Rates droping a good thing?

[Zachary Stanley]

As all of us know the rates dropping for 2024 have had your average realtor and lender running to facebook to post about how great 2024 is going to be. 

I happen to be in the other boat... if you take the same amount of inventory then drop the rates its a recipe for another real estate frenzy.

If you pair the dropping of the rates and same amount of inventory with letting the population get used to 6-7% rates then drop them back in the 5's the market will be flooded with buyers again. 

The time to get your deals as investors is now not in the spring or summer of 2024. Thats why me and my investors have been buying the last year. If you can make something work now with current rates you can for sure make it work down the road. 

I say all of this knowing that you can find deals in ANY market... But I would love to know what you all are thinking. I would love opposing outlooks that yall may have. What do we think? 

[V.G Jason]

If rates are dropped into the mid to low 5s, we're in a recession. That completely destroys your demand thought process.

If rates drop even lower than that, then locked-in rate holders are going to become amenable to selling. So we just hit demand hard and now are increasing supply. We already knew supply was limited, but now it's increasing. What does that do to prices?

All of this is local & regional, but for sure we know the RTP and affordability crisis are probably at their worst points. This will tighten, undoubtedly.