Home prices are a big part of the housing market. But not as big as interest rates. As the Federal Reserve sets out to “kill the economy” with rising mortgage rates, researchers like John Burns dig through the data to find out what real estate investors can do to take advantage. John isn’t a beginner in the real estate space—his consulting company has been doing this type of work for two decades, providing some of the biggest real estate investors with the most up-to-date information.
John isn’t optimistic about this housing market. The data he’s been collecting shows that home prices could see dramatic drops over the next couple of years and that the housing supply problem may only get worse. But, he also sees opportunities for investors that could take the place of the appreciation gains we got all too used to. John’s team participates in over nine hundred consulting studies a year, meaning if there’s one person who knows what’s happening in the housing market, it’s probably him.
In this episode, we talk about housing market predictions, how flippers got caught, why Ibuyers are less of a threat than most investors think, and what will happen to the housing supply as developers start selling off homes at break-even prices. Are we heading towards a 2008-sized cliff or could this be a small hiccup on the continuous road to real estate appreciation?
Dave:
Hey, everyone. Welcome to On the Market. I am joined here with Jamil Damji, coming to me from Phoenix, LA? Where are you?
Jamil:
I’m in Phoenix today, enjoying life, enjoying all of the fun-ness that comes-
Dave:
What’s the fun-ness? What do you-
Jamil:
What’s the fun-ness? Well, we actually got some offers on some of our flips. That’s been really relieving to me. Beyond that, I’m almost done filming season two of our television show. So, I’m about to become a free man.
Dave:
Dude, you’ve literally been saying that since I met you which was at least six months ago. It’s so hard. I…