that's crazy. In 2012 you needed 25% or less of your income to buy a home and they were teaching to allocate 30% of your expenses for housing. Nowadays you need 40% of your income for housing and good luck.
Rates will go down again this year... BUT prices will continue to go up causing a massive barrier to entry with down payments on homes. Which is the hardest part for anyone to buy a house today and last I checked, 100mil Americas are too broke to buy a house. It's only going to get harder for buyers, and for sellers who get the right buyers, still going to be a good time.
Prices go down in many areas. When they measure the average/ median price, they need to calculate new construction separately from the resale because often new construction builds more expensive than the averages for the area. That pulls the numbers up and makes it look like prices are going up while resale actually is trending down. Many areas have huge number of price reductions, huge number of expireds. I really wish we stopped these talks about prices going up. It misleads the public, especially the sellers. Even the same metro will have different areas where the trends are opposite.
Exactly!! New construction homes artificially will increase prices. This should be unethical business practices. Buying down interest rates, providing seller concessions, changes the affordability line dramatically. Then that translates to this bs and taxes. It’s ridiculous
Na, they said that for three years now. Inventory is still low. Sales are picking up, not slowing down. We will see the same price increase this year...around 5%. Simple math.
If inventory is so low why are listings sitting 6 months now? Lot of listings not selling. The average household can no longer qualify for the inflated prices.
@@RickyCarruth Inventory is not low and has returned to 2019 levels. That's not an excuse anymore. What happened is the absurd GREED between 2019 and now has made the prices too high. Inventory is not a factor in my area anymore. The greed people bought into is the problem and now they'll all lose money if they sell at an actual fair price.
In Orlando and did good last year 28 deals got 1 buyer pending and one listings with no showing for first 10 days starting of a little slow new listing rolling out next week. There is a lot of inventory but it’s gonna pick up in march
Yep, affordability is just gonna get worse. The little is nothing! I don’t get how people are affording these homes, the majority are just moving old home money to new homes.
It's getting better...what do see as the path of it getting worse? Inflation is getting better, mortgage rates are slowly coming down, and wages are growing while home prices are getting back to their normal annual rate and inventory is still a huge problem.
@@RickyCarruth I don’t see incomes growing significantly, we have seen stagnant wages the last 25 years and only slightly up because of inflation, Gov / State jobs move first and then private super slowly. We had a 40+% inflation growth. Agents are slightly at fault for pushing clients to overbid on these homes causing the issue, I get it that they would loose out if they didn’t, it still created an affordability issue. A buyer who was paying $3000 a month mortgage is now paying $5000, how is that sustainable and how will people afford it going up more?
People have almost stopped buying homes, very few people can buy a home now!! Everyone is waiting for houses to go down or correct. Don't believe it's just supply and demand.
Well, we just had the highest existing homes sales in 2 years. So, more people are buying now than they have been. It's picking up. Not slowing down. Look at the data.
@@RickyCarruth homes are way overpriced only the super rich are buying homes man, I make a great salary and own a single family house and I will not pay the price of homes today, it's way overpriced, they gotta drop down, I don't believe lots of people are buying , they are outta their minds if they are.
Of course it’s going to linger in the 6s and 7s. How long will the brewing last though, that’s the question. Like did it just start brewing, or are we at the tail end of the “brewing”. Let’s be more specific on your predictions, you’re losing me man.
When the average mortgage payment gets higher than 40% of average household monthly income the prices must drop. Simply because the average household can’t qualify for the payment anymore. It happens when the average home price hits about $400,000.
Pent-up demand BECAUSE it's ALL overpriced. 🤦♂️ And clearly real estate is a rigged system and look at 2008 for the facts. L❤ve the movie the big short.✌️
that's crazy. In 2012 you needed 25% or less of your income to buy a home and they were teaching to allocate 30% of your expenses for housing.
Nowadays you need 40% of your income for housing and good luck.
Rates will go down again this year... BUT prices will continue to go up causing a massive barrier to entry with down payments on homes. Which is the hardest part for anyone to buy a house today and last I checked, 100mil Americas are too broke to buy a house. It's only going to get harder for buyers, and for sellers who get the right buyers, still going to be a good time.
It won't get better until prices go down instead of up. Rates tripled and have barely declined and prices are still high...
Slow trickle of inventory, high rates, certain markets will see price corrections. Can't just fling any price up there.
Prices go down in many areas. When they measure the average/ median price, they need to calculate new construction separately from the resale because often new construction builds more expensive than the averages for the area. That pulls the numbers up and makes it look like prices are going up while resale actually is trending down. Many areas have huge number of price reductions, huge number of expireds. I really wish we stopped these talks about prices going up. It misleads the public, especially the sellers. Even the same metro will have different areas where the trends are opposite.
I talk very strongly in this video about understanding your local market data and how each market is very different. Be the local expert. Yes!
Exactly!! New construction homes artificially will increase prices. This should be unethical business practices. Buying down interest rates, providing seller concessions, changes the affordability line dramatically. Then that translates to this bs and taxes. It’s ridiculous
Boston, MA are higher this year 😢. We are priced out by a huge amount. 😢we won’t be able to buy until prices drop.
The housing market is unaffordable for most Americans and pricing will come down in many markets. It’s basic math.
Na, they said that for three years now. Inventory is still low. Sales are picking up, not slowing down. We will see the same price increase this year...around 5%. Simple math.
If inventory is so low why are listings sitting 6 months now? Lot of listings not selling. The average household can no longer qualify for the inflated prices.
@@RickyCarruth Inventory is not low and has returned to 2019 levels. That's not an excuse anymore. What happened is the absurd GREED between 2019 and now has made the prices too high. Inventory is not a factor in my area anymore. The greed people bought into is the problem and now they'll all lose money if they sell at an actual fair price.
@@RickyCarruthinventory is not that low and delinquency’s are going up, just wait till the investors drop these homes..
In Orlando and did good last year 28 deals got 1 buyer pending and one listings with no showing for first 10 days starting of a little slow new listing rolling out next week. There is a lot of inventory but it’s gonna pick up in march
Nice work!!
Accurate! I have so many sellers/buyers who can’t find the trade up or trade down home. Not enough inventory in Metro Detroit!
Yep, affordability is just gonna get worse. The little is nothing!
I don’t get how people are affording these homes, the majority are just moving old home money to new homes.
It's getting better...what do see as the path of it getting worse? Inflation is getting better, mortgage rates are slowly coming down, and wages are growing while home prices are getting back to their normal annual rate and inventory is still a huge problem.
@@RickyCarruth I don’t see incomes growing significantly, we have seen stagnant wages the last 25 years and only slightly up because of inflation, Gov / State jobs move first and then private super slowly. We had a 40+% inflation growth. Agents are slightly at fault for pushing clients to overbid on these homes causing the issue, I get it that they would loose out if they didn’t, it still created an affordability issue.
A buyer who was paying $3000 a month mortgage is now paying $5000, how is that sustainable and how will people afford it going up more?
Just double sided my listing
Nice!!!
Mister, you are full of crap. Wages didnot surpassed inflation. Morgage rates are not better.
Look it up
People have almost stopped buying homes, very few people can buy a home now!! Everyone is waiting for houses to go down or correct. Don't believe it's just supply and demand.
Well, we just had the highest existing homes sales in 2 years. So, more people are buying now than they have been. It's picking up. Not slowing down. Look at the data.
@@RickyCarruth homes are way overpriced only the super rich are buying homes man, I make a great salary and own a single family house and I will not pay the price of homes today, it's way overpriced, they gotta drop down, I don't believe lots of people are buying , they are outta their minds if they are.
Of course it’s going to linger in the 6s and 7s. How long will the brewing last though, that’s the question. Like did it just start brewing, or are we at the tail end of the “brewing”. Let’s be more specific on your predictions, you’re losing me man.
When the average mortgage payment gets higher than 40% of average household monthly income the prices must drop. Simply because the average household can’t qualify for the payment anymore. It happens when the average home price hits about $400,000.
Pent-up demand BECAUSE it's ALL overpriced. 🤦♂️
And clearly real estate is a rigged system and look at 2008 for the facts. L❤ve the movie the big short.✌️