Mark Zandi, Moody’s Analytics chief economist, joins “The Exchange” to discuss how rising rates will hit the real estate market. For access to live and exclusive video from CNBC subscribe to CNBC PRO:
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The housing market has been a hot topic in recent years, with many experts predicting both steady growth and potential declines. However, according to Moody’s economist Mark Zandi, the housing market was already dropping into recession before the COVID-19 pandemic hit.
Zandi argues that despite record-low unemployment rates and consistent economic growth in the years leading up to 2020, the housing market was already showing signs of a downturn. He points to several indicators, including a shift towards renting instead of buying, slow home price growth, and decreasing demand in certain regions.
One major factor contributing to the housing market’s decline was the lack of affordable homes for sale. Zandi notes that while wages and job opportunities had improved for many Americans, the cost of homeownership remained high in many areas. This meant that many potential buyers were simply priced out of the market, leading to decreased sales and a slowdown in new construction.
Furthermore, Zandi points out that the housing market was beginning to show signs of oversupply in certain regions. In areas where there was an influx of new construction, such as the Southwest and Southeast, the market was becoming saturated and there were fewer buyers willing to purchase new homes.
While the COVID-19 pandemic has certainly exacerbated these issues, Zandi argues that the housing market was already on a downward trend in the years leading up to 2020. He warns that the pandemic has only accelerated these trends and could lead to even more significant declines in the future.
Zandi’s findings highlight the importance of keeping a close eye on the housing market and understanding the factors that contribute to its health. While many individuals and businesses were caught off guard by the pandemic’s impact on the housing market, economists like Zandi offer valuable insights to help predict and prepare for future challenges.
From my perspective, this highlights the importance of having a competitive advantage as investors. Merely mirroring the market strategies of others is insufficient in achieving optimal results. I am currently grappling with the decision to invest in the current market, as it presents both uncertainty and opportunity. Could you share your insights on this matter?
I listen to Mark Zandi because he seems to be a straight shooter rather than the usual Wall Street used car salesman.
Everyone blaming the government for the housing crisis. No blame every Small investor buying up all of the property. Everyone on social media is talking about buying properties and becoming a landlord.
You can't just "pivot" back into dealing with inflation. Who the hell cares that some builders can't get loans or banks fail. Inflation affects everyone and that should be the focus.
The housing market in Canada is actually insane, the prices are going UP NOW!! Everywhere u look there is multiple buyers looking and lots of offers.
The most important thing that should be on everyone's mind currently should be to invest in different sources of income that doesn't depend on the government. Especially with the current economic crisis around the word. This is still a good time to invest in various stocks, Gold, silver and digital currencies.
A longtime to play out? There won't be an encore, the matching band is on their tour bus on their way to the next concert. What are you waiting for? Go home.
Great video! For 2023, it’s hard to nail down specific predictions for the housing market because it’s not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars.
This market is crazy! I've been in real estate almost 20 years and I have never seen anything like it. Your average can not afford a home in this market and it's sad. I pray daily this market balance out for the better.
I started my own business this month and I am meeting with my first client today. I’ve been I have been listening to Jim Rohn for awhile now, but this video is so on time for me! I am definitely going to implement the 70, 10, 10,10 with my very first transaction. I am grateful to you Mr. Rohn, you definitely left your mark on this world! Thanks to you I have a plan and I feel more confident in the area of money.
cannot fully trust Moody's analysis.
I think a housing crash will happen because all those people who bought homes over asking price, although it was at a low interest rate, they are over their heads. They have no equity if the housing prices continue to go down, and if for whatever reason they cannot afford the house anymore and it goes into foreclosure because even if they try to sell, they will not make any money. I think this will happen to a lot of people especially with the massive layoff predicted for the future and the cost of living rising at a high speed.
Jokes on them this time. No working people can afford homes this around. We're broke and in debt today. Nothing will change with a recession as we'll still be broke and in debt tomorrow.
who care about interest rate if you just pay cash
The stock market has been a really tough one this past year, but I watched an interview on CNBC where the anchor kept mentioning "KATRINA VANRENSUM ". This prompted me to get in touch with her, and from August 2022 till now we have been working together, and I can now boast of $540,000 in my trading portfolio.
I CAN NOT AFFORD ANYTHING! I AM SCREWING
Interest rates should be 20%
Why isn’t anyone talking about how we are running right into Hooverville again?
Forever grateful and thankful to you, you've changed my whole life, I'll continue to preach about your name for the world to hear how you've saved me from a huge financial debt with just little investment, thanks so much Mrs.Susann Elizabeth.
Many investors and economists are concerned about the global economy due to rising debt, political instability, and the effect of COVID-19 pandemic. Experts warn that these factors could lead to an economic downturn or recession.
What recession? Prices are still sky high compared to 2021
Nothings going to happen home prices are still ridiculous interest rate, or at all time high and Homes are still skyrocketing. Welcome to the new Covid lifestyle.
>I Will advice traders especially newbies to have orientation of trading before they get involved in it because the Crypto market has been unstable, forget predictions and start making a good profit now because future valuations are all speculations and guesses. when news gets bearish start buying. "Keep it simple" That correction was the best thing that happened me. but all thanks to Mr K <for his amazing skills for help me to earn 11 BTC through trading chart..
<<<The rich stay rich by spending like the poor and investing without hesitating then the poor stay poor by spending like the rich yet not investing like the rich
Home prices are not low enough to be affordable for the majority of people.
Someone needs to explain this to the idiots moving to Florida. He'll they're buying DUMPS for $400,000.