Epic Real Estate Investing - This 0% Mortgage SCREAMS 2008 (here we go again) | 1464

Episode Date: April 8, 2025

This episode dives into the current tumultuous real estate market, debunking the fear-driven narratives surrounding 0% mortgages, rising inventory, and falling prices. It explains that while these indicators resemble those of the 2008 housing crash, the situation today is different. Builders and lenders are offering zero-down mortgage programs to make homeownership more accessible, and inventory is rising from record lows, with most new listings being new homes. The episode highlights the strategic shifts made by builders, such as renting unsold homes, and discusses the long-term factors contributing to the housing market, including a significant shortfall in housing availability for millennials. The overall message encourages viewers to cut through the panic, understand the market dynamics, and use strategic planning to capitalize on emerging opportunities. The free information mentioned in the episode: https://docs.google.com/document/d/1WCsH9-05vQzgZf9MAGBpUahyTqBcu9VgVqQ8pcACMT8/edit?tab=t.0 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. 0% mortgages, surging inventory, falling prices. You've heard it all before. And if it sounds familiar, it should. Because these were the warning signs before the last housing crash. Now they're back, and people are panicking. They are showing you real facts, but they are leaving out the rest of the story. Here, let me show you what I mean.

Builders are offering 0% down mortgages. Some people are calling it what it looks like on the surface, free homes. Now, they're not free, but when you don't need a dime to move in, it sure can feel that way. And I'll show you where to get them. And why some people are terrified we're headed for another 2008. Inventory? Up, 40% in some markets. And I'll show you where the flood is building.

Sellers? Still listing homes at fantasy prices. $450,000 for a two-bedroom townhouse in cities where the median income is $75,000. I'll show you the zip codes where denial is real. Buyer demand? Crushed. Some cities have hit 14-year lows in cities. sales. I'll show you where nobody wants to buy a house right now. And builders, they're pulling

homes off the market, turning spec homes into rentals. I'll show you which big name builders just switched to a rent-to-own model. Inventory that they're pulling from the market that no longer is available. Scary, right? But here's the truth. If the story ended there, you wouldn't still be watching. So let's talk about what they're not telling you. Because the facts are real. But the fear, that's a choice. Let's break this down. Yes, zero percent mortgages are back, but they're not coming from banks. And they're not subprime. They're builder and lender incentives. Guild Mortgage is offering a zero-down mortgage program. It combines a standard FHA first mortgage with a second mortgage that covers your down payment. You end up with no money out of your pocket up front. United

Build Homes is offering zero down with one closing and in-house financing tailored to the buyer. And in Oregon, the state is giving out zero percent interest loans, but not to buyers, but to cities and counties to help build affordable housing. These are all designed to make home ownership more accessible. But here's the truth. Home prices are up. Saving for a down payment, it's harder than ever. But many buyers can't afford the monthly payment.

It's the upfront cash that's the hurdle. These zero-down programs are solving that. They're not risky lending. They're market solutions to affordability. And for builders, it's a way to move inventory without slashing prices. That's not a crash. That's a strategy. Inventory is rising.

Yeah, that's true. But it's rising from revenue. record lows. Between March 2024 and March 2025, active listings rose nearly 29%. By July 2025, if rates stay high, inventory could be 40% above last year. And that sounds like a lot until you realize where we started. Some states have now passed their pre-2020 levels, Arizona, Colorado, Florida, Idaho, Tennessee, Texas, and Utah, plus D.C. And that sounds dramatic. But these were also some of the hardest hit boom towns from the pandemic. The places where prices surged faster than local income. Now, as rates are up, those markets are returning to normal. Tampa, Austin, Sarasota.

These are the spots where inventory has jumped the most. Why? Because builders overbuilt. That's not a national crisis. That's a local reset. Meanwhile, in the Northeast and Midwest, inventory is still near historic lows. This isn't a flood. This is a rebalancing. And most of the new listings are new homes, not foreclosures. Sellers are slow to adjust. They always have been. But they will. You know how we know? Because they always do. When they can't sell, they either lower the price or they rent it out. You've got options right now if you're a buyer who's paying attention.

Demand is down, yes, but it's not gone. In October 2004, U.S. existing home sales hit a 14-year low. Sales drop to a seasonally adjusted annual rate of 3.84 million units, the lowest since October 2010. That's a 1% drop from August and a 3.5% drop year over year. Even with more homes on the market, buyers didn't buy. Why? Rates were still high. Prices stayed high. And in some areas like Florida, weather didn't help, nor did the insurance rates. Hurricane Helene slowed down the south. Sales dropped 1.7% there. The Northeast and Midwest also dipped. Only the West saw a bump. Florida cities like Jacksonville and

Miami took big hits in pending sales, down over 13% in both cities. Virginia Beach, also down 14%. So yes, demand is weak, but it's not vanishing. Buyers are hesitant. They're not gone. Lawrence Yun from the National Association of Realtors said the election was making people hold back. It's not just affordability, it's uncertainty. And remember, these numbers came even as mortgage rates had already fallen from their peak. That tells us the hesitation isn't just about money. It's about timing. And when that shifts, buyers will come back fast.

Because just like sellers eventually adjust, so do buyers. And builders, some are getting creative. In cities like Phoenix, over 4,000 single-family rental homes were built in 2003. That's a 10-year high. Dallas added about 2,700 rental homes. Atlanta added 2,000. Austin and Charlotte both built hundreds. Even Midwest cities like Kansas City, Columbus, and Indianapolis are seeing this shift.

Why? Because sales are slower, and builders don't want to cut prices. That hurts future sales. It hurts appraisals. So instead of discounting homes, they rent them out. It's a way to clear inventory without harming the next phase of the project. And it works. Renting helps manage their loan timelines.

It helps cover their holding costs. and with monthly homeownership costs up to 30% higher than renting in many areas, it makes sense. This isn't a panic move. It's a pivot. It's how builders are staying alive in a tough market. And it gives smart buyers more leverage. Because just like sellers eventually adjust, so do builders.

You don't need hype. You need clarity. And here's something that's clear. Happening in the background behind all the drama, mortgage rates have been on a steady downward trend for weeks now. Freddie Mac says the 30-year fix just saw its biggest drive. since September. That means more buying power and a stronger reason to act. The FHA rate just hit 6.42 percent. It's lowest since early December. The 15 year is well below 6 percent right now.

Applications jump 20 percent in a week. Buyers aren't rushing in, but they are waking up. Demand is there waiting to pounce. You might not see it right now, but they're waiting. That window may be opening. And if you've been on the sidelines, this could be the sign that you've been waiting for. And if you want to time your entry into the market perfectly, with a strategy that's working right now and some help with a simple way to navigate this market. I put together some free information for you below. The links in the description. No email required.

You can just grab it. But either way, make your own decisions. And don't let fear hold the pen to your financial future. So what can you learn from all this? Look at the moves that are being made. Builders are offering 0% down. They're renting instead of selling. Wall Street is still buying.

Inventory is rising. But here's the bigger truth. America is short, 3.8 million homes. We have 72 million millennials that need somewhere to live, and we're not building fast enough to catch up. Housing starts, down 21%. New homes? Half as many as 2006. Meanwhile, household formation is outpacing construction 3 to 1. That's not a short-term dip.

That's a long-term setup. Rent? Up 25% in just two years. Home prices doubled since 2012. You don't fix that overnight. While the media pushes fear, YouTubers push panic. The opportunity is hiding in plain sight. Banks are pulling back. Middle class buyers are stuck renting. Big companies are buying entire neighborhoods. The system, it's getting tighter. But for people who move now, there's room to win. And you don't need rich parents. You don't need a perfect resume. You don't need to time the market. You just need a strategy. Because here's what's coming. More people, less land. Higher costs, more aggressive competition. Every day you wait, prices rise. Deals vanish. The gap. It grows. But here's the good news. Real estate puts you on the

right side of it all. Banks do want to lend you money. The government does give you tax breaks. Inflation does boost your values and tenants do pay your mortgage. You control the whole deal. And that's why real estate creates more millionaires than anything else. But not every strategy works for everyone. So grab the document linked in the description to learn the one that works for you. It's a custom fit built around how you think, how you work and what you want. So you can stop guessing and start building. 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 Homeworld, we got the cash flow. This podcast is a part of the C-suite radio. network. For more top business podcasts, visit c-sweetradio.com.