Your Last Chance to Buy a Home? | 1-Minute Market Update w/ Martin Perdomo

Is Buying a Home Actually Possible? 

Tired of renting and dreaming of owning your own place? You're not alone! Join us as we dive deep into the rollercoaster that is today's housing market. Is it finally cooling down? Are home prices actually starting to drop? We're breaking down the latest numbers, trends, and expert insights to help you navigate this crazy housing landscape. From mortgage rates to hot housing markets, we've got you covered. 

Don't miss this episode if you're a first-time homebuyer, a seasoned investor, or just someone who's curious about what's going on with housing. Let's decode the real estate market together!

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Transcript

Speaker 1: 0:29

Today is July 26, 2024, and this is your weekly real estate market update. This week, fewer people are applying for mortgages to buy homes. The number of people trying to buy a house with a mortgage dropped by 4% this week compared to last week and it's way lower by 15% to this time last year. More people are Googling homes for sale now, by 12% more than last month, but there are fewer people that are searching by about 15% compared to this time last year. Nowadays, the typical price tag for a house is a whopping $395,500. According to Redfin, it's a $1,000 short from being the all-time high during the four recent weeks. That's basically a down payment on your entire adult life. Speaking of prices, the average price tag sellers are putting on homes this week is about $401,250. That's what the market's looking like right now as I record this. So if you were to buy a house right now, the average monthly mortgage bill is a hefty $2,671. Right now, thanks to interest rates sitting at about 6.77%, which is actually good, it's a little bit lower than it was a few weeks ago. Looking at the market right now, there are more houses for sale compared to last year. The number of new homes on the market has jumped by 6.1%. That's a big jump. That's his nationwide numbers. Now, guys, speaking of inventory, the numbers of homes you can actually buy has gone up by almost 18.7%, and houses are hanging around the market an average of 33 days to sell, which is five days longer than last year. Still pretty to me. In 33 days in the market is not a bad number, guys. You know, typically a house normally takes about 90 days on the market, on a normal market, but hasn't been normal for quite a few years. Now, as we have this huge housing shortage, is now the perfect time to buy a house. Experts reveal surprising data.

Speaker 1: 2:47

Over the past few years, skyrocketing home prices and high mortgage rates have left many Americans feeling discouraged about buying a home. However, there are signs that the situation may be improving. According to Skyler Olsen, zillow's chief economist, in June showed a slowdown in the housing market that favors buyers. The Federal Reserve's actions to combat inflation by raising interest rates led to a decrease in demand for homes, but it also results in homeowners holding off on selling to keep their low mortgage rates. This caused home prices to rise even higher. Now, with more homesteaders offering price cuts and drop in mortgage rates, the market might be shifting towards buyers. New home construction is also increasing, guys, and there is an expectation that the Federal Reserve might cut rates soon, potentially making home buying more affordable. Despite these positive trends, affordability remains a challenge for many. The median price of previously owned homes hit a record high and regional differences in housing market persists. For instance, new Orleans has shifted to a buyer's market by high homeowners insurance rates there present additional costs. The average time homes spend on the market has increased, giving buyers more time to make decisions. With a potential increase in housing inventory and a forecast drop in interest rates, there's cautious optimism that the housing market will become more favorable for buyers. However, the full benefits of these changes may take time to materialize and local conditions will vary.

Speaker 1: 4:25

I can tell you I recently myself put an offer and asking this hit the MLS. I usually don't buy the MLS, but this was a good deal on the MLS. I recently put an offer on an 18 unit apartment building. I gave them their asking price and did inspections for informational purposes only, and the guy got seven offers, guys. So it's depending market to market. I did not win the bid. Someone overpaid and didn't do inspections, which is a sign of a novice that does not know what he's doing, didn't even want to see the apartment. I would never buy an apartment building without looking in every single unit, because I need to know what I'm getting myself into and what I'm getting my property manager into before I buy it.

Speaker 1: 5:13

And there's 18 septic tanks on the property as well. It was a good deal. It was a very, very nice place, very well kept, and they gave them what we're asking no inspections. They didn't even want to see it, which is crazy. But again to this article's point, it is market to market, dependent of where you're doing business. And this has been your weekly real estate market update. I'll see you guys next week. Peace.