The Expert Podcast

• The cruelest trick played on millennials and Gen Z by the Great Recession wasn’t just job losses or investment crashes—it was making you believe home prices would always come down.
• Many millennials, remembering the 2008 housing crisis, expect prices to drop again. However, today’s market is different, and comparing it to the past could lead to misleading conclusions.
• Insider reports show how the Great Recession misled millennials into believing that high home prices would eventually crash.
• Today’s housing market may look familiar, but it’s not headed for the same outcome.
• Key Reasons Home Prices Won’t Drop:
  • Housing Shortage: There’s still a significant shortage of homes, and demand far exceeds supply.
  • Economic Factors: Regardless of income levels, inflation, or rising prices in other sectors, the shortage of homes means people will still pay whatever they can to secure a house.
  • Slower Price Appreciation: While higher mortgage rates may slow price growth, they won’t lead to price drops.
  • More Homes Available, But Not Cheaper: Even though there may be more homes on the market, prices won’t necessarily come down. Some homes may be discounted, but compared to previous years, they’re still inflated.
  • Expert Insight: Analysts from NerdWallet highlight that home prices won’t fall anytime soon due to the continued demand and ongoing housing shortage.
  • Impact of Mortgage Rates: Rising mortgage rates might slow price increases, but house prices won’t drop. The market could tighten again once the extra inventory is absorbed.
  • Best Time to Buy: Despite rising interest rates, now might be the best time to buy before both house prices and interest rates rise further.
  • Effect on Rent: As home prices rise, so do rents. Landlords will need to increase rent to cover higher mortgage rates and property costs.
• What You Should Know:
  • If you’re considering buying a house, waiting might not save you money. In fact, it could cost you more.
  • The housing market isn’t going to crash anytime soon, according to experts.
• Listener Interaction:
  • What’s happening in your local market? Are you still shopping for a house? Seeing more homes or fewer bidding wars?
  • Realtors, are you seeing less volume or more sellers?
  • Mortgage brokers, have you noticed a decline in applications?
  • Share your thoughts and experiences in the comments!