Episode 24: Forecasting 2020 Real Estate Inventory with Michael Wallet

In Episode 24 of Intelligent Equity, host Ryan Kiefer talks with Michael Wallet of Star One Realtors. Michael shares what he thinks will happen with the local housing market in 2020, and why inventory levels are at an all-time low. Learn how the demographics for first-time buyers have changed and why Michael believes there’s no recession in sight. 

Episode Highlights: 

• Michael Wallet has been in real estate for fifteen years. He began at age nineteen, flipping homes with his father.
• 2020 will be similar to 2018 and 2019 for the real estate market. There will be less inventory. 
• There’s already 15% less inventory this year vs. last year so far.
• Supply is low and demand is high.
• Sellers are selling at prices that are similar to 2005-2007.
• Inventory levels are at an all-time low.
• In the first-time buyer segment, there's very limited inventory. At the higher end there's a little more inventory.
• Many first-time buyers learned a lot from the recession and are not stretching beyond their means to buy homes they can't afford.
• It seems like an early spring market this year. First-time buyers are trying to get ahead of the curve a little bit.
• A recent article said that millennials buy homes later. The average age of first-time homebuyers is 33.
• There are four to five years coming up with demand.
• In the current market, Michael encourages prospective buyers to jump on properties if they are interested.
• These buyers do not have time to think about it because the market is as competitive as ever.
• People don't realize that sellers are incorporating closing costs into the purchase price.
• If you can, pay for the closing costs yourself so that you're not asking for more concessions.
• There are many different grant programs to help first-time homebuyers.
• People used to stay in their homes for seven years on average. Now it's up to thirteen years, which is part of why we have this inventory shortage.
• Michael is committed to serving the community. He is currently coaching middle school basketball.

3 Key Points:

1. Inventory is at an all-time low and the market is very competitive.
2. First-time homebuyers are older than they’ve been in the past. There are four to five years of ongoing demand coming up. 
3. Advise your prospective buyers to get started right away when they’re interested in a property.

Resources Mentioned:

• Ryan Kiefer: LinkedIn, Facebook, Website
• Michael Wallet website, Facebook, LinkedIn