Zillow CEO issues 2024 market warning. “First time buyers are dropping out.”

The CEO of Zillow just issued a warning that first-time homebuyers are beginning to drop out of the housing market in 2024. And that this reduction in buyer demand could hurt Zillow's business and revenue in the second quarter.

Zillow makes their money by selling leads to realtors in their Premier Agent program. So a reduction in first-time homebuyer demand is of big concern. Buyers are dropping out the housing market because mortgage rates have surged over 7% while prices are still high. Creating historically bad housing affordability where the typical mortgage payment for buyers is now over $2,800/month.

This situation has led to a massive crash in homebuyer and mortgage demand. And that crash is starting to impact the housing markets in states like Texas, Florida, and Tennessee. Where we're seeing the biggest surge in inventory and homes for sale. As well as lots of price cuts.

Data from Redfin shows that the price cut levels on the US housing market have surged to the highest rate in a decade. Suggesting there could be downward pressure on home prices later this year.
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Track Reventure's Home Price Forecasts for your city and ZIP code at www.reventure.app.

Cities with the lowest scores include:

Punta Gorda, FL: 26/100
Killeen, TX: 32/100
Austin, TX: 34/100
San Antonio, TX: 35/100
Ocala, FL: 35/100
Lakeland, FL: 35/100
Cape Coral, FL: 36/100
Sarasota, FL: 37/100

These are the markets with the highest likelihood of price declines in 2024. However, there can be huge variation within counties and ZIP codes. So search your areas now on Reventure App. www.reventure.app.

[SeanTalkoff]

I’m in Ohio and the housing market here over the last 7-8 years is unlike anything I’ve ever seen. Homes that were bought for $130K in 2015 are now being sold for $590k. I’m talking about tiny, disgusting, poorly built 950 square foot shit boxes in quiet mediocre neighbourhoods. Then you’ve got Better, average sized homes in nicer neighbourhoods that were $300K+ 10 years ago selling for $750k+ now. Wild times.

[LoughBellis]

I’m a new dad, I moved to the Bay Area a few years ago and I’m thinking of purchasing a single family home, but with real estate prices currently through the roof, is it still a good idea to buy a home or should I invest in stocks for now and just wait for a housing market correction? I heard Nvidia and AMD are strong buys.

[Andres_]

I grew up in an area of Miami that is mostly made up of * middle-class Cuban Americans where just five years ago a house would cost 250-350k for the most part.
Now the cheapest one goes for 600k. Forget working class being able to afford them. A professional lawyer, engineer, etc. would now struggle to buy a home in that same neighborhood. Something needs to change and it will change

[mida]

They want 800K for fixer uppers here in SoCal. No shit, I'm dropping out.

[BrewerVera]

Great video! For 2024, it’s hard to nail down specific predictions for the housing market is because it’s not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars.

[Amrknegypt]

im boycotting the housing market until I see 2017 prices.

[sheh.]

“cutting prices” is really sellers dropping $5-10k, still very overpriced

[nejo]

Definitely still too expensive to buy a house 🏠🏡.

[th_CAV_Trooper]

They want 500 to 600 k for mid century homes in Tampa and you can't get insurance for them. Fun times.

[stevetech]

im in the middle of middle income earning about $165-$170k this year. i still am out of this market. no way can i afford even a $400k 30year mortgage payment. no thanks. sellers are maxing their prices cuz they think blackrock or some other criminal investment bank will pay their ludicrous high prices cuz families are absolutely priced out. buying a house in america today is a joke. it is no longer a dream. its a fucking nightmare. good luck with your $3500 monthly payments.

[mauibuilder]

What's even crazier is they paid $695, 000 in October of 2018. Always look at what the seller paid. Many are trying to get double or more what they paid 5 years ago (or less). That's 100% or more "appreciation". Sorry sellers, but I hope the bubble bursts soon. It's amazing how many empty homes are listed on Zillow as well.

[siaosanna]

Just got a "good deal" on a property in the Midwest. Very lucky that the seller was in a hurry and I told them point blank I couldn't afford what they were asking. Ended up getting it for 2/3rds the appraised value. But appraisals have been so insane, I still feel like I overpayed.

The writing's on the wall and I think the sellers are starting to realize it

[donesy]

But all agents say “it’s a great time to buy!” 🤣

[joking]

Don't rely on Zillow estimates folks !!! They are way off, please be careful !!!

[erescue]

Zillows zestimate is a number calculated in my opinion by shear "nonsense". I can't tell you the number of homes I have viewed on Zillow with the exact same "end of March" spike in value. I have been looking at homes in SW Missouri with a "worthless" USDA loan approval and if one knows how to pick apart the listing (age, square footage, especially, price per square foot) the numbers just don't match the market valuations! I come to my conclusions as a former licensed appraiser, Zillows numbers are "Pure Hooey". LET THE BUYER, BEWARE!
I applaude you for bring this BS to your viewers attention. These present listings for the Most part are highly inflated, with the homes in reality NOT worth the Asking

[ShineLikeaProAZ]

In 2020, you could buy a 3 bedroom, 2 bathroom, 1, 400 sq ft home in San Tan Valley, AZ for $200, 000 now that same home today is $450, 000 + which is criminal.
My wife and I make $150, 000 a year, and with high interest rates, I am not buying a home anytime soon.

[Pangora]

First Time Buyers can't get in at all.

[lobelle]

Sellers with 2.5% mortgages can’t move to a similar home with 7% home without their home selling for a high amount

[janrodriguez]

What a difference 5 years makes. Housing prices doubled in that time and in many cases current homeowners haven’t even done anything to improve the home. It looks the same as it did 5 years ago. Nothing has changed yet everything has.