The housing market is stuck in a standoff. On one side, you have buyers, repeatedly beaten with high home prices, higher mortgage rates, and almost non-existent affordability. On the other, you have the sellers, who are sitting on low-interest-rate mortgages, unwilling to take a price lower than they want, waiting for rates to come back down, so the bidding wars begin all over again. This standoff has caused the housing market to come to a halt, with inventory at unbelievably low levels and no one willing to buy or sell.
But weren’t we supposed to be past this? When rates dropped earlier this year, the housing market looked like it was on a fast track to a real estate revival. But now, homebuyers, sellers, and investors don’t know where to turn. And that’s precisely why we brought on HousingWire Lead Analyst Logan Mohtashami, the one person who knows the real estate market better than the rest. Last time we had Logan on, he debunked the claim of a 2008-style housing crash repeat, and now, he’s on to forecast when the housing market could finally reach a healthy point again.
Logan knows why homeowners aren’t selling, why buyers aren’t bidding, and when mortgage rates will come back down. With some simple stats and data, Logan lays out almost exactly what would have to happen for us to enter a normal housing market and gives a rough timeline of when we can expect these changes to take place. And if you’re still on the “it’s gonna crash!” bandwagon, we’d suggest sticking around for Logan’s full explanation, as it may completely reverse what you thought was conceivable.
In This Episode We Cover
Mortgage rate forecasts and what has to “break” for rates to come back down
Foreclosures, distressed sellers, and why there isn’t more inventory on the market
Homebuyers vs. sellers and why neither of these two will make moves until the other does
2008 vs. 2023 and why a Great Recession repeat is a lot less likely than you think
What could cause affordability to rise and help homebuyers get into properties
Rent growth declines and why rents are starting to stall even as homebuying becomes challenging
The commercial real estate “crash” and which sector is most primed for price cuts
And So Much More!
Links from the Show
Find an Investor-Friendly Real Estate Agent
BiggerPockets Forums
BiggerPockets Agent
BiggerPockets Bootcamps
Join BiggerPockets for FREE
On The Market
Join the Future of Real Estate Investing with Fundrise
Connect with Other Investors in the “On The Market” Forums
Subscribe to The “On The Market” YouTube Channel
Dave’s BiggerPockets Profile
Dave’s Instagram
Kathy's BiggerPockets Profile
Kathy's Instagram
On the Market 14 with Logan
Connect with Logan:
Logan Website
Housing Market Tracker
Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-86
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