This is Exchangeers at Goldman Sachs and I'm Allison Nathan as senior strategist in Goldman Sachs research.

Today we're going to be talking about a sector of the economy that affects us all, housing.

The pandemic has ignited what can only be described as a home buying frenzy, limited inventory, record low interest rates,

and shifts in where we work have led to bidding wars and sky high prices.

But we're also starting 2022 with new uncertainties such as high and rising inflation and a new COVID

variant that's slowing economic growth. So are we entering an inflection point in the real estate

market?

To help us make sense of the housing market

and what lies ahead in 2022, I'm delighted

to be joined by Doug Yearly, CEO of Toll Brothers,

and Terry Haggerty, co-head of Home Building and Building Products Investment

Thinking at Goldman Sachs.

Doug, Terry, welcome to the program.

Thanks, Allison.

Thanks for having me.

Thanks, Allison.

Doug, as I've just mentioned, we've been in the midst of a white hot housing market

for the last two years where demand for new homes has essentially outpaced the plot.

First talk about some of the drivers of this demand as well as the challenges

that have made it hard for new home construction to keep pace and also how Toll

Brothers has navigated this environment. Sure, so if we go back to the winter of 2019 and 2020,

the market was poised to really be strong.

...