Staying Ahead in a Turbulent Property Market | Real Estate Market Update w/ Martin

What happens when mortgage rates soar to over 7% amid a tense presidential election season? Discover surprising market trends as we explore why pending home sales are defying expectations with a 4.5% increase, despite a notable pause among first-time buyers and an 8% dip in mortgage applications. Whether you're feeling cautious or ready to make a move, we'll dissect the complex factors at play, uncovering the impact on buyers, sellers, and investors alike. With the typical homebuyer's mortgage payment climbing to $2,593, the stakes have never been higher.

Shifting gears, we investigate the cooling trend in multifamily developments across the U.S., with a 15.7% decrease in housing starts. While the Northeast faces a steep decline, single-family homes are experiencing a modest uptick. Unpack the variations across major cities like New York, Dallas, and Houston, and learn how these dynamics might offer unique opportunities in a fluctuating market. Jay Parsons joins us to highlight the nuanced factors influencing construction, from local regulations to supply chain hurdles. Tune in for insights that could reshape your next big real estate move and keep you ahead in an unpredictable landscape.

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Transcript

Speaker 1: 0:28

What happens when mortgage rates hit 7% and the election is looming? Let's break it down, because this is where real estate gets really interesting. All that and more in today's Weekly Real Estate Market Update on Wealthy AF Alright real estate watchers. Here's the deal. Mortgage rates have climbed past 7% for the first time since early July. Combine that with the anxiety of a presidential election and you think the housing market would hit a wall right. Wrong Pending home sales just posted a 4.5% year-over-year increase, the biggest jump in three years. And new listings they're up 3.4%. But don't let those numbers fool you. There's more to the story. Mortgage rates at 7% are turning some buyers and sellers cautious, with Redfin reporting that nearly one quarter of first-time buyers are hitting pause until after the election and applications for mortgages are down 8% compared to just a month ago. So what's driving this Uncertainty? Buyers and sellers are waiting to see what happens next, but let's not forget the typical homebuyer's monthly mortgage payment is now a whopping $2,593. And that's near the highest since July, and it's cutting deep into purchasing power. Despite all of this, pending sales remain resilient. Redfin's Chen Zhao admits even she's surprised that she hasn't seen a bigger slowdown. What happens next, guys? It all depends on the election and whether those mortgage rates stay high or take a dip afterwards. It all depends on the election and whether those mortgage rates stay high or take a dip afterwards.

Speaker 1: 2:13

The big question for you are you waiting on the sidelines or are you ready to move before the window shifts again? Before we dive deeper, let me ask you this Are you feeling stuck in today's market, not sure how to navigate these high interest rates and economic uncertainties? If you want to master real estate, even in challenging times, my personal real estate coaching program is designed for you. Whether you're buying, selling or investing, I'll show you how to thrive in any market, just like today's market or any other. Head over to wealthyafai, again, wealthyafai, and let's get you started. Don't wait for the market to change. Learn how to win right now. Now back to the show.

Speaker 1: 2:58

In the last year, we've seen a sharp cooling in multifamily development across the US. In fact, multifamily housing starts are down 15.7% year over year, according to the Census Bureau and HUD. Meanwhile, single family homes saw a modest rise, which starts up 5.5%. This slowdown is having a ripple effect, dragging down the overall pace of residential construction. Well, here's where it gets really interesting, guys. Well, here's where it gets really interesting, guys. Multifamily permitting dropped a staggering 17.4%, with a sharp 10.8% dip just from last month. In contrast, single family permits are holding steady. Now, even though multifamily completions shot up 42% from last year, we're seeing a slowdown month to month. Let's talk regions the Northeast surprising everyone with a 18 steepest decline permits down 26.7%, largely due to those high mortgage rates. 31,000 units permitted up 35% last year, guys. New York insane. But cities like Dallas, houston and even DC are pulling back significantly. So what does this mean for you? An interest rate soar and demand fluctuates. Multifamily construction is evolving, especially in major urban centers. Jay Parsons reminds us that permit numbers don't tell the full story. Local regulation, financing delays and supply chain issues all play a part in whether those permits turn into actual builds. However, these numbers do give us a glimpse into which markets might bounce back faster. Stay sharp, stay informed and keep those investment strategies nimble. This slowdown could be your next big opportunity and that's a wrap in this week's Weekly Real Estate Market Update. I'll see you guys next week. Peace out.