Mortgage rates have come down 1% in the last few weeks, and the casual observers are hoping it means that the Big Turnaround will commence in the Spring of 2024.
But for a full-fledged frenzy to break out, home prices would have to drop too.
We’ll never learn much from the median sales prices by themselves. But the SP:LP ratios demonstrate the off-season trend of buyers driving harder bargains, which is the solution for lower prices too.
We’re probably not going to see the whole market drop in price (i.e., big dips in the median sales prices) because the superior properties should hold their value better with the impatient buyers.
But those who don’t need the perfect house will likely have better luck next year with getting a deal. We only flirted with an over-list frenzy briefly this year, and in 2024 we not see many, if any, 100% months.
The December sales count isn’t looking good. Only 17 sales closed so far this month between La Jolla and Carlsbad, an area of 300,000 people.
Palm Springs was cited as the best place to retire in California. The Coachella Valley consists of 9 incorporated cities, from Palm Springs in the west to Coachella in the east and excellent healthcare facilities. While overall taxes are high in the state, the natural beauty and weather of California is undeniable…..and many can afford it. (according to Travel & Leisure)
New homes for sale within 25 miles of Palm Springs:
https://cmps.re/YWyYKid
Of those 44 Palm Springs properties only three were “Palm Springs” to my tastes. And one of those is actually an artist’s rendition for an empty lot. The rest might as well be in Fontucky.
Three things about the spring season. Impaired properties are likely to do needed improvements. If rates decline, even a bit, prices don’t need to drop.
The rest might as well be in Fontucky.
Fontana might sound better than Texas/Florida/Tennessee to some!