by Lorraine Ryall
Associate Broker with KOR Properties
Supply and sales saw a slight dip last month, with days on market increasing by 19%. However, this is typical for December’s seasonal slowdown.
Looking ahead to January, there’s good news: under-contract counts are up, and we anticipate stronger sales compared to last year. Buyers are beginning to re-enter the market, even with mortgage rates remaining persistently high. As we approach spring, I’m optimistic we’ll see a strong market as many buyers who held back last year are likely to return. The key factor will be how much new inventory becomes available.
December pricing held unusually strong, with notable activity in the upscale luxury market. High-end homes are selling in healthy numbers and commanding higher prices, fueled by a buoyant stock market and elevated cryptocurrency values. These financial gains have left affluent buyers feeling more confident, driving increased demand in the luxury segment, particularly in the Northeast Valley.
Although 30-year fixed mortgage rates remain above 7%, the recent reversal of declining demand is a positive sign that we may have turned a corner. The coming months will hinge on how much additional supply enters the market, which will ultimately shape market dynamics moving forward.