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2024 Real Estate Forecast

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We are nearing the end of the First Quarter in real estate, and The Gamache Team is prepared to offer you the latest 2024 Real Estate forecast. We will cover what to expect as a seller and a buyer as well as interest rate predictions and more based on information received from CAR and trusted professionals. 

Comparing the 2024 Real Estate Market with Traditional Markets

In a traditional market, the real estate market would be in full swing. Sellers would have prepped their homes for the market and eager buyers would be attending open houses with an intent to purchase the home of their dreams.

Lenders would be guiding their clients with reasonable mortgage payments based on reasonable interest rates. If a buyer lost out on a home or walked away due to price or another issue, there would be other homes from which to choose at comparable prices. 

But 2024 has yet to enter a market that is even close to a traditional busy market. Low inventory, high interest rates, and high home prices based on supply and demand have slowed the 2024 real estate market. 

Sellers eager to move up or downsize are sitting in their homes due to low interest rates from refinancing a few years ago. The thought of moving, having a higher interest rate and paying a higher mortgage for less home is not appealing to homeowners, leaving less inventory for buyers.

Eager buyers whose buying power has now decreased due to higher interest rates are looking for the perfect home. So, homes that need some work or a major renovation are sitting on the market longer. Once that move-in ready home becomes available, interested buyers are flooding open houses and often creating bidding wars and some are back to offering over asking price.

Frustrated buyers who have been waiting to purchase a home are torn between buying a home now at a higher interest rate but a better sales price or waiting for a lower interest rate for a lesser priced home. 

2024 CAR Real Estate Market Forecast 

California Association of Realtors (CAR) predicts that the market will rebound in 2024 once mortgage rates ebb. “Slower economic growth and cooling inflation will bring down mortgage interest rates in 2024 and create a more favorable market environment to spur California home sales next year,” according to a housing and economic forecast released by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). 

Other predictions include a 6.2% increase in median home sales, an increase in inventory once rates decrease, housing affordability will remain at 17%, the same as last year, and home prices will continue to increased based on supply and demand principles (source).

C.A.R. President Jennifer Branchini, a Bay Area REALTOR® states, “A more favorable market environment with lower borrowing costs, coupled with an increase in available homes for sale, will motivate buyers and sellers to reenter the market next year. First-time buyers who were squeezed out by the highly competitive market in the last couple of years will try to attain their American dream next year. Repeat buyers who have overcome the “lock-in effect” will also return to the market as mortgage rates begin to trend down.”

Predictions for Interest Rates

Federal Reserve policy makers declined to raise interest rates for a fourth straight meeting, signaling a possible end to raising rates and the start of lowering them.

The Feds will meet again in March to decide whether or not to lower rates. According to CME Group, Chicago Mercantile Exchange, “Markets are currently pricing in a 63.5% chance the Fed will begin cutting interest rates at its next meeting in March.”

Advice for Buyers and Sellers Regarding the 2024 Real Estate Marketing Forecast

The Gamache Team is an experienced team of professional Realtors who have been in business for almost 50 decades and have withstood the test of real estate market ebb and flows. Our advice for both buyers and sellers is to sit down with a Realtor who is familiar with the market and can discuss the pros and cons of both selling and buying verse waiting out the market. 

Have a trusted professional analyze your personal situation with real numbers so you can decide the best course of action to take. Consider how an increase in home prices vs waiting for a lower interest rate may affect buying power.

Think about how much more competition there will be if you wait to either purchase a home or sell yours. How much of a hurry are you in? Can you handle a higher mortgage rate now if you know you can refinance when rates go down? Will any fees you pay make financial sense if you choose to refinance in a few years? 

Do you have realistic goals on how much you can afford and will waiting price you out of your dream home?

What makes sense to you based on your principles, desires, goals, and finances? 

Contact The Gamache Team

If you are considering purchasing or selling a home in 2024, speaking to a neutral party that can assess your individual situation makes a lot of sense. The Gamache Team has experience in all types of real estate markets and the 2024 Real Estate market is no exception. 

Work with us to align your real estate goals and principles to decide if now is the right time to purchase or sell or if waiting is a better option. 

 

How the Newest Fed Rate Hike Could Affect Home Buyers

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The Feds raised the interest rates again today, July 26, by a quarter of a percentage point, the highest in 22 years. (source)

While mortgage rates are influenced by interest rate moves by the Feds, a number of other factors influence mortgage rates, including financial markets, inflation, Treasury yields and a homebuyer’s application-think credit score (source)

Still, the targeted interest rate range of 5.25%-5.50% could have a significant impact on home buyers who may experience higher prices on their loans. 

Feds Show a History of Raising Interest Rates

This is not the first time the Feds have raised interest rates which have now doubled since March of 2022 (source). Looking to the future, the Feds have hinted this may not be the last time they raise rates.

“The Fed left the door open to further rate hikes this year, with Chair Jerome Powell telling reporters in a news conference that additional tightening is possible unless inflation continues to cool rapidly” (source).

Advice to Home Buyers During Interest Rate Hikes

As Realtors and owners of real estate, it’s The Gamache Team’s responsibility to advise our clients on the best course of action to take when the Feds hike interest rates .

Every home buyer is different, and depending on your situation, there will be different solutions. 

However, here is our advice to home buyers during interest rate hikes:

  • Meet with a Realtor to discuss your goals, concerns, and financial status. 
  • Stay put. If the rates are out of your comfort zone, you may want to ride out the rise in rates with the understanding that what comes up, must come down! (or so we hope!) Use this time to work on your credit report and pay down debt so your debt-to-income ratio is more attractive and offers a better interest rate. 
  • Place a larger down payment on the home. Putting more money down will decrease the loan amount and the price you pay for your mortgage.
  • Buy now and plan to refinance when rates go down. If you find the home of your dreams, it may not be there if you wait for rates to go down. By waiting, you will also be competing with other buyers who waited and may lose out to someone else. As well, by waiting a year to buy the home, the home price may have risen, and you are paying more for the home.
  • Shop around for the best rate. Lenders offer different rates, terms, and assistance. Shop around for what works for you.
  • Buy down the rate. Ask your lender if this is a possibility. 
  • Stay positive and informed. The worst decisions are sometimes made in haste or when pressured and frantic. 

Contact The Gamache Team for More Information

The Gamache Team has ridden the wave of the real estate industry for decades. We haven’t seen a market yet that our clients haven’t made it through. Whether you are looking to move to a home in Dublin, Pleasanton, Livermore, or anywhere in between, we can help.

Let’s start with an initial consultation of ways we can support you during the rise in interest rates and put together a plan of action. 

Contact us to start the home buyer’s journey today.

How to Prepare for Your Next Home Purchase Despite the Rise in Interest Rates

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The increase in interest rates over the last few months and especially over last year have edged some home buyers out of the market. What was once an affordable mortgage before the interest rate increase may no longer be affordable. 

In a recent article by The New York Times, feds are considering raising interest rates at an even faster rate than before to ease inflation and stabilize the economy.  

What does that mean for eager home buyers and how do they prepare for their next home purchase despite the rise in interest rates? Here are some considerations.

Considerations for Your Next Home Purchase

If home ownership is still a top priority for you, reconsider the type of home you may want. If the big house with the acre of land on a private street is now out of your price range, consider a smaller home in a neighborhood.

Buy a Starter Home

If you are a renter and can’t stand paying someone else’s rent, think about buying a condo or townhome as a starter home. This way, you can take advantage of creating your own equity in a house you own rather than throwing money away in rent. When the market shifts and the rates are more favorable, you can use that opportunity to sell your home, take the equity, and purchase a home in an area of your choosing.

Improve Your Credit Score

Use this time to prepare your credit for a great rate. If you have credit card debt, consider paying it down so that you have the ability to get a better rate once the interest rates become more favorable. Avoid opening new accounts or having your credit score checked often. Take this opportunity to check your credit score so you are prepared to get qualified for a great loan so when you do find the home you want, you are well-qualified to purchase it.

Investigate Other Neighborhoods

Consider looking at other neighborhoods that you may have ignored. Use this “cooling off” period in between rate hikes to really narrow down the areas you want to live. There are some hidden gems that may just have a home you like or that you would reconsider living in if you are priced out of the neighborhoods and homes you originally wanted. 

Talk to Your Realtor

This is a really good time to have a heart-to-heart with your Realtor. Discuss the off-market listings he or she knows about. Ask if there is a home coming on the market that you can purchase before it hits the market. There are a lot of sellers who would rather take a good, clean offer rather than sit through weeks of open houses with strangers coming through their doors. Money isn’t always the driving force behind a seller’s decision. 

Put an action plan together of what to do to prepare for your home buying journey. What do you need to do to set yourself up for success? Discuss your questions and concerns with your Realtor. Sometimes your Realtor has solutions for other buying options. 

Trust The Gamache Team for all of your Home Buying and Home Selling Needs

The Gamache Team is the perfect blend of experience, energy, and knowledge to offer unmatched service to all our clients! In any phase of real estate, The Gamache Team is prepared to handle it with you. With over 20 years of Tri Valley real estate experience, The Gamache Team is ready to give you the best service possible!

 

South Livermore Real Estate Market Update

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The latest south Livermore real estate market update shows low inventory but high home sales. The Gamache Team reports an increase in median sales prices with a value of $2,075,000.

Higher home prices are driven by the low inventory and buyers who are tired of being turned down repeatedly and competing with other buyers for the same homes. We are still seeing multiple offers on homes that are in great condition and priced to sell.

Statistics such as these should make current homeowners in south Livermore extremely happy, especially if they are considering a move in the near future. With little to no competition, a home that is listed for sale in south Livermore is a hot commodity and will most likely sell quickly.

How Will Interest Rates Affect My South Livermore Home Sale?

With interest rates slowly rising, buyers will be able to afford less home, and your home may have to be priced lower to make it more affordable. The good news is conforming loan limits in California have increased, providing better rates and easier underwriting requirements.

If you are considering selling your south Livermore home, The Gamache Team is happy to present you with a home valuation for your consideration. Just contact us to set up an appointment. 

I’m a Buyer Looking for a South Livermore Home. How will Interest Rates Affect Me?

With current rates as they are, it’s still an amazing time to invest in residential real estate. South Livermore homes have traditionally maintained their values; with people being able to relocate to a cheaper area with more home and or land, now is an excellent time to find your south Livermore home. 

You may be using an app to locate a home for sale, but in this market, with low inventory and high demand, the likelihood of that home still being on the market when you are ready to see it is low. 

The Gamache Team is happy to connect with you and alert you when we discover a home in south Livermore is going on the market. We have access to off-market listings and south Livermore homes coming soon to the market.

Please email me at Dan@gamachetteam.com.

Contact The Gamache Team for All Your South Livermore Home Sale Needs

The Gamache Team has been serving the south Livermore home sales market for decades. We are experts in getting you the most out of your home sale and making the process as easy as possible.

As residents in the Tri-Valley, we know the neighborhoods and keep a careful eye on the market so you get an edge on your competition and do not overpay for your home. 

Looking for a real estate professional who specializes in the south Livermore market? Contact The Gamache Team. 

 

 

2020 Real Estate Trends Worth Talking About

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While no one can predict the real estate market through a crystal ball, financial experts predict several 2020 real estate trends from which both buyers and sellers can benefit.

Home Prices Predicted to Rise Slowly, But Less Rapidly than 2019

According to Freddie Mac, real estate prices will continue to grow, but less rapidly than they did in 2019. For homeowners, this is good news, as you will still see growth in your equity so if you do decide to sell, you will profit.

Just make sure when you do sell, your home is in top shape to justify an increase in value and you have marketed it and priced it to sell. Using an experienced Realtor® such as The Gamache Team will be in your best interest.

Buyers can expect a competitive market, being able to afford a home and not be outed by outrageous prices and inflated values that disqualified them in previous years.

For buyers who are still out of the price range for their dream home, personal money management expert, Dave Ramsey suggests they

  • Continue to save for a down payment
  • Be realistic about what you can and cannot afford
  • Research other areas
  • Consider buying a fixer upper to take advantage of the lower price increase
  • Take a hard look at what you really want versus need in a home
  • Hire a reputable buyer’s agent such as The Gamache Team to help you get qualified and negotiate a great offer in your best interests

Mortgage Interest Rates Continue to be Low and May be on the Decline

With the trade and tariff war a hot topic, the feds do have room to adjust to a lower interest rate in 2020. Despite the feds holding interest rates at their current levels this week, Kiplinger announced, “If market turmoil develops, perhaps related to trade, then the Fed will likely cut at least once more.”

Lower interest rates are good news for buyers who can afford just a little bit more home or increase their down payment. Sellers will benefit because more buyers will be vying for their home.

In 2020, economist geeks think interest rates will stay around 3.7% for a 30-year mortgage and 3.2% for a 15-year mortgage. (Kiplinger)

Buyers and Sellers Should Contact an Experienced Real Estate Expert Such as The Gamache Team

If you or anyone you know is looking for a real estate expert who can help them sell or buy a home, contact The Gamache Team. Proven experience, excellent negotiating tactics, a vested interest in the neighborhood they live and work in, The Gamache Team has been assisting buyers and sellers with their real estate needs for over three decades.

Interest Rates go Down for the First Time Since 2008

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Good news from the Federal Reserve who cut interest rates for the first time in over a decade! Homeowners and those looking for a home loan can celebrate the one quarter of one percentage point lower interest rate which can add up to big savings.

Now is a Great Time to Buy a Home

Timing is everything, and for those homeowners or homeowners-to-be who waited to buy, now is the perfect time to buy your next home. With rates as low as 3.375% on a 30-yr fixed loan, you can save thousands on a home loan or upgrade to a home with a larger asking price.

What the Federal Reserve’s Decision Could Mean for the Housing Market

A drop in interest rates could mean more homes will be on the market, pushing homeowners who were previously on the fence to sell and buy their next new home. With such low rates tempting people, more people might jump at the chance to move up or out, leaving a supply of new homes in the third and fourth quarters.

Homebuyers who may not see themselves in a home for a long time can enjoy the low adjustable rate loans, currently set at 3.625%. A lower rate means a lower mortgage payment, and more money for vacations, remodels, home improvement, college, or retirement.

Helping Buyers and Sellers in the Tri-Valley Area Fulfill Their Real Estate Dreams

The Gamache Team has been assisting homebuyers and home sellers in the Tri-Valley for decades. Our family enjoys living here and can help you pick out your next new home. We know the neighborhoods, schools, recreational opportunities, and best places to grab a bite to eat or enjoy a bargain.

If you are considering a move to the Tri-Valley area, we invite you to visit our home page and check out the areas that interest you.

Please feel free to contact us for a no-pressure consultation. We are happy to assist you and answer any questions you may have about moving to the Tri-Valley, giving you an estimate on your home’s value, or partnering you up with a lender who can help you take advantage of these great rates!

 

 

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