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Ep. 115 - Is the Housing Market Becoming Predictable? This Expert Says it Will be; Are We Going into a Chill Recession?? Deep Dive into the CBRE's Outlook; What Fundamentals Make a Strong Investment??
In this episode of "Kiss My Assets" Jamison and Heather discuss various predictions and insights related to the housing market in the upcoming year. They express excitement about Jamison being quoted as an expert by Forbes and highlight the different perspectives of industry professionals. One expert, Daniel Hale, describes the current housing market as a "nobody's market," where there are advantages for both buyers and sellers. The hosts emphasize the importance of understanding that real estate is always localized, with different factors influencing each specific area.
The conversation also touches on the housing affordability crisis and potential solutions. Robert Pinnegar, the President and CEO of the National Apartment Association suggests that rent controls implemented in certain states like Oregon and California have not been effective in solving the crisis. Instead, he believes that increasing the supply of housing through new construction is a more economically logical solution. Our team discusses the impact of wages and job availability on the housing market, emphasizing that good wages can contribute to increased affordability.
Furthermore, they dive into the effects of remote work on cities and the office space market. They note that while some companies are transitioning to hybrid work models, with employees working from home a few days a week, there will still be an oversupply of office spaces in metropolitan areas. They discuss the potential conversion of these office buildings into residential spaces, aligning with the growing trend of people wanting to live near their workplaces. However, they also caution that such conversions can be complex and costly, requiring significant capital investment and adherence to zoning regulations.
Overall, the hosts predict a more predictable year in the housing market, with the Federal Reserve expected to keep interest rates relatively steady. They anticipate a softened market with slightly lower prices, providing opportunities for buyers. They also mention the upcoming influx of new multifamily units, which may temporarily alleviate housing shortages. However, they caution that long-term planning and careful consideration are necessary for successful conversions of office spaces into residential properties.