Ok so, the housing market ended 2024 with more inventory, great. BUT… 54.5% of homes have sat unsold for 60+ days, the worst November stat since 2019.
And unfortunately, that makes sense. Mortgage rates are currently hovering above 7%, which isn’t NOT high. And home prices are continuing to rise. And inflation-adjusted homeownership costs hit their highest point in decades. These 3 major slowdown factors leave typical homes taking 43 days to sell, according to Redfin. And for some people, why sell when plenty of those potential sellers are locked into a pretty low rate. And with this vicious cycle it’s becoming more common for the people staying put to tap into some of their home equity for life events.
It’s clear that navigating this 2025 market will take creativity, patience, and some serious financial fitness. And that’s because there’s one major overarching problem. We said not too long ago that it’s Inventory. But it’s not just inventory, it’s that the stuff that’s for sale is starting to get stale. 43 days. The good news? Buyers have a bit more negotiating power as the market cools.
Read more here
Buy In Bulk Costco Special
And how is creativity manifesting in the housing market in response to the affordability problem?
A Los Angeles developer is stacking 800 affordable apartments on top of a Costco in Baldwin Village, a lower-income pocket of Baldwin Hills, complete with a rooftop pool, fitness center, and two levels of underground parking. Residents get bulk pickles downstairs, and Costco gets an automatic customer base upstairs a win-win.
This marks Costco’s first foray into residential developments, and it’s definitely breaking the mold. According to Thrive’s founder the smart idea here is that the rent that Costco pays Thrive will help the developer rely less on government subsidies for the affordable housing.
See, Thrive opted not to pursue traditional affordable-housing subsidies like the federal Low-Income Housing Tax Credit, because for them , the process was described as “burdensome”… “can delay project”. For instance, federal tax credits require developers to undergo environmental impact reviews, which can take a significant amount of time to gain approval.
Read more here
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