Welcome to Extreme Investor Network, where we bring you exclusive insights and expert analysis on the latest trends in the economy and investment opportunities. Today, we are diving into the real estate market and the significant shifts that have taken place in recent months.
The home buying frenzy that characterized the pandemic years has come to an end, marking a shift from a seller’s market to a buyer’s market. The National Association of Realtors recently reported that home sales in the US have slowed to a 14-year low in September, with a 3.5% decline on an annual basis. Existing homes also saw a 1% monthly decline, reaching a seasonally adjusted rate of 3.84 million on an annual basis, reminiscent of the market conditions in October 2010 following the real estate crash.
Despite slowing sales, home prices continue to rise, marking the 15th consecutive month of increases. The median home price in America is now 3% higher than a year ago, at $404,500. This surge in prices has made homeownership out of reach for many potential buyers, with first-time buyers accounting for only 26% of home sales last month, compared to the historical norm of 40%. Over the past five years, home prices have surged by 49%, further amplifying affordability concerns.
Inventory levels have also seen a significant uptick, with 1.39 million available properties on the market, marking a staggering 23% increase from September 2023. Mortgage rates on the 30-year have reached their highest level in three months but remain well below last year’s peak around 8%.
Looking ahead, our expert forecast predicts a shift towards a buyer’s market in the United States from May 2024 through August 2028, reversing the trend observed since 2020. The correlation between the 2007 high on the Shiller Index and the Economic Confidence Model indicates a potential recessionary trend leading into 2028, signaling caution for investors in the real estate market.
Stay tuned to Extreme Investor Network for more exclusive insights and analysis on the ever-evolving economic landscape and investment opportunities. Trust us to keep you ahead of the curve and maximize your investment potential.