The Housing Market is Changing (Deals Are Coming in Winter)

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Investing, Business

4.8 • 16.6K Ratings

🗓️ 30 October 2024

⏱️ 30 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Discounted real estate deals could be coming THIS winter as the housing market begins to “thaw.” Today, Dave is flying solo, bringing you a housing market update on all the crucial factors real estate investors are looking at—home prices, mortgage rates, housing supply, and rent prices. Even with home sales falling by a massive margin, home prices are still at all-time highs, and the housing market is “stuck,” but we could see some sellers taking price cuts this winter if you’re willing to take advantage. Okay, but how can home prices still be THIS high when the total home sales are twenty percent lower than average and around fifty percent under the recent highs? It’s simple—affordability struggles. High rates, high prices, and “locked-in” homeowners staying in place keep the market frozen. So, why does Dave believe sellers will be more inclined to drop their prices this winter? Where does he believe interest rates will be by the end of the year? And what’s the one thing that could get the housing market “unstuck”? In This Episode We Cover: Why Dave believes real estate deals are coming THIS winter Mortgage rate predictions and how low rates could go by the end of this year Whether to buy now or wait for affordability to improve, prices to drop, and rates to fall Why home prices are still rising EVEN with homebuyer demand plummeting The MASSIVE drop in home sales since the pandemic boom and why prices have remained high And So Much More! Links from the Show Join BiggerPockets for FREE Let Us Know What You Thought of the Show! Nearly A Quarter of Prospective First-Time Homebuyers are Holding Off Until After the Election: Redfin Survey Grab Dave’s Book, “Real Estate by the Numbers” Find an Investor-Friendly Agent in Your Area The Fed Finally Cuts Rates, but Will It Even Matter? Connect with Dave (00:00) Intro (00:50) Home Prices Are Changing (04:57) The Deals Are Coming (06:05) MASSIVE Decline in Home Sales (11:12) So…Why Are Prices High? (16:19) Mortgage Rate Forecast (18:14) Buy Now or Wait? (19:17) Rents Still Struggling (21:56) Winter Opportunity Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1037 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	Let's be honest, it can feel like nothing makes sense in the housing market right now.
0:04.6	Prices are up, but affordability is super low.
0:08.3	The Fed cut their interest rate, but then mortgage rates started to climb. It's super confusing, but don't worry, I'm going to explain it all to you today.
0:17.0	What's up everyone? It's Dave and listen I understand that the housing market is
0:26.7	confusing and uncertain right now but and this is kind of a spoiler art but I
0:32.0	believe that there are some signs that
0:34.4	buying conditions are going to approve at least a little bit this winter.
0:38.0	So I'm going to spend today's episode helping all of us understand the bigger picture in the housing market and the
0:44.7	economy so you can make informed investing decisions and jump on great deals when they
0:50.0	appear. So first things first I know everyone loves talking about prices so
0:53.8	we're gonna just start there. The national median home price is now at all time
0:59.4	highs as it has been for years but it's at four hundred and twenty nine thousand dollars which is up four percent year over year.
1:08.7	Now four percent year over year it may not sound like this huge number because especially if you just
1:14.8	started investing in the last couple of years, particularly during the pandemic.
1:19.1	There were years when we saw home prices go up double digits 10% 15% in certain markets but just for some
1:26.0	context 4% annual growth which is the same thing as euro for a year is above average
1:32.3	the long-term average for housing appreciation year is above average.
1:32.7	The long-term average for housing appreciation
1:35.6	is somewhere above 3%.
1:37.4	So this is higher than that, but not by that much.
1:40.4	So it's kind of actually a normal year. And the other thing I want to
1:44.3	call out about this specific number that is important for investors is that it is
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from BiggerPockets, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of BiggerPockets and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.