Epic Real Estate Investing - BREAKING: The Housing Market’s Big Turnaround Could Be Closer Than You Think | 1314

Episode Date: July 16, 2024

Is it darkest before the dawn? Dive into the latest episode where we uncover the current state of the housing market – sales are down, new listings are down, and prices are decelerating, making it feel the most bearish it has all year. Yet, there's a glimmer of hope with recent positive inflation data, a bond market rally, and mortgage rates dipping below 7% for the first time in months. Could we finally be past the peak of mortgage rates? And if so, how should we expect the housing market to react? We’ll break down the numbers: 61,000 single-family homes unsold nationwide, inventory up 38.5% from last year but down 32% from pre-pandemic levels. Mortgage rates are driving these changes, and if they continue to fall below 6.75%, we might see a significant boost in demand. Discover the notable 1% year-over-year drop in newly listed home prices, the impact of declining new listings, and the potential growth in sales rates if mortgage rates keep dropping. With 38.3% of listings experiencing price cuts, sellers are adjusting to slower demand, but this could change with more favorable mortgage rates. For private real estate investors, this episode is packed with insights and key takeaways: Watch Mortgage Rates: Expect a surge in demand and potential rise in home prices. Inventory Trends: A plateau or decline indicates a tightening market. Price Adjustments: Fewer reductions signal increasing buyer activity. Sales Volume: An uptick in new pending sales shows a stronger market. Tune in to understand the shifts and opportunities in the housing market and get ahead in your real estate investments. P.S. Whenever you're ready to go deeper and further with your real estate investing, looking into my partner program to help you get your first deal might be the move... take the first step here for free 👉 Here’s the deal, I’ll partner with you on your first real estate deal, and we’ll split the profits. It’s that simple. Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Hey, strap in. It's time for the epic real estate investing show. We'll be your guides as we navigate the housing market, the landscape of creative financing strategies, and everything you need to swap that office chair for a beach chair. If you're looking for some one-on-one help, meet us at rei-aise.com. Let's go, let's go, let's go, let's go, let's go, let's go.

Let's go. Do the biggest challenges come just prior to victory? What's your real estate prediction now? If we look at the housing data, sales are down, new listings are down, prices are decelerating, it's feeling like the market is the most bearish that it's felt all year. And yet we had really good inflation data that came in last week. The bond market rallied and mortgage rates took a notable dip below 7% for the first time in months.

Could we finally be past the peak of mortgage rates? Well, if that's the case, how should you? we expect the housing market to react? And then there's the Trump factor too. The answers to all those questions and more today. We're diving deep into the latest shifts in the housing market and what they mean for you as a real estate investor. But do you even like the idea of earning money while you sleep? Warren Buffett says it's not how hard you work, but the strategy you use. And I laid it all out in detail in my new book, Escape. If you grab a copy right now, I'll give you the course that Robert Kiyosaki asked me to make for his rich dad community, creative cash flow.

That course is yours for free when you grab a copy of Escape at myescapebook.com. Now, let's get to the numbers. Right now, there are 61,000 single family homes unsold on the market across the country. This is slightly fewer than last week, thanks to the extended 4th of July holiday. But here's the kicker. Inventory is still 38.5% higher than a year ago, although it's 32% fewer than pre-pandemic level. in 2019. So what's driving these changes? Well, for one, mortgage rates. I mean, last week, we saw rates dip nicely with some positive inflation news. Rates going below 7% for the first time in a very

long time. So if this trend continues and rates head below six and three quarter, we could see a significant boost in demand. So let's talk about prices. I mean, for the first time and over a year, the prices of newly listed homes dropped 1% year over year. This dip is notable because it signals a potential shift in the market. If we continue to seed declining rates and increasing demand, this trend could reverse very quickly. New listings have also been down with only 57,000 new listings this past week. This is 6% fewer than last year at the same time. Sellers, they're pulling back, which is keeping a lid on inventory growth. But if demand picks up, we might see a higher percentage of these listings selling immediately. So what about the sales rate? Well, sales have been relatively

stable, but there's a potential for growth if mortgage rates continue to fall. We could see new pending sales increase from $65,000 a week to around $70,000 a week. That would be a nice 8% boost. Now, there's one interesting trend to watch. It's the rate of price reductions because right now, 38.3% of listings have taken a cut from their original price. This is higher than usual for July and could indicate sellers adjusting to slower demand. However, if mortgage rates drop further, we might see fewer price reductions as more buyers enter the market. The sellers won't have to adjust their price. Well, likely upwards. So what does this all mean for you, the private real estate investor? Well, here are five key takeaways. Number one, watch mortgage rates. If rates continue to decline,

expect a surge in demand and a potential rise in home prices. Two, inventory trends. Pay attention to the inventory levels. If they plateau or decline, it's a sign that the market is tightening. Three, price adjustments. Look for fewer price reductions as a signal of increasing buyer activity. And four, sales volume. An uptick in new pending sales will indicate a stronger market moving forward. And number five, the Trump fact. Despite his never-ending trials and tribulations, his popularity continues to grow.

Minds are changing. And the overall momentum, it's shifting. The win does appear to be at his back at the moment. And should he win in November, what would that mean for real estate? President and CEO at First Trust Financial said, if former president Donald Trump should win the upcoming election, we would see another massive refinance boom along with a record number of home sales. Because it's believed by most that Trump would definitely recommend to the Federal Reserve to lower the interest rates. He would recommend this

because it is the best and most effective way to move the economy upward quickly. And our current market could certainly stand a boost. Lowering rates would move every other industry upward as well because this would likely extend to car sales and refinancing. Home equity lines of credit. many other sectors of the economy. Trump's economic policies would likely continue to emphasize deregulation and tax cuts, which could stimulate economic growth and potentially increase disposable income from many Americans. All in all, I can't see how Trump's policies don't boost the housing market. The only downside here is that when those rates do come back down, the price of housing will increase and the supply of available housing will decrease, magnifying our

current situation, yet giving you a second chance to jump in before it's too late. See you next time. And that wraps up the epic show. If you found this episode valuable, who else do you know that might too? There's a really good chance you know someone else who would. And when their name comes to mind, please share it with them. And ask them to click the subscribe button when they get here and I'll take great care of them. God loves you and so do I. Health, peace, blessings, and success to you.

I'm Matt Terrio. Living the dream. Yeah, yeah, we got the cash flow. We didn't know home world. We got the cash low. This podcast is a part of the C-Sword. Sweet Radio Network. For more top business podcasts,

visit c-sweetradio.com.