Why Real Estate Prices Will Decrease By 30%…

The real estate market could see up to a 30% correction in the coming year(s), and there’s math to back it up!At it’s low last year, you could get a 30-year mortgage for around 2.75%. Fast forward to September 2022 and the average national mortgage rate is 6.85%, and they will continue to rise. What does that mean? Let’s look at the numbers.For a $500,000 mortgage the monthly payment for principal and interest was $2,041 at a 2.75% rate. For a $500,000 at today’s rate of 6.85% (Sept 2022), the monthly payment for principal and interest would be $3,276.That is a $1,235 increase for the same amount borrowed!! That is a 60% increase in monthly payment, and that’s all going to interest. Most Americans buy homes based on what they can afford monthly. So let’s say last year you got a $500,000 mortgage and paid $2,041 per month. At today’s 6.85% interest rate, if you wanted to keep the same payment of $2,041 per month, your mortgage would have to be $311,500, a 37% DECREASE from $500,000. So with affordability being 37% lower, we’ve got to think prices will correct accordingly by ~30% while interest rates remain high.This will mean there will be good opportunity to buy low as real estate, generally speaking, always goes up over time in the long run.Build liquidity and/or your real estate investment skill set now as there will be plenty of opportunity in the next year or two!Head to 90dayhabits.co to grab your 12-month planner to OWN your 2023! Timestamps:[1:31] Real estate prices going down.[3:17] How much and why?[7:28] It costs 60% more every month to get a $500,000 loan. --Let's Connect!To get more info and updates on the podcast@gettingmagneticFollow our personal Instagram accounts@sandyclaus7@wellnesswithwadeCheck out our website for all things Getting Magnetichttps://www.sandyandwade.com/