Market Update Feb. 23, 2024 - Meg Tierney
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Market Update Feb. 23, 2024

February 23, 2024

Interest rates: Weekly and Daily averages from sources that use different methodologies, but show the same trends.

Stock markets had another very big day yesterday. The change in stock markets has had an enormous effect on household wealth in the Bay Area – especially among more affluent buyers – who seem to be jumping back into the market in greater numbers than buyers in lower price segments.

Nationally, per NAR, the percentage of all-cash sales hit 9+ year high. Besides investors, who often pay cash, 40% of homeowners own their homes free and clear – when they sell, they have plenty of cash to buy. And long-term owners who still have mortgages have generally accumulated a lot of equity. Then there’s the new stock market wealth, and, of course, the very affluent.

The next 2 data charts illustrate short-term seasonal market trends, September to Present:

Bay Area Sales Price Seasonality by Month: Median sales prices typically peak in spring for 2 reasons: The scale of demand outpacing the number of new listings coming on market – buyer competition is the main factor behind price increases – and because luxury home sales usually increase as a percentage of sales in spring. The luxury home market is even more fiercely seasonal than the general market.