Despite inflation rising slightly more than expected at the end of last year, news headlines in 2024 so far have been mostly positive. Consumers begin to believe that overall price growth is slowing, while rates are stabilizing, and more homebuyers on the sidelines are coming back to the market. These are encouraging signs that could kick start the housing market in the new year and could help turn the market around. If the sentiment remains upbeat and the upward momentum continues, we could see a bounce back in market activity in the near term.
Locally, the Modesto housing market is very competitive. Homes in Modesto receive 2 offers on average and sell in around 15 days. The median sale price of a home in Modesto was $444K last month, up 11.0% since last year.
Inventory remains strong in the $300k-$800k range, with 143 homes available throughout the city (see chart above for further breakdown of housing availability by price). Months of Inventory now stands at 1.8, meaning that it would take nearly two months to sell all currently available homes if none were added.
Of note at this time is the availability of 14 homes under $300k including NINE condos, (four of which land under $200k).
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California Association of REALTORS® Market Minute update
Metrolist internal trends reports