You MUST KNOW THIS BEFORE BUYING A HOUSE…

Summary

This video explores current trends in the real estate and rental markets. It highlights the decline in home sales, particularly in higher-priced markets, and the impact of rising interest rates on buyers. Rent prices are still increasing in some areas, while others, like Tampa and Austin, have seen declines. The rental market is benefiting from new construction, and renters can now get more space for less money. Additionally, the real estate agent industry remains strong despite changes in commissions, though membership may drop as economic challenges increase. The video emphasizes the dynamic and evolving nature of both rental and real estate markets.

Takeaways

• 😀 Rent prices in places like Tampa and Austin are significantly down year-over-year, with Tampa seeing an 82% drop and Austin 8.2%.
• 😀 Jacksonville, Florida, remains the most affordable major city in Florida for renters, with only an 8.4% year-over-year rent decrease.
• 😀 Rent prices have been rising in many areas like Virginia Beach (up 11.7%), Cleveland, and Washington D.C., reflecting increased demand.
• 😀 Rent prices per square foot have been falling for 18 consecutive months, making it a good time to be a renter with more space for the same price.
• 😀 A large amount of new rental construction (1.2 million new units) has led to an increase in supply, helping to stabilize rent prices in some areas.
• 😀 Despite a slowdown in construction expected in the future, renters are still benefiting from the current market dynamics and increasing supply.
• 😀 Real estate inventory is rising, and more agents are staying active, with membership in the National Association of Realtors reaching 1.5 million.
• 😀 Pending real estate contracts saw a 7.4% increase in September due to a temporary drop in interest rates, which were around 6% for a period.
• 😀 The National Association of Realtors predicts an 8% decline in real estate agent membership by 2025, reflecting potential struggles in the industry.
• 😀 Many real estate agents remain in the industry without actively selling, as paying membership dues can be seen as a low-cost way to maintain their status, especially in a part-time or gig economy.
• 😀 The current housing market favors renters due to lower rent per square foot, while the home buying market remains stagnant due to high prices and interest rates.

Q & A

Which U.S. cities are experiencing the most significant rent declines?

Cities like Tampa, Austin, and San Diego are experiencing substantial rent declines, with Tampa seeing a decrease of 82%, Austin down by 8.2%, and San Diego down by 65% year-over-year.

Why is Jacksonville considered the best rental market in Florida right now?

Jacksonville stands out due to its smaller decline in rents (down 8.4% year-over-year) compared to other Florida cities like Orlando and Tampa, making it the best value for renters in the state.

What is the main reason for the ongoing increase in rent prices in certain U.S. regions?

The main reason for rent increases, especially in regions like Virginia Beach and Washington D.C., is the **lack of new construction** in these areas, creating supply shortages and driving prices up.

How much did rent prices increase in Virginia Beach in the past year?

Rent prices in Virginia Beach saw a significant increase of 11.7% year-over-year, reaching an average of $1,650 per month.

What are the trends regarding rent per square foot in the U.S. housing market?

Rent prices per square foot have been falling for the past 18 months, which is a positive trend for renters, allowing them to get more space for their money compared to a couple of years ago when rents were higher.

How many new rental units were built in the past couple of years, and what does this mean for renters?

Around 1.2 million new rental units were constructed, with half a million still under construction. This increase in supply is helping stabilize rent prices, offering renters better value and more options.

What is the potential future impact of the current supply of rental units on rent prices?

While the current oversupply of rental units is benefiting renters with lower prices, there is a possibility that new construction will slow down in the future, leading to a potential rental shortage and rising rents again.

How has the number of real estate agents in the National Association of Realtors (NAR) changed recently?

The number of NAR members is close to its all-time highs, with around 1.5 million members as of October 2024. Despite commission changes in the industry, many agents are remaining in the field.

What is contributing to the rising number of real estate agents in the market?

The rising number of agents is due to the increasing inventory of homes for sale, providing agents with more opportunities to list properties and close deals, despite the tough market conditions.

What prediction does the National Association of Realtors (NAR) make for the future of real estate agent membership?

The NAR predicts an 8% decline in membership by 2025, with the number of agents decreasing from 1.5 million to 1.4 million, as some part-time agents may no longer afford the annual dues.

What factors might lead to a further decline in the number of real estate agents?

A decline in the number of real estate agents may occur if economic conditions worsen and part-time agents, or those with financial pressures, can no longer afford the annual dues required to remain members of the NAR.