SHOCKING 69% of Americans “Housing Market CRASH IS COMING”
ฝัง
- เผยแพร่เมื่อ 1 ส.ค. 2022
- In a shocking new survey done by Finance Buzz, it was found out that 69% of Americans thing that a housing market crash is coming and that a majority think that a housing crisis is developing. We have a lot of new information to cover in today's video, as well as home owner and home buyer sentiment, as well as some new housing market info.
Need a Realtor? homeandmoney.com/michael/
======
I offer 1 on 1 calls, book one if you'd like!
michaelbordenaro.com/book-ser...
======
My Filming and Editing Equipment
michaelbordenaro.com/my-youtu...
======
Sign Up for My Email list and Get Weekly Video Updates in Your Inbox!
bit.ly/MBreminders
Articles Mentioned in the Video
www.floridarealtors.org/news-...
www.businessinsider.com/us-ec...
www.floridarealtors.org/news-...
apple.news/ADrBkHxSFTnq-eoD_f...
apple.news/AS-opr-7iQSeCb5wv7...
FTC Legal Disclaimer - Some links found in the description box of my videos may be affiliate links, meaning I will make commission on sales you make through my link. This is at no extra cost to you to use my links/codes, it's just one more way to support me and my channel! :) - บันเทิง
Is BUYERS REMORSE The New NORMAL? th-cam.com/video/2dBUb0MgZjA/w-d-xo.html
Do you hear yourself Michael? No offense but you sound like a trustfund kid
I remember when someone bought a house, paid it off, and lived in it for the rest of their life....instead of treating it like a stock or piggy bank.
Those days are clearly over
Life was totally different in the past.
It’s both. My home is a 4BR on over an acre in central MA. When my kids get out of school, I’ll relocate down south, to a smaller home, hopefully for less, and have some of that equity from my old home as part of my retirement. Nothing has changed. It’s all the same. Why do millennials think they’ve reinvented the wheel? The ones that went again may the grain in the past have missed every mark, while millennials that just did what prior generations did are doing very well. I don’t understand it. It’s like half of the millennials are backwards. Just do whatever makes the majority successful, and you will not miss the mark.
@@sandyrose2398 you were here in the past to see it? I am nearing 50 years old, and the only thing that’s different is people are easily manipulated by social media and mainstream media. People are still people and the general rules still apply. You know we have it to good when people are complaining about silly stuff. Try living in a country where no matter how hard you try, you cannot get ahead, most people are poor, you pay most of you money to taxes, medical care is horrible, and people are malnourished.
@@jesse_- Those darn millennials lol. Yeah, i agree nothing has changed. Gen X here. Cheers !!
How can a $500 rent increase not be the cause of a personal income recession? That’s a lot of money that used to pay those cell phone bills, etc. I see my Lakeland apartment complex struggling to Rent TWELVE UNNRENTED APARTMENTS. It was maybe three or four at any one time. It’s a good sign that gives me hope that rents will come down. That story you mentioned about 44 vacancies! Fantastic. These greedy landlords need to bring down these prices to what local wages can support. Hope!
Thats right! I am pretty sure we have seen the peak of where rent prices can go for now here in FL and as vacancies pile up, they will come down.
@@MichaelBordenaro 🙏🙏🙏👍🏻😎
He lost me at "you should be responsible with money. Michael obviously is spoiled or lives in his own bubble
What's listed for 500k in a real reality it's only worth 250k
IMO it’s only worth what the tax assessment says it is.
@@jrthesuperstar83 I agree
The median wage for a single person is 45k and the median home is 445k….that’s almost 10x!
A single person typically doesn’t buy a single family home, so your stat is meaningless.
10x just like the hustle culture
@@Jay-pf2cn how the hell will you know with a typical single person purchases
Nobody needs to buy a $445k home. As long as people are willing to pay sky high prices on homes, they'll continue to go up. They can buy a $150k home, and have a stress free life.
@@jaybee1930 It’s called data. Look it up.
There’s something real sinister coming. Like an ominous looking storm on the way. Idk I just got this feeling and it’s been keeping me up at night.
The important thing is to not lose sleep over it bc you are ready
The way the world's governments handled this "pandemic" with a 99.999% survival rate was the biggest red flag I've witnessed in my 34 years on this planet. Completely shutting down the economy, locking the people down and printing 10 trillion dollars to fully manipulate how money does and does not move around the world does kind of feel like it was part 1 of a 2-part plan. I hope not though. I don't have a theory about what step 2 would be, and I'm not someone who spends any time on conspiracy theories, but the last 2 years have been stranger than any conspiracy theory I've ever heard.
Facts don’t care about your feelings
By the pricking of my thumbs, something wicked this way comes.
WWIII, global debt collapse, famine, worst stagflation in history, developing counties collapsing, global drought... whats to lose sleep about? None in our control. Just live your life as best you can.
Michael, I started a war. I priced my condo at $429K with too many upgrades to list, right after OpenDoor bought an identical floor plan with no upgrades for $453K and they priced it at $485K. Today is my closing. It took exactly 35 days from listing to closing. Now that I made dozens of people angry for selling cheap, I’m relieved. I made a Canadian family happy. They escaped Canada but not as snowbirds, they literally gave up on what they suspect, future communism.
Congrats Tony for not only selling for the real price but to selling to a real family who will live in the house and not an institutional investor like open door👌
Take three minutes to learn what communism is, then lie down in traffic once the unbearable shame of your comment hits you.
I'm glad they escaped that hellhole called Canada. I remember the last time I was there and a Canadian bumped into me and said "Sorry". I'm scarred for life, man.
@@MichaelBordenaro … thank you brother. Michael, the condo OpenDoor bought for $453K and listed it for $485K, is now at $430K.
I’m sure they can afford to lose the $23K plus the lower offers they will get.
@@Falconlibrary I'm sorry but we Canadians don't automatically say I'm sorry all the... Dammit, I am doing it! Oh, and sorry for swearing.
Purchased in Broward County 2019 for 560k and now they are asking 1.4M up in till last month that is, reductions are happening like crazy its unsustainable you cannot have an over 100% price increase in less than three years this cannot continue.
Thats exactly right!!
Unless BlackRock comes back with more Fed cash from the next bail-out...
Take the cash and wait for the correction… it’s only paper equity now. My advice. I sold in similar run up to 2008. Exact same thing in California. I could smell the FOMO
There goes my urge to buy in Florida..I'll wait for a crash 💥
Depending on the area, housing is 25% to 75% overvalued, no thanks.
Big facts. I'm not selling my house that I inherited. My mom passed away earlier this year and left it to me and my brother. If I tried to sell the same house and buy a property of similiar value, the mortgage would be over twice as much. My mortgage is cheap and I'm grateful.
I work for a major retailer (consumer goods) as side hustle. Business is busier than ever. Can't obtain employees; people seem to have multiple side jobs and don't prioritize an additional one. Also, some people practice the "silent resignation" meaning they appear as a warm body only, collect their wages, while contributing very minimal value. This is what employers have to content with now...........
I have no remorse for not buying a house last year. Sorry, I have never had FOMO and probably never will. I have never over paid the asking price and never will. One thing in my short life that I have noticed is, things always change. Just as quick as houses went up houses will fall...once unemployment goes up. I predict 6% unemployment will crash the market. And I might be one who loses my job.
I have never purchased a property over asking price. I had to make bids over asking just to get a bid in and I wasn’t sure I liked them. I let them go. In the past ( 90) I sold a small house that I had for two years and just broke even. We owned two homes, what a drag. We purchased one that we stayed in for 19 years. I learned my lesson. Get what you want, as close as you can and don’t over pay.
Yup same here. We’ve bought everything what we have cash on hand! If the house in my area now starting at $900k, so be it! Who cares! I dont want to owe mortgage over $1M & can lose the job within days! Your life savings will go down to the drain!
you will be the one.
@@edmundmcgrath213 thank you... you are very kind 😇
@@willlywillly I meant you will not be the one.
The other 31% recently overpaid for a home. That’s to bad!
Very likely looking at what some people have done to get a place!
Thanks again! Your insight is so helpful 😊
As a retail manger of a multi location retail space I believe it's more than just the housing market. We had a 35% decrease in sales compared to July 2021 and from my point of view it's a slow burn but if this keeps up it's very possible we will have to close our doors. We are an established chain in the area and have been open for 9 years.
Great info, thank you so much!!
Thanks so much for another wonderful head ups👏👍🙏💞
Thank you Michael for sharing and being on top of things. 🥰
There used to be forclosures and hud houses at many areas but now big companys are buying out a lot of areas but i think this has now ended.
Seems like a lot of this is happening in the Southwest (like Vegas) but we don't see it here on the East coast yet. Houses are going under contract quickly. I'm guessing it's pent up demand. Million dollar homes are slow movers but fixer-uppers and 200-300K homes disappear overnight.
I think its also because the east coast saw less of a boom than the western states as teh market started going crazy.
Check in margate fl house 350-450 a lot. Not too expensive
1. 200k-300k are all people can qualify for now and 2. Everybody expects interest rates to go up so it's more FOMO.
In Philadelpia,PA for sale signs everywhere ,no buyers .
I have a house in Vegas and one in New England. If you just use your own got feeling and common sense you can look at Las Vegas and see for example a small postage stamp size lot generic cookie-cutter stucco home with no yard with the cinderblock wall around it 5 feet away from the neighbor to the right to the left and behind that went from $200,000-$600,000 and just know irrespective of all of the stats in metrics and trendlines that it just isn't worth it. In central Connecticut, you look at a beautiful rolling 3 acres of green entries privacy and a house with some character may be a post and beam construction home listed for the same $600,000 and you just can telling your got that that's worth it in the one in Vegas is not. There are all types of reasons for this. New builds in the Northeast are rare. It's not a market with heavy institutional Wall Street investment money. It's not a huge second-home market. It's not some go-go air B&B town. Vegas Phoenix and dozens of other cities are dicey. The ones that went up by 300% are a time bomb waiting to explode but still here in Northeast the prices have gone up maybe 50% 60% but they haven't gone up by 300% so again intuitively it just makes sense that it's a better product, More for your money and has not experienced the wild updrafts of ridiculously overpriced generic stucco uninteresting cities like Phoenix and Las Vegas and others
It just begun to crash. In Florida, homes went up 50 percent or more.
Ready to buy in Florida and waiting
Minus a total economic collapse, due to increased building cost, hyper inflation and supply issues, the national market will only drop 5-20% over the next two years before rebound.
There's no bubble and I'm guessing all these people calling for a crash are the same people who were saying buy buy buy in 2005-08'.
Revisit this thread in two years and you will see i was correct.
I love listening to your analysis, thank you
People need to stop associating the overnight fed lending rate (aka Powell) with long term loan rates that set by the individual lenders based on LONG TERM RATES. Banks will drop rates when they have to sell mortgages or go bankrupt. Doesn’t anyone look at past data?
People regretting “missing out” will feel better when 2019 prices come back. And you can still lowball for extras
I said a few weeks ago that I quit watching this channel. I never quit. Like you I too believe we are in trouble with the housing market. Keep up the good work.
I look forward to your videos everyday..thanks Michael..you cover a lot 😎
I appreciate that!
Great video and very informative. On a brighter note… where have you been walking around in your recent videos? Is that Miami Beach or a different area of Miami ? It’s gorgeous!
Good video Michael as always keep up the great work.
In Utah 200%+ inventory YOY, my best friend says home loans are down 75% from the past 2 years. He’s nearly stopped dead in his tracks after such an amazing run. This will be as bad as 2008 for sure… esp since we kicked the can for 2 years. It’s gonna be bad!!!
I think the same! Dont know how some can't see that...
Minus a total economic collapse, due to increased building cost, hyper inflation and supply issues, the national market will only drop 5-20% over the next two years before rebound.
There's no bubble and I'm guessing all these people calling for a crash are the same people who were saying buy buy buy in 2005-08'.
Revisit this thread in two years and you will see i was correct.
@@simrdownmon6431 home values double in less then two years and you call no bubble? RRRRRIIIIIIGHT!!! That’s totally normal. Esp when the entire world was shut down for a year. Makes perfect sense.
As a millenial I do feel I missed the boat as I could’ve bought two years ago. At that time though I would have depleted my savings and had no emergency fund. Went the cautious route and continued to save and the market went crazy.
I just bought a place last week but it is a fixer upper. Not ideal but didn’t want to risk missing another chance.
I wouldn’t regret it too much because it sounds like you weren’t actually ready to buy even though the opportunity was there. If one small thing would’ve went wrong you could’ve lost your home. Hope you have more in savings now that you are a new homeowner.
You can still save up while you’re there bro. Your good.
And don’t feel bad when a similar home in the same location has lower price.
You did the right thing. Nobody could have predicted the government would have handed out $10 trillion in free money over the next 18 months, completely crippling small businesses and supply chains, and destroying small businesses' abilities to find employees. Only huge corporations and institutional investors that have ties to politicians got an early warning on that one. The single largest, most corrupt insider trade of all time. Trillions of dollars ended up in the hands of the top couple hundred corporations and investors, and so a couple billion made it into the hands of a couple hundred politicians as a result. Excellent.
Hind sight is 20/20. You did the right thing at the time.
That was. a lot of good news. I really wanted to move down to that area in Florida, but couldn't find anything that wasn't over priced. But now, it sounds like I move there, rent....and watch the market to see if I can buy...
One of my favorite parts of your channel is trying to figure out what neighborhood you are taking your daily walks in. I said to my husband it looks like you are near my old (well new now since it was rebuilt) High School.. Go Beach High Class of 75 "the best alive"...LOl... anyway I was right, since you did mention it... not always easy to figure out where you are since so many of the homes have been torn down and or have been renovated. My dad still lives down there in Bay Harbor so I still go down there a few times a yr. but it is still so much fun for me to watch you walk around in my old stomping grounds!!! :) And yes the rent is now crazy here where we are in Bradenton/Sarasota as you mentioned... Thankfully we own!!!
That must be really cool for you! I can't believe how much its changed just in the 14 years I've been here! Its happening fast. Bay Harbor is great, I only did one there so for, but I'll be back👌. Glad to keep you guessing 😄
11:15
One the saving rates being the lowest since 2008. At first I was like is that adjusted for inflation? But thinking about it; if it was not adjusted for inflation that means we would have even less of a saving rate than 2008.
Good question, it didn't say but you're right, could be even lower! With personal debt going up, I wouldn't be surprised if it was.
people have conveniently avoided the topic of foreclosures, this is going to come back to bite them.
I appreciate your point about being Financially responsible .... there is a lot that can be said about that point. And, it's likely that everyone reading this can improve something in this area.
I think the bigger issue, for us on the WEST coast, is that since 2000 houses are up 700% - 900% while incomes over this same time is only up 30%- 40% at best. Has anyone doubled their income in the past 20 years. There's not much that being financially responsible can fix when housing out runs incomes year over year. We need hard-core reforms, real-estate works so much differently in different countries. I'm just doing to call it out--there is widespread systemic corruption in the RE/FinTech markets.
Yes absolutely, people like to cry but I would like know how much grit and effort the criers have put in before crying. And you said it, today houses make more than people!
Please provide link that shows 700%-900% increase in home prices anywhere in Cali. TIA
Minus a total economic collapse, due to increased building cost, hyper inflation and supply issues, the national market will only drop 5-20% over the next two years before rebound.
There's no bubble and I'm guessing all these people calling for a crash are the same people who were saying buy buy buy in 2005-08'.
Revisit this thread in two years and you will see i was correct.
What a great content! Its a blast watching your analysis! One question - what in situation where developer cant sell home, it can always sack people and wait for price going up, not selling properties with lose - developers dont pay for empty properties ? Can they just keep them and wait for increase? Maintenance would be minimal I reckon (this is something they mention they could do for example in Poland - but I dont know how it is in USA).
That was happening at start of pandemic they waited and sold high cost
Your an excellent realtor ! I wish California realtors could mirror you and your ethics! I know I live in northern CA 🎬
Great real time Intel on the R/E Market, Thank you, Michael !!
My pleasure Jim, thanks for being here!
Hi Michael. Another great video. Keep up the good work.
Another great show. Is there any insight into those that are building rather than buying. I see a lot of videos showing big housing tracts sitting idle. But those are usually developers. What about folks that are having a home built. Building materials were through the roof, but the general slowdown in construction has to have reduced demand. If building material prices collapse, it may be something that benefits those building a new primary residence.
Dan over at I Allegedly was telling us today that Amazon has quietly laid off 100K employees over the last few months. The Tech layoffs are north of 40K and climbing. GEICO just shut down all their physical offices in California. Dan's out of Southern California and does his walking financial reports on the beach, parks or city streets.
I watch Dan everyday too! Havent seen the one from today yet. I usually only have time to watch at night. I think more layoffs will be coming as well.
@@MichaelBordenaro I love Dan's daily reports.
@@als7594 me too!
He's good
SW FL is double or more past 1 year alone
Mike!!!
When are you going to walk around the poor neighborhoods of all the people who have been left out in this economy who favors the lazy rich living off the Fed, Tax and Trickle Down Economics policies?
What we have done to the working class is beyond criminal..
I probably won't for my own safety lol 😆
@@MichaelBordenaro 😂
Not "we." D.C. and moron DEM voters wanting free hand-outs, a free lunch, no work, and another stimulus check of phony "money."
yes walk Brownsville or Little Haiti, these areas make miami look too nice and will encourage people to move here
@@ryanwright9460 German tourists got murdered by that delusion.
Mortgage companies are laying employees off.
Yes they are
Palm Beach County listings are reducing prices left and right, especially new construction
Yep I saw that too, and even mentioned that in a recent video. Thanks for adding it here!
Just bought a house listing for $1.2m for $930m. GL to all those waiting for more drop
Lay offs are starting.
Another seller from Austin TX made less than if they’d had put on market 4 months earlier. Agent called during our closing alerting them that the market is “ going down “. Said he’d list 2 sales from buyers canceling, 1 was laid off
There you go! Yet I see a couple people in here denying this happening. Thanks for mentioning this.
@@MichaelBordenaro my shipping center owner pointed out a boxed holding a laptop. Being Fed Ex’d back to employee. Young Tech worker hired and then laid off a week later. She said it was the same story with a friend of hers
A RE agent outside of Tucson AZ told my sister the builders have stopped in the area
Correction, box being sent back to employer.
Good one Michael. My neighbor down the street in NC still house for sale. They listed it like they were mid-pandemic. Interested to see what happens there. I believe Miami will probably be last market in FL to crash as it being propped up by foreign investors.
Thanks! Some sellers take longer to catch on than others I suppose. Yes I think Miami will weather this crash much better than the previous one bc of so much foreign investment here. It is a unique sector of FL for sure.
We’re likely misusing the term “crash.” In most areas there will be a definite slowdown in increases of home prices, but it’s not likely that homes will start to be listed at significantly lower prices, which would actually be indicative of a crash. Time will tell.
@@MichaelBordenaro CCP Chinese (communist party members or approved by the CCP to leave the country) bought houses in California with $500,000 cash and nobody ever checked on where that cash came from and how it was obtained. It was essentially money-laundering of corruption money (bribes and cheating on contracts within China). No other country in the world allows millions of aliens (foreign nationals) to buy up houses and land like the U.S. did. It is certainly not reciprocal for an American expat abroad. Now the Chinese also have huge American farms and, worse, the water rights to entire regions of a state. (Gov. DeSantis is correct, but "fighting" them is a weak response. Congress needs to BAN aliens from buying U.S. real estate, period.)
I am so loving these. And appreciate your perspective
Michael would enjoy your thoughts on Open Door. Strange indeed what they have done at least up here in Pinellas. What I see is time and time again, they pay easily 50k - 75k above value. Then a light flip and relist for even higher. Of course the homes don't sell and gradually come down, to at or lower than their purchase price. But the damage is done. Their purchase becomes the comp which new prices are set from. It's almost as if they are inflating prices intentionally.
Zillow did the same! Shame on them
After trying to do the right thing in the midst of marriage dissolution, I ended up without a home. The world doesn't owe me anything but it sure would be great to see a major correction so I can buy something.
No offense, realize you're just sharing information from a survey, but 20 % of Americans can't tell you who the president is or whether Canada is in Europe. I don't put too much stock in surveys
I hear you, but it makes for interesting conversation, but I know what you mean. Used to watch Jay Leno's Jay Walking and it can be astonishing how dumb some people are 😲
I just keep waiting to see the prices really drop, but like you said, that may be a while longer. Great video!
how bout all the people that have arm mortgages or home equity lines of credit they were at 2% now they jumped to 6% and going higher.. Foreclosure will be up big time
69% - nice
Do we have a definition of the word “crash” or does it depend on who you ask? Realtors in my area keep saying “Prices are going down!”. Well yeah, when a neighbors home sold for $450k 3 months ago during peak, you list yours now at $465k and end up getting $440. Then frantically declare $25k loss. The home was priced too high to begin with for the current market.
Unfortunately no. It would be nice if there was some sort of standard definition for it but it’s open to interpretation. My opinion 20% or more reduction in prices is a Crash
@@MichaelBordenaro crash is a house in my neighborhood selling for $1.2M in April, and the exact same floor plan right across the street, in very similar condition (if not better), just went pending for $950k.
Crash would be a return to pre-pandemic prices, which will require a huge collapse the likes of which we have yet to see. I know it's inconceivable to a lot of folks, but house prices doubling in two years was inconceivable in 2019-20, wasn't it? These are strange days, indeed.
The government will just change the definition on us. Lol
Minus a total economic collapse, due to increased building cost, hyper inflation and supply issues, the national market will only drop 5-20% over the next two years before rebound.
There's no bubble and I'm guessing all these people calling for a crash are the same people who were saying buy buy buy in 2005-08'.
Revisit this thread in two years and you will see i was correct.
Cambridge was already overpriced.
Hi Michael, what camera you use to record the videos?
He uses the iPhone 13 Pro Max 👍
Isn’t the public usually wrong🤔
I guess we'll find out!
Not always. Also, many economic variables work, up to a point, as self-fulfilling prophecies
Also, we are all part of the public, so...
12% correction is not a correction when some values have gone 100% up 🤦♂️. Compounded on mortgage costs doubling this half the house you could have afforded. Screwed and screwed again for the middle / lower class ( the rich got richer though offloading housing rentals funny enough )
I don't know what it is but I believe you are a honest man! Keep it up
I appreciate that Robert, I consider myself to be one, thanks for watching!
Here in CA, we already see people dropping homes $100,000 on a 1.5 million dollar home. Not sure what they close at, but, still good things are deflating.
I have seen this as well on many of these walks showing these expensive houses big price cuts some of them up to 400 K
Great content as usual Michael. Amazing how you just keep talking without any notes or god forbid, teleprompter. LOL How do you do it?
Still hoping to relocate to Florida 🙏Hope the rental rent will drop a little tooo
The reason I suspect that the housing crash will be significant, sudden and take less that two years, is the amount of speculation and the above average percentage of sales being investors. Once rents start to drop, due to an economic pull back, cash flow will disappear for those speculators that over paid. The “bullwhip effect” in reduced rental income and housing prices will cause many investors to default which will lead to bank liquidity problems and make 2008 pale in comparison. It’s my opinion that 1/4 if not 1/2 of banks will fail. Once this toxic debt is cleared out of the system it will be a once in a century opportunity to buy real estate for much less than it cost to build it. The reason I think the “Fed put” is over, and there will be no more QE and interest rate drops, is because of war. In order to fund the war the dollar needs to be strong. For a strong dollar interest rates need to go up to fight inflation. In my opinion everything will be sacrificed to keep the dollar strong against other currency’s.
Thank you for bringing us the truth of what's really happening Michael, unlike our so-called government.
You’re very welcome Jennifer!
Fight for a country you would love to live in. This is our stand, everywhere in the world. There's nowhere to run
and over 30% Americans still think biden is doing a good job 😂
Thats not that many
Even democrats running for re-election know he’s toxic they don’t want his help in their districts.
It's 30% too many let's go Brandon
I like that number! 😃
If you don't already own a home in Florida currently, you're basically pretty much screwed! Blackrock and other hedge fund investment firms are going to make sure they keep squeezing you out unless you have some serious money to compete with! You cannot compare 2022-23 to 2008. Different game and the rules have changed. AB&B & VRBO were not a thing back then either.
Their circumstances and opportunities are different than yours. There maybe many reasons why they don't have savings including not having enough to make ends meet. Count your Blessings.
I very much appreciate/trust your incite and information.
I certainly am grateful for what I have, and I know I have also worked extremely hard and earned every bit of it 👍 Glad you enjoyed the video!
Nice
In 2010 I was 50 years old when I bought my condo. Take the opportunity when it happens because if I never purchased my condo my financial life would be really bad paying rent. In two years I will retire my condo will be paid off.
Absolutely grab the opportunity when you can and if you long term like yourself, you should be alright
How much for those homes under construction that you walked by? What's the cost per sq ft?
I didn't check if they are listed for sale But probably 6 mil +
@@MichaelBordenaro thanks, so Tiburon CA like prices
Fear of missing out (FOMO) is essentially the opposite of buyers remorse.
Yes but only if its acted on. FOMO buyers actually bought, these people regret not buying
Before we start painting a completely bleak picture - which, like you point out, may create a self fulfilling prophecy - I'd like to mention a couple of things that are important when looking at stats. For example, while it IS correct that the US personal savings rate is at its lowest since 2009 it is actually pretty much on the average level since 1999. And the drop could very well be a reaction to extremely high savings rates during the pandemic reaching over 20%.
But we also need to look at that in combination with household debt which "decreased to 78 percent of GDP in the fourth quarter of 2021 from 78.50 percent of GDP in the third quarter of 2021" - such low levels have not been seen in the US since 2003.
Sources: Bank for international Settlements. and U.S. Bureau of Economic Analysis
Thanks for pointing this out Nick! I think things could go either way at this point, so will be interesting to see if Americans can pull through this unscathed.
@@MichaelBordenaro Personally I think you are very right that US housing will see a healthy downward correction (some like to call it a crash ...).
The economic picture is very muddled at the moment and influenced by so many abnormally huge factors globally that I understand the government is hesitating calling it one way or another (I have no political stake in the US). First crazy high inflation, driven by oil, food (Ukraine) and supply line issues (China lockdown & Covid). But we are seeing oil prices stabilize and grain being shipped again and metal prices dropping like a rock (for example copper was 5000$ in March and is 3500$ now), AND so much warehouse inventory piling up on the US west coast (Inland Empire) due to panic buying by companies that it's becoming a problem and will result in downward pressure on imported goods because they have to get rid of the inventory, not to mention the effect of the strong dollar which does the same.
The problem with inflation figures is that they are annualized, so the latest data of around 9% is likely the result of extreme fluctuations around March April, but as things settle down we should see inflation figures go down too.
There is no doubt, however, that those on the lowest pay grades and fixed income are hurting, and hurting the most.
See Reuters headline today: "America's biggest warehouse is running out of room. It's about to get worse"
You could be 40, have worked since the first week of your 16th birthday, had few gaps, and it's still not enough have to afford a home, relatively to where you would have to work to even come close to a livable wage. How do you gain traction when every time you get a raise, inflation just eats at it? We haven't gained real ground in 40 years. 2 incomes aren't enough. Hasn't been in quite a while.
I suppose but if you're "moving up" in the world and spending and saving wisely, there have have been opportunities, especially in more affordable areas of the country. But no doubt it takes 2 incomes these days!
Bradenton rental market, I was renting on Perico Island last year for 1300, when I moved out there were NO Apartments available I bought and moved out this April, I flipped the property in St Pete due to the HOA and moved back to Perico, apartments are now 17-1800 and they had 25 open apartments.
that house going up it like ...a $10,000,000 for a house under 2000 sq ft right
The fact this many people think there will be a crash should tell you there will not be a crash. Pretty sure 69% of the public did not think there would be a housing crash around 2008.
We’re likely to see a modest correction and that’s it.
Yet no major changes are occurring in select areas. These TH-cam housing market crash videos are doing great though!
Select areas is your key phrase. Plenty of places are seeing massive change right now, and thats how it starts.
My good friend who is a super young Gen X, him and his lady bought a 5th wheel and have told me they never plan to buy a home unless they become suuuper affordable. It will be interesting how many people will be buying when they've already invested into alternative living situations. Maybe not a big percentage but could affect the trend if millennials anchor different permanent living situations. I'm boycotting the housing market as a millennial too. We have to get back to 25% of wage affordability range again before I'm even looking.
That is an interesting story, we'll be seeing how these new mentalities towards housing will shake out in the coming decade.
98% of all surveys are 99% bullshit
The people are right but the government will not allow it to crash hard.
That is my concern as well
If you trust the government, I dont.
To pretend you are resigned to government intervention rather than to denounce it is tantamount to being a cheerleader for such intervention is a poorly guised crime. All the “free market” folks are so subsidized they don’t know what real life is like anymore. They pulled up the ladder for new entrants to the housing markets and are content to spit on the youth from their treehouses.
financially responsible is the key word... $5 cup of coffee is not... Yes, you are correct 2 years or longer for some normalcy to return to our area... Many layoffs are coming as the goal is global economic reset ...
Absolutely! I know other people my age that literally blow all their money and then some on travel. Awesome, you saw the world, and now you're broke. Have fun struggling with the rest of the poor.
@@MichaelBordenaro I make coffee at home, Bustillo or Pilon is better coming out of our coffee pot, S5 per day equates to $150- that money could have gone into a great mutual fund or saving towards a down payment.....
My condo is popping !!!!
How would you define a market crash? 10%-20% down?
I personally would say 20% or more would be a good indicator, but there is not "official" number
Michael, are you hearing any rumors of mortgages going to 40 year terms?
Hi Michael I watched your video on California. I know you mentioned Marin County as your favorite area.
I live one county north in Sonoma County. After 20 years living in San Francisco, where I live is paradise. I live in Guerneville but there are other small towns ,Monte Rio and Rio Nido near me. This is the wine country grapes all around. Not cheap, but less than San Francisco to rent or buy.
I enjoy wine country as well! That whole area just north of the Golden Gate is special
80% may say they aren't going to sell until they lose their job, their credit card debt with increasing rates catches up, or the property taxes, repairs/upkeep, insurance, and ridiculously high car payments all catch up.
Most foreclosures take on average 6+mo to complete, it took 2+ years for the fallout from 06-08 to be realized in the housing markets despite early signs of failure and to add to all of it the Fed is in no position to step in at this point.
We are only now in mid 2022 starting to see a "slowing" housing market, I expect we won't realize the full fallout until 24-26 and possibly longer. The world wasn't born in a day and it won't die off in one either.
Oh and none of this takes into account the fact that based on average incomes across the country most people can't afford a house, which to all the low level investors hoarding houses hoping to profit off rent we saw how that worked out in 08 as well. Family friend owned 4 houses at the height of the collapse, lost all of them, had to file for bankruptcy, and ended up in a small manufactured home for the next decade. The due from the greed boom will catch up in the same fashion, history repeats itself.
The length of the foreclosure process can change overnight when the banks get desperate enough. I expect to see them do it in 60 days or less when they have decided, finally, to do it.
most Mills are debt loaders so very hard to afford homes in most states. Usually having an expensive car, is all there is.
Buying RE is never tricky in the USA if you follow and study macro economics. it takes effort and prices will drop to 2019 level at minimum. The era of artificial low interest and lending rates are done. That’s your present from the FED and they’ve created this massive bubble.
You think is bad in the US!? In Canada the average price is 746k= 580K USD.😓
Oh I know you guys have it even worse!
that open field is for sale at $70.000.000 an acre right.......
Haha if it were for sale, that would surely be the price 😄
"Life is what happens to you when you are busy making other plans" (Beautiful Boy - John Lennon) - Great reference and great video :D
That’s the one Andres! It’s a great saying thanks for watching
Hi Micheal, I watch your videos all the time. We just retired and sold our home in April. We go 30 grand over asking price. We are taking your advice and looking to buy in the next year. Possibly, looking in Florida, northwest arkansas and ocean springs ms. Colorado is just too expensive, we're looking for retirement a home on a retirement budget. What's your prediction of the best time to get serious on a purchase?
Nice! congrats on your recent sale! More inventory is starting to crop up in most of FL, so I would see what happens for the rest of this year, and then maybe make your decision from there. If prices havent dropped in a meaningful amount in your desired area, then maybe think about giving it a go early next year, but if prices continue to fall, then longer term wait would be better.
@@MichaelBordenaro thank you
As a satisfied Florida resident, I’d still suggest you look strongly at NW Arkansas. The one thing I dislike most is the hurricanes. They are extremely disruptive and not something you really want to deal with on occasion in retirement. Of course, there are tornadoes in Arkansas, but they are much less likely to hit you than hurricanes in Florida. NW Arkansas will be considerably less expensive than most places in Florida. I grew up not far from there.
@@craftsmanctfl3493 thank you. I'd love to hear anything you'd like to share about NWA. So far, I'm not seeing home prices lower than Florida, but waiting and hoping to see something give. We're particularly looking at Fayetteville, Springdale or Roger's. Any advice is welcomed.
@@deniserobinson7979 If you want to be around more activity and some culture, Fayetteville would be good, although the others aren’t far away. There’s a retirement community, Bella Vista, that’s been in the area several decades. You might find some bargains there. You also might look at Hot Springs Village, a big retirement community on a lake. It’s actually southwest of Little Rock, so not really in NWA, but with a large lake and lots of trees. A variety of price ranges there. As you know, prices everywhere are up from 2-3 years ago, but I expect fall and winter are slow seasons in NWA and HSP, so you might find a deal or two.
Michael I think we’re in a recession because if I look at fuel prices fuel prices trickle down because I am a truck driver and with Tina did use a pump for I live in Rhode Island or in Ohio we’re spending between 4 to 5 dollars a gallon of diesel fuel and then that gets passed down to the consumer so the transportation cost through the roof so I think as long as Mr. Biden doesn’t do any more energy it’s going to be a recession for a while but great Contin I have bought a house in Cape Coral Florida at 2021 and I paid a little bit of a 304
stocks looking grim- Uranium lokking strong
Technical Note: "Life is What Happens to You While You're Busy Making Other Plans" was used in his "Beautiful Boy (Darling Boy)" song from the 1980 "Double Fantasy" album with Yoko, but he was quoting a line from Allen Saunders' 1957 Readers Digest article. John was singing to his son Sean.
I don't believe this is a good time to buy ..the prices is still high they have to drop more for me to buy .
I’m imagining that after November 8th Washington spending trillions and trillions to buy votes is going to grind to a halt and 2023 and 2024 will be stagnant and a stalemate.
Michael check on margate fl let peoples know where the south still affordable. I live here and safe not too crazy
I was just up that way last week and did a video there!
@@MichaelBordenaro I didn’t see the video can u please share
im 73 there image is more important than there wellbeing