What’s in The Shaker today:

• 💥 Bidding Wars Ignite in 2024

• 🙏 Easing Housing Shortage

• 💰 LA's Rich Flee Mansion Tax

• ✈️ Jet with Your Mansion, Anyone?

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Bidding Wars Ignite in 2024

As 2024 kicks off, the U.S. housing market is heating up with intense bidding wars, some listings receiving over 30 offers, driven by improved mortgage rates and a surge in buyer activity.

• Mortgage applications increased by 9.9% in early January, with purchase applications up 6%, as buyers capitalize on lower rates and a slight increase in inventory.

• Bidding wars are erupting in suburbs and cities with good job markets, particularly for houses in good condition and priced at or below the median point.

• Despite the uptick in competition, high mortgage rates may still curb overall demand, especially for first-time buyers, keeping the market volatile.

Easing Housing Shortage

The severe housing shortage in the U.S. is finally showing signs of easing, with the number of homes for sale increasing for the second consecutive month in December.

• Realtor.com reported a 4.9% rise in available homes for sale in December compared to the previous year, marking a positive shift in inventory levels.

• The South saw a notable surge in inventory by 7.7%, while the Midwest had a marginal increase, and the Northeast and West experienced declines.

• Despite this improvement, the overall housing supply remains 34.3% lower than pre-pandemic levels, keeping home prices high and options limited for buyers.

LA's Rich Flee Mansion Tax

Los Angeles' wealthiest are ditching their lavish mansions and relocating to more tax-friendly states, driven by the city's new "mansion tax" and the desire for more value for their money.

• Wealthy Californians are leaving due to high taxes, with the "mansion tax" in LA being a significant factor, imposing a 4-5.5% tax on homes above $5 million.

• They are moving to states like Nevada, Florida, and Texas, attracted by lower taxes and more space for their buck.

• The luxury real estate market in LA is experiencing a slowdown, with high interest rates and insurance costs, and the Hollywood strikes contributing to fewer home sales.

Jet with Your Mansion, Anyone?

A $5 million English estate, Durford Edge, comes with a unique feature: a free 46-foot decommissioned Harrier II jet plane, adding an unusual twist to luxury real estate.

• The six-bedroom, 8,000 sq ft property in Petersfield, England, includes the massive warplane as part of the sale, described by the owner as a "garden gnome."

• The current owner, Peter Robinson, a mathematician, bought the jet in 2015 and faced challenges transporting it to the property, including a panel falling off and blocking traffic.

• Robinson plans to include the Harrier II in the property sale, as moving it past the estate's gates would be nearly impossible.

How was today's shake?

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