US housing markets have started to shift. The massive run-up in home prices eventually led us to high interest rates, high inflation, and a generation of renters who can’t afford to buy, even with price cuts. This should come as no surprise, as Moody’s Analytics estimates that some eighty percent of real estate markets are overvalued. Of those markets, where are the opportunities to invest the highest as prices naturally start to decline?
Instead of speculating, we brought Cris deRitis, Deputy Chief Economist at Moody’s Analytics, onto the show to explain why this is happening, what his team is forecasting, and how investors like us can stay prepared. Cris and his team diligently look through data to predict how the housing market will move. He knows that it’ll take time for the market to finally reach equilibrium again. But, unfortunately, this may not happen any time soon.
Cris’s team is focusing on looking at a few things: demographics, supply, and demand. Each influences the others severely and leaves hints at where the housing market is headed next. Dave and James tag-team this episode, touching on whether US housing will become even more unaffordable, long-term home supply predictions, affordable housing, and a demand drop-off that could end real estate investing over the next decade.
Dave:
Hey, what’s going on everyone? Welcome to On The Market. I’m your host, Dave Meyer, joined today by James Dainard. James, what is going on, man?
James:
Oh, doing well. Just grinding through this market right now. We are in rapid wrap things up. It has definitely been transitioning pretty aggressively in the last four to six weeks.
Dave:
Well, as we’re going to hear from our guest today who is incredible, the guest today is Cris deRitis, who is the Deputy Chief Economist at Moody’s Analytics. He specializes in assessing the economy’s impact on household financing, housing credit markets, and public policy. He’s incredible guest. We had an amazing…