What Next for Housing Market? Interest Rates Shoot Higher!!!

Published: July 5, 2024, 2 p.m.

In this episode, the host discusses the unexpected rise in the ten-year note and its impact on mortgage rates with guests Matt and Ty. They explore the reasons behind the rate hike, the potential consequences for the housing market, and strategies for investors to navigate this challenging environment. The conversation highlights the importance of understanding market dynamics, being prepared with the right financial tools, and the opportunities that a slow market can present for savvy investors.

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[00:00] Introduction and discussion on the unexpected rise of the ten-year note by 13 basis points and its implications for mortgage rates.

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[01:39] Analysis of the short-term increase in mortgage rates and its impact on the housing market, including higher rates leading to the need for lower offers to maintain returns.

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[02:33] The importance of understanding the difference between a list price reduction and getting a good deal, emphasizing the need to do the math and focus on great deals.

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[03:22] The current state of the housing market: longer days on market, price reductions, and the emergence of buyer concessions.

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[04:17] The opportunity for investors in a frozen housing market, with the potential to find motivated sellers and negotiate better deals.

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[05:05] The changing tone among buyers as the election approaches, leading to more hesitancy and potentially fewer transactions.

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[06:10] Insights from real estate agents on the disparity between high-demand properties and those that are sitting on the market.

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[07:32] Case study: a listing with 88 days on the market and three price reductions, highlighting the importance of identifying motivated sellers and considering creative financing options.

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[08:56] Ty's insights on the market positioning well for creative financing strategies and the opportunities that arise in the second half of the year.

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[10:29] Upcoming class on creative financing and investment strategies, including novations, seller financing, and lease options, to be held on July 7th.

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[11:09] Overview of recent sessions in the school community, including a mortgage session with Matt the Mortgage Guy, and the value of these educational resources for investors.

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[13:57] Announcement of a new reality TV-style series "Buying Vegas," premiering on July 4th, showcasing Michael and Olivia's journey in buy-and-hold investing.

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These show notes provide a comprehensive overview of the episode, highlighting the main discussion points and offering easy access to mentioned resources.

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