HYDE REPORT 2024

April 2024 vol. 4

The Hyde Report features up to the minute real estate news & trends along with articles designed to help improve your real estate IQ. 

This month my feature videos are: “Tax Tips for Homeowners” and “Naturally Clean: DIY Recipes for a Home that Smells Amazing.” These segments are designed not just to inform but to enrich your homeowner experience.

My highlight article for this edition is: “2024 Market Predictions: Will Home Prices Come Down?” Gain insights into the future of real estate and make informed decisions for your investment journey. 

Real Estate News

As we delve into the unfolding dynamics of the 2024 real estate market, there’s a sense of gratitude amidst the challenges. Despite facing considerable hurdles such as steep interest rates, limited residential inventory, and declining sales figures, the year holds promise. Surprisingly resilient, 2024 emerges with potential, laying a sturdy foundation for the months ahead. Reflecting on recent developments, there are reasons to remain optimistic. Despite initial concerns, inflation has stabilized, and home prices have shown a steady uptick. 

In the realm of real estate, prices serve as a barometer, providing insights into our economic landscape. Elevated values not only bolster net worth but also enhance borrowing capacity, presenting homeowners with a sense of pride and accomplishment. However, to truly grasp the trajectory of the market, it’s essential to adopt a broader perspective, considering the trends over the past few years. This panoramic view offers a more nuanced understanding of the underlying dynamics driving the real estate landscape.

Taking a closer look at the trajectory of home prices, data from the National Association of Realtors reveals a striking pattern of growth. Over the past few years, existing home prices have witnessed a remarkable ascent, surging by 9% in 2019, followed by substantial increases of 12.9% in 2020, and a notable 15.4% in 2021. While 2022 saw a somewhat moderated rise at 10.22%, the trend remains robust.

However, the implications of this upward trajectory are profound, particularly in the context of affordability. The challenges witnessed in 2023 are anticipated to intensify throughout 2024, primarily due to the correlation between escalating prices and the resultant impact on monthly payments. Notably, incomes have failed to keep pace with the soaring costs, exacerbating the affordability crisis.

A poignant observation by Redfin in October underscores the gravity of the situation: “A homebuyer must now earn $114,627 to afford the median-priced U.S. home.” This figure marks a staggering 15% increase from the previous year and reflects a remarkable surge of over 50% since the onset of the pandemic. Such unprecedented figures underscore the magnitude of the affordability crisis, reaching unprecedented levels in recent memory.

The landscape of both the economy and real estate continues to be shaped by the enduring battle against Covid-19 and the subsequent inflationary pressures it has unleashed. Against this backdrop, real estate prices have soared, propelled by a confluence of factors. Buyers, buoyed by historically low mortgage rates, have seized the opportunity to capitalize on rising prices, facilitated by accessible financing options. The paradigm shift towards remote work has further fueled this trend, as individuals seek refuge from the uncertainties posed by the virus, gravitating towards the safety and comfort of home ownership.

A pivotal moment in this narrative unfolded in January 2021, when mortgage rates plummeted to an unprecedented low of 2.65%, marking an all-time nadir. Concurrently, a dearth of available inventory coupled with heightened demand precipitated frequent bidding wars within the residential market, underscoring the fervor gripping the real estate landscape.

While the Federal Reserve does not directly dictate mortgage rates, its policy decisions exert a profound influence on the trajectory of interest rates. Over the past months, the Federal Reserve’s eleven successive adjustments have propelled the federal funds rate from a meager 0.25% to a significant 5.5%. This pivotal shift has reverberated throughout the mortgage market, exerting upward pressure on mortgage rates.

Illustrating this correlation, data from Freddie Mac reveals a notable uptick in mortgage rates, climbing from 4.67% in March 2022 to a substantial 8.44% by January. This escalation underscores the intricate interplay between macroeconomic policies and the dynamics of the real estate market, shaping the experiences of buyers and sellers alike amidst the prevailing economic climate.

APRIL HOLDS A WEALTH OF HISTORY AND JOYOUS CELEBRATIONS 

 

TAX TIPS FOR HOMEOWNERS

Owning a home isn’t just about having a place to call your own; it’s a journey towards financial empowerment and security. Unlike renting, where your payments seem to vanish into thin air, homeownership opens the door to a realm of benefits, with tax advantages leading the way. As you bask in the pride of building equity and revel in the freedom of personalizing your space, don’t overlook the significant perks that come at tax time. Before the next tax season sneaks up on you, let’s delve into the world of homeownership tax benefits and uncover how you can maximize your returns while solidifying your path to financial prosperity.

"Naturally Clean: DIY Recipes for a Home that Smells Amazing"

Check out the world of sweet-smelling cleanliness with my video on homemade cleaners powered by essential oils!

 If you’ve ever felt overwhelmed by the harsh chemicals lurking in traditional cleaning products, fret no more. Here is a natural, effective alternative that not only leaves your home sparkling but also fills it with delightful aromas.

2024 Market Predictions: Will Home Prices Drop?

Before delving into the trends, it’s important to say that general market dynamics impact individuals differently based on their personal situations and needs. Therefore, don’t hesitate to reach out to me for personalized recommendations tailored to your specific circumstances. 

With home values and interest rates still being relatively high, both buyers and sellers are wondering what’s going to happen to the market in 2024. Typically, home values increase when demand is high and supply is low. Conversely, prices tend to decrease when the housing supply is high and demand is relatively low. So, what will the conditions look like this year? Let’s look at the latest market trends.

What is the Market Currently Like? 

Today’s housing market is characterized by high prices, high interest rates, and low supply. While high prices are typically driven by strong demand, the current demand is somewhat normal. Inventory is still low, however, which allows sellers to retain higher prices. Since interest rates and home prices are high at the same time, many potential buyers are finding it difficult to afford a purchase. 

Will Interest Rates Drop? 

The Federal Reserve has steadily hiked interest rates since March 2022 in order to slow inflation. Interest rates held steady from July through December 2023, with mortgage rates dropping slightly, but what can we expect in 2024? 

As inflation has improved in recent months and is projected to continue falling in the year ahead, the Federal Reserve has signaled that we could see several rates cuts in 2024. There is still a possibility of rate hikes, depending on inflation and other economic factors, but so far, the outlook is hopeful. Lower rates would make it more affordable to buy a home. 

Will Home Prices Drop?

While home value appreciation is expected to slow down, it’s not yet clear if home prices will decrease. Given recent trends, some areas may experience a price increase of around 3-4%, while others may see a drop of 1-2%. Prices are directly connected to housing inventory. Unless there is a considerable increase in inventory, home values will remain high. 

Will Inventory Improve?

The number of homes on the market is still relatively low and is showing a declining trend compared to the same time last year. To reach a balanced market, around 5 to 6 months of supply needs to be available at a given time. The current inventory is only enough for a 3.4-month supply. It’s believed that inventory levels will improve somewhat in 2024, which could help with home prices. However, it is likely that new home construction will not reach healthy levels until 2025. 

All the above indicate that home prices are unlikely to drop significantly in 2024. Until we see any significant changes to interest rates, inventory levels, or home prices, it will remain mostly a seller’s market. The market can change quickly though, so if you’re ever curious about our local conditions or want to discuss how the latest market trends may affect you, reach out anytime. 

I wish to extend my sincerest gratitude to each and every one of you for taking the time to explore the April 2024 Hyde Report!

Your support and engagement mean the world to me. 

Remember, whether you’re a seasoned investor or a first-time homebuyer, your real estate aspirations are within reach.

And finally I would like to leave you with my inspirational quote of the month, in the wise words of Nelson Mandela, 

“The greatest glory in living lies not in never falling, but in rising every time we fall.”

May your ventures be prosperous, your homes be filled with joy, and your dreams be ever within reach.

Warm regards, 🌟
Lamont Hyde

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I met Mr Hyde in 2017 while searching for someone to help my sister in law who was in a financially challenging position
I was referred to Lamont Hyde from a neighbor of mine who had used him to purchase her home a few years back. My mother had past away a few months
My wife & I never thought we could afford to own our home. We were currently living with my mother since being married 8 years ago.
Lamont Hyde Broker / Owner of THG Realty & Loans

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