What’s Up with Real Estate?
National news and local views for the week ending Friday, April 26, 2024
Thomas J. Nelson
Thomas J. Nelson has been a California REALTOR though many markets since 1999. His expertise will guide you through the journey to achieving your goals in real estate.
National Real Estate News
Buyers gotta buy
Pending sales (signed contracts to purchase an existing home) rose 3.4% month-over-month in March 2024 [Source: NAR]. This despite average 30-yr mortgage rates hovering around 7% and record home prices in many areas. A larger number of homes for sale certainly helped (up roughly 20% year-over-year), but the real story is pent-up demand. Life happens, and when it's time to move, it's time to move.
Slowing economy, rising prices?
Real GDP grew at an annualized pace of 1.6% in Q1 2024, well below both Street expectations (2.5%) and the previous quarter's growth (Q4 2023: 3.4%). A cooling economy should have been positive for the bond market, but instead bond prices got crushed, sending bond yields and mortgage rates higher. Why? Q1 2024 inflation - as measured by Private Consumption Expenditures - appeared to reaccelerate [Source: BEA]
So here we are again
We will find out today (Friday), if the "sneak peek" at the PCE inflation data for March was accurate.
With 10-year US Treasury bond yields having jumped nearly 1% in the last four months (to over 4.7%),
it would not take much good news to cause a bond price rally. Expectations are for March "core" PCE
to improve slightly, from +2.8% YoY in Feb --> +2.7% YoY in Mar.
Local Market Trends
As of Friday, April 26, 2024
Thomas J. Nelson
San Diego's market is stable and booming, but it is favoring sellers, so buyers need expertise not guesswork to navigate our market. Sellers need guidance with which offer to choose and negotiation skills on both sides are a must! Hire a local expert!
| Area | Median Price | Active Listings | New Listings - 5 days | Median Days on Market |
|---|---|---|---|---|
| San Diego, CA | $949,998  0%
|
722  -0.4%
|
145 | 23 -0.1%
|
| 92117 | $1,353,500  0.2%
|
38 0.7%
|
12 | 17 -0.4%
|
| 92110 | $1,079,950 -0.1%
|
18 0.3%
|
7 | 17 0.1%
|
| 92037 | $3,895,000 0.2%
|
109 0.1%
|
16 | 38 -0.2%
|
/) from Mar. to Apr. 2024.
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