Is this a Seller's Market?

Many people wonder if we are still in a Seller's Market? According to recent housing data, the housing market is slowly adjusting to a more balanced market. Certain highly desirable pockets or neighborhoods continue to show signs of seller's market due to the limited inventory and high demand. The housing inventory ( in California) is still relatively low compared to average, although it has increased slightly in recent months. Demand still exceeds supply available on the market. With data showing only 3 months supply of unsold inventory in desirable communities, giving sellers the advantage position.

Sellers who price their homes right are receiving multiple offers. Listings would enter escrow between 30-60 days, some even sooner. The market is seen to remain stable by signs of increased listings and lower rates compared to 2023 ( when over 7%).

Home prices are still rising at a slower and more steady pace compared to the frenzy years. Data has shown a 5% increase since January of 2023 with the median home price at all-time high of $379,000. Housing experts have projected that home prices will continue to climb upward, ranging between 3-5% increase in 2024. There is no indication of housing market crash or prices falling despite the mortgage rates have

yet declined much.

Some people are beginning to accept and realize that the "unicorn years" of 2020-2021 were long gone. Experts believe that the historically low rates below 4% is not expected to happen again. Homebuyers who are still on the fence ought to leverage this slower housing market. Sellers would be more willing to negotiate and agree to more terms with the current interest rates while others are "still waiting" for the rates to drop below

5%. When rates start dropping, more buyers would enter the market, bidding wars are bound to happen, resulting in much higher purchase price.

Benefits for homebuyers to enter the market in 2024:

• Less competition before the rates decline later ( no one knows when that is)

• More room for negotiations with sellers

• Slower price growth means more affordability

• Start building equity

• Hedge against inflation
  

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