America’s housing problems are worse than we expected. New data shows that sales have plummeted to a 13-year low. Yikes!
Here’s Five Fast Facts About the Frozen Housing Market:
- 📉 Interesting Fact - According to the National Association of Realtors, home sales were down 15.4% in September, the lowest number sold in over 13 years. If you’re keeping track, that’s close to when the housing market collapsed in the ‘00s.
- 🏡 These people love it - The median home price is now $394,300, a 2.8% increase, making September the third consecutive month of year-over-year price increases. I don’t know about you, but I don’t have anything close to that lying around.
- 🏠 This is why some are not excited - There’s still a lack of homes for sale, with 1.13 million units available. That’s down 8.1% from 2022. Plus, mortgage rates just hit 8%. Basically there’s next to nothing to buy and what’s out there is too expensive.
- 🥶 Here’s how much it impacts your paycheck - No one wants to sell and move, either. More than 90% of homeowners have a mortgage rate of 6% or less. Buying a new place would lock them in at that nasty 8% rate, making them give up something good.
- 📊 What does this look like moving forward? - Those brave souls who are still willing to buy may have to worry about a bidding war. A shocking 26% of homes are selling for over the asking price.
🔥Bottom line: We’re now at the stage where buying a home is like entering the Hunger Games. Except there are no cool clothes and everyone loses. To make things worse, it looks like it’s only going to get worse, especially if the Fed raises rates again.
What do you think about these numbers?
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