The Expert Podcast

• Interest Rates & Inflation Impact on Real Estate Market:
  • Higher interest rates and inflation have shaped the real estate market over the last few months.
  • The market started shifting in January 2023, with new interest rates and inflationary pressures.
  • Home prices surged toward the end of 2021 and into 2022, leaving many potential buyers on the fence, waiting for price changes.
• Home Prices vs. Home Sales Volume:
  • Home sales volume doesn’t matter much unless it impacts home prices.
  • The main focus for buyers should be on what price they can purchase a home for, not how many homes are sold.
• Key Market Facts:
  • CNBC report: Home prices surged over 20% in March 2022, despite rising interest rates.
  • This represents the biggest spike in home prices this century.
  • Interest rates doubled from 2.5% to 5.5%, yet home prices still increased.
• What Experts Are Saying About Future Home Prices:
  • Experts are uncertain about when home prices will drop.
  • In previous housing crashes, home prices dipped briefly but then rebounded quickly, largely due to foreclosures and poor underwriting practices.
  • Unlike past crashes, this current price surge is driven by genuine demand and limited inventory.
• The Home Buying Process Today:
  • Half of U.S. home buyers report feeling overwhelmed during their house hunt.
  • Survey results: 61% of millennial buyers and 65% of Gen Zers have been brought to tears during the process.
• The Challenges in the Current Market:
  • 60% of home sellers report receiving at least two offers.
  • In April, half of homes sold went above the asking price, despite higher interest rates.
• Barbara Corcoran’s Advice for First-Time Home Buyers:
  • Despite higher interest rates and home values, Barbara Corcoran advises first-time buyers to get in the game.
  • Start with a home that fits your needs and budget, even if it’s not the dream home you envisioned.
  • Homes are often attainable, and upgrading over time can build wealth.
• What You Can Do Now:
  • Real estate isn’t always about the perfect home; it’s about finding a place that fits your needs and budget.
  • Even if home prices drop after purchasing, it doesn’t affect you unless you plan to sell soon.
  • The biggest consideration is whether you have a roof over your head, regardless of short-term market fluctuations.
• Key Takeaways:
  • Home prices surged 20% in March 2022, despite rising interest rates.
  • Experts are unsure when prices will drop, with some even predicting they won’t drop significantly in the near future.
  • If you’re looking to buy, consider finding a home that meets your needs and is within your budget, even if it’s not your dream home.
• Upcoming Content:
  • Keep an eye out for our next video featuring homes under $200,000 that offer great value for buyers.