Silicon Valley Real Estate Market April2024
The discussion regarding the Fed's expected benchmark rate cuts this year has markedly changed in recent weeks. From April 11 WSJ: "The latest data [regarding inflation] raises two different possibilities.
One is that the Fed's expectation that inflation continues to move lower but in an uneven and 'bumpy' fashion is still intact...In such a scenario, a delayed and slower pace of rate cuts is still possible this year.
A second possibility is that inflation...is getting stuck at a level closer to 3%. Without evidence that the economy is slowing more notably, that could scrap the case for cuts altogether."
That is a big change from the recent commonly held expectation of 3 cuts this year.
WSJ talks about another issue for existing owners, The Hidden Costs of Homeownership : "Rising insurance premiums, property taxes and maintenance costs show little sign of abating." Some regions prone to natural disasters are seeing stupendous increases in insurance premiums.
But virtually all markets have seen enormous home-price appreciation since 2019, with parallel effects on property taxes (except in CA where Prop 13 limits these for existing owners). And inflation has affected the costs of maintenance and repairs, and increased the real costs of buying and owning, and one big reason why the market is being more driven by more affluent home buyers now.
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Below are mortgage rates in 2023-now. And stats for the last 13 months in Santa Clara and San Mateo counties. Stats in other areas are available upon request.
Santa Clara County
last 13 months
Santa Mateo County
last 13 months
