The four U.S. housing markets being impacted the most by oversupply

potential home buyers are getting squeezed by higher mortgage rates and low inventory levels are keeping prices high. The majority of cities, but Goldman Sachs is out with a new note revealing that of the largest 25 metro areas nationwide, four of them, Austin, Seattle, San Francisco and Phoenix. You're looking at them on your screen. There have higher inventory levels and pre pandemic and they're actually dealing with an over supply. Danny Romero joining us now in studio and dating. This is pretty fascinating because we talk about the high prices potential home buyers are getting squeezed by higher mortgage rates and low inventory levels are keeping prices high. The majority of cities, but Goldman Sachs is out with a new note revealing that of the largest 25 metro areas nationwide, four of them, Austin, Seattle, San Francisco and Phoenix.

You're looking at them on your screen. There have higher inventory levels and pre pandemic and they're actually dealing with an over supply. Danny Romero joining us now in studio and dating. This is pretty fascinating because we talk about the high prices and the low prices. We're looking at the high prices and we're looking at the low prices. We're looking at the high prices. It's really fascinating because we talk about the fact that inventory levels nationwide in most cities are very, very low.

What's driving this? What do you think is factoring into this over supply in those cities? Shauna, just not a pretty picture for the West Coast and the Southwest region. Like you said, supply is outpacing demand. So for example, if we move over to the West Coast in San Francisco specifically, they it's one of the most and the low prices. We're looking at the high prices and we're looking at the low prices. We're looking at the high prices. It's really fascinating because we talk about the fact that inventory levels nationwide in most cities are very, very low. What's driving this? What do you think is factoring into this over supply in those cities? Shauna, just not a pretty picture for the West Coast and the Southwest region.

Like you said, supply is outpacing demand. So for example, if we move over to the West Coast in San Francisco specifically, they it's one of the most exciting things in the region. The pandemic caused a massive exodus of residents looking for more space, affordable housing in other towns. And you also have to realize that San Francisco is part of Silicon Valley and the tech industry has been hit by massive tech layoffs. And even though these workers are finding other jobs in other markets, it's still impacting the region. The good news, though, is that home prices exciting things in the region. The pandemic caused a massive exodus of residents looking for more space, affordable housing in other towns.

And you also have to realize that San Francisco is part of Silicon Valley and the tech industry has been hit by massive tech layoffs. And even though these workers are finding other jobs in other markets, it's still impacting the region. The good news, though, is that home prices have fallen from San Francisco. So there's not really much competition, which is a really big incentive for sellers, right? To bring buyers into that market. Now, if we move over to Phoenix, Arizona, home prices there have also fallen. Home sales, excuse me, have fallen there really cooling off from the pandemic frenzy that we saw, right? Due to those higher mortgage rates and you know, we saw the we saw mortgage rates bounce back up towards that 6% have fallen from San Francisco. So there's not really much competition, which is a really big incentive for sellers, right? To bring buyers into that market.

Now, if we move over to Phoenix, Arizona, home prices there have also fallen. Home sales, excuse me, have fallen there really cooling off from the pandemic frenzy that we saw, right? Due to those higher mortgage rates and you know, we saw the we saw mortgage rates bounce back up towards that 6% home buying activity for the moment. But Goldman Sachs does note that the housing outlook looks less dire and they're expecting that home prices will fall around 6.1% as mortgage rates had toward that 6.5%. The issue though still remains that there is just a big supply of multifamily units, which will really challenge the rental market. It's interesting.

Those four home buying activity for the moment. But Goldman Sachs does note that the housing outlook looks less dire and they're expecting that home prices will fall around 6.1% as mortgage rates had toward that 6.5%. The issue though still remains that there is just a big supply of multifamily units, which will really challenge the rental market. It's interesting. Those four cities that you mentioned there, the people you worry about are the ones that bought at peak COVID prices.

They're going to get crushed in that two year period. But the people that brought prior to it are still going to see an increase over that period because prices went up larger than the numbers we showed. I don't know if that makes a whole lot of sense to you, but the people that brought prior to that massive increase, they're cities that you mentioned there, the people you worry about are the ones that bought at peak COVID prices. They're going to get crushed in that two year period. But the people that brought prior to it are still going to see an increase over that period because prices went up larger than the numbers we showed. I don't know if that makes a whole lot of sense to you, but the people that brought prior to that massive increase, they're going to see an increase over that period because prices still up over a three year period. If you bought right in the middle, oh boy, you're going to see a crush.

They're still making some profit off of what they bought. Interesting. Danny, thank you so much. Appreciate that. Have a good weekend. going to see an increase over that period because prices still up over a three year period. If you bought right in the middle, oh boy, you're going to see a crush.

They're still making some profit off of what they bought. Interesting. Danny, thank you so much. Appreciate that. Have a good weekend.

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