If interest rates go to 8% they will likely stay there for an incredibly long time, the Fed isn’t going to lower them drastically again otherwise they’re back where they started
These news videos are always a trip, like you're really gonna ask and believe the sales people (yes realtors are sales people IDC) what they think the market is like? They're sales people, they're always gonna present the bright side! With a bright smile I might add as they take their percentages from you either way this swings.
That's why I rely on data. Look at the drop in home builders stock since November. Sure, a little strength right now, but if they fall past their June lows, expect lower home values. Right now I don't expect a crash, just a long pull back.
Great point. I became a realtor back in 2005/ 2006 and remember doing the exact thing, not because I wanted to rip people off but because I had blinders on to the market and refused to believe the reality of what was going on. Purchased a home myself. By 2007 /2008 everything I owned and everyone I sold to was in foreclosure. :( I am no longer a realtor and work in healthcare now but sometimes think back and blame myself for not being better informed.
Geese, realtor mafia cartel at it again but why would they get real jobs ? They live in fantasyland and that’s how they make their living . make some people rich makes some people poor . In the end they need to make a living, but their pawns in a bigger Ponzi scheme.
Lol. It’s going to be a implosion like 2007. This bubble was bigger than the last one except this time there will be no bailouts because they can’t print money like last time since inflation is so high now
I can hardly believe the insanely high prices for utter crap old houses in California. I moved to Virginia a couple of years ago and bought a 10 year old house on 5 acres, 2800 square feet, 4 bedroom, 4 bath. $383,000. It's a palace compared to the garbage selling for over a million in California.
Yeah I'm assuming rural Virginia because you're paying a lot more than $383k on 5 acres if you are in the DMV. Rural Virginia and CA are apples to oranges.
yeah but you have to live in crap weather. freezing cold and burning hot. Not to mention limited everything there. limited food, limited cultures, limited rights.
...??? that's not how percentages work: a 5% rate is a 5% rate regardless of the price. ~5% is a very reasonable rate for any type of loan. Has nothing to do with what one can or can't afford.
@@TristanMorrow Oh? What’s the difference in monthly payment on a $1m loan at 3% vs 6%? Maybe I’m doing bad math, but it sounds a lot more painful than it would on a $300k loan.
She is twisting herself into knots pretending she likes the house for the camera. You can tell from née nervous laugh this lady is about to cash in her current home and definitely not throwing that money on a million dollar dump like this. That’s how people that lie speak. That guy waving his hands like a lunatic is also fidgeting like crazy. They all know they’re talking garbage.
6% fixed rate with 8-9% inflation...seems kind of free to me. And what's her condo going to be worth in a year? In 10 years? Those saying -40%, -80%....good luck with that.
@@MrWaterbugdesign so… you’re assuming interest rates will stay as high as it is now, despite the historical average since 1914 being 3.2%, but houses won’t drop in price? Are you basing the house price change on… history??
In the last two months, the prices have dropped 10 to 20ish percent. Time to shop. I just bought in Berkeley. Very happy. Am I for sure prices won't drop further near term? No I'm not sure. But long term is fine. One thing though, there's much less competition now. You do not want to be in multiple offers situation
always funny when the agents are telling you everything is fine, just buy buy buy. How else do they get commissions right. be careful. don't rush to buy. these old obsolete properties are not worth $1M. Remember these are supposed to be depreciating assets.
"depreciating asset" is an accounting term. Houses don't actually depreciate. A person can buy a home, rent it and depreciate it against rent until it's 100% depreciated. Doesn't mean it's worth $0. They can sell the property to another person who can start depreciating it again. Do you really not understand any of this? Or you think word play is just the cleverest thing ever? Do you have any idea how long morons having been saying Bay Area properties "are not worth..."? At least 75 years and likely much longer. Someday the sun will supernova and these momos will be correct.
I’ve heard a lot of BS from real estate agents, but “almost free money” tops it like flies on poop. The market is still in fluctuation, buy now and you will be upside down before you have a chance to move in. She may think it was great advertising to be on the news, but personally selling a home and purchasing another for the world to see right now, says more about her professional abilities.
It doesn’t matter if price is high or low, interest rate is high or low. Realtors and mortgage companies always say it’s best time to buy a house, don’t wait. They always benefit from people buying homes.
Family friend bought a house in California. I saw pictures and guessed 1.2 million knowing CA real estate is absurd. This house in rural America on a few acres would be $190 grand. A small 1960’s rambler. It was 1.7M and not even remodeled. They are in their 30’s I have no idea how they afford that.
Gee, you should see the price of a few acres in NYC or Tokyo if you want to be shocked. Not everyone wants to live on a few acres in Mississippi. And some people have earned enough to afford to buy into high demand areas.
Wife and I make $230k with low debt, and barely qualify for a shitbox like this. Everyone around us has Teslas or some other nice car, but live in a $3.2k/month 650sqft apt. Moving every year blocks away to avoid the 10% increase in rent that comes every time. At the open houses we look at, the only other viewers are several Chinese families, each with a translator, so appearing to be foreign, and the only people who have successfully bought around me had help from family.
@@forsupernovae2401 I feel the same. Not saying I don’t, but it’s literally right there, like 1.1m. And a payment of like $7,200/month with the new interest rates. The risk is high with these loans, and unsustainable on one 6-figure income, so they’re stingy with things. Just trying to give some perspective on what life is like in the Bay Area. Most people I know just gave up on buying a home here and moved or moved on mentally.
They're qualifying people way too high. My wife and I make similar and brokers have gotten bullish with qualification almost qualifying people at 60 percent of what they make per month.
5 percent is not a big drop but minor correction. They can live farther away but corporate companies are hawks about their productivity thus force workers back into office.
It needs to drop 30% in total just to break even from the start of pandemic. Anything less than 30% is just profit above 100% since housing prices rose 30% from 2019.
Yes , I was thinking 30 - 40 % overpriced. Its gonna be a long winter for sellers. In my city , Richmond home builder just dropped their price from 600k to 500k last month.
Let the market burn… people were so stupid to pay over appraisal and waive contingencies… 😂 SF has price cuts so low sales prices are below 2021. This is going to be epic when we revert back to the mean…
Yeah, slow it down people. Keep your money for emergency use. Stop making fake news and stop telling people to buy homes. Not everyone makes that much money. What job is worth that much money?
Yeah. Plenty of $250k/yr jobs in Mississippi. Yeah it's super hot and humid in summer with tons of mosquitoes, chiggers, ticks and black flies so that's nice. And winters are cold. And you won't be distracted by lots of choices of things to do. And you get to talk to plenty of morons. And then in 10 years your house will be worth $23 most instead of $600k more. Totally better off.
@@MrWaterbugdesign You might be if you bought 4 other houses and rented them out. And in MS the houses will be closer to $100K. BUT If you have to choose between owning a single family home somewhere else versus sharing an apt then it is an easy choice.
I don’t see how people can afford a house right now. Back in 2008 my brand new house equaled to 2 years of our income, our house is now worth 5 years of our income.
No business can survive in California. In order to hire anybody, a company has to pay an employee enough so that they afford mortgage on a $1.8 mm home. It’s not sustainable. That’s why all companies are fleeing to texas and Arizona. It’s not all bad California policies. It’s all about home affordabilities for the employees.
@@JBoy340a Jerry. Austin has always been expensive. Most Texans try to avoid living there. It’s mainly the Californian that think highly of Austin. If you want to open a real business you should do it in Houston or Dallas.
well, that house is in a top rated school district. that itself will save you around $30k/kid in pvt school tuition. it will sell easily to the right buyer.
...er, never? They're doing quantitative tightening (QT), officially since July if anyone was paying attention. QT seems scheduled to be policy for the next 14 years. If you cared about the subject you could just look at the Fed's website and actually read and see what they are doing, instead asking in an extremely random comment on the YT.
I agree there could be a few percent drop. But these tiny drops are so hard to even notice because each property is so different. But of course comments are full of people who can predict tops and bottoms of markets. The most highly trained and experienced very intelligent professionals can't...but TH-cam commenters of course can. It's like a big sign "I'm As Dumb As a Post". Wishing something to happen is unlikely to change outcome.
It will go down another 10%, but keep in mind that 10-20% drop is from the peak. So it is expensive base to begin with. While you wait, rents is gonna increase by another 10-15% and when interest goes down in 2024, bidding war all over again. Best of luck.
its almost free money to borrow if you work for Google or Apple.... First time homebuyer price at over 900K? First Time homebuyer prices in Texas used to be around 250K Now its $350K for a first time homebuyer price and I can't even afford that.....
@@JBoy340a yep. I refi my $328K to a 15 years 2.625% mortgage in Dec 2020 and I am on pace to pay off by Dec 2022. 4 more payments and I am 100% debt free.
and the weather is PRICELESS and the anchor or the sales man didnt even say it.... thts why peopoe LOVE living there. the weather... Cali weather beats any other weathweer period.
From the news Hollywood and LA should be dropping faster than anything, along with Phoenix Philly and Chicago. In my area houses went up as much as double with people moving out of New York City in the pandemic,. No deals here,
A million dollar home isn's expensive at all for a tech worker living in the bay. You can tell whether a home is cheap or expensive relative to the avg salary of the population that lives in that area.
some people work at subway making $95 a day after there 8hr shift your talking about 1/100th of population in tech so theres 10,000,000 people and 100,000 in tech
Here we go again. It's using the worthless median house price statistic again. Try using USEFUL statistics like average or even better an apple to apple comparison like price per square foot along with breaking it out by area. Prices haven't really dropped much if at all.
Average is a worthless statistic when it comes to housing. Because of the upper echelon of houses pulling up the average. When you take an average you're also including 20-50+ million dollar homes. When it comes to real estate people use median
You could give me that house for free, and I still wouldn't live in San Francisco, or any of the other bigger cities in California. What a dumpster fire those places are.
Banks will buy 'em up, and yet, the poor will stay that way, unfortunately. Personally, I will NEVER be able to purchase a home. Never. I'll be dead in about 6-12 years, and I've never been able to afford anything, sooo... there's no possibility that it will change. No reason to even try anymore, lol. 😂🤣😂
people are under estimating the damage that is slowly coming from a once in a century health crisis but that figures because theres only about 20 people alive left in the whole world that were adults in 1929s depression so what can i expect
If it falls more the wall street investors might grab it or the black rock corp. Might buy it all. Remember now guys location, location, location ok? Now go for it!
Mortgage Interest rates are not skyrocketing like in the 80s. The us would fold if fed interest rates skyrocketed like that because if the insane debt we are in as a country. We wouldn’t even be able to make the interest payments let alone have enough to run the govt or pay ss or Medicare pymts. Don’t listen to people like this lady saying rates are still historically low - they are higher than they were in 2006 when the fed rate was a lot higher than it is now. Something’s not right. Don’t get crushed buying at the top. Let prices stabilize.
@@teole6364 no man, these people just bought a house earlier than you that's all. I have an engineer buddy of mine his house is worth 1.5 million, he bought the house about 20 years ago for 350k ish.
A software engineer in the Bay Area earns about $200k with salary and bonuses. So about say 18-24 months to save the down payment on a $1m home with a mortgage payment about $5000/mo. After state and Fed income that leaves them about $6000/mo for spending on other things like coffee. But software engineer sure isn't the only high paying position in these companies. Managers make about the same. However many companies will front the down payment for top employees. They want them happy. Your next question..."How are CA companies able to pay those salaries?" Take a company like Apple...take the company net income and divide by the number of employees and you get about $700k/yr each employee is earning for the company. But obviously not all employees contribute the same. A software engineer or manager might be earning the companies in the $5-10 million range each year. So paying them $200k is a deal. Not saying these employees are 100% responsible, it takes a lot more. But without that piece the earnings aren't there.
My dead mother in law left my spouse her house that she paid $30,000 in 1969. The house is now worth $1.2 million. That's a 365% return over 50 years . So about 7% a year. Not bad.
“The interest rate is low when compared to the history of interest rates.”
Conveniently ignoring all time high prices.
If interest rates go to 8% they will likely stay there for an incredibly long time, the Fed isn’t going to lower them drastically again otherwise they’re back where they started
Don’t you love the interest rates are historically low quote, All the while forgetting to mention prices are at historically high unfathomable prices
Yup though the same thing… peak insanity prices.
But prices are high still
Lol these realtors are clueless. Literally anyone can do their job
Asking a Real Estate Agent when it’s the right time to buy is like asking an alcoholic when it’s time for another drink…
Well said
🤣
These news videos are always a trip, like you're really gonna ask and believe the sales people (yes realtors are sales people IDC) what they think the market is like? They're sales people, they're always gonna present the bright side! With a bright smile I might add as they take their percentages from you either way this swings.
That's why I rely on data. Look at the drop in home builders stock since November. Sure, a little strength right now, but if they fall past their June lows, expect lower home values.
Right now I don't expect a crash, just a long pull back.
Great point. I became a realtor back in 2005/ 2006 and remember doing the exact thing, not because I wanted to rip people off but because I had blinders on to the market and refused to believe the reality of what was going on. Purchased a home myself. By 2007 /2008 everything I owned and everyone I sold to was in foreclosure. :( I am no longer a realtor and work in healthcare now but sometimes think back and blame myself for not being better informed.
There’s 2 people papa always said never believe, car salesmen and realtors
Geese, realtor mafia cartel at it again but why would they get real jobs ? They live in fantasyland and that’s how they make their living . make some people rich makes some people poor . In the end they need to make a living, but their pawns in a bigger Ponzi scheme.
Lol. It’s going to be a implosion like 2007. This bubble was bigger than the last one except this time there will be no bailouts because they can’t print money like last time since inflation is so high now
That lady's laugh at the end was the only truth that came out of her mouth.
She probably thought her sale pitch was good
She said today's rates relative to history is like free money.
@@kabysummit5801 Relative to WWII, nothing is a crisis. Enjoy your life.:)
Greedy and mad
I can hardly believe the insanely high prices for utter crap old houses in California. I moved to Virginia a couple of years ago and bought a 10 year old house on 5 acres, 2800 square feet, 4 bedroom, 4 bath. $383,000. It's a palace compared to the garbage selling for over a million in California.
Yeah I'm assuming rural Virginia because you're paying a lot more than $383k on 5 acres if you are in the DMV. Rural Virginia and CA are apples to oranges.
Yeah but Virginia fucking sucks
See how easy it is to criticize
yeah but you have to live in crap weather. freezing cold and burning hot. Not to mention limited everything there. limited food, limited cultures, limited rights.
I agree!! It's insane
Only in CA, is a million dollar home considered a good "first time buyer" home LOL
The 425 thousand dollar house I sold in Las Vegas would easily sell for close to a million in California. But the old saying goes "location location".
@@milt6208 exactly. That home in Newport Beach can easily sell at $5M. Location location and location.
These people truly have a low IQ
@@jml9550 well said. Location has always driven prices in real estate.
@@JBoy340a yep. That’s fact of life. Same as London, Paris, Tokyo, SF, Manhattan….you name it.
She’s just wrong. It’s not “free money” when that interest rate is applied on prices that we’ve never seen before.
...??? that's not how percentages work: a 5% rate is a 5% rate regardless of the price. ~5% is a very reasonable rate for any type of loan. Has nothing to do with what one can or can't afford.
@@TristanMorrow Oh? What’s the difference in monthly payment on a $1m loan at 3% vs 6%? Maybe I’m doing bad math, but it sounds a lot more painful than it would on a $300k loan.
She is twisting herself into knots pretending she likes the house for the camera. You can tell from née nervous laugh this lady is about to cash in her current home and definitely not throwing that money on a million dollar dump like this. That’s how people that lie speak. That guy waving his hands like a lunatic is also fidgeting like crazy. They all know they’re talking garbage.
6% fixed rate with 8-9% inflation...seems kind of free to me. And what's her condo going to be worth in a year? In 10 years? Those saying -40%, -80%....good luck with that.
@@MrWaterbugdesign so… you’re assuming interest rates will stay as high as it is now, despite the historical average since 1914 being 3.2%, but houses won’t drop in price? Are you basing the house price change on… history??
Home prices increased by 30% during pandemic, so to return to pre-pandemic “normal”, prices need to fall by 30%, too.
It's a double whammy... sky high price and interest rate. Even if it drops by 30%, it still costs more to own one.
They already have fell atleast 20% from last year some of my friends are upside down! Their Down payments have evaporated:(
@@AR-me9jy Yeah I bet! If they bought at the overinflated price in the last 12 to 18 months.
In the last two months, the prices have dropped 10 to 20ish percent. Time to shop.
I just bought in Berkeley. Very happy.
Am I for sure prices won't drop further near term? No I'm not sure. But long term is fine. One thing though, there's much less competition now. You do not want to be in multiple offers situation
@@AR-me9jy who cares if they dnt need to sale being upside down ain't shit boi
Starter home at $998k. Yeah... you can keep that house!
Oh seriously? And I thought you were about to buy it. So disappointing.
@@MrWaterbugdesign 🤣
Lmfao burnt asf w those prices b
My neighbor’ home just sold their for $1.2M. There are still buyers out there.
always funny when the agents are telling you everything is fine, just buy buy buy. How else do they get commissions right. be careful. don't rush to buy. these old obsolete properties are not worth $1M. Remember these are supposed to be depreciating assets.
"depreciating asset" is an accounting term. Houses don't actually depreciate. A person can buy a home, rent it and depreciate it against rent until it's 100% depreciated. Doesn't mean it's worth $0. They can sell the property to another person who can start depreciating it again. Do you really not understand any of this? Or you think word play is just the cleverest thing ever?
Do you have any idea how long morons having been saying Bay Area properties "are not worth..."? At least 75 years and likely much longer. Someday the sun will supernova and these momos will be correct.
This guy sounds like a realtor ^^
@@MrWaterbugdesign you’re obviously lacking a brain. They just said prices are falling.
I’ve heard a lot of BS from real estate agents, but “almost free money” tops it like flies on poop. The market is still in fluctuation, buy now and you will be upside down before you have a chance to move in.
She may think it was great advertising to be on the news, but personally selling a home and purchasing another for the world to see right now, says more about her professional abilities.
True that
She was the buyer, not the agent. Right in the beginning she says yes I’m buying and selling just shoot me. The guy was the agent.
Lets see a crime graph for the same time period. Put the two graphs right on top of each other.
It doesn’t matter if price is high or low, interest rate is high or low. Realtors and mortgage companies always say it’s best time to buy a house, don’t wait. They always benefit from people buying homes.
Up 30% now down 5% is still a net 25% increase in less than 2 years. Pretty ridiculous to say the market is cooling.
If it's going to drop, it'll be another 5-10% tops.
The problem is that it just started, wake me up in a few months.
Family friend bought a house in California. I saw pictures and guessed 1.2 million knowing CA real estate is absurd. This house in rural America on a few acres would be $190 grand. A small 1960’s rambler. It was 1.7M and not even remodeled. They are in their 30’s I have no idea how they afford that.
Simple
1. They had rich parents
2. They worked hard in their 20s and now have $1M in cash.
Well you asked. 🙂
Likely inheritance or parents helping them.
Gee, you should see the price of a few acres in NYC or Tokyo if you want to be shocked. Not everyone wants to live on a few acres in Mississippi. And some people have earned enough to afford to buy into high demand areas.
They are probably making $800k a year
DEBT, thats how
A 985 sf home built in 1954 going for 1M?? WTF?
Not exactly. The home is selling for $150k. The land it's sitting on is selling for $850k. But it's a package deal.
@@MrWaterbugdesign but still, according to Zillow it's a 5000 sf lot, so only about 50'x100'.
@@MrWaterbugdesign That was awesome!
@@MrWaterbugdesign LOL exactly right! ITS THE LAND THAT HAS THE VALUE .... not the dang building sitting on it
That's the bay area for you🤷🏽♀️
Over priced ghetto toilet.
With just under a million?!?! Wtf that's like a 300k home in dallas.
Wife and I make $230k with low debt, and barely qualify for a shitbox like this. Everyone around us has Teslas or some other nice car, but live in a $3.2k/month 650sqft apt. Moving every year blocks away to avoid the 10% increase in rent that comes every time.
At the open houses we look at, the only other viewers are several Chinese families, each with a translator, so appearing to be foreign, and the only people who have successfully bought around me had help from family.
you should be able to qualify lol...
And your point? What does it matter to you what other people drive?
@@forsupernovae2401 I feel the same. Not saying I don’t, but it’s literally right there, like 1.1m. And a payment of like $7,200/month with the new interest rates. The risk is high with these loans, and unsustainable on one 6-figure income, so they’re stingy with things.
Just trying to give some perspective on what life is like in the Bay Area. Most people I know just gave up on buying a home here and moved or moved on mentally.
@@MrWaterbugdesign you missed the point, but that’s okay.
They're qualifying people way too high. My wife and I make similar and brokers have gotten bullish with qualification almost qualifying people at 60 percent of what they make per month.
5 percent is not a big drop but minor correction. They can live farther away but corporate companies are hawks about their productivity thus force workers back into office.
Imagine 5% every month for the next 12 months
Ridiculous high prices for a simple house.
Not for people with the money who enjoy living there.
Why people buy house at Newport Beach or Beverly Hills is beyond me. Oh, they have money.
It needs to drop 30% in total just to break even from the start of pandemic. Anything less than 30% is just profit above 100% since housing prices rose 30% from 2019.
Yes , I was thinking 30 - 40 % overpriced. Its gonna be a long winter for sellers. In my city , Richmond home builder just dropped their price from 600k to 500k last month.
Let the market burn… people were so stupid to pay over appraisal and waive contingencies… 😂
SF has price cuts so low sales prices are below 2021.
This is going to be epic when we revert back to the mean…
Bingo
There’s 2 people papa always said never believe, car salesmen and realtors
Right when the Chinese economy is on the brink of collapse, home prices in the USA start to fall. Coincidence?
Coincidence.
When interest rates go up, home prices go down. When interest rates go down, home prices go up.
Not as much as you would think.
@@hoapres Correct. It's not like prices go down enough to offset rate increase. Homes have actual value unlike BitCoins.
When interest rates go up, the rate of growth in home prices slows. When interest rates fall, the rate of growth in home prices rises.
Interest rate historically low while home prices is at all time high. Don’t kid yourself lady 🤥
1 year later, new title “Home buyers regret their decision to buy home last year”
Excellent. And it’s just getting started
Yeah, slow it down people. Keep your money for emergency use. Stop making fake news and stop telling people to buy homes. Not everyone makes that much money. What job is worth that much money?
Given the number of people currently living in $1m+ homes about 11,480,000 jobs are worth that.
With No water how much is the house worth????
Lady and the realtor do not know what is happening in the broader economy. We are going into a server downturn. Worst time to buy.
"One thing about Santa Clara I never could stomach: all the damn vampires."
Death by stereo!
Exactly lol
I called it. Homes will drop 5-10 percent but no more.
Even it drops 20% from peak is still insane.
$8000 a month mortgage payment
Not if I pay ALL CASH.
Depends on the down payment
@@obijuankenobi420 What's a down payment ? It is called ALL CASH.
@@hoapres I put a down payment on my Bay Area home.
@@obijuankenobi420 I didn't. I wrote a check.
For a $200K down payment in Santa Clara county, go somewhere else and buy a house for ALL CASH. You will be better off.
Yeah. Plenty of $250k/yr jobs in Mississippi. Yeah it's super hot and humid in summer with tons of mosquitoes, chiggers, ticks and black flies so that's nice. And winters are cold. And you won't be distracted by lots of choices of things to do. And you get to talk to plenty of morons. And then in 10 years your house will be worth $23 most instead of $600k more. Totally better off.
@@MrWaterbugdesign You might be if you bought 4 other houses and rented them out. And in MS the houses will be closer to $100K. BUT If you have to choose between owning a single family home somewhere else versus sharing an apt then it is an easy choice.
That place will have no jobs that pays 300k a year
@@MrWaterbugdesign exactly, unless I am retired what am I suppose to do for a living in Mississippi?
Well 5% isn't 10% the lady just tries to confuse... up is down ...down is up ...cheap is more ...than you have
Is it t as bad as the news makes it out to be?
“Just UNDER 1M” wtf😂😂😂
KRO N has local infomercials. Guess KPI X is headed that way now too. News only please
I don’t see how people can afford a house right now. Back in 2008 my brand new house equaled to 2 years of our income, our house is now worth 5 years of our income.
Down 5% is not enough. Bay area housing needs to drop 60% to be affordable.
I'm even poorer than you so it needs to drop 87%. And of course because I want that to happen it will.
@@MrWaterbugdesign haha exactly. While we are at it, I want 200% increase in salary as well and gas price should drop another 50%.
“This is nothing it’s almost free money” this is why you should never listen to a real estate agent about a god damn thing.
Home and apartment prices need to drop by 50% in all the Bay area.
And while we are at it, why not ask for 100% increase in salary.
No business can survive in California. In order to hire anybody, a company has to pay an employee enough so that they afford mortgage on a $1.8 mm home. It’s not sustainable. That’s why all companies are fleeing to texas and Arizona. It’s not all bad California policies. It’s all about home affordabilities for the employees.
Texas is not cheap where most of the good paying jobs are. $1+ M is pretty common in the Austin area.
@@JBoy340a Jerry. Austin has always been expensive. Most Texans try to avoid living there. It’s mainly the Californian that think highly of Austin. If you want to open a real business you should do it in Houston or Dallas.
well, that house is in a top rated school district. that itself will save you around $30k/kid in pvt school tuition. it will sell easily to the right buyer.
Yep. My neighbor just sold his for $1.2M, little starter home in a decent school district.
How long until the government manufactures a low inflation report & restarts quantitative easing again?
...er, never? They're doing quantitative tightening (QT), officially since July if anyone was paying attention. QT seems scheduled to be policy for the next 14 years. If you cared about the subject you could just look at the Fed's website and actually read and see what they are doing, instead asking in an extremely random comment on the YT.
@@TristanMorrow Don't bet on it because with $27 Trillion of debt servicing that at 5%+ is going to hurt.
How the view from under your bed?
Still very expensive. Home prices will go down more before it goes up again. Be patient if you want to buy.
I agree there could be a few percent drop. But these tiny drops are so hard to even notice because each property is so different. But of course comments are full of people who can predict tops and bottoms of markets. The most highly trained and experienced very intelligent professionals can't...but TH-cam commenters of course can. It's like a big sign "I'm As Dumb As a Post".
Wishing something to happen is unlikely to change outcome.
Nope. They won’t go down
It will go down another 10%, but keep in mind that 10-20% drop is from the peak. So it is expensive base to begin with. While you wait, rents is gonna increase by another 10-15% and when interest goes down in 2024, bidding war all over again. Best of luck.
its almost free money to borrow if you work for Google or Apple.... First time homebuyer price at over 900K? First Time homebuyer prices in Texas used to be around 250K Now its $350K for a first time homebuyer price and I can't even afford that.....
It is all about location. Austin area is $500K for a starter home in a decent neighborhood. In Miss same size house is $75K.
Bay Area market is one big Ponzi sheme. Fear of missing out is a powerful motivator
You can always refinance in the near future to lower your interest rate. You can't lower the price you pay after you've paid it.
Sure. Then you mortgage will reset for another 15-30 years.
And you can make additional principal payments. We did that and a small amount over time really cuts down the mortgage length.
@@JBoy340a yep. I refi my $328K to a 15 years 2.625% mortgage in Dec 2020 and I am on pace to pay off by Dec 2022. 4 more payments and I am 100% debt free.
1.5 million for first time home buyer? Am I missing something?
Yes you you missing something, money.
2:05 with an asking price just under a million 😅
For a 3 bedroom 1 bath house? Still very overpriced
Exactly 💩
Overpriced according to whom? It is what the market will bear. A Ferrari cost $500K and is it overpriced?
Moved Alabama by a house for $30,000 and who needs to work at that rate
and the weather is PRICELESS and the anchor or the sales man didnt even say it.... thts why peopoe LOVE living there. the weather... Cali weather beats any other weathweer period.
People are pessimistic and it’s still over priced.
From the news Hollywood and LA should be dropping faster than anything, along with Phoenix Philly and Chicago. In my area houses went up as much as double with people moving out of New York City in the pandemic,. No deals here,
A million dollar home isn's expensive at all for a tech worker living in the bay. You can tell whether a home is cheap or expensive relative to the avg salary of the population that lives in that area.
some people work at subway making $95 a day after there 8hr shift your talking about 1/100th of population in tech so theres 10,000,000 people and 100,000 in tech
Over a million yet you called it a free money.. am glad you’re that wealthy Madame
Referring to the mortgage...obviously.
Less in total mortgage but more in interest rates, it's almost the same or worst to buy a house right now
Here we go again. It's using the worthless median house price statistic again. Try using USEFUL statistics like average or even better an apple to apple comparison like price per square foot along with breaking it out by area.
Prices haven't really dropped much if at all.
Exactamundo!
...this one looks like about 5000 sqft. $1m fair price?
Average is a worthless statistic when it comes to housing. Because of the upper echelon of houses pulling up the average.
When you take an average you're also including 20-50+ million dollar homes. When it comes to real estate people use median
@@dontknow2 They use Median only because that is the longest tracked statistic. It isn't worth much.
Average better than median??? Somebody failed Economics 101.
Where are all social media realtors giving their advices that a recession will never happen ??
You could give me that house for free, and I still wouldn't live in San Francisco, or any of the other bigger cities in California. What a dumpster fire those places are.
OK. BUT enough people will.
Okay but this house isn’t even in San Francisco it’s Santa Clara in the South Bay.
And those cities thank you sir. Glad you're staying in Mississippi...it's a fine place.
that small ugly house for 1 million dollars you got to be kidding me🤕🤕🤕
Yeah, busted. Totally kidding you. How'd you figure it out?
People can’t afford these house are sour. That Ferrari cost what $400K, you gotta be kidding me :)
Crime and water concern's are to blame.
Duh they pulling rug so you can't move ..and people who took the 5% will have to wait till it goes back to 2% to even out
2:42 not going to be free money when you get at 6% mortgage rate and inflation comes back down to target levels.
Asking realtor who have an agenda if the frenzy is over... Go ask Scott Walters. He's a realtor with a conscious.
Interest rates are going to raise that final ticket before getting to principal balance. House will end up costing way more then anyone is saving
Folks can work from home. Home is where you hang your hat not replace windows and catalytic converters.
Yes, all of CA is exactly like what you see on social media.
Only half of what you see and none of what you here.
Cat theft is higher is some other states ya know.
still too expensive..don't know who in their right mind would pay 1.5M for a 3bd 2 ba house in built in the 1970's or earlier, especially in San Jose.
Nope ! Blame institutional investors
Even with the decline the prices are higher than one year ago and .much higher than three years ago
Banks will buy 'em up, and yet, the poor will stay that way, unfortunately.
Personally, I will NEVER be able to purchase a home. Never. I'll be dead in about 6-12 years, and I've never been able to afford anything, sooo... there's no possibility that it will change. No reason to even try anymore, lol. 😂🤣😂
is that lady high?
people are under estimating the damage that is slowly coming from a once in a century health crisis but that figures because theres only about 20 people alive left in the whole world that were adults in 1929s depression so what can i expect
Good. Might actually make the area affordable.
I guess living in Campbell she can say that these high interest "are nothing, almost like free money"
If it falls more the wall street investors might grab it or the black rock corp. Might buy it all. Remember now guys location, location, location ok? Now go for it!
Mortgage Interest rates are not skyrocketing like in the 80s. The us would fold if fed interest rates skyrocketed like that because if the insane debt we are in as a country. We wouldn’t even be able to make the interest payments let alone have enough to run the govt or pay ss or Medicare pymts.
Don’t listen to people like this lady saying rates are still historically low - they are higher than they were in 2006 when the fed rate was a lot higher than it is now. Something’s not right. Don’t get crushed buying at the top. Let prices stabilize.
Imagine selling and buying
Who cares about 5%? Still can't afford a $1M home or $950,000 home
How are Californians able to buy these houses? Are they all millionaires over there?
yup-come join
Yes they are. Santa Clara county has an abundance of people with over $1M in cash.
@@hoapres man I worked as engineer in Palmdale. Not even close to buying a house like that. I must do something wrong
@@teole6364 no man, these people just bought a house earlier than you that's all.
I have an engineer buddy of mine his house is worth 1.5 million, he bought the house about 20 years ago for 350k ish.
A software engineer in the Bay Area earns about $200k with salary and bonuses. So about say 18-24 months to save the down payment on a $1m home with a mortgage payment about $5000/mo. After state and Fed income that leaves them about $6000/mo for spending on other things like coffee.
But software engineer sure isn't the only high paying position in these companies. Managers make about the same.
However many companies will front the down payment for top employees. They want them happy.
Your next question..."How are CA companies able to pay those salaries?"
Take a company like Apple...take the company net income and divide by the number of employees and you get about $700k/yr each employee is earning for the company. But obviously not all employees contribute the same. A software engineer or manager might be earning the companies in the $5-10 million range each year. So paying them $200k is a deal. Not saying these employees are 100% responsible, it takes a lot more. But without that piece the earnings aren't there.
only 5% dropped? how bout drop another 25% for all the crazy prices for the last few years. I left SC in 2004.. glad I did.
Come back we miss you so
Much
still too expensive
...for me.
Just under a million 😳😳whaat
With all the disasters it not worth it
So far...pretty worth it.
@@MrWaterbugdesign wait until little big thing called earthquake
Oh love, but it is. And it’s not the medias fault. The buying craze had to crash. And it did. Sorry
Asking a Realtor if prices are falling is just asinine. They are in the business to make commissions.
Imagine buying during the peak 🤦♂️
People just asking to much for a house that’s not worth it. It should happen again like 2010
My dead mother in law left my spouse her house that she paid $30,000 in 1969. The house is now worth $1.2 million. That's a 365% return over 50 years . So about 7% a year. Not bad.
Compounded annually.
Yea right! Who are they fooling
Not you. Way too clever. Now pay your rent.
Because it is the most overvalued housing market .
I have zero sympathy for anyone willing to pay over $1m. Go ahead. Burn your money. It’s so excessive it makes me sick
1:38 i feel bad for this guy, being forced to reverse-speak and secretly crying on the inside.
There's no bright side to buying a house in that area.
"Low prices" but high interest rates...
Bay area is gonna flood in this century anyway so might not be a good idea to buy a home to live in within 40 years.
1 million for a shack fk that
Correct. But yeah, know you can't understand.