Stay Up-To-Date on Industry Trends & Forecasts
Did You Know?
- “We have gone through very quick transitions over the course of the last couple of years. The world is a bit fragile right now. We are going through some big transitions. ” – David Solomon, Goldman Sachs
- Everything in society — housing, healthcare, the workplace, inflation and even the way urban planners design city streets — will be affected by the sheer volume of Americans turning 65 this year: more than 4.1 million people are expected to retire this year. (Marketwatch)
- Consumer sentiment surged 29% since November, the biggest 2-month increase since 1991. The pickup in sentiment was broad-based, spanning consumers of different age, income, education and geography. (University of Michigan)
Market Update
It is always interesting to look back at our monthly reports from a year ago, two years ago or three. In January 2023, interest rate hikes, volatility in the stock market and layoffs were the topics that month. Fortunately, this year, interest rates seem to have stabilized, if not lowered (yet) with the 30-year mortgage rate dropping from 7.79% to 6.61% over the last two months of the year. The stock market is on a tear with the S&P 500 logging in a 25% gain and the Nasdaq up 45% in 2023. And there seems to be more confidence in the economy with consumer sentiment, up 14% in December alone. While the numbers aren’t actually reflecting any great surge in the market, anecdotally we know that sellers appear ready to do more than just consider selling and buyers are out looking and writing offers. As the song says, spring feels like it could be “bursting out all over”.
The January Sonoma Valley market showed a decrease in both the median list price (-22%) and in the median sales price (-5%) year over year. However, we saw an increase in both the number of listings (up 22%) and the number of sales (up 13%). As we have noted in the past, this time of year is always a bit uncertain due to weather conditions that have an impact and sellers who want to wait for spring flowers to enhance the exterior appeal of their properties.
On an annual basis, the 2023 median home sales price was up slightly from 2022 – one of only two Bay Area counties with an annual year over year increase. As Freddie Mac reported, “Heading into the new year, the economy remains on firm ground with solid growth, a tight labor market, decelerating inflation and a nascent rebound in the housing market.”
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