What’s The Tea with 4D? 🍵

Hello friends!

Did you know April is Fair Housing Month? Yep, it sure is! Time to spill the tea on this important topic, folks! And hey, ever wonder about the backstory of Fair Housing Month and why it’s a big deal?

In 1968, President Lyndon Johnson signed the Fair Housing Act into law. This was historically groundbreaking because it expanded existing law to, “prohibit discrimination concerning the sale, rental, and financing of housing based on race, religion, national origin, sex - including gender identity and sexual orientation, [and as amended] handicap and family status.”- Hud.gov

It is important to understand that up until then, the Civil Rights Act had been passed, but housing was not part of it. The lack of legal protections left many people vulnerable to discriminatory housing practices. The Fair Housing Act outlined the importance of ensuring housing access to all Americans. It’s important to recognize how it made an incredible difference in our housing landscape and culture.

As an agent, I am deeply committed to equitable treatment for everyone I work with. I believe that everyone should have the opportunity to be a homeowner should they choose to do so. As real estate agents, we have a very important role in ensuring our clients have access to homes and home ownership. And the Fair Housing Act further solidified the importance of that commitment being one of fairness and equity. We continuously recommit ourselves to this progress.

As a member of the National Association of Realtors, I appreciate their slogan with respect to fair housing:

Reflect. Repair. Renew. Because That’s Who We R®.

Thanks for reflecting with me. Here’s to many more moments of forward motion!

Is It Getting More Affordable To Buy a Home?

Over the past year or so, a lot of people have been talking about how tough it is to buy a home. And while there’s no arguing affordability is still tight, there are signs it’s starting to get a bit better and may improve even more throughout the year. Elijah de la Campa, Senior Economist at Redfin, says:

“We’re slowly climbing our way out of an affordability hole, but we have a long way to go. Rates have come down from their peak and are expected to fall again by the end of the year, which should make homebuying a little more affordable and incentivize buyers to come off the sidelines.”

Here’s a look at the latest data for the three biggest factors that affect home affordability: mortgage rates, home prices, and wages.

1) Mortgage Rates

Mortgage rates have been volatile this year – bouncing around in the upper 6% to low 7% range. That’s still quite a bit higher than where they were a couple of years ago. But there is a sliver of good news.

Despite the recent volatility, rates are still lower than they were last fall when they reached nearly 8%. On top of that, most experts still think they’ll come down some over the course of the year. A recent article from Bright MLS explains:

“Expect rates to come down in the second half of 2024 but remain above 6% this year. Even a modest drop in rates will bring both more buyers and more sellers into the market.”

Any drop in rates can make a difference for you. When rates go down, you can afford the home you really want more easily because your monthly payment would be lower.

2) Home Prices

The second big factor to think about is home prices. Most experts project they'll keep going up this year, but at a more normal pace. That’s because there are more homes on the market this year, but still not enough for everyone who wants to buy one. The graph below shows the latest 2024 home price forecasts from seven different organizations:

These forecasts are actually good news for you because it means the prices aren't likely to shoot up sky-high like they did during the pandemic. That doesn’t mean they’re going to fall – they'll just rise at a slower pace.

3) Wages

One factor helping affordability right now is the fact that wages are rising. The graph below uses data from the Federal Reserve to show how wages have been growing over time:

Check out the blue dotted line above. That shows how wages typically rise year after year. If you look at the right side of the graph, you'll see wages are climbing even faster than normal right now.

Here’s how this helps you. If your income has increased, it's easier to afford a home because you don't have to spend as big of a percentage of your paycheck on your monthly mortgage payment.

Bottom Line

If you stack these factors up, you’ll see mortgage rates are still projected to come down a bit later this year, home prices are going up at a more moderate pace, and wages are growing quicker than normal. Those trends are a good sign for your ability to afford a home!

Let's chat over coffee to discuss your real estate plan and address any questions you may have about the current market. And your first cup will be on me! ☕️

Click below to book a date and time that works best for your schedule. After booking, I'll reach out to confirm the location. I look forward to chatting with you soon! 😊