(RightIsRight.co) – The American Dream is under siege as home sales plummet and prices soar to record highs thanks to the failed Bidenomics policies.
Liberal policies and government mismanagement have created a perfect storm, pricing hardworking Americans out of the market and preventing them from achieving homeownership.
According to the National Association of Realtors, sales of previously owned homes plummeted by 4.9% in January compared to December, reaching a seasonally adjusted annual rate of just 4.08 million units.
Even more disturbing, the median home price in January skyrocketed to $396,900, a staggering 4.8% increase from the previous year and the highest ever recorded for January.
This relentless surge in prices, coupled with artificially high mortgage rates, is crushing the dreams of countless American families seeking to build generational wealth through homeownership.
Pending home sales drop sharply in December, as mortgage rates surge back over 7% https://t.co/JRPTFmOf7V
— CNBC (@CNBC) January 30, 2025
The root cause of this crisis is clear: the disastrous policies of the previous administration and their allies in Congress.
Despite multiple rounds of interest rate cuts by the Federal Reserve, mortgage rates remain stubbornly high, hovering around 7%.
“Mortgage rates have refused to budge for several months despite multiple rounds of short-term interest rate cuts by the Federal Reserve,” said NAR Chief Economist Lawrence Yun.
The impact of this crisis is far-reaching. First-time buyers, the backbone of the American Dream, accounted for just 28% of sales, well below the historical average of 40%.
Meanwhile, all-cash offers, often from wealthy investors and foreign buyers, made up 29% of sales.
Adding insult to injury, distressed sales, including foreclosures, increased to 3% of transactions.
This heartbreaking statistic represents thousands of American families losing their homes due to economic policies that favor the elite over hardworking citizens.
The upcoming spring selling season looks bleak, with weak buyer traffic reported despite an increase in listings.
This toxic combination of high prices, limited affordability, and dwindling demand sets the stage for a potential housing market collapse that could rival the 2008 crisis.
While the increased housing supply might provide opportunities for stronger buyers, more inventory and significantly reduced mortgage rates are essential for many consumers.
Without these changes, Americans may see their hopes of homeownership dwindling further away, setting an unsettling precedent for the housing market in 2025.
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