Happy 2024 from Hatch Realty Group!

Happy New Year! I can’t believe January is almost over. We at Hatch Realty Group are working hard at getting our systems and goals in place for the year with many positive changes in the works to better serve you. Despite a very depressed market last year with low sales production across the industry, I am happy to report that the real estate market kicked off 2024 with a dynamic start - likely due to projections that the U.S. Federal Reserve is expected to cut interest rates three times this year to as low as 4.7% before the end of the year!

Buyers waiting on the sidelines are now getting pre-approved which is evident in the uptick of new loan applications reported by Fannie Mae. Now that everyone knows “for sure” that rates are headed downward and that the worst is seemingly behind us, buyers are now trying to get a head start before the spring rush. That sounds like promising news given that according to the New York Times, existing-home sales fell to the lowest level in nearly 30 years. However, having more buyers and few homes on the market is terrible for affordability as that usually means median home prices will also be back on the rise.

With the exception of the very hard working few, most people in the banking and real estate industry saw steep declines in production. I’m just happy that we at Hatch Realty Group were able to stay afloat thanks to our loyal friends, families and clients as well as the significant spike in leases we signed last year.

Many of our would-be sellers opted to rent out their properties instead of selling. Last year we took on 20 new lease listings which served as a welcome addition to our business. Sellers were hesitant to sell during a down market and forego the low interest rates they were able to lock in during the pandemic. Knowing that rates are poised to get below the 5% range, I wouldn’t be surprised if these landlords decided to switch gears and sell once these leases are up and the market officially picks up again.

Throughout 2023 I noticed that homes on the market were from sellers who “have to sell” - probates, divorces, trust sales, relocations. In contrast, this early on in 2024, I am seeing more sellers in the “want to sell” category - those looking to upgrade or downgrade their current home with timing is not necessarily pressing, but they are eager to make a move.

DREAM FOR ALL:

In an effort to help communities of color and first generation homebuyers get their foot in the door CalHFA is launching a new grant program in March that would loan up to 20% downpayment assistance to those who meet the income criteria of no more than 120% of the Annual Median Income (API) of the county where they buy. This program is similar the previous grant launched last year where the interest-free loan is paid back when the home is sold or refinanced with equity sharing. The differences are that this year, there are income caps, borrowers are chosen by lottery and equity sharing is on a sliding scale of 15-20% depending on your income level. $250,000,000 in funds will be disbursed by lottery and will likely be used up quick! Borrowers are urged to apply now and be ready for when lottery is chosen in March. Predictions are that 25% of all applicants will be approved. Phase 1 of the Dream For All Program helped 2182 new homeowners purchase a home last year in 3 days before funds ran out. If you fall into this category and want to buy a home, click here to reach out to one of our preferred lenders who can take great care of you!

Wishing you and your families a year of health, love and prosperity!

Looking forward to seeing you in 2024. Stay tuned for some great events we have planned. Please feel free to reach out for all of your real estate needs! We’re happy to help!

Sincerely,

Monica Sagullo - Broker

Blog

Happy 2024 from Hatch Realty Group!

HATCH REALTY GROUP

Tell us what you think!

Your new home is waiting.