"bout to be broke..." -most americans in October

"bout to be broke..."
-most americans in October
This week's top headlines

Once worth $47 billion, WeWork shares near zero after bankruptcy warning

Shares approached zero on Wednesday after the one-time startup darling warned it could go bankrupt....
 
Home Purchases Fell Through at the Highest Rate in Nearly a Year in August
Nationwide, nearly 15.7% of homes that went under contract were canceled in August. That marks the highest percentage since last fall when mortgage rates...
 
Demand for Vacation Homes Sits Near 7-Year Low Due to High Housing Costs, Return-to-Office Mandates
Mortgage rate locks for second homes are down nearly 50% from pre-pandemic levels, compared to a 33% drop for...
 
U.S. Homeowner Equity Decrease by $287 Billion Over the Last 12 Months
for the second quarter of 2023, U.S. homeowners saw home equity decrease by 1.7% year over year, representing a collective loss of $287.6 billion. However, homeowners gained...

 

Hey gang,
 
so guess what? The Federal Reserve has dusted off its crystal ball and made a prediction – and it's not about alien invasions or the next big TikTok dance craze.

No, they're forecasting that by October, Americans are going to be going through their savings like it's a Black Friday shopping spree!


 
 


But hold on to your wallets, this doesn't mean the economy is doing a swan dive into the abyss. Instead, it's more like we're all going to be doing the financial cha-cha in our day-to-day lives.

The main culprit for sieving off our savings is how expensive it is to live in our homes. Rent prices have gone up 18% since 2020, and even with the recent pricing correction, home values have come up 28% since 2020. And don't even get me started on mortgage rates...


 


Outside of real estate, used car prices are somehow up 44%?! And here I thought the moment you drove a car off the lot it depreciated. Whodathunk a car would become an asset that appreciates?

 
 

Even food prices are insane. Breakfast cereal prices are up 29% since 2020. It's like your Cheerios have turned into golden nuggets overnight! 

To add insult to injury, while expenses have been sky-rocketing, wages are just chillin...


 


So, what are we doing to bridge the gap?

Unfortunately, to keep our current standard of living we've been charging up our credit cards and diving headfirst into our savings accounts like Scrooge McDuck into a pile of gold coins.

Household debt is up to $17.06 trillion, primarily due to increase of credit card balances

 


Thanks to the Federal Reserve's money-printing marathon and some good old corporate greed, prices just keep on going up... 

That has forced most consumers to put on their bargain hunting ninja attire and looking for cheaper alternatives. 


 


The Federal Reserve itself says we've been burning through our savings: from $2.1 trillion in 2021, we're down to a mere $190 billion in July, dropping by nearly $100 billion per month! 

Oh, and just to add a little spice to the financial potluck, student loan payments are about to make a comeback in October, which will affect about 43 million people.


 


Now, let's talk bankruptcies – they're on the rise, and it's not because businesses suddenly decided to throw in the towel. Nope, it's the rising interest rates making it tough for small businesses to catch a break. 

But it's not all doom and gloom! My wife and I sat down and reviewed our finances and I'm pleased to share that we're one of the lucky who can live comfortably the rest of our lives...

...as long as we die by Thursday :o[

As always, my promise to you each and every week is to act as your personal assistant and help you understand what's happening in the world of real estate.

If there's something you'd like me to include in a future newsletter, please let me know!

until next week!

-realtor josh

Post a Comment