Unlocking the Dream of Homeownership How to Make it Financially Doable: #realestate

How To Unlock Your Dream Of Homeownership On A Budget

• Home prices continue to rise despite those high rates. And all of those forecasts of more homes coming on the market? In more than three years, it simply hasn’t happened.
• Why haven’t home prices fallen? Sure, median list prices tumbled a bit in some of the markets where they had risen the most during the COVID-19 pandemic. (Austin, TX, and Miami, we’re looking at you.) But nationally, prices flattened out, dipping just slightly then going right back up again.
• Sales of existing homes, which excludes new construction, dropped 16.6% year over year in July. This was the most recent month that data was available from the National Association of Realtors®.
• With few homes on the market, new construction gets a boost
Should You Buy a Home in 2024?
• The tough housing market is luring buyers without kids and higher incomes
• A survey by mortgage giant Fannie Mae found that 85% of Americans think it's a bad time to buy a home.
• First-time buyers accounted for nearly a third of home sales during the 12 months ending in June, according to an annual snapshot from the National Association of Realtors.
• A record 70% of all buyers didn't have children under 18 living at home.
Sellers are holding tight to their low-rate homes
Rising interest rates have put homes out of reach for many would-be buyers. They've also discouraged people who already own homes from selling and giving up their cheaper loans. That's a big reason there aren't many "For Sale" signs out there right now.
New homes are a bigger share of sales.
About 13% of homes sold this past year were newly built, according to the Realtors' report, up from 12% the year before.
Down payment is the hard part and average income of buyers is at a record high
• According to the Realtors' report, coming up with a down payment is the biggest challenge for many first-time buyers, especially those who are saddled with high rent and student loans.
• The average income for all home-buyers hit a record high: $107,000. That highlights the challenges that middle-income people face in buying a home.

Most homebuyers now need a six-figure income to achieve the 'American dream'
• Between July 2022 and June 2023, first-time homebuyers made up 32% of all buyers, according to the annual report from the National Association of Realtors (NAR) profiling homebuyers and sellers
• the uptick in entry-level buyers doesn’t mean homeownership is back on the table for everyone. A large portion of those first-time buyers were wealthier,
• Limited inventory and the resulting high prices squeezed out moderate-income buyers in 2023.
• The median income of the US homebuyer jumped 21.6% to $107,000 this year from $88,000, according to NAR’s 2023 report. The median household income was $111,700 for repeat buyers, up 16.4% from the previous report. And first-time buyers reported a median income of $95,900, up a whopping 35% from last year’s $71,000.
• All were well above the national median income of $74,580 in 2022.
Homebuyers Cash Out to Make Bigger Down Payments
• Because of the record run-up in property values during the pandemic, buyers who are selling a previous home have a particular edge. In the 12 months through June, big cashouts on previous homes helped repeat buyers put down a median of 19% of their purchase price — the most in any year since 2005
Housing Market 2024: Expert Predicts Up To 4% Rise in US Home Prices
• On the bright side, the national median list price fell to $425,000 in October from $430,000 in September and held steady compared with prior years.
• The total number of unsold homes fell by 3.7% (including those under contract), while there were 3.2% fewer newly listed homes.
• The average 30-year fixed mortgage rate in the U.S. stood at 7.50% as of Nov. 9, 2023, according to the Federal Reserve. Rates have recently hovered at their highest point in 23 years.

Disclosure:
Please note that all the information provided on this YouTube channel or through it is only for entertainment and educational purposes. The owner of this channel, Jimmy Bitzas, is not a realtor or a financial planner and cannot guarantee the accuracy of the information shared in this video. The information shared is subject to change, as is the nature of the fast-paced world we live in. Jimmy Bitzas cannot be held responsible for any errors in the information shared or any injuries or damages that result from the use of this information.