 In this video, I want to talk about how the housing market could be turning around. Yes, that's right. In the midst of all this, we could be seeing a turnaround. And where am I seeing this? I'm seeing this in some data that I want to share with you today concerning the US builders. So we're going to dive into that and several other things as well as my commentary in the market. So let's just dive right in here. There was an article here by Fortune, the housing market correction just took a new turn. So that's an exciting headline. Let's click and see what it says, Bobby. So brutal. That's the best way to describe KB, Homes, Fourth Quarter, which saw its buyer cancellation rate spike to 68%. That figure dwarfed the publicly traded home builders 13 cancellation rate from the previous years period. It also surpassed the industry peak cancellation rate of 47% during the darkest gloomiest days of the 2008 crash. So basically, this home builder, they had a cancellation rate of buyers for 68%, which we know that with especially new construction that we have condensed six years of a down market into literally less than 12 months for new construction. It took six years to go down 26% on new construction. I believe we're down 20% if I'm not wrong, depending on who you talk to in new construction right now. And that's just in a matter of nine months or so, probably 10 months, running up on a year now at this point. But we've condensed this six year down into literally less than a year. And that's just remarkable. But the cancellation rate back then was 47% versus 63% today. Again, within just a matter of months. But let's fast forward to February. It looks like we're already watching the housing market correction, which saw new and existing home sales contract near record speed in the second half of last year move into a new phase, positive phase. What's going on? Aggressive builder price cuts coupled with incentives like mortgage rate buy downs are helping builders get sales moving up again. This uptick in new home sales could mean the home price correction on the new construction side is losing steam or at least losing steam for now. And I think for now is really the punchline here. You know, they can't go out and say, oh, it's losing steam when when builders are out here, when you're doing price cuts, that's one thing. But with the two-to-one buy downs, I feel like we're getting some artificial pushback on prices where people are looking more at the monthly payment instead of the price. And I think that that right there is just a little bit concerning. And when it comes to prices, like we're not quite getting the price decrease, the market actually deserves organically. Organically. I feel like there's some artificial something going on there that's causing prices to stay up a little higher than maybe they should be. And so only time will tell if that's going to really play itself out as these buy downs mature and as the market kind of starts to bottom out. Builders have taken their medicine for the most part. Right now on pricing, we think national home prices on the new home side net of incentives are down about 10%. So they're saying new home prices down about 10% from their peak. We know that existing home sales are down more than that right this second. But this is Rick Palacios, the head researcher at John Burns Real Estate Consulting. He said there's probably not a ton of runway left. What he's saying is is that there's like new construction homes probably not going to come down much more is what he's saying. He thinks that we've probably found somewhere close to the bottom in terms of prices. Now he's talking about, you know, home price correction on the new home side not existing. Right. And he thinks that the home price correction on the on the resale side existing homes has a way to go. And this makes sense what he says here. And this is what I wanted you to understand about this. You know, what I'm fixing to share with you hopefully gives you a little bit of insight on how the rest of the year could play out here and what some leading indicators could be in the market. We still think there's more home price correction on the resale side. The resale market is always always stickier to the downside when it comes to home prices. Now he goes on to explain why. Unlike home builders who need to cut prices in order to move unsold inventory, existing homeowners are usually more resistant to price cuts. That resistance is why existing home sales prices usually bottom out last in a housing market downturn. So I hope that made sense to you all reiterate. The home builders, they have a lot of inventory and this is their job to sell houses. This is their company. This is their business. They have to move inventory. So they're not going to sit on inventory. They can't sit on inventory. That's why they're doing price cuts and, you know, buying down mortgages and, you know, putting blinds in houses and doing all kinds of extra stuff because they have to move houses. So they're willing to go in and cut prices quickly. But existing home sellers, they're a little more stubborn, right? Not all of them, but they're a lot more. You know, when you compare them to home builders, they're a lot more stubborn. So home builders, I mean, I mean, existing home sellers, you know, they'll put it out there at a higher price and they'll sit on it for months. You know, I don't have to sell. You know, this is what it's worth. And then eventually, if they do have to sell, they'll eventually have to start coming down on the price to get it sold. Some of them won't sell because like they said, they don't have to sell. They're only going to sell if. And so that makes total sense of why the prices on existing homes kind of bottom out after prices bottom out on new construction homes. So I thought that was just a very interesting, you know, sentence there. And here we go. We're entering the best real estate market opportunity since 2008. This is why billionaire investor is aggressively buying income producing property. So I want you to pay attention to what this are, this headline is actually saying. It says we are entering the best real estate market opportunity since 2008. And he's right. This is the best opportunity since 2008. Unless you can go back and buy houses in 2015 or 14 or 12 or, you know, even 18, even 19. But where is it going to go from here? That's the uncertainty. But we do know that we've lost two, more than $2 trillion worth of equity of U.S. houses in the country since the peak of June. So we do know things are down. We do feel like it's going to take a leg lower. Rents are coming down in a lot of markets. Rents are also still going up in a lot of markets. It's very localized. But when you double the cost of debt, you've got rents that are leveling out and coming down. That is a recipe for, at least on the multifamily side, to see more correction. So I think what we're going to see here is new construction, finding a bottom somewhere before existing homes actually find their bottom, right? And then I think after that, we're going to see multifamily find their bottom. I think it's going to go new construction, existing homes, multifamily. I think that's the order that we're going to see. But we'll see. We'll see how it all plays out. But this was interesting. Jeff Bezos and Elon Musk, they're playing in that single-family housing market. Jeff Bezos, if you guys didn't know, he started the company back in maybe 2020-ish or so. And he raised money. And this was a company that he did another round of raising money in 2022. So just last year, the company acquired single-family rentals across the U.S. and it allows retail investors to buy shares of individual properties for as little as $100. So he's actually creating this investment pool of single-family homes that you can invest in for as little as $100. So I don't know if you guys realize that or not. Elon Musk also here recently, he partnered with Lenore on building a project, Awesome. It's a new residential area of 110 houses in Texas that can provide housing for employees of Elon's companies, companies related to him. So you're seeing all kinds of people get into the real estate game. And I think that investors are kind of standing by licking their chops right now thinking, it's a little early, let's get our capital together. I think the investors that are really hurting right now, the iBuyers, that's the puzzle I can't crack is what are they? I've been trying to figure that puzzle out from day one. You know, an open door lost $1 billion in one quarter last year. You got an offer pad that just announced they lost $24,000 per house. They sold 10,000 houses and they lost $121 million doing it. It's like, how is that sustainable? I don't understand. Is it just, are they cooking the books and, you know, they could like show a profit tomorrow? Or, I mean, what is happening and how do you continue? Even if you have billions of dollars, you know, how do you just burn through it like that? Where's the light at the end of the tunnel for the, for those big iBuyers that are losing all this money? So anyway, love to hear your thoughts in the comments. Thank you for hanging out with me yet again. I'll put another video right here so you can continue watching until next time. Keep selling.