Housing Market Crash Actuality Examine: Put together For a WILD 2024!

Hey there, people! Right this moment, I need to discuss in regards to the housing market and provide you with a actuality verify. There’s been a number of speak about a housing market crash, however let’s take a better have a look at the information.

First off, let’s speak about residence costs. In line with current knowledge, the median sale worth of a house in October was $446,633, which is a 2.2% enhance from the earlier yr. Some folks would possibly see this as a housing market crash, however I do not suppose so. House costs are up yr over yr and month over month. Positive, I made an up to date prediction that residence costs would possibly fall through the winter resulting from seasonality and the next rate of interest setting, however that does not imply we’re heading for a crash.

Now, let’s speak about housing stock. Presently, there are 1.55 million properties listed on the market within the US, which is down by 8.7% in comparison with final yr. This implies there are fewer sellers out there. In the event you’re hoping for a housing market crash, this is not excellent news for you. A crash would require a surplus of sellers and a scarcity of consumers, resulting in a fireplace sale scenario. Proper now, we’re seeing the other – fewer sellers and fewer consumers resulting from greater costs and mortgage rates of interest.

Talking of rates of interest, the common on a 30-year mounted mortgage remains to be above 7%. This has led to a lower in residence gross sales, with transaction quantity down by greater than 30% since 2020 and 2021. Moreover, 31.7% of properties are promoting above listing worth, which remains to be elevated in comparison with pre-pandemic ranges.

With regards to migration, there’s nonetheless a number of outflow from states like California and New York, with Florida being the primary vacation spot. Nevertheless, migration to Texas is slowing down. Personally, I am excited about shifting down south as a result of these winters in Chicago are simply horrible!

Now, let’s speak about rates of interest. The Federal Reserve not too long ago indicated that they are achieved elevating rates of interest, inflicting rates of interest on authorities bonds to fall. Because of this, rates of interest on 30-year mounted mortgages started to fall as properly.

In conclusion, whereas there’s been a number of speak about a housing market crash, the truth is that we’re not heading for a crash. Sure, there are some challenges out there, however it’s not the doomsday state of affairs that some persons are predicting. So, when you’re out there to purchase or promote a house, it is vital to contemplate these elements and make knowledgeable choices.

Thanks for tuning in, and I am going to catch you within the subsequent one!