BiggerPockets Real Estate Podcast

925: BiggerNews: Housing Inventory Up 24%, Are We Returning to “Normal”? w/Mike Simonsen

Mar 29, 2024

Real estate expert Mike Simonsen from Altos Research discusses the recent surge in housing inventory, the impact of interest rates on inventory levels, and the potential return to a buyer's market. He shares insights on market trends in states like Florida and Texas, and the implications of waiting for lower mortgage rates before buying a home.

40:57

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Episode guests

Mike Simonsen

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Quick takeaways

Higher interest rates lead to increased housing inventory, offering more options for buyers.

Monitoring housing inventory trends can help investors anticipate market changes and adjust pricing strategies accordingly.

Deep dives

Importance of Understanding Housing Inventory for Real Estate Investors

Understanding housing inventory is crucial for real estate investors as it provides insight into market dynamics, supply, and demand. Mike Simonson from Altos Research emphasizes how rates impact inventory levels, with higher rates leading to more inventory and lower rates resulting in less inventory. Monitoring trends in inventory allows investors to make informed decisions about pricing strategies and market competitiveness.

Introduction

2min

Analyzing Housing Inventory Trends in the US Real Estate Market

6min

Analyzing Housing Inventory and Investment Opportunities

3min

Navigating the Changing Landscape of Housing Inventory

11min

Analyzing the Influence of Interest Rates on Housing Inventory

5min

Navigating Mortgage Rates and Housing Demand

8min

Analyzing Housing Inventory Trends and Market Dynamics

5min

Housing inventory has shot up over twenty percent year-over-year. So, are our low inventory struggles finally behind us? During the low interest rate days, housing inventory couldn’t keep up with demand. Within days of posting a listing, properties had already gone under contract, and buyers could no longer bid. But now, with higher interest rates, we’re finally starting to see a return to “normal,” but a rate cut could take us back to scarce inventory in an instant. So, is now the time to buy?

Mike Simonsen from Altos Research joins us on this BiggerNews episode to give an update on housing inventory. Mike’s team tracks every home for sale in the country every single week and has been doing so for almost two decades. Today, he gives us the most recent data on homes for sale, why inventory is rising, the states that are seeing the most inventory hit the market, and whether or not we can expect to return to pre-pandemic inventory levels.

Plus, for those debating waiting it out for lower mortgage rates, Mike shares exactly how rates will affect housing inventory and why waiting could throw you back into the bidding wars once rates drop again. Mike even discusses the data behind price cuts and when you can expect sellers to start accepting lower bids.

In This Episode We Cover:

A housing inventory update and why more inventory is finally starting to hit the market

What happens to housing inventory if interest rates fall or rise

Florida, Texas, and other southern states that are seeing a surge in housing inventory

Why most investors are wrong about price cuts

What must happen if we’re to see inventory rise back to pre-pandemic levels

The one thing buyers and sellers should know if they’re waiting for rates to fall

And So Much More!

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