All Forum Posts by: Gregory Schwartz

 Each market is different but as a national average, the increasing rates have increased the inventory. Active inventory is up 40% this year. https://fred.stlouisfed.org/series/ACTLISCOUUS

Yes, there are less listings each much but the current listings are taking much longer to sell in most markets. This means that inventory keeps piling up. Basically, the demand is much weaker than the supply. 

 ouch. Mortgage News Daily is reporting rates up 0.21% to 7.13%

@Aaron Dyson those DR Horton homes are a great investment (IMO). Close to Rellis and the job growth in what the City of Bryan is calling the Texas Triangle. 

The only mistake is that you didn't work with me!!! I'm kidding. Managing these will be a breeze. Hit me up I'd love to help. Also, we need to get you to start coming to the BCS investor meet-ups! 

"I mistakenly had a rental policy instead of a builder’s risk policy."
I'll be honest this is often overlooked. And yes this is a 1 in 1000 situation but plenty of other disasters could happen and having the right insurance policy is huge to protecting down side risk. 

Thanks for sharing 

@Randall Alan Mark Zandi, one of my go-to economists, has also said that the rates should settle between 5.5-6% (https://www.cnbc.com/video/2023/11/27/mortgage-rates-will-se...). Which is why I thought rates would work their way down to the low 6s in 2025. 

But it looks like we might have to accept that rates will be much closer to 7%. 

So I guess the question is how long will it take for the general public to realize that 7% is the "new norm"? We know that there is pent-up demand and its generally accepted that that demand is being held back by "high" rates.

 I agree, but in this case, historical trends don't matter. All that matters is that buyers feel like rates are high and are reluctant to buy. Also lots of sellers have locked in <4% rates and don't want to buy at 7%

 How would 7% interest rates in 2025 effect the market conditions for you? Continued softening? Or will buyers get tired of waiting resulting in increasing demand? 

I just read this article from Redfin (Housing Market Predictions for 2025) that predicts mortgage rates will stay at 6.85% in 2025.

That seems like one of the few predictions saying rates will stay that high. Are they way off, or could they actually be right?

In my local market (College Station, TX), high rates in 2024 already caused a big jump in inventory, which created some good buying opportunities. If rates stay high, do you think inventory will keep climbing, opening up even more deals for buyers who are ready to pounce?

The most accurate way is to network with other investors in your market. Each strategy produces slightly different rent rates. Chat with them, and ask them where they find their guest (Airbnb, Furnished Finders, Insurance claims, etc). The software doesn't provide that level of granular detail that can mean the difference between 2k and 3k a month. 

I have 1 partner who provides up to 75% of the down payment, however, my goal has always been to live below my means, save money, and invest the saved money as a downpayment. 

In the last 5 years, we've invested over $300k of savings toward down payments and rehabs.