In today’s episode of RealTrending, Logan Mohtashami, lead analyst for HousingWire talks all things economy. He offers his insights on the potential fall of the U.S. dollar and the potential impact on housing.
Logan also discusses HousingWire’s weekly Housing Market Tracker, interest rates, inventory, and the Fed’s questionable actions and what he sees coming in the next three months. His economic update as it relates to housing is second to none and Logan’s been featured on CNBC and NPR.
Here is a small preview of today’s interview with Russ. The transcript below has been lightly edited for length and clarity:
Tracey Velt: I hear a lot of different things. One of them is that a lot of homeowners have really low rates and don’t want to leave because of that. But, people have to move for a variety of different reasons. So talk to me about what’s keeping inventory low.
Logan Mohtashami: The confusion has always been that in the year 2000, we had 2 million active listings. In the year 2005, we had 2.5 million. So, during the housing bubble years, inventory was growing. People just naturally think if rates go lower, more inventory will come. That was because of the credit boom; people didn’t have to worry about rates, everybody could list their homes, and they can purchase another house easily. After 2010, everything changed in housing.
Rates were between 5% to 3.25% in the previous expansion. When mortgage rates fell, it didn’t create more inventory. It didn’t do anything. Inventory went down a little bit during COVID-19 when rates fell, but it didn’t create more inventory. Rates went down demand picked up. And, when people live in their homes longer and longer, the turnover in housing is much different.
The RealTrending podcast features the brightest minds in real estate. Every week, brokerage leaders, top agents, team leaders, and industry experts share their success secrets, trends, and lessons learned navigating this ever-changing industry. Hosted by Tracey Velt and produced by Elissa Branch.
