As data trickles in for April, it’s becoming clear that the historically hot housing market has flipped trajectories. It’s now in cooling mode.
Here are some details:
- The number of homes listed for sale is rising again.
- Fewer shoppers are scheduling tours.
- And Redfin reports 15% of home sellers in April cut their asking price—up from 9% a year ago.
- Rising mortgage rates and inventory are sure to cool what has been an unprecedented time for the U.S. housing market,” says Ralph McLaughlin, chief economist at Kukun, a real estate data and analytics company.
What’s that song? “I get by with a little help from the…… The Federal Reserve might be wanting to SLOW DOWN inflation, and has made it a priority to cool down one of its biggest drivers: the housing market.
- To do so, over the past few months, the Fed has put upward pressure on mortgage rates.
- In December, the average 30-year fixed mortgage rate sat at 3.11%.
- As of last week, that rate is up to 5.27%—its highest level since 2009.
And speaking of Inflation. In April, inflation rose again……for the 12th month in a row and yet….
You know what else is rising? Wages, cost of living, and BOTH will result in worsened inflation. (Insert SHOCKED face)
And let’s talk Employment:
US employers added 428,000 jobs in April, and you notice how EVERYONE is still hiring. Literally everyone.
Yes, the US added over 400,000 jobs last month. To give you some perspective, that’s more than double the average number of jobs we were adding in the year before the pandemic.
Where are we seeing some of these gains? What industries? Factories, restaurants, warehouses, and the hospitality arena have made huge hiring gains and still need more employees.
We are in an “overemployed” society, which makes for stiff wage competition for employers, and some can’t match that. This does have some economists a bit concerned. Only time will tell.
Piatt’s two cents:
BUDGET, Budget, Budget – that is going to be your word for of the month, BUDGET. America needs to get their households on a budget. Whether that is securing your monthly rent into a house payment; creating a grocery budget, sticking to an entertainment budget; just KNOW, your money will not go as far as it did last year. Approach the rest of 2022 with focused intention. So, grab a towel, grab a bottle of water, and in the word of Cody from Peloton, “Get your life together, Babe!”
Remember to ask me who I know; I know lenders, real estate agents, commercial professionals and financial advisors that can help change your situation for the better.
Parting words: if you’re not paying your mortgage; you are definitely paying someone else’s and that’s why owning real estate will ALWAYS be on trend.
