2023 Market Recap

With 2024 starting, I reflect on the past year and I want to express my heartfelt gratitude to have had the opportunity to work with some of you, your friendship and support.

2023 has been a rollercoaster ride filled with both triumphs and challenges for me. But through it all, my family, friends and community have been a steady anchor, providing me with the love, laughter, and support that I needed to navigate through life’s ups and downs.

This past year has also been a remarkable one in the real estate. We have navigated through the ever-changing real estate landscape, adapting and evolving with resilience and determination.

While San Francisco Bay Area remains a highly desirable place to live, enjoy, work and invest, several factors such as: Rising mortgage rates, Inventory Shortage and Inflation have contributed to a slowdown in the market and increased uncertainty for buyers and sellers alike.

Despite the recent challenges faced by the California real estate market in 2023, there are several reasons to be optimistic about the market’s prospects in 2024:

Easing Mortgage Rates: While mortgage rates have increased significantly in 2023, there are indications that they may decline in 2024. (We saw slight drop in the first 2 weeks of the January). This could make homeownership more affordable for many Californians who have been priced out of the market in recent months and provide an opportunity for those who are locked in higher rates to refinance.
Increasing Inventory: The inventory of homes for sale is expected to gradually increase in 2024. This is due to several factors, including an increase in new construction, homeowners feeling more comfortable selling their properties, and potential sellers adjusting their expectations in response to the changing market conditions.
Strong Economic Fundamentals: California’s economy is expected to remain strong in 2024, driven by factors such as a diversified job market, innovation, and a growing population. This economic strength is likely to continue to support demand for housing in the state.
Resilient Demand: Despite the challenges of 2023, there is still a strong underlying demand for housing in California. The state’s desirable climate, diverse economy, and cultural attractions continues to attract residents and businesses, and this demand is likely to persist in the years to come.

While the market is expected to remain dynamic and may experience some fluctuations, the overall outlook for California real estate in 2024 suggests a potential for stabilization and recovery. Those who are prepared to navigate the changing market conditions and have a long-term perspective may find favorable opportunities in 2024.

I am filled with optimism and excitement for the opportunities that lie ahead and I am committed to providing you with the exceptional service that you deserve.

With warmest regards,

Shirin