Three weeks ago, we discussed the challenges facing Americans wanting to buy a new home in the U.S.
And while you might expect the pressure to ease up in 2024…
The reality is that the housing market is expected to remain challenging next year.
It comes down to three things.
High mortgage rates, steep home prices, and low inventory levels.
As of September 2023, the median sale price for an existing home in the U.S. was $394,300, marking three consecutive months of year-over-year price increases.
The Federal Reserve’s efforts to combat inflation contributed to the increase in mortgage rates, as lenders take cues from the central bank’s interest-rate-hiking spree.
The average 30-year mortgage rate currently stands at 8.01%, the highest in 20 years.
Still, it could climb higher because we expect the impact of the Fed’s anti-inflation efforts to persist into 2024, potentially keeping rates high and affecting housing affordability.
At current mortgage rates over 30 years, you’ll pay 2x the purchase price of your home.
And it could keep increasing because experts predict home prices will keep rising at about 3 to 4% monthly, potentially pricing more first-time buyers out of the market.
Putting that into perspective makes buying a home in the coming months pure insanity.
However, imagine being a cash buyer and never revisiting that “first of the month” club again. Or never worrying about the upside-down movement of mortgage rates….
You’d sleep better at night — with financial peace of mind — just like I’ve done over the last decade after committing 100% to mastering the art of trading.
At the end of the day, your raise at work (if you qualify) doesn’t even come close to out-pacing the cost of owning a home (or, worse, the increasing cost of everything).
You can play the victim and complain like everyone else in your neighborhood.
Or, you can take responsibility for your financial future and seek better investment opportunities to grow wealth outside the traditional money maze many are stuck in.
That’s where I can help.
Suppose you could use some guidance…
See how my approach can help you buy a new home over the next 18 months.