Lynn North's Market Update

Santa Clara Valley

April 2024 Market Report

Dramatically Improving Economic Indicators suggest a brighter 2024 housing market based on the first quarter!

In the first 3 months of 2024, the average, weekly, 30-year mortgage interest rate dropped from 6.79% to 5.75%. With the fall in inflation this past year, the Fed is widely expected to continue dropping its benchmark rate, probably in multiple steps, in 2024. The consensus forecast among analysts is for further declines in mortgage interest rates. As a result, the market is much more active with more listings and buyers anxious to get into homes closer to work too!

After its end-of-year rally, both the S&P Index & Nasdaq continues to be up 25%, especially with AI and tech stocks such as Nvidia chips. This plays a major role in Bay Area household wealth.

While more homes have been coming on the market, inventory continues to be lower than needed, based on the pent-up demand, resulting in multiple offers and sales within 10 days on average.

See the attached article with specific data on the 1st quarter market in Santa Clara:

https://www.compass.com/marketing-center/editor/v2/flipbook/1c8432ae-cdc2-4c02-96d2-b920ac86a98a?utm_medium=email&utm_campaign=639364dc4f86b10001c7a905&utm_source=5b647f2e32e833402fbf8223&abe=0&agent_id=5b647f2e32e833402fbf8223

*Article written by Patrick Carlisle of Compass
Chief Market Analyst

Demographics Impact on 2024 Real Estate Market

When rates start to decline, there will be an influx of buyers and sellers. Per lenders and top analysts, we are expected to get into the mid 5.5% range by the 2nd quarter! 

Housing demand will be fueled by the largest generation of potential homebuyers – the millennials!

Millennials:

• US Millennials population is 72 million
• Medial age of people moving out of their parent’s home is 26
• Medial age of first-time home buyers is 35

The impact of Baby Boomers:

• Largest group of all homeowners are aged 65+
• Buyers aged 57+are more likely to downsize
• Baby Boomers are 52% of all seniors

The average homeowner equity is about $274K

*Data provided by Buffini & Inman