Market Connection: December 2023 Market Outlook and Report

Pam Dela Cruz • Dec 12, 2023

Are the Top 3 Housing Market Questions on Your Mind?

When it comes to what’s happening in the housing market, there’s a lot of confusion going around right now. You may hear one thing in conversation with your friends, see something totally different on the news, and read something on social media that contradicts both of those thoughts. And, if you’re thinking about making a move, that can leave you with a lot of lingering questions. That’s where a trusted local real estate agent comes in.

Here are the top 3 questions people are asking about today’s housing market, and the data to help answer them.

1. What’s Next for Mortgage Rates?


Mortgage rates are higher than they’ve been in recent years. And, if you’re looking to buy a home, that impacts how much you can afford. That’s why so many buyers want to know what’s ahead for mortgage rates. The answer to that question is: no one can say for certain, but here’s what we know based on historical trends.


There’s a long-standing relationship between mortgage rates and inflation. Basically, when inflation is high, mortgage rates tend to follow suit. Over the past year, inflation was up, so mortgage rates were as well. But inflation is easing now. And this is why the Federal Reserve has recently paused their federal funds rate hikes, which means many experts believe mortgage rates will begin to come down.


And in some ways, we’ve started to see hints of slightly lower mortgage rates in recent weeks. But it’s certainly been volatile and will likely continue to be that way going into next year. Some ongoing variation is to be expected, but the anticipation is, that in 2024, we’ll see a downward trend. As Aziz Sunderji, Strategist at Home Economics, says:

2. Where Are Home Prices Headed?


While there’s been a lot of concern prices would come crashing down this year, data shows that didn’t happen. In fact, home prices are rising in most of the nation. Experts say that trend will continue, just at a slower pace that’s much more normal for the housing market – and that’s a good thing.


To help show just how confident experts are in this continued appreciation, take a look at the Home Price Expectation Survey from Pulsenomics. It’s a survey of a national panel of over 100 economists, real estate experts, and investment and market strategists. As the graph below shows, the consensus is, that prices will keep climbing next year, and in the years to come.

3. Is a Recession Around the Corner?


While recession talk has been a common thing over the past few years, there’s good news on that front.


The Wall Street Journal (WSJ) polls experts on this topic regularly. And last year at this time, most of them thought a recession would have happened by now. But as experts look at all the leading indicators today, they’re changing their minds and saying a recession is getting less and less likely. The latest results show that more experts now think we’re not headed for another recession (see chart below):

This is big news for the housing market. And while the 48% to 52% split may seem close to half and half, the key thing to focus on is that the majority of these experts think we’ve avoided a recession.

MY TAKE

Caroline's take on the latest market trends

Despite the current uncertainties, remember that the housing market is cyclical and long-term trends remain positive. Burlingame's desirable location, strong job market, and limited inventory continue to support property values.


For sellers, this is a time to strategize with your agent. Preparing your home for sale and pricing it competitively will be key to attracting buyers in a shifting market.


For buyers, patience and a clear understanding of your financial goals are essential. While you may need to adjust your expectations slightly, opportunities exist for those who are prepared and proactive.


Don't let fear dictate your decision-making. Contact us today to discuss your specific situation and develop a personalized strategy to achieve your real estate goals.

Market Report December 2023

Here's the latest December 2023 Market Update showing year-over-year data. The data includes all Single-family homes and condos & Townhomes in the California Area sourced from MLS Listings for the period from November 2022 thru November 2023. This may include preliminary data and may vary from the time this data was gathered. All data is deemed reliable but not guaranteed. Content from this article is courtesy of Keeping Current Matters.

FOR NEWS INQUIRIES

Kyle Henry

Director of Marketing


Kyle.H@CarolineHuo.com

650.727.1308

Win San Mateo County Fair Tickets & Ride Wristbands

San Mateo County Fair Giveaway

By Kyle Henry • 08 May, 2024
The San Mateo County Fair returns with exciting attractions and family fun. We're giving away tickets and ride wristbands for a chance to experience it all. Enter to win by May 29th.
Mother's Day gift ideas with a luxurious touch: spa products, jewelry box, and a gift bag.

Spoil Mom in Style: 2024 Mother's Day Gift Guide

By Kyle Henry • 07 May, 2024
Say goodbye to generic Mother's Day gifts and hello to extraordinary experiences and lavish indulgence! This year, make the special woman in your life feel like the queen she is. Our curated guide is overflowing with luxurious gift ideas guaranteed to make her heart sing. From rejuvenating spa days at renowned resorts to cutting-edge smart jewelry that blends style and health tracking, we've got you covered. Elevate her Mother's Day with gourmet dining experiences in Michelin-starred restaurants or whisk her away for a weekend getaway at a picturesque vineyard estate. Discover unique and thoughtful presents that reflect your love and appreciation. #MothersDay #LuxuryGifts #GiftGuide #Pamper #Wellness #Getaways
Bay Area home selling workshop - learn pricing, market trends, and buyer prep

Seller Workshop

By Kyle Henry • 01 May, 2024
Selling your Bay Area home can feel daunting, especially in today's market. But it doesn't have to be! Join our workshop in San Mateo and get the step-by-step plan for a smooth, profitable sale. We'll cover: Decoding Market Trends: Should you sell now or wait? We'll analyze Bay Area patterns to guide your decision. Prep that Pays Off: Learn the essential fixes and upgrades that attract top-dollar offers (and what to skip!) Stress-Free Decluttering: We'll share proven methods and resources to tackle even the most cluttered spaces. Pricing for Success: Discover the strategies to set the right price and spark buyer interest. This isn't just theory – get answers to your specific questions!

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Earth Day, sustainability, native plants, and environmental action.

Sustainable Steps: Making Everyday Earth Day

By Kyle Henry • 23 Apr, 2024
Earth Day is a reminder that small changes add up to big impacts. Reduce your footprint, conserve precious resources, and advocate for policies that protect our planet. This year, let's commit to making a difference, not just on Earth Day, but every day. Get inspired with practical tips and solutions to make your lifestyle more sustainable. #EarthDay #EveryDayCounts #TakeAction
Legacy Planning Workshop

Legacy Planning Workshop

By Kyle Henry • 01 Apr, 2024
Get advanced guidance to plan your family's legacy when it comes to strategic planning, investments, and real estate management for both their residential and investment properties.

Proposition 19: Understanding California's Property Tax Changes for Homeowners

By Kyle Henry • 19 Mar, 2024
Thinking about downsizing or relocating within California? Proposition 19, passed in November 2020 but only recently going into effect, might be a game-changer for your property taxes. But with any major change, understanding the ins and outs is crucial. This blog post will unpack Prop 19, its history, how it impacts you, and where to find more information. Prop 19: Balancing Fairness and Flexibility California's property tax system, fueled by Proposition 13, has been a double-edged sword. While offering tax relief to long-time homeowners, it could make moving or downsizing a financial burden. Prop 19 emerged from the desire for a fairer system, particularly for seniors, families, and those facing disaster. Previously, Proposition 13 allowed homeowners to transfer their lower tax base (think of it as a property tax shield) only to a new primary residence of similar value within the same county. Prop. 19 loosens these restrictions, allowing you to transfer your tax base to a new home anywhere in California, regardless of its value. Who Qualifies for Prop 19 Benefits? To qualify for the Prop 19 property tax benefits, you must be over 55 years old age, disabled, or be a victim of a natural disaster. Parents or grandparents can pass along their primary residence and its property tax basis to their children or grandchildren. Yet, beware that there are restrictions under Prop 19. What Situations Does Prop 19 help? This new law offers more flexibility for several homeowner situations: Thinking of Downsizing? Prop 19 can make that cozy condo you've been eyeing a more realistic option. You can take your lower tax base with you, even if the condo is less expensive than your current home. Moving Across the State? Family ties pulling you south? Prop 19 lets you keep your cherished tax benefit as you relocate to be closer to loved ones, anywhere in California. Disaster Relief: If your primary residence suffers major damage from a disaster, Prop 19 allows you to transfer your tax base to a replacement property. Gift real estate : By gifting your children or grandchildren with property, your loved ones will benefit from lower property taxes if they use the home as a primary residence within one year of the transfer, and there are other benefits, too! Is Prop 19 All Sunshine and Rainbows? While Prop 19 offers advantages, it's important to consider potential drawbacks: Rising Property Values. While Prop 19 provides for some tax relief, it is capped at $1,000,000. So if the home value is assessed at greater than that, yo will pay more in taxes but only on the additional portion. Additionally, if you transfer your tax base to a location with significantly higher property values, you may see a future increase in property taxes. Last, Prop 19 also eliminates all currently available Prop. 13 and Prop. 58 benefits on the transfer of non-primary residences (with some exception for agricultural property) to children. Where to learn more? Prop 19 offers exciting possibilities for many California homeowners. To make informed decisions, consider these resources: Your Local County Assessor's Office : A wealth of information is often available online. California State Board of Equalization : They offer a comprehensive resource on property taxes. Remember, consulting a tax professional is highly recommended for personalized advice regarding your specific situation and Prop. 19. By understanding Prop. 19, you can unlock its potential benefits and navigate California's evolving property tax landscape with confidence. Happy house hunting!

Market Connection: March 2024 Market Outlook and Report

By Kyle Henry • 19 Mar, 2024
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An Evening of Giving Back: Celebrating 50 Years of Samaritan House

By Kyle Henry • 19 Mar, 2024
Last Friday, we had the distinct honor of being a sponsor for Samaritan House's 50th Anniversary Gala, "Cheers to Fifty Years!" It was an unforgettable evening filled with heartwarming stories, inspiring speeches, and a genuine sense of community spirit. Samaritan House is a vital organization in our community, and their dedication to empowering individuals and families in need is truly remarkable. For five decades, they've provided critical services that promote self-sufficiency and preserve dignity, including shelter, childcare, education, and job training programs San Mateo Samaritan House . Their impact on countless lives is undeniable. The gala itself was a magnificent affair with excitement as guests donned their finest attire for a night of celebration and philanthropy. The program kicked off with a moving video showcasing Samaritan House's history and the profound impact they've had. We heard from former clients who shared their stories of overcoming hardship and achieving self-sufficiency thanks to Samaritan House's unwavering support. Following the video, there were inspiring speeches from community leaders and Samaritan House representatives. They passionately emphasized the organization's mission and the importance of continued support to empower future generations. The highlight of the evening was undoubtedly the live auction. Guests enthusiastically bid on an array of unique experiences and luxurious items. The proceeds from the auction will directly benefit Samaritan House's vital programs, ensuring they can continue their life-changing work. Of course, no gala is complete without delicious food and toe-tapping music! We were treated to a gourmet dinner and danced the night away to a fantastic live band. Why Samaritan House? Being a sponsor of Samaritan House's 50th Anniversary Gala was more than just attending a fancy event. It was an opportunity to be part of something truly special and contribute to a cause that deeply resonates with us. We are incredibly humbled to support such a remarkable organization, and we look forward to seeing the positive impact they continue to make in the years to come. If you're looking for a way to make a difference in your community, we highly encourage you to learn more about Samaritan House and their mission. Visit San Mateo Samaritan House's website to get involved or make a financial contribution. Every action to support this incredible organization, big or small, has the power to change lives. It was also eye-opening to see how efficient this organization is at stretching resources.

Real Estate Investor Workshop

By Kyle Henry • 07 Mar, 2024
Are you thinking about investing in real estate but do not know how to start or what to ask? Join our Investor Workshop on Wednesday, March 27, 2024, from 5:30 p.m. to 6:30 p.m where we'll equip you with advanced insights and strategies to help you gain a competitive edge. Whether you're a seasoned investor or just starting out, you'll walk away with valuable knowledge and practical skills to unlock your full potential in the real estate market. Two ways to join! In person at the San Mateo Public Library (Laurel Room) or wherever you are by Zoom ! Top 5 reasons you should invest in real estate: Cash flow: Owning rental properties can provide a steady stream of income. This can be a valuable source of passive income, supplementing your salary or funding your retirement. Appreciation: Historically, real estate values have generally increased over time. While there is always the possibility of a downturn in the market, owning real estate can offer the potential for long-term capital gains, especially if you hold the property for an extended period. Tangible asset: Unlike stocks or bonds, real estate is a physical asset that you can see and touch. This tangibility can provide a sense of security and stability for some investors. Hedge against inflation: Real estate can act as a hedge against inflation, as rental income and property values can rise alongside inflation. This can help to protect your investment from the purchasing power erosion caused by inflation. Tax benefits: Real estate ownership comes with certain tax advantages, such as deductions for mortgage interest, property taxes, and depreciation. These deductions can help to reduce your taxable income. Here's a glimpse of what you can expect to learn: Fundamental Real Estate Investment Principles. Understanding the foundational concepts of real estate investment, including key terminology, market dynamics, and the various types of real estate assets. Why invest in Real Estate. Take a deeper dive into the Top 5 Reasons on how investing in real estate is a key part of building wealth and how you can jump in. Investment Vehicles . Investing out-of-state, Single-family residence house hacking and multi-family residence house hacking are our top three choices for beginner investors. Market Analysis and Financial Modeling. Learning how to conduct thorough market research to identify profitable investment opportunities, and analyzing economic indicators, and ensure positive cash-on-cash return. Building Your Core 4 Investment Team. Any investor needs a bench of support, from property management and handymen, to stagers and attorneys. We have vetted resources available to help you no matter where you invest. Financing. Speak with two expert lenders (and real estate investors themselves!) to understand the ins and outs of financing real estate investments. Now What? A simple trust is not enough. Once you have your investments, it's crucial you create a plan to leverage them to build your legacy and create generational wealth. Q&A Session with Real Estate Experts: Engage with our panel of experienced real estate professionals. Get answers to your specific questions and gain personalized advice to address any concerns or uncertainties you may have. Meet your expert presenters:
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