest Oregon and Southwest Washington.

Home Sales

❱ During the third quarter of 2023, a total of 10,279 homes changed hands. This marked a 21% decrease from the corresponding period in 2022 and a 1.3% dip compared to the second quarter of 2023.

❱ In a quarter-to-quarter comparison, sales experienced declines in eight counties but saw an uptick in ten. Klickitat and Hood River counties witnessed noteworthy growth, whereas Lincoln, Skamania, and Wasco counties saw sales drop by more than 10%.

❱ In contrast to the third quarter of 2022, home sales dwindled across all counties, with substantial declines in each area except for Klickitat.

 

Home Prices

❱ The average home selling price in the region experienced a marginal 0.1% year-over-year decline, remaining relatively stable compared to the second quarter of 2023.

❱ In terms of median listing prices, there was a modest 1.9% increase compared to the second quarter of 2023. This suggests that home sellers are adjusting their expectations in response to the impact of higher mortgage rates on potential buyers.

❱ The growth in prices seems to have plateaued, a development not unexpected considering that mortgage rates hovered above 7% for a significant portion of the quarter. As we experienced a relatively static scenario in the fourth quarter, both buyers and sellers seemingly adopted a wait-and-see approach to gauge the trajectory of mortgage rates.

 

Days on Market

❱ The average duration it took to sell a home in the third quarter of 2023 stood at 49 days. In comparison to the same period in 2022, the average time to sell a home in the region increased by eight days.

❱ These figures seem to suggest that buyers are demonstrating a relatively prompt decision-making process when they identify a home they desire, even amidst the backdrop of higher mortgage rates.

Currentmarkettrends home buyer seller 2024

 

Tips for Buying in the Current Market:
❱ Consider relocating to a more affordable housing market if your job allows or supports remote work.
❱ Prepare in advance by organizing your financial situation, collecting necessary documents, exploring various lenders, and boosting your credit score to act swiftly.
❱ Stay vigilant by regularly checking prices and listings to stay ahead of the competition.
❱ Understand your monthly payment, including taxes, and ensure it aligns with your budget.

Tips for Selling in the Current Market:
❱ Collaborate with a real estate agent to determine an optimal price, fostering buyer competition for a quicker sale.
❱ Prepare your home for sale promptly to attract potential buyers sooner rather than later.
❱ Enhance your home’s online presentation to increase its curb appeal in the digital space.
❱ Include a 3-D home virtual tour or interactive floor plan in your listings to garner more views and saves.

 

As we look ahead to 2024, the real estate landscape may continue to respond to economic and market changes. The anticipated stabilization in prices, coupled with buyers’ proactive decision-making, suggests a market finding its equilibrium. Factors such as mortgage rate trends, economic developments, and potential shifts in buyer behavior will likely shape the narrative. Economists express optimism that the Federal Reserve has concluded its campaign to raise rates in order to combat inflation. This sentiment follows the decision to maintain the federal funds rate at its current level for a third consecutive meeting on December 13. The federal funds rate, a benchmark interest rate affecting overnight loans between financial institutions, typically has an indirect impact on mortgage rates. The upcoming year holds the potential for revealing fresh insights, challenges, and opportunities, offering a canvas for stakeholders to shape their real estate stories.

 

Questions? Contact us!