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Philip A. Raices, 1 of the Most Knowledgeable Brokers on the Net! (Turn Key Real Estate)

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John Meussner
Mortgages in AZ, CA, CO, DE, FL, GA, IN, MD, MN, MT, NC, NJ, NV, OK, OR, PA, SC, SD, TN, TX, UT, VA, WI - Fair Oaks, CA
#MortgageMadeEasy Fair Oaks, CA 484-680-4852

Inventory isn't going to be "back to normal" for a long time to come.  

Zoning and permitting costs are enormous in many areas that need more homes, and builders are careful about not going too far into the spec space like they did in 2006.

Household formations are expected to exceed 2M for the foreseeable future while inventory and permitting are showing north of 1M new homes 

Reduced rates will bring more buyers to market, but the question then becomes how many will have the funds/means to afford the still-high payments and the additional costs should bidding wars become the norm once again.

Dec 11, 2023 02:17 PM
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Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Mirror Mirror on the Wall 

Where the Hell is my crystal Ball? 

Inventory remains low in Silicon Valley. 

Buyers are still buying - homes are selling. 

As for the debt crisis, I am not an economist, yet my sense is that it will impact many things. 

Dec 11, 2023 03:58 PM
Rainmaker
1,340,244
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

Our inventory is still very low. That has been the case for a long time. Rate increases have not driven a large increase in listings. Rates have come down some as I write this. They may come done some more but those who are thinking the will drop to the range below 4% are mistaken. I do not expect to see rates as low a 5% and not in the near future. Lower rates may stimulate more buyers who will then have to compete for the available homes for sale. Results...multiple offers and more price increases in a market that is already challenging due to affordability in th San Francisco Bay Area.

When will we see a more "normal" inventory level? I am not sure that I can tell you what a "normal" inventory level is these days or will be in the future.

Dec 11, 2023 02:42 PM
Rainmaker
1,063,651
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

IDK . . . Fannie Mae says a very small adjustment if any . . . SBA is in the stratosphere . . . and most of our buyers are cash (I do mainly commercial/industrial) . . .
We have very low inventory BUT I am seeing as of today (residential) 75 new, 21 back on market so deals are not closing! And 54 price drop.
Residential market is correcting here . . . that may bring some buyers in if sellers start to reduce prices 'enough' to offset the higher interest rates . . . 

Dec 11, 2023 03:16 PM
Rainmaker
1,562,617
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
CEO of Vision Drive Realty - Coastal San Diego

Rate WILL lower in 2024 and 2025.
But, no, inventory is never returning to "normal" in those same 2 years. I'm standing by "never". Which is why by Spring 2025, the market will be INSANE again!

Dec 11, 2023 05:48 PM
Rainer
384,742
Don Baker
Lane Realty - Eatonton, GA
Lake Sinclair Specialist

We still have buyers and low inventory, so not really.

Dec 11, 2023 02:39 PM
Rainmaker
904,383
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Lower rates may or may not come back too soon. If they did, it would first shake out the sellers in that they would be more inclined to sell if they could afford to buy, so there would be more activity all around. 

Dec 11, 2023 02:31 PM
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Alan May
Jameson Sotheby's International Realty - Evanston, IL
Cicadas are coming! Cicadas are coming!

Interest rates (high or low) have not been the driving force behind the market over the last several years, and that includes the latest rises in rates.

The market in our area is still moving quickly... inventory is low, and we are still experiencing multiple offers and bids over list price.  So we're not waiting for them to come back.  They've never left.

Dec 11, 2023 01:58 PM
Rainmaker
1,219,559
Peter Mohylsky, Destin BeachPro
PMI. Destin - Miramar Beach, FL
Call me at 850-517-7098

This is the new normal and buyers and sellers are still in need of housing. 

Dec 12, 2023 03:59 AM
Rainmaker
135,450
Philip A. Raices
Turn Key Real Estate - Great Neck, NY
1 of the Most Knowledgeable Brokers on the Net!

So far, I thank you all for your responses and await more.  I forgot to mention that does anyone think that our debt crisis will have an impact on our sales either.

Dec 11, 2023 02:56 PM
Rainmaker
7,905,388
Roy Kelley
Retired - Gaithersburg, MD

No. We have a severe shortage of affordable homes in our area.

Dec 11, 2023 02:44 PM
Rainmaker
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Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

It may take years, (if at all), for interest rates to come down. As far as the little pockets of Real Estate all over the U.S., there will always be local activities

Dec 12, 2023 06:08 AM
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Brian England
Ambrose Realty Management LLC - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

Everything has seemed normal to me, it's just all of the talk that makes things seem not normal, haha.  Of course, if interest rates continue to decrease it's going to allow more people to purchase homes and I am sure that they will.

Dec 12, 2023 04:44 AM
Rainmaker
5,276,017
Wayne Martin
Wayne M Martin - Oswego, IL
Real Estate Broker - Retired

The downtown Chicago condo market will likely still see activity at the higher end regardless of rates and politics. As for the rest of the market who knows? 

Dec 12, 2023 03:30 AM
Rainmaker
4,203,358
John Pusa
Glendale, CA

Hello Philip A. Raices  reduced rates can bring purchasers back into market.

Dec 11, 2023 02:36 PM
Rainmaker
5,135,998
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

We've been short on inventory in the Charlotte area for at least 5-6 years. I don't see a big increase any time soon. Serious buyers remain in the market. If rates go down, there will be more competition for still a small number of homes driving prices further up... net, net the buyer has achieved nothing.

Dec 12, 2023 07:49 AM
Rainmaker
913,116
Carla Freund
Keller Williams Preferred Realty - Raleigh, NC
NC Real Estate Transition & Relocation 919-602-848

Well, we're going to be low on inventory for a while. There are a lot of companies moving their headquarters here. Apple will finally start building their East Coast headquarters here in 2026

Dec 12, 2023 06:27 AM
Rainer
434,332
J.R. Schloemer
Kentucky Select Properties - Louisville, KY

As long as these national rental companies are hoarding all of the "affordable" housing options, I do not believe buyers will have any more or less luck than they have been facing. Due to these companies holding and sitting on properties, we will experience this for quite some time. It only helps the property owners that are looking to sell, as their values are going to be higher since there is less churn in the market. 

Dec 12, 2023 06:20 AM
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Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

People are struggling, over spending and running up credit card debt.  I feel it will be a long time coming before the market is great again.  But we still have some cash buyers in the market.

Dec 12, 2023 06:17 AM
Rainmaker
856,495
Gwen Fowler SC Lakes & Mountains 864-710-4518
Gwen Fowler Real Estate, Inc - Walhalla, SC
Gwen Fowler Real Estate, Inc.

I think the interest rate is here to stay for at least ten years.  I think we will see some relief on the housing shortage if the bill passes through Washington that makes hedge funds sell their single-family rentals.  I also think the builders need to look at what the market needs, little houses were good for the short term but I see blended families that want a yard and more square footage for a reasonable price.

Dec 12, 2023 05:15 AM
Rainmaker
917,258
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

Interest rate drop won't make too much difference. Inventory isn't as bad as some try to make you think. There are numerous new construction homes in progress around here, and none of them are listed in the mls. I also know several builders sitting on lots and just doing custom builds for buyers. Others are in the progress of assembling lots with plan to change type of subdivisions that will allow for more homes.

Dec 12, 2023 05:11 AM
Rainmaker
856,332
Brenda Mayette
Miranda Real Estate Group, Inc. - Glenville, NY
Getting results w/ knowledge & know-how!

Many will come back and there will be another (continued) wave of market craziness. 

Dec 12, 2023 05:05 AM
Rainmaker
2,252,557
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

The interest rates are not the deciding factor when your buyer is cash. Look Mom, no bank. Inventory being low and scooped up as soon as it hits the MLS conveyor belt continues.

Dec 11, 2023 02:49 PM
Rainmaker
1,208,623
Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

In my opinion, it is not the rates solely. We have a serious lack of inventory and one of the reasons for that is prices. Wages have not kept up with price increases.  If I was looking to buy I wait and wait for the market to hit its normal down cycle and be ready to pounce. 

Dec 12, 2023 10:33 AM
Rainmaker
1,510,603
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

I second what John Juarez said.  Lower rates = more competition = higher sales prices.

Dec 12, 2023 10:16 AM
Rainmaker
2,412,492
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

I am retired Philip A. Raices so I no longer have my fingers on the pulse of our Real Estate market BUT our market has remained very stable for decades with a slight bit of madness during our oil boom as well as when a flood destroyed a forth of our homes. I don't think a slight dip in interest rates (if it were to happen) would change our market what so ever.

Dec 12, 2023 06:40 AM
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Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

I dont think that it makes that much difference.

Dec 11, 2023 05:05 PM
Rainmaker
769,389
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Group Valencia & Aliso Viejo

I don't think lowering the interest rate will get many more people qualified to purchase a home but it will give those that are qualified the confidence to buy one.  The belief in a better future is that motivating factor that iginites action.

Dec 13, 2023 01:53 PM
Rainmaker
680,265
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

We have been experiencing low inventory for 4+ years now and the rates are not stopping the buyers from purchasing.  The low inventory is still causing buyers to overpay and we are still seeing multiple offers competing ... the lowering of the rates will not likely change anything much.  Sellers are still not willing to sell and then buy at the higher rates.

Dec 12, 2023 03:09 PM
Rainmaker
652,176
Greg Large
ERA Real Solutions - Grove City, OH
A Tradition of Trust

When interest rates are reduced it will not allow the "majority of purchasers" to buy, inventory is going to remain a factor for some time to come. those who are serious will find a way, those who are not will find an excuse.

Dec 12, 2023 12:05 PM
Rainmaker
2,205,037
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Happy Days are here again 

Dec 15, 2023 07:46 AM