?? Why The REAL ESTATE MARKET Is Going From Bad To Worse (& what you can do!!!))

Hello LinkedIn community,

Adam Hancock here, and today I'm diving into the current intricacies of the real estate landscape. It's a tumultuous time for the market, with mortgage rates creeping towards 8%, record-low home sales in 13 years, and housing affordability at its lowest since 1984. The big question is, are things going from bad to worse?

The Current Situation

The ongoing combination of rising mortgage rates, low inventory, and continuously rising house prices has brought a significant challenge to the table. It's come to a point where the dream of homeownership seems elusive for many. Consider this: A fixed rate mortgage just over 7% on a median-priced home, with a 20% down payment (which is a stretch for many), leads to a monthly payment nearing $2,600. That's not even including insurance or HOA fees.

Historical Perspective

Looking back, the last time we faced such housing affordability challenges was in 1984. Back then, interest rates stood at a whopping 13.6%. However, the average home price was only 3.5x the median household income. Fast forward to today, and it's nearly 6x. A stark contrast.

Solutions for the Affordability Crisis

For the housing market to regain its balance, experts believe we'd need:

1. A 30% sudden drop in home prices.

2. A 4% decrease in mortgage rates.

3. A nearly 60% surge in median household income.

Given the challenges, what can we do?

1. Educate Yourself: Knowledge empowers you to recognize and capitalize on market opportunities.

2. Consider New Construction Homes: With the current market trends, new homes offer specific advantages, such as more competitive pricing and multiple incentives.

3. Explore Different Areas: The reduced competition could be your ticket into neighborhoods previously out of reach.

4. Think Beyond the Dream Home: In uncertain times, consider buying property that's a potential rental investment in the future. This approach provides a cushion during uncertain times.

5. Don't Panic: Remember, every market has its ups and downs. Stay informed, be patient, and make the decision that's best for you and your family.

In conclusion, the current real estate market offers both challenges and opportunities. Stay informed, remain adaptable, and always prioritize what's best for you and your loved ones. If you're considering a move in/to Florida or just curious about the market, reach out. Let's navigate this journey together.

Thank you for tuning in. Stay safe and make informed decisions!