The Expert Podcast

The big story and real estate is what's going to happen with prices and what's going to happen with inventory Well here's a really serious overview of this from Yahoo finance, harsh warning America needs more housing and this affects a lot of us in the construction industry. Because we're not wanting to build any new houses on speculation. Because nobody's buying. Right. The fact that nobody's buying may or may not change the price It just means nobody's going to buy anything. A lack of buyers a lack of demand doesn't necessarily crash the price unless sellers are willing to sell. Remember a housing crash requires both a buyer pushing the prices down, but also a willing seller. If buyers are on strike and not buying that's fine. But if sellers don't want to sell either the price is not going to go down it's going to be, A stalemate. Going to be like tug of war. And for years it's not new. There's been a shortage of homes available for buyers when prices were reasonable or cheaper and the mortgage rates were low, it showed up in the. of multiple bidders on houses because the buyers wanted to buy what's there. The fact that the houses have gone up in value and the mortgage rates are higher. It doesn't change the number of people out there wanting to buy a house. Look, when there were 20 bidders on a house. When prices were low that just meant those bidders were willing to buy. There's still 20 people that need to buy a house. Those bidders did not go away. The fact that the prices are higher and those 20 people aren't willing to buy at that price doesn't change the fact that those 20 people still want to buy. a house they're still out there. It just means that the seller. Is not willing to sell at that price. Right. So the market still has the same I demand that same number of wanters. It just doesn't have the same number of willing sellers. So that may not. Result in a huge price crash. Sure. Some sellers that were looking to get, you know, Telephone Number's high prices for houses might come down a little bit, but they're not going to go into crash mode. Because. As a corn too. real estate broker Bryan though has said, here's the thing about America We don't have inventories. Guys it's tied out there right now. Certainly there are. People that don't want to pay the price. But. There. Is still bidding wars than some of these houses. And that's proven out by talking to realtors. He has three offers on a property. I've got a property in New York city that was below the 1.5 billion market multiple bits. Right. The thing is it's going to cost those buyers more money to buy the same. It could have been a year ago. It comes down to monthly payment. Look even if the monthly payment. Has gone up from, let's say an average house that was two 50 or two 80. A few years ago, up to four 20 which is the average price of a house and interest rates went up from 2% to 7%. That mortgage payment that would have been 2000 a couple of years ago It was now 4,000. There's certain people that can't afford the 4,000 or can't get approved on a mortgage for 4,000. That doesn't mean they still don't want to buy a house. And the fact that the price has gone up doesn't mean the seller is going to say oh okay, I'll drop the price down to make you afford it. The seller doesn't need to sell their living in the house They have equity They have a low mortgage rate. And they don't need to sell Certainly there's some people that will need to sell. But how many are there? There's only 84 million single family homes in this country. There's 350 million roughly. People that live in the country Now not every person needs a house Some people live in multi, resident households and some people rent apartments, but…it's still. There's only 84 million homes single family homes in the country. And that number's not going up now as builders you know, builders are not. Very quickly building new homes because of interest rates are higher and there's no demand. So this is going to hurt the housing market in the future Even more than it is today because there's still more people every year coming into the market. In terms of people immigrating to this country, new families being produced…If you're not building houses, that demand is even going to be more in the future. Let us know what you think in the comments.