Corporations get preferred lending rates (lower costs for scale), than you and I. Capitalism, some say, but it is not, because capitalism requires sound money. Amos 8
It is not the corporations, but the govt has increased the property tax a lot, insurance cost increased a lot, labor and matarial cost, evictions, etc.
We peaked in the summer of 2022. Idk why ppl are so surprised lol. Never in history is it “normal” for homes to double in just 2 years. When it takes decades.
Agree but "peaked" implies that home prices have to drop from here. They may simply stay flat until the time that doubling of prices would be considered "normal" (10+ years from now).
Millions of Americans are grappling with a worsening rental crisis, driven by rising rents, stagnant wages, inflation, and the growing unaffordability of housing. As a result, many are struggling to save, and homeownership-once key to building wealth and ensuring financial stability-is becoming increasingly out of reach for the middle class. The dream of owning a home is fading for more people as the situation worsens.
I'm 62, and rising prices have derailed my retirement plans . I worry that today's economic conditions are more challenging than ever. The stock market's unpredictability, coupled with reduced income and soaring inflation, makes me anxious about having enough for retirement.
Working with a fiduciary advisor has been instrumental in navigating market uncertainty. Their advice on risk management and hedging has been crucial in growing my retirement savings to nearly a million. I've learned how to diversify, manage risk effectively, and adapt to market fluctuations. Thanks to their guidance, I feel much more confident about my financial future.
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Great conversation! When I grew up in Massachusetts in the 70s the real estate sky rocketed but wages did not. Then people realized both parents need income to live! Now both parents work and together they can’t afford the rent or the house ( plus insurance and taxes). However the rent and expenses keep going up. We need stability. We need portable mortgages, so I can drag my current % with me to the downsized home or I am never selling my 4/3 house! We need less expensive 10/31 exchanges and mortgage portability and then inventory would increase and housing prices would dip! I am trapped fiscally in my paid off house because moving to a smaller home would cost so much more in terms of taxes alone!
What y’all are not talking about with these older homes is renovation costs. Sell a 1980s home for 400k, you have to put 100+K into it for renovations to bring it up to modern standards.
@DarylBriggs-qw1iq 💯 percent, but they could be important in showing how competitive and startup businesses compete. Simply a model that will always work with an adequate product and service combo.
Part of the issue is assuming you "have to" do renovations. The other part of the issue is assuming you need to pay someone else to do a renovation. I've saved hundreds of thousands doing my own renovations and I'm a dope with a white-collar desk job and zero professional training in the trades. Most of it is relatively straightforward and can be accomplished with TH-cam, good tools and some patience. If you aren't comfortable with one aspect, like electrical work, outsource that part.
It used to be you bought a home “as is”. There were two options. You bought it and renovated yourself or you didn’t buy it. Now, buyers want the sellers to lower the asking price to cover costs of renovation. If the roof needs repair and you don’t have the money for repairs, don’t buy it. And everyone expects a 100 yr old house to have more than one bath, or a master suite. Seriously? I grew up in a 3 bedroom ranch with one bathroom and 13 kids. There was a boys bedroom and a girls bedroom. We didn’t each have a bedroom with our own bathroom. Crap! We didn’t even have our own clothes. We shared. We scheduled baths. We were not allowed hours in a bathroom. We learned scheduling. What I want to know is why people now think everyone needs their own bathroom and who the heck cleans them? Not my favorite job for sure. Another puzzle is why everyone wants a guest room. Who has that much company that you consider buying a special room for them in your house. And just how long do they stay? We doubled up so grams could have her own bed for a night in our ONE girls room. We all grew up as well or better than kids today. All successful and grateful for the life we had. And starter homes? Don’t get me started.😂
Boomers wanting to sale their Home, and retire don't care about the interest rates. They most likely want to buy cash out. And the Homes are just smaller and more expensive. Plus HOA's, Property Taxes are insane.
My home is on the market, been so stagnant I am now regretting even trying! I am blessed to own my property, so if this continues for the next 30 days, I'll probably just pull it, and stay put! The stress of it all isn't even worth it! Can't price a home properly as everything else is overpriced!
Great video!In south Florida …Seems like the houses that HAVE to sell are lowering prices and taking lower offers People who don’t HAVE to sell are still way overpriced and are usually staying put.
Besides the 35% increase in prices for things like water heaters and HVAC equipment, then the companies who install it are adding a 100% markup on top, AND billing at $250/hr. It's out of control. But when you talk to the owners of these companies, they are having to pay their techs $40/hr otherwise the techs will quit and go elsewhere. There is a huge shortage of trade labor
40% of homes are owned by boomers and they won't be living forever. They either will die in their home or go to assisted living homes but inventory levels go up either way.
@@cricketcricket5547 it's just how they chose to speak I guess 🤷♂️ as I see it, it's so obvious to some as you see in the comments, that "it goes without saying". So idk implications apply? " I'm sweating because its so hot out here, is 98 degrees and there's no shade from the sun here while we're waking." Said one person to the other person walking next to him. Cut out all the redundancy and you get, "I'm sweating" or "it's hot". Respectfully, that's just my take on it lol.
Delusion is a thing. Most will be holding the bag. They are clueless about what’s to hit. Inverse yield always results in higher interest rates. 12-13%. The million dollar homes will be back to normalcy. 50% price cuts are inevitable. It truly fixes all.
NYC here - prices ARE down. Every home I have listed or sold has had an adjustment of some sort. The asking price isn’t the selling price. Get out there and make the offer that works for you. That is the only way sellers are going to realize they are over priced. Plenty of deals are being made here in Queens and Brooklyn. It’s a different market of course but I had to chime in.
This exactly. People saying “wait for crash” are silly. Get off your ass and go run some numbers and make some offers! People have been making deals this whole Time.
We have a house in Sarasota 1995 bought in 2016. - no mortgage, Fixing up , home insurance went up 300% 3400. A year Property tax 7000, HOA = yearly home owner association fees = 1600 without CDD costs, no amenities cost which is separate in new places! A new roof can be 50-75,000 Lawns = 175-200 a month. Pool service? Appliance up keep and repair Ps get some maintenance skills I married a hydrogeologist/ very very handy man and I am very talented and frugal as we redid bathrooms and tile ourselves. Don’t know how peeps afford living here on Florida incomes.
Sometimes I wonder if people are gullible or just plain stupid. Karl Schwab from the WEF already said they want you poor and owning nothing, then we have all these interviews trying to figure out what is going on and where we are heading when it is right in our faces.
Buyer has upper hand, 7% mortgage rates, higher and higher insurance, higher HOA, higher utilities to upkeep an empty house, maintenance such as pest, lawn, sprinkler, here/there, EVERY MONTH A SELLER W/ AN EMPTY HOME sits vacant, he/she loses $$$$. X 5-8 months, trust me, reality will set in quickly. If rental market remains soft, as Ken has attested in his locale, what can possibly move the needle upwards in majority of housing markets between now and 2026? Exactly, sit tight, another wimpy May thru July 2025 selling season, you will see some capitulation (at least on the institution side) followed by a train of weak sellers who sat for 18 mos or longer (if they originally listed April 2024 or earlier), now hoping not to loose beyond their initial 10-15% down payment they have into the deal back in 2022/2023....
There’s plenty of homes on the market, people just can’t afford them because the pricing is not aligned with the median income. Also rd lDR Horton and Lamar stock , the two biggest construction companies , are down quite a bit. So I’m confused why anyone would think construction is strong?? They are building but they aren’t selling without incentives and buy downs which indicates slowing of the market.
Yeah, I don’t get that either, there’s no reason to be building right now. Wait a few months and there will be a big glut of homes on the market from people who can’t afford them. Also costs to build new must be steep and the quality not great.
Yeah I've been very surprised by the number of pre-order/new construction neighborhoods going up .5-1hr outside of my city that are all charging $800k+ while the median household income is $80k. Multiple developments all charging the same. Where do they expect all these buyers to come from?
Haha what! A Rheem 40-gallon electric tank water heater from Home Depot is $409 and all the extra Plumbing and to install comes out to be a 1,200 to 1,500 here in Mesa Arizona. And this is of course if you don't get taken advantage of and you shop at least three different companies
@@johnnyb33good21 Yeah, I agree. I am in NJ and I literally just paid this price last Thursday. A Bradford White is about 900 dollars. The issue is they sent two workers and they each put in 2.5 hours. This was a little unnecessary. Plumbing labor in NJ is about 189/hour.
@@danielmorgan827 Just replaced a 40 gal electric hot water heater for $1,200 in Richmond, VA. At $2,600, I would seriously consider the $400 unit and even it takes me all day to replace, thats paying me $200/hr.
Nooo. 1100$ where are you shopping? It’s easy to do yourself by the way. You litterally need a wrench and a screwdriver. Drain and roll the old one away
I’m 68, live in a vacation town. Locals complain about no reasonable housing. True because out of staters buy up anything that hits market under 800k. There’s 1500 airbnbs out of 4500 homes! My 94 yr old mom passed away last year which allowed me to give my son a 3% mortgage that let him buy a $500k home elsewhere in my state.
My grandparents are depressed because they realize us grandkids will never be able to buy homes in the same neighborhoods they did nor have lives like they did. My grandparents bought their house in the 80s for below $100k. Now that same house is worth over $800k. Back them they bought it on a military budget and my grandmother working part time. Now in order to afford that $800k we would have to be earning in the top 5% of incomes for the area. They have decided that it is better not downsize and just let one of the grandkids move in when they die so one of us can have a place to live without being broke.
I hope he put down more than 3% for a $500,000 house? That would leave him with a pretty hefty mortgage, not to mention the other expenses that he has no control over, such as property taxes, insurance and possibly a HOA. This has resulted in many people who "thought" they could afford their homes, struggling to barely keep up and not lose their homes. I think it was a very generous gift, so it's not a criticism. I'm just concerned if he couldn't scrape together 10 or 15% down payment on his own (much less 3%) can he really afford the home?
@@redtiger7268 I understand my granddaughter will be faced with a huge housing cost 30 years from now. So, every Birthday and Christmas I give her 1 oz of gold and 1 oz of silver. She will continue to receive them til they run out and she will have 3/5 of the cost of a home. It’s not to be used for education, nor a car. It’s for her first home.
I am tired of the old folks telling me how they had to pay a 13% mortgage rate in 1980, so do not complain about our 6% rates (which the rate was not even the issue, it is the overvalued PRICE). The median house price in 1980 was $64,600. a 13% mortgage on $64,500 is a hell of a lot better than a 6% mortgage on a $420,400 (this was the median price of a home in the USA in 2024 Q4). This made me realize, no matter the age, most people do not understand statistics. These house prices are going to have to come down since most Americans can't afford it, and there are only so many rich folk to buy up these overvalued properties.
Water heaters should last 10 to 15 years. In that time frame if it stops heating water it just needs to replace an element [ upper or lower ] electrical, breaker.
Apartment owners use AI to price rents and that is not good for renters. This makes finding an apt to rent stressful because the price will rise based on supply and demand.
I am 80. My monthly payment for mortgage principal, interest, taxes, insurance, HOA, is $1,375. Interest rate 3.75%. My house is 1650 sq ft mid century ranch on .50 acre wooded lot. I am 20 minutes from a world class hospital and my neighborhood is extremely safe. Closing and moving costs are extremely expensive, interest rates have doubled. Houses have doubled in price since I bought it 6 years ago, but where else could I move to that would be more affordable? A large part of the housing shortage is due to people owning several starter homes and renting them out.
It is 6-12k here in tn for one depending on who you call. Also water heater will install is 1600-2000k. Anyone who comes to repair or do maintenance no matter how small job is- min. $350. Tenants are getting more strapped financially as well with rising costs. The numbers don't really add up in most situations .
I live in Naperville, Illinois. A prime market suburb outside Chicago. The next door neighbor moved. House has been for sale since they moved back in June or July 2024.
Same here in MT. Houses on the market for 6 months & counting. A home sold in 2018 for $275k when interest rates were 3% is now listed for $675k. It’s been on the market for 6 months and sitting. The mortage for that home went from about $1,000 in 2018 to $4,000 today! It’s unbelievable & unsustainable IMO.
My friend bought a home in a college town and it rents out continuously to college students - smart. Until she's ready to sell . Like you said it's already increased in price - two fold. 500k
After events like fires, floods; etc. I am not sure if housing will be affordable at all. Home insurance costs are soaring and events like the CA wildfires are game changers.
@@scubadivingadventures1 that’s just incorrect - housing costs (to include prices and mortgage interest) have far outpaced most sectors in terms of inflation. Compare this to consumer costs (prices and consumer debt interest) and it’s pretty easy to see where the main squeeze is occurring.
@@DaveDDD No they haven’t. The price of a double cheeseburger went from like $1.29 to $3.69 at McDonald’s in past 4 years lmao. The problem is our govt *lies* about inflation numbers.
U can sell a house with equity unless u move to middle of no where because prices are soo high u would have a same payment with 200k in a 500 k home or a 800k home with a 300k mortgage payment. It doesn’t matter if u are 35 or 75 with equity. Good luck buy a house. It cost $200-$300 a sq ft to build so as long as material and high cost of labor stays up home prices will stay up.
My family and I decided to get out of our home and sell while we were on top during the fall 2024. We made major money (twice the purchase price in profit) probably the most the home would have ever been worth. Yes we are overpaying for a rental right now but we are hoping in the next 6months to a year the prices and/or rates come down
@@brandonsorenson9178 I bought my house and changed the water heater before I became a plumber. I worked for a plumbing company for 6 months and learned how to do a great amount. Just ran 60ft of pvc underground my home to connect to the main 4 inch. I hated plumbing but every man should learn how to
I am in New York and I not aware of any requirement that an attorney must be used in a real estate transaction involving an individual (as opposed to a business entity). Please specify which state has such a requirement.
..... Look.... No one, NO ONE, is going to buy a 180K dollar house for 360K... No one... keep trying to normalize the pricing of the housing market, but those of us in the position to buy will continue to sit on the sidelines... lets see who flinches first
I own rental homes it’s hard to convince the kids I am talking about that it might be better to rent for a few years and save what you assume it might cost to own and wait until the market to come down(it will I purchased a bunch of of foreclosures in 2007)( wait it out folks it will happen)
😅😅 yup just wait it out “as long as it takes” meanwhile people are finding deals that cashflow, 2007 was almost 20 years ago and a black swan event at that. You must have a crystal ball.
@@lyleburlingame2276 I think he’s right. I read a lot of these real estate blogs and in the comments are people who are really afraid of losing their houses from the huge increases in insurance, taxes and HOA. Many have said those expenses are now more than their mortgage.
Boomers won't live forever so it's inevitable in the next 10 years as interest rates stay higher for longer. Invevitable huge price drops coming especially after the next big crash as boomers panic and cash out of their homes.
Starter homes. Theyre still too expensive. And they arent really made anymore. Just like cars, nobody is asking for all these 'fancy' and expensive features. Many people want crank windows, cloth seats, no heated seats, no touch screens, no lane assist, no heated steering wheel. But even a small chevy 'work truck' is $28k-$32k... excluding the top 100 earners in our country, the median income is like $36k-$38k. While rent/ mortgage takes up MUCH of that
Add another D. Disruption. We had Death, and Debt, and had another huge Disruption, which forced an unwanted major relocation. Flipped our lives upside down, like a blender, for years.
It's a huge dilemma- Blackrock and Vanguard bought all the started homes- forcing our kids to pay super high rents --- they don't want the future gen to own anything.
If you really want interest rates to go down, we need more people to buy bonds. They need to buy US debt, but we need countries to be buying US debt and nobody wants to buy US debt anymore to them. It’s not worth it because we are over leverage. We owe too much money in debt and it’s unsustainable.
Ken, when I get your money, I am going to invest in downtown Matthews NC. It needs a great apartment building . Great little town that’s up and coming.
The Arizona example illustrates perfectly why prices are too high. They have to come down. The only person buying the condo for 700k is someone downsizing from a home they own that has a ton of equity. No one else is buying that condo.
The FL condo market is in the midst of a major crash. Bubble buyers are underwater big time. To boot,, increasing HOA payments and costly assessments are major financial issues. Mass seller condo exodus is on.
It never appears home prices are coming down until it happens. You two went through the math, and something has to give - the numbers simply don’t work. Price, not interest rates (which are the essentially at their average level over the past 30 years) is what needs to adjust downward. The deteriorating job market and aging population (longer term) will be ongoing pressures once the cracks start to really show… BTW, thank you both for the education you provide.
The prices are stupid high , overpriced 😮 Look at the kitchens and bathrooms and small living areas and tell yourself. NO, it’s not worth all,the financial stress to “ own”. You’ll “own” a property tax bill, insurance bill, maintenance bill and many times HOA bill with rules ! You’ll waste too much money with interest to the bank , not paying down the principal. Without 20 percent down you pay mortgage insurance too.
The only way to fix this is more supply. Government will need to incentivize building smaller denser and cheaper homes. But boomers vote NIMBY govt officials in. So will never happen without a huge economic collapse.
I have zero interest of buying a house that's basically made of toothpicks. Low quality craftsmanship and not built to last. With mine and Gen Z's generation already housebroke, assuming anyone has the debt to income ratio to qualify for a mortgage, there is going to be a lot of people who will run from their property by selling or foreclosing due to maintenance of their brand new home within the next 10 to 15 years.
In California especially rich Atherton. The property taxes are a GOOD reason not to move. Why would you want to pay extortionate property taxes for a lower priced home. Ridiculous
Banking is going to be wiped out by Ai. There is nothing to say that jobs in trades will increase to absorb those people. There has been productivity gains there too.
ALLERGIES! I hate when I see carpet in rentals. Landlords don’t replace carpet after each or even 2nd renter. I don’t want to live with someone else’s dirt. I can bring my own rug if I desire.
Great video 👍 Under employment is because paying 10s of thousands of dollars to get "qualifications then Being payed minimum for your qualifications is the biggest no go😅
Most people wouldn't make a lateral move except for the 3 Ds, however old age compels as well. We do have an aging population and that population seeks to not only downsize but scale back on property responsibilities.
The problem now is big business got involved not like back 50 years ago when people bought a house to live in and raise a family. It’s way out of bounds now, the average buyer now is in their fifths.
i believe that trump will impact the housing market so much but for now Prices are too high. With rates not subsidised in ’24 and mortgage still high , currently seeking alternatives to maximise savings without an RV move or taking a loan. I’m seriously contemplating the latter.
Working with a financial advisor has been a game-changer for me. They provided invaluable insights and tailored strategies that aligned perfectly with my risk tolerance and financial objectives. With their support, I've seen significant growth in my investments and gained confidence in my financial future.
Home insurance and taxes are ridiculous. You pay taxes when you buy a home also when you sell a home wtf do you have to pay taxes annually and it's not like you pay a little my taxes are 4,000 a year My house is 2 000 so ft not a mansion
100% agree with no calls, email best. Give someone your number and they will emotionally text 1x per week. Tell them email only and they will only contact you 3-4x per year. Calling/texting is for emergencies only.
You know you guys never bring up the supply side when you talk about lower rates. You just said supply will stay tight if rates stay high because everyone’s locked in at a low mortgage. But then when you talk about mortgage rates coming down how that would just create more competition on already low supply, you didn’t bring up the fact that if rates were to come down, there would also be a flood of sellers that would re-enter the market. There’s a pent-up demand of people wanting to get out of their current home, but they won’t because the rate is too high now. If rates come down, you could have a flood of sellers enter the market as well, not just buyers. You never bring that point up. You also never bring up the fact that 70% of homeowners say they are living paycheck to paycheck and don’t have any savings. If we enter even a slight recession, you don’t think those people are going to sell? You guys have this theory that no matter what happens going forward supply will remain tight, but there are several factors you have not brought up that could make sellers flood the market and increase supply dramatically. I guarantee you if we enter a recession which is more than likely coming, there’s going to be a flood of people that will be forced to sell their home regardless of what the interest rate is. 70% of homeowners are living paycheck to paycheck. They can barely keep their house now.
Wow, coming from a “Boomer” and a 38 year realtor I am stunned as to what you say about “US” You are more talking about the greatest generation ever, WWll Vets, The Great Depression, the parents of we baby boomers. When I bought my first home the interest rates were in the high 9’s and 5 years prior they were in the high teens. Yes housing prices were lower but so were incomes. When I bought my second house the rates were 7 3/4. The only really accurate statement you are making is that anyone, not just we Boomers who bought or refinanced in the years prior to inflation are having a hard time deciding to walk away from those interest rates.
Recession phase might be coming. People don't feel good about the housing market anymore , economy might be softening. Ken has a great presentation about real estate cycles but not assessing them. In 2020 he said the recession phase might be coming then stimulus happened and markets went parabolic. A couple of weeks ago you did a TH-cam discussion at Sachs realty and denied any possible slowdown that might be on the horizon for the real estate market
You need to realize that interest rates are not based on the Fed rate they’re based on the bond rate and when the central bank does not believe that our US debt should be only giving a low interest rate back, they’re not gonna lower the interest rates for houses.
My plumber is very straightforward about what he charges. Labor cost for a HWH install is $1200 for typically a two hour job (and he gives me a break because he does all my rental business). That's $600/hr. My attorney's hourly rate is $350. Why did I go to college??
@@zacklewis342 Hi wiseguy. My college business degree curriculum strangely enough didn't have textbooks on plumbing. Or electrical. Or welding. Or auto repair. Weird, huh? I suppose I could learn all these trades but being a landlord for 32 years has afforded me the opportunity for strong cash flow and also utilize skilled contractors to make repairs while I write off the expenses and stroll along Clearwater Beach in January. Where are YOU right now, wiseguy?
What about the homes that builders have not listed? I know builders that have 10+ new homes, but they’ve only listed 1. That has an impact to inventory levels.
Seeing tons of houses completed but when you look them up they are still listed as lots. 2 houses on my street that were completed early 2023 have groups of construction workers living in them. All with Texas license plates. Yet the house isn’t listed anywhere. Still shows as a lot.
I use to rent one, but you have to agree with the govt. They want more money, it is the main reason that they have to inflate all prices stat or else they got nothing. What is the blank rock corp. Doing now this is their time to own all of them. I just hope that they are not broke now. Nothing is impossible these days now.
Some people casually dated the rate, and got it pregnant, now they must marry said rate 😅 Congrats on all the views Ken and Danielle, you guys deserve it. Thanks for all the info over the years !!!
Ken, the retirees or people looking to live and buy MUCH cheaper is why people are moving to VA and also WV. I bought a 970 SQ ft house in WV for 33K [cash] while living in NC that needed some exterior refreshing so i put about 8-9K in exterior and interior refreshing and kept it as a hideaway, taxes were only $170.00 ANNUALLY. The broker stopped by one day and told me what it was worth and one of his agents listed it for 75K and it sold in 1 week April 2024. 6K in fees so 28 in my pocket minus whatever the capital gains are? I thought it was a good transaction, looking for another now. I buy something decent and fully livable so if i decide to move there permanently i will have no issues. 170.00 for my property tax wasn't a mistake!
it seems like you want increase in supply, and increase in income for the average person, not just a small sector of people this would put downward pressure on price despite upward pressure on income. If prices all around decrease it improves affordability for EVERYONE... wage increase across the board .... I think is more difficult to solve.
I will be forever grateful to you, you changed my whole life and I will continue to preach on your behalf for the whole world to hear that you saved me from huge financial debt with just a small Investment, thank you Jihan Wu you're such a life saver
As a beginner in this, it’s essential for you to have a mentor to keep you accountable. Jihan Wu is also my trade analyst, he has guided me to identify key market trends, pinpointed strategic entry points, and provided risk assessments, ensuring my trades decisions align with market dynamics for optimal returns...
Sellers need to sell and be reasonable about meeting the buyers where they are at. Plain and simple. I'm not saying sellers should do this but I'm saying this is the main issue.
If big corporations stay out of the real estate game and rental game then the people will have a better chance in finding an affordable home.
Corporations get preferred lending rates (lower costs for scale), than you and I. Capitalism, some say, but it is not, because capitalism requires sound money. Amos 8
It is not the corporations, but the govt has increased the property tax a lot, insurance cost increased a lot, labor and matarial cost, evictions, etc.
@@velocity-t7v if you dont think the real estate corps are driving up cost...you dont know anything.
We peaked in the summer of 2022. Idk why ppl are so surprised lol. Never in history is it “normal” for homes to double in just 2 years. When it takes decades.
home prices havent doubled in california
@ not until the damage of those fires affect most market values. And cali has had price reductions. Calling isnt just “LA.”
Agree but "peaked" implies that home prices have to drop from here. They may simply stay flat until the time that doubling of prices would be considered "normal" (10+ years from now).
@@atombomb31458total payments have when including mortgage interest, insurance, repairs etc.
Millions of Americans are grappling with a worsening rental crisis, driven by rising rents, stagnant wages, inflation, and the growing unaffordability of housing. As a result, many are struggling to save, and homeownership-once key to building wealth and ensuring financial stability-is becoming increasingly out of reach for the middle class. The dream of owning a home is fading for more people as the situation worsens.
I'm 62, and rising prices have derailed my retirement plans . I worry that today's economic conditions are more challenging than ever. The stock market's unpredictability, coupled with reduced income and soaring inflation, makes me anxious about having enough for retirement.
Working with a fiduciary advisor has been instrumental in navigating market uncertainty. Their advice on risk management and hedging has been crucial in growing my retirement savings to nearly a million. I've learned how to diversify, manage risk effectively, and adapt to market fluctuations. Thanks to their guidance, I feel much more confident about my financial future.
Can i get a recommendation on who you are working with?
My CFA Carol Vivian Constable , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Just ran an online search on her name and came across her website; pretty well educated. thank you for sharing.
What’s coming very soon are conditions where landlords will not be able to pass increased costs on as tenants become unemployed and underemployed
Great conversation! When I grew up in Massachusetts in the 70s the real estate sky rocketed but wages did not. Then people realized both parents need income to live! Now both parents work and together they can’t afford the rent or the house ( plus insurance and taxes). However the rent and expenses keep going up. We need stability. We need portable mortgages, so I can drag my current % with me to the downsized home or I am never selling my 4/3 house! We need less expensive 10/31 exchanges and mortgage portability and then inventory would increase and housing prices would dip! I am trapped fiscally in my paid off house because moving to a smaller home would cost so much more in terms of taxes alone!
What y’all are not talking about with these older homes is renovation costs. Sell a 1980s home for 400k, you have to put 100+K into it for renovations to bring it up to modern standards.
Maybe the amigos would do it for 50 grand!!
Ohhh si amigo.
@ Maybe if the amigos would raise their quality to decent rather than full suck they would get the 100 grand!!
@DarylBriggs-qw1iq 💯 percent, but they could be important in showing how competitive and startup businesses compete. Simply a model that will always work with an adequate product and service combo.
Yeah the cost of renovation is sometimes not worth buying it
Part of the issue is assuming you "have to" do renovations.
The other part of the issue is assuming you need to pay someone else to do a renovation. I've saved hundreds of thousands doing my own renovations and I'm a dope with a white-collar desk job and zero professional training in the trades. Most of it is relatively straightforward and can be accomplished with TH-cam, good tools and some patience. If you aren't comfortable with one aspect, like electrical work, outsource that part.
It used to be you bought a home “as is”. There were two options. You bought it and renovated yourself or you didn’t buy it. Now, buyers want the sellers to lower the asking price to cover costs of renovation. If the roof needs repair and you don’t have the money for repairs, don’t buy it. And everyone expects a 100 yr old house to have more than one bath, or a master suite. Seriously? I grew up in a 3 bedroom ranch with one bathroom and 13 kids. There was a boys bedroom and a girls bedroom. We didn’t each have a bedroom with our own bathroom. Crap! We didn’t even have our own clothes. We shared. We scheduled baths. We were not allowed hours in a bathroom. We learned scheduling. What I want to know is why people now think everyone needs their own bathroom and who the heck cleans them? Not my favorite job for sure. Another puzzle is why everyone wants a guest room. Who has that much company that you consider buying a special room for them in your house. And just how long do they stay? We doubled up so grams could have her own bed for a night in our ONE girls room. We all grew up as well or better than kids today. All successful and grateful for the life we had. And starter homes? Don’t get me started.😂
Its the PRICE not the rate. Rates are normal.
Boomers wanting to sale their Home, and retire don't care about the interest rates. They most likely want to buy cash out. And the Homes are just smaller and more expensive. Plus HOA's, Property Taxes are insane.
Extreme prices, ridiculous and unnecessary HOAs, sky high taxes need to drop. Incomes need to be livable for housing. It's wildly off.
My home is on the market, been so stagnant I am now regretting even trying! I am blessed to own my property, so if this continues for the next 30 days, I'll probably just pull it, and stay put! The stress of it all isn't even worth it! Can't price a home properly as everything else is overpriced!
That's not true. You price a home on sold comps not active listing comps. If you aren't selling, you are overpriced.
Hey I know investors. Can I take a look at your property ?? I may want to buy it
Let me know please
Great video!In south Florida …Seems like the houses that HAVE to sell are lowering prices and taking lower offers People who don’t HAVE to sell are still way overpriced and are usually staying put.
Besides the 35% increase in prices for things like water heaters and HVAC equipment, then the companies who install it are adding a 100% markup on top, AND billing at $250/hr. It's out of control. But when you talk to the owners of these companies, they are having to pay their techs $40/hr otherwise the techs will quit and go elsewhere. There is a huge shortage of trade labor
$40 today has the purchasing power of minimum wage in the '70's. It's not an employer/employee problem, this is a currency collapse.
Prices aren’t frozen the they’re too damn high. If it was lower it would sell.
40% of homes are owned by boomers and they won't be living forever. They either will die in their home or go to assisted living homes but inventory levels go up either way.
They're frozen too damn high 😂 that's what they're saying without saying it
@@esogazthen why don't they just say it
So annoying
@@cricketcricket5547 it's just how they chose to speak I guess 🤷♂️ as I see it, it's so obvious to some as you see in the comments, that "it goes without saying". So idk implications apply?
" I'm sweating because its so hot out here, is 98 degrees and there's no shade from the sun here while we're waking." Said one person to the other person walking next to him. Cut out all the redundancy and you get, "I'm sweating" or "it's hot". Respectfully, that's just my take on it lol.
Delusion is a thing. Most will be holding the bag. They are clueless about what’s to hit. Inverse yield always results in higher interest rates. 12-13%. The million dollar homes will be back to normalcy. 50% price cuts are inevitable. It truly fixes all.
“Date the rate, marry the home”. Sounds like they’re hurting for that commission check. Bull run is over.
The paranoid survive but don’t think you have everyone figured out lol and be careful trying to time the market
NYC here - prices ARE down. Every home I have listed or sold has had an adjustment of some sort. The asking price isn’t the selling price. Get out there and make the offer that works for you. That is the only way sellers are going to realize they are over priced. Plenty of deals are being made here in Queens and Brooklyn. It’s a different market of course but I had to chime in.
This exactly. People saying “wait for crash” are silly. Get off your ass and go run some numbers and make some offers! People have been making deals this whole Time.
Hmmm. I see renovated homes sitting unsold. Homes and brand new condos.
Hmmm. I see renovated homes sitting unsold. Homes and brand new condos.
@ Of course it that doesn’t mean deals aren’t being made.
We have a house in Sarasota 1995 bought in 2016. - no mortgage, Fixing up , home insurance went up 300% 3400. A year Property tax 7000, HOA = yearly home owner association fees = 1600
without CDD costs, no amenities cost which is separate in new places!
A new roof can be 50-75,000
Lawns = 175-200 a month.
Pool service? Appliance up keep and repair
Ps get some maintenance skills
I married a hydrogeologist/ very very handy man and I am very talented and frugal as we redid bathrooms and tile ourselves.
Don’t know how peeps afford living here on Florida incomes.
Sometimes I wonder if people are gullible or just plain stupid. Karl Schwab from the WEF already said they want you poor and owning nothing, then we have all these interviews trying to figure out what is going on and where we are heading when it is right in our faces.
Just plain stupid
Its nothing but a bubble watch it pop
I'm so suprised there wasn't a pop, but I don't even think there's an adjustment.
Buyer has upper hand, 7% mortgage rates, higher and higher insurance, higher HOA, higher utilities to upkeep an empty house, maintenance such as pest, lawn, sprinkler, here/there, EVERY MONTH A SELLER W/ AN EMPTY HOME sits vacant, he/she loses $$$$. X 5-8 months, trust me, reality will set in quickly. If rental market remains soft, as Ken has attested in his locale, what can possibly move the needle upwards in majority of housing markets between now and 2026? Exactly, sit tight, another wimpy May thru July 2025 selling season, you will see some capitulation (at least on the institution side) followed by a train of weak sellers who sat for 18 mos or longer (if they originally listed April 2024 or earlier), now hoping not to loose beyond their initial 10-15% down payment they have into the deal back in 2022/2023....
1979 rates were 9 to 13 percent.. and you think boomers had it easy. Here we go again
Not really, so most buyers will wait for a decent deal. I think it's s bloodbath right now though.
There’s plenty of homes on the market, people just can’t afford them because the pricing is not aligned with the median income. Also rd lDR Horton and Lamar stock , the two biggest construction companies , are down quite a bit. So I’m confused why anyone would think construction is strong?? They are building but they aren’t selling without incentives and buy downs which indicates slowing of the market.
Yeah, I don’t get that either, there’s no reason to be building right now. Wait a few months and there will be a big glut of homes on the market from people who can’t afford them. Also costs to build new must be steep and the quality not great.
Yeah I've been very surprised by the number of pre-order/new construction neighborhoods going up .5-1hr outside of my city that are all charging $800k+ while the median household income is $80k. Multiple developments all charging the same. Where do they expect all these buyers to come from?
Thank you for being Real on this show.
Hahaha I love that. “Tenant energy” made me laugh lol
Yeah, make it sound fun. Lol
A water heater replacement with labor is 2600.
Haha what! A Rheem 40-gallon electric tank water heater from Home Depot is $409 and all the extra Plumbing and to install comes out to be a 1,200 to 1,500 here in Mesa Arizona. And this is of course if you don't get taken advantage of and you shop at least three different companies
@@johnnyb33good21 Yeah, I agree. I am in NJ and I literally just paid this price last Thursday. A Bradford White is about 900 dollars. The issue is they sent two workers and they each put in 2.5 hours. This was a little unnecessary. Plumbing labor in NJ is about 189/hour.
@@danielmorgan827 Just replaced a 40 gal electric hot water heater for $1,200 in Richmond, VA. At $2,600, I would seriously consider the $400 unit and even it takes me all day to replace, thats paying me $200/hr.
In palm beach water heater replacement is about 800-1200,
you got soaked,😂
Nooo. 1100$ where are you shopping? It’s easy to do yourself by the way. You litterally need a wrench and a screwdriver. Drain and roll the old one away
I’m 68, live in a vacation town. Locals complain about no reasonable housing. True because out of staters buy up anything that hits market under 800k. There’s 1500 airbnbs out of 4500 homes! My 94 yr old mom passed away last year which allowed me to give my son a 3% mortgage that let him buy a $500k home elsewhere in my state.
My grandparents are depressed because they realize us grandkids will never be able to buy homes in the same neighborhoods they did nor have lives like they did. My grandparents bought their house in the 80s for below $100k. Now that same house is worth over $800k. Back them they bought it on a military budget and my grandmother working part time. Now in order to afford that $800k we would have to be earning in the top 5% of incomes for the area. They have decided that it is better not downsize and just let one of the grandkids move in when they die so one of us can have a place to live without being broke.
Do you live in Mariposa, CA?! lol similar story here
I hope he put down more than 3% for a $500,000 house? That would leave him with a pretty hefty mortgage, not to mention the other expenses that he has no control over, such as property taxes, insurance and possibly a HOA. This has resulted in many people who "thought" they could afford their homes, struggling to barely keep up and not lose their homes.
I think it was a very generous gift, so it's not a criticism. I'm just concerned if he couldn't scrape together 10 or 15% down payment on his own (much less 3%) can he really afford the home?
@@lyleburlingame2276 live in the lakes region of NH, 5 houses from the largest lake in NH
@@redtiger7268 I understand my granddaughter will be faced with a huge housing cost 30 years from now. So, every Birthday and Christmas I give her 1 oz of gold and 1 oz of silver. She will continue to receive them til they run out and she will have 3/5 of the cost of a home. It’s not to be used for education, nor a car. It’s for her first home.
I am tired of the old folks telling me how they had to pay a 13% mortgage rate in 1980, so do not complain about our 6% rates (which the rate was not even the issue, it is the overvalued PRICE). The median house price in 1980 was $64,600. a 13% mortgage on $64,500 is a hell of a lot better than a 6% mortgage on a $420,400 (this was the median price of a home in the USA in 2024 Q4).
This made me realize, no matter the age, most people do not understand statistics. These house prices are going to have to come down since most Americans can't afford it, and there are only so many rich folk to buy up these overvalued properties.
So far near me not many houses for sale and those that are are so overpriced its ridiculous
I want to see the housing price direction once we are back to a long term average of unsold inventory.
Water heaters should last 10 to 15 years. In that time frame if it stops heating water it just needs to replace an element [ upper or lower ] electrical, breaker.
Apartment owners use AI to price rents and that is not good for renters. This makes finding an apt to rent stressful because the price will rise based on supply and demand.
Also beside the 3 D reason, if you taxes and insurance are higher in your mortgage it's not worth anymore keep that property and people sell.
I am 80. My monthly payment for mortgage principal, interest, taxes, insurance, HOA, is $1,375. Interest rate 3.75%. My house is 1650 sq ft mid century ranch on .50 acre wooded lot. I am 20 minutes from a world class hospital and my neighborhood is extremely safe. Closing and moving costs are extremely expensive, interest rates have doubled. Houses have doubled in price since I bought it 6 years ago, but where else could I move to that would be more affordable? A large part of the housing shortage is due to people owning several starter homes and renting them out.
On the other end of the spectrum we're in our 30's with 4 kids. We're trying to save but drowning in our expenses and rent. Consider yourself blessed.
Here in California a new AC is no where near 6 thousand bucks, its way more expensive
You can thank your governor for that
Just buy 4 small ac for every room.
avg about 14-18k
It is 6-12k here in tn for one depending on who you call. Also water heater will install is 1600-2000k. Anyone who comes to repair or do maintenance no matter how small job is- min. $350. Tenants are getting more strapped financially as well with rising costs. The numbers don't really add up in most situations .
Lower the price and it will sell.
Home values are declining rapidly throughout the greater Atlanta are. It's very rough.
It's not rough for the buyers
Declining here in south Florida too
My water heater in Minnesota in April of 2024 was $2200
Even with a paid off mortgage, if your taxes and insurance are 4-5k/m you may decide to sell.
I live in Naperville, Illinois. A prime market suburb outside Chicago. The next door neighbor moved. House has been for sale since they moved back in June or July 2024.
Over priced 👍
Same here in MT. Houses on the market for 6 months & counting. A home sold in 2018 for $275k when interest rates were 3% is now listed for $675k. It’s been on the market for 6 months and sitting. The mortage for that home went from
about $1,000 in 2018 to $4,000 today! It’s unbelievable & unsustainable IMO.
Part of it is that Illinois has ridiculously high cost of living in the Chicagoland area, so it’s partly because of that.
“Date the rate, love the home.” Kenny- “What does that even mean?” 🤣
Also, in 2016 i always said housing is too cheap and thought that prices where right in 2022, but than they jacked the interest rates way up
My friend bought a home in a college town and it rents out continuously to college students - smart. Until she's ready to sell . Like you said it's already increased in price - two fold. 500k
After events like fires, floods; etc. I am not sure if housing will be affordable at all. Home insurance costs are soaring and events like the CA wildfires are game changers.
So many homes purchased in early 2020 are now for sale asking twice the price-homeowners and realtors and buyers are so out of touch
Inflation in general has doubled. It isn’t that housing prices are high. It’s that inflation in general is high in every sector of our USA economy
@@scubadivingadventures1 that’s just incorrect - housing costs (to include prices and mortgage interest) have far outpaced most sectors in terms of inflation. Compare this to consumer costs (prices and consumer debt interest) and it’s pretty easy to see where the main squeeze is occurring.
I think everything has just gone up. People just need to realize that unless we have a depression then housing will not go down like the past.
@@DaveDDD No they haven’t. The price of a double cheeseburger went from like $1.29 to $3.69 at McDonald’s in past 4 years lmao. The problem is our govt *lies* about inflation numbers.
Everything gone up but my paycheck
In California I got quoted 3,000 to replace a water heater. Insanity!
U can sell a house with equity unless u move to middle of no where because prices are soo high u would have a same payment with 200k in a 500 k home or a 800k home with a 300k mortgage payment. It doesn’t matter if u are 35 or 75 with equity. Good luck buy a house.
It cost $200-$300 a sq ft to build so as long as material and high cost of labor stays up home prices will stay up.
What market are they seeing? I am tracking prices and they are going down in a lot of places
Water heaters are 800$ gas in Cali plumber is anywhere from 500 to 800 to install .
Cali is a unique state. Can't compare it to rest of the country
@@davidjackson2832 you got that right every where else should be cheaper except places like Ny and or New Port cali
My family and I decided to get out of our home and sell while we were on top during the fall 2024. We made major money (twice the purchase price in profit) probably the most the home would have ever been worth. Yes we are overpaying for a rental right now but we are hoping in the next 6months to a year the prices and/or rates come down
Just replaced a water heater quoted $2500 a friend did it for $1400 😮
What a friend! I installed one for my friend for free
$500 and did it myself. People need to learn how to do stuff on their own again and quit hiring everything out.
@@brandonsorenson9178 I bought my house and changed the water heater before I became a plumber. I worked for a plumbing company for 6 months and learned how to do a great amount. Just ran 60ft of pvc underground my home to connect to the main 4 inch.
I hated plumbing but every man should learn how to
We buy used water heater and a new one for $400 put it in ourselves works great only 40 gallons
I am in New York and I not aware of any requirement that an attorney must be used in a real estate transaction involving an individual (as opposed to a business entity). Please specify which state has such a requirement.
..... Look.... No one, NO ONE, is going to buy a 180K dollar house for 360K... No one... keep trying to normalize the pricing of the housing market, but those of us in the position to buy will continue to sit on the sidelines... lets see who flinches first
I wouldn't be so sure of that. 😢
Very helpful Thank you for sharing this
I own rental homes it’s hard to convince the kids I am talking about that it might be better to rent for a few years and save what you assume it might cost to own and wait until the market to come down(it will I purchased a bunch of of foreclosures in 2007)( wait it out folks it will happen)
😅😅 yup just wait it out “as long as it takes” meanwhile people are finding deals that cashflow, 2007 was almost 20 years ago and a black swan event at that. You must have a crystal ball.
@@lyleburlingame2276 I think he’s right. I read a lot of these real estate blogs and in the comments are people who are really afraid of losing their houses from the huge increases in insurance, taxes and HOA. Many have said those expenses are now more than their mortgage.
Boomers won't live forever so it's inevitable in the next 10 years as interest rates stay higher for longer. Invevitable huge price drops coming especially after the next big crash as boomers panic and cash out of their homes.
Starter homes. Theyre still too expensive. And they arent really made anymore. Just like cars, nobody is asking for all these 'fancy' and expensive features. Many people want crank windows, cloth seats, no heated seats, no touch screens, no lane assist, no heated steering wheel. But even a small chevy 'work truck' is $28k-$32k... excluding the top 100 earners in our country, the median income is like $36k-$38k. While rent/ mortgage takes up MUCH of that
Add another D. Disruption. We had Death, and Debt, and had another huge Disruption, which forced an unwanted major relocation. Flipped our lives upside down, like a blender, for years.
Nemo you have to train the tenants. Walk through. Drmonstration of all equipment etc. Tough love up front. Send videos as follow up
It's a huge dilemma- Blackrock and Vanguard bought all the started homes- forcing our kids to pay super high rents --- they don't want the future gen to own anything.
If you really want interest rates to go down, we need more people to buy bonds. They need to buy US debt, but we need countries to be buying US debt and nobody wants to buy US debt anymore to them. It’s not worth it because we are over leverage. We owe too much money in debt and it’s unsustainable.
Ken, when I get your money, I am going to invest in downtown Matthews NC. It needs a great apartment building . Great little town that’s up and coming.
The Arizona example illustrates perfectly why prices are too high. They have to come down. The only person buying the condo for 700k is someone downsizing from a home they own that has a ton of equity. No one else is buying that condo.
The FL condo market is in the midst of a major crash. Bubble buyers are underwater big time. To boot,, increasing HOA payments and costly assessments are major financial issues. Mass seller condo exodus is on.
How will the homeowners pull the equity out of their home if no one buying homes?
It never appears home prices are coming down until it happens. You two went through the math, and something has to give - the numbers simply don’t work.
Price, not interest rates (which are the essentially at their average level over the past 30 years) is what needs to adjust downward. The deteriorating job market and aging population (longer term) will be ongoing pressures once the cracks start to really show…
BTW, thank you both for the education you provide.
The prices are stupid high , overpriced 😮 Look at the kitchens and bathrooms and small living areas and tell yourself. NO, it’s not worth all,the financial stress to “ own”. You’ll “own” a property tax bill, insurance bill, maintenance bill and many times HOA bill with rules ! You’ll waste too much money with interest to the bank , not paying down the principal. Without 20 percent down you pay mortgage insurance too.
The only way to fix this is more supply. Government will need to incentivize building smaller denser and cheaper homes. But boomers vote NIMBY govt officials in. So will never happen without a huge economic collapse.
I have zero interest of buying a house that's basically made of toothpicks. Low quality craftsmanship and not built to last. With mine and Gen Z's generation already housebroke, assuming anyone has the debt to income ratio to qualify for a mortgage, there is going to be a lot of people who will run from their property by selling or foreclosing due to maintenance of their brand new home within the next 10 to 15 years.
Economic crash will reset things. The once greedy will be begging.
In California especially rich Atherton. The property taxes are a GOOD reason not to move. Why would you want to pay extortionate property taxes for a lower priced home. Ridiculous
Banking is going to be wiped out by Ai. There is nothing to say that jobs in trades will increase to absorb those people. There has been productivity gains there too.
How will labor markets with California fires? 20b insured damages so far.
ALLERGIES! I hate when I see carpet in rentals. Landlords don’t replace carpet after each or even 2nd renter. I don’t want to live with someone else’s dirt. I can bring my own rug if I desire.
Great video 👍 Under employment is because paying 10s of thousands of dollars to get "qualifications then Being payed minimum for your qualifications is the biggest no go😅
Most people wouldn't make a lateral move except for the 3 Ds, however old age compels as well. We do have an aging population and that population seeks to not only downsize but scale back on property responsibilities.
the audio is too low
The problem now is big business got involved not like back 50 years ago when people bought a house to live in and raise a family. It’s way out of bounds now, the average buyer now is in their fifths.
Black Rock dumped and so did all the other criminals - the Titles are gone
i believe that trump will impact the housing market so much but for now Prices are too high. With rates not subsidised in ’24 and mortgage still high , currently seeking alternatives to maximise savings without an RV move or taking a loan. I’m seriously contemplating the latter.
Affording our mortgage is tough as well. I have suggested cashing in, renting or relocating, and investing the rest in the stock market.
Working with a financial advisor has been a game-changer for me. They provided invaluable insights and tailored strategies that aligned perfectly with my risk tolerance and financial objectives. With their support, I've seen significant growth in my investments and gained confidence in my financial future.
this is all new to me, where do I find a fiduciary, can you recommend any?
' Annette Christine Conte' is the licensed advisor I use. Just research the name. You’d find necessary details to work with to set up an appointment.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
Home insurance and taxes are ridiculous. You pay taxes when you buy a home also when you sell a home wtf do you have to pay taxes annually and it's not like you pay a little my taxes are 4,000 a year My house is 2 000 so ft not a mansion
100% agree with no calls, email best. Give someone your number and they will emotionally text 1x per week. Tell them email only and they will only contact you 3-4x per year. Calling/texting is for emergencies only.
You know you guys never bring up the supply side when you talk about lower rates. You just said supply will stay tight if rates stay high because everyone’s locked in at a low mortgage. But then when you talk about mortgage rates coming down how that would just create more competition on already low supply, you didn’t bring up the fact that if rates were to come down, there would also be a flood of sellers that would re-enter the market. There’s a pent-up demand of people wanting to get out of their current home, but they won’t because the rate is too high now. If rates come down, you could have a flood of sellers enter the market as well, not just buyers. You never bring that point up. You also never bring up the fact that 70% of homeowners say they are living paycheck to paycheck and don’t have any savings. If we enter even a slight recession, you don’t think those people are going to sell? You guys have this theory that no matter what happens going forward supply will remain tight, but there are several factors you have not brought up that could make sellers flood the market and increase supply dramatically. I guarantee you if we enter a recession which is more than likely coming, there’s going to be a flood of people that will be forced to sell their home regardless of what the interest rate is. 70% of homeowners are living paycheck to paycheck. They can barely keep their house now.
Is that all the ppl who bought sight unseen and regret buying the house?
Wow, coming from a “Boomer” and a 38 year realtor I am stunned as to what you say about “US” You are more talking about the greatest generation ever, WWll Vets, The Great Depression, the parents of we baby boomers. When I bought my first home the interest rates were in the high 9’s and 5 years prior they were in the high teens. Yes housing prices were lower but so were incomes. When I bought my second house the rates were 7 3/4.
The only really accurate statement you are making is that anyone, not just we Boomers who bought or refinanced in the years prior to inflation are having a hard time deciding to walk away from those interest rates.
Recession phase might be coming. People don't feel good about the housing market anymore , economy might be softening. Ken has a great presentation about real estate cycles but not assessing them. In 2020 he said the recession phase might be coming then stimulus happened and markets went parabolic. A couple of weeks ago you did a TH-cam discussion at Sachs realty and denied any possible slowdown that might be on the horizon for the real estate market
Artificial low rates and massive money supply are what got us here.
ABSOLUTELY!
And the idiotic pandemic “ work from anywhere” policies.
You need to realize that interest rates are not based on the Fed rate they’re based on the bond rate and when the central bank does not believe that our US debt should be only giving a low interest rate back, they’re not gonna lower the interest rates for houses.
This is market dependent. In FL we have prices going down already.
Where
Not in the South East side. Very little new construction, inventory still under 6 months supply and no land to build.
My plumber is very straightforward about what he charges. Labor cost for a HWH install is $1200 for typically a two hour job (and he gives me a break because he does all my rental business). That's $600/hr. My attorney's hourly rate is $350. Why did I go to college??
You have a college education and can't figure out how to connect a water heater?
@@zacklewis342 Hi wiseguy. My college business degree curriculum strangely enough didn't have textbooks on plumbing. Or electrical. Or welding. Or auto repair. Weird, huh? I suppose I could learn all these trades but being a landlord for 32 years has afforded me the opportunity for strong cash flow and also utilize skilled contractors to make repairs while I write off the expenses and stroll along Clearwater Beach in January. Where are YOU right now, wiseguy?
😂😂@@INTERNETVID
@@INTERNETVID lmao so mad
@@SignalLost730 I'm not happy about hit and run commentary made by adolescents. Guilty as charged.
Not if they sold their house in a high-priced market and took their equity to a smaller town in a lower cost area and pay cash.
A buddy of mine bought a water heater in 2024 $2800
What about the homes that builders have not listed? I know builders that have 10+ new homes, but they’ve only listed 1. That has an impact to inventory levels.
Seeing tons of houses completed but when you look them up they are still listed as lots. 2 houses on my street that were completed early 2023 have groups of construction workers living in them. All with Texas license plates. Yet the house isn’t listed anywhere. Still shows as a lot.
I use to rent one, but you have to agree with the govt. They want more money, it is the main reason that they have to inflate all prices stat or else they got nothing. What is the blank rock corp. Doing now this is their time to own all of them. I just hope that they are not broke now. Nothing is impossible these days now.
3d printing buildings can be done with 3 or 4 people and cut building costs.
Thise sellers in scottsdale should seller finance fir income and low cap gains
Thank you guys!
Some people casually dated the rate, and got it pregnant, now they must marry said rate 😅 Congrats on all the views Ken and Danielle, you guys deserve it. Thanks for all the info over the years !!!
Building more houses it doesn’t make a difference because more or less if the interest doesn’t go down there is no business
I think these are just the new prices.
Im an investigator ❤🎉.. i get told i know it all😅
Ken, the retirees or people looking to live and buy MUCH cheaper is why people are moving to VA and also WV. I bought a 970 SQ ft house in WV for 33K [cash] while living in NC that needed some exterior refreshing so i put about 8-9K in exterior and interior refreshing and kept it as a hideaway, taxes were only $170.00 ANNUALLY. The broker stopped by one day and told me what it was worth and one of his agents listed it for 75K and it sold in 1 week April 2024. 6K in fees so 28 in my pocket minus whatever the capital gains are? I thought it was a good transaction, looking for another now. I buy something decent and fully livable so if i decide to move there permanently i will have no issues. 170.00 for my property tax wasn't a mistake!
it seems like you want increase in supply, and increase in income for the average person, not just a small sector of people this would put downward pressure on price despite upward pressure on income. If prices all around decrease it improves affordability for EVERYONE... wage increase across the board .... I think is more difficult to solve.
Whatever market you live in it’s almost at for sure it’s cheaper to rent for young kids searching for a first starter home!!!!
Hit 220k today. Appreciate you for all the knowledge and nuggets you had thrown my way over the last months. Started with 34k in November 2024...😊
I would really love to know how much work you did put in to get to this stage
I will be forever grateful to you, you changed my whole life and I will continue to preach on your behalf for the whole world to hear that you saved me from huge financial debt with just a small Investment, thank you Jihan Wu you're such a life saver
As a beginner in this, it’s essential for you to have a mentor to keep you accountable.
Jihan Wu is also my trade analyst, he has guided me to identify key market trends, pinpointed strategic entry points, and provided risk assessments, ensuring my trades decisions align with market dynamics for optimal returns...
His guidance allowed me to restructure my retirement plan, resulting in an estimated $700,000 more by the time I retire.
Please how can I get in touch with this coach Jihan Wu ? I really need to give him a try
Sellers need to sell and be reasonable about meeting the buyers where they are at. Plain and simple. I'm not saying sellers should do this but I'm saying this is the main issue.
You remind me of 'Tim the tool man' 😆