Can skyrocketing home prices and climbing interest rates really bring more opportunities to aspiring homeowners? Join us as we grapple with the latest housing market figures, including a striking 9% rise in mortgage applications and a new all-time high median home price of $393,627. Discover how increased listings and rapid sales are reshaping the landscape for buyers and sellers alike. We decode these trends to help you understand what they mean for you.
This episode also takes a hard look at the broader economic environment, focusing on the recent surge in the Consumer Price Index and what it means for your wallet. With inflation pressures mounting from higher energy prices and supply chain issues, we'll explore practical financial strategies to navigate these challenges. Plus, we speculate on the potential impact of a predicted Fed rate cut in September and its implications for real estate affordability. Tune in to find out whether now is the optimal time to buy a home, even with high interest rates on the table.
This episode is brought to you by Premier Ridge Capital.
Sign Up for our Newsletter and get our FREE E-Book where you'll learn everything you need to know about creating financial freedom through multifamily syndication.
This episode is brought to you by Premier Ridge Capital. Build Generational Wealth As A Passive Investor In Multifamily Real Estate Syndication! Visit www.premierridgecapital.com to find out more.
Can skyrocketing home prices and climbing interest rates really bring more opportunities to aspiring homeowners? Join us as we grapple with the latest housing market figures, including a striking 9% rise in mortgage applications and a new all-time high median home price of $393,627. Discover how increased listings and rapid sales are reshaping the landscape for buyers and sellers alike. We decode these trends to help you understand what they mean for you.
This episode also takes a hard look at the broader economic environment, focusing on the recent surge in the Consumer Price Index and what it means for your wallet. With inflation pressures mounting from higher energy prices and supply chain issues, we'll explore practical financial strategies to navigate these challenges. Plus, we speculate on the potential impact of a predicted Fed rate cut in September and its implications for real estate affordability. Tune in to find out whether now is the optimal time to buy a home, even with high interest rates on the table.
This episode is brought to you by Premier Ridge Capital.
Sign Up for our Newsletter and get our FREE E-Book where you'll learn everything you need to know about creating financial freedom through multifamily syndication.
This episode is brought to you by Premier Ridge Capital. Build Generational Wealth As A Passive Investor In Multifamily Real Estate Syndication! Visit www.premierridgecapital.com to find out more.
Looks like the Fed's inflation twist left economists baffled. But before that, let's take a look at this week's housing market data. Today is June 14th 2024, and this is your weekly real estate market update. More people applied for mortgages this week than last week by about 9% Good news for anyone trying to buy a house right now. But compared to last year, things are still a bit slow. That's down by 12% from a year earlier. The number of people Googling homes for sale is flat compared to last month, but compared to this time last year, searches are down a whopping 16%. This could mean fewer bidding wars but also potentially a slower housing market.
Speaker 1:
The median home price is now a whopping $393,627. That's an all-time high and guess what? It's the biggest jump in three months. Housing market is a bit hot again, but the question is can people afford it? A bit hot again. But the question is can people afford it? Cracking the house market just got tougher because the median asking price for a home is now a hefty $417,475. That's a significant jump, putting homeownership further out of reach for many. The median monthly mortgage payment is now $2,219.73 at a 6.9% mortgage rate. That's a lot of money to shell out each month. Keep this in mind when budgeting for your dream home.
Speaker 1:
More homes are hitting the market compared to last year. The number of new listings is up by 7.8%, which means there could be more options to choose from and potentially less competition. There are more houses on the market to browse. The number of homes available for purchase is up by a 16.7% compared to last year. The typical house is only on the market for 31 days before selling. This means serious house hunting and quick decisions are needed to be made when you're out there looking for your next home. So it's a weird time right now, as I will share with you what the feds just said about the interest rates and what's happening, and I'm going to give you my thoughts on the overall and what I think where the market is heading. And here's a brief rundown of what's currently happening in the US interest rate market.
Speaker 1:
In June, the CPI increased by 0.9%, which is higher than what experts predicted. This uptick suggests that prices are climbing faster than usual, putting pressure on people's budget. For some, who are often juggling student loans, rent and other expenses, this inflammatory trend can mean having less money left over for discretionary spending on things like dining out or travel. The CPI report highlights various factors contributing to this inflammatory pressure. Rising energy prices, spurred by increased demand as economies reopen, have driven up transportation costs. Additionally, supply chain disruptions and labor shortages have led to higher prices for goods ranging from electronics to groceries. And for the millennials out there, already navigating financial challenges such as stagnant wages and high housing costs, these inflammatory pressures could further strain their financial stability as prices continue to climb. Some people may need to reassess their budget and find ways to adapt to this changing economic landscape.
Speaker 1:
Changing economic landscape Now. In addition to that, the markets are betting, I think, around 60% that the Feds are going to lower rates in September. The Feds lowering rate by a quarter percent will be good for real estate, as this report is on real estate will be good for real estate as it will spur buyers to come back into the market. It will make affordability better and I think it's well much needed in the marketplace Now.
Speaker 1:
Back in December those of you that have been listening to this podcast I reported that the feds said back in December that there were going to be three rate cuts in 2024. They did a switcheroo on us no more three rate cuts because inflation has been so stubborn. So we must wait and see, as it pertains to navigating and investing and deciding whether you're going to buy that home or not. Again, I will repeat this week, remember, there's been six to 10 million new immigrants that came into this country. That's still a big problem, that's not going to go away anytime soon and we have to solve for that. So if you have the opportunity to get into a house today, even though that interest rates are a little bit higher, and then wait until interest rates come down later, that would be the strategy I would use.
Speaker 1:
Now, I'm not a financial advisor, nor am I giving you financial advice, just my thought, what I would do If you're an investor. Stay in the game. Investors, we have to keep playing, regardless of the market condition. You just have to adjust accordingly. And this has been your weekly real estate market update. I'll see you guys next week. Peace.
