Purchasing Power is Lower, but Prices are Bottoming š
Homes are more expensive than they used to be – we all know that. That doesnāt mean itās a bad time to buy a house, especially as low inventories have supported prices and the recent Case-Shiller Home Price report showed prices climbing yet again. Itās just more of a challenge to find the right house at the right price since higher interest rates decrease the purchasing power of home buyers. The chart above assumes a 20% downpayment, which some borrowers still believe is required to get into a home. Now, thanks to ONE + by Rocket, you only need to put 1% down! ONE + covers theĀ mortgage insurance that normally comes with a downpayment of less than 20% so the you don’t have to. This enables you to put less down AND maintain a lower monthly payment. Since Rocket is also contributing 2% towards the your equity, you will be…
The Top 3 Things to Watch in Real EstateĀ in 2023Ā
The Top 3 Things to Watch in Real EstateĀ in 2023Ā Ā Consumers Ā The personal savings rate in America is at its lowestĀ since 2005, andĀ ~Ā¼ of what it was leading up to the pandemic. Consumer confidence is similar to the depths of the ā08 financial crisis, but the labor market and consumer spending have remained strong through 2022. Will the recession narrative be a self-fulfilling prophecy? or are consumers so driven by āanimal spiritsā after being stuck at home that the Fed is able to achieve a soft landing? Home PricesĀ Home Prices are expected to continue declining, but with inventory levels remaining scarce, prices could hold higher ground than some think ā still, certain markets will drop more than others. The incentive to move to find āmore houseā has completely flipped, and now many homeowners will be reluctant to sell unless they have good reason to. Interest RatesĀ The Fed probably isnāt…