The housing inventory in the U.S. is at an all-time low, leaving buyers with limited options and sellers hesitant to sell. According to real estate firm Redfin, over 90% of mortgage borrowers in the country are paying lower rates than what is being offered today. This disparity has prevented sellers from listing their homes and has made it challenging for first-time buyers to find affordable housing.
Apart from the housing market challenges, other economic indicators paint a dreary picture too. RV sales, often considered an under-the-radar measurement of the economy’s health, is slipping. Also, Russia’s inflation issues and labor shortage have led to the country’s central bank considering interest rate hikes.
However, there are some pinpricks of hope. A former waitress has demonstrated how acquiring her first property in Detroit for $6,300 led her towards financial freedom after scaling to 35 units. Also, a new report from Miami University suggests that an uptick in the accessory dwelling units – commonly known as backyard homes – may arise owing to the increasing number of eager Americans looking for affordable housing options.
Goldman Sachs strategists have compiled a list of 24 stocks poised to latch onto a coming rally that could lead to rising stocks values in the coming year. However, on the cautionary side, top Wall Street investors have listed concerns over the long-term staying power of AI stocks.
In other news, Elon Musk shirking rent payments is creating troubles for Goldman Sachs. The firm helped originate a $1.7 billion loan to Columbia Property, which owns some Twitter offices. Musk has reportedly said he’d pay rent over his dead body.
Jeff Bezos has bought Amazon stock for the first time in over 20 years. However, given the timing of the trade, which happened in May, it is possible that he could be doing some Elon-Musk-like trolling.
Lastly, Argentina’s presidential frontrunner, Javier Milei, has proposed ditching the peso for the dollar. Milei believes that this move could help stop the inflation rate from surging, which hit 109% in May.
Overall, the current economic climate is mixed, with some areas of concern and some glimmers of hope.
