Real estate likely won’t ever get “back to normal”
According to a recent report outlining the DRAMATIC nature of how much real estate prices have changed since COVID, here is what it would take to get us “back to normal," both in the US and various countries around the world:
IF U.S. incomes spiked 69%, we'd return to pre-pandemic housing affordability levels
IF U.S. home prices fell 41%, we'd return to pre-pandemic affordability.
IF U.S. mortgage rates fell 4 percentage points, we'd return to pre-pandemic affordability
Which of these changes is most like to occur?
Are you expecting a 69% raise anytime soon?
How many sellers who paid $800K for their house will be willing and lining up to sell for $552K?
People are praying for interest to drop below 6%. Going back to 3%? Keep praying.
If those changes won’t happen, then it means you and I will have to change.
Shop for a smaller, cheaper starter home.
Change investment priorities.
Revisit your spending habits (avoid credit card debt!).
Live with more roommates while renting to save faster.
What will need to happen to ensure Americans can afford to keep roofs over our heads - either through renting or home ownership?
Life is EXPENSIVE right now. I talk to people every week feeling the financial pressure.
If you’re struggling to figure out a path to get unstuck and accomplish your goals, let’s talk. I’d love to partner with you on creating a clear plan to get you started toward building your life and legacy.
If you have a desire to buy or sell in the coming year, let’s chat.
Life has a way of keeping us all moving, and I’d love to be your real estate agent.
Contact me here to set up your free and confidential consultation.
Kevin
