Welcome, folks, to the 200th EPISODE!
This one is going to be all about predictions for the rest of 2023 and 2024. The bottom line? Um, David has been right so far about these predictions and many economists are following right along. But, he’s going to give you all the facts so you can follow along and make some of your own predictions along the way.
Here are some power takeaways from today’s conversation:
What experts are saying – the good, the bad, and the ugly
Why a crash is impossible
What’s up with mortgage rates
What is going to happen to housing prices
[04:15] A Quick Recap
Despite high interest rates and high home prices and high mortgage rates, it’s all going even higher this summer. Patterns indicate that the numbers will steadily increase through 2024. If you’re hoping that they drop, well, they did drop. And you missed it – sorry! The only time home prices dropped month over month was from July 2022 to January 2023. Now, we’re right back where we started – that steady increase. And what’s the cause of that? Well, How to Buy a Homies, you know the answer. Say it with me: “LOW INVENTORY.” Because of this, David predicts that there will continue to be a steady increase with very little evidence showing that there could be a decrease.
[15:45] Will There Be a Housing Crash?
Well, probably not. According to the research David did, there are a few folks out there who think there could be, but the majority of sources say, “No, there won’t be one.” As David says, a housing crash, or a housing bubble, is financially and physically impossible when you break down the data. A crash can only happen when the number of homes outweighs the demand, but as we’ve said over and over and over again, inventory is low . There aren’t enough homes to keep prices down, so we’re going to be stuck in the slowly rising prices here for a little while.
[34:34] Recessions Aren’t Always Bad for Housing
As in many cases, our trusty friends the Feds like to jump in and get involved with the banking process. According to some experts, inflation occurs when the Feds raise the bank rates too fast and lower them too slowly. This can cause a recession, but not always a big one. In today’s economic climate, it appears that we’re in a mini recession. But, typically in recessions (besides that crazy time in 2008), house prices go up. However, even in recessions, housing is a safe and stable investment.