It could happen. Young people raised by screens and helicopter parents aren't viable adults and will never earn any real money so there really won't be any high income buyers left to drive up the prices. Owning a home is going out of style also a bit because people would rather have a life outside of constantly maintaining an over priced piece of trash home that majority of home buyers regret purchasing
Interest rates mean diddly squat when the house is overpriced by $300000 to $400000. Come on lady, quit acting like interest rates are the PROBLEM. Its the home PRICES that have floated off from reality.
Home prices rose to those levels ALSO because of interest rates. Namely, being so low that the monthly payment made these higher numbers possible in the first place.
@@Freerider93 im just not dumb enough to purchase at the peak. lots of folks purchased who could "afford" it, but now can't "afford" their overpriced homes now and selling. people can buy anything, but "affording" is a whole different ball game.
Exactly. Nobody wants to pay 450k for a 200k house. It’s ridiculous. I understand going up by 3% every year but this is too much. I don’t want to buy a house right now because of that.
First-time home ownership is OVER. "Starter home" are over 400k average income is 58k. We've put in 77 bids in middle TN on first home and were outbid by cash investors EVERY TIME. Now, we're priced out due to price and mortgage rates. Wonder why Millenials and Gen Z are doom spending? Not getting married? Not starting families? Why is civil unrest growing while the wealth gap is larger than it ever has been in history? It's because this economy is not for us, it never has been since we've been around. It priced us out and left us behind before we got here. This doesn't end well for society at every socioeconomic level..
That's 3000. " There are a total of 7,628,017 single-family homes in the state of California. This number is based on data from the United States Census Bureau's 2019 American Community Survey.Feb 16, 2023"
@@Singlesix6 and I only mentioned 3 companies at or above 1000 homes. There are many companies with homes in the hundreds. 2021 Berkeley estimates individuals only own 43% of homes in CA. Also 3000 homes in 1 area matters. 3000 homes in the socal area to go on sale would def make an impact.
That's a problem easily resolved with legislation. Corporations should not be allowed to own single-family homes in residential zones. If only government weren't so corrupt.
It has nothing to do with mortgage rates. It has everything to do with real estate being too overvalued and people not making enough money to afford these homes. The houses have got to come down as far as their selling price
If they're overvalued, they won't sell, and prices will drop. Simple supply-and-demand economics principle. If houses remain at current prices or increase further, then that's what they're worth, because they're selling.
It's funny they keep saying there's little supply of homes for people to get into. I'm seeing brand new homes just sitting because they cost too much. Been sitting empty going into the second year now. If these prices would drop people could afford to purchase a home.
Facts! They have no idea what they are talking about. Inventory is at N all time high. Especially in Florida. People with low interest rates have been seeing their mortgages increase do to higher property taxes and homeowners insurance and are still trying to sell. They are clueless
@@appletech9535 that’s just not realistic for everyone. Eventually, people will have to sell, instead of having that “my precious lotr” mentality with their holy and ungodly interest rate.
She says "If you wait there's a risk"....well unfortunately if you dont wait you have to buy at record prices and record high interest rates. Seems like the risk is worth it at this point.
@@mikejewell8518 thats a while away before interest rates drop enough to cause more demand. They need to get back to around 5% to start having a decent impact. In the meantime prices are falling in many markets. We dont know what unemployment will look like, inflation will look like, the economy will look like 6-12 months from now when interest rates finally fall (if they do). Supply is also rising. Demand can only drive prices up so far as unaffordability comes into play. Due to prices already rising 40-45% from 2019 unaffordability has already peaked for many. Credit card balances at all time high, deliquencies at highest levels since 2010, over 90 day deliquencies are sky rocketing. The future outlook shows this is not sustainable.
No one wants to sell - unless it is some sort of distress sale, homeowners are just not willing to sell - buying a new home (even a smaller one) is a pain.
Why would we sell? Let's say we do, and go, "Wow! Look at this pile of money!" Then what? We have to go live somewhere else. Apartments, strangers stacked on top of each other? No, thanks. Buy another house? Yikes! Look at the prices! Look at the interest rates! Nope. We're staying right here, in our paid-off house, even with increasing property taxes and utility bills.
This is the most frustrating part. How can sellers charge more for their home, get away with it, and interest rates go up as well? That is not how it’s supposed to work. If interest rates want to stay high, home prices will have to come down.
@@douglassmith9445supply curve is decreasing faster than the demand curve is decreasing, hence we have lower quantity supplied and higher prices Econ 101
@@douglassmith9445 Sellers aren't getting away with anything. Houses are selling at those prices so someone thinks the price it correct. Sellers do not set the mortgage rates. But back to who is buying. From what I have been reading it is people with money. In many areas 40% of the deals are to people who do not need financing. It probably explains why the average sales prices are going up while the number of sales are going down. People with that much cash don't buy cheaper houses and/or starter homes.
@@douglassmith9445 As long as enough of them sell at current prices, that's where they'll remain, or even go higher. It's a free market. They're worth what the market will bear.
Doesn't matter. Who will they rent too? Rental application demand is at all time lows so those morons can have fun holding onto assets that nobody really wants anymore
@@roythousand13 Everything is wrong with that. If single-family homes are gobbled up by large corporations as investments and for rentals, then no one will be able to find or afford a home of their own.
The historic nationwide overvalued/overpriced homes is the main issue, not the interest rates. No FOMO here, people have woken up. That's why realtors are/were getting sued and many stories/articles of buyer's regret.
@@mikejewell8518 but monthly supply of new homes is up to over 9 months of supply at the Macro level. Existing homes sales on the macro still low at 3.7, but is increasing.
Wall Street owns over 25% of the housing market and they don’t need to sell anything. It keeps the prices high even if buying houses slows down. Interest rates of course are an issue as well but when corporations buy houses for investment only it destroys the market.
Sorry but not going to happen anytime soon. We need to build over 2.3 million housing units PER YEAR for the next 5-10 years and then the correction will come. The new houses also need to be smaller in sq ft which means less expensive to build and thus a cheaper price for the buyers. Active listings on the market are at 780,000 right now which is still very low.
I would normally agree but not with current market conditions. I purchased my home 2 years ago with a 4% interest 30 year lock. If I was to purchase the same home now at the same price, with 7.5% 30 year lock, my monthly payments would be an extra 3k a month. I cannot afford to purchase the same house at the same price but with the increased interest rate.
@@jonnym4670 Prices have already skyrocketed. You're just protecting your equity. Homes are all at least $100k overpriced and vehicles are $10k overpriced. The rates aren't the problem.
@@jacobstrouble6631 yea trump shouldn't have fought with the feds to keep the rates low for so long they should have been higher long before I am not saying houses aren't over priced too but the interest rates going up also plays an impact in borrowing
There are still 200,000 less housing listings on the market compared to before Jan 2020. We won't see a price drop until there are many more active listings on the market.
Let me get this straight. Average price of a move in ready home - 450K. Payment = $1250 base. Interest at 8.5% = $2,210. Total monthly payment BEFORE taxes, insurance, PMI = $3,460. Keep voting blue no matter who!!!! Voting HAS consequences!!!
She couldn’t be more wrong. We all know that rates won’t go down in July. The earliest we could expect rates to drop a little would be September. October-February is the best time to get a better deal on a home. She just wants someone to FOMO buy because her earnings are way lower than usual during the busiest time of the year for home buying and selling.
I’d be happy to read your econometric analysis using causal inference tools that establish causality proving what she said is wrong. Send me the link and I’ll check it out
It's a shame corporate media rarely mentions big corporations and financial firms buying up the housing supply contributing to the higher home prices and more house builder choosing to rent houses rather than sell houses ensuring more Americans cannot own their homes but rent for life.
Meanwhile, equity investors continue to out-compete regular people looking for home ownership by offering cash which further concentrates wealth into the hands of a few. What a great thing unregulated capitalism is! What ever happened to the
Always a risk, waiting or not. Inventory is not the biggest issue since there’s lot of home on the market and being constructed. It’s about where you want to live and a push for foreign investment on single family homes. These studies are skewed for a reason.
She never said houses went on the market for sale. How are Redfin/Zillow keeping prices high? I’d love to read your econometric report on this that establishes causality using modern empirical techniques. Send me the link to it and I’ll give it a full read
@@mikejewell8518 it's simple, even for you. When real estate tech companies give their estimate of what a property is worth, then the seller tries to sell for that amount. In actuality the property is worth a lot less. List price does not equal what a property is worth. Also, "on the market" is a vague phrase that just means "for sale". Many properties are on the market and not on the MLS.
@@G._- The AVM estimates you are referring to are based on properties that recently SOLD in that area, controlling for things such as building characteristics and neighborhood characteristics using standard machine learning techniques. Hence, your standard Hedonic model type estimates. AVM and Home Price Index estimates are not perfect estimates but they are based on homes that were sold, which reveals peoples willingness to pay for a home. This is standard/basic revealed preferences economics which can be applied to any item sold on a market Sale prices lead to "Zestimates" not the other way around which you are claiming. Once again Id love to read your empirical analysis using modern econometrics tools that establish casualty that proves this rather basic economic theory wrong. Hint: You would need an Instrumental Variable that gives your the source of exogenous variation you need in order prove your reverse casualty claim. It's simple, even for you. Cheers 🍺
this is entirely clickbait because home sales are market driven, hot markets right now are hot, cold markets are cold, you can't just go and lump everything together. so stupid.
And there you have the difference between “Macro”economics and “Micro”economics. Everything she said was correct. The purpose of the interview was clearly for a broad Macroeconomic overview
Somehow interest rates HAVE to come down or there will just be gridlock for years to come. Whatever it takes - executive order, law changes, fed reducing interest rates, etc. And i understand its difficult to separate mortgage financing from financing of everything else but homes are FAR more important than other items people have to (or want to) finance.
3% interest rates were an anomaly. We are at historic average of 7% interest rates. It's a supply issue... More houses need to be built. That's it. Zoning laws that only allow for single family homes in the vast majority of places, have to end. Minneapolis is doing a good job of this, allowing lots of homes, including mixed use and multi-unit housing to be built.
@@designthedays yes, 3% rates were an anomaly but 5's have been around since the late 00s and 4's came not long after. Source - I got a 5.25% on a 30 year as a 25 year old in 2009 and then a 4.0% in 2015 as a 31 year old.
If you want home prices to drop, you need a bad enough recession where people lose their jobs and can't pay their mortgage. People in power don't like recessions, so they will do anything they can to stave one off; including unlimited amounts of stimulus to keep the economy going. This is why home prices keep going up.
Don’t wait it’s a risk😂😂😂 what’s the risk? Pay 30% more than the home is worth? In the northeast I’m watch inventory pile up, it’s still not a lot but it’s definitely piling up. Sit back and wait. Many people who bought in the last 3 years will soon be selling or letting it go. Unfortunately it’s not sustainable. Many people can afford 3-4K a month mortgages, it’s gonna come down to how many people will be willing to do it for the long term. That’s when the sh%€ will hit the fan.
The purpose of the interview was for a macroeconomic outlook, she was not implying that no heterogeneity existed within sub markets. There is a clear reason why there is a risk for waiting: if interest rates go down what do you think will happen to demand and as a result prices? basic high school Econ 101
When interest rates get cut a recession always follows if you're into history and facts and things like that. Your world of unicorns and rainbows are a fun thought though. You should go with that
@@mw5095 actually what you claim to be as a world of unicorns and rainbows is actually basic economics. If anything raising rates could cause a recession not lowering them.
Who would have ever thought a normal household couldn't afford a $3-6k a month house payment near their job, I mean even with the high inflation also these should just be flying off the market. Also you mean it's not normal for houses to double in a 4 year period in many areas, pricing out even higher income households in high income areas, no way. If things keep going half the population will be homeless and starving with a career.
It’s not just interest rates it’s everything. Look at the average price of homes to start with, then throw in the down payment, don’t forget homeowners insurance has gone through the roof too and some states it’s practically impossible to get unless your a millionaire. Car insurance depending on what state you’re in is going up also . Now look at the price of electricity, groceries, gas then throw in a few kids with that, I literally don’t know how people are making it these days. Maybe next time the reporter could actually take the time to look into the real issues and report on that
Sham interview redfin girl full of bologna talking about the problem are high interest rates, the real problem is the inflation and high asking prices.
I live in a city of 70,0000 that is about 20-30 miles from a major metro. My neighbor has had their home for sale for nearly 8 months now and I have seen very few tours of the home.
This means multiple offers $100k to $500k over beat because only ine contract beating its price higher. There is no trandparency on home prices and contracts accepted. Good agents will work together to get the buyer pay high commission.
No worries because home owners and investors firmly believe that they will just keep going up forever and never come down even though mortgage application demand are at all time lows and rental demand is at an all time low
That is exactly what is needed is more houses being built not more apartment buildings. So thankful we bought our tiny little 1949 Ranch 30 years ago interest was high back then 9.5% but the house was only $35,000 back then. We didn't buy a new car we bought a house while we could afford it new cars later in life. Houses in our neighborhood are now selling for over $200,000.00. Same old houses just got a face lift from rehabbers. I couldn't afford to sell and move somewhere else and honestly I love my house, my neighbors a lot of us have lived here 20 to 30 plus years. But yes we need to build homes like this, Starter Homes where people can live the American Dream. Anna In Ohio
Surely you don’t think comparing inventory from 2 years ago is a proper base for comparison 🤦🏾♂️ You have to look further back pre pandemic to look at long term trends
It has a lot to do with the fact that people aren’t interested in moving. We paid 11% and around that amount when buying homes in the 80’s-90’s so interest rates are only a problem in connection. with super high inflated house prices which we’ve been seeing for at least 6-8 years now. Everyone blames on Californian’s..right? Prices for houses 🏠 n my state quadrupled in three years. Lots of people buying second homes or investment properties
If no one buying, why not asked people looking for home why? Record inventory, record prices, & record stagnation means not free market, but centrally planned economy. Banks hold assets not incentivized to place homes on market for low valuation since this would cascade into lower existing asset valuation on their books. System not designed to ever have lower prices. Maybe Elon can create rich robots who will create demand for expensive homes.
Buy a house and you'll be broke asf in a year. Taxes, property taxes, school taxes, inflation, property value goes up so does insurance premiums, gas is up, electricity is up, everything is up.
I’d love to read your econometric report that uses modern empirical tools that establish causality that shows what the solution is. Send me the link and I’ll give it a full read
@@mikejewell8518 there’s plenty out there, look yourself. Solution #1 - don’t allow private companies to own homes. #2 tax people higher amounts that own multiple homes.
the banks are good they can just keep the houses they have empty and declare the losses from those homes from years back they won't have to buy taxes for awhile
Purchasing a stock may seem straightforward, but selecting the correct stock without a proven strategy can be exceedingly challenging. I've been working on expanding my $210K portfolio for a while, and my primary obstacle is the lack of clear entry and exit strategies. Any advice on this matter would be greatly appreciated.
The strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off
Forgive the side point, but is that a ficus tree? The Chief Economist for Redfin coming to you from an apartment that looks like a freshmen dorm -- seriously?! It may be a superficial point, but the Chief Economist from any company should not be doing a zoom call from any space that looks like this. Sorry, but perception does matter when it comes to credibility. Should have been in an office setting and more formally dressed (and before anyone goes there, yes, I would have made the same observation and criticism had this been a man).
@@tomlewis6430 when you start signing her check then your opinion will matter. Redfin signed her check in the past and obviously they are still signing them now so it much not be a problem with them
Quit framing Daryl Fairweather like she's some midwestern blue collar perspective. She's a coastal elitist from Seattle with her pronouns in her profile. Difficult for her to talk about the housing crisis when she's insulated by her high paying 6 figure job. Why not get some real people with real perspective to report on this?
If having someone trained in economics from UChicago who also is an investors in her personal time is not a “real perspective” then I don’t know what is Also, since your competent enough to discern good from bad perspectives, I would love to see your empirical analysis that uses modern econometric techniques that establish causality showing a “real perspective” Send me the link I’d be happy to give it a full read
Prices will never drop ! homeowners have roo much equity and will just charge high rent until they get the price they want. But a house, they ain't getting any cheaper.
HOME SALES DOWN 11% - But housing prices have not dropped.
Not yet….
Not.likely they will. They'll just sit until someone pays the asking price.
They aren’t anytime soon. Especially with huge corporations buying 30% of them and then renting them out.
@@Wolfcamp555 no one is paying asking anymore. Market is shifting.
The best we can hope for is that home prices will stagnate for several years. They will never go down across the board.
Make houses that American families can afford. Bring back those 100k- 179k homes!
Those are never coming back
@Freerider93 that's why Americans cant afford anything. That's the point I'm making.
Red states are cheaper than blue states
250-300k is more fair but will definitely not happen either
It could happen. Young people raised by screens and helicopter parents aren't viable adults and will never earn any real money so there really won't be any high income buyers left to drive up the prices. Owning a home is going out of style also a bit because people would rather have a life outside of constantly maintaining an over priced piece of trash home that majority of home buyers regret purchasing
Interest rates mean diddly squat when the house is overpriced by $300000 to $400000.
Come on lady, quit acting like interest rates are the PROBLEM. Its the home PRICES that have floated off from reality.
Home prices rose to those levels ALSO because of interest rates. Namely, being so low that the monthly payment made these higher numbers possible in the first place.
The problem is although you can't afford it, there are enough who can....
@@Freerider93 im just not dumb enough to purchase at the peak. lots of folks purchased who could "afford" it, but now can't "afford" their overpriced homes now and selling. people can buy anything, but "affording" is a whole different ball game.
Wrong. Interest rates means a $400k house payment now ijust as expensive as a $800k payment during covid
Exactly. Nobody wants to pay 450k for a 200k house. It’s ridiculous. I understand going up by 3% every year but this is too much. I don’t want to buy a house right now because of that.
"UNexpected drop"? have you been under a rock?
😂😂
Clearly not on TH-cam
Facts
Like isnt that the whole point of increaseing the interest rate so the market will slow down and people can catch up
Was 650k now it's 625k....just because they are dropping prices a little does not mean the average folks can afford that insane monthly payment.
it needs to drop by $200k-$400k
Tent--$50
Van--$1500
House--$412,000
Large cardboard box- $FREE
Where can you find a working van for $1,500!!??
$412,000? Not in CA. I wish!
Unless you're in coastal california, then it's House-$1mm
More Like:
Tent - $350
Van - $15,500
House - $229,000 (Lowest = Arkansas) to $787,000 (Highest = California) According to Redfin, in May 2024.
First-time home ownership is OVER. "Starter home" are over 400k average income is 58k.
We've put in 77 bids in middle TN on first home and were outbid by cash investors EVERY TIME. Now, we're priced out due to price and mortgage rates.
Wonder why Millenials and Gen Z are doom spending? Not getting married? Not starting families? Why is civil unrest growing while the wealth gap is larger than it ever has been in history?
It's because this economy is not for us, it never has been since we've been around. It priced us out and left us behind before we got here. This doesn't end well for society at every socioeconomic level..
This is all good news, earth needs less BS
Sean is such a goofball
No matter when you buy a home for the first time, you will experience first-time home ownership. (What you posted makes no sense.)
@@joesterling4299 Haha You’re right. I didn’t even realize that.
B/c private equity and Corp keep buying up homes. There are 3 Corp in CA that each own 1000 homes. Wtf.
That's 3000.
" There are a total of 7,628,017 single-family homes in the state of California. This number is based on data from the United States Census Bureau's 2019 American Community Survey.Feb 16, 2023"
@@Singlesix6 and I only mentioned 3 companies at or above 1000 homes. There are many companies with homes in the hundreds. 2021 Berkeley estimates individuals only own 43% of homes in CA.
Also 3000 homes in 1 area matters. 3000 homes in the socal area to go on sale would def make an impact.
That's a problem easily resolved with legislation. Corporations should not be allowed to own single-family homes in residential zones. If only government weren't so corrupt.
It has nothing to do with mortgage rates. It has everything to do with real estate being too overvalued and people not making enough money to afford these homes. The houses have got to come down as far as their selling price
It does. A lot of people have mortgages
If they're overvalued, they won't sell, and prices will drop. Simple supply-and-demand economics principle. If houses remain at current prices or increase further, then that's what they're worth, because they're selling.
It's funny they keep saying there's little supply of homes for people to get into. I'm seeing brand new homes just sitting because they cost too much. Been sitting empty going into the second year now. If these prices would drop people could afford to purchase a home.
Facts! They have no idea what they are talking about. Inventory is at N all time high. Especially in Florida. People with low interest rates have been seeing their mortgages increase do to higher property taxes and homeowners insurance and are still trying to sell. They are clueless
Why would I dump my 1.5% mortgage rate for an 8% one?
Because you probably don’t want to live in your current home for your entire life and interest rates will never go back to what they were previously?
@@douglassmith9445might have too lol…I’m at 3 percent now. Just gotta get creative on expanding or customizing this original house lol
@@appletech9535 that’s just not realistic for everyone. Eventually, people will have to sell, instead of having that “my precious lotr” mentality with their holy and ungodly interest rate.
Don't dump it, get a 2nd mortgage and rent off your 1.5% one to another family.
When did you get a 1.5% mortgage!? 50 years ago?? Shouldn’t you have paid that off by now? 🤨
She says "If you wait there's a risk"....well unfortunately if you dont wait you have to buy at record prices and record high interest rates. Seems like the risk is worth it at this point.
When interest rates go down what do you think will happen to demand and as a result prices?
@@mikejewell8518 thats a while away before interest rates drop enough to cause more demand. They need to get back to around 5% to start having a decent impact. In the meantime prices are falling in many markets. We dont know what unemployment will look like, inflation will look like, the economy will look like 6-12 months from now when interest rates finally fall (if they do). Supply is also rising. Demand can only drive prices up so far as unaffordability comes into play. Due to prices already rising 40-45% from 2019 unaffordability has already peaked for many. Credit card balances at all time high, deliquencies at highest levels since 2010, over 90 day deliquencies are sky rocketing. The future outlook shows this is not sustainable.
No one can afford the homes nor the interest rates. Builders shot there prices up sky high. Homes that where 280k are now 400k..... Won't work...
No one wants to sell - unless it is some sort of distress sale, homeowners are just not willing to sell - buying a new home (even a smaller one) is a pain.
Why would we sell? Let's say we do, and go, "Wow! Look at this pile of money!" Then what? We have to go live somewhere else. Apartments, strangers stacked on top of each other? No, thanks. Buy another house? Yikes! Look at the prices! Look at the interest rates! Nope. We're staying right here, in our paid-off house, even with increasing property taxes and utility bills.
If home prices went down as rates rose we would not have any housing issue. There is no balance in anything here in the USA.
This is the most frustrating part. How can sellers charge more for their home, get away with it, and interest rates go up as well? That is not how it’s supposed to work. If interest rates want to stay high, home prices will have to come down.
@@douglassmith9445 Supply and demand. Supply is currently too low and demand is too high, thus the situation we are now in.
@@douglassmith9445supply curve is decreasing faster than the demand curve is decreasing, hence we have lower quantity supplied and higher prices
Econ 101
@@douglassmith9445 Sellers aren't getting away with anything. Houses are selling at those prices so someone thinks the price it correct. Sellers do not set the mortgage rates.
But back to who is buying. From what I have been reading it is people with money. In many areas 40% of the deals are to people who do not need financing. It probably explains why the average sales prices are going up while the number of sales are going down. People with that much cash don't buy cheaper houses and/or starter homes.
@@douglassmith9445 As long as enough of them sell at current prices, that's where they'll remain, or even go higher. It's a free market. They're worth what the market will bear.
surely a real estate agent doesn't have a dog in this fight 😂
Don’t forget corporations have been buying up homes for rentals
Doesn't matter. Who will they rent too? Rental application demand is at all time lows so those morons can have fun holding onto assets that nobody really wants anymore
@@mw5095 send me the link to your report where you establish this causal relationship, or are you just regurgitating what you read online
What's wrong with that?
@@roythousand13 Everything is wrong with that. If single-family homes are gobbled up by large corporations as investments and for rentals, then no one will be able to find or afford a home of their own.
@@joesterling4299 , but that's the free market!
It’s just way too much not possible to sustain it
The historic nationwide overvalued/overpriced homes is the main issue, not the interest rates. No FOMO here, people have woken up. That's why realtors are/were getting sued and many stories/articles of buyer's regret.
Inventory is skyrocketing in Florida
Yup. Price cuts on almost all houses.
Increasing because homeowners insurance companies are canceling renewals in high risk areas.
The purpose for this interview was for a “Macro”economic outlook, She was not implying that there isn’t any heterogeneity within sub markets
@@mikejewell8518 but monthly supply of new homes is up to over 9 months of supply at the Macro level. Existing homes sales on the macro still low at 3.7, but is increasing.
Well when you find a place that’s affordable you’re outbid by a real estate company. You can’t win
Wall Street owns over 25% of the housing market and they don’t need to sell anything. It keeps the prices high even if buying houses slows down. Interest rates of course are an issue as well but when corporations buy houses for investment only it destroys the market.
Yes, yes, keep dropping. I am hoping we get a huge correction.
You must be a renter 😂
Sorry but not going to happen anytime soon. We need to build over 2.3 million housing units PER YEAR for the next 5-10 years and then the correction will come. The new houses also need to be smaller in sq ft which means less expensive to build and thus a cheaper price for the buyers. Active listings on the market are at 780,000 right now which is still very low.
any talk about interest rates is a lie. The rates are fine. The price is too high end of story.
I would normally agree but not with current market conditions. I purchased my home 2 years ago with a 4% interest 30 year lock. If I was to purchase the same home now at the same price, with 7.5% 30 year lock, my monthly payments would be an extra 3k a month. I cannot afford to purchase the same house at the same price but with the increased interest rate.
no they are high and its high for that very reason to stop the houses from prices from skyrocketing because everyone is looking to buy
Rates have tripled
@@jonnym4670 Prices have already skyrocketed. You're just protecting your equity. Homes are all at least $100k overpriced and vehicles are $10k overpriced. The rates aren't the problem.
@@jacobstrouble6631 yea trump shouldn't have fought with the feds to keep the rates low for so long they should have been higher long before I am not saying houses aren't over priced too but the interest rates going up also plays an impact in borrowing
There are still 200,000 less housing listings on the market compared to before Jan 2020. We won't see a price drop until there are many more active listings on the market.
Many people are sitting on cash waiting on prices to drop to buy their second house or add to their rental portfolio!
That’s me 😂
Recession is here.
No its not
@@dantheman6607 is so
Not even close
Let me get this straight. Average price of a move in ready home - 450K. Payment = $1250 base. Interest at 8.5% = $2,210. Total monthly payment BEFORE taxes, insurance, PMI = $3,460. Keep voting blue no matter who!!!! Voting HAS consequences!!!
Recession! Let's bring those high prices back down!
and insurance companies ain't insuring in Florida and California
Depends on the area
She couldn’t be more wrong. We all know that rates won’t go down in July. The earliest we could expect rates to drop a little would be September. October-February is the best time to get a better deal on a home. She just wants someone to FOMO buy because her earnings are way lower than usual during the busiest time of the year for home buying and selling.
I’d be happy to read your econometric analysis using causal inference tools that establish causality proving what she said is wrong. Send me the link and I’ll check it out
@@mikejewell8518 The last fed meeting with the probabilities posted of rate cuts for the upcoming months should be sufficient.
Nobody buying cause they can’t afford anything !!!
Crash incoming…
hahahahahahahahahha
You’ve been saying that the last 5 years 😂
People are competing against corporations. They don’t have a chance.
Facts🎯🎯🎯💯💯💯💯
Zillow - "price cut to 1.2mil" .... 😂😂
Old price: 1.201 mill😂
It's a shame corporate media rarely mentions big corporations and financial firms buying up the housing supply contributing to the higher home prices and more house builder choosing to rent houses rather than sell houses ensuring more Americans cannot own their homes but rent for life.
Meanwhile, equity investors continue to out-compete regular people looking for home ownership by offering cash which further concentrates wealth into the hands of a few. What a great thing unregulated capitalism is! What ever happened to the
Hello!!! Corporations are buying up all the starter homes, no one can afford a home now.
FACTS🎯🎯🎯💯💯💯💯💯
Always a risk, waiting or not. Inventory is not the biggest issue since there’s lot of home on the market and being constructed. It’s about where you want to live and a push for foreign investment on single family homes. These studies are skewed for a reason.
Wow, there really is a price Americans won't pay.
Sounds like an interview from 2007
That's a lie! There are plenty of houses on the market. It's companies like Redfin and Zillow keeping the prices high.
She never said houses went on the market for sale. How are Redfin/Zillow keeping prices high?
I’d love to read your econometric report on this that establishes causality using modern empirical techniques. Send me the link to it and I’ll give it a full read
@@mikejewell8518 it's simple, even for you. When real estate tech companies give their estimate of what a property is worth, then the seller tries to sell for that amount. In actuality the property is worth a lot less. List price does not equal what a property is worth. Also, "on the market" is a vague phrase that just means "for sale". Many properties are on the market and not on the MLS.
@@G._- The AVM estimates you are referring to are based on properties that recently SOLD in that area, controlling for things such as building characteristics and neighborhood characteristics using standard machine learning techniques. Hence, your standard Hedonic model type estimates.
AVM and Home Price Index estimates are not perfect estimates but they are based on homes that were sold, which reveals peoples willingness to pay for a home. This is standard/basic revealed preferences economics which can be applied to any item sold on a market
Sale prices lead to "Zestimates" not the other way around which you are claiming.
Once again Id love to read your empirical analysis using modern econometrics tools that establish casualty that proves this rather basic economic theory wrong.
Hint: You would need an Instrumental Variable that gives your the source of exogenous variation you need in order prove your reverse casualty claim.
It's simple, even for you.
Cheers 🍺
this is entirely clickbait because home sales are market driven, hot markets right now are hot, cold markets are cold, you can't just go and lump everything together. so stupid.
Exactly. I live in DC and none of this applies here lol
And there you have the difference between “Macro”economics and “Micro”economics.
Everything she said was correct. The purpose of the interview was clearly for a broad Macroeconomic overview
The commentator is clueless. Why not get someone with real experience to talk about this?
The interest rates need to go up!
Somehow interest rates HAVE to come down or there will just be gridlock for years to come.
Whatever it takes - executive order, law changes, fed reducing interest rates, etc.
And i understand its difficult to separate mortgage financing from financing of everything else but homes are FAR more important than other items people have to (or want to) finance.
Interest rates will come down once the market cools off. Next year.
3% interest rates were an anomaly. We are at historic average of 7% interest rates.
It's a supply issue...
More houses need to be built. That's it. Zoning laws that only allow for single family homes in the vast majority of places, have to end.
Minneapolis is doing a good job of this, allowing lots of homes, including mixed use and multi-unit housing to be built.
@@designthedays yes, 3% rates were an anomaly but 5's have been around since the late 00s and 4's came not long after.
Source - I got a 5.25% on a 30 year as a 25 year old in 2009 and then a 4.0% in 2015 as a 31 year old.
Too often they’ll set empty until they’re ran down.
If you want home prices to drop, you need a bad enough recession where people lose their jobs and can't pay their mortgage. People in power don't like recessions, so they will do anything they can to stave one off; including unlimited amounts of stimulus to keep the economy going. This is why home prices keep going up.
dude next door was trying to milk it for 407k 😂 ended up selling for 357k and credited the buyer 7k
Is that even a suprise? Cost of living is so high now
I am not paying 500k for 70k worth of materials
Not surprised. All the people I've grown up with the and none of them own a home.
Just the beginning.
Unless investors pick up the slack, but I dont think the numbers (rents vs prices) make sense for most normal investors.
Don’t wait it’s a risk😂😂😂 what’s the risk? Pay 30% more than the home is worth? In the northeast I’m watch inventory pile up, it’s still not a lot but it’s definitely piling up. Sit back and wait. Many people who bought in the last 3 years will soon be selling or letting it go. Unfortunately it’s not sustainable. Many people can afford 3-4K a month mortgages, it’s gonna come down to how many people will be willing to do it for the long term. That’s when the sh%€ will hit the fan.
The purpose of the interview was for a macroeconomic outlook, she was not implying that no heterogeneity existed within sub markets.
There is a clear reason why there is a risk for waiting: if interest rates go down what do you think will happen to demand and as a result prices?
basic high school Econ 101
😂😂
People think they'll be able to afford homes when interest rates go down, but house prices will just adjust accordingly....
When interest rates get cut a recession always follows if you're into history and facts and things like that. Your world of unicorns and rainbows are a fun thought though. You should go with that
@@mw5095 actually what you claim to be as a world of unicorns and rainbows is actually basic economics.
If anything raising rates could cause a recession not lowering them.
Proverbs 22:29
Seest thou a man diligent in his business? he shall stand before kings; he shall not stand before mean men.
These prices are no affordable period.
Unexpectedly? Where does record low affordability not drop sales? Who are the people setting these expectations?
Who would have ever thought a normal household couldn't afford a $3-6k a month house payment near their job, I mean even with the high inflation also these should just be flying off the market. Also you mean it's not normal for houses to double in a 4 year period in many areas, pricing out even higher income households in high income areas, no way. If things keep going half the population will be homeless and starving with a career.
It’s not just interest rates it’s everything. Look at the average price of homes to start with, then throw in the down payment, don’t forget homeowners insurance has gone through the roof too and some states it’s practically impossible to get unless your a millionaire. Car insurance depending on what state you’re in is going up also . Now look at the price of electricity, groceries, gas then throw in a few kids with that, I literally don’t know how people are making it these days. Maybe next time the reporter could actually take the time to look into the real issues and report on that
Anchorwoman has no knowledge of the housing market. Should not have done housing interviews.
In a few months, new home owners ur homes' value will be underwater; FOMO!
Inventory isn’t low. You are clueless inventory is at an all time high, especially in Florida 😂😂
Sham interview redfin girl full of bologna talking about the problem are high interest rates, the real problem is the inflation and high asking prices.
When they start to foreclose inventory will go. Foreclosures are being manipulated.
But here in Vegas still continues building house none stop and some houses for sale they don’t stay longer but it’s depends to the price
I live in a city of 70,0000 that is about 20-30 miles from a major metro. My neighbor has had their home for sale for nearly 8 months now and I have seen very few tours of the home.
That is not the current estimate. It’s down 42%
Is this “brand new” new home sales? That stat doesn’t include sales of existing homes?
This means multiple offers $100k to $500k over beat because only ine contract beating its price higher. There is no trandparency on home prices and contracts accepted. Good agents will work together to get the buyer pay high commission.
No worries because home owners and investors firmly believe that they will just keep going up forever and never come down even though mortgage application demand are at all time lows and rental demand is at an all time low
Speaking of record drops, how are Biden's latest poll numbers?
BUILD MORE HOMES‼️ BUILD MORE HOMES⚠️ BUILD MORE SINGLE FAMILY HOMES‼️ BUILD MORE AFFORDABLE HOUSING
That is exactly what is needed is more houses being built not more apartment buildings. So thankful we bought our tiny little 1949 Ranch 30 years ago interest was high back then 9.5% but the house was only $35,000 back then. We didn't buy a new car we bought a house while we could afford it new cars later in life. Houses in our neighborhood are now selling for over $200,000.00. Same old houses just got a face lift from rehabbers. I couldn't afford to sell and move somewhere else and honestly I love my house, my neighbors a lot of us have lived here 20 to 30 plus years. But yes we need to build homes like this, Starter Homes where people can live the American Dream. Anna In Ohio
Let them sit folks until they get back to reality.
PSA: Housing inventory is up 200% from it’s low of 2 years ago in the US
And still like 10 houses on the market 😂 why should I sell with a 2.5% mortgage ??
Surely you don’t think comparing inventory from 2 years ago is a proper base for comparison 🤦🏾♂️
You have to look further back pre pandemic to look at long term trends
@@mikejewell8518 I’m well aware of what inventory was like pre-pandemic. But if you want to ignore the 2-year trend then that’s on you. 🤷♂️
@@TheRealRobertG A rebound is not GROWTH 🤦🏾♂️
Home PRICES won't drop until supply is greatly increased. Regardless of interest rates. And a rate cut will make prices skyrocket.
Finally someone who understands basic high school level supply and demand 😂😂
@@mikejewell8518 Getting sick of everyone saying it will drop soon
It has a lot to do with the fact that people aren’t interested in moving. We paid 11% and around that amount when buying homes in the 80’s-90’s so interest rates are only a problem in connection. with super high inflated house prices which we’ve been seeing for at least 6-8 years now. Everyone blames on Californian’s..right? Prices for houses 🏠 n my state quadrupled in three years. Lots of people buying second homes or investment properties
If no one buying, why not asked people looking for home why? Record inventory, record prices, & record stagnation means not free market, but centrally planned economy. Banks hold assets not incentivized to place homes on market for low valuation since this would cascade into lower existing asset valuation on their books. System not designed to ever have lower prices. Maybe Elon can create rich robots who will create demand for expensive homes.
Buy a house and you'll be broke asf in a year. Taxes, property taxes, school taxes, inflation, property value goes up so does insurance premiums, gas is up, electricity is up, everything is up.
Unfortunately, rents are as expensive as payments around here.
Uh oh! You know what happens when you have an illiquid market right?
Interview a red fin employee? Red Finn is part of the problem.
I’d love to read your econometric report that uses modern empirical tools that establish causality that shows what the solution is.
Send me the link and I’ll give it a full read
@@mikejewell8518 there’s plenty out there, look yourself. Solution #1 - don’t allow private companies to own homes. #2 tax people higher amounts that own multiple homes.
What's next major headline. Banks have to close due people not applying for 8 % rates and they cannot afford to stay afloat
the banks are good they can just keep the houses they have empty and declare the losses from those homes from years back they won't have to buy taxes for awhile
Price drop please!
It means we cant afford them.....
Blame our sleepy president Joey. 😮
Stop ...it’s the PRICE bring down the PRICE
Loans are bad for you and nobody casually has half-a-million dollars lying around.
We are one policy change away from a real estate crash.
need 50k tax credit, minimum, to anyone buying a home at this point!! 😮
Mmm 11% oh joy I’ll just run right out there to shop for the cheapest toilet paper I can find
This is Ok. Everything is OK. Expected really. 😳
People moving out of the country. Its the smarter thing to do.
Obrigada pelo vídeo incrível! 🇧🇷
Purchasing a stock may seem straightforward, but selecting the correct stock without a proven strategy can be exceedingly challenging. I've been working on expanding my $210K portfolio for a while, and my primary obstacle is the lack of clear entry and exit strategies. Any advice on this matter would be greatly appreciated.
The strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off
Buy low, sell high.
If you want professional advice, seek a qualified professional.
Forgive the side point, but is that a ficus tree? The Chief Economist for Redfin coming to you from an apartment that looks like a freshmen dorm -- seriously?! It may be a superficial point, but the Chief Economist from any company should not be doing a zoom call from any space that looks like this. Sorry, but perception does matter when it comes to credibility. Should have been in an office setting and more formally dressed (and before anyone goes there, yes, I would have made the same observation and criticism had this been a man).
@@tomlewis6430 when you start signing her check then your opinion will matter. Redfin signed her check in the past and obviously they are still signing them now so it much not be a problem with them
Budget Cut Backs. Redfin
It's just a little gully, that's all.
There’s not much inventory and rates are high. A drop off in sales IS expected.
Quit framing Daryl Fairweather like she's some midwestern blue collar perspective. She's a coastal elitist from Seattle with her pronouns in her profile. Difficult for her to talk about the housing crisis when she's insulated by her high paying 6 figure job. Why not get some real people with real perspective to report on this?
If having someone trained in economics from UChicago who also is an investors in her personal time is not a “real perspective” then I don’t know what is
Also, since your competent enough to discern good from bad perspectives, I would love to see your empirical analysis that uses modern econometric techniques that establish causality showing a “real perspective”
Send me the link I’d be happy to give it a full read
@@mikejewell8518 how about someone who’s not a millionaire? Maybe that’s a good starting point for relating to average Americans?
The American dream 😴 is now ONLY a dream 😴
Prices will never drop ! homeowners have roo much equity and will just charge high rent until they get the price they want. But a house, they ain't getting any cheaper.