The American dream of buying and owning a home has become fleeting for most people. Costs are too high; interest rates are still very high and pay has not kept up with any of it along the way. The median home price has exploded from $104,000 in 1993 to now $405,000 in 2024. Just ten years ago in 2014, it was $201,000.
As the current economy sits teetering on the edge of recession, and a big presidential election looms, it is now making people who are ready to buy a home hold off until the November dust settles.
Economist Vance Ginn says with all of the uncertainty and financial woes, this is not a shocking development.
"There are high interest rates, economic uncertainty, and inflation is hitting their pocketbook on everything else, besides just buying a home," he says.
In Houston, we have not escaped the hikes, albeit it is less than the median. The average home prices has climbed one percent in the last year locally, currently sitting around $266,000, according to Zillow.
If Donald Trump wins in November, the economic hope that brings will surely drive some people back into the market. After all, it is human nature to have hope in something new, or something proven to work, after experiencing a downturn.
But even if he does emerge victorious, it is a long road ahead.
"If we had pro-growth policies in place of lower taxes, and we get lower interest rates and economic growth...it will still take six months to a year before we see much difference," he says. "You cannot just undo what has been done...it is going to take some time."
Ginn adds that the Fed's decision on interest rates later this month will tell if we are going in the right direction. But also adds the Fed will sometimes do things like cut rates before an election to prop up the economy.
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