Home prices are falling fast in some prime real estate markets across the country while others remain stubbornly stuck. What’s the defining factor between a stable housing market and one where sellers are actively cutting prices? Housing inventory! This metric defined the 2020 - 2022 run-up in home prices, but the rubber band of demand is snapping back as buyer power grows, housing inventory rises, and investors get even better buying opportunities.
Remember when people said, “I’ll buy when prices drop”? Well, now might be the time.
ResiClub’s Lance Lambert joins us to provide a holistic view of housing inventory, prices, demand, and emerging opportunities. Lance walks through the most up-to-date data on where housing inventory is rising fast, where prices are quickly declining, and which markets are holding on as sellers remain in control.
We’ll also talk about why homebuilding costs are about to JUMP and the reason Warren Buffett sold his homebuilding stocks shortly after buying them. Will construction slow down, limiting new inventory and leading us back into ultra-low supply? If so, this could push home prices higher, creating a prime opportunity for real estate investors.
In This Episode We Cover
US real estate markets seeing the most and least new inventory, and where prices are falling
Is spiking inventory a worrying sign for the housing market, or are we merely normalizing?
What to look at in your housing market to forecast whether prices will rise or fall
Why are homebuilding costs about to JUMP, and could this lead to even more inventory problems?
The new housing trend: Older renters, but could this mean more demand for rentals?
And So Much More!
Links from the Show
Join the Future of Real Estate Investing with Fundrise
Join BiggerPockets for FREE
Sign Up for the On the Market Newsletter
Find an Investor-Friendly Agent in Your Area
Dave's BiggerPockets Profile
ResiClub: The cost breakdown for constructing a single-family home in 2024
ResiClub: Did Warren Buffett see this coming? Homebuilder margins face pressure in 2025
ResiClub: The vanishing young homebuyer: Median first-time homebuyer age jumps from 28 in 1991 to 38 in 2024
Inventory Is Key to a Stable Real Estate Market—Will It Recover?
Join Lance’s Newsletter
Grab Dave’s Book, “Real Estate by the Numbers”
Jump to topic:
(0:00) Intro
(1:27) Hottest and Coldest Markets
(8:00) Should We Be Worried?
(11:00) Where Prices Are Dropping
(14:54) What to Look For In YOUR Market
(17:39) Homebuilding Costs To JUMP
(21:48) Developer Profits Shrink
(24:11) Older Renters, Better for Investors
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-308
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
