If Houses are not Selling, Why are Prices not Dropping? | Your Personal Bank Show

If Houses are not Selling, Why are Prices not Dropping? | Your Personal Bank Show | 07-01-25

54:00

Many people are confused. If houses are not selling, why are not prices not falling? There are several reasons.

Cause:

Housing prices increased an average of 50% from 2019 -2024 in the US. Some areas increased up to 100%.

Strong purchasing demand plus limited inventory was the primary reason for prices increasing.

Housing affordability is at historical lows due to significantly higher mortgage interest rates and higher purchase prices. This has destroyed buying demand.

The average American household can no longer afford to purchase the average home in America.

Effect:

Some homeowners are still hoping to cash in on the pandemic housing boom.

Low mortgages have a “lock-in effect”. Many are reluctant to sell their current home and replace with a much higher interest rate.

Others are not delusional, they cannot afford to move.

Projection:

There is hope on the horizon.

Housing inventory has increased to pre-COVID levels in many markets, particularly in the South and West.

Homebuilders are offering record levels of incentives for new homebuyers.

Rental rates have declined for 21 consecutive months. Investors are selling at record levels due to the declining rental income.

Job changes or life events are forcing some to move.

As time passes, the low interest rate mortgage “lock-in effect” is receding.

These are factors that will contribute to declining housing prices.

Us Government Debt is over $37 Trillion.

The US government’s lack of financial responsibility creates an opportunity.

This is the “Golden Era” of fixed assets. The best rates in 40+ years! Insured with guarantees.

– Your Personal Bank policies are insured, with guarantees, income tax-free, highly liquid, and likely to increase returns for the next 5-10 years due to higher bond yields.

– Fixed Index Annuities have the best upside potential in 40+ years with no downside market risk. The principle is guaranteed. Some offer signing bonuses up to 16% with strong upside potential.

– Guaranteed Lifetime Income is the highest in 40+ years. Some products offer up to 30% signing bonus. Other products offer up to 10% increased guaranteed lifetime income each year you defer.