Welcome to the Monthly Market Report for November 2024. We want to give you the insights that you need to help confidently make the best decisions when buying and selling a home.
“We are your real estate advisors” – RRG
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Looking for the bottom line facts this month?
The Monthly Market Report for November 2024 provides a comprehensive analysis of the current state of the housing market, focusing on mortgage rates, job growth, inflation, and housing inventory trends.
Mortgage Rates Outlook
The report anticipates that mortgage rates will stabilize towards the end of November and into early December 2024. This stability is contingent on three primary factors: the performance of the labor market, the outcome of the presidential election, and potential inflationary pressures. The volatility observed in recent months is expected to lessen as these factors play out
Job Market Analysis
In October, the job market showed varied performance across sectors. Notable job losses were recorded in professional and business services, while significant gains were noted in leisure and hospitality. Overall, the labor market remains a critical component influencing economic conditions and mortgage rates.
Inflation Trends
Inflation remains above the Federal Reserve’s target rate, with the Core Personal Consumption Expenditures (PCE) Price Index reflecting ongoing inflationary pressures. The report highlights that inflation has not yet returned to desired levels, which could impact monetary policy and economic stability going forward
Housing Inventory and Sales
The report indicates a significant increase in housing inventory, with a 29.2% rise in homes available for sale compared to October 2023. This marks the highest inventory level since December 2019 and suggests that more homes are entering the market. As a result, total home sales are projected to rise in 2025, following a trend of increased inventory over the past year
Home Prices Forecast
Despite current challenges, home prices are expected to appreciate in 2025. The report cites various forecasts predicting price increases due to ongoing demand and limited supply from builders who are catching up rather than overbuilding.
Consumer Debt Concerns
Consumer debt levels remain high, with total debt balances reaching record levels. The composition of this debt includes mortgages, auto loans, credit cards, and student loans, indicating a complex financial landscape that could affect consumer behavior in the housing market.
Conclusion
Overall, the November 2024 Monthly Market Report presents a cautiously optimistic outlook for the housing market. While challenges such as inflation and high consumer debt persist, increasing inventory and projected stabilization of mortgage rates could lead to improved conditions for homebuyers in the coming year.
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Renting vs. Buying: The Net Worth Gap You Need To See
Trying to decide between renting or buying a home? One key factor that could help you choose is just how much homeownership can grow your net worth.
Every three years, the Federal Reserve Board shares a report called the Survey of Consumer Finances (SCF). It shows how much wealth homeowners and renters have – and the difference is significant.
On average, a homeowner’s net worth is nearly 40 times higher than a renter’s. Check out the graph below to see the difference for yourself:
Why Homeowner Wealth Is So High
In the previous version of that report, the average homeowner’s net worth was about $255,000, while the average renter’s was just $6,300. That’s still a big gap. But in the most recent update, the spread got even bigger as homeowner wealth grew even more (see graph below):
As the SCF report says:
“. . . the 2019-2022 growth in median net worth was the largest three-year increase over the history of the modern SCF, more than double the next-largest one on record.”
One big reason why homeowner wealth shot up is home equity.
Equity is the difference between your home’s value and what you owe on your mortgage. You gain equity by paying down your mortgage and when your home’s value goes up.
Over the past few years, home prices have gone up a lot. That’s because there weren’t enough available homes for all the people who wanted one. This supply-demand imbalance pushed home prices up – and that translated into faster equity gains and even more net worth for homeowners.
If you’re still torn between whether to rent or buy, here’s what you should know. While inventory has grown this year, in most places, there’s still not enough to go around. That’s why expert forecasts show prices are expected to go up again next year nationally. It’ll just be at a more moderate pace.
While that’s not the sky-high appreciation we saw during the pandemic, it still means potential equity gains for you if you buy now. As Ksenia Potapov, Economist at First American, explains:
“Despite the risk of volatility in the housing market, homeownership remains an important driver of wealth accumulation and the largest source of total wealth among most households.”
But prices and inventory are going to vary by area. So, lean on a local real estate agent. They’ll be able to give you the local trends and speak to the other financial and lifestyle benefits that come with owning a home. That crucial information will help you decide the best move for you right now. As Bankrate explains:
“Deciding between renting and buying a home isn’t just about cost — the decision also involves long-term financial strategies and personal circumstances. If you’re on the fence about which is right for you, it may be helpful to speak with a local real estate agent who knows your market well. An experienced agent can help you weigh your options and make a more informed decision.”
Bottom Line
If you’re not sure if you should rent or buy, keep in mind that if you can make the numbers work, owning a home can really grow your wealth over time.
And if homeownership feels out of reach, let’s connect so we can explore programs that may make buying possible.
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Download your Housing Market Update for November 2024 below 👇
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Here’s a few neighborhoods you might find your next home in…
Simi Valley CA, Moorpark CA, Thousand Oaks CA, Westlake Village CA, Agoura CA, Oak Park CA, Calabasas CA, Encino CA, Sherman Oaks CA, Tarzana CA, Woodland Hills CA, Camarillo CA, Oxnard
