Santa Cruz Housing Market Recovery #realestate #interestrates2024 #feder...

Anyone who has ever participated in the Santa Cruz homes for sale market will tell you that navigating can be difficult. And this is not limited to the Santa Cruz real estate market. Most projections for the real estate market in this country have proven to be wrong, and questions such as "Will house prices go down?" continue to bother even experts in this sector. Inside this Article: The Dawn of a Housing Recovery: Will Home Prices Go Down Soon? The Affordability Challenge in Santa Cruz: When Will House Prices Go Down? Santa Cruz Real Estate: Local Economic Trends Fueling the Market When the waves of uncertainty remain high and the winds of economic change blow, it is difficult to determine when it is safe to sell or buy a property. But, as your dedicated guide, I'm here to provide so you can make informed decisions. The Dawn of a Housing Recovery: Will Home Prices Go Down Soon? As 2024 draws to a close, the real estate industry is beginning to show signs of promise for the near future. Experts in real estate and economics have recently expressed optimism about the housing market's prospects in this country, suggesting that a recovery is imminent. The Fed has been primarily focused on containing runaway inflation for almost two years. To do that, they have been hiking interest rates, severely harming the creation of new jobs. However, they have started concentrating on supporting jobs lately. Borrowing became exceedingly expensive when interest rates were high. This raised mortgage rates to as high as 8% in October 2023. It was the highest rate in more than 20 years. The rates have been slowly declining, hovering around 7%, with 6.44% as of August 2024, even as the country grappled with the possibility of experiencing a recession. On September 18, the Federal Reserve reduced its benchmark interest rate by half a percentage point, representing the first decrease of this magnitude in over four years. Economists view this action as a substantial measure intended to maintain low inflation and foster full employment. This decision has sparked optimism regarding a potential recovery in the housing market. Real estate professionals, along with buyers and sellers, are enthusiastic about the possibilities, particularly given the current shortage of available homes in relation to high demand. This disparity was already present prior to the COVID-19 pandemic, which intensified housing demand, rendering the market nearly inaccessible as mortgage rates escalated from historic lows in 2020 to their highest levels in a generation last year. With population and job growth rising and cooling inflation, the Santa Cruz homes for sale market is poised for a considerable rebound. This is not just good news for potential buyers harboring questions such as "Will house prices ever go down?"—it's a chance for real change and fresh beginnings for everyone. But how soon will we start to reap the benefits? Full Article: https://www.burrowes.com/blog/when-will-the-housing-market-recover/