As the holidays approach, we wanted to give you Ten Talking Points about the housing market that you should know THE FACTS about!
1. Mortgage interest rates are averaging above 8% at the time of writing this. Rates are expected to hold around 7-8% until at least half way into 2024, maybe longer. The housing market is unaffordable for most and people are just not moving due to rates and home prices.
2. Inventory is at record lows and we are still in a seller’s market! Below the median sales price, we are seeing multiple offers. Above the median, we are seeing negotiations take place, just a tad. Now is a great time to pick up a deal on luxury real estate!
3. For every $50,000 in auto loan debt, at today’s interest rates, a buyer loses $200,000 in home purchasing power.
4. Foreclosures are way up, as many Americans are struggling with a cost-of-living crisis, but not even close to pre-pandemic foreclosure levels of 2019. (Banks don’t want to foreclosure.)
5. Home values are up again, year-over-year. Your home owner’s insurance policy does not automatically adjust to market value. Make sure you update your homes insurance policy to protect you during a catastrophe.
6. Student loan repayments started again in October 2023. Student loans have not needed to be paid since the pandemic. We expect a lot of boomerang millennials to be returning home to live with their parents. Sorry!
7. Independent Living and Senior Living complexes are being built everywhere, as most well-run places are at maximum capacity. Transitioning to Senior Living in the future is needing to be planned much sooner, due to limited space. The average cost of private pay Assisted Living is $4,500 per month in Michigan. Look into long term care insurance with your insurance broker for you and your loved ones.
8. Election years are typically great years for real estate and the stock market. Keep in mind, people get nervous about buying and selling closer to Election Day. So, if you are selling your home, call us earlier in the year.
9. If you put 10% down on a $200,000 home today, with an 8.25% interest rate and average property tax and insurance were included, the payment averages out to be $1,823.16.
10. Home and apartment rents are at all-time highs. The average two-bedroom apartment in Macomb County is $1,221/month. Keep in mind, this is the average and utilities are not usually included.
As always, please reach out with any questions you, your family, or friends may have about their real estate related situations and plans for the future.
We wish you a Happy Thanksgiving
-Brett & Alex