Will we see more home inventory this Spring?

Housing market data indicates greater inventory in Spring

In the most recent report from Altos Research, housing market data showed that inventory data appears to indicate that more homes will come into the market this Spring. Rates have held steady for the past month or so, and inventory is starting to build back up.

There are just over 505,000 single-family homes for sale in the U.S. this week. That’s up 1.2% week-over-week, but up nearly 7.0% than last year at the same time. Active inventory gained 6,000 homes this past week. This would have been a big week if it occurred in 2023.

Sellers seemed to sit on the sidelines last year, but that doesn’t seem to be the case right now. The current market has 5% more new listings now than it did at the same point last year.

In addition to the increase in listings, sales activity is also 5% higher than the same time last year.

If these trends continue, the 2024 Spring housing market should be a lot more active than it was in 2023.

Will the Las Vegas housing market stay hot in 2024?

The Las Vegas Review-Journal reviewed a few expert predictions for the local housing market in 2024, and the takeaway is that Las Vegas should continue to grow. A recent report from a real estate listing company indicated that the Las Vegas metro area should be the 12^th hottest market in the country.

Last year, Las Vegas had its worst year on record for housing since 2008, but experts are predicting a rebound in 2024.

The rebound is expected to be aided by Californians looking to relocate. Merri Perry, the Las Vegas Realtors Association President, stated, “Las Vegas has been one of the nation’s hottest housing markets for most of its history. As long as we are a better value and have a great quality of life compared to neighboring states, like California, we’ll continue to rank high on these lists.”

What is Goldman Sachs predicting for interest rates?

According to a recent report from CBS News, economists at Goldman Sachs are expecting the Federal Reserve to make a total of five rate cuts in 2024, with the first cut coming in March 2024.

The investment bank is expecting a ‘soft landing’ for the U.S. economy with modestly slowing growth and inflation to continue to cool off. They also expect the central bank to gradually ease rates and reduce borrowing costs for consumers and businesses.

Goldman Sachs economist Jan Hatzius wrote, “The Fed will start cutting the funds rate soon, most likely in March. After all, Chair Powell said at the December 13 press conference that the committee would want to cut ‘well before’ inflation falls to 2.”

Hatzius continued, “However, we expect ‘only’ five cuts this year, below the six-to-seven cuts now discounted in market pricing, and we view the chance of 50 basis points steps as low.”

While interest rates don’t directly influence mortgage rates, they do impact the bond market, and the bond market does have an effect on mortgage rates. If the Fed starts cutting, borrowers may find that mortgage rates continue to cool off, and greater opportunities to refinance existing mortgages.