We went to the HousingWire Annual where the community from across the housing ecosystem comes together to share strategies, drive business, discover new technologies, discuss best practices, and meet industry leaders.
And so many takeaways, let me tell you! The speakers were phenomenal, Logan Mohtashami – Lead Analyst
HousingWire, Sandra Thompson – Director Federal Housing Finance Agency, Mike Simonsen – President Altos Research, Frank Martell
– President and CEO loanDepot, and René Rodriguez – Keynote Speaker, Best Selling Author.
Takeaway #1 New Reality for Real Industry Players
The real estate industry is a cyclical one, and there are always winners and losers during the ups and downs. In the current market, those who are not able to adapt to the changing conditions are likely to be left behind. The survival of the fittest is a reality in the real estate industry. Those who are able to adapt to the changing conditions and provide value-added services will be the ones who are most successful. Those who are not able to do so will be left behind.
Takeaway #2 Inventory Problems is Going to Continue
Yes, the housing inventory problem is likely to continue for the foreseeable future. There are a number of factors contributing to this, including:
A shortage of new construction. The number of new homes being built has not kept pace with population growth in recent years. This is due to a number of factors, including rising costs of land and materials, and a shortage of skilled labor.
An aging population. The Baby Boomer generation is reaching retirement age and many are looking to downsize their homes. However, there is a shortage of smaller, more affordable homes available.
A strong economy. The economy has been strong in recent years, which has led to increased demand for housing.
Institutional investors. Institutional investors, such as hedge funds and pension funds, have been buying up a large number of homes in recent years. This has taken homes out of the traditional housing market and made it more difficult for individual buyers to find homes.
The surplus of old housing stock is a complex issue with a number of contributing factors. One factor is that many older homes are in need of significant repairs and renovations. This can make them less attractive to buyers, who may be unwilling to invest the time and money necessary to bring them up to modern standards. Additionally, older homes may not be as energy-efficient as newer homes, which can lead to higher utility costs.
Another factor contributing to the surplus of old housing stock is the changing demographics of the population. As the population ages, there is a growing demand for smaller, more accessible homes. However, many older homes are large and may not be suitable for older adults or people with disabilities.
In some cases, the surplus of old housing stock can lead to a shortage of housing. This is because developers may be reluctant to build new homes if there is a large number of existing homes that are not being sold. As a result, the supply of housing may not be able to keep up with demand, leading to higher prices and a shortage of affordable housing.
There are a number of possible solutions to the problem of the surplus of old housing stock. One solution is to provide incentives for buyers to purchase older homes. This could include tax breaks or grants for renovations. Another solution is to encourage the development of affordable housing. This could include zoning changes that allow for the construction of smaller, more affordable homes.
Ultimately, the solution to the problem of the surplus of old housing stock will require a multifaceted approach. By addressing the factors that contribute to the surplus, policymakers can help to ensure that everyone has access to safe, affordable housing.
As a result of these factors, the supply of housing is not keeping up with demand. This is leading to higher prices and making it more difficult for people to afford to buy a home.
Takeaway #3 Interest Rates Going Down Next Year and will Stabilize in 2025
So much hope in this takeaway! It’s exactly the assurance we have been waiting for. If the economy continues to grow at a moderate pace, inflation remains under control, and the Federal Reserve does not raise interest rates too quickly, then the housing market could stabilize in 2025.
The Federal Reserve needs to be able to achieve a soft landing for the economy so that the housing market could avoid a significant downturn. If inflation remains under control, then mortgage rates are likely to remain relatively stable. This could help to support demand for housing.