Jason talks about the importance of understanding the relationship between household real estate value, mortgage debt, and GDP. The presented chart indicates increased equity and decreased mortgage debt as a percentage of GDP, highlighting a more stable housing market. He touches on the benefits of leveraging properties and he analyzes a chart on median sold prices based on bedroom count, revealing significant appreciation in lower-priced properties.
Jason welcomes Len Kiefer, Deputy Chief Economist at Freddie Mac, as they discuss the current state of the real estate market. Despite concerns about rising interest rates, Kiefer highlighted the resilience of the U.S. economy, emphasizing the stability of the housing market throughout 2023. While acknowledging a potential slowdown in consumer spending due to higher rates, Kiefer pointed out that the housing market has seen low transaction volumes and reduced refinance activity, impacting affordability. He also discussed the unique situation of homeowners with ultra-low mortgage rates, estimating the value of their locked-in rates at around $55,000 per borrower. Kiefer predicted a gradual thawing of the market as consumers adapt to the new interest rate environment. He also underscored the importance of considering broader economic factors and demographic trends in understanding the housing market’s dynamics.
#RealEstate #HousingMarket #EconomicOutlook #Millennials #HousingMarket #RealEstate #EconomicAnalysis
Key Takeaways:
Jason’s editorial
1:28 Introducing Len Kiefer, Deputy Chief Economist at Freddie Mac
1:46 Chart: Household real estate value and mortgage debt as percent of GDP
4:43 FireYourManager.com
5:41 RocketHomes Chart: Median sold price by bedroom count
Len Kiefer interview
8:33 The view from 30,000 feet
11:24 Charts: Spike in mortgage rates made it very expensive for homeowners to move
13:25 Chart: Historically low rates in previous years means there is no Refi incentive given today’s rates
14:47 Chart: Homeowners locked into low mortgage rates are content to remain in their current homes
20:53 Market is starting to thaw
22:34 Chart: Due to savings from fixed mortgages, household spending may be less sensitive to financial conditions
27:30 Chart: Housing demand robust on favorable Age demographics of FTHBs
31:53 Chart: The U.S. faces a massive undersupply of housing
34:40 Chart: Strong demand from FTHBs and low supply led to a surge in entry-level home prices
38:32 Higher housing costs are contributing to more young adults living at home with their parents
For more information visit https://www.freddiemac.com/research
Follow Jason on TWITTER, INSTAGRAM & LINKEDIN
Twitter.com/JasonHartmanROI
Instagram.com/jasonhartman1/
Linkedin.com/in/jasonhartmaninvestor/
Call our Investment Counselors at: 1-800-HARTMAN (US) or visit: https://www.jasonhartman.com/
Free Class: Easily get up to $250,000 in funding for real estate, business or anything else: http://JasonHartman.com/Fund
CYA Protect Your Assets, Save Taxes & Estate Planning:
http://JasonHartman.com/Protect
Get wholesale real estate deals for investment or build a great business – Free Course: https://www.jasonhartman.com/deals
Special Offer from Ron LeGrand:
https://JasonHartman.com/Ron
Free Mini-Book on Pandemic Investing:
https://www.PandemicInvesting.com
338: Socrates AI Model- Unveiling the May 7th Turning Point: Recession, Civil Unrest & International War Ahead? | Martin Armstrong
337: Retail Renaissance- Return of the Commercial Real Estate Market
336: Predicting the Next Economic Recession & Revolutionizing Banking with Decentralized Finance | Campbell Harvey
335: Declining Home Sales- What It Means for Investors and Renters with Selma Hepp
334: Global Economy, Demographic Trends and the Resilience of the US Rental Housing Market
332: 2024 Housing Market Forecast: Why Home Prices Are Set to Soar Despite Challenges
331: Unveiling the Macro Trends Shaping the Housing Market
330: Debunking the Fear Porn- Economic Cycles and Housing Stability
329: Inflation-Induced Debt Destruction: How Real Estate Trumps Traditional Investments
328: Geopolitical Instability and Real Estate: How the U.S. Stands Out with Joe Brown
327: The Current State and Future of Rental Housing: Exploring COVID-19’s Impact, Demand Surge, and Challenges for Affordable Housing with Jay Parsons
326: Housing Bubble Myth, Shadow Demand, Lower Existing Home Sales, Increased Mortgage Rates, Outlook for 2023 with Rick Sharga
325: Demography Affects Real Estate, Income Property – Low Tech Asset Class, Supply Chain & Massive Worldwide Inflation
324: Unveiling the Secrets of Tax Sale Investing with Julia Spencer: How Maintaining Control Can Help You Profit from the Current Housing Shortage
323: Inflation Induced Debt Destruction, Fractional investing, Empowered Investor Pro, FHA Mortgage Insurance Premium, Tobias Peter Part 2
322: Housing Market Indicators, Home Price Appreciation, FHA Mortgage Insurance Premium Risks, Housing Shortage Proposed Solution, American Enterprise Institute, Tobias Peter Part 1
321:Oren Klaff, Flip The Script, 58 Million Dollar Cities, Empowered Mentoring Program, Hot & Cold Cognitions
320: Housing Inventory Falls, Silicon Valley Bank Collapse, Moral Hazard, Mismanaged Portfolio, Improper Risk Management, Alfonso Peccatiello
319: Silicon Valley Bank Run, Runaway Inflation, Banking System Collapse, Protect Your Assets, Inflation Induced Debt Destruction
Create your
podcast in
minutes
It is Free
The Commercial Edge: Unleash the Power of People
The emPOWERed Half Hour
Creating Wealth Real Estate Investing with Jason Hartman
Accredited Income Property Investment Specialist (AIPIS)
The Creating Wealth Show Blogcast
Solomon Success » Podcast
American Monetary Association