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Housing Market Predictions for 2022 (HA 1624)
Transcript:
Steven Jack Butala:Steve and Jill here.
Jill DeWit:Hi.
Steven Jack Butala:Welcome to the Land Academy Show. Really the House Academy Show today. Entertaining real estate investment talk. I'm Steven Jack Butala.
Jill DeWit:And I'm Jill DeWit. And, we are broadcasting from the valley of the sun.
Steven Jack Butala:Today, Jill and I are talking about housing predictions for 2022.
Jill DeWit:I like to say I was asking this question too, to you earlier. I'm like, "I know you read up on all this stuff. You're really current on all this stuff. What the heck is everybody saying?" I'm personally dying to know. I have my thoughts, but I want to know what your thoughts are and what the general opinion is.
Steven Jack Butala:So, it's the fourth quarter, it's October 2021. It's a fourth quarter where everyone who's got any type of involvement in any market, whether it's a stock market or commodities or anything else or weather or anything, makes predictions for next year. And housing is no different. So, Core Logic piped in Fannie Mae, of course, which is the mortgage insurance backed federal government scenario, which allows a lot of mortgages to happen. So, they all have predictions and I'll talk about them in a minute here.
Jill DeWit:Cool.
Steven Jack Butala:Before we get into it, Hey, by the way, it's all good. In my opinion, it's not hockey stick straight up. It's good. Slow growth.
Jill DeWit:Spoiler alert.
Steven Jack Butala:Before we get into it, let's take a question posted by one of our members on the landinvestors.com online community it's free. And don't forget to subscribe on the YouTube Land Academy channel and comment on the shows you like.
Jill DeWit:Jason wrote, you guys talk all about houses a lot lately. If we buy and sell land, what is the point of this? I've renovated houses in a past life with success, but decide it's not worth it in the end.
Steven Jack Butala:Amen to that.
Jill DeWit:Yeah.
Steven Jack Butala:So you're in the same boat as almost all of us, probably it's a logical conclusion to look at the things that I think suck. We talked about this a couple days ago.
Jill DeWit:Like Monday.
Steven Jack Butala:Yeah. What sucks about renovating houses is that... Pick window treatments. I always come back to that. If I hear the word window treatment, I'm not going to get involved in it financially. And so, I'm sorry that you had to go through that welcome to the land investment business.
Jill DeWit:I'm sorry. you had to go through this. Okay.
Steven Jack Butala:The housing market is very closely tied to the land market for a few reasons. The biggest reason is that when house values go up, people have extra money. When housing values go up and I'm going to get all kinds of comments on this wages generally go up. Compensation or equity generally goes up. Wages in themselves are so untied. So tragically disassociated with house values. It's staggering.
Jill DeWit:It's weird.
Steven Jack Butala:But in general, from an economic standpoint, not an accounting or reality standpoint, economic, that's not reality. That's just economics equity values go up when housing values go up. Which means there's more access to more disposable income on a macro level, which means people have access to more money so they can buy and sell land. Number one, this is a good question.
Jill DeWit:I like the pen on your finger. I'm like, I could just see... you know what's going to happen. Our post production guys are going to poke arrows that what's with the pen?
Steven Jack Butala:They will now for sure.
Jill DeWit:Yeah, they will because I just said it.
Steven Jack Butala:Number two when housing, it was funny for a while. Jill.
Jill DeWit:Okay.
Steven Jack Butala:When housing goes up like this, there's a need for more housing, people sell their house, they got to move somewhere else. So land, it gets utilized for new housing and we're in a re...