The Biggest Real Estate Opportunities Right Now

Brian Buffini (0:00)

You got a minute? Would you like to know the question I've been asked most of my life in the last 40 years? What's going on with the market? You go to a party, my wife goes in, she meets everybody, she has a great time. They find out who I am, what's going on with the market? And the reason being is that everybody's interested in housing. You know, if I was a taxidermist, they wouldn't be asking me. If I was a mortician, hey, what's going on with them bombing fluid? Nobody asks those questions. But they all wanna know what's going on with the real estate market. And what I'm gonna share with you, that what's happening right now in the real estate market is going to take years and years to recover from. There's a silent, massive change that's taken place over the last four to five years. And it's going to take the next five to 10 years to fix. The fact of the matter is, everybody's understanding of the housing market is wrong, because everybody's waiting for the boom times to come. So in today's blueprint, I'm gonna show you what's happening with the state of the market, and how you can prepare.

So in today's blueprint, I want to cover what's going on with the market. And the best way I can describe it is an anaconda's meal. If you ever watch any of those nature shows, and you see an anaconda, it'll eat like a sheep. And then it says it digests it over the next eight months. And you'll see this giant snake with a big lump in its belly. And so, it eats like one time, and it might take three, four, five, or six months to digest the meal. We have a whole bunch of people who are both homeowners, home buyers, and agents in between, who are all waiting for the era before the anaconda ate, and they're waiting for it to come back. The fact of the matter is people are waiting for super low interest rates. They're waiting for houses to become super affordable. They ignore the fact that inflation, if you had a hundred bucks in the year 2000, it's now worth 70 That's real. So we have inflation that ran away. We have interest rates that ran down, and we had a market that got overcooked. The real estate market is the anaconda that ate the meal, called the COVID real estate market. And it will take years to digest. Now, does that mean people won't buy and sell? No, they won't. But I just helped my daughter buy a home here in a community here in San Diego. They looked at five homes. There were only five homes available on the market. All five were divorces. The only people putting their house on the market were people who had to get out of the house. An entire community of 20,000 homes, five for sale. Those are the kinds of decisions that are being made. So I wanna tell you who's buying, what they're buying, where they're moving, what's going on with the market, so you can answer the question at the party, what's going on, as opposed to just me. And if you're in the real estate business, you need to be equipped with this. So just like what's been happening in the last couple of years and will happen for the next three to seven years, is that baby boomers will dominate the market. Baby boomers currently are in possession of over $90 trillion in assets. Baby boomers, the first generation that viewed real estate as something other than a place to live. Baby boomers bought homes also for investment. They bought apartment buildings. They bought second homes. And so that generation, and as it handles its real estate, and by the way, that generation is handing off assets at a slower rate than any generation that came before. Baby boomers are living longer, and they're holding on to their cash longer. Baby boomers make up 42% of all buyers and 55% of all sellers.

More than half of all sellers are baby boomers. What makes me crack up is real estate agents spending all their time with their TikTok campaigns, trying to find buyers and sellers, and half of them are in their 60s to 80s.

My joke is they think TikTok is a disease you get walking around in the woods, not a place to find a freaking realtor. By the way, they don't care what the real interest rates are. Why do you think that is? They're paying cash. 42% of all baby boom transactions are all cash money. So by the way, don't be crying the blues if you're an agent. They're buying, they're selling, they have cash. Now the largest demographic in the marketplace are millennials. That's people between the ages of 30 to 45 By far the largest demographic. Their percentage of buying and selling homes went from 29% down to 26%. So we have the largest group who should be buying and selling homes are actually buying less homes than they were even a year ago. First time home buyers. I bought my first home at 21