Epic Real Estate Investing - Where the Housing Market is Headed in the Last Half of 2024 | 1311

Episode Date: July 11, 2024

Welcome to this insightful episode where Matt unpacks the current dynamics and future trajectories of the real estate market. We explore pivotal topics such as the impact of rising mortgage rates, the complexities of housing inventory shortages, and actionable strategies tailored for both prospective buyers and seasoned investors alike.   Throughout this episode, we are joined by esteemed experts including Logan Motashami and Mike Simonson, who provide invaluable insights and forecasts for the remainder of the year. Their expertise sheds light on how these market shifts may influence your decisions, whether you're looking to purchase your first home, expand your investment portfolio, or navigate the evolving real estate landscape.   Join us as we delve into the nuanced factors driving today's market trends and uncover pragmatic advice to help you stay ahead in this dynamic sector. Whether you're seeking to understand market conditions or refine your investment approach, this podcast promises to equip you with the knowledge and strategies needed to thrive in real estate today and beyond.   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 👉 https://epicearnwhileyoulearn.com/ 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. All right, so today we're diving deep into what you can expect from the real estate market for the rest of the year. There are some significant changes ahead. First, let's talk about mortgage rates. This year, mortgage rates have hit some of the highest levels that we've seen in quite a while, causing many potential buyers to hesitate. A lot of people sitting on the sidelines. Experts like Logan, Motashami from housing wires suggest that while rates may eventually decline, it won't be as soon or as significant as many of us have hoped. We were promised a few rate reductions this year.

year based on the direction that inflation was going. It was going in the right direction. But we might see some relief by the end of summer, but don't bank on it just yet. One of the things I was kind of hoping for, it being an election year, that typically, historically speaking, the incumbent would make some adjustments to kind of give the economy a boost to make them look more favorable at the polls. And based on Biden's performance, pretty much universally was disappointing. That might not happen. I mean, giving the economy a little bit of a boost based on that might not be enough to offset that performance. So I was a little bummed that he did that badly, but we'll see. All right, just probably not what we thought it was going to be as we were being told at the beginning of the year.

Inflation threw us a few unexpected curveballs. Now, inventory, that's another hot topic. We started 2004 with a slight increase in housing inventory and we thought we're going to be returning a little bit back to normal. And that was giving us some hope for a more balanced market. However, this growth is still not enough to meet the strong demand from. buyers. As a result, home prices are expected to remain high throughout the year. Mike Simmons from Alta's research notes that any dip in mortgage rates, that can actually trigger a surge in buying activity leading to even fewer homes on the market and pushing prices up even further.

Can you imagine how much higher are we going to go? We're at an all-time high right now. And when you look at that, do you realize that if you purchased property yesterday or any time before then, you've made money in real estate? It always goes up. It's undefeated. Even if you purchased property, at the peak in 2008. The day before the market crashed, you would still double your money if you just didn't sell. Pretty remarkable, isn't it? And for investors, this means a few things. If you're looking to buy right now, be prepared for some competition out there, some potentially higher prices. It's crucial to stay informed and act quickly when opportunities arise. For those of you holding properties, the advice here is very clear. Hold on tight. Do not let go. With home prices expected to increase your investments are likely to appreciate in value. Likely. Now, they're going to appreciate in value for sure, particularly if those rates come down a little bit and we get that price search. And if you're considering refinancing, keep an eye on those rates, but don't wait too long to make a move. I mean, we don't have a crystal ball. It could go the other direction and you could be trapped into something. But if you're looking to buy, I would also say, don't wait for the rates to come down because now you're going to have

greater competition in those prices. You're going to go out in the other direction. If you can manage it and you don't over leverage yourself and don't put yourself in any uncomfortable situation, by now while there is still someone for negotiating while the market activity is a little slow. And then And when rates do come down, you'd have already locked in. You're the lowest price you'll probably see. And then you could get the best of both worlds and get the lower rates through a refinance as well. And then to wrap up the real estate market this year, it's all about strategy, really.

And maybe to some degree timing, if you have the ability to do that. And while the timing might not be perfect for an optimal cash flowing scenario, consider this, the big money in the market, they're not pulling back. They know you're scared. So they're taking advantage of that while you sit and kind of wait to see what happens. names like Blackstone, Jeff Bezos, Lenar and the Toll Brothers, they're all still buying and they're all still building. And those that are building, they're not building to put those on the market and sell.

They're building to keep them themselves. And that right there could be the biggest clue as to where the market is headed than any other. All right. That's all I got. And thanks for tuning in. And 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-sweetradio.com.