The Expert Podcast

• Despite rising interest rates and a slowing market, home buyers are still facing bidding wars and high prices on homes.
• As of now, interest rates have increased to over 7%, and they may rise to 8-9% within the next 6-8 months.
• The problem isn’t just high prices, but affordability with the higher mortgage rates.

• The traditional 30-year mortgage is becoming unsustainable for many buyers due to high interest rates and the large monthly payments.
• Many buyers can’t afford the mortgage payments on an average house at rates of 7-8%, especially for houses priced around $400,000-$500,000.

• Wall Street hedge funds are coming up with new models for homeownership, such as fractional ownership, hybrid ownership, and 40-year mortgages.
• These new models resemble the way cell phones are now financed – where phones are rented or paid for in installments, rather than fully owned outright.

• There is still enough demand from buyers who are willing to pay higher prices, including cash buyers and those who can afford high mortgage payments.
• Inventory remains a major issue, with a shortage of homes available for sale, especially in the $200,000-$300,000 range.

• Buyers looking to get into the market may have to adjust their expectations and consider homes in the lower price ranges.
• It's worth considering whether to keep renting, or to pay a higher mortgage and invest in a home that may not be the dream home but could still build equity over time.

• The window for first-time homebuyers may be closing, and homeownership might not remain a mainstream part of life for many Americans.
• Future discussions will focus on how the homeownership door may close for new buyers.