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A Coming Surge In Inventory To Drop Home Prices By Up To 35%? | Nick Gerli

Wealthion - Be Financially Resilient

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The Three Legs of the Stool of Housing Bulls

Housing bulls would talk about three big elements of the stool that say well look, you know, mortgage rates are really low cost capital. That leg has been removed completely from the stool right now with 7% plus percent mortgage rates. And then one was that, all right well there's inventory, right, well we just said this chronic lack of inventory might not be lasting for too much longer. But then third is then hey rents are going up. And as I mentioned earlier like rents are basically the base function for how you price real estate right well now with rates rents going down. You get a situation where you could see heavy deflationary forces in the housing market for many years to come

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