Kevin Ortner, CEO of Renters’ Warehouse, takes this episode to discuss macroeconomic trends. When paid attention to, these trends provide valuable insight into the market. Macroeconomic issues covered include statistics such as the unemployment rate, types of jobs available, and data on population growth and shrinkage.
Abhi and Kevin then discuss which tools a real estate investor can use to track these trends. One of these tools is the Case-Shiller Index, or as Kevin refers to it, “The Gold Standard.”
The Power Play:
Greg Rand and host, Abhi Golhar, get into the topic of affordability in today’s market. Greg rails against the idea that loan standards should be lowered. He believes this allows people to buy homes with “fake buying power.”
Instead, Greg believes the housing market will correct itself on its own. When no one buys the overpriced homes, sellers will be forced to lower the price. According to Greg, if loan standards were to be lowered again, it would be a “Groundhog Day of stupidity.”