Hungry Realtor Podcast - Market Update 3/14/2024

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March 2024 Real Estate Market Update:

Navigating Changes with Insight

Insights from Michael Severns

As the early buds of spring begin to show, the real estate market, much like the season, is experiencing its own form of rejuvenation and shift. This March, we're diving into the latest developments that are shaping the landscape for buyers, sellers, and real estate enthusiasts alike. From the labor market's unexpected turns to significant regulatory updates, here's everything you need to know to stay ahead in the ever-evolving world of real estate.

A Surprising Twist in the Labor Market

February saw a robust addition of 275,000 nonfarm payrolls, significantly outpacing the anticipated 198,000, suggesting stronger economic vitality than expected. However, this came alongside a slight uptick in the jobless rate to 3.9% and a modest wage increase of 0.1%.

Notably, the health care and government sectors emerged as major contributors to job growth. Despite these positive signs, layoffs are on the rise, especially in the tech and finance sectors, pointing to a period of adjustment and restructuring across industries. We have to look for the adjustment next month to verify that the optimistic report will last. The past few months the jobs report has been adjusted down a few weeks later.

The Pulse on Consumer Credit

In an interesting turn, U.S. consumers’ credit scores experienced a slight dip to an average of 717. This reversal from a decade-long trend may be indicative of the financial strains manifesting from high debt levels, rising interest rates, and an uptick in missed payments. A decline in savings further emphasizes the growing financial pressures facing consumers today. I know I am feeling the crunch at the grocery store trying to feed a family of five.

Shifting Sentiments in Housing Sales

The Fannie Mae Home Purchase Sentiment Index offers insights into the changing attitudes towards buying and selling homes. An increasing number of consumers now believe it’s a favorable time to sell, with positive sentiment rising to 65%. Conversely, buying sentiment remains subdued at 19%, shadowed by rising job loss fears. Yet, there's a silver lining as the overall index shows a year-over-year increase of 14.8%.

The Construction Sector’s Conundrum

While construction job openings slightly declined from December to January, the sector still shows significant year-over-year growth, highlighting a persistent skilled labor shortage. This comes at a time when single-family construction is showing signs of recovery, thanks to moderating mortgage rates and low existing inventory, offering a glimmer of hope for addressing the housing supply challenge. When Warren Buffet invests in something you better believe it will do well. It only makes sense that New Construction is in demand when pre-existing inventory is low.

Regulatory Moves to Watch

This March brings noteworthy regulatory updates aimed at streamlining processes and unlocking funding. Enhancements to Fannie Mae's automated underwriter system promise to simplify and expedite the lending process for homebuyers. Moreover, the release of unspent COVID-19 aid funds for housing projects marks a strategic move to bolster housing accessibility and affordability.

Federal Reserve’s Cautious Outlook

Federal Reserve Chair Jerome Powell's recent briefings to Congress revealed a cautious stance towards interest rate reductions. While there’s anticipation for rate cuts in 2024, Powell emphasizes a data-dependent approach, underscoring the Fed's commitment to ensuring sustainable progress on inflation before making any moves. My personal opinion is that we won't see cuts until either right before or right after the election.

Navigating March’s Market

As we march through these dynamic times, the real estate market in 2024 continues to be shaped by a mix of economic resilience, cautious optimism, and strategic regulatory interventions. For buyers, sellers, and investors, staying informed and adaptable is key to navigating the opportunities and challenges ahead.

Here are the LOCAL highlights for the week ending March 10, 2024:

Listings above last year for six consecutive weeks. The Bright MLS service area had 5,555 new listings for the week ending March 10. For the sixth week in a row, new listings have exceeded last year. Compared to last year, there has been a 4.1% increase in listings, and over the past week, there was a 2.5% uptick.
Mid-Atlantic median list price slightly below record high. Following last week’s record-high median list price of $419,000, the current median list price has dipped by 1.0%, now standing at $415,000. Notably, both last week and this week boast higher median list prices than any week in the previous year, with this week’s price exceeding last year’s by 4.0%.
Contracts just under last year. This week, there were 5,942 new purchase contracts, which is just below last year by 2.2%. Although supply has made modest gains compared to last year, there’s a notable factor at play: 30-year mortgage rates have recently edged back towards the 7% mark, currently sitting at 6.88% as of the week of March 10. Rates increasing is likely contributing to contracts not picking up as more homes are available than last year.

Whether you're considering entering the market or simply keeping an eye on trends, the current landscape offers valuable insights for making informed decisions. Stay tuned to the Hungry Realtor Podcast for more updates and expert analysis on the pulse of real estate.

There's always something happening in the world of real estate, and I'm here to guide you through it. For deeper insights, use the icons above to tune in to the Hungry Realtor Podcast (Season 2 Coming Soon!), and let's navigate these fascinating times together.

Keywords: seller's market, home buyers, real estate strategies, competitive offers, 2024 housing market, home buying tips, real estate trends, mortgage pre-approval, bidding wars, negotiation tactics, real estate agents.