In this video, I’m going to show you how to find real estate inventory and what you need to know when it comes to inventory.
I’ll give you the step by step process on how to use the latest market trends to identify what type of inventory is best for your investment goals.
Transcripts:
Chris Bounds 00:00
I’ve heard a couple of different contrarian views on the low inventory. I haven’t dug deep into the data because it wasn’t readily available. But essentially what they’re saying is, we don’t have shortage of inventory. What we do is have consolidation of inventory that investors own. Meaning, single family, which investors have been buying that up, in larger percentages over the last five years.
But then you got the multifamily side too, which the development of multifamily has really been driving the development of all residential, it’s mainly been multifamily because we haven’t been keeping up on the single family side. Their argument is, we actually have ample inventory. It just, it’s all tied up. It’s not on the market. I don’t know if you have any data, or have you seen anything that kind of validates that or any commentary on that.
Blake 00:56
When you say all tied up, you mean?
Chris Bounds 00:59
It’s off market, like they’re not selling right now. Like Melissa, before COVID, there was still a shortage where something in Houston, it was around three or slightly below three months of inventory, which is still below the six months. COVID happened, it dropped below one month and it’s been inching its way back up. But still below Pre-COVID levels.
Blake 01:20
If the market starts slowing down, people might be more apt to selling. Right? Right now they’re seeing the appreciation and everything going up and you don’t want to miss the boat. Right? I don’t know. If they’re planning of everything, then there will be plenty of stuff for other people to buy, I guess is a thing. I as y’all touched on the below median price range houses. Heck, the median price range has gone up. I don’t know exactly, but it seems like it’s gone above 100,000 In the last couple years.
Chris Bounds 01:53
Yeah, it’s over 350 now, right?
Blake 01:58
This didn’t seem that long ago as to 60 or so. I mean, from investment, I don’t think that you can get hurt. I will slow down between every, after every inflationary period, there’s a recessionary period, and we’ve gone, we’ve dumped so much money into the economy for so long to keep it float the bull market, if you will, or prosperity or whatever, call it for longer than we normally have. You know, they’ve been pushing it through, you got the blip for COVID.
But they have to, something if some, we have an adult in the office, whichever party is in there, we have to put the brakes on inflation. And to me, nationally, it’s not going to feel good. But we’re in Texas, so I kind of like you know, I kind of go both sides, right? I have the little angel. So now we have the population we’re still affordable place to live, together. The other side of the coin, I’m like, well, we brought up a lot faster than we did in ’08, ’09. Maybe if all we might have more to fault than we did back then. I’m kind of conflicted and I think now’s the time if you’re going to sell anything sell the stuff you don’t want. Sorry.
Chris Bounds 03:21
Yeah. I mean, if you don’t have to move, if it is a secondary house. Go ahead and cash in your Okay, cashing in. Now, if you’re worried about what you’re going to do with the money, then maybe you hold on to it. Presuming you don’t need it. That’s what I’ve been telling people ask HSL now I’m like, what? Do you need the money? No. Well then do you have some place you’re gonna put the money afterwards? No, don’t sell, like if you need the money. Sure. Cash in if you have another place to put the money in other investment opportunity or whatever, another house.
Blake 03:56
Take the money to a cash out right and you don’t have the-
Chris Bounds 03:59
Hundred percent. Yeah, man, that’s tax free.
Blake 04:03 Right. So you know, there’s that and you still have the asset.