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Navigating the Real Estate Market in 2024: Expert Tips from Jeb Smith for Homebuyers and Investors

Writer's picture: Addison ThomAddison Thom

In today’s fast-evolving real estate market, having a solid strategy is key—whether you're a first-time homebuyer or a seasoned investor. The housing landscape has shifted dramatically over the last few years and understanding the trends, financing options, and smart investment strategies is crucial. In a recent episode of Anyone Have a Pencil?, we sat down with Jeb Smith, a seasoned real estate agent and host of The Educated Buyer podcast, to discuss the current state of the market and his approach to helping clients succeed.

With over 20 years of experience in real estate and mortgages, Jeb brings a unique people-first philosophy to the table, guiding clients through the often-complex journey of buying and selling homes. This blog will dive into key takeaways from our conversation, shedding light on the trends shaping the real estate market in 2024 and offering actionable insights for anyone looking to invest wisely.


1. The Current State of the Market: What’s Changed?

The real estate market is no stranger to change, and 2024 is no exception. One of the main themes in our conversation was how the market has evolved in recent years, especially post-pandemic. Jeb highlighted that while the market has slowed in some areas compared to the frenzy of 2020-2021, the fundamentals remain strong. However, inventory levels remain tight, particularly in areas like Orange County, California, where space is limited, and demand continues to outpace supply.

According to Jeb, understanding the local market is key. While national headlines might suggest one thing, real estate is hyper-local, and what’s happening in Orange County may differ vastly from what's happening in Texas or Missouri. Jeb explained how land availability plays a massive role in pricing and demand, especially in densely populated coastal areas. For those looking to invest, knowing the dynamics of your specific market is critical to making smart decisions.

Key takeaway: Real estate markets are nuanced and vary significantly based on location. Stay informed about your local market to make educated decisions.


2. Leveraging Your 401k to Buy Real Estate: A Powerful Tool

One of the most eye-opening moments of our discussion was Jeb’s advice on using your 401k to invest in real estate. Many homebuyers and investors overlook this powerful tool, assuming that they need to save up a large down payment before buying property. However, Jeb explained how borrowers can tap into their 401k through loans without facing the heavy tax penalties that come with early withdrawals.

Here’s the breakdown: by borrowing against your 401k, you essentially loan yourself money, which you pay back with interest—into your own retirement account. This not only allows you to buy property sooner but also keeps your money working for you, as you're essentially paying interest to yourself. Jeb was quick to dispel common myths, such as the fear of disrupting compound interest growth. In reality, the ability to invest in real estate often outweighs any potential loss in compound interest, especially when factoring in property appreciation, tax benefits, and the ability to refinance later.

Key takeaway: You don’t have to wait to save a 20% down payment—borrowing from your 401k could be a strategic move to enter the market faster and capitalize on real estate opportunities.


3. The People-First Approach: Why Relationships Matter in Real Estate

What sets Jeb apart from many agents in the field is his dedication to a people-first approach. Rather than focusing purely on making sales, he emphasizes the importance of building strong, lasting relationships with clients. This client-focused mentality means that Jeb isn’t just interested in closing deals—he’s invested in ensuring that each person he works with makes the best possible decision for their unique situation.

As Jeb puts it, "Real estate is about more than transactions; it’s about helping people achieve their goals." Whether it’s a first-time buyer trying to navigate the confusing world of mortgages or a seasoned investor looking for the next opportunity, Jeb’s goal is to educate, empower, and guide. By focusing on individual client needs and goals, he ensures that they make decisions that are aligned with their long-term financial well-being.

Key takeaway: A successful real estate experience starts with trust. Find an agent who prioritizes your goals over profit.


4. Understanding the Real Impact of Interest Rates and Market Trends

Interest rates are always a hot topic in real estate, and with good reason. In our discussion, Jeb acknowledged that while rising rates may give potential buyers pause, there’s more to the story. Waiting for rates to drop may seem like a safe bet, but it often leads to missed opportunities. In fact, Jeb stressed that trying to time the market perfectly is next to impossible. Instead, buyers should focus on their personal timeline and financial situation.

His perspective is that homeownership is about the long game. Even if rates are higher today, you can always refinance when rates drop, but the price of a home you pass up today might increase by tens of thousands of dollars. Especially in a market like Orange County, where demand outpaces supply, waiting could cost buyers more in the long run. The key, he explained, is to view real estate as a long-term investment and a means of fixing your housing costs for the future.

Key takeaway: Don’t let interest rates scare you away—if you’re financially ready to buy, the best time is now. You can always refinance, but you can’t always count on property prices to stay put.


5. Investing in Orange County: Challenges and Opportunities

When it comes to investing in Orange County, the opportunities are still there, but they’re not without challenges. As Jeb explained, land in Southern California is a hot commodity, and the cost to build new homes is incredibly high due to regulatory fees, environmental concerns, and a limited supply of available land. This means prices are steep, but demand remains high, especially for turnkey, move-in-ready homes.

For investors, Jeb suggests considering fix-and-flip opportunities, but warns that competition is fierce. Many investors are targeting these opportunities, and properties are often selling for more than they’re worth, driving margins down. However, with careful planning and a clear strategy, there’s still money to be made. Additionally, while it’s tough to find properties that cash flow in Orange County, the long-term appreciation potential is significant, making it an appealing market for those willing to hold onto their investments.

Key takeaway: Orange County may be a tough market for cash flow, but its appreciation potential makes it a solid choice for long-term investors.


The real estate market in 2024 presents both challenges and opportunities, but with the right approach, there are still plenty of ways to succeed. Jeb Smith’s insights remind us that the key to success is understanding your local market, leveraging available financial tools like your 401k, and taking a people-first approach to every transaction. Whether you're buying a home for the first time or adding to your investment portfolio, it’s important to stay informed, work with knowledgeable professionals, and focus on your long-term goals.

As Jeb emphasized, timing the market perfectly is nearly impossible, but making informed decisions based on your unique circumstances can set you up for success. If you're ready to take the next step in your real estate journey, Jeb’s advice offers a solid foundation for navigating the market with confidence.


Ready to dive deeper into Jeb’s expert insights? Tune in to the full episode of Anyone Have a Pencil? and hear more from Jeb Smith on mastering the real estate market, leveraging smart financial strategies, and making informed decisions. Listen now!

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