Janie and John's December Newsletter

Real Estate Insights

December 2023
A quick 3 minute read

Our Holiday Wish

Increasing Optimism

Just last month we discussed how the housing market varied substantially depending on location. Some places were hot while others were inconsistent. Looking ahead to 2024 we expected a slow ramp up in activity leading to a strong second half of the year.

What a difference a month can make! In the last 4-5 weeks interest rates have dropped ~0.5% (see chart above), which in itself is a cause for optimism. More impactfully though, the Fed once again held rates steady in their final meeting of 2023 and indicated that rate hikes are likely over. Furthermore, policymakers are predicting 3 interest rate cuts in 2024! The net result of this news is that the slow ramp up in housing activity may not be quite as slow as previously predicted.

What are the implications of this?

As counterintuitive as it may sound, buyers may want to increase their urgency in searching for a home. Assuming the housing market does heat up, any anticipated savings from waiting for rates to drop may be wiped out by home prices increasing. For those who have been reading our newsletters for 10+ years (and have an excellent memory!), you may recall that from September 2012 to September 2013 local median sale prices increased anywhere from 1% (Sunnyvale) to 32% (Belmont) with the average coming in at just over 12%. While such year-over-year appreciation levels are rare, the data shows that they are not unprecedented. I'm happy to forward on this old newsletter, BTW.

From a (flexible) seller's perspective, maximizing sale price may boil down to risk tolerance. While expectations for 2024 may be high right now, the last several years have thrown us plenty of curve balls. The more risk averse may wish to sell on the earlier side and lock in a solid sale price, while those with a higher risk tolerance may wish to hold on and hope that the current prognostications hold true!

As always, anytime you want to geek out discussing the housing market, we are here for you!

Featured Listings and Sales

Sold off market ~ Multiple Offers ~ rare original eichler

344 Northumberland Avenue, Redwood City

3 beds, 2 baths on a 5,959 square foot lot
Listed for $1,350,000

Sold ~ San Carlos charm

1801 Greenwood Avenue, San Carlos

2 beds, 1 bath main house PLUS 1 bed, 1 bath ADU
Listed for $1,798,000

Luxury Property Collection

Looking for a luxury property or even a brief escape from reality? Flip through our online magazine, Compass Curated, for some of the most exclusive listings in the United States.

Please feel free to forward this newsletter to friends and family - and remember, we are never too busy for your referrals!

Janie and John Barman

DRE #01270223 & #01281597
Realtors®
M: 650.759.1182
jbarman@compass.com

Compass is a real estate broker licensed by the State of California operating under multiple entities. License Numbers 01991628, 1527235, 1527365, 1356742, 1443761, 1997075, 1935359, 1961027, 1842987, 1869607, 1866771, 1527205, 1079009, 1272467. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.