SINKING Housing Market DEVASTATING THE ECONOMY
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- เผยแพร่เมื่อ 29 ก.ย. 2024
- All year the housing market has been sinking to record low levels in terms of sales volume. This has consequences and the lack of sales has been rippling through the economy in other sectors that would normally benefit from a booming housing market like furniture sales, home improvement, gardening electronic sales, the list goes on.
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#realestate #housingmarket #homeprices #housingmarketcrash
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The Condo Crisis JUST GOT WORSE! You've Been BLACKLISTED th-cam.com/video/H75qjndUWIs/w-d-xo.html
Do you think the new housing market will come down in 2024? My wife and I just had a baby and we’re looking at a new house in SoCal. 477k for a 2300sqft house at 5.3% for 30 years. Want to wait if prices are just going to come down next year. Your thoughts are appreciated. Thanks for this channel!
Wait. you will be able to buy this same house this time next year for half that price @@brandoneckcarr
I've said it before! Get out of the southern state dictatorship of Cali. Go pan for *Gold* if you need *Money*
People are fleeing Canada like never seen.
Hey Michael, can you show how homes in the more affordable areas of Miami-Dade are being affected? Most people aren’t looking to buy 2mil plus homes near Miami Beach.
Where I live starter houses go from 450 to 650k. People that need this housing couldn't afford it even if they were sold interest free.
A starter home is 850k where I’m at. For 2 bed 1 bath, 850 square foot.
Move
Move where, Nebraska. Well in my tiny home town there family homes are costing 300K and believe me in BF Nebraska jobs aren't paying 90k a year, more like 25k a year.@@frederickmuhlbauer9477
There is a difference between prices coming down and inflation figures been reported.
I replaced the water heater for my landlord, he is considering raising rents because of the increased cost of living.
I don't take vacations, it's more like evacuation.
I'm not a tourist, I'm an economic refugee.
I make 500k a year and 1 I would never pay 7k for rent and 2 never would I buy a house in this bubble …something doesn’t seem right about these listings
You are smart! Prices are ridiculous. 😢
It's crazy how vast the difference is between building a home and buying a home of the same size.
Is that take home?
Deff agree
I agree!!
Michael, you are really speaking some truths today about consumers having cut their spending. I certainly have. I'm watching every penny!
Watching every penny all of the time must be exhausting. How many pennies do you have? 😂
@BREEZYM6015 It is exhausting and a damn shame to count all your pennies. At this point, I don't have any more pennies to count, smarty pants.
I’m doing it too largely because it’s pretty obvious what’s on the horizon. I believe they are trying to prop things up long enough to make it through the election. After that, all bets are off and you’d better be ready.
Most smart people have cut their spending and buying precious metals
@@frederickmuhlbauer9477 Sounds like fun. Bring out the noodles.
Paying $7k a month to rent a 1960s house in Miami Shores is peak 2023....I was born in Miami in 1964, and I can tell you, those places are NOT worth even 1/4 of that price a month. A BIG crash coming.
Probably just more vacant homes and more homeless people. The greed is never satisfied.
You’re right Miami sucks anyway
The scenario today is way worse. Since 2009, $27 Trillion has been created out of nothing. In what world will this end up ok?
Perfect summation.
BITCOIN WORLD that's where
Clown world! 🤡
In a world where supply increases at the same rate.. guess you don’t know about that
@@robmyers8948 supply of what, currency? Nothing good comes from fiat money expansion
They can keep their new shoddy construction along with their massive rental apartment buildings that usually accompany their new builds. Awful!
My 1930s house ,where I no longer live, is beautiful.
@@chrislastnam6822 I've been looking for one of those beauties from the late 1800's to early 1900's. Nothing like em.
I think that most people would be SHOCKED at how far the value of your house can fall. My husband and I bought a house in 2010 from HUD at auction for $55,000. It is 2640 sf with a 832 sf basement. It has six bedrooms and four bathrooms. That’s a lot of house for one person and a tiny little dog. However, I going to need that space for all the widows in my family who are are fleeing Florida. It is just too expensive for my grandparents, parents and aunts. My actual mortgage payment is $268.00 per month. I’m going to charge those three little yapping dogs they bring with them a $100 apiece.
Nice
It falls because it's old and likely needs upgrading. That house is at least 13 years old.
My house is 220 years old and it didn’t fall
everything falls. Give it time
@@TheMaestro7777777 well, if you sit around and wait for something to fall, you’re gonna miss out
My cousin in Los Angeles just got laid off from her upper management job after 27 years at IKEA. You are absolutely right about the trickle down effect.
27 years ? She should retire already
I'm stocked up on popcorn. Let the Empire Fall!
Im hoping to buy a house in the next year or so, but all these houses that used to be 400k a few years ago are trying to sell for like 600k and many of these houses have been listed for months. But when you look at price history and see the home is up 150-200k in the last few years…you would be a fool to buy imo
Yah & wen the Feds lower the interest rates, the housing race will be on again & prices will be forced upwards.
@@Userxyz-z2dyou can have all the supply in the world, if there’s no demand prices will go down..
@@Userxyz-z2d eh? Only time will tell. An argument can be made that when they lower rates its because unemployment or something bad is spiraling and that if they lower rates. Tons of sellers on the sideline will list their homes..flipping supply over demand
@@Userxyz-z2dtell me you're a boomer without telling me your a boomer.
@@Userxyz-z2dnot necessarily. Frankly everyone who is locked in golden handcuffs will list to get another house and with affordability being at an all time low there very likely will not be enough people willing to pay these ludicrous prices. Listings go up, inventory goes up, prices crash.
It's not 7 or 8 % interest rates that are screwing the housing market, its the sellers who need to come to the realization that the house they just recently bought isn't really worth what they think it is. This will take many months or a couple of years.
Decades. LMFAO!!!
@@JohnVKaravitis I know that Americans don't stay in the same house for that long. Especially if they lose their job or have a divorce or health emergency.
@@Resmith18SR and divorces being near 40% - 50%, it will happen soon
The same ones that overpaid the asking price with no inspection
@JohnVKaravitis I'm waiting on the sidelines with 🍞 🤷♂️🤣🤣
Do you remember 5$ pizzas. Or 5 $ subs. Now there 10-15$ it wasn’t that long ago either
Do you remember when Dollar Tee💲🌳 was $1?
@@hideoussails1783 and there was a dollar menu at mc Donald’s
You gotta learn to make pizza at home it's so simple, Trader joe sells the dough, Total cost about three bucks.
I have been looking at houses for three years and to this day I have never seen a house worth the asking price. (In my opinion) I typically laugh every time I get a new notification from Zillow about a house. It's either a hole in the wall and way over priced or nice but still way over priced. I will keep renting, thanks.
Most of the listings in my area are either new construction spec houses (getting crushed) or people trying to flip houses they bought in the last 2 years for double what they paid.
The only thing selling around here are a few $300K and under houses.
Interest rates could drop to 2% and people still couldnt afford most of these 100%+ inflated house prices. Prices have to come down, and they will.
Everybody hold the line and make these sellers bleed. Prices will keep falling and the market will correct itself. Be patient and position yourself to take advantage of this crash.
You must be in idaho. I feel the same way.
@@t.w.2000 Im in NW Arkansas
Absolutely right! It’s the price! Not the interest rate! 😂
I live in north Massachusetts. I've been watching the housing market closely because we currently rent and plan to buy. For the past 2 years it has been way too much of a sellers market. The prices don't match the houses no matter the interest rates. I've seen junk houses sell for 650K. Houses I wouldn't buy for 300K.
There is no such thing as a perfect house. Some people buy ugly homes fully intending to completely renovate them.
I think homes that have been on the market a few months are being pulled off the market until after Christmas season/spring too.
Where I live all homes drop their prices exactly three weeks after listing. Months later they are still listed with zero additional price drops. Most sellers are not serious about selling.
My rent went up $75/month for next year here in Richmond, Virginia. I know a lot of places are worse, but its still rough when everything else is going up too. 😕
Bidenomics, elections have consequences
What % of your rent is $75?
@@Alejandro_sanright?! Maybe she was paying only $750.
No handouts. Get a better career or level up that job. Some of us had to earn two degrees for the careers we have. You might think about doing the same.
Negotiate! Rents are def going down in RVA, by a pretty substantial amount.
We stopped spending on extra things like eating out and buying clothes. Cancelled cable and paid off our car loan. Time to hunker down
You said it..
If it were not for live sports I would have Zero need for cable. The days of cable dominance will soon be over too.
If it were not for live sports I would have Zero need for cable. The days of cable dominance will soon be over too.
If it were not for live sports I would have Zero need for cable. The days of cable dominance will soon be over too.
I haven’t paid for junk tv since 2001 it’s all rubbish anyway
Heaven forbid letting me make 5% on a CD. The rates need to stay where they are so the capital will be used wisely.
You are correct. This whole "pivot" with the Federal Reserve is clearly a scam. Inflation over? Give me a break.
They want you to gamble in the stock market though so pensions can be funded.
Why on earth would you save in dollars when it’s collapsing in value? Makes no sense to me I’m buying metals with every dollar
I appreciate you and your content < Technical Analysis is good but I find It truly baffling that major crypto you-tubers just look mostly at pure T.A and completely ignore the bigger narrative of why BTC is pumps/pumped and why the future outlook will be even rosier than it seems. It's kinda irresponsible to ignore the fact that each ETF launch so far has caused a major dump at the peaks of BTC. We were already on shaky footing with historically low volume and almost pure whale pumps, narrowly avoiding a long-term bear market. More emphasis should be put into day trading as it is less affected by the unpredictable nature of the market. I have made over 14 btc from day trading with KERRIE FARRELL insights and charts. She has been one step ahead of other analysis...
2+million for a house that looks like a fancy double wide..........great.
It's the location.
@@stevo728822 Shitsville?
The govt doesn't give a f... bout small business.
"Sales are at a 13 yeae low". Because inventory is at a 20 year low (non pandemic years). Also , homes sales actually went UP .8% from last month.
But of course you dont mention any of that with your usual half baked "analysis". 🙄
Houses are just too expensive right now. Especially with the current interest rates.
If Powell and the Fed lower rates back to 3% or lower then expect future asset bubbles in everything. Powell should have kept with Higher for Longer, but he's doing the bidding of the President and wealthy investors who live off zero interest rates.
Vote them out.
Well he is also looking at inflation and that has come down. You can make the argument the way they measure inflation is BS... but that is a separate issue. Also the FED hasn't cut anything yet but the markets have.. the 10 year has been hammered down 120 basis points without any FED action. This is in essence a rate cut without a rate cut... which may very well prevent the actual rate cuts from happening.
@@jonathantaylor6926 Powell is pumping up the stock market by announcing all the rate cuts for 2024. The outgoing President of Morgan Stanley who was making over 30 million a year salary said the stock market will take off now because of the rate cuts. These bankers and hedge fund managers love cheap, free money at 0 % interest rates. Prices and inflation have remained sticky and I'm not the only one who thinks the Fed's reliance on B.S. stats on unemployment and inflation. Higher for Longer meant what really? Only 6 months? In my mind Powell lost the little credibility he might have had with the rate cut announcement.
"Build Back Better" means destroying, first.
Yep
Absolute nutzo ! No matter how much you are making a year, paying 25k a year to any State, year after year after year is just plain nuts.
My property taxes were about 1900.00 2017to 2019 to now 3400.00 since 2021 it’s not that high but it’s still ridiculous from one year to the next doubled and I been in the same house since 2017 didn’t refinance didn’t do no equity loans or heloc loans they went based on what properties around here were selling for in 2021 600-700k today in 2023 they are selling for 800-900k not even the best schools or houses at that in California
That's a special place where you pay 25k for a tax year. Just beautiful. Of course most don't want to pay that for taxes but it's still a special place.
Real estate agents are lining up at Starbucks to fill out employment applications here I Washington DC…
Michael, no suprize about HomeDepot sales being down.... HD has jacked up prices so much since 2015, HD opened themselves to competition from independent suppliers in a big way. However the real estate market is not as big a part of the economy as you might think and not causing devastation across the board. Florida is a special basket case all of its own.
I went to the Casino in Reno this past weekend. 49ers doing the best they have ever done. Casinos were dead!
Honestly, at this point I think I would buy a new home instead of pre-existing.
Probably less of a hassle to insure
Be aware that new construction is being built shoddy.
Bad quality, only a foot apart, and no mature landscaping…
New homes can allow you time to save up before something breaks. Existing homes can hit you as soon as you move in. I started looking in 2017 and it seems like people try to pass their problems on you. Like selling before the roof is done.
@@Jack-pd4ps homes that need work are the best ones to buy
Seems like everything is going from bad to worse 😢.
Thank you Sir. Blessings from Paso Robles, California, Carlos ✝️🙏❤️😊🇺🇸🎄🎄🎄🎄🎄
Corrections are not necessarily bad.
I used to love going to Paasa Robles and Atascadero when we'd go to San Antonio Lake 5 times a year for vacations. We'd drive to get groceries & drinks. Great place!
@@ragtie6177 thank you for your reply. I recently Just retired from owning 2 full service restaurants for for over 32 years. The name was
Señor Sancho’s. It’s been a wild ride but I feel blessed that I was able to do that for the majority of my life.
Blessings,Carlos ✝️🙏❤️😊🇺🇸
The longer you remain in Califas, Carlos, the more money you'll flush down the drain. The juice is not worth the squeeze (like marriage).
@@SirCarlosMusicBMI you're welcome.
Its the high home prices. The rates are close to being normalized.
Buy now and refinance when your hone is worth less , START a new Mortgage with PMI ???? 😂😂😂
Our interest rates are not really that high. Traditionally until the 2008 bust mortgage rates have hovered between 6 and 7 percent , if it went under 6 people ran to but a home . The problem is we have gotten used to artificially low rates. A 3% mortgage is not your god give right as free capitol is not the right of businesses. For me the rule of thumb is for everyone borrowing money there has to be a decent payoff for the people lending the money. Everyone thinks these low rates were great - yes, if you were a borrower, what about savers who could always get a good safe return on their money , especially seniors. That is the reason why I think the Fed has totally screwed everything up. The market should set the rates, not some bureaucrat (many with political leanings).
Agree with you.
Took a drive last Sunday in St Pete, Fl. Was surprised at the amount of open houses when you didn't even see For Sale signs in yards until a few months ago.
Here we go again
Yeah I am seeing that here in Largo< Fl. Have a house 2 blocks over from me. Typical 1600sf , 3/2 build in 1964. They listed at 499k now it's down to 460 and it's still sitting. It's in nice shape compared to others around here that sold in the recent past. It's doesn't need a roof (SHOCKING) has nice tile floor and is a 2 car garbage move in ready....but it's not selling...................I figure another year and you will be back to every other house in the entire county being for sale / short sale/ bankruptcy sale. Happens every 15 or so years here in Fl.
SAN DIEGO INFLATION November 2023. All Items 5.2 % whos fooling who ???? DELI SHOPS no longer post prices online.. average 10 bucks for a sandwich + drink + chips are XTRA .... CRAZY ...
Only $10???
Here in Ohio not unusual for a home to sit on the market 6plus months if it’s priced over 200k .. there’s plenty of inventory here .. a nice 2 bedroom apartment with a car port has dropped to 700 bucks a month.
What part??? I live in ohio and a 2 bedroom for 700 is either in the middle of nowhere or the hood. A nice apartment in a nice area you're looking at 1500k plus
...but who wants a carport?
@@Neonravekid small town Ohio. Lexington
Ohio sounds great to me
@@bryanspayde5681I'm in Maumee Ohio, I just got 2 offers for 282,000 I was asking 275,000 I do live in a nice hood tho.lowest priced house in one of the nicest hoods in the county.
Always enjoy your daily observations Michael. Thanks 🙏🏾
I lived through the 70s, and you can't compare the 70s to now. You explain it well, Michael.
Florida will comeback.
@@marknewton6984 I've lived in Fl for 42 yrs now, and it's a dystopia as compared to the 70s-90s. With 10mn illegals in the USA, what will come back too?
@@marknewton6984 Come back? In my opinion it was never there to begin with Good luck with that Better take Spanish lessons asap
The rates are having an impact but your cannot raise home price by 200 - 300 percent and expect homes to keep selling. Home prices are starting to come down but they have a long way to go before they get to where they should be to be back in line with what would be considered a normal increase.
So the normal working people can afford to buy homes for themselves, not for a quick buck resale
I am a realtor I just sold for $875,000 and seller step down to $333,000 home. That 2 commission. If you want to find the deals you could become a license realtor. You will have access to the lowest prices and rents. This helps a lot as you save a lot over my 33 years. I know where all these 300,000 $ homes are. See they show the average is let’s say 6-700,000 but that the median price. There lots for less but only realtors know how to do this!
No
Hi Michael , thank you so much first for your content, and a very close second, thank you for not having an intro or stupid catchy phrase. So many TH-camrs think we want to see their amateurish intros, song, cartoons, and stupid music they ripped off. We don't, you just give thoughtful accurate content. I listen because you know real estate, I foolishly invested 250K in Yield Street, an alternative financial product company with loans offering higher interest for multi family apartment, commercial real estate projects, airline jets, legal settlement loans, etc. but 3 or 5 of these financial products involving real estate are in what YieldStreet calls " modified outlook, a fancy name for big trouble and not paying scheduled interest payments. So listening to your content gives me insight into the sector. Needless to say, I am no longer investing in these products or REITs . Switching instead to treasury bills. Thank you
Starter houses at $400k is nuts.
Starter houses at 2000sf+ is just as nuts.
I agree. Only thing I say is the starter house is now becoming your forever house.
Homes that are over 100 years old, in rough condition, and less than 800sq ft are now selling for 300k+ in southern Idaho. Those shacks were worth 50-60k back in 2016. The average home cost 170k in 2016. Currently, the median home price here is almost 600k. It peaked at over 630k recently. While house prices quadrupled, wages rose a meager 15%.
As a licensed journeyman electrician, I'm now priced out of this area. When my rental lease is up in April, I'll be priced out of living in a house in Idaho. Renting somebody's spare bedroom for $1200 or the cheapest, most ghetto apartment for $1500 per month DOES NOT sound appealing to me. Rent is barely higher in Los Angeles than it is here now.
Between the new $50k rental insurance policy (not to be confused with renters' insurance) I'll be required to carry and rent going up yet again, I'm facing at least an $800 per month increase, which I can't afford. I can barely keep up with the cost of living, despite working full time as it is.
Rent for the small home I'm living in was $700 per month in 2018. I pay $1600 currently. Rent for this place is currently valued at $2200. I'm looking at over $2400 per month, including insurance, if I want to renew my lease in april. I can't afford it. I'm being financially forced out.
I'm moving to Missouri when my lease is up. Since Idaho still has some of the lowest wages, I'll be earning $7 *more* per hour doing the same job in Missouri, which is still lower than average. In just a few months, I'll be escaping the californian-induced wage slavery that has become the new "normal" for Idaho. The Californian invasion/infestation has financially RUINED Idaho's working class people, including myself. I've had enough. I used to love this place. Now, it's a living nightmare.
Seriously, Idaho is not a place where locals are doing well. Of the top 200 metropolitan cities/areas in the US, Southern Idaho now has the #1 worst local income/cost of living ratio in the entire country. Non-coastal California is cheaper than Idaho now, yet pays double or more.
Thanks, Commiefornians.
@@Brandon_Nelson92thanks for sharing your story, I suspected what you said. Welcome to Missouri!
@@Brandon_Nelson92 Wow, It's crazy. How the working class people will be able to effort these housing and rent prices. Can't understand. Thanks corrupt politicians
@@Brandon_Nelson92 that only adds to a deeper mystery, as you're talking ee-da-how, and unless you're into wooded highland with run down housing stocks, and you're Hollywood, I personally don't get it.
In 2021 my friends were in contact to buy a new home in Orlando for retirement. They were informed three months before closing that the price had gone up due to increased materials costs. They backed out of the deal even though they could easily afford the increase. Now they are back and are able to snap up a house 15% less than they would've paid. So not gloom and doom for everyone.
If Powell and the Fed lower rates back to 2% or 0% then that will just create future asset bubbles despite how "low" inflation and unemployment is. The people who are wealthy and doing well in this current economy keep saying that because it's not affecting them personally right now, and they must not really care about their fellow Americans who are really suffering now. If more banks go under and other things go south that affect wealthy people then you might hear from them.
I agree. We here, keep wondering when we'll start hearing terminology like "Too big to fail" again.
Don't worry Michael. Just today Moody's says everything is going to be great for housing (and anything else you care to mention).
Walmart has been trying to cut hours, I see it in my store right now there making a huge stink about overtime. Anyone with overtime is being asked to leave early or take a longer lunch to avoid it for full time workers and there’s been multiple posts a day in the Walmart subreddit about their hours getting cut and the same issues with OT.
Le me looking at lowest inventory and prices and demand keep increasing , whereas these meaningless people on TH-cam making videos about a crash 😂
DAILY - you talk about others bad decisions. Here's the thing, there is a "no consequence" class of people. They make these lifelong bad decisions because someone in their life will bail them out in record time. Or they understand how to discharge strawman debt. Our inverted world does not punish greed, lies, ego, and most crime. Yet daily you preach "accountability" like Linus preaches the Great Pumpkin.
Oh my God! The world is coming to an end! Quick, grab the women and children! 😂😂😂 C’Mon Mike! Enough of the doom and gloom. 2023 was a very good year for me, my family, business partners and friends. I know you gotta put out content but stop scaring people daily.
Wait until spring and the content will change.
The issue is not the high interest rates. Its the historic low interest rates. The free money distorted the markets.
Agree. 5-7% is the norm. Sub 3% is once in a generation.
Right, soft landing in quicksand 🆘
The fed said the inflation rate is coming down, but the media translate as inflation is coming down. That’s totally 2 different things 😅
Today my son saw a sign that said zero down on a new house.
Good sign
I don't know if purchases slowed down but here in east valley of Phoenix they're still building houses like crazy. My neighborhood has huse new developments, some gated starting at the upper 400s. I don't see a slow down. Same with commercial and industrial buildings....as far as you can see down the hwy on each side for miles and miles, huuuge developments everywhere. It's very confusing.
Same thing as when J. Carter in white house only its China not Japan abd Buden not Carter
Home Depot is also feeling the effect of the lumber prices as well.
Why would the Fed lower rates ever again? The second they lower it, we'll have run away inflation again. They need to raise it up a lot more.
We are screwed either way interest rates go…
If rates continue to trend higher, small and large companies will be driven out of business. People will loose jobs and goods will become much more expensive.
If rates start to trend lower, the purchasing power of the dollar will continue to decline. The cheap and easy money will undermine the value/faith in the US Dollar and will destroy the economy.
I think the government is using MSM as a 'Lucy' setting up us 'Charlie Brown' waiting til after elections next year to yank the ball.
It will be lowered again when there is a Great Recession again. It’s pretty simple actually. And again and again and again. 😝
No
Sadly I agree with this
I'm surprised that the economy hasn't totally crashed by now. We are definitely in a recession but probably half way into a depression.
Naaaa market going up every day!
Notin sandiego
The powers that be won't let it crash until the elections are done.
@@skepticalmechanicsame thing it did when the stock market crashed in 1929 exactly the same thing......😮
I just went to the grocery store. Every person who was in front of me when I got in line to check out either paid with EBT or swiped a credit card.
Anybody who thinks everything is fine needs to put the pipe down.
I’ve always been frugal and bought second hand things and the compensation now for stuff is making it hard
The economy is doing fine. Which is the problem. We keep having strong unemployment numbers. Strong quarterly growth and record high stock market. People feel the economy is stagnated because prices are out of control. Something the government cannot change. Houses are still 35% higher than they ever should have been. Why is a 2 bed 2 bath house in London, Kentucky going for $250k when the average citizen makes $27k? Wallstreet is the problem. They turned housing into a cash machine and bam! Now it’s an all time high. But wait, what comes with a high? A crash! Gas is $2.50 right now. That is almost the cheapest I have paid for gas in my life time! But a can of Monster is $3.50. A 12 pack of Diet Coke is $9! That is insane. This is just end stage capitalism. My generation (I’m 32) tolerated this crap. Talking with teens and they are not even considering college. They don’t want any debt. They actively want the system to crash and burn so they can change it. The economy is fine, it is exactly what capitalism intended.
We strict the rule of three utility and affordibility. We will buy a house when we are surely to stay there for 10 years up , having down payment 20% up and housing paymet (including everything) be 30% or less of income. Only last one still not be achieve but we do not care interest rate go up or down - we focus on buildling career to go up.
##
US has abundant of land to build modern houses there is no need to buy OVERPRICE resale houses.
interest rates being kept artificially LOW for too long caused the housing issue. House prices NEED to crash. Rates are not high
In the past 2-3 years a lot of people bought houses for a quick resale not even doing any improvements at all... They thought they're smart to make big easy money
You are correct. The economy was headed to this day when it's time to pay the piper. There were some unforseen situations that happened to the economy on this route. But, residential property became to inflated because of institutions investment and private investment in residential property.
I agree and administrations on BOTH sides of the aisle let it go, and didn't say to the FED, "Hey this might be a problem". Too many people were getting wealthy on the ride up.
@@purevnanzad614 It costs 5+3% to SELL...Then Move to another $$$$$ 😝😝😝😝😝😝
No
This crash bro doomsday crap is really getting old.
Homes not selling in my neighborhood Ormond Beach and are being taken off the market or not accepting offers. New construction is a better deal to buy than older existing homes.
Depends on the builder. IMO DR Horton (The worst) and Lennar....you're better off being homeless or living in your car than buying that trash at any price point.
Often older homes have bigger yards. And are likely to have mature landscaping.
All the new builds in the Phoenix area are 30 to 40 miles away making a too long commute to work. No thank you.
That's not true. I was in Mesa area for Thanksgiving. Plenty of new builds all over there. What are you talking about?
@@DIVISIONINCISION Where in Mesa? Eastmark? That’s 33 miles from where I work in phoenix. Apache junction, queen creek even worse. On the west side just as bad, buckeye or Goodyear way too far.
where sister lives in buckeye..
@@michaeltorrey3603 That's why you get a job/career in Phoenix metro, not inner city Phoenix. I only go downtown when I want to visit the Art Museum, otherwise it's the suburbs where things are peaceful.
@@jimshoe402 Buckeye is a ghetto. I stay out of that area.
Permits don’t necessarily mean that those homes will be built in that specific timeline. Builders will pull permits for possible builds depending on who signs and puts down earnest money. That number could come in much lower and probably will.
If everything is in terrible shape, why are many of the home builder stock prices up over 100% and home improvement stock prices up over 10% this year? Also, if demand for housing is high and the supply is low, why is that bad for home values? Serious question… can someone help me understand?
Prices are still insane around here. There is very few new builds here. A lot of the area is national park type of land, so there is no building. Well, you can get a land lease but I personally find that stupid. I've watched listing expire here. They want way to much for the salaries here. Unless an out of state fool comes and pays those prices, they are never going to sell.
As for restaurants, we've seen some interesting things here. There's an Arby's that never seems to be open. Taco Bell runs out of food or is closed way early. The only fast food here that seems to be doing just fine is Chick-Fil-A. We've seen sandwich shops close permanently. Jimmy John's is going fine. There is definitely a noticeable difference. We've seen stores closed because " not enough employees to work". There's hiring signs up but I think the high housing prices have forced people out of the state. Plus if you look at pet listings you will see people moving and needing to get rid of pets due to relocation to other states.
One of our neighbors had is adult son and wife "move in" to this RV type thing on the side of his house. They've been there for 2 years now. I've seen some cars disappear and not return. I can see what is going on even if I don't talk to anyone. That's why when I see these fluff pieces about everything is fine I wonder how much they soul their soul to lie this hard core.
You must live in the country because none of that is happening in the Metros and cities.
Unemployment is at 3.7%. lowest in 50 years. Inflation decreasing. Infrastructure bill passed by Biden and promised by Trump . Biden did it though . Jobs!
Surpassing job creation estimates
I think it's disingenuous to say the economy is crashing because of the housing market. Way more complicated than that.
Homes not selling? Anyone who are in the "middle class" are not making enough money in the first place.
Just buying a cheap vehicle is still about the cost of 1/3 of a moderate home. And in Florida....you get it...
dude what you talking about, rent went up in NYC 10% and renters cant find apartments available.
I have skeptical feelings about the need for a central bank to moderate the economy, though not necessarily strong enough for me to vote to abolish them in case I’m wrong. However, it was the right thing to do to raise interest rates. I feel they need to keep the Fed Funds rate above 2.5% at its lowest. Ultra low interest rates fuel bad investment and debt addiction
You do have a good point.
Low rates creates another rush to buy homes
Central banks will always be needed, to issue currency and to act as a 'lender of last resort'. But, across the West, some have expanded their missions, to interfere in bond markets and, in the UK for example, to even worry about 'climate change'.
@@well-blazeredman6187 spoken like a true Banksters
The Central Bank is the Problem!
Allow the free market to set the ‘cost’ for money. Not some appointed board who control the private “central” bank.
I wonder if food home delivery services are going down now that people aren't spraying their groceries with bleach 😷
what
Those companies are here to stay. People have grown to love not having to be among the dregs while shopping. Not to mention the old people that aren't overly mobile. (My mother loves her delivery service.)
@@1969bones69 yeah but I wonder if the drivers will be paid enough considering car insurance is going up and I'm pretty sure you have to claim your car as a business car because you're doing business delivering
@@1969bones69 I'd say it's somewhat similar to home health care companies that have the gall to require their employees to use their own personal vehicles to drive the company's clients around to and from doctor's appointments,etc., The employees are probably clueless to how big of a liability they have because of that and they probably aren't adequately covered by insurance in case they get into an accident while they're driving a customer around . If they looked at it logically, they would probably make more money being a taxi driver 🚕
Realtors want the rates low, the prices high, the supply constrained, and lots of turn-over. Years of them coaching people into overpaying for homes, and now when the market starts to try to correct, and people are starting to sue orgs like NAR, you see the tears/salt flowing.
I wonder about quality of new construction they're slapping up so quickly. It may look good, but that's about it.
The whole economy of this country is built on real estate & nothing more. Gone are the days of local economies built on manufacturing jobs. That is why housing nowadays is getting so darn expensive.
Interesting point
Yep! Part of the great suburban experiment,
Thank Marxist Unions
This isn't necessarily a question about this video exactly but i love your videos and perspectives and I'm curious if you have noticed during your travels if any states or metro areas may be better off in regards to the job market during recession that would make it worthwhile buying if a good deal is found? I'm 28 so this is the first real recession as an adult that i have to face and I'm trying to make the best decisions to prepare.
Just imagine if the U.S. government had an even semi-accurate number of Americans that are currently homeless, or living in a car or RV and it's growth over the past 5 years?
Just shows how interested they are. Couldn’t care less!
Over 30,000,000 people are living in mobile homes so they're essentially homeless.
The U.S. government doesn't even consider getting accurate statistics on how many homeless, how many illegal immigrants, real number of unemployed.
Even if they did they wouldn't report it accurately. It is the Government after all. If anyone from it is speaking, they are lying.
I have never bought a new home. Those neighborhoods do not have established values like old neighborhoods do.
I don't know your Metro, where I live most people want to live in a new build community (Non-HOA), not in the "older" neighborhoods. They want new and fresh!
True but I am being surrounded by McMansions. Bring it on haha!
You've literally been wrong about everything going on 3 years now. But sure its going to be in 2024 for really reals this time. 🙄
Janet yellen in today's wall street journal said outlook is rosie. Are you gonna believe your own bank statements for her statements
She's got a face for radio
Michael I think this is one of the best videos you have put out. Here in St Johns Fl there isn't much new home construction. But the apartment building business is going crazy. Our schools are the best in Fl and we are seeing new shopping centers being built everywhere. In our golf neighborhood, houses sell fairly quickly and you would think we are still in "good times."
Yeah I don't envy you in St John's. It's already too crowded and traffic sucks
Michael, I agree your market is way over done because Florida really relies on retirees and most of them are looking for affordable living. In my area in Rhode Island, yes sales are down but I've attended 2 open houses and there were tons of traffic. There was even a bidding war. Thats happeing on reasonably priced homes but the ones that ones over 500k are still sitting on the market. I do believe like you that more inventory will be coming on the market and there will be better deals to be had, but unless unemployment substantially picks up, these prices may only fall 20%, unless the asking price is ridiculous. 30 Year Mortgages have also fallen to 6.6% now. So it will probably bring some buyers back into the market.
There lots of $300,000 homes for retirement in Florida. Most people from ages 18-54 can’t get into retirement communities, have to be 55.But maybe your parents but the home and they let you live there and save some down payment money! Of course there is areas and prices are crazy. I invested past 38 years and I sell out. I not waiting for a crash
@@KevinGaberlavage Thats true but most retirees arent looking for 300k homes, especially with interest rates and inflation there is right now. Factor in Insurance tripling, HOA fees and real estate taxes and you have yourself a recipe for disaster. Its going to take a few years for this to play out. Florida had a lot of people move there to escape very oppressive covid restrictions in there area. Now that its over, I suspect Florida will have a net exodus.
Retirees are being pushed out of FL FAST. Its being filled with cash rich northerners and work from home types. Sooner or later these people wont be able to hire anyone for anything because all the people that actually , you know..work or produce things wont live here anymore. 75% of ALL work here is low wage stuff. All the great Healthcare here......is because of all the OLD people. Chasing out all the OLD people is already having effects on the health industry here. Even the specialized doctors here in Tampa are having issues affording to live here now. I know a few. It's getting tough. And nurses...forget it.
@@1969bones69 All very good points. I agree.
I wish I bought a place a decade ago
Would have, could have, should have… what every poor man says..
Was that with a pool?
😢😢😢
Im a property manager for commercial. Life is good for now. Couldnt imagine working in residential.
Commercial? LOL!
I know the sandwich truck. They come to my facility but never on my break 😢
this is the slowest decline ever, mostly bc this admin has been careful to not advertise the decline, most people see the inflation etc, but only the movers and shakers see the buying and selling issues, although even most people are noticing thy have less money and worried about making ends meet, and rich people thinking ok we arent gonna spend or buy, unless of course they are in commercial real estate and are trying to make sure they can roll their profits into a new acquisition, or they are holding even though the variable rates are rising. Its just interesting most people see the rising prices and the struggle but deny or dont see the economy is crashing
But I can't find parking at the stores 😮
Wework is now “We don’t work”.
Sounds like condo owners will sell and buy new houses
It's been my experience condo owners are the types that didn't want, or couldn't take care of a house. Lawn, building maint etc. I doubt the majority would rush into a house. More likely Apartments (which is what condos are anyway) or Mobile Homes. Like I said that has been my limited experience with condo types.
The fed was worried wages might go up and had to act by inflating the cost of housing!
In Calif, the min wage is $20hr. Everyone here has always made good $$. In 1978 I was making $10.50hr as a meat cutter.
The Federal Reserve Board, an autonomous agency, is concerned about all sectors of the economy. But, to say that they are responsible for inflating the residential property market does not line up. The Fed kept the Federal Funds Rate artificially low after the 2008 collapse of the financial institutions. That is a way inflate the economy by pumping money into the economy. The influx of institutions investment and private investment in residential homes inflated the housing market. That influx of money created a greater demand, and a relative low supply of homes because those bought homes were taken off the resell market.
Excellent point re; interest rates. Yes. Historically low but high with high prices.
Why are the prices of luxury properties over one million dollars still going up?
Because contrary to popular belief, most of the people with that kind of money are some of the dumbest with said money. PT Barnum and all that. You could attach "Luxury" to a bag of dog crap..and someone would think it special enough to buy it.
@@1969bones69 I think that they shopped around and got the best property they could find for a given price . No one knows when or if prop ties in their city in good neighborhoods will go down in price.
Houses in the ghettos of Los Angeles sell for over a million dollars but at least mortgages stay the same price unlike rents and mortgage interest is deductible.
Need to keep the rates up to drive greedy sellers and companies that buy homes to rent out of the business.
This reminds me of the movie "The Matrix", what is real and what is fake?