I have read over 100 publications over the past 2 weeks from some of the smartest economic minds in the nation and although there are some thoughts on both sides of the spectrum, the consensus I come away with is that mortgage rates may have topped out or have room to inch up slightly through the end of the year, only to come down slowly toward the middle to end of next year with many of the predictions stating rates to end 2024 around 6-6.5%.
But what if? What if rates come down sooner (as many home owners are hoping)? My thought is that if rates happen to come down into the 6’s by March or April of next year that the market will see a large influx of new inventory from homeowners who have wanted to move for the past year and a half but were reluctant because of the unicorn rates they currently have (pent up supply). I have spoken with hundreds of homeowners over the past 6 months who want to move (upsize, downsize, different city, etc) but feel the timing is bad due to rates…my thought is there are thousands of these folks around the city and as soon as rates come down to the 6’s we will see a ton of new listings which in my opinion will not cause home process to drop but rather stay steady.
As for the market update.
- 7.64% Average Interest Rate on a 30-Year Fixed Rate Mortgage
- 29 Average Days on Market
- 109 Single Family Homes closed escrow last week in the Valley
- 894 Active Listings as of today
- 3 Months of Supply
- 100% Final Sale Price as a % of List Price
* All data above is based on single family homes in Encino, Sherman Oaks, Studio City, Tarzana, Woodland Hills, and West Hills. This specificity ensures the most accurate data.