Tarek El Moussa predicts strong buying opportunities in the housing market

The U.S. housing market is experiencing shifts that some experts believe could lead to new opportunities for buyers in the coming years. Tarek El Moussa, the host of HGTV's 'Flipping 101', stated during an appearance on 'Fox & Friends' that he foresees a significant chance for buyers within the next 12 to 18 months. While inventory levels have been rising, he emphasized that they are still lower than what would be considered normal, highlighting a discrepancy in market conditions. Specifically, a report revealed that 2024 recorded the lowest existing home sales since 1995, which adds a layer of complexity to the interpretation of the real estate market dynamics. El Moussa acknowledged that the current mortgage rates, although high, have seen slight reductions recently, with the 30-year fixed-rate mortgage averaging around 6.65% as of late March 2025. This decline in rates, while significant, hasn't led to a corresponding increase in sales due to high home prices and limited inventory. El Moussa pointed out that many homeowners with existing low-rate mortgages are unable to move due to high rates and strict lending standards, contributing to the ongoing scarcity of available homes. Additionally, El Moussa clarified that he does not attribute the changes in the housing market to political leadership, specifically regarding the Trump administration's effect. He believes the Federal Reserve’s efforts to manage inflation and prevent a recession are more influential factors. He suggested that we might see interest rates fluctuate in the near future as the government navigates these economic challenges. Furthermore, he speculated about a potential long-term shift in homeowner behavior, indicating that people may choose to stay in their homes longer and invest in renovations, which would further affect the dynamics of the housing market. The administration's efforts, particularly through the United States Department of Housing and Urban Development (HUD), are aimed at expanding housing availability. Secretary Scott Turner has noted initiatives to utilize federal lands in the pursuit of affordable housing solutions, addressing the current shortage in the market. This interaction between governmental policies and market responses could play a crucial role in shaping future trends in homeownership and investment in U.S. real estate. Overall, the forecast suggests a transition period where potential buyers may find advantageous conditions in the market, though challenges remain regarding inventory availability and mortgage qualifications.