Are the keys to your dream home slipping through your fingers as mortgage rates climb? This week's episode tears into the real estate market's latest numbers, offering an eye-opening perspective on what those soaring rates really mean for prospective homeowners. With a candid look at the cold, hard data—from a marginal uptick in mortgage applications to a worrying dip compared to last year—we're laying it all out on the table. If you're part of the average American household pulling in $70,000 annually, you'll want to lean in as we dissect what these financial gymnastics mean for your shot at the white picket fence dream.
But it's not all doom and gloom; there are glimmers of hope amidst the market mayhem. We navigate through the murk of single-family home construction declines and the curious case of immigration's effect on housing shortages. Amidst this topsy-turvy landscape, we also spot rays of resilience shining from the manufacturing sector, hinting at an economic stability that belies the housing hustle's current tremors. Whether you're a seasoned investor or a first-time buyer, this episode serves up insights and strategies that could help you make your next move with confidence. Join us as we break down if it's wise to play the real estate game now or if you'd be better off sitting on the sidelines, waiting for the dust to settle.
This episode is brought to you by Premier Ridge Capital.
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With mortgage rates soaring, can you still afford your dream home? Let's find out in this week's Real Estate Market Update. But before that, let's take a look at this week's housing market data. Mortgage purchase applications are up 5% from last week, but compared to last year they're down 10%. So you're scrolling Zillow and Google again. Hmm, looks like the same houses are still out there from last month. Guess the market is kind of eh. Right now, however, the average house price is $380,250. That's basically enough to deck out your entire apartment. The price tag that on most houses is currently hovering around $413,225.
Speaker 1:
Locking down a house nowadays means shelling out $2,775 a month on your mortgage at a 6.88% interest rate. More houses are hitting the market. There's a 10.8% jump in new listings compared to last year. There are 9.6% more houses available for you to browse this year compared to last year. So happy house hunting, guys. And houses are selling pretty fast these days. The typical one gets snatched in about 35 days and that's just enough to binge watch your favorite show on Netflix. So, guys, it's interesting. It's a weird market because interest rates by the way, as I record this, the 10-year treasury is up to 4.56%, which means interest rates are up Hovering a 30-year mortgage is hovering close to 7% with someone with an excellent credit score and at these prices it really becomes unaffordable. When the average medium household price in America it's about $70,000 a year household price in America it's about $70,000 a year, how can a household making 70 grand a year afford a house of at $413,000 at the median house price, $413,000 at a 7% interest rate? You do the math. It's pretty rough out there for middle America.
Speaker 1:
And here's what's currently happening in the housing market in a bit of a mixed bag. On one hand, fewer single family homes are being built, probably because mortgage rates are on the rise. This means it could be harder to find a house to buy and those houses might cost more than they did before. As I just explained a moment ago, there was a significant decrease in single-family home building that started in March of 2024, falling guys listen to this falling 12.4% to a rate of 1,000,000.022 million units. Permits for future construction of single-family homes also dropped by 5.7% and on the other hand there's still a shortage of houses overall. So prices are likely to keep going up. At worst they're going to most likely stay where they are and go up gradually. But I don't see a major decline unless rates go up tremendously. But the good news is that the manufacturing industry seems to be doing well, with production on the rise. This could be a sign that the economy is overall doing okay, even if the housing market is a bit shaky.
Speaker 1:
So back to this data I've been talking about in this podcast, the immigration situation that we have in America. We've had 1.8 million immigrants that we know about across the border over the last few years. That we know about, guys. We just got this data that there's a shortage of housing starts, so permits are down. Builders are not building. These rates are too high for builders to build. The numbers, the math doesn't math. The numbers don't make sense. So 2 million people I'm going to round it up to 2 million 2 million new immigrants in our country. They got to be housed somewhere, they got to go somewhere.
Speaker 1:
Guys, while real estate is experiencing right now a little bit of a slowdown, I believe that in the long haul, real estate is going to go up even more. So if you have an opportunity to grab a house and there's an opportunity where you can buy a house with these interest rates and the math makes sense, do it and then refi later, and I know I know a lot of you are going to say I go by math, simple math. 2 million people came in to our country. We already had a shortage. You're seeing the data. The data is telling us that construction starts has dropped and builders aren't building right now. So same thing that happened in 2008 in the recession Builders stopped building because of what was going on with the over inventory. Same thing is going to happen again Builders stopped building. Bunch of people that came in. And what are the main necessities of a human being? Food and shelter. We have to house these people.
Speaker 1:
So if you're not in the real estate game and you don't own real estate, I would highly recommend if you want to create wealth, buy real estate. Don't wait to buy real estate. Buy real estate and wait, says the old saying. And if you're looking to do that, by the way, I have a course go to martinreimasterycom and learn how to do real estate and learn how to invest in real estate. There. I teach you how to buy real estate. I give the fundamentals how to find deals, how to buy them, how to do the numbers and all of these things that I talk about in this podcast. Join my community and learn how to create wealth to real estate investing. And that has been your weekly real estate market update. I'll see you guys next week, peace.