Will Home Prices Drop in 2024? What Zillow’s Co-Founder Sees Ahead
Jan 14, 2024
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Zillow co-founder Spencer Rascoff discusses the potential obstacles and successes for the housing market in 2024. The World Economic Forum in Davos, Switzerland will bring together leaders to shape global agendas, including discussions on the economy and AI's impact. The podcast also explores emerging opportunities in 2024, the advantages of starting a company now, and the current state of the housing market in 2023.
The housing market is expected to thaw with sellers starting to list their homes and buyers adjusting to higher mortgage rates.
The closure of the IPO window and increased interest rates have made fundraising more challenging for startups, but it is also a good time to start a company due to the current malaise in big tech companies, which makes it easier to recruit talent.
Deep dives
Expectations of Thawing Housing Market and IPOs in 2024
Analysts predict a potential thawing in the housing market and the market for initial public offerings (IPOs) in 2024. This is dependent on the stock market's bullish momentum and falling mortgage rates. In the last year, both the housing market and IPOs experienced a slowdown, with IPOs in 2022 raising the lowest amount of money on record. However, the stock market has shown some upward movement, indicating possible uncertainty. Spencer Raskoff, co-founder of Zillow, discusses the current situation in the markets and highlights the importance of platform shifts for new players to emerge in the real estate industry.
Challenges and Opportunities for Startups in 2024
Spencer Raskoff explains that the startup landscape in 2024 is different from past years due to the closure of the IPO window and increased interest rates. The higher interest rates have raised the bar for getting funding, making fundraising more challenging for startups. Raskoff emphasizes the importance of companies having competitive advantages, strong teams, and closer proximity to profitability. While it may be a tougher environment, Raskoff also points out that it is a good time to start a company due to the current malaise in big tech companies, which makes it easier to recruit talent.
Insights on the Thawing Housing Market and Future of AI at Davos
The housing market is expected to thaw with sellers starting to list their homes and buyers adjusting to higher mortgage rates. Limited inventory continues to drive up home prices. Spencer Raskoff discusses the factors influencing the housing market and predicts a slower rate of home price appreciation in 2024. Additionally, the discussion turns to the World Economic Forum in Davos, where AI is expected to be a prominent topic. The forum, criticized for being an elitist gathering, presents an opportunity for private sector leaders to drive changes in AI development and potential regulations. The decisions made at Davos could have implications for the stock market and the future of AI.
Zillow co-founder Spencer Rascoff joins us this week to talk about housing and the state of tech and investing in private markets. Although mortgage rates have fallen from their peak in 2023, there may not be enough inventory to bring in potential homebuyers. Rascoff tells us about what he sees as potential obstacles and successes for the housing market. And, as an entrepreneur and a venture capital investor who has co-founded some of the most well-known companies in the U.S., including Hotwire.com, Rascoff also tells us how he’s reading the markets as we get into 2024. Plus, the World Economic Forum begins this week. The annual meeting, held in Davos, Switzerland, brings together cultural, policy and business leaders "to shape global, regional and industry agendas." From AI to unexpected economic optimism, WSJ deputy editor in chief Charles Forelle will discuss what he’ll be looking for from the conference.