What’s Happening in the Housing Market? Rising Rates, Record Low Sales, and Election Impact

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The housing market is inflated and oversaturated with homes being on the market with astronomical price tags just stagnant for months. It is very clear that our generation will be likely one of the most devastating bubble pops in modern history. Seeking best possible ways to grow 250k into $1m+ and get a good house for retirement, I'm 54.

It is irrelevant how low interest rates are if the house is over priced

Stop allowing corporations and foreign investors from buying property or tax them heavy.

Rates are being lowered to benefit financial institutions and their loans...and that's why our loan rates are still high...to give the financial institutions financial space.

Housing should never have been turned into a commodity.

Sales are dropping but not prices enough to increase sales. The market has out priced itself.

All your points are valid, but I believe you left out an important consideration: the housing market is seasonal. As we approach winter, buyer activity tends to drop to its lowest point, with fewer people looking to purchase homes during this time. During this time, both buyers and sellers often pause on transactions due to holiday distractions and colder weather, which can make it less appealing to move or list homes. This seasonal slowdown can impact demand, sometimes leading to lower prices and more room for negotiation for buyers who are still active in the market.

I think they have two options. Let the housing market crash which they should have let happen in 2020. Or lower interest rates again to make them affordable. I’m assuming they will do the easy thing and lower interest rates thus increasing inflation too.

Prices are too high, and people are waiting. Those who wanted to buy houses at these prices have already bought them, so even if you have "good conditions", the demand has steadily been dropping as more people are waiting on the side lines. This also can mean that not just individuals, but corporations are also pausing on their purchases as well since maybe they have also run out of funding and have hit their leverage limit. So this is basically a stand off between the sellers and the buyers. Who will give in first? Will the sellers start dropping prices first and taking on losses, or will the buyers give in first, and buy what they perceive as overpriced homes? Social media plays a power influence on people's demands. If what is popular in social media is no longer "flips", and becomes "losses" or "rent better than buy" or "house poor", and it becomes generally negative view of purchasing real estate, then it means houses are over priced. Lets see which party gives in first. The banks, the sellers, or the buyers.