The housing market is on an eternal teeter-totter rocking back and forth between supply and demand. When we have too much supply, housing prices drop as the pool of buyers is outpaced by the number of homes on the market. As supply shrinks to match or dip below levels of demand, more and more buyers start to fight tooth and nail, simply to get a roof over their heads. We’ve seen the housing market scales tipped heavily towards demand over the past two years, and low-interest rates could be making the market even more one-sided.
Dave Meyer, VP of Data and Analytics at BiggerPockets and host of “On The Market”, has kept a keen eye on available housing inventory, new homes on the market, and homebuyer demand. He’s had an inkling that even while home prices rise, equally high interest rates may be causing an inventory crisis that could last decades. This means more bidding wars, larger mortgage payments, and less cash flow for investors.
So, as a savvy homebuyer or real estate investor, how do you navigate the housing market in a time like this? Is it better to sit on the sidelines and wait for home prices to drop, or is waiting only going to cost you as demand continues to cause frenzy throughout the free market? Dave’s got some takes that you’ll want to hear, even if you don’t plan on buying anytime soon.
Join BiggerPockets for FREE 👇
Listen to The “On The Market” Podcast Wherever You Listen to Podcasts:
Apple Podcasts: https://podcasts.apple.com/us/podcast/on-the-market/id1615086704
Subscribe to The “On The Market” YouTube Channel:
Join BiggerPockets Pro for Up-to-Date Analytics and Articles:
Is a Wave of Foreclosures On The Way?
Is The Housing Market About to Collapse? What Investors Need to Know:
Redfin Data Used in This Video:
US Housing Market: https://www.redfin.com/us-housing-market
Data Center: https://www.redfin.com/news/data-center/
Nearly One-Third of Homeowners Have a Mortgage Rate Far Below Today’s Level:
Connect with Dave on BiggerPockets:
Follow Dave on Instagram:
@thedatadeli or https://www.instagram.com/thedatadeli/
00:00 “Locked In” Low Inventory
01:34 It All Comes Back to Supply & Demand
02:57 How’s Our Housing Inventory Looking?
05:42 Is More Inventory on The Way?
06:50 Will Homeowners Start Selling Their Houses?
07:40 Why Are Homeowners “Locking In”?
09:46 Will This Halt the Housing Market?
11:19 How Long Will This Last?
13:17 Tune Into “On The Market”!