Frozen real estate market when buyers wait for Jerome Powell’s price discounts

If you have turned through Real estate pages Recently – or just try to pull Redfin or Zillow – something clearly clear. No one is moving and no one is buying homes now.

Recently, I look at Zillow in one The most market in FloridaIt is a 30A road in Panhandle. As it was almost impossible to see a red point for something for sale, it now looks like a heat map in which the B-52 bomber lights up from Bunker Busters.

You have homes sitting on the market for weeks-or months-with significant price cuts while potential buyers are staring at high mortgage rates, stagnant sales and some places they bought, believing that the work office rules of the house will continue forever.

unless Federal Reserve and Jerome Powell Get their work together, our real estate ecological system will become a major passenger.

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Why does it seem to be frozen

Do you think that the summer will go to life – but during the summer of 2025? Cockroaches. The current home sales in June are only 3.93 million-a decrease of 2.7 % from May and the water is on an annual basis. This is the slowest pace since last September. Meanwhile, the new home sales were barely rolling at 627,000 annually, and it is still 6.6 % less than June 2024. It seems as if everyone hit the stop button after watching the latest “million dollars” offer on Bravo.

Golden handcuffs, frozen dreams and high stocks

We see a phenomenon called “golden handcuffs”. People do not move – not because they love their homes, but because they are He cannot leave. The jobs cool, the transport privileges are rare, and many of them carry the shares in the homes they bought for years at low interest rates, which are simply cannot mutate without sacrificing financial stability.

It is a market that is kept hostage to its past Unemployment rates She hovers near 4.3 % does not help the problem. To the boot, there were many people who were dreaming not to return to the daily office that grinds with their mountain or their smuggler on the beach, and now the president called everyone in the office from 9 to 5 old.

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Certainly, the stock is Technically UP- The active menus increased by 24.8 % on an annual basis in July, reaching their highest levels after birth. But the highest inventory did not help much. This is because the ability to bear costs, not availability, remains the point of suffocation.

Meanwhile, in the markets of the sun’s belt such as Austin or Miami, prices are already collapsed – approximately 15-19 % decrease since 2022. However, this does not mean that buyers are overwhelmed. It is not when tens of thousands per year in insurance costs and the costs of new property have become.

In fact, the insurance premiums of the growing house owners increased from $ 2656 in 2021 to more than $ 3,303 in 2024 and in some parts of the country, you cannot even buy insurance in your home without astronomical cost.

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Real estate mortgage rates reach their lowest level so far

The average firm mortgage for 30 years was 6.58 % this week, the lowest level since October 2024. This may seem to be good news on paper-but in December, industry expectations said that 6 % rates could open 6.2 million families to provide average price. hunting? Prices are not yet present, and even if they decrease to this standard, the issues of the ability to withstand costs work deeper.

Can Jerome Powell come to rescue?

The short answer yes.

president Donald Trump Nearly a weekly dose of punishment for Federal Reserve Chairman Jerome Powell has been dealt with. And then. Although mortgage rates may not be linked to the federal reserve style and are closely related to the return of the treasury bonds for a period of 10 years affected by a broader group of factors, Powell can stimulate a serial reaction to start the rotation cycle of the low interest rate environment in America.

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Americans need more than anything at the present time, or the number of sellers stopped in the market will continue to climb on a monthly basis.

During the recent Congress certificate, Powell said it was not clear that the interest rates were reduced Reducing housing costsOn the pretext that the short -term supply was the high price source.

However, this narration of this inventory fluctuates strongly and the reality is that some people do not move due to the high uncertainty and unwillingness to get out of the mortgage rate by 3 % and move to a new house by 6.6 %. It is extremely difficult to move to a larger house with these two workers waving on the horizon for most of the home buyers.

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In many countries around the world, including now Italy, France, Spain, Ireland and Germany, real estate mortgage rates are 4 % properly. Many other countries range between 4 % and 5 % while we are sleeping near 6.6 %. In addition, the stock level as of July was more than 1100,000, which brought us to pre -favorite levels.

that it It’s time for a height To stop stopping the time to reduce interest rates and start acting. If he doesn’t, the Americans will eventually be late one day and more than just a dollar.

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