What unnerves people most? Family? Traffic? Inflation? The expense of everything? For buyers looking to find a new home, the situation is especially concerning as rates have escalated in every aspect of the process. Real estate prices have risen 20% since last year, and if the trend keeps its current trajectory, most people will be unable to afford anything on the market. Costs are going up, choices are going down, and rates are through the roof. Developers are building fewer properties now that higher interest rates had stemmed the demand for homes, in contrast to the construction boom when mortgages were cheaper. Homes that are less expensive due to foreclosures or in forbearance are likely to be bought up by large banks and sold to developers, who will essentially turn around and rent them out.
Most experts have traditionally counseled that getting into the market at any level will help buyers get a foot in the door to eventually trade up to bigger and better properties. That may have been the prevailing wisdom at one time and how these experts have made their fortunes. Now, the reality is that most people are looking to buy a home to build equity in something for their family and not have to spend all of their hard-earned money on high rents. What options do anxious homebuyers have to help navigate through the minefield the real estate market has become? This week, Jeff's guests include:
- Tyrell “Big Tex” Robinson (TDR Financial Services) discusses the growth and income fund.
- Nina Penny (reversemortgage.net), a reverse mortgage expert, joins Jeff to explain how the new program "is not your parent's reverse mortgage."