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December 26 2024

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Reef Daily | December 26 2024

Housing Market Update

Latest Market Data (December 26, 2024) Small investors continue to play a significant role in the U.S. housing market, with investor activity showing a modest 2% increase in Q3 2024. Their market share currently hovers around 25% of total home sales.

Mortgage Rates

Current rates as of December 26, 2024:

Type Today’s Rate Last Week’s Rate
30-year fixed 7.01% 6.84%
15-year fixed 6.30% 6.12%
5/1 ARM 6.21% 6.22%

Mortgage rates have surged to a five-month high, with the 30-year fixed rate increasing by 7 basis points to 7.02%. The 15-year fixed rate added 6 basis points to reach 6.20%, while jumbo 30-year rates climbed to 6.94%.

Future Forecasts Following the Federal Reserve's recent meeting, mortgage rates are expected to remain elevated into 2025, with fewer rate cuts anticipated than previously expected.

Notable Transactions

Commercial Highlights Hollyhock Associates LLC sold 6 Hollyhock Road to JCVR Capital Partners LLC for $900,000.

Regional Activity In the Northeast, Wilton, Connecticut recorded two residential transactions:

  • 5 Great Rocks Place sold for $1,225,000
  • 38 Honey Hill Trail transferred for $775,000

Market Indicators

Inventory Trends Investor purchases have declined significantly, with monthly purchases averaging 85,000 in Q3 2024, down from 140,000 in Q3 2021.

Buyer Demographics Small investors, particularly those owning three to ten properties, are increasingly focusing on lower-priced and moderately priced homes, creating additional competition in the affordable housing segment.

Regional Developments

In the Northeast, the Hamptons luxury market continues to show strength with significant high-end transactions closing in December.

In the West, Seattle's housing market shows increased inventory levels, with total active listings up 21.18% compared to the previous year.

Sources

This newsletter is for informational purposes only and should not be considered as financial advice.

© 2024 Reef Insights. All rights reserved.

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