San Mateo County Market Update May 2024

The housing market is experiencing a dynamic shift! More homes are entering the market, reflecting a surge in consumer confidence as buyers have adapted to the stabilized interest rates. According to the National Association of Realtors (NAR) buyer traffic has picked up in recent months, signifying a renewed interest in purchasing property. This is good news for everyone!

While some buyers may have been waiting for rock-bottom interest rates, the reality is that rates have stabilized after a period of significant increases. This stability provides predictability for buyers and allows them to move forward with purchase decisions with more confidence. Data from the Federal Reserve shows the 30-year fixed mortgage rate hovering around 6.2% as of May 2024.

Overall inventory is still slim, placing us squarely in a seller's market. Here's a data point to consider: According to a recent report by Freddie Mac new listings increased by 8% year-over-year in March 2024. This uptick is positive, but it's important to note that it follows a period of historically low inventory. Seller's can capitalize in a market where well-prepared and positioned properties are receiving multiple offers and overbids. Despite low inventory, buyers have more choices than they've seen in a year and a half. While there's more to choose from, it's important to maintain perspective. Inventory levels haven't reached pre-pandemic highs, creating a scenario where demand still outpaces supply. This translates to stiff competition for buyers on the most desirable homes.

What this means for you:

• Sellers: Seize the moment! With continued low inventory, your property is likely to attract significant interest. Act swiftly to get your home market-ready and capitalize on the seller's advantage.
  
• Buyers: The wait for a massive inventory surge may not materialize, but the increased choices and stable interest rates offer a more predictable buying experience! The good news is that you have more options, however homes are moving quickly due to the supply-demand imbalance. Be prepared to act decisively and work with your realtor to develop a competitive offer strategy.

Remember, a successful real estate transaction hinges on reliable information and expert guidance. Partner with a local realtor who can provide you with the most up-to-date market data and strategic advice tailored to your specific needs.