Can the housing market keep going
Can the housing market keep going? That’s Shana Acquisto. We’re going to talk about that. We know we have demand and we have, but we don’t have supply. You know, we’re going to have to talk about interest rates. We’re going to talk about inflation.
We’re going to talk about all these different factors here. But can the mark is this sustainable? Like what in the world is going?
It is sustainable because it’s been sustainable for the last, how many years. So I think I mean, it is I think it is sustainable.
We’re things just way too far behind then, right? Is housing, should it really have been much more? Was it just lagging for so long that now we’re catching up and it has this real value and we weren’t putting enough value on what that is, right?
So, you know, if we dive in just a little bit, I think would be decent to start with. I think the big issue is the type of property that people want has changed. Sure. Right. And there’s different trends. So if we look just design wise and super hyper local, there was a trend from one color palette to another color palette that happened a while ago.
Right? And then what happened is you would look at the pictures of these homes and you would say this older home, right? Looks like this. And I don’t want that. I want this, OK? And that’s acceptable.
That’s like a personal preference or taste of what it is. So if you looked at just the supply of homes built in this time frame, OK, and homes built in this time frame, OK, yeah, you would see that it’s it would be like nearly impossible to have everybody transition to this new style.
Right. And at the time, there wasn’t enough premium put on this new style. Ok? Because they were valued at like the same. I mean, so they’re either should have been a lowering of the price of the old home that was the old color and the old palette, or a price appreciation or raising of this new palette above what was here.
Because to take the older home and modify it to get to this standard is extremely expensive.
It is. That’s why people are moving and then they move right? And then when they move, this one catches back up. But then all of a sudden people like, Well, wait a minute, if I had to fix this house, then this one goes to here and then this one went to here and then this one. So that’s kind of like locally what happened just based on taste and preference for color palettes, right?
Not even rooms switching. Then we have everything going on. And all of a sudden it’s like, Well, no, I actually want to function my home differently. I want more of a one story than a two story, and I want to have more people
Want to do story. So it went to two. And now it’s kind of going back where everybody would like to have a real chance to me during TNT.
You’re texting Shana on her phone while she’s on TNT? Hmm, interesting. We’re supposed to use the chat over here on the right or wrong chat. Yeah, wrong chat. Texting Shana directly. So, no, but you know, there’s definitely there’s a demand, but the demand is for this type of home. Yeah, right?
And so it’s totally different. So then we talk about not just then its features and functions in addition to color palette. And now you see that you have a whole other problem because all of a sudden people like, well, I want my home to be laid out like this and I want this room in this feature.
Certain things you can’t change. Yes, that you can’t change, right? Then it’s like, Well, all of these homes are no longer good because I want either more space. I want,
I want, I want. That’s the problem. Yeah, everybody wants. But you know, here’s the thing supply and demand, where are these people coming from? I know that we have people coming from other states within, but are there so many people moving from other countries that gets here that? I mean, what is it?
Yeah, I have no idea how. We just don’t know. It’s going to be a long time.
You know, and we’ve seen like, you know, not to get political, but we do see that you hear that politicians kind of skirt that. Like when you say, What do you think? How is this going to change?
What are you going to do to help with, you know, a reprieve here?
And they’re all like, Oh, nobody wants to talk about it because I think they don’t know and they don’t want to. It’s just I don’t think it’s going to. I think interest rates will affect it, right? That’s always going to affect it. But what are they going to really go to?
You know, we were talking earlier this week about when my parents had had their home and was paying 18 percent. Interest right on on their home, I mean, so, you know, the home prices are higher.
Yes, but I don’t know the interest rates are still relatively low. What are they going to go to back to five and six, even five and six percent? It was a crazy market, right?
So yeah, so stock market crash aside or major catastrophe? It seems like the market keeps going as long as inflation. But then what happens? Don’t even get to work.
Yeah, you know, even if after we have inflation, what happens is the house is worth more now. So the people that own the homes do better. So there’s more of an urge to get into homeownership.
Yeah, with that type of thing. So you’d be like, Whoa, I’m crazy to be missing out on this because if I’m a renter, I’m losing all of this opportunity.
I don’t know how I feel about it either, because you know, the job market, you know, you talk about that incomes have kind of gone up. So it is the housing prices, are they, you know, comparable? Are they in balance?
I think everybody needs a Tesla robot. So go, look, that one up. It’s something that’s allegedly coming out next year. I think it might take them a little bit longer.
Is it an assistant? Yeah, basically, it’s like a walking assistant that has all the sensors from Tesla built in. I would love that. So you can be more efficient. And with doing that, maybe we can find some that can build homes and to keep up with this demand. And I have no idea.
But can it keep going? I think it can. I think we’re going to see it continue. I think it’ll kind of slow down and balance out, but it’s going to take some time.
It really is because there’s a lot of demand. Sure, big issues aside, we’ve got a long runway.