Navigating Interest Rates, Prices, and Inventory in 2024

Jason Pacheco • January 4, 2024

I'm hearing that interest rates are expected to come down, possibly landing in the high 5s or low 6s.

The assumption might be that as rates decrease, monthly payments would follow suit. However, it's important to note that purchase prices also play a significant role in determining monthly payments.

Are prices projected to decrease? No.

So, what influences purchase prices?

The answer lies in the dynamics of supply and demand.

As interest rates drop, the demand for houses tends to rise. When there's high demand for a particular item, competition intensifies, leading to price increases if the supply isn't sufficient to meet the demand.

Let's look at the current inventory as of January 4, 2024:

  • Single Family Homes: 787
  • Multi-Family Homes: 177
  • Condos: 200

These figures highlight a glaring lack of inventory, and it's essential to recognize that the current inventory isn't robust enough to support the anticipated decrease in interest rates. This situation may result in prices escalating further throughout the year.

What does this mean for your individual housing situation?

I encourage you to reach out, and let's schedule a discussion. Here's to a successful housing journey in 2024! Cheers.


Jason Pacheco

Jason.Pacheco@CBrealty.com

401-808-0673

Pacheco Homes Team

Coldwell Banker Realty

Broker Associate // Team Leader


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