Compass CEO Says There Is Not Enough Housing Inventory

The video discusses the impact of interest rate hikes by the Fed and the Bank of Canada on the housing market, highlighting the resilience of the market despite high mortgage rates. It addresses the issue of low inventory due to homeowners being locked into low mortgage rates, termed as 'golden handcuffs.' The discussion includes strategies like renting out homes to maintain financial benefits. Predictions suggest a market shift when mortgage rates decrease. Current trends show strong new home sales and stable prices, with opportunities in challenged markets like San Francisco due to potential return-to-office trends.

What is one of the main reasons for the low inventory in the housing market?

• Increased construction costs

• Homeowners locked into low mortgage rates

• Government regulations

• High demand for new homes

What term is used to describe the reluctance of homeowners to sell due to favorable mortgage rates?

• Platinum chains

• Silver shackles

• Golden handcuffs

• Bronze bonds

What strategy are some homeowners using to maintain their low mortgage rates while moving?

• Refinancing their mortgage

• Buying a smaller home

• Renting out their current home

• Selling their current home

At what mortgage rate level does the speaker believe a flood of inventory will return to the market?

• 6%

• 3%

• 4%

• 5%

Which market is identified as having potential investment opportunities due to a lag in return-to-office trends?

• New York City

• San Francisco

• Los Angeles

• Chicago