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A Homebuyer's Dilemma Might Be A Homebuilder's Delight
Sep 2, 2023
Matt Argersinger, a real estate analyst with a knack for housing market trends, joins Deidre Woollard to delve into the current housing market's challenges. They discuss the significant drop in existing home sales due to high mortgage rates and low inventory. Surprisingly, homebuilders are thriving, focusing on new constructions. They also explore the rising trend of renting among younger Americans, the potential for 'Build to Rent' communities, and what market shifts might mean for both buyers and investors in the coming years.
26:08
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Quick takeaways
- The low inventory in the housing market is driving up home prices and making it difficult for first-time homebuyers to enter the market.
- Home builders are benefiting from the lack of existing home sales by constructing new homes and enjoying impressive margins.
Deep dives
Low inventory perpetuates high home prices
The low inventory in the housing market makes it highly unlikely for home prices to drop significantly. The limited supply of homes has been a long-standing issue for over a decade, and the current situation with mortgage rates above 7% further hinders first-time homebuyers. Despite expectations, home prices have held up due to the low inventory, making it challenging for prospective buyers.
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