You know the feeling when you’re shopping online for jeans, and everything in your size is priced like it’s made of gold thread? That’s pretty much the scenario for house hunters right now.
According to Goldman Sachs, the current housing market is a bit like a top-shelf tequila bar – only four cities are actually affordable for the average Joe and Jane. The cities playing the role of the humble yet high-quality tequila are St. Louis, Detroit, Chicago, and Baltimore. These are the places where monthly mortgage payments don’t gobble up more than 25% of household income, a rare treat in today’s market!
Now, for the slightly bitter chaser: Home prices are predicted to drop by just 2.2% this year. That’s less of a dip than you’d get from a double-dip chip at your favorite Mexican restaurant. However, the strategists from Goldman Sachs are forecasting that the worst of the housing price drops is already behind us – phew!
Power up: By creating goals and sharing them in public with your friends and family, you’ll increase your chances of success! You can download the Wellthi app here, and act by July 3, you could win $10,000 for just posting your financial goal in the app!
But don’t start celebrating just yet. They also predict that inventory will remain tight (like the last pair of yoga pants on sale) and that we’ll be dealing with high mortgage rates. Imagine paying for VIP concert tickets and still being stuck in the back – that’s what a 6.4% rate for a 30-year fixed mortgage feels like.
In some uplifting news, just like your favorite band releasing a surprise album, there’s evidence from the good ol’ days (think 1995, 2000, and 2018) that home prices tend to climb after a period of policy tightening. With the Federal Reserve expected to ease off policy tightening, we might just get lucky.
So, as we make our way through 2023, the great housing hunt may feel like trying to score front-row tickets to a Beyoncé concert – a little tough, maybe even impossible. But remember, at Wellthi, we’re here to help you navigate the mosh pit that is the real estate market. Stay financially savvy, friends.
If you ever feel down about house hunting, just remember – adulting is like assembling Ikea furniture. It’s a bit frustrating, maybe even confusing, but oh so satisfying when you finally nail it!
You can download the Wellthi app here, and act by July 3, you could win $10,000 for just posting your financial goal in the app!
Go Deeper
Navigating the Current Housing Market: Zillow’s resource section provides timely articles and insights to help you understand the current housing market.
House Hunting Tips: Realtor.com shares secrets that real estate agents use when they are looking for their own homes, a great guide for any house hunter.
Wellthi reels in significant investment to reshape social finance and mobile banking: Learn more about Wellthi and our mission to empower everyone to meet their financial goals.
