Why There Won’t Be a Recession That Tanks the Housing Market

Why There Won’t Be a Recession That Tanks the Housing Market

Why There Won’t Be a Recession That Tanks the Housing Market

There’s been a lot of recession talk over the past couple of years. And that may leave you worried we’re headed for a repeat of what we saw back in 2008. Here’s a look at the latest expert projections to show you why that isn’t going to happen.

According to Jacob Channel, Senior Economist at LendingTree, the economy’s pretty strong:

“At least right now, the fundamentals of the economy, despite some hiccups, are doing pretty good. While things are far from perfect, the economy is probably doing better than people want to give it credit for.”

That might be why a recent survey from the Wall Street Journal shows only 39% of economists think there’ll be a recession in the next year. That’s way down from 61% projecting a recession just one year ago (see graph below):

a graph of the economic growth of the economy

Most experts believe there won’t be a recession in the next 12 months. One reason why is the current unemployment rate. Let’s compare where we are now with historical data from Macrotrends, the Bureau of Labor Statistics (BLS), and Trading Economics. When we do, it’s clear the unemployment rate today is still very low (see graph below):

a graph of a graph showing the number of employment rate

The orange bar shows the average unemployment rate since 1948 is about 5.7%. The red bar shows that right after the financial crisis in 2008, when the housing market crashed, the unemployment rate was up to 8.3%. Both of those numbers are much larger than the unemployment rate this January (shown in blue).

But will the unemployment rate go up? To answer that, look at the graph below. It uses data from that same Wall Street Journal survey to show what the experts are projecting for unemployment over the next three years compared to the long-term average (see graph below):

a graph of blue bars

As you can see, economists don’t expect the unemployment rate to even come close to the long-term average over the next three years – much less the 8.3% we saw when the market last crashed.

Still, if these projections are correct, there will be people who lose their jobs next year. Anytime someone’s out of work, that’s a tough situation, not just for the individual, but also for their friends and loved ones. But the big question is: will enough people lose their jobs to create a flood of foreclosures that could crash the housing market?

Looking ahead, projections show the unemployment rate will likely stay below the 75-year average. That means you shouldn’t expect a wave of foreclosures that would impact the housing market in a big way.

Bottom Line

Most experts now think we won’t have a recession in the next year. They also don’t expect a big jump in the unemployment rate. That means you don’t need to fear a flood of foreclosures that would cause the housing market to crash.

Marty Gale

Buy or Sell with Marty Gale

"Its The Experience"

Principal Broker and Owner of Utah Realty™

Licensed Since 1986

CERTIFIED LUXURY HOME MARKETING SPECIALIST (CLHM)

PSA  (Pricing Strategy Advisor)

General Contractor 2000 (in-active)
e-pro (advanced digital marketing) 2001
Certified Residential Specialist 2009

Certified Negotiation Expert 2014

Master Certified Negotiation Expert 2014
Certified Probate Specialist Since 2018

Senior Real Estate Specialist

Certified Divorce Specialist CDS

 

Contact me! 

 

 

Strategic Tips for Buying Your First Home

Strategic Tips for Buying Your First Home

Strategic Tips for Buying Your First Home

Buying your first home is a big, exciting step and a major milestone that has the power to improve your life. As a first-time homebuyer, it’s a dream you can make come true, but there are some hurdles you’ll need to overcome in today’s housing market – specifically the limited supply of homes for sale and ongoing affordability challenges.

So, if you’re ready, willing, and able to buy your first home, here are three tips to help you turn your dream into a reality.

Save Money with First-Time Homebuyer Programs                                       

Paying the initial costs of homeownership, like your down payment and closing costs, can feel a bit daunting. But there are many assistance programs for first-time homebuyers that can help you get a loan with little or no money upfront. According to Bankrate:

“. . . you might qualify for a first-time homebuyer loan or assistance. First-time buyer loans typically have more flexible requirements, such as a lower down payment and credit score. Many help buyers with closing costs and the down payment through grants and low-interest loans.

To find out more, talk to your state’s housing authority or check out websites like Down Payment Resource.

Expand Your Options by Looking at Condos and Townhomes

Right now, there aren’t enough homes for sale for everyone who wants to buy one. That’s pushing home prices up and making affordability tight for buyers. One way to deal with that issue and find a home right now is to consider condos and townhomes. Realtor.com explains:

For many newbies, it might just be a matter of making a shift toward something they can better afford—like a condo or townhome. These lower-cost homes have historically been a stepping stone for buyers looking for a less expensive alternative to a single-family home.”

One reason why they may be more affordable is because they’re often smaller. But they still give you the chance to get your foot in the door and achieve your goal of owning a home and building equity. And that equity can help fuel your move into a larger home later on if you decide you need something bigger in the future. Hannah Jones, Senior Economic Analyst at Realtor.comsays:

Condos can help prospective homebuyers who perhaps have a smaller budget, but who are really determined to get a foothold in the market and start to accumulate some equity. It can be a really great entry point.”

Consider Pooling Your Resources To Buy a Multi-Generational Home

Another way to break into the market is by purchasing a home with friends or loved ones. That way you can split the cost of things like the mortgage and bills, to make it easier to afford a home. According to Money.com:

“Buying a home with another person has some obvious advantages in the mortgage department. With two incomes in the mix, buyers can likely qualify for a larger mortgage — a big help in today’s high-cost market.

Bottom Line

By exploring first-time homebuyer assistance, condos, townhomes, and multi-generational living, it can be easier to find and buy your first home. When you’re ready, let’s connect.

Marty Gale

Buy or Sell with Marty Gale

"Its The Experience"

Principal Broker and Owner of Utah Realty™

Licensed Since 1986

CERTIFIED LUXURY HOME MARKETING SPECIALIST (CLHM)

PSA  (Pricing Strategy Advisor)

General Contractor 2000 (in-active)
e-pro (advanced digital marketing) 2001
Certified Residential Specialist 2009

Certified Negotiation Expert 2014

Master Certified Negotiation Expert 2014
Certified Probate Specialist Since 2018

Senior Real Estate Specialist

Certified Divorce Specialist CDS

 

Contact me! 

 

 

2 of the Factors That Impact Mortgage Rates

2 of the Factors That Impact Mortgage Rates

2 of the Factors That Impact Mortgage Rates

If you’re looking to buy a home, you’ve probably been paying close attention to mortgage rates. Over the last couple of years, they hit record lows, rose dramatically, and are now dropping back down a bit. Ever wonder why?

The answer is complicated because there’s a lot that can influence mortgage rates. Here are just a few of the most impactful factors at play.

Inflation and the Federal Reserve

The Federal Reserve (Fed) doesn’t directly determine mortgage rates. But the Fed does move the Federal Funds Rate up or down in response to what’s happening with inflation, the economy, employment rates, and more. As that happens, mortgage rates tend to respond. Business Insider explains:

The Federal Reserve slows inflation by raising the federal funds rate, which can indirectly impact mortgages. High inflation and investor expectations of more Fed rate hikes can push mortgage rates up. If investors believe the Fed may cut rates and inflation is decelerating, mortgage rates will typically trend down.”

Over the last couple of years, the Fed raised the Federal Fund Rate to try to fight inflation and, as that happened, mortgage rates jumped up, too. Fortunately, the expert outlook for inflation and mortgage rates is that both should become more favorable over the course of the year. As Danielle Hale, Chief Economist at Realtor.comsays:

“[M]ortgage rates will continue to ease in 2024 as inflation improves . . .”

There’s even talk the Fed may actually cut the Fed Funds Rate this year because inflation is cooling, even though it’s not yet back to their ideal target.

The 10-Year Treasury Yield

Additionally, mortgage companies look at the 10-Year Treasury Yield to decide how much interest to charge on home loans. If the yield goes up, mortgage rates usually go up, too. The opposite is also true. According to Investopedia:

“One frequently used government bond benchmark to which mortgage lenders often peg their interest rates is the 10-year Treasury bond yield.”

Historically, the spread between the 10-Year Treasury Yield and the 30-year fixed mortgage rate has been fairly consistent, but that’s not the case recently. That means, there’s room for mortgage rates to come down. So, keeping an eye on which way the treasury yield is trending can give experts an idea of where mortgage rates may head next.

Bottom Line

With the Fed meeting later this week, experts in the industry will be keeping a close watch to see what they decide and what impact it’ll have on the economy. To navigate any mortgage rate changes and their impact on your moving plans, it’s best to have a team of professionals on your side.

Marty Gale

Buy or Sell with Marty Gale

"Its The Experience"

Principal Broker and Owner of Utah Realty™

Licensed Since 1986

CERTIFIED LUXURY HOME MARKETING SPECIALIST (CLHM)

PSA  (Pricing Strategy Advisor)

General Contractor 2000 (in-active)
e-pro (advanced digital marketing) 2001
Certified Residential Specialist 2009

Certified Negotiation Expert 2014

Master Certified Negotiation Expert 2014
Certified Probate Specialist Since 2018

Senior Real Estate Specialist

Certified Divorce Specialist CDS

 

Contact me! 

 

 

Why It’s More Affordable To Buy a Home This Year

Why It’s More Affordable To Buy a Home This Year

Why It’s More Affordable To Buy a Home This Year

Some Highlights

Marty Gale

Buy or Sell with Marty Gale

"Its The Experience"

Principal Broker and Owner of Utah Realty™

Licensed Since 1986

CERTIFIED LUXURY HOME MARKETING SPECIALIST (CLHM)

PSA  (Pricing Strategy Advisor)

General Contractor 2000 (in-active)
e-pro (advanced digital marketing) 2001
Certified Residential Specialist 2009

Certified Negotiation Expert 2014

Master Certified Negotiation Expert 2014
Certified Probate Specialist Since 2018

Senior Real Estate Specialist

Certified Divorce Specialist CDS

 

Contact me! 

 

 

 Buying Real Estate With Crypto Currency In Utah

 Buying Real Estate With Crypto Currency In Utah

 Buying Real Estate With Crypto Currency In Utah

 
As the world continues to evolve, so too does the way we invest and transact. In recent years, cryptocurrencies such as Bitcoin and Ethereum have emerged as prominent investment vehicles for tech-savvy individuals. And with the growing popularity of digital currencies, the real estate industry has started to embrace this new form of payment. Whether you’re a seasoned crypto investor or someone curious about the potential benefits, this article will explore the ins and outs of buying real estate using cryptocurrency specifically in the beautiful state of Utah. Get ready to discover the exciting possibilities of combining the digital world of cryptocurrency with the tangible world of real estate!

The Rise Of Crypto Currency In Real Estate Investments

Utah, just like many other parts of the world, has witnessed a surge in the use of cryptocurrency in various industries. One particular sector that has experienced a profound impact is real estate. The rise of cryptocurrency in real estate investments has brought about a paradigm shift in the way people buy and sell properties, offering unique opportunities and challenges for both buyers and sellers.

Cryptocurrency, the digital currency that utilizes cryptography for secure transactions and control the creation of new units, has steadily gained popularity as an alternative form of investment. Bitcoin, the most well-known cryptocurrency, has paved the way for other digital currencies like Ethereum, Ripple, and Litecoin. These digital assets provide investors with a decentralized and secure method of transferring wealth, revolutionizing traditional financial systems.

In recent years, Utah has emerged as a hub for cryptocurrency enthusiasts and blockchain technology startups, attracting individuals and businesses eager to explore the potential of this innovative form of currency. This convergence of tech-savvy individuals and a flourishing real estate market has created a unique synergy, enabling the purchase of properties using cryptocurrency.

One of the primary benefits of buying real estate with cryptocurrency is the potential for increased transparency and reduced transaction costs. Cryptocurrency utilizes blockchain technology, a distributed ledger that ensures all transactions are recorded across a network of computers, making it virtually impossible to alter or manipulate the data. This transparency promotes trust between parties involved in real estate transactions, mitigating the risk of fraudulent activities and reducing the need for intermediaries such as banks or title companies. Ultimately, this can result in lower transaction fees and faster, more streamlined processes.

Moreover, cryptocurrency provides an avenue for international buyers to invest in Utah real estate without the complications of traditional currency exchanges and regulations. With cryptocurrency, the transaction is not subject to the fluctuations of foreign exchange rates, making it an attractive option for global investors seeking stability and diversification.

However, it’s essential to acknowledge the challenges of utilizing cryptocurrency in real estate transactions. One significant concern is the volatile nature of cryptocurrencies. The value of these digital assets can fluctuate dramatically within a short period, potentially affecting the agreed-upon price of a property. Buyers and sellers must carefully consider market trends and evaluate the risks associated with cryptocurrency before entering into a transaction.

Another challenge is the limited acceptance of cryptocurrency in the real estate industry. While more and more businesses are embracing digital currencies, many sellers still prefer traditional forms of payment. As a result, finding sellers willing to accept cryptocurrency can be a hurdle, requiring dedicated platforms or real estate agents with expertise in this emerging market.

To navigate these challenges, buyers and sellers must educate themselves about cryptocurrency and its implications in the real estate market. Professionals such as real estate agents and lawyers who possess a deep understanding of both industries can offer valuable guidance throughout the transaction process.

In conclusion, the rise of cryptocurrency in real estate investments in Utah brings a new dimension to property transactions, offering increased transparency, reduced transaction costs, and potential opportunities for international investors. However, it’s important to approach these transactions with caution, considering the volatility of cryptocurrencies and the limited acceptance within the industry. As this market continues to evolve, both buyers and sellers can benefit from staying informed and seeking professional advice to maximize the potential of cryptocurrency in real estate investments in Utah.

Understanding The Benefits And Risks Of Buying Real Estate With Crypto Currency

When it comes to buying real estate, the world of cryptocurrency has brought about a new and exciting avenue for potential buyers. Utah, known for its stunning landscapes, diverse recreational opportunities, and strong economy, has also seen a rise in the acceptance of cryptocurrency as a form of payment for real estate transactions. However, before diving into this innovative trend, it is crucial to understand the benefits and risks associated with buying real estate with cryptocurrency.

One of the most significant advantages of purchasing real estate with cryptocurrency is the potential for increased privacy and security. Cryptocurrency transactions rely on blockchain technology, which provides a decentralized system that ensures transparency and eliminates the need for intermediaries like banks. This means that the buyer can retain their anonymity while completing the transaction, as personal information and financial details are not explicitly disclosed.

Another notable benefit is the potential for quick and seamless transactions. Traditional real estate transactions often involve mountains of paperwork, multiple parties, and lengthy waiting periods. However, with cryptocurrency, the entire process can be expedited, allowing buyers to secure their dream property in a matter of hours rather than weeks. The elimination of intermediaries and complex procedures reduces the chances of paperwork errors and delays, making the buying process more efficient and convenient.

Furthermore, investing in real estate with cryptocurrency opens up opportunities for diversification. Cryptocurrency presents an alternative form of investment that allows individuals to protect their wealth from the fluctuations of traditional financial markets. By incorporating real estate into their cryptocurrency portfolio, buyers can enjoy the benefits of both worlds, potentially increasing their returns and reducing the risk associated with a single investment.

However, as with any investment, there are inherent risks involved when using cryptocurrency to purchase real estate. One of the primary concerns is the volatility of the cryptocurrency market. Bitcoin, the most well-known cryptocurrency, has experienced significant price fluctuations throughout its existence. The value of cryptocurrencies can skyrocket or plummet in a short span of time, potentially affecting the buyer’s purchasing power and overall investment.

Additionally, the legality and regulatory framework surrounding cryptocurrency in real estate transactions are still evolving. While some states, including Utah, have embraced the use of cryptocurrency for real estate, others have not yet provided specific guidelines or legislation. This lack of regulatory clarity can create uncertainty and potentially expose buyers to legal risks.

Another risk to consider is the potential for fraudulent activities. Although blockchain technology offers enhanced security, cybercriminals are continually finding new ways to exploit vulnerabilities. Buyers must exercise caution and conduct thorough due diligence to ensure the legitimacy of the real estate transaction and the involved parties. Engaging the services of an experienced real estate attorney who specializes in cryptocurrency transactions can provide an additional layer of protection.

Lastly, there may be limited options available for purchasing real estate using cryptocurrency. While the popularity of cryptocurrency is growing rapidly, it remains relatively niche in the real estate market. Buyers may face challenges finding sellers willing to accept cryptocurrency as payment or encounter limitations in terms of the types of properties available for purchase.

In conclusion, buying real estate with cryptocurrency in Utah offers distinct advantages, such as enhanced privacy, quick transactions, and diversification opportunities. However, it also comes with risks, including market volatility, regulatory uncertainty, potential fraud, and limited options. It is crucial for buyers to carefully assess these benefits and risks, seek professional guidance, and conduct thorough research before embarking on a real estate transaction using cryptocurrency. With proper precautions and a clear understanding of the landscape, the convergence of cryptocurrency and real estate can pave the way for exciting opportunities in Utah’s property market.

Exploring The Real Estate Market In Utah For Crypto Currency Transactions

Utah, known for its stunning natural beauty and growing tech industry, has become an attractive destination for real estate investors. With the rise of cryptocurrencies, a new avenue is emerging for those looking to invest in properties within the state. In this section, we will explore the real estate market in Utah and how crypto currency transactions are shaping the industry.

The concept of using crypto currency to purchase real estate is relatively new, but it is steadily gaining traction. While still not mainstream, more and more sellers in Utah are starting to accept cryptocurrencies such as Bitcoin and Ethereum as a form of payment for their properties. This trend can be attributed to the increasing acceptance and understanding of digital currencies among both buyers and sellers.

One of the primary reasons why crypto currency transactions are becoming popular in the Utah real estate market is the potential for anonymity and security. Blockchain technology, the foundation of cryptocurrencies, offers decentralized and transparent transactions. This appeals to both buyers and sellers, as it eliminates the need for intermediaries such as banks, reduces transaction fees, and provides a higher level of privacy.

Moreover, the potential for significant financial gains from crypto investments is another reason behind the increasing interest in real estate transactions with digital currencies. With the volatility and potential return on investment that cryptocurrencies offer, investors are looking for ways to diversify their holdings. Real estate, which has historically proven to be a stable and profitable investment, is an appealing option for those looking to leverage their crypto assets.

Utah, in particular, offers a myriad of opportunities for crypto currency transactions, thanks to its thriving real estate market. The state boasts a growing tech sector, attracting young professionals and investors alike. In cities such as Salt Lake City and Park City, there is a mix of commercial and residential properties available that cater to a wide range of budgets and preferences.

The acceptance of crypto currency transactions in Utah’s real estate market is not limited to high-end properties. Sellers across various price points are beginning to explore this alternative payment option, creating opportunities for different types of investors to participate in the market. This inclusivity is one of the factors contributing to the rise of crypto currency transactions within the state.

However, it is essential to understand that while the option to buy real estate with crypto currency is available, it still comes with its risks and challenges. Cryptocurrencies can be volatile and subject to sudden price fluctuations. Therefore, buyers must conduct thorough research and due diligence before engaging in any real estate transaction involving digital currencies.

Additionally, buyers and sellers must ensure they comply with all applicable laws and regulations regarding real estate and crypto currency transactions in Utah. Working with experienced professionals, such as real estate agents or attorneys, who have expertise in both fields, can help navigate any legal complexities and ensure a smooth transaction process.

As the popularity of cryptocurrencies continues to rise and their adoption becomes more mainstream, it is likely we will see an increasing number of real estate transactions in Utah conducted through digital currencies. The potential benefits, such as security, privacy, and financial diversification, make this emerging trend a viable option for both investors and sellers in the state.

In conclusion, the real estate market in Utah is embracing the use of crypto currencies as a means of payment. While still not widely adopted, the growing acceptance of digital currencies by sellers opens up new opportunities for investors. Buyers looking to utilize their crypto assets in the Utah real estate market must exercise caution, conduct thorough research, and ensure compliance with applicable laws and regulations. With the right approach, individuals can leverage the benefits of crypto currencies to make successful real estate transactions in this beautiful state.

Tips For Successfully Buying Real Estate With Crypto Currency In Utah

As an emerging form of digital currency, the use of cryptocurrency in real estate transactions is becoming increasingly popular. Utah, with its thriving real estate market and tech-savvy residents, has presented itself as a favorable destination for those looking to invest in real estate using cryptocurrency. If you’re considering buying real estate with cryptocurrency in Utah, here are a few tips to help you navigate the process successfully.

1. Education is key: Before diving into the world of real estate transactions with cryptocurrency, it is crucial to familiarize yourself with the basic concepts and workings of both real estate and cryptocurrency. Understand the risks, benefits, and legal implications involved in using cryptocurrency as a means of payment. Additionally, stay updated on the latest trends, regulations, and developments in both the real estate and cryptocurrency markets.

2. Partner with an experienced real estate agent: Collaborating with a knowledgeable and experienced real estate agent who is well-versed in cryptocurrency transactions can significantly streamline the buying process. A reliable agent will not only assist you in finding suitable properties but will also guide you through the intricacies of purchasing real estate with cryptocurrency. They can provide valuable insights, negotiate favorable deals, and ensure a smooth transaction from start to finish.

3. Choose the right cryptocurrency: When purchasing real estate with cryptocurrency, it’s essential to determine which cryptocurrency to use. While Bitcoin remains the most widely accepted cryptocurrency in real estate transactions, some sellers may accept other mainstream cryptocurrencies like Ethereum or Litecoin. Research which cryptocurrencies are most widely accepted in the Utah real estate market, and consider factors such as transaction speed, security, and transaction fees before finalizing your decision.

4. Conduct due diligence on the property: Just like with any real estate purchase, conducting thorough due diligence is paramount. Research the property thoroughly, including its title, ownership history, legal restrictions, and any liens or encumbrances. It’s advisable to involve legal counsel to ensure you’re protected throughout the transaction. Remember, cryptocurrency transactions are irreversible, so verifying the property’s authenticity and legality is of utmost importance.

5. Keep track of cryptocurrency regulations: Cryptocurrency regulations can vary from state to state and even country to country. Stay informed about the regulatory environment surrounding cryptocurrency transactions in Utah to ensure compliance with local laws. Consult with legal experts who specialize in cryptocurrency transactions and real estate in Utah to ensure that you adhere to all the necessary guidelines.

6. Secure your cryptocurrency assets: Protecting your cryptocurrency assets is crucial, especially during a real estate transaction. Implement robust security measures such as using hardware wallets, multi-factor authentication, and strong encryption protocols to safeguard your cryptocurrency from cyber threats. Consult with cybersecurity professionals to ensure your digital assets remain secure.

7. Prepare for potential market volatility: Cryptocurrency markets are known for their high volatility. When purchasing real estate with cryptocurrency, it’s important to be prepared for market fluctuations and price volatility. Consider consulting with financial advisors to develop a comprehensive risk management strategy that aligns with your investment goals and risk tolerance.

8. Consult with tax professionals: Real estate transactions, particularly those involving cryptocurrency, have tax implications. Cryptocurrency transactions can trigger capital gains taxes or other tax liabilities. Consulting with tax professionals who specialize in cryptocurrency transactions and real estate in Utah will ensure you meet all your tax obligations and prevent any unpleasant surprises down the line.

In conclusion, buying real estate with cryptocurrency in Utah can be an exciting and rewarding endeavor. By educating yourself, working with professionals who specialize in cryptocurrency transactions, conducting thorough due diligence, and staying informed about legal and market regulations, you can navigate the process successfully. Remember to approach each transaction with caution, and seek guidance from experts to make informed decisions that align with your investment objectives.

Marty Gale

Buy or Sell with Marty Gale

"Its The Experience"

Principal Broker and Owner of Utah Realty™

Licensed Since 1986

CERTIFIED LUXURY HOME MARKETING SPECIALIST (CLHM)

PSA  (Pricing Strategy Advisor)

General Contractor 2000 (in-active)
e-pro (advanced digital marketing) 2001
Certified Residential Specialist 2009

Certified Negotiation Expert 2014

Master Certified Negotiation Expert 2014
Certified Probate Specialist Since 2018

Senior Real Estate Specialist

Certified Divorce Specialist CDS

 

Contact me! 

 

 

3 Key Factors Affecting Home Affordability

3 Key Factors Affecting Home Affordability

3 Key Factors Affecting Home Affordability

Over the past year, a lot of people have been talking about housing affordability and how tight it’s gotten. But just recently, there’s been a little bit of relief on that front. Mortgage rates have gone down since their most recent peak in October. But there’s more to being able to afford a home than just mortgage rates.

To really understand home affordability, you need to look at the combination of three important factors: mortgage rates, home prices, and wages. Let’s dive into the latest data on each one to see why affordability is improving.

1. Mortgage Rates

Mortgage rates have come down in recent months. And looking forward, most experts expect them to decline further over the course of the year. Jiayi Xu, an economist at Realtor.comexplains:

“While there could be some fluctuations in the path forward … the general expectation is that mortgage rates will continue to trend downward, as long as the economy continues to see progress on inflation.”

And even a small change in mortgage rates can have a big impact on your purchasing power, making it easier for you to afford the home you want by reducing your monthly mortgage payment.

2. Home Prices

The second important factor is home prices. After going up at a relatively normal pace last year, they’re expected to continue rising moderately in 2024. That’s because even with inventory projected to grow slightly this year, there still aren’t enough homes for sale for all the people who want to buy them. According to Lisa Sturtevant, Chief Economist at Bright MLS:

“More inventory will be generally offset by more buyers in the market. As a result, it is expected that, overall, the median home price in the U.S. will grow modestly . . .”

That’s great news for you because it means prices aren’t likely to skyrocket like they did during the pandemic. But it also means it’ll probably cost you more to wait. So, if you’re ready, willing, and able to buy, and you can find the right home, purchasing before more buyers enter the market and prices rise further might be in your best interest.

3. Wages

Another positive factor in affordability right now is rising income. The graph below uses data from the Federal Reserve to show how wages have grown over time:

If you look at the blue dotted trendline, you can see the rate at which wages typically rise. But on the right side of the graph, wages are above the trend line today, meaning they’re going up at a higher rate than normal.

Higher wages improve affordability because they reduce the percentage of your income it takes to pay your mortgage. That’s because you don’t have to put as much of your paycheck toward your monthly housing cost.

What This Means for You

Home affordability depends on three things: mortgage rates, home prices, and wages. The good news is, they’re moving in a positive direction for buyers overall.

Bottom Line

If you’re thinking about buying a home, it’s important to know the main factors impacting affordability are improving. To get the latest updates on each, let’s connect.

Marty Gale

Buy or Sell with Marty Gale

"Its The Experience"

Principal Broker and Owner of Utah Realty™

Licensed Since 1986

CERTIFIED LUXURY HOME MARKETING SPECIALIST (CLHM)

PSA  (Pricing Strategy Advisor)

General Contractor 2000 (in-active)
e-pro (advanced digital marketing) 2001
Certified Residential Specialist 2009

Certified Negotiation Expert 2014

Master Certified Negotiation Expert 2014
Certified Probate Specialist Since 2018

Senior Real Estate Specialist

Certified Divorce Specialist CDS

 

Contact me! 

 

 

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