News
As spring buying season begins, home sellers lower list prices in response to higher mortgage rates
As the spring homebuying season begins, more homeowners are eager to sell their homes and are willing to lower their initial asking prices to attract potential buyers. According to Realtor.com, 14.6% of U.S. homes listed for sale last month had their prices reduced, up from 13.2% a year earlier. This is the first annual increase since May, and in January, the percentage of homes on the market with price reductions was 14.7%.
This increase in price cuts is higher than the monthly average dating back to January 2017, indicating a trend that benefits prospective homebuyers in a market where affordability remains a challenge for many Americans. Despite consistently high home prices, the reduced prices suggest smaller gains compared to previous years, as noted by Danielle Hale, chief economist at Realtor.com.
The rise in the share of homes with price cuts signals a shift towards a more balanced housing market, where buyers and sellers have a fairer playing field. The exceptionally low mortgage rates during the pandemic created buying power that led to bidding wars and substantial price increases in home sales. However, the recent price reductions indicate a return to normalcy in the housing market, offering hope for a more stable market for buyers and sellers.
While the percentage of homes with reduced asking prices peaked in October 2018 and again in October 2022, last year saw a significant increase as the average 30-year mortgage rate hit a 23-year high of 7.79% in October. The recent easing of mortgage rates in December created some relief, but the resurgence in rates in February is affecting sellers’ pricing strategies to accommodate potential buyers.
As the market awaits potential rate decreases in the coming year, sellers are adjusting their prices to align with buyers’ expectations and needs. This flexibility may alleviate the pressure on sellers to meet the market demands and could lead to a more balanced and favorable environment for both buyers and sellers in the housing market.
News
Is now the right time to invest in gold as prices have cooled?
The price of gold has climbed to record highs recently and has remained strong through much of April. And, that growth continued until the precious metal traded at around $2,390 per ounce on April 19, 2024. But since, growth in the price of the precious metal has cooled, with gold’s price now hovering around $2,300 per ounce.
This lull in gold’s price may represent an investment opportunity.
In general, investing is centered around buying assets when prices are low and selling them when prices are high – generating a profit on the difference between the two. So, considering the declines in gold’s price over the past few days, now may be the time to make your investment. But is buying gold during this lull in prices really a good idea?
Compare your gold investment options among leading brokers now.
Gold prices have cooled. Should you buy in now?
With gold’s price down from recent highs, you may be wondering if now is the right time to buy in. There are several reasons the dip in gold’s price may represent an opportunity to buy. Here are some of the biggest:
Prices may rise again
If looking at a gold price chart shows anything for certain, it shows that changes in the overall growth of the medal come in fits and spurts. Periods of price growth are typically followed by periods of declines and vice versa.
But with inflation rising in recent months – and with gold’s reputation as a safe-haven asset that can hedge against inflation – it only makes sense that the price of the precious metal will eventually start to head up again in the future. While attempting to time that directional change may be tricky, buying the precious metal while the price is down gives you the opportunity to take advantage of any upward movement that may be ahead.
Add gold to your portfolio now before prices have a chance to rise.
You may be able to make a quick profit
Gold isn’t known as an asset in which you can earn a quick return, but in today’s market, that may be the case. Don’t forget that in January, gold was trading at just $2,000 per ounce. And, by mid-April, the commodity’s price had climbed to around $2,400 per ounce. That’s about 20% growth in a matter of months, much of which happened since March 1 – an impressive climb for any investment asset.
Perhaps more importantly, gold’s price growth through the beginning of 2024 shows that the commodity doesn’t have to be a buy and hold style investment that you keep in a safety deposit box or precious metal depository for years to come. There’s also the possibility that the commodity’s price could climb further ahead, making it a compelling way to potentially generate a quick profit.
There are other benefits of investing in gold
There are other benefits of investing in gold that have little to do with the price growth seen thus far in 2024 – or the lull in prices seen over the past couple of days. Those benefits include:
- Inflation protection: Gold has long been considered an inflation hedge, and for good reason. When inflation drives the prices of consumer goods and services up – and the value of the dollar down – gold’s price tends to rise. So, it could be used to maintain the value of your portfolio during inflationary economic conditions. That’s important in today’s economic environment as stubborn inflation continues to weigh on the value of the dollar.
- Portfolio diversification: Gold’s price doesn’t always move in the same pattern that bonds or stocks do. So, mixing a reasonable amount of gold into your portfolio (up to 10% of your portfolio assets) as a diversifier could protect you from losses should one or more of your traditional portfolio assets fall in value. “If you have less than 5% – 10% of your net worth in commodities & FX (forex), you should absolutely consider adding exposure to gold and other precious metals,” says Vijay Marolia, money manager and managing partner at the wealth management firm, Regal Point Capital.
The bottom line
Gold’s price has fallen from recent highs – which may represent an opportunity to tap into growth ahead. However, gold isn’t simply a “buy while it’s low and sell while it’s a high” kind of investment opportunity. The commodity can also protect your portfolio from the stubborn inflation we’ve seen thus far in 2024 while acting as a diversification tool that could increase your risk-adjusted portfolio returns. So, consider adding gold to your portfolio today while it has the potential to grow in value.
-
News2 weeks ago
Juno discovers massive lava lake on Io
-
News2 weeks ago
Kevin McCarthy, former House Speaker, seeks revenge
-
News2 weeks ago
Possible Future Colleague of Trump: David Lammy, a Close Associate of Obama
-
Entertainment2 weeks ago
Bethenny Frankel reveals that her mother Bernadette Birk passed away from lung cancer
-
News2 weeks ago
Voyager 1 Communications Restored by NASA
-
News2 weeks ago
Is now the right time to invest in gold as prices have cooled?
-
Entertainment2 weeks ago
Kim Kardashian completes strange task before having her coffee