Message From Our Founder
As a lifelong resident of San Clemente, there are many things to be grateful for looking back at 2023. At Inhabit Real Estate we believe in supporting the community we live, work, and play in as part of our 1Habit Community Fund. Last year, we participated in supporting the Mako Foundation, Boys and Girls Club, SCHS Educational Foundation, Exchange Club, and the Pet Project Foundation and anywhere else we could lend a hand or provide financial help. We thank you for your support in our business so we could make this possible.
Looking forward to the coming year, the real estate landscape in San Clemente is poised for a dynamic shift, influenced by a cooling economy, fluctuating interest rates, and evolving market trends. Let’s delve into the key factors shaping the outlook for 2024.
1. **Interest Rates:** Starting at 6.55%-7.0%, rates will likely dip to 6%-6.5% in summer, possibly dropping below 5% by year-end with a stabilizing U.S. economy.
2. **Inventory Challenges:** Beginning with under 1,700 homes, inventory peaks at 3,000 during summer. The “Hunkering Down” effect may ease, allowing more homes into the market.
3. **Demand Dynamics:** Buyer demand starts slow, but late spring and early summer see an upswing as rates decrease. Affordability improves, reminiscent of the vibrant market from 2020 to mid-2022, with multiple offers and bidding wars.
4. **Closed Sales Surge:** Expect a 12%-18% increase in closed sales compared to 2023, reaching around 23,000 as affordability improves and inventory grows.
5. **Home Values and Market Cycle:** Home values may rise 1%-4%. The market follows a typical cycle, with spring being the strongest, transitioning through summer, autumn, and the holiday season. Luxury housing may see increased volatility in the latter part of the year.
In conclusion, 2024 signifies a transitional period for San Clemente’s real estate. As the economy cools and interest rates adjust, heightened demand and increased inventory are expected, with the extent dependent on the timing of the broader economic slowdown. Monitoring economic indicators throughout the year is crucial. Thank you again for your continued support, we hope 2024 brings you and your family joy and prosperity.