So you're you're always seeing the Market because you're in real estate the I guess I would just say now for most People if you're a first time home buyer And you're just looking for a home to to Buy forever right The numbers are pretty dramatically Different right if you if you did a Mortgage calculation in January And you've taken until now to buy It's it's not a little difference it's Like a it's a whopping Payment difference for most Americans That are saying hey I'm just going to Finance this thing it's like a 60 Increase for a lot of people Yes how how are you what do you think That does to the the General market and What are you gonna what do you think is Gonna happen just to real estate in General So my day job is at biggerpockets.com And we have a data anal a data analyst Who is absolutely brilliant and he has Done a lot of research into market Trends and Market information in general And he has shared with me that he Believes the inventory is 4 million Housing units short right now and the Economic law of supply and demand says That when Supply is low prices go up When demand is high prices go up we have Both high demand and low Supply so Prices are going to go up just because
Interest rates have gone up doesn't mean That demand is going to stop now demand Has fallen in a lot of places I'm in Colorado demand has fallen dramatically There is a lot more opportunity on the Market but there's still all Prices haven't collapsed this is a 2008. All the people that are out there saying Oh it's 2008 all over again I'm just Gonna wait until prices fall again Prices aren't going to collapse like They did in 2008 that was a different Circumstance that was a different Um Supply demand Dynamic right so we Were over building for a little while There way over building extending credit To people who had no business having Credit and but then that's you know what You just hit the nail on the head we Were over building in 2008 we stopped Building 2008 2009 2010 2011 2012 2013 When did they start building in your Area 2014 maybe 2015 I mean what is that Like eight years of not building yeah Yeah yeah and it's cut and that again Has come back to Dramatically impact the housing market Right it was we under built for forever We're still maybe not even building as Much as we need to build because now the The sentiment of Builders they're Getting nervous about higher rates so They're they're backing off Exactly if you look at all of these uh
Building Divisions they are offering to buy down Your rate they're offering their people Who are signing contracts are being Locked in they it says no matter what The rate is you can't cancel this Contract due to the rate Um or you can and you lose your earnest Money I mean there's always that option But Builders are pulling back on Building and yet we're still four Million housing units short so in the Spring just like last spring people were Signing contracts with Builders and Builders were saying oh okay now uh Supplies have gone up your contract is Now invalid It's going to cost me 30 000 more to Build this house if you'll pay me thirty Thousand dollars more I'll rewrite up The contract and you can still get in Otherwise I've got a line of people who Are waiting to pay 30 000 more for this House so what do you do Such an incredible Market but so really What we could see here then I guess Mindy is you could see The demand let's say for housing slow Less people buying less transactions but At the same time housing prices may stay Relatively stable maybe they fall a Little bit but even though we might have Less transactions and less people moving It doesn't mean you're gonna have to see
Huge price cuts when it comes to homes That are actually getting transacted I was speaking to another agent and she Said the way she phrases was so Interesting she said if you drew a line From January of 2021 to now It would be you know up and to the right But then you have this huge hump in the Spring of 2022 that kind of gets cut off By this we're still seeing this same Price trajectory we're just not seeing This giant hump from the spring sales so I think that that's pretty accurate Especially where I'm at right now I'm Not seeing prices falling back to January 2021 pricing
