Too hot to handle

Plus, Where prices are dropping + Retirement as a state of mind

͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌  April 30, 2022 | Issue #40

Good morning! This week we're talking about Elon Musk, housing markets where prices are dropping and how to prepare to buy a home — eventually. Too hot to handle Chris Gash for Money If the prospect of finding a new home feels like more of a mirage than a reality, you're not alone. With mortgage rates rising, there are signs that discouraged buyers are starting to step away from the market.  For instance, pending home sales dropped 1.2% in March, according to the National Association of Realtors. Plus, the share of offers facing competing bids dropped from 67% in February to 65% in March, according to Redfin. It was the first time bidding war rates declined since September. Whether you're taking a breather after months of searching or have been hanging back as you wait for the right moment to strike, how you use the months ahead will be critical.  As Aly J. Yale put it in her latest story for Money, "It's frustrating, to be sure, but taking a step back can also be a good way for buyers to regroup and strategize for the next time they enter the market." Aly lays out steps that anyone thinking about buying a house can take to prepare. They include improving your credit profile, saving up and determining what needs to change for you to start your search. Her tips will help you take control of your finances — and that's important no matter what happens with the housing market.  For more: Housing Market Too Hot? What to Do While You Wait for Competition to Cool Prices are dropping — if you look in the right places In this strange market, the question of what to do next can be vexing for sellers, too. In the big picture, sellers still have the upper hand. However, if demand is finally waning, the days of slapping a fantasy price on your home and having a reasonable shot of achieving it might be ending, too. (FYI, this is not a strategy we'd recommend.) According to Redfin, 13% of sellers dropped their price during a four-week period this month, up from 10% during a comparable period in March. Meanwhile, Realtor.com found at least 10 markets where prices fell — for a host of reasons — between March 2021 and March 2022. For the full list, including one surprising West Coast metro, read: 10 Cities Where List Prices Are Dropping Also: This U.S. City Is the Most Affordable Housing Market in the World Retirement as a state of mind According to Charles Schwab, I probably won't own a home in my golden years. The investment firm recently estimated that only 48% of millennials will "enjoy stability through homeownership" in retirement — compared to 74% of Gen Xers and 75% of baby boomers. That sounds pretty scary, given how many retirees today depend on their home equity to make ends meet. However, Schwab's report argues this shift might not be such a bad thing. Instead, it may reflect a necessary change in attitudes about retirement. "Retirement isn't really a switch you flip at a certain age anymore," the Schwab report states. "It's a financial state that allows for the flexibility to make work optional." For more: Less Than Half of Millennials Are Expected to Own a Home in Retirement Elon to the rescue? ICYMI, Elon Musk reached a deal to buy Twitter this week. If the deal goes through, Musk will be pretty busy with his (controversial) plans for the social network. But that hasn't stopped people — including Musk himself — from fantasizing about other companies the world's richest man could "fix." On Thursday, Musk tweeted: "Next I'm buying Coca-Cola to put the cocaine back in," a reference to the soda's original recipe. Later that night he shared a screenshot of an obviously fake tweet claiming he would buy McDonald's and "fix all of the ice cream machines." The real Musk debunked that rumor, saying, "Listen, I can't do miracles ok." Another bogus Musk post making the rounds declares, "Now I am going to buy Zillow and fix their Zestimates." To be clear, this is not a real tweet from Musk. But it does point to a very real frustration a lot of homeowners and real estate agents have with the listing site's home value estimates. To understand why, read my story on the complaints that plague the Zestimate: After Zillow's Home-Flipping Fiasco, Think Twice About Trusting 'Zestimate' Home Values Happy hunting, P.S. Share your retirement dreams with me on Twitter @samsharf or via email at sam.sharf@money.com. P.P.S. Have a friend who loves real estate or is looking for a home of their own? Please forward them this email or send them to the Money Moves subscription page. Money's Essential Home Buying Resources: Spring 2022 On the hunt? Check out Money's Mortgage Calculator, list of The Best Mortgage Lenders and look at the latest mortgage rates Thinking of refinancing? Our list of The Best Mortgage Refinance Companies can help. You can also use our Mortgage Refinance Calculator or these refi tips Key question: How much house can I afford?

This newsletter is free because Money earns a commission when you click or make purchases from the links in this email and on our site. We also receive compensation for some of the products and services featured in this message. Offers may be subject to change without notice. Learn more about how we make money. Privacy Policy • Advertise With Us • We're Hiring! To stop receiving these emails, unsubscribe or manage your email preferences. Copyright ©2022 Ad Practitioners, LLC. All rights reserved. Metro Office Park Calle 1, Building 7 Suite 204, Guaynabo, Puerto Rico 00968, USA