Zillow CEO Warning For 2024 Housing Market.'First Time Buyers Are Giving Up!'

The 2024 housing market has been a rollercoaster of soaring house prices and inventory. Recent statements from Zillow's CEO, Richard Barton have sent ripples through the industry.
He highlighted a concerning trend: first-time homebuyer activity is not meeting expectations, which could signal broader issues for the housing market.
Zillow's recent shareholder letter indicated that the company's residential revenue for the second quarter is expected to slow down compared to the first quarter, primarily due to these challenges facing first-time homebuyers and the overall mortgage market. 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.

[micheal_mills]

I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?

[DorathyJoy]

I'm hoping there will be a housing crisis so I can buy cheaply when I sell a few houses in 2025. As a backup plan, I've been thinking about purchasing stocks. What advice do you have for choosing the best buying time? On the one hand, I continue to read and see trading earnings of over $500k each week. On the other side, I keep hearing that the market is out of control and experiencing a dead cat bounce. Why does this happen?

[ramonibarra]

41 percent everyone I know that bought recently it’s 50 to 60 percent, qualified with an extra income of another family member, fake numbers

[JaxonPetersen-cujt]

Don't cite Redfin. They've been known for spreading false Real Estate statistics.

[michaelsd]

This is going to be a slow and painfully prolonged market correction. There are no significant catalysts to cause mass home price decreases (which is the main issue). Between 2020-2022 home prices increased by +40% simply based on demand (i.e. no true home value increase like adding additional livable sqft, kitchen/bath remodels, etc.). Housing inventories are increasing but largely due to resales as new construction is slowing as seen in the downward trend of permits and new build starts. The new multifamily construction is also looking to slow as architect billables is trending downward. Currently +78% of mortgage holders are sitting on mortgages with 4% or lower so no real pressure to sell. So what is the cure? its very simple, its bring home prices back in line with historical trends. Exactly as noted in this video. Personally its getting extremely frustrating to see all the realtor YouTubers telling people the listing prices are good, but the interest rates are too high. I call BS.

[ieuqcqz]

Seller listing houses with 2022 property tax hiding the 2023 property tax which is at least 1000k more than 2022 tax!!! Be careful buying. The property tax will be the assessed by the amount of purchase price

[patgreco]

Everyone wants their own house...nobody wants to be a sorry ass bank owned debt slave...soooo.

[KennethLeeAtLGA]

Technically it's cheaper to rent than buy and its good for the hedge funds who own rentals so they can make their money back then they will sell the homes with tax payer 1st time homebuyer programs unloading the re onto the American public and tax payers with special programs for tenants who have been renting will be their credit score. Its coming just dont know when.

[henrybiernacki]

When it falls, it is going to be worse than 2008! Do well! JAJA.