Housing Affordability Improves, But Barriers Remain
Lower mortgage rates, easing home prices, and increased inventory are improving affordability for homebuyers, especially first-time buyers. National home prices are essentially flat year-over-year, with notable regional differences and inflation-adjusted values slightly declining. Falling mortgage rates, now around 6.19%, are reducing monthly payments and changing what buyers can afford. However, saving for a down payment remains the biggest challenge, even as more listings and rising pending sales signal renewed buyer activity.
AI Boom Sets Stage for IPO Surge
The artificial-intelligence boom is expected to fuel a strong wave of IPOs in 2026, with major private companies like SpaceX, xAI, Anthropic, OpenAI, and Databricks seen as potential candidates. Firms are increasingly turning to public markets to fund capital-intensive AI investments and stay competitive with tech giants such as Nvidia, Microsoft, and Alphabet. After a rebound in 2025, when IPO volume and proceeds rose sharply, analysts expect momentum to continue despite periodic volatility tied to tariffs, government shutdowns, and market swings. Forecasts suggest 200 to 230 IPOs next year raising up to $60 billion, with mega-unicorn listings potentially driving a full revival of the U.S. IPO market.
BYD Overtakes Tesla in Global EV Sales
China’s BYD surpassed Tesla in 2025 to become the world’s largest seller of electric vehicles, delivering 2.26 million battery-powered cars, up nearly 28% year over year. The milestone marks a dramatic reversal from 2011, when Elon Musk publicly dismissed BYD as a weak competitor. Tesla delivered about 1.64 million vehicles in 2025, an 8% annual decline and its second straight yearly drop, amid intensifying competition and reputational headwinds. Despite weaker EV sales, Tesla’s stock rebounded sharply late in the year on optimism around its driverless vehicle testing.
As always, Base Wealth Management remains focused on aligning investment strategies with your long-term goals amid evolving market conditions.
