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.
Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.