Mortgage Rate Limbo? Who’s really going to be bending backwards in the 2024 Real Estate Hunger Games 🥴

Hey REAL T Sippers 🫖

Here’s the T as I see it in 2024… as mortgage rates are predicted to drop… propsective homebuyers are getting really excited about the opportunity to lock in a lower interest rate in the new year.  But as we learned from the height of the CRAZY MARKET of 2021 — all good things come at  price and in the Los Angeles market — that price was usually $200K+ over asking, having zero contractual contingencies and 3 catty clashes later– just waiting to get into the open house.  So yes — a hot market it was but so hot it burned many — and according to Zillow — 75% of all homebuyers during this period had regrets b/c there was never an opportunity to make a well informed, rested-upon, and prudent decision.  With that said, that market was quite unique with sub 3% rates (don’t chase this rate or you may never become a homeowner), excess money saved from being quarantined months before, and the stir-craziness built up during the previous months — and that —  brought a lot… and I mean ALOT of “Buyers”. 

The Laws of Supply and Demand made that period a very frustrating time for anyone with a pre-approval letter who bent over backwards to be seen and then jump into a Multiples “Hunger Games”-esque bidding war!  On the buying side — I can tell you it was miserable and heartbreaking for many of my buyers.  On Listing side — My seller were like — Snow White waking up every day to the fawna and the flora singing and dancing!  So– is that what we can look forward to in 2024 — if only we had a crystal ball– not exactly but with our dear friend Jerome Powell (aka the Team Fed) indicating “its not likely we will hike (rate) again” — it appears we will have some multi-verse version of 2021 with rates predicted in land in the 5’s.  That’s definitely enough to bring more “Buyers” out of hibernation and bring on real competition with what I called the “static” of that anxiety-ridden year!

T sippers here’s the thing — while buyers were priced out of what they could afford at 3% or 4% — the higher interest rate at 7% or higher meant less competition– which meant a better purchase price —  so more or less evened out… AND don’t forget a higher interest rate means more of tax deduction as Property taxes and interest rate expenses are tax deductible.

OK, Where’s my T sipping Homeowners???  If as predicted — this means lots of good stuff for you: Higher demand means higher property value (whether you sell or hold).  This type of market also lends to being in “multiples” with multiple buyers putting in offers within a week or two of landing on the market — and bidding against each other to secure your home.  One caveat — this doesn’t automatically just happen and a skilled and dedicated Listing Real Estate Advisor should have a full marketing and custom strategic plan to best position your home in the top 3 of your neighborhood and priced corrrectly (ie not the Zillow Zestimator 😑).  Timing is also important –The Spring and Fall market are generally the best times to launch but again life will sometimes dictate when its convenient to sell.  Your Real Estate Advisor should be looking at historical 2-3 years patterns on the MLS to see when there are the most eye-balls shopping in your neighborhood.

So, if you were thinking about “Right-Sizing” due to Life — this may become an opportunity to revisit that goal.  Buying and Selling has an art to do it — and ideally the Selling happens right before the Buying however you want to plan to do both at the same time b/c there’s no sense in Selling if you have no idea where you are going — let’ s not be homeless! 

So here’s the Real T — whether you are a buyer or seller — 2024 seems like it’s packing similar vibes to the 2021 market. If you’re thinking about selling or right-sizing — the real estate tarot cards seem to be stacked in your favor — meet with a trusted real estate professional and start getting all your ducks in a row to get ready for the Spring Market.  If you’re a buyer — this is an opportune time to take advantage of the “Calm before the Storm.”  Even if you close at a higher interest rate within the next few months — if predictions stay true — you can re-finance once they do.  You then also secure a lower price point with less competition and avoid viewing or being part of several birken bag cat fights just waiting to get into an open house.  Happy New Year T Sippers – Let the 2024 Real Estate Hunger Games Begin – May the odds ever be in your favor!

Happy to help with those odds — Schedule a V.I.P.  (Vision and Initial Possibilities) Call so we can best strategize a custom plan for you 🤓