Lisa Mailhot | April 29, 2024
Buyers
As we progress through 2024, the real estate market remains filled with both obstacles and prospects for both buyers and sellers. Recent data from the National Association of Realtors (NAR) shows a significant impact of rising home prices and mortgage rates on pending home sales in February, with a hopeful outlook for the coming months.
In February 2024, the Pending Home Sales Index (PHSI), a forward-looking indicator based on contract signings, recorded a score of 75.6. This represents a 7% decline year-over-year but shows a slight improvement from previous months. High-cost regions, particularly in the Northeast and West, have experienced notable pullbacks due to affordability challenges. This trend underscores the importance of aligning home prices with income growth to ensure a healthy market environment.
The introduction of more homes into the market is a silver lining. Both existing home sellers and new home builders are starting to increase inventory, influenced by changes in life circumstances and economic conditions. Notably, active inventory rose by 23.5% in March, which helped to moderate home price growth somewhat, although the market remains competitive due to overall lower inventory levels compared to previous years.
Looking ahead, the real estate market's resilience is closely tied to broader economic indicators such as employment rates and interest rate policies. Both economists, Yun and Jones, suggest that future improvements in the Pending Home Sales Index will rely on a strong job market and anticipated interest rate cuts later in the year. However, they also caution that substantial progress in controlling inflation is necessary to stabilize mortgage rates and boost market activity.
While the current real estate market presents its set of challenges, the gradual improvements and strategic insights into inventory and pricing dynamics offer a beacon of hope. If you are considering making a move to Orange County and seeking to navigate these complex waters, let's connect and explore how you can achieve your real estate goals.
Reference: McPherson, Marian. "Steep home-price growth hampers February pending sales." National Association of Realtors.
New tariffs on Chinese imports are already causing sharp increases in tiny home and ADU prices. In high-cost regions like Orange County, this could significantly impac… Read more
Buyer love letters might tug at heartstrings, but they can also tread dangerous legal ground. Learn the top three ways these letters could violate Fair Housing laws — … Read more
Renters have more power than they think when it comes to repair issues in California. This blog breaks down your rights as a tenant, including when and how you can leg… Read more
The Midwest is on fire—and we’re not talking weather. Home prices in cities like Milwaukee and Detroit are soaring due to tight inventory and high demand. This blog di… Read more
The income gap between renting and owning a home has surged to over $52,000 in 2025. While rent increases have slowed, home prices and mortgage rates remain high, maki… Read more
Inflation cooled in March thanks to falling gas prices, providing a temporary sigh of relief for mortgage markets. While rates aren't dropping just yet, lower pressure… Read more
A new Redfin survey reveals that 1 in 5 homebuyers plan to sell stocks to fund their down payment. As market volatility shakes confidence, homeowners and renters alike… Read more
Despite a strong March jobs report, new tariffs and rising economic uncertainty are casting a shadow over the housing market. Here’s how these national trends could pl… Read more
The National Association of Realtors® just introduced a new companion to its Clear Cooperation Policy: Multiple Listing Options for Sellers. This update offers sellers… Read more
Let's find a time that suits you best to chat about your goals, show you how we work, and figure out how we can help you the most