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Motley Fool Hidden Gems Investing

A Homebuyer's Dilemma Might Be A Homebuilder's Delight

Motley Fool Hidden Gems Investing

The Motley Fool

Investing, Business

4.33.1K Ratings

🗓️ 2 September 2023

⏱️ 26 minutes

🧾️ Download transcript

Summary

Existing home sales are down around 20% year over year for two reasons: mortgage rates are too high and there aren't enough homes for sale. Matt Argersinger and Deidre Woollard discuss: - The current situation of home sales and what could change it. - Why homebuilders are in a good position right now. - If renting will become permanent for more Americans and which companies might benefit.  Host: Deidre Woollard Guest: Matt Argersinger Producer: Ricky Mulvey Engineer: Rick Engdahl Companies discussed: NVR, INVH, TOL, LEN, MAA, AVB Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

You don't want to let go of that mortgage.

0:02.6

I mean, you can't blame people for that.

0:04.7

It's an amazing thing that's happened.

0:06.8

And it's just perpetuated this massive supply

0:09.1

to band and balance that we've been dealing with

0:11.0

for like you mentioned over a decade

0:13.4

or since the global financial crisis.

0:14.9

So, but home builders are filling with vacuum.

0:17.0

So, while there's no activity happening

0:19.0

on these existing home sales side,

0:21.0

they are coming in and building new homes.

0:23.1

And here's a situation where it is possible to sell home.

0:26.2

I'm Dejra Willard and that's Matt Argersinger,

0:32.0

Motley Full Analyst and my fellow housing nerd.

0:35.0

There are two things we know about the current housing market.

0:37.8

Mortgage rates are high and inventory is low.

0:40.6

That's bad news if you're looking to buy,

0:42.8

but there are opportunities if you are an investor.

0:45.5

Matt and I talked about whether or not

0:47.2

we're going to become a nation of renters,

0:49.1

how home builders are making hay while the sun shines,

0:51.6

and where to invest in the future of housing.

...

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