Monthly Vivante Review, 1st January, 2024.

There were three new listings in December; 9931 (1,915sf) is listed at $549,000, 9844  (1,485sf) at $424,000 and 98210 (1,485sf) at $425,000. As has been the case for a half year now, pendings and sales are non-existent. In addition, there are now fairly regular price reductions, three in December; 9844 by $15,000 (-3½%), 9025 by $20,000 (-3%) and 8742 by $25,000 (-3½%). Individual reasoning cannot be determined, but it’s likely that the 2024 fees and the uncertainty of when our repairs will be completed were strong influences. The 30 year mortgage rate is likely to drop through 6.5% soon, down from 7.8% at the end of October. Two years ago, of course, it was just over 3%, so there’s still considerable room for further falls. However, the gap is still discouraging sellers as they would, even now, have to refinance at double their current levels – I recently read that approximately 92% of US mortgages are currently funded at around 3%. Buyers too are hoping that rates fall further. Some leading economists are forecasting an increase in housing inventory in 2024 and therefore better opportunities for both sellers and buyers to act. Wages are in positive territory, coming in at +5.2% in November over last year, compared to inflation at an annual rate of 3.1%. The drop in inflation has been substantial since 2021 when it was at an annual rate of 7%. The economy is in good shape as we enter 2024. Happy new year!