How is the real estate market? It feels like it’s on the verge of changing. The financial markets shifted from deep pessimism to enthusiastic optimism influenced by changes in economic indicators like inflation and the Fed’s decision to pause benchmark rate increases. This led to a significant drop in mortgage rates in December, resulting in increased mortgage applications in recent weeks and a significant increase both in listings and buyer activity. There are still opportunities for buyers, but this window could be closing quickly. The Fed just announced that they plan several rate decreases next year. This, coupled with the perpetual lack of supply of homes in Marin, could mean upward pressures on prices and another sellers market as 2024 unfolds.