What Happens To Home Values When Inventory Shifts

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[brianK]

Wow how easy it is to trust advice when its explained in a logical way using the facts. +1 Sub

[ShabbaBabba]

We will definitely need an update once we get to week 8. Also, I think the interest rate comparison for historical context would be super helpful too. It doesn’t have to be a case of causation, but it would be interesting to see what interest rates were then during the rise and fall to what we’ve seen in the past 4 years.

[Wrought_Iron_Wolf]

I think Christmas time (people being on holiday break, spending time with family, finishing up tasks before year end) and tax refunds both play into why demand jumps at the beginning of the year. Just a marker of a typical season in American lifestyle.

[Garage]

Can you do an episode just on Foreclosures? How do you purchase one and is it worth it. Sadly those are on the rise in the retirement cities like SunCity.

[papermoon]

Credit, Income, Assets, and dont forget to save folks.

[rathelmmc]

The biggest issue with flat pricing or even slightly down pricing is that refinancing starts to seize up. Most people don't refinance because they've been paying off their mortgage. They can refinance because their property becomes worth more. Cash out refis also allow people who can't afford their debt to stay in the game longer.

As this engine of house appreciation starts to turn negative it creates a negative feedback loop on house values.

[nickylantigua]

A lot of people got fired or lost jobs march of 2020 then when they government started giving out money and lowering rates then that's when everything went hyperbolic

[ammonwarnick]

I think the reason why it rises in weeks 1-8 is because a lot of people get Christmas bonuses and are willing to use that as a down payment.

[moretoliving]

I do not buy into supply and demand shtick when it comes to housing market. It all comes down to the human factor. #1 people in USA are convinced that a house is an asset that need to go up in price so based on that assumption a 1952 house with 1952 insides (and yes that includes interior design too) should naturally be listed for $1, 200, 000 because obviously why not. #2 supply does not drive prices anywhere. Florida has so much supply that you can practically swim in it but it does not reduce prices. In fact the more supply we have, the more aforementioned people raise prices. #3 Why? Because an old dilapidated 1952 house since on 0.5 acres of land that could be demolished and have 19 homes build on top of the lot that sell at $870, 000 each and there are people from NYC area that has that kind of cash to pay. #4 Why... really...? Because an old dilapidated house can not get worse because it is already in a horrible shape so it sitting on the market for 270 days does not make it any worse for wear. This can be seen in investors buying homes and speculating them for the heck of speculating them just because. Bought in 2019 for $150, 000, sold twice in 2020, 3 times in 2021, 2 times in 2022, 3 times in 2023 and listed again for sale for $1, 870, 000 in 2024.

For those that doubt me... look at inventory of single family homes in 20 mile radius from Bradenton, FL. It will make your jaw drop.

But in some markets supply and demand thing actually does play out.

[roberttaylor]

I'm under pressure to grow my reserve that currently holds about $250k. I'm down by 20% already following the crash and I fear I could lose more.

[BlackMetalBass]

Can you please make a follow up video once we have the data for weeks one through eight?

[Player-gndc]

What website has those charts & data?

[kylerooney]

Houses in Nash area are selling under asking price now. I'm not holding my breath for anything reasonable soon tho.

[jodeplank]

Was the rise in inventory in 2022 due to a normal number of new listings with a drop in demand? What, realistically, would bring about a rise in inventory in 2024 without also a rise in demand? After the '08 crash it was foreclosures, but I haven't figured out how it would come about in the foreseeable future. Foreclosures aren't that high (at least not where I am). Short-term rentals?

[EuroEnthusiast]

problem is homes that are cheap and affordable are the ones that need extensive work and banks will not allow financing on them, so they are sold for cash only. so, unless you have 100k+ cash and experience in Constuction/time to make improvements you can't get that affordable house. I watch someone buy a 90k house made renovations in 10 months and listed same house for 250k. cheap flooring, new paint, remodeled kitchen etc not worth buying the next owners get shafted with high interest and higher taxes

[Reactstocomments]

The only place that is cheap in California is Hemet California where a 0:04 18-year-old can get his first apartment. Four bedroom house $200, 000.

[iamdinosaurrowr]

Wish I lived somewhere that actually had houses on the market - I don’t see any influx here.

[dpbass]

This was really helpful. I bought real estate in 2018 and since then it has appreciated about 76% from the sales price I got it at. It’s currently a rental property and I’ve been on the fence on if I should sell or just hold on. My proceeds would be 280k after all fees (it’s fully paid off) and now it generates about $1500 per month in cash flows after all expenses.

Can I access all the info from this video myself to look at my area?

[jaydelacruz]

From an owner standpoint, Inventory will be scarce as people will latch onto their artificial net worth bump. External forces will need to come through for prices to lower (increase in development or alternative household supply)

[Sperggy]

You forgot that half the country was set on fire with 90% peaceful protests.