Headlines Vs. Trendlines | Case-Shiller Report Notes More Activity In West Coast Markets

By RSIR Staff |

The S&P/Case-Shiller Home Price Index, released on March 26,  illustrates the inflection point in the real estate market. The bottom line is all 20 cities are continuing to see year-over-year increases, and the West Coast markets are picking up momentum. This data is as of January 2024, and we know this trend will only strengthen with the promise of lower mortgage rates ahead and a clear “buy then refi” strategy. Demand is building, supply has been shrinking, and so prices are rising. 

As evidenced by month-to-date Trendgraphix data (as of March 28, 2024) for King, Kitsap, Pierce, and Snohomish Counties, sales—particularly pending sales—continue to trend upwards. We’ve certainly seen an uptick in interest and traffic at our Realogics Sotheby’s International Realty open houses, with more and more buyers seriously entering the market and searching for their next home.

Likely, the benefit of rising home prices will far outweigh the temporary infliction of higher mortgage rates, and with increased buying power and demand in the coming quarters, we can expect more competition amongst buyers.  

“U.S. home prices continued their drive higher,” says Brian D. Luke, Head of Commodities, Real & Digital Assets at S&P Dow Jones Indices in the report. “Our National Composite rose by 6% in January, the fastest annual rate since 2022. Stronger gains came from our 10- and 20-City Composite indices, rising 7.4% and 6.6%, respectively. For the second consecutive month, all cities reported increases in annual prices, with San Diego surging 11.2%. On a seasonal adjusted basis, home prices have continued to break through previous all-time highs set last year.”

We’re optimistic about the new market cycle ahead and the spring sales season that has already kicked off.