Against a background of promises by President-elect Trump to lower prices, America's real estate market may prove to be a challenge.

Mortgage rates remain at 20-year highs while buyers face record-high home prices.

The Federal Reserve's rate cuts have been implemented but this has yet to affect the housing market or mortgages. 

Retail rates still hover at the 7% mark, and this is frustrating American families with big property ambitions.

Mortgage rates are influenced by various factors besides the Federal Reserve's recommended cash rate. 

These factors include the overall health of the economy and fluctuations in the yield of the 10-year Treasury bond. 

Notably, the 10-year Treasury yield experienced a significant increase following the presidential election due to concerns that proposed policies, such as import tariffs, tax reductions, and immigration restrictions, could lead to inflationary pressure.

Affordable housing remains a challenge, just as it does in many other Western democracies. At the heart of the issue is supply – we're not building enough homes to meet the demand of population growth. 

This fundamental problem causes problems downstream, too. Rent continues to rise in the majority of American cities and towns, contributing to the cost of living crisis. 

Right now, the Federal Reserve's aim to further reduce interest rates – they dropped to 4.75% in November – has helped cut hundreds of dollars in mortgage costs across the year. 

Another positive sign for the next 12 months is the analysis of the National Association of Realtors that prices will stabilize across the country. So the American dream of homeownership remains a possibility for the vast majority of young Americans. 

As an experienced real estate agent, I know that finding a place to call home is a deeply personal journey. It's not just about market trends or interest rates. It's about finding the space that truly fits your life. 

Whether you're seeking a vibrant community, a peaceful retreat, or a place to grow your family, prioritize your needs and aspirations. Don't get caught up in the hype or try to time the market perfectly. 

Focus on what brings you joy and stability, and make your housing decisions based on your own unique circumstances and long-term goals. The right home is out there, waiting to be discovered.

At Key Connections Real Estate, we understand that navigating the housing market can feel overwhelming. Whether you're buying your first home, looking to upgrade, or planning for the future, our experienced team is here to guide you every step of the way.

Let us help you turn your dream of homeownership into reality. Contact us today to start your journey!