Modern Updated Beautiful Kitchen Design

Despite inflation rising slightly more than expected at the end of last year, news headlines in 2024 so far have been mostly positive. Consumers begin to believe that overall price growth is slowing, while rates are stabilizing, and more homebuyers on the sidelines are coming back to the market. These are encouraging signs that could kick start the housing market in the new year and could help turn the market around. If the sentiment remains upbeat and the upward momentum continues, we could see a bounce back in market activity in the near term.

 

Inflation rises more than expected in December: Consumer prices rose more than expected, with the headline inflation increasing 0.3% month-over-month and 3.4% year-over-year in December. Economists were expecting the Consumer Price Index (CPI) to have an increase of 3.2% for the final month of the year, an inch-up from 3.1% recorded in November. Most of the increase in the overall prices came from rising shelter costs, as the category jumped 6.2% year-over-year. The Core CPI – inflation excluding food and energy – continued to fall on an annual basis in December, with the index dipping to 3.9% from November’s 4%. It was the first time in two and a half years that the core CPI dropped below the 4% threshold. Despite a slight uptick in the headline CPI, inflation continues to ease, but the downward trend is somewhat sticky and is moving at a slow pace. Looking ahead, the headline CPI should decline further in coming months and will likely drop below 3% year-over year by the end of 2024.

 

Short-term inflation expectation dips to the lowest point in three years: Americans began to take note of the slower growth in prices and started to believe that inflation is cooling. The median inflation expectation at the one-year ahead horizon fell to 3.0% in December from 3.4% recorded in the prior month, as reported by the New York Fed in its Survey of Consumer Expectations. The year-end number has come a long way from the high of 6.8% registered in June 2022, but remained above the pre-pandemic 5-year average of 2.7%. Consumers in December continued to expect home prices to grow at 3.0% a year from now, unchanged from the prior month, but continued to stay above the survey series 12-month trailing average of 2.4%. The slowdown in inflation expectations is a positive sign that prices will continue to ease later this year, as expectations can feed into actual inflation and could turn them into self-fulfilling prophecy.   

 

Mortgage Rates Decrease to Lowest Level Since May of 2023: The average 30-year fixed rate mortgage (FRM) reported by Freddie Mac as of January 18 declined to 6.6%, its lowest rate since May 2023. With CPI coming in slightly higher than expected though, rates could see some volatility in the coming weeks. Lower rates brought some homebuyers off the sidelines at the start of the year, with mortgage applications surging 9.9% week-over-week in the first week of 2024, according to Mortgage Bankers Association. Purchase applications, while still down 16% from the year-ago level, were up 6% from the prior week. 

 

U.S. foreclosures up in 2023 but remain below pre-pandemic levels: Foreclosure filings on U.S. properties increased to 357,062 in 2023, a jump of 10% from 2022 but a decline of 28% from 2019, according to ATTOM. Foreclosure activity was also well below the Great Recession level, with filings in 2023 down 88% from the peak of 2.9 million in 2010. The 357k plus properties with foreclosure filings represented 0.26% of all U.S. housing units, a slight uptick from 0.23% in 2022, but a dip from 0.36% in 2019 and a steep decline from the peak of 2.23% in 2010. For the month of December, 20,490 properties in the U.S. started the foreclosure process, an 8% decline from the prior month, and a drop of 3% from the same month in 2022. Nationwide, one in every 4,606 properties had a foreclosure filing in the last month of the year. At the state level, California had 29,180 foreclosure starts in 2023, an increase of 7% from 27,269 reported in 2022. With home prices expected to increase in 2024 and the economy likely to experience a mild growth this year, foreclosure activity could fluctuate but is not expected to increase sharply in the next 12 months.

 

If you have any questions or would like personalized advice regarding the current market conditions, please feel free to reach out. Your success in real estate is my top priority.

 

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2512 W Beachy Pl Long Beach 90815

3 Bed | 2 Bath | 1,695 SF | $875,000

 

Embrace the charm of this lovingly maintained single-story, single-family home, cherished by the same family for over 50 years. Nestled on an expansive 10,948 sq ft lot, this property beckons with endless possibilities – from adding an ADU, a pool, more living space, or just simply reveling in the serene, park-like ambiance.

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2174 Stanbridge Ave

Long Beach 90815

3 Bed | 2 Bath | 1,489 SF | $905,000

 

Nestled in coveted Los Altos... known for being pet & people friendly with awesome schools, parks, walkability & more! This immaculate & inviting 3 bedroom/2 bath home with its upgraded kitchen, baths, living room as well as spacious family room will go fast!

807 Delaware St

Huntington Beach 92648

4 Bed | 5 Bath | 3,237 SF | $2,605,000

 

Tesoro Builders has created another extraordinary opportunity to own a brand new, custom designed single-family home in the heart of highly coveted downtown Huntington Beach. The epitome luxury living offers an exceptional beach lifestyle.

5417 Bonfair Ave

Lakewood 90712

4 Bed | 2 Bath | 1,746 SF | $950,000

 

Welcome to this recently updated 4 bedroom, 2 bath two story home located in the heart of Lakewood.

251 Elm Ave. 

Long Beach 90802

2 Bed+Den | 3.5 Bath | 1,750 SF | $915,000

 

This exceptional modern townhome at The Huxton built in 2018 boasts 2 bedrooms, a den/great room, and 4 baths spanning 1,750 square feet. The large rooftop deck off the top-floor den/great room provides an exceptional indoor/outdoor living experience.

2059 W 160th St.

Torrance 90504

2 Bed | 1 Bath | 837 SF | $780,000

 

Discover Your Dream Home in North Torrance! This charming 2-bedroom home is nestled on a serene residential street, offering you a remarkable opportunity to own in this sought-after neighborhood with great schools.

781 W 30th St

San Pedro 90731

3 Bed | 2 Bath | 2,067 SF | $1,225,000

 

Stunning 3-bed, 2-bath home with breathtaking ocean views in Coastal San Pedro. Experience the beauty of the ocean from the front yard, primary bedroom, and the expansive backyard.

773 W 30th St

San Pedro 90731

3 Bed | 2 Bath | 1,040 SF | $955,000

 

Enjoy beautiful ocean and harbor views from the front yard, living room, and the expansive backyard. This 3-bed, 2-bath home offers even more possibilities with an additional enclosed patio area currently staged as a family room and game room.

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www.ImagineRealty.com

 

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