The real estate market is under serious pressure, and it’s not because of interest rates. According to Jennifer Zandell, a 30-year mortgage and real estate veteran and key strategy specialist at Zang Enterprises, the real issue is inflated home prices. In a revealing discussion with Lynette Zang, Jennifer explains why now is not the time to buy and what smart investors should be doing instead to prepare for what's coming.
Rising Inventory Signals a Market Shift
Since August 2024, Arizona has seen average home prices drop by about a quarter of a percent each month. That might not seem like much at first glance, but there is a major trend forming. Inventory is rising rapidly. Arizona now has more homes on the market than at any point in the past seven years, taking us back to pre-2018 levels.
As Jennifer points out, rising inventory is a key signal of a shift from a seller’s market to a buyer’s market. When supply goes up, prices tend to fall. This shift is unfolding across the country and the implications are significant.
Rates Are Not the Real Problem
Many assume that higher mortgage rates are the main reason homes have become unaffordable. But Jennifer and Lynette agree that is not the case.
Rates today, hovering around 6.5 percent for top-tier borrowers, are actually historically reasonable. Back in 1978, Lynette bought her first home with a 12.5 percent mortgage rate, yet it was affordable because prices matched wages and financing terms. The problem today is that home prices are grossly inflated relative to incomes and rental yields.
Foreclosures and Job Losses Are Adding Pressure
The cracks in the system are beginning to show in several troubling ways:
- Over 6.1 million Americans are currently in foreclosure as of January 2025.
- Inflation continues to rise.
- Job losses are increasing as large companies shut down or file for bankruptcy.
These factors will only push more homeowners into financial distress, flooding the market with even more inventory and further driving down prices.
Buyers and Sellers Are Locked in a Standoff
Right now, the market is at a standoff. Sellers are holding out, hoping to recover their investments from purchases made at the 2020–2021 peak. Many even put significant improvements into their homes, but are now unable to rent them at profitable rates or find buyers willing to pay their asking prices.
On the other side, buyers are staying out of the market. They see the inflated prices and high borrowing costs and are choosing to wait. Until sellers adjust their expectations, the market will remain stagnant. Jennifer predicts that when prices do fall, we could see at least a 20 percent decline in many areas.
Not All Markets Will React the Same
Some regions, particularly fast-growing metro areas like Scottsdale, Arizona, may not see the same level of decline due to continued demand. However, even these markets are unlikely to remain completely insulated. Prices will come down—it is just a question of how much and how soon.
The key is not to focus on whether interest rates will rise or fall. What truly matters is whether the property price justifies the investment. Until values return to sustainable levels, now is not the time to buy.
Real Estate and Gold: Understanding Real Value
Lynette draws a powerful comparison between the real estate market and the gold market. Just as housing prices have been manipulated since 2008 to support GDP, the spot price of gold is not an accurate reflection of its true value. What matters is the fundamental worth of high-quality assets.
That is why Zang Enterprises recommends a layered approach to wealth building through sound money strategies. Investing in physical gold and silver preserves purchasing power and positions you to capitalize when markets correct.
Patience Creates Opportunity
Jennifer's final message is simple. Be patient. Use this time to move depreciating fiat dollars into tangible assets like physical gold and silver. When the real estate market resets, you will be positioned to act. Instead of buying one overpriced home, you could have the financial flexibility to purchase several undervalued properties or invest in other opportunities.
This is not about fear. It is about preparation, protection, and long-term financial freedom.
Protect Your Wealth with Sound Money Strategies
The housing market is cracking under the weight of inflated prices and economic instability. Do not wait for the collapse to catch you off guard. Learn how Zang Enterprises can help you preserve your wealth and prepare for what's coming using physical gold, silver, and time-tested sound money strategies.
Schedule your personal strategy session and start protecting your future today.
