Season 2 E213 2024 Housing Market Forecast and Predictions - Part 3 INVENTORY

Ready for more real estate revelations? 

In this latest episode, David pulls back the curtain on the housing market. He dives into the ongoing inventory issue plaguing buyers and explains what it could mean for prices down the road. 

With his trademark straight-shooting style, David shares more shocking stats and insider scoops on the true drivers of affordability. 

Tune in to find out what you aren't hearing from other so-called experts and get a glimpse into what may lie ahead for 2024. This is required listening for anyone looking to join the property party!

Here are some key topics from today’s conversation:

• The one big thing affecting home prices (low inventory)
• 15 years of housing underbuilding
• Factors that may increase home listings in 2024
• Challenges facing home builders
• Expert analyses of 2024 housing trends

Episode Highlights:

[09:43] The Locked-In Effect

David explains the concept of the "locked-in effect" where homeowners have been reluctant to sell because they didn't want to give up their low mortgage rates of 3-4%. However, the massive $300k average increase in home equity over the past few years means many homeowners now have substantial wealth built up in their homes. This equity could motivate some to list their homes, even if it means obtaining a higher mortgage rate on their next home purchase. With $300k more in equity, the higher rate may not seem as significant of a financial burden.

[11:32] Silver Tsunami

As many Baby Boomers reach retirement age, David explains this group is dubbed the "silver tsunami" and will be incentivized to downsize from large family homes to more manageable properties. Boomers trading spacious multi-level homes for single-story ranches or smaller cottages represents a major opportunity for new listings. This influx would offer much needed relief to buyers currently facing bidding wars due to limited options.

[18:44] Building Barriers 

While regulations aim to make homes greener and safer, they've also slowed the pace of new construction and created a lot of variability between states. David wonders how builders can ramp up the number of homes they put on the market each year without compromising environmental and safety standards. There's probably a sweet spot where innovation helps increase supply in a more sustainable way.