The Expert Podcast

• The current state of the housing market is uncertain, with concerns over pricing and inventory.
• A warning from Yahoo Finance: America needs more housing.
• The construction industry is hesitant to build new homes due to low demand and high speculation risks.
• A housing price crash requires both a buyer pushing prices down and a willing seller.
  • Right now, many buyers are hesitant, but sellers are also reluctant to sell at lower prices, resulting in a stalemate in the market.

• Lack of Inventory: The shortage of available homes has been an ongoing issue, even when mortgage rates were low and prices were reasonable.
• Buyer Demand Remains Strong: Despite rising prices and mortgage rates, the demand for homes is still high.
  • When homes were more affordable, multiple bidders would compete for houses, demonstrating the high demand.
• Stalemate Situation: The market currently has high demand but not enough sellers willing to meet buyers at a lower price.
• Real Estate Broker Insights:
  • According to Brian Lewis, there's a severe inventory shortage.
  • Bidding wars are still happening in some markets, proving there's still interest from buyers.
• Rising Costs:
  • The increase in mortgage payments (from $2,000 to $4,000 for average homes) is pricing out many potential buyers.
  • Affordability issues are a key factor in the current market freeze, with many buyers unable to meet the higher monthly payments.
• Sellers' Position: Sellers with equity and low mortgage rates have little incentive to lower prices unless absolutely necessary.
• Future Concerns:
  • With only 84 million single-family homes in the U.S. and rising demand (due to immigration and population growth), the market will face increasing pressure as builders are reluctant to build due to higher interest rates and low demand.

• The housing market's future will likely remain tight, with demand exceeding supply unless new homes are built to meet the growing needs.