On The Market

Investor Sentiment Quickly Turns as Home Sales Bottom, Inventory Rebounds

Jan 20, 2025

Rick Sharga, founder of CJ Patrick Company and a veteran in real estate market analysis, shares intriguing insights on the housing market's shift. He reveals that inventory is set to skyrocket, potentially reaching pre-pandemic levels by 2025. This could stabilize or even lower home prices, benefiting buyers. However, he discusses rising investor pessimism and concerns over potential foreclosures due to soaring consumer debt. Is the market on the brink of correction, or is optimism warranted? Sharga provides clarity on this pivotal transition.

38:26

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Rick Sharga

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Quick takeaways

An increase in housing inventory is expected to return to pre-pandemic levels by the end of 2025, potentially stabilizing home prices and improving buyer conditions.

Recent investor sentiment surveys indicate heightened caution due to rising mortgage rates and economic uncertainties, influencing future strategies in the housing market.

Deep dives

Current State of the Real Estate Market

The real estate market appears to be recovering after declining sales over the past few years, with indications suggesting that the worst may be behind us. Sales dropped significantly from 6 million homes sold in 2021 to around 4 million in 2024, reflecting a market low. However, there is an emerging sense of optimism as more inventory becomes available, which levels the playing field for buyers and sellers and may encourage negotiation. This shift is supported by data indicating a potential increase in home sales and possibly a stabilization of home prices in 2025.

Intro

2min

Analyzing the Housing Market's Future

12min

Understanding Mortgage Rates and Investor Sentiment Amid Market Changes

4min

Investor Sentiment in Real Estate

9min

Navigating Real Estate Choices

7min

Current Trends in Housing Market and Foreclosure Outlook

3min

We’ve got great news for investors, agents, lenders, and first-time homebuyers: housing inventory is about to rise…big time. After years of limited inventory, with homebuyers fighting tooth and nail to get into just about any home, the tide is finally turning. Rick Sharga from CJ Patrick Company brings new data and insight to the show, sharing why we could return to pre-pandemic housing inventory levels by the end of 2025.

Why is that good news for so many of us? Because home prices could slow, if not drop, in some markets as buyers get a better selection of houses to choose from. Those “locked-in” owners with rock-bottom interest rates have waited long enough to sell, and 2025 could be the time they put their homes on the market. But if a new wave of inventory hits the housing market, are we at risk of a home price correction or a crash?

Rick shares what the data shows and why investors are so pessimistic about the current housing market, even with the inventory forecasts looking so good. Will foreclosures rise again as consumer debt hits an all-time high? Could more off-market deals be in the pipeline in 2025? We’re asking Rick and getting answers to all those questions in today’s show.

In This Episode We Cover

A historic housing inventory rebound and why this is great news for buyers, agents, and lenders

Whether home prices will grow, stabilize, or crash with so much new inventory coming online

The new Investor Sentiment Survey and why optimism fell off a cliff in Q4 2024

The single-biggest worry for rental property investors in 2025 and why it may get worse

How to still find motivated sellers even with foreclosures at low levels

And So Much More!

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