Welcome to Extreme Investor Network, where we provide you with unique insights and analysis on the latest trends in various markets, including real estate. Today, we are focusing on the current state of the real estate market in the United States and what investors can expect in the coming years.
According to recent data, real estate in the United States is transitioning into a buyer’s market, a shift from the seller’s market we have experienced since 2020. The Economic Confidence Model predicts that this trend will continue until August 2028, indicating a looming recessionary period ahead. The National Association of Realtors has also confirmed this shift, with June 2024 seeing the lowest number of home sales for the year despite a rise in inventory.
Buyers can rejoice as bidding wars and waived inspections are becoming a thing of the past. However, challenges still remain as housing prices continue to soar. The median home cost reached a record high of $426,900 in June 2024, marking a 4.1% annual increase. Inventory has increased by 23.4% compared to June 2023, with more homes available in the market than in recent years.
Additionally, the current mortgage rates are higher than they were during the seller’s market of 2020, making it harder for potential buyers to enter the market. Some smart investors view mortgages as an alternative to unsecured government debt, while others are opting to pay in cash to avoid high insurance premiums. A shift in demand is also evident, with a mass migration from blue states to red states leading to price declines in areas with lower demand.
In conclusion, if you are considering purchasing a new home, now may be the time to lock in a favorable interest rate before rates rise further. With economic uncertainties and geopolitical tensions on the horizon, long-term stability in the real estate market remains a key consideration for investors. Stay tuned to Extreme Investor Network for more updates and expert analysis on real estate and other investment opportunities.