Lagniappe

The Screeching Halt of the Housing Market


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Back in the studio, the Stokes Brothers catch up after the Mardi Gras break. They examine why bad economic news is good news for the market and vice versa, and why the real estate market across the country has come to an abrupt halt.


Key Takeaways

  • [00:22] - Good news is bad news for the market and bad news is good news
  • [05:28] - Is now the right time to lock in long-term bonds?
  • [08:09] - A deep dive into the current real estate market
  • [16:38] - Tales from the slopes during Mardi Gras break

  • Quotes

    [01:25] - “Interest rates are moving around like crazy at this point, and that's just the market trying to figure out where this is ultimately going to land with the Federal Reserve. I'm still in the camp that we're going to see continued declines in inflation.” - Doug Stokes  

    [12:40] - “My sort of base case is that there's just not going to be a whole lot of activity in housing, and either we're going to have sort of a sideways market in housing until rents sort of catch up, or maybe we have a decline in interest rates, which decreases that affordability gap. But as it currently stands, there's just a massive gap between what you can afford in rent versus the comparable house to buy. So no houses are affordable at this point.” - Doug Stokes  


    Links

    • Truflation 
    • Scott Grannis - Calafia Beach Pundit
    • Goldman Sachs: 99% of borrowers have a mortgage rate lower than the current market rate
    • Nick Timiraos - U.S. home prices fell 5.4% at an annualized rate over the Jul-Dec period
    • Bill McBride - Weekly Active Inventory Up 67% YoY; New Listings Down 16% YoY
    • Cullen Roche - Has Housing Bottomed

    • Connect with our hosts

      • Doug Stokes
      • Greg Stokes
      • Stokes Family Office

      • Subscribe and stay in touch

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        • lagniappe.stokesfamilyoffice.com

        • Disclosure

          The information in this podcast is educational and general in nature and does not take into consideration the listener's personal circumstances. Therefore, it is not intended to be a substitute for specific, individualized financial, legal, or tax advice. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a final decision.

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