On The Market Investors Are Controlling the Housing Market (Not How You Think)
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Sep 4, 2025 Rick Sharga, Founder and CEO of CJ Patrick Company, unpacks the intricate dynamics of the real estate market. He reveals that local 'mom and pop' investors play a crucial role in market stability and property renovation. The discussion covers how rising mortgage rates impact affordability and consumer debt. Sharga also addresses current investor strategies and explores predictions for 2024, contemplating whether we face a transitional market or a major stall. Tune in for keen insights into the evolving landscape of housing investments!
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Three-To-Five Year Transition
- The market is in a multi-year transition after 2022's mortgage-rate shock, not an immediate crash.
- Expect slow sales and modest price movement for another 12–24 months as the market digests higher rates.
Low-Rate Mortgages Curb Forced Selling
- Millions of homeowners still hold low-rate mortgages, which prevents forced selling and limits crash risk.
- As more sales cycle through, the share of owners at market rates will rise and payment shock will ease.
2021 Sales Pull-Forward Creates Hangover
- Homebuying volume surged in 2021 as buyers pulled sales forward, creating a hangover effect in later years.
- That pulled-forward demand explains weaker subsequent volume and contributes to today's slow market.