Silicon Valley Real Estate Market January 2024

January last year, the mortgage rate was at 6.27%. It slowly went up and reached its peak at 8% in October, before dropping to 6.83% in December. Rates are forecasted to drop to close to 6% by Spring time. Mortgage applications have seen a 9% increase in the 1st week of January.

Looking ahead, the California Association of Realtors (CAR) forecasts an increase of 23% in single-family home sales this year compared to last year. The median home price is also projected to climb by 6.2% to $860,300 in 2024, compared to $810,000 in 2023 and $822,300 in 2022. Despite these changes, housing affordability is expected to remain flat at 17% in 2024, the same as in 2023.

There is a notable pent-up demand in the housing market, and the increase in mortgage applications indicates this. It's worth noting that every 1% drop in mortgage rates means 5 million more buyers can qualify to enter the market. As rates decrease and if inventory remains low, the competition is expected to intensify even further.If you have any questions or need real estate resources, I am happy to help. Don't hesitate to contact me.My goal is to bring genuine care, outstanding real estate services, and significant value, in order to positively impact our communities and clients.

Below are stats for the last 13 months in Santa Clara and San Mateo counties. Stats in other areas are available upon request.