Epic Real Estate Investing - Home Depot Sends BIG WARNING About Housing Market | 1387

Episode Date: November 18, 2024

In this episode, we dive deep into the startling revelations from Home Depot's latest earnings report, which paints a concerning picture for the housing market. With rising interest rates and growing economic uncertainty, the once-booming home improvement sector is seeing a noticeable slowdown. Homeowners are scaling back on large-scale renovations, which could lead to stagnation or even a decline in property values, particularly in the high-end market. But what does this mean for homeowners, investors, and the broader real estate landscape? We break down the key factors at play—how the tightening of credit, increasing borrowing costs, and shifting consumer behavior are reshaping the market. Are we headed for a housing downturn, or is this a temporary adjustment? And more importantly, how can you stay ahead of the curve? In this episode, we provide four actionable strategies to help you navigate these turbulent times and profit from the changing market dynamics. From making smart, low-cost updates that boost property value without breaking the bank, to exploring creative financing options that can keep you competitive, we’ve got you covered. We’ll also discuss rental opportunities in a market where homeownership may be slipping out of reach for many, and how to spot underperforming properties that are ripe for investment. The housing market may be in flux, but with the right approach, you can not only survive but thrive. Tune in for expert insights and practical tips to help you make informed decisions and stay adaptable in this ever-evolving real estate environment. 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. Home Depot's latest earnings report just dropped a bombshell. about today's housing market. So if you're a homeowner, an investor, or even thinking about buying, you need to know what's happening behind the scenes before it's too late. Here's the truth. Despite Home Depot raising its fiscal outlook after a strong third quarter, their earnings reveal a chilling trend in the housing market. Big ticket renovation projects are plummeting, and this decline could spell trouble for homeowners and investors alike. The reason? Higher interest rates, inflation, and economic uncertainty are forcing homeowners to cut back on improvements. They're still

investing in necessary maintenance and upgrades, especially the seasonal ones, but extensive remodeling projects are not happening. And here's the big problem that the report pointed out. When homes stop getting updated, their value stagnates or worse, starts to drop. Now, that doesn't happen overnight, but it's a trend where history shows that it could lead to the decline of overall neighborhood values. And here's how it happens. A decline in renovations triggers a ripple effect, fewer buyers willing to pay premium prices, a growing price gap between old and new homes. This is the reality Home Depot's numbers are warning us about. Granted, Home Depot's perspective could be a biased one, but they're not totally wrong. Whether their report reveals is more than statistics, it could be

a warning shot. I mean, imagine trying to sell a property that hasn't been updated in years while shiny new builds dominate the market. Conversely, imagine as a buyer how your negotiations will play out differently on homes that are deteriorating or simply aging out of trend. Buyers are passing up older homes in favor of move-in-ready properties, leading investors and homeowners scrambling. According to a study just last year by Curbio, the nation's leading home improvements concierge service, 77% of potential buyers reported they will not consider a home that isn't move-in ready. Additionally, 67% of potential buyers say they only consider homes with updated features and layouts.

And the study also found that 66% of potential buyers say the biggest deal breaker to buying a home is disrepair and wear and tear. Based on how buyers behave, we could see property values decline in certain areas, leading many homeowners underwater and investors stuck with assets they can't liquidate profitably. The ugly truth is, we're heading toward a housing market divide, the updated and the outdated, and those on the wrong side could lose. But here's the good news. Where there's chaos, there is opportunity. With the right strategies, you can turn the tables on this trend into profitable output.

Here are four things that you can do. One, prioritize low-cost cosmetic updates. Even in a high-cost environment, small upgrades like fresh paint, new fixtures or landscaping can have a massive impact as buyers compare properties while they're shopping. These affordable fixes can instantly make your property stand out without eating into your profits. Two, leverage creative financing. And here's where smart investors win.

Strategies like seller financing or subject to deals can help buyers overcome high interest rates. And this goes both ways. As a buyer, you can offer a seller more in price if you can dictate the terms, ultimately putting you in control of your own affordability. If you're a seller, and you don't need all of your money right now, advertise seller financing as an option to buyers. Buyers will pay a premium in exchange for the convenience of dodging rigid banking guidelines, and that would give you a steady stream of cash flow without the property management headaches. A small group of investors are getting together this month to learn how to buy and sell with creative financing. They're getting set up with operating capital, motivated seller

leads, and closing assistance. If you'd like to join us, go to epicapprentice.com. Number three, maximize rental opportunities. With fewer people able to afford to buy homes, the rental market is becoming red hot and managed correctly becomes the average person's surest path to wealth and financial freedom. And here's a pro tip. To get maximum market rent, tour rental properties on the market, the same properties that your potential tenants will be viewing and comparing against yours. Specifically, pay attention to the condition of those properties. And take note because you only need to upgrade yours just slightly higher to get maximum market rent. No need to over-improve if your market isn't requiring it. That's a big mistake new investors make.

Number four, hunt for underperforming properties. Look for homes that have been overlooked by other buyers, properties sitting on the market, ask agents about expired listing, sending letters to properties in pre-foreclosure. Look through property management websites. sites for the properties that they're unable to rent. My favorite tool to find these types of properties is seller-sniper.com, where you can find all this property data in your own neighborhood with just a few clicks. Look for the properties that may not need a full renovation, just a bit of strategic TLC. This is where savvy investors find their gold mines. So why is this happening? Let's connect the dots. Despite the Federal Reserve's shift in monetary policy, mortgage rates have been inching up,

driving borrowing costs through the roof, making purchase and home equity loans far less attractive. Without access to affordable credit, homeowners are delaying or canceling big renovations. By understanding these trends and the different strategies available to you, you can use it all to negotiate better deals, whether you're buying, selling, or holding. There's no such thing as good or bad markets, just up or down ones. No good investments, just good investors. Like Chevy, who sent me a DM just today, and I'll flash it up on the screen for you. Hi, Matt, I hope all is well with you and your family. I just want to let you know I finally pulled the trigger and resigned on my J-O-B. I'm now full-time in real estate. Thank you for the

knowledge you've taught me. Talk to you soon. God bless. Home Depot's earnings reveal an undeniable truth. The housing market, it's always changing, oftentimes in very different ways than what we were imagining. Because of that, not everyone will adapt. So don't let today's trends catch you off guard. Subscribe to stay in touch. Share to spread the good word. I'll see you next time. Take care. 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. You didn't know home for us. We got the cash flow.

This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit C-desweet Radio. com.