The Market Overview*
Now is a good time to buy — with interest rates stable and higher than a few years ago buyers are waiting in the wings. That means there is less competition.
Now is a good time to sell — there is limited inventory and pent-up demand — prices are holding steady.
*The real estate market changes quickly, and this information may become outdated. Please verify details and consult professionals for the most current insights.
Market News
Following the Fed’s recent rate cut, what could its next move be?
Regardless of exactly what policies are introduced, a change in the party occupying the White House creates some new unknowns for the economy. This argues for a more gradual pace of interest rate cuts.”
Michael Feroli, Chief U.S. economist, J.P. Morgan
Mortgage rate volatility today will continue to be influenced by economic conditions and political developments.
A recent article from The Mortgage Reports explains:
“Today’s economic indicators come with mixed pressures on mortgage rates and we’re likely to be in for a good amount of volatility as markets adjust and respond to the election . . .”
One of the best hedges against inflation is buying assets that do better than the rate of inflation and protect your buying power. Purchasing a home, has proven to be better than the alternative of renting.
If you compare the net worth of a renter vs a homeowner, the disparity has continued to grow:
2019: Homeowner has 40x net worth of a renter ($295,500 vs $7300)
2024: Homeowner has 42x net worth of a renter ($415,000 vs $10,000)
More new construction is expected in 2025.
The NAHB (National Association of Home Builders) Chairman Carl Harris said:
“With the elections now in the rear-view mirror, builders are expressing increasing confidence that Republicans gaining all the levers of power in Washington will result in significant regulatory relief for the industry that will lead to the construction of more homes and apartments. This is reflected in a huge jump in builder sales expectations over the next six months. . .”
Want to learn more?
Checkout San Francisco Housing Market Analysis & Forecast (2024 – 2025) from The Luxury Playbook