We shift our gaze from the stock market and land squarely on real estate. The housing market is determined to rewrite the rules of gravity as prices continue to soar, even in the face of high-interest rates. Buckle up; we’re going on a real estate rollercoaster ride!

Home Prices: Breaking Records Like A Pro Athlete

Previously, a sharp increase in mortgage interest rates was enough to apply the brakes on the housing market. But that’s no longer the case. Now, the housing market is like a tech stock—zooming upwards and laughing in the face of traditional economic principles. With prices setting new records and rising faster than San Francisco sourdough, buyers have acclimatized to the once daunting high-interest rates.

The Unpredictable Market: Boom Towns to Ghost Towns

Remember the pandemic boom towns? Cities that saw an influx of remote workers looking for new homes? Well, those cities are now witnessing a weakening in their housing markets. However, they are slowly regaining momentum like a wounded superhero in a blockbuster movie. Notably, San Jose, San Francisco, Los Angeles, and Seattle experienced price growth in May.

Low Supply: A Classic Game of Hard to Get

The one constant in the world of real estate? It’s always about location, location, location… and supply! New listings are down by about 25% from a year ago. Why, you ask? Homeowners who have managed to nab sub-4% mortgage rates are holding onto their homes like they’re golden tickets, wary of paying higher interest rates on their next abode.

As we’ve learned today, the housing market is like a game of chess—it’s all about strategy and anticipating your opponent’s moves. With prices hitting new highs and homeowners unwilling to let go of their properties, navigating this market might seem more challenging than finding an affordable avocado toast in California.