Hot start for the housing market in 2024

At the start of 2024, there is an uptick in demand as mortgage payments fall and more homes hit the market. That’s the main conclusion from Redfin’s first market update for the year. Here are the other key points:

  • New listings rose 9% year-over-year

  • The total number of active listings is down 2.9% YoY but that’s the smallest decline since June.

  • Total mortgage application volume rose 9.9% week-to-week

  • Total mortgage applications rose 3% month-to-month

  • Applications to refinance a home loan jumped 19% from the previous week and were 30% higher than the same week one year ago.

Our take

Honestly, in the middle of 2023, we weren’t expecting this year to start with a bang, but it truly has! We can’t encourage agents enough to capitalize on this hot start. The mortgage rates have motivated both buyers and sellers. Even though rates are significantly higher than a year ago, they’ve dropped from 8% in October to about 6.7%, and that has motivated people to buy and, even more astonishingly, to list. Clearly, we don’t need mortgage rates to plummet to the extraordinarily low levels we saw during the pandemic to get off the sidelines. Take advantage of this while you can because it MIGHT not last if the CPI and job numbers don’t come in as expected throughout the first quarter.

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