Welcome to the Pocket List, investors 👋

Let’s make some money today, shall we?

First, let’s check in on mortgage rates…

The 411 on rates… Rates have been in a pretty narrow range for the past few weeks. Unfortunately, that range is right around 7%. We could see some movement today after Consumer Price Index data (read: inflation) drops.

THE LEAD

No, inventory isn’t “soaring”

Perhaps you’ve heard recently that inventory has soared as much as 40%…

You don’t need a PhD in economics from the University of Phoenix to know that when supply jumps, prices should fall.

Of course, that hasn’t happened. In fact, prices have risen…

So wtf is going on?

There’s a lot to unpack here…

But most of it has to do with how inventory is measured.

For starters… even though total inventory (so new and existing homes) is increasing, it’s newly built homes that are driving the supply side. Supply of new homes is ~9 months. While existing homes are closer to 3. Historically, new and existing home supplies are pretty close.

And, fun fact, only ~20% of those new homes are actually ready to move into. The criteria for “new home inventory” is a bit less clear than existing homes. Homes that are permitted, under construction, or held off the market are all included in the figure. So, in reality, the new home inventory is far less than the stats would imply.

Just in case it wasn’t enough of a clusterf*ck…

Even the existing home inventory numbers are skewed. Lower-priced homes, which are more attractive because of high interest rates, are dragging down that supply figure (think: they don’t stay on the market long). Meanwhile, more expensive homes that are sitting on the market are bringing up the average.

💭 Mr. Pocket Listing says… Question. Everything.

WHAT ELSE?

More headlines I’m keeping an eye on…

• The new normal for mortgage rates will be around 6%, says NAR’s Lawrence Yun (Watch)

• The US housing slump deepened this spring. Where does that leave home shoppers and sellers? (Read)

• Home buyers who could barely afford their homes are a hit with TikTok viewers (Read)

• The pool party’s over as Americans ease up on backyard upgrades (Read)

• Suburban Chicago man hit with shocking $30K property tax bill on modest home he bought for $115K (Read)

• Is it possible to get a 5% mortgage rate? Yes, but here’s the catch. (Read)

DIY

Let’s get tactical…

• How I’m Able to Find Success in Real Estate Even Without Securing Great Deals (Read)

• Where you should hold your savings for deals (Read)

• 8 best real estate marketing companies to boost your business in 2024 (Read)

• ‘It’s ok to marry the house and date the rate’ and 6 more key pieces of real estate advice from Ryan Serhant (Read)

• Just because something is the best deal you can find does not mean it is a good deal (Read)

• Is Virtual Staging Better than Real Staging When It Comes to Selling a Flip? (Read)

Mr. Pocket Listing’s favorite property of the week (a guy can dream, can’t he?)…

PROPERTY TOUR

It’s time to get a pulse on markets around the country…

(1) Fascinating study shows the minimum salary you need to buy a home in all 50 states - do you earn enough? (Read)

(2) 10 Undervalued Housing Markets To Buy Property Before the End of 2024 (Read)

(3) 8 Best Cities To Make Money With an Airbnb Rental Side Hustle (Read)

(4) Top 10 U.S. Counties Requiring Highest Percentage of Annualized Wages to Buy a Home (Read)

SURVEYING

Last week, I asked, “Why do you (or want to) invest in rental properties?”

The top 3 answers:

1. Cash flow

2. Diversification

3. Building generational wealth

Here’s today’s question…

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One last thing…