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Week of October 30th - November 5th

Real Estate News

Home and market trends - near and far

Only 1% of existing U.S. homes changed hands in the first half of 2023, the lowest number in a decade. But is that about to change?

October 2023 saw active listings grow across the country by 5.1% month-over-month - the highest reported inventory growth for the month of October in at least 7 years. Continued inventory growth this late in the year could put downward pressure on pricing.

In Monterey County, inventory actually went down by around 3% in October 2023 and active inventory remains a bit less than half of what it was pre-Covid.

Generally speaking, housing markets where inventory is creeping back towards pre-pandemic levels experienced weaker home price growth over the past year while housing markets where inventory remains constrained have experienced stronger home price growth over the past year.

While real estate remains a local business, several macro trends have surfaced over the past couple of years that will continue to influence the number of available homes for sale. Fannie Mae, a leading source of mortgage financing, recently conducted a survey involving homeowners with a few notable findings:

An equal share (29%) of people with a mortgage (mortgage borrowers) and outright owners (homeowners without a mortgage) said that they do plan to stay in their home longer than originally intended.
While the lock-in effect (homeowners who already secured a low mortgage interest rate) remains significant for numerous consumers, various other factors contribute to the extended stay of mortgage borrowers and outright owners, adding complexity to the situation.
Enjoying their current homes and valuing proximity to family, friends, and workplaces plays a role in the housing shortage.
The increased time spent at home during the pandemic prompted substantial investments in home improvements and DIY projects.
With Baby Boomers accounting for 32% of homeowners, a significant 80% express a desire to age in place, which further impacts the limited housing supply.
Furthermore, the pandemic-induced low-rate environment accelerated home purchases, shifting sales that would have spread over multiple years.

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Jonathan Balog

DRE# 01980970
Broker
M: 831.747.0310
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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.

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