45 min
Navigating Awful Housing Affordability - Rick Sharga Joins Keith Get Rich Education
-
- Investing
The Fed can raise interest rates, but they cannot create housing supply.
Housing intelligence analyst Rick Sharga joins us for the second week in a row.
This housing market is awful for primary residence homebuyers. But at GRE Marketplace, you can still buy income properties with rates as low as 4.75%.
Rick tells us that the most prosperous markets now favor the: Midwest and Southeast, single-family homes, rental property investors with buy-and-hold strategies.
National home prices are appreciating modestly. Home sales volume is still down.
Investors now account for more than one-quarter of property purchases.
Mortgage delinquencies are near an all-time low.
Rick and I discuss why this market is so bad for flippers.
High homeowner equity positions ($300K+) support this housing market.
Timestamps:
The impact of rising mortgage rates [00:02:37]
Discussion on how the Federal Reserve's raising of short-term rates has caused mortgage rates to go up, affecting the housing market.
The affordability challenge [00:03:38]
Exploration of the impact of higher mortgage rates on homebuyers, particularly first-time buyers, and the decrease in affordability.
Low supply of homes [00:08:48]
Analysis of the low inventory of homes for sale, with a decrease of 9% from the previous year and 47% from 2019, leading to a challenging market.
The mortgage rate lock in effect [00:11:05]
Discussion on how the mortgage rate lock in effect can crimp demand but cannot create supply.
Hottest markets in the Midwest and Southeast [00:11:05]
Analysis of the hottest real estate markets in the Midwest and Southeast regions of the United States.
Positive turn in home price appreciation [00:13:06]
Explanation of how home price appreciation went down but has recently turned positive again.
Housing Permits, Starts, and Construction [00:21:24]
Discussion on the trends and levels of housing permits, starts, and construction, and the need for builders to increase production.
Investor Activity in the Residential Market [00:22:28]
Exploration of the percentage of home purchases made by investors, with a focus on small and medium-sized investors and the misconception of institutional investors dominating the market.
Delinquencies and Foreclosures [00:24:36]
Analysis of mortgage delinquency rates, foreclosure activity, and homeowner equity, highlighting the low delinquency rates, the presence of equity in foreclosed homes, and the importance of early-stage foreclosure sales.
The future direction of rents [00:32:00]
Discussion on the potential upward pressure on rents due to low affordability and high homeownership rate.
Inventory coming to the market [00:33:03]
Exploration of the impact of expensive inventory coming to the market and its effect on rent prices.
The overall economy and housing market [00:34:03]
Consideration of the possibility of a recession, unemployment spike, and foreclosures affecting the housing market.
The coach's role in finding real estate deals [00:43:06]
Explanation of how an investment coach can help you find the best real estate deals in the marketplace.
Advantages of buying properties from marketplace [00:44:20]
Reasons why buying properties from marketplace can lead to good deals, including lower prices and absence of emotional seller involvement.
Resources mentioned:
Show Notes:
www.GetRichEducation.com/467
Rick Sharga’s website:
CJPatrick.com
Rick Sharga on X (Twitter):
@RickSharga
Get mortgage loans for investment property:
RidgeLendingGroup.com or call 855-74-RIDGE
or e-mail: info@RidgeLendingGroup.com
Invest with Freedom Family Investments. You get paid first: Text ‘FAMILY’ to 66866
Will you please leave a review for the show? I’d be grateful. Search “how to leave an Apple Podcasts review”
Top Properties & Providers:
GREmarketplace.com
GRE Free Investment Coaching:
GREmarketplace.com/Coach
Best Financial Education:
GetRichEducation.com
Get our wealth-building n
The Fed can raise interest rates, but they cannot create housing supply.
Housing intelligence analyst Rick Sharga joins us for the second week in a row.
This housing market is awful for primary residence homebuyers. But at GRE Marketplace, you can still buy income properties with rates as low as 4.75%.
Rick tells us that the most prosperous markets now favor the: Midwest and Southeast, single-family homes, rental property investors with buy-and-hold strategies.
National home prices are appreciating modestly. Home sales volume is still down.
Investors now account for more than one-quarter of property purchases.
Mortgage delinquencies are near an all-time low.
Rick and I discuss why this market is so bad for flippers.
High homeowner equity positions ($300K+) support this housing market.
Timestamps:
The impact of rising mortgage rates [00:02:37]
Discussion on how the Federal Reserve's raising of short-term rates has caused mortgage rates to go up, affecting the housing market.
The affordability challenge [00:03:38]
Exploration of the impact of higher mortgage rates on homebuyers, particularly first-time buyers, and the decrease in affordability.
Low supply of homes [00:08:48]
Analysis of the low inventory of homes for sale, with a decrease of 9% from the previous year and 47% from 2019, leading to a challenging market.
The mortgage rate lock in effect [00:11:05]
Discussion on how the mortgage rate lock in effect can crimp demand but cannot create supply.
Hottest markets in the Midwest and Southeast [00:11:05]
Analysis of the hottest real estate markets in the Midwest and Southeast regions of the United States.
Positive turn in home price appreciation [00:13:06]
Explanation of how home price appreciation went down but has recently turned positive again.
Housing Permits, Starts, and Construction [00:21:24]
Discussion on the trends and levels of housing permits, starts, and construction, and the need for builders to increase production.
Investor Activity in the Residential Market [00:22:28]
Exploration of the percentage of home purchases made by investors, with a focus on small and medium-sized investors and the misconception of institutional investors dominating the market.
Delinquencies and Foreclosures [00:24:36]
Analysis of mortgage delinquency rates, foreclosure activity, and homeowner equity, highlighting the low delinquency rates, the presence of equity in foreclosed homes, and the importance of early-stage foreclosure sales.
The future direction of rents [00:32:00]
Discussion on the potential upward pressure on rents due to low affordability and high homeownership rate.
Inventory coming to the market [00:33:03]
Exploration of the impact of expensive inventory coming to the market and its effect on rent prices.
The overall economy and housing market [00:34:03]
Consideration of the possibility of a recession, unemployment spike, and foreclosures affecting the housing market.
The coach's role in finding real estate deals [00:43:06]
Explanation of how an investment coach can help you find the best real estate deals in the marketplace.
Advantages of buying properties from marketplace [00:44:20]
Reasons why buying properties from marketplace can lead to good deals, including lower prices and absence of emotional seller involvement.
Resources mentioned:
Show Notes:
www.GetRichEducation.com/467
Rick Sharga’s website:
CJPatrick.com
Rick Sharga on X (Twitter):
@RickSharga
Get mortgage loans for investment property:
RidgeLendingGroup.com or call 855-74-RIDGE
or e-mail: info@RidgeLendingGroup.com
Invest with Freedom Family Investments. You get paid first: Text ‘FAMILY’ to 66866
Will you please leave a review for the show? I’d be grateful. Search “how to leave an Apple Podcasts review”
Top Properties & Providers:
GREmarketplace.com
GRE Free Investment Coaching:
GREmarketplace.com/Coach
Best Financial Education:
GetRichEducation.com
Get our wealth-building n
45 min