EP 31 - Where is Housing Headed in this Changing Economy?

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The housing market is a complex system affected by various factors. If you don't understand these factors and their effects, you can't make informed choices and ensure financial security.

In this episode of Collecting Keys Podcast, we discuss the current housing market: its current state, predicting its future, and how to take advantage of it.

Here are some power takeaways from today’s conversation:

• The housing market is more than just inflation and appreciation
• High-end real estate may fluctuate in price but consumer-level real estate will always be in demand
• Invest in real estate in places with significant economic growth
• A recession won't affect housing, but it will spread the wealth gap further
• Find ways to elevate your income

Episode Highlights:

[00:57] Real Estate Prices

Real estate prices are rising; people often cite the real estate market in 2008 due to the hiking prices today, but there were more houses  on the market then compared to now.

There are few new constructions; there's land to build on, but it isn't developed. It all comes down to affordability since it dissipates so quickly.

[05:40] Factors in the Housing Market

Most people correlate interest rates with housing and mortgage. So they think that recession, inflation, etc., will cause problems in the housing market, but it doesn't guarantee that housing rates will tank.

Inventory and liquidity also affect housing markets. People are always looking to deploy their cash and find suitable investments, but the wealth gap is also a concern.

[13:45] Inflation and Economic Downturns

People who own assets tend to do better in inflationary periods. Goods cost the same, but assets rise in price. Inflation is higher than the government has quoted in recent years. House pricing will either remain stagnant or increase every recession.

[17:53] Why Get in on the Housing Market

Housing might experience minor, 5-10% price changes, but that only affects high-end real estate. Due to affordability, there will always be a massive demand for consumer-level real estate.

A recession is coming. It won't affect housing that much but will widen the wealth gap. The government will not address that gap, so find ways to generate income without relying on others.

Notable quotes from the Episode:

[13:53] “People who own assets tend to do better in inflationary periods.”

[21:59] “If you’re buying houses, you’re buying real estate in places that people are moving to, are growing economically, have a general demand within their market for people that are like moving there and not just investors, you’re probably not going to lose in those situations.”

[25:34] “Stop letting people strip value out of you for their own profits and go strip value out of something else for yourself.”

Resources Mentioned:

stlouisfed.org

collectingkeyspodcast.com

instantinvestorprogram.com

instagram.com/collectingkeyspodcast

instagram.com/mike_invests

instagram.com/investormandan