It's like when tickle me Elmo comes out and they limit the supply. People are paying ridiculous prices to get these things. It's the same with housing. People still want to move. They want to move out of the city. They're still scared about the whole pandemic. So, because of that, they're willing to spend more on housing. They're going to do it, especially with the record, low interest rates.
I think we are going to see this through at least a first quarter of 2021, potentially into the second quarter. I don't know whether we see a plateau or decrease in home prices after that. Really mortgage rates are a big dependency on that. If we have more the moratorium on foreclosures lifted and more foreclosure start to come into play, which will increase the house inventory and then stabilized home pricing.
The home pricing can't be stabilized because there's more housing demand (pent up demand) and not enough housing inventory. And that's why we're seeing these housing numbers. 38% of homes went under contract and had an accepted offer in the first two weeks. That is a seller’s housing market. This is well above the 25% rate during the same period a year ago.
About a year ago, we were learning about COVID. It is different times. And again, I think that's going to continue. But it's crazy to see what has happened with the home pricing. The current medium home price is now $319,000. That is a staggering number. Median homes are affordable only because of interest rates being historically low. Historic low rates make your monthly payment more affordable, which means people pay more. But the second that mortgage interest rates start to increase, the fed is going to try to make sure that interest rates don’t increase, but when interest rates do increase home prices are going to come back down. They could fall rather quickly if there was any kind of a major increase in an interest rate.
And again, I don't think there will be, I think it would be more minor. I don't think you'll have to deal with that, but just seeing what's going on with home prices right now and values, I just want to reiterate if you're thinking about selling, Do it now.
Whether it's your primary residence, you want to move and you got an opportunity to move. Now's a good time to do it. If you have rental properties, I'm going to be selling some of my rental properties because the real estate market is what it is. I'm going to be able to get good pricing for my rental properties. I’ll take that home price appreciation, use the cash from the proceeds of the home sale, and put it into the next asset. It can be cryptos or more investment properties in a better area, or stash the cash and be ready for the crash.
That's our motto here at REO Auction Academy. We are stashing the cash right now and preparing for the housing crash. A big part of what I'm doing personally, and this isn't financial advice to anybody. But a big part of what I am doing is I'm holding a lot of my cash in cryptocurrencies.
The significant increase in cryptocurrencies recently has really helped. I will continue to monitor and if I need to reallocate my money from cryptocurrencies into a stable coin or put it into the dollar and go back and forth finding the right asset class to go into.
But to recap I am waiting for the end of the year and maybe into 2022 for the increase in housing inventory and the decrease in housing prices. We will see, I cannot tell you when that will be, because I now the Biden would like to have more stimulus, more money in a market, more inflation. You will see everything start to go up in price. The federal reserve wants some inflation.
This is something that the Fed is trying to do. We'll see what ends up happening, but that could end up prolonging this bull market run here in real estate.
Personally, we are probably putting our house on to the market here in the spring and don't know where we're going yet. We're looking at potentially your low-income tax states. Whether it is Texas, Wyoming, Tennessee, Florida, who knows, I don't really like the weather in Florida. We need to figure out exactly where we want to be the whole family and the best spot for us to base.
With your job, if you can transfer to another location, that is something to look into at this point. If you can go to a place where there is a lower cost of living and lower income taxes, why not move there and put more money in your pocket? Hopefully you guys got some good information from this. Thank you.
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