Epic Real Estate Investing - Inside the Housing Market's Shocking Price Cuts and Inventory Boom | 1312

Starting point is 00:00:00 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.

Starting point is 00:00:27 Let's go. So what are you hearing out there, that the housing market is seeing more price, while inventory surges, I'm hearing it too because the market is seeing some big changes right now. 38% of all listings. This isn't limited to just one area. 38% of all listings are cutting their price. And today, we're diving deep into what's really happening behind the scenes and what it means for you as an investor. And if you happen to be an investor that's frustrated with low or insufficient capital,

Starting point is 00:00:57 the Bezos Blueprint offers a transformative path to 0% interest funding. It's a secret business funding program just for real estate investors looking for helping hand, backed by Chase, Wells Fargo, and Bank of America. Visit no-costcapital.com for details. Now, the housing market's recent trend is moving in the direction that we typically expect to see this time of the year as we exit the spring buying season, and we enter into a slower summer. We see that every year. It's routine, nothing to be totally alarmed about.

Starting point is 00:01:26 But the inventory of unsold homes in the U.S. has jumped 40% comparison. to last year. So what's causing this inventory surge? What's causing the price cuts? And how does it affect you? So let's start with mortgage rates. Last year after June, 2003, rates climbed from the sixes into the sevens, reaching a staggering 8% by October. These high rates are still haunting us today. With higher rates, we're seeing slower sales. But will things change as we move into July and August? That's the big question. That's what everybody's wandering. So here's the deal. Inventory rose by just just over 1% this week, bringing the total to 653,000 unsold single-family homes. Inventory keeps climbing, and this trend isn't limited to one area.

Starting point is 00:02:12 Every state has more homes on the market now than they did a year ago. Even the Northeast, which saw the least growth. It's catching up with a 35% increase in Massachusetts alone. New listings are up 12% from last year with 71,000 new listings and 16,000. immediate sales this week. That's 87,000 total sellers indicating a steady increase in supply. But with mortgage rates still high, demand isn't keeping pace, resulting in more inventory. So pending home sales also tell the story. We had 68,000 new contracts this week. That's 8% fewer than the same week last year. The sales trend has slowed since early May. And with mortgage rates

Starting point is 00:02:58 in the sevens, buyer momentum, it's lagging. So let's talk prices now. The median price of single family homes is just under $455,000. That's the median price that homes have sold for, unchanged from a year ago. But new listings are at $425,000. That's lower, but it's still up 5% from last year. So translation is, homes are still selling for more than what sellers are listing them for, on average. But the downside stickiness here is in home prices. It means sellers that are already on

Starting point is 00:03:33 the market are hesitant to lower their prices despite the increase in supply, but they're doing it because price reductions are up with 38% of listings cutting their asking price. This shows demand weakness, but it's not all doom and gloom. In resilient markets like Boston and Southern California, inventory builds mean sellers will need to adjust, leading to more price reductions in the second half of the year. So what does this mean for private real estate investors like you and I? Well, opportunities are emerging. That's what it means. With rising inventory and price cuts, there's a chance to find great deals. However, be cautious about trying to time the market perfectly. A lot of people do that. They want to sit and they want to time the bottom because waiting

Starting point is 00:04:14 too long might mean missing the ideal buying window and ending up purchasing after prices have rebounded. So historically, buying a bit early, buying just before. you hit the bottom, it hasn't proven to be a mistake over the long run. Actually, it's proven to make you look pretty much like a genius. So the key here, though, is to act when you see a good deal that aligns with your investment goals. The perfect time might not ever come, and you might not recognize it even if it did. But being prepared and informed will help you make the best decision possible. 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.

Starting point is 00:04:55 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.

Starting point is 00:05:10 You didn't know home for us, we got to cash low. This podcast is a part of the C-Suite Radio Network. For more top business podcasts, visit c-sweetradio.com.

Epic Real Estate Investing - Inside the Housing Market's Shocking Price Cuts and Inventory Boom | 1312

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