Predicting and understanding the current state of the real estate market can be a massive challenge for most real estate investors. Rents being impacted in a negative way will certainly hurt the overall real estate market. With the pace of how fast the market has changed, what does this mean for real estate investors and those who heavily buy and hold rental property?
On this episode, Jason brings on Steven Thomas Founder of ReportsOnHousing.com to give his feedback on the current state of the market and how it will affect things moving forward.
Utilizing his Quantitative Economics and Decision Sciences background coupled with his years of experience in the real estate field as a REALTOR®, broker, and executive of a multi-office real estate franchise, Steven Thomas delivers a report that captures the true essence of the current real estate market.
Most economic housing reports analyze and discuss closed sales data, a look at the market through the rearview mirror. Closed sales are a reflection of pending sales that are put together 30 to 60-days prior to the closing. Reports on Housing’s report is a close look at supply and demand, the current listing inventory, current pending sale activity, and the expected market time for homes placed onto the market today. It is more of a current real estate market dashboard than a look in the rearview mirror.
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Key Takeaways:
Jason’s editorial
00:00 Introduction
02:25 What is the right way to think about real estate investing?
05:02 How are inventory numbers doing today?
10:11 What will happen if inventory continues to increase at this rate?
14:55 What was the market like in 2015?
Jason interviews Steven Thomas
18:28 Who is Steven Thomas?
19:30 Why are people hesitating to let go of their properties?
21:55 Have we ever been in a market like we have today?
22:50 How long will the impact of inflation affect the market?
27:54 Will mobile mortgages be implemented soon?
29:07 What will the CPI be like in the coming years?
33:07 How is inflation affecting society today?
36:23 Why is the model for supply and demand broken?
38:33 What markets are seeing inventory catching up to pre-COVID levels?
39:48 What will happen to wages in this high-inflation economy?
41:10 What should we be expecting to happen in the market?
43:50 What makes the current condition of the market different?
45:01 Why should people focus more on rental properties?
48:50 How can you reach out to Steven?
49:05 The Collective Mastermind Group
Quotables
“Income doesn’t mean you have a ton of positive cash flow because hopefully, you’re using leverage on your properties. It just simply means that the asset is producing income to pay debts for you.”
“It’s not necessarily that many people are not ready to make a move, it’s just that they don’t want to because it’s so cost-prohibitive and when it gets this cost-prohibitive, they may not be in love with their home, but they’re in love with their loan.”
“The new underwriting has become so strict that the homeowners have good credit scores, they have low interest rates, 40% of loans in the country are paid off.”
“Overall, rents make the deal work and people, I really think should be more focused on that rental income than the housing prices because our people are not flipping these houses – they’re buying them and holding them for long-term income.”
“Income properties are pretty darn stable and the income component is quite reliable.”
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