Market Update Oct 30, 2023 - Is Now a good time to buy? Accessory Dwelling Units and Getting More Deals

The Texas Real Estate & Finance Podcast with Mike Mills

Welcome to another informative episode of the Texas Real Estate and Finance Podcast, where our knowledgeable host, Mike Mills, shares his expertise as a seasoned mortgage banker with over 13 years of experience. In this episode, Mike delves into the current state of the real estate market, providing valuable insights backed by data.

Mike begins by highlighting why now is the opportune time to venture into the real estate market. With his extensive knowledge, Mike offers listeners a compelling case for taking advantage of the current market conditions.

Moreover, Mike introduces an innovative solution for addressing the issue of affordable housing in Texas. He sheds light on the concept of accessory dwelling units (ADUs) and their potential benefits. Not only can ADUs help individuals qualify for a mortgage, but they can also generate additional rental income. Mike explores the various ways in which ADUs can be utilized to maximize financial opportunities in the real estate market.

In addition to discussing market trends and innovative housing solutions, Mike emphasizes the importance of building a robust database for real estate professionals. He highlights how having a comprehensive and up-to-date database can significantly contribute to success in the industry. Mike shares practical tips and strategies for creating and maintaining an effective database, enabling real estate professionals to stay ahead of the competition.

Tune in to this episode of the Texas Real Estate and Finance Podcast to gain valuable insights into the current state of the real estate market, discover innovative housing solutions, and learn how to build a powerful database for success in the industry. Whether you're a seasoned professional or a newcomer to the real estate market, this episode offers a wealth of information to help you thrive in this dynamic industry.

The housing crisis and the Great Recession (00:03:33) Explains the housing crisis of 2008 and the risky loans given by banks, bundled with good ones and sold to investors.

The indicators that the economy isn't as strong as it appears (00:05:18) Discusses how consumer spending and increased inventories contribute to the GDP growth, but may not reflect the true strength of the economy.

Exports and their impact on GDP (00:06:11) Mentions that exports, potentially including weapons, have contributed to the increase in GDP.

Government Spending and National Debt (00:07:07) Discussion on the increase in government spending and the national debt, potential motives behind the spending, and the impact on the economy.

September Jobs Report and Economic Confidence (00:08:00) Highlights of the September jobs report, including job growth and wage increases, as well as the confidence expressed by Janet Yellen and President Biden in the economy.

Fed's Rate Hike Cycle and Economic Outlook (00:12:44) Insights into the Federal Reserve's rate hike cycle, predictions for a recession, and the current stance on interest rates, indicating a high-interest rate environment for the foreseeable future.

The best time to buy a house (00:14:26) Explains why now is the best time to buy a house, despite the data suggesting otherwise.

Housing affordability and inventory (00:15:23) Discusses the decrease in existing home sales, affordability issues, and the impact of cash buyers on the market.

Impact of supply limitations on housing prices (00:19:15) Explains how supply limitations, including fewer new builds and foreclosures, will keep housing prices high in the foreseeable future.

The adus and rental income for mortgage qualification (00:21:31) Explains how having an accessory dwelling unit (adu) on a property and establishing a rental agreement can help qualify for a mortgage.

Regulations and challenges of using rental income from adus (00:22:27) Discusses the challenges of using rental income from adus, including the need for a comparable rent schedule and the difficulty in establishing income.

The importance of managing and utilizing a real estate database (00:24:00) Emphasizes the importance of maintaining and utilizing a real estate database for generating transactions, including tips on managing the database effectively.

Building a Robust Review Database (00:28:08) The speaker discusses the importance of asking for reviews and building a robust review database to improve online visibility and ranking.

Consistently Growing Your Database (00:29:01) The speaker emphasizes the need for consistency and diligence in growing one's database, suggesting allocating a portion of each day to add or update contacts.

Collecting Data and Using QR Codes (00:29:58) The speaker advises collecting data from various events, such as open houses, and using QR codes to gather contact information. They also suggest using QR codes to collect additional data like birthdays and anniversaries.