TUESDAY REAL ESTATE UPDATE #TREU
Robert Shiller with CNBC
This is what Robert Shiller said on CNBC interview: https://youtu.be/bZyaKPlWvbc
“Maybe if you have a chance to delay your purchase, it might be a good time to do it. You might get it a little cheaper in another six months.”
“I think it works pretty well most of the time and I wouldn’t tinker too much with it. We have smart people on the Fed and the Treasury Secretary I admire, Janet Yellen. They may have to accept something of a recession.”
Shiller acknowledged there are other factors besides economic conditions that determine “the right time” for any buyer or seller to act, depending on their situation.
“Home purchase is such a family decision, I’d hate to overreact,” Shiller added.
“We do have a declining market at the moment, but there are costs to not selling at the right time, the convenient time, or you might lose a house that you liked to somebody else. I don’t think it’s an easy answer to that question.”
What realtor sees in the current market
- Micro markets are still seeing multiple offers on entry level homes.
- Good deals are in any market, just need to do the work. Always be ready and keep looking for a right deal.
- Robert Schiller says in a very safe manner. Because he doesn’t really know what will happen.
- More expensive to buy, but cheap 3% mortgage bus is gone and we need to adjust to new norm to be in the market.
- White board talk:
- Assuming 19% decline, how do you time it to get the best deal? Simple answer is, you just can’t time the market.
- Light weight MMA fighter (Fed funds rate and mortgage rate) choking on heavy weight fighter (real estate market)
- Talk to a few realtors in your area to know what’s going on in your market.
- 2008 vs 2023
- Bank issues
- Job loss 2.6m in 2008 vs. job increases in Jan 2023
- Subprime lending vs Tight lending environment
- High inventory. Vs Historic low inventory
- 6% mortgage rate vs. 6.25% today
- Inflation 3.8% vs 6%
- War in 2008 vs War now
- Swine flu vs Covid
Don’t pay attention to headlines, talk to local experts, read between the lines, stay in the market and you can always find a good deal in any market!