Everything You Need To Know About the Housing Market - Housing Market Crash 2022

Everything You Need To Know About the Housing Market - Housing Market Crash 2022
Sellers are dropping their prices to stay competitive!
Most people selling a house have to face those fears of having it sit on the market at a high price that nobody wants to spend. As the frenzy of buying starts to decline a little bit, sellers are reacting rationally and about 1 in every 5 is starting to drop their prices in hopes of attracting more offers, according to Redfin. These people are reading the signs out there about inventory and seeing these crazy-high mortgage rates and know they have to shift their prices downward in order to be competitive.
Mortgage rates are cooling off the market!
You have to be living under a rock to not realize mortgage rates are going through the roof. According to NerdWallet, the average 30-year fixed-rate mortgage is at 5.397% as of June 7. That’s compared with 2.857% a year ago - nearly DOUBLE. That’s just not sustainable for buyers to pay way over market value and then get hit with those massive mortgage payments plus huge interest rates month after month.
Inflation is going to soften the market
It can be hard to think about making big purchases right now because all our little purchases keep going up and up and up. A gallon of gas is going for almost $5 per gallon when it was at $2.60 a year ago. The price of the simplest food stables like milk, bread, and meat are up. Between increased demand post-COVID pandemic and the ongoing word in Ukraine, your dollar isn’t buying as much anymore. Kukun Chief Economist Ralph McLaughlin told Fortune, “The red-hot housing market’s days are numbered.” If people are spending extra dollars just to feed their kids and keep their gas tanks full, they’re not going to run out of dollars to pay enormous prices for homes.
Rental prices are still through the roof
If you are weighing your choices between buying and renting, think seriously about making the move to buy something. Rental prices are continuing to peak higher and higher every month with no end in sight. According to Realtor.com, “the median rent in the country’s 50 biggest metropolitan areas soared 16.7% annually.” This is the highest that rental prices have been since Realtor started tracking them!
What are the reasons for the increase of the rent prices…?
1)Pandemic slowdowns in construction especially big rental buildings…..
Because of the Short in construction materials
2)the rising home prices and mortgage rates - prevent people from buying because they can’t afford it, so most renters ending up extending their leases ant that is the reason that there is no inventory on the market for renters, so less supply and more demand pushed prices up.
3)Investors buying high so they rent for high
In order to get their return on the money investors have to rent for high because the purchase of the rental property was for high.
👔 Ron Cohen
📱 Call or Text us: 201-240-2991
🌐 Website: roncohen.kw.com/
📨 Email: [e-mail]
📅 Free Real Estate Consultation (Zoom Call)
#housingmarket #housingmarketupdate #housingmarket2022
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👔 Ron Cohen
📱 Call or Text us: 201-240-2991
🌐 Website: roncohen.kw.com/
📨 Email: [e-mail]
📅 Free Real Estate Consultation (Zoom Call)

[@roncohenrealtor5702]

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