30-year mortgage rates are near 8% with excellent credit. Interest rates have climbed for the past three months straight. The Fed is considering another interest rate increase for November and December, possibly pushing rates up to 8.5% or even 9%. The reasoning is that higher interest rates will "slow down inflation".
Home sales are at a 13-year low. Factor in the higher cost of insurance and the fact that property taxes are going up to unaffordable levels and the very high cost of labor and materials for home construction... and you have a real estate market that's going to crater.
I personally know several homeowners that had their homes listed for sale, but have removed them from the market in the past 2 months. They will wait and hold on to what they have for now. One real estate agent mentioned to a couple that they should keep their house off the market until at least middle of next year and then decide based on market conditions.
I'm suggesting that the U.S. economy is a three legged stool... and one of those legs is housing and private & commercial real estate. If it fails, the economy goes into a deep recession at best.
My home value has nearly doubled in the past 3 years. The market I am in is currently holding steady. While the equity in my home feels good, I am good with a crash. I want my children to be able to own a home of their own someday. We didn't buy our home to get rich, we bought our home to have a nice place to live and raise our family. It is easy to get pulled into the world of yearning for wealth.
Our country/world needs a hard slap in the face to wake us up and remind us what really matters and it ain't money. God, family and close friends is real wealth. It's so easy to lose track of this.
yes, but if I sell I need to have a place to live, so I either have to buy or rent. And I value the stability of owning for my family.