I don't see housing prices falling much until the supply is increased. In the USA we are short millions of housing units, and we aren't building nearly fast enough. People always need a place to live and we are constantly making new people. Any slight dip in prices unlocks a bunch of buyers who will gobble up that supply instantly. I want to buy inexpensive houses in 2024 and maybe invest in stocks. When's the best time to buy stocks? Some people say they make money, but others say it's risky. Any advice?
Consider investing in stocks especially during a recession . While recessions can be tough, they can also offer good chances to buy low and sell high in the markets if you're cautious. Just remember, this is not financial advice, but it's a good time to think about buying stocks since having cash on hand isn't always the best option.
Thank you for this tip , I just googled Laurel and I'm really impressed with her credentials. I reached out to her since I need all the assistance I can get.
Trust me, you’ll see them continue to fall brutally, prior to new inventory being built. As of now you have builders, RE brokers, RE investment firms, & homeowners sitting on a load of highly priced inventory and now that interest rates are significantly higher than they were previously, demand is being smashed. You may have some buyers transfer to the rental market but what’s more realistic in a more remote-oriented society is that people will continue to migrate to the sunbelt states and nearby areas with higher affordability. Once this trend continues at a faster rate highly priced markets are going to crash. It will be a brutal time for buyers who bought in 2020 and held to now (if your invested in most northeastern states and California for example. Florida, Texas, and North Carolina are smart states, you can expect them to exploit this trend for the best. Save this comment.
I wish we'd learn the lesson that necessities should not be commodities. Those buying up housing are corporations and foreign investors with wads of cash leaving out those who actually work and contribute to the local economy.
I foresaw the housing crisis and sold my property. I then put it in the market, about $200,000 of it. That was late February. I've lost more than 40% of my portfolio's value. It makes me really sad. How can I turn this situation around? 😞
This is really sad. If you're not who understands strategies to invest in the market, why not seek a financial advisor to help you grow your portfolio?
I agree. Having an investment advisor is the best way to go about the stock market right now. I’ve been in touch with a coach for a while now mostly and I made over 95% profit within about seven months or so.
I work with an FA named *Sharon Louise Count.* Her honest approach gives me complete ownership and control over my position, and her rates are incredibly affordable given my ROI. You should check her out.
Right? I owned a real estate related business during the bubble. The BS I listened to the industry and agents peddle in 2007 was disgusting. I put the real estate industry below human trafficking.
Catch a break from the Federal reserve? How about no. The Fed should keep raising rates. The home builders and Wall Street real estate investors will eventually have to refinance their debts to much higher interest rates, and then they will have no choice but to start dumping properties. Properties that are currently hiding in the shadow real estate market and you pretend do not exist.
LOL Shadow Real Estate Market!!!! This just proved to me you have Zero Clue what is going on. Also by raising rates to the point you are talking about, you fail to realize the only person suffering is the public. By keeping the fed fund rate at elevated levels that means companies will be forced to cut JOBS!!!! That mean huge unemployment numbers also that means if you did own a business (which I either doubt or be afraid that you have employees) would not be able to stay in business because your costs would be outrageous and you'd have zero customers. Because if no one has a job there is no one to purchase the goods you are selling.
Being that single family home investor market share is at all time highs… it would be a miracle for young people if investors were forced to sell. Not to mention what that would do to inflation! Do they really need to refinance their debt? If so, when & why? I’m not sure how it works.
@@ilikesports8936 Where did you get your stats that investor market share is at all time highs.... When the fix and flip market is at all time lows. Also First Time Homebuyers now equal about 50% of all new home purchases. And investors can refi their debt with a DSCR Loan. If they do they typically are using it as a rental.
Slow building? High rates? These greedy entities are partly to blame for running up prices by exploiting the effects of the pandemic. It's downright criminal.
exactly ... slow building since the last crash maybe. How stupid do they think people are? anyone who has been looking for housing knows that the prices are the problem, higher interest isn't even in second place except for the investors who are still trying to gobble up what is left of housing stock while servicing their current debt that they used to buy houses out from people who actually wanted a place to live. I can't even watch the rest of this until I've had my coffee.
You don’t understand basic economics. Builders BORROW money to build houses and they don’t want to borrow at 9-10% to build a spec house. Don’t comment on topics you don’t understand.
Low housing inventory is really what's "beating up" the housing market. That's the reason the proces keep escalating! We need more housing inventory. And not housing that is these "luxury" condos thst are really glorified apartment builfings. We need real single-family, stand alone starter homes. That is the real problem we need to resolve.
High rise apartment buildings are better than single family homes for increasing housing inventory. The price should go down if enough of these get built.
Housing and stocks will crash even though I own both and I want them to go up. Wait until the market crashes, and companies start to layoff, then 5 year arms expire for some of them, and can’t pay rent. There is NO housing shortage in this country, some “investors”, individuals or companies, bought a lot of houses they don’t need, with minimum payment.
Considering the historically low rates, I think most people went for a fixed rate mortgage - not a variable/adjustable one. Buyers will hold their properties longer than you might assume. The only way to trigger a sale cycle is to bump up local taxes, or somehow push rents down. Unless people find renting better than owning, things may not change.
I rarely see other people comment about local taxing agencies. Something needs to be done on that level to make it less profitable for investment companies to hold so much housing stock - to the detriment of people in the communities they are supposed to be serving.
Let's see we're basically in hyperinflation, the FED is actually laying people off as are many companies. Stores like Target are closing locations nationwide due to theft, Consumer Debt is at an all-time high, lenders are increasing restrictions, auto loans are defaulting and foreclosures are starting to ramp up in a lot of higher-priced areas. Commercial real estate is being hit the hardest. 2007 was caused by residential mortgage backed securities and this time it will be commercial backed mortgage securities
My wife and I went to 30 open houses this last month. All the realtors we talked with believe the housing market is bullet proof and it will only go up. When we inform the realtors that we are going to wait another year and we believe that rates are only coming down for a recession they freak out. Rates aren't going to go down next year, and if they do it will be by a half a percent.
So you will wait another year for rates to drop just like everyone else. What will you do when rates drop to 5%? Start looking just like everyone else. Did you know that for every 1% interest rate drop 5,000,000 potential homebuyers can now afford a home? Now imagine a 2.5% rate drop that would equate to 12.5 million homebuyers now entering the market. Lets take into account the "Locked In Affect". Those are homeowners with 4% interest rates or less. Do you think they will now want to sell and lose those rates. Your best bet is a new home builder offering low rates with their preferred lender.
These aren't high mortgage rates! They're average. The housing market needs to take a beating. The Fed is busting heads Volcker style because it's needed. America is a no rate/low rate junkie, in our first days of rehab.
Growing up my mom and dad put off building a home because rates were in the double digits. They didn't get serious about it until interest rates dropped under 10%.
@@andrewsnyder9262 mortgage rate is still below anything pre 2000. (The 2010-2022 was the crazy time. Rates were way too low, basically no cost to get indebted, hence "junkie". Just pure recklessness, no restraint whatsoever in the markets.) It's the prices that are absolutely ludicrous. What's more, taxes, insurance, etc. all relate to price. Cheaper house also means all those are cheaper, too. And wages...don't get me even started. The way they haven't even kept up with inflation is criminal. A 1 income household in the 60s had an easier time than 2 incomes now that are more educated and more productive. So yeah...don't agree on rates, but 100% with you on prices and wages. Something's got to break in this economy and improve the middle class, instead of pampering billionaires and wall street or the society breaks down. The French sharpened the guillotines in the 1700s when the gap between the commoners and the aristocracy widened (see the disguisting CEOs pay right now).
@@BarAlexC right you are and last time rates were 8% was around 2001-2002. That’s why I said the median house price of $410k would have been nearly a 1/3 of what it is now at that same rate. And of course taxes, insurance, maintenance would have been much lower as well. One can not claim that these rates now are anywhere near the same as an 8% mortgage 20 years ago. These costs have compounded and have really shifted the affordability scale dramatically. It’s broken for sure.
I bought in 2001 in "Beverly Hills Adjacent". In 2008 housing crash, prices did not decline here, but remained stable. Contracted to sell in July 2023. In August my home went on the market, priced $70,000 below market, no offers. Comparable new build homes are $400,000-500,000 higher. If you have cash, buy now. If you don't have the cash, probably should think about buying and refinance later. My mortgage is almost zero, so I don't need to sell. I'd like to relocate out of the country, but I'll wait it out, as I'm content to remain in my home.
In my opinion, a housing market crash is imminent due to the high number of individuals who purchased homes above the asking price despite the low interest rates. These buyers find themselves in precarious situations as housing prices decline, leaving them without any equity. If they become unable to afford their homes, foreclosure becomes a likely outcome. Even attempting to sell would not yield any profits. This scenario is expected to impact a significant number of people, particularly in light of the anticipated surge in layoffs and the rapid increase in the cost of living.
I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!
You are right! I’ve diversified my 450K portfolio across various market with the aid of an investment coach, I have been able to generate a little bit above $830k in net profit across high dividend yield stocks, ETF and bonds.
“NICOLE DESIREE SIMON” is the coach that guides me, She has years of financial market experience, you can use something else but for me her strategy works hence my result. She provides entry and exit point for the securities I focus on.
Not for nothing, the honesty in his view re: having to take somone else's lunch due to shrinking market, reducing costs...etc, is appreciated. Would be interesting to know the proportion of price increases overall to overall cost savings.
It could continue just as it is now for many, many, many years to come. Here in NJ home prices in desirable areas are still going up. No one that has an existing mortgage at 2%, 2.5%, 3%, 3.5%, 4% is going to sell their home and buy another one at 6.5%, 7%, 7.5% unless they intend to move to another area where home prices are 40% to 50% lower than where they are living now and they have enough equity in their existing home to buy one in a lower cost area for all cash.
I'm glad I bought my house back in 2019. I purchased right before the whole mess. It's extremely hard to be able to afford a house right now. Interest rates are at 7% and houses are still overpriced.
If he wants, I can provide my personal reasons for not selling. I lucked out and bought my house 20 years ago for only $125k (1600 sq ft, 3 bed, 2 bath, with a pool and no HOA). I refinanced to about $180k to pay some things off a few years ago. When I check Zillow or other sites, I see smaller homes in my neighborhood selling for $400k or more. That sounds good. I could turn a tidy profit by selling. The problem is that when I search for houses I would actually trade this house for, they all start at about $700k. And the way housing has been in my area, that's the starting price for a bidding war that will take it over $800k. Even if I dumped all of the sale profit into a new home at that price, I can't afford the new mortgage payment. I could rent, but that's even worse. In my area, a 2 bedroom 2 bath apartment half the size of my house would run me at least $2500 per month unless I wanted to live in a shithole in a high crime area (which would still be $2000). We need housing prices to get back down to reality.
@@gayelorde2577 Real estate is very localized. Florida and Texas are very different from NY and CA. Even cities inside those states can be very different
336,000 New jobs added in Sept. Average house sells in less than 30 days in California, and they are in a building boom. TWO years to sell a home in most red states.
Why do townships , counties , states practice monopolies and fascism? All I see are luxury apts that are empty while lower income families need to work two jobs to live on the edge of towns in older apartments? It’s obviously some type of lobbying and monopolies between builders and states and counties . They could build huge profits with $1K apartments that are minimal but clean and cement homes for under $400K instead of $1M homes lots?! Murica!
If only builders went back to building more affordable houses under 2000 square feet and stop with the mcmansions for the higher profit margin. If people are 1st time buyers, downsizing, divorced, they are not looking for a 5000 square foot high priced, high maintenance, high taxed home. And they damn sure arent wanting to pay hundreds a month to a HOA run by a bunch of Karens who will make your life hell and sell your home out from under you because they decide they dont like you.
No ‘Karen’ is selling my home out from under me. Let’s not pretend they have this kind of authority. That’s a serious matter. But I do agree with your assessment on the magnitude of building the wrong kind of homes today
So is it the realtors promoting these outrageous inflated home prices on homes which are broken down shacks??? seriously? 150K-175K for homes barely worth 100K.
Housing prices are creating havoc on the Housing market, not the interest rates. For example, in Phoenix, houses need to drop by $1 million in order for them to be priced at what they are worth. 3% int isn't going to change this "gold rush" or "beanie baby" like housing bubble.
exactly how ignorant the housing industry must think the rest of us are. Like we haven't been watching investors scoop up as much housing as they could over the past few decades.
High prices for everything have severely affected my plan. I'm concerned if people who went through the 2008 financial crisis had an easier time than I am having now. The stock market is worrying me as my income has decreased, and I fear I won't have enough savings for retirement since I can't contribute as much as before.
It's recommended to save at least 20% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 20% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of investing in the stock market and potentially grow your retirement savings over time.
Considering the increased complexity since the 2008 crash and COVID, I suggest diversifying your financial portfolio. I hired an advisor and successfully grew my portfolio by over $150K during this turbulent market using defensive strategies that protect and profit from market fluctuations.
It's the cost of the homes not interest rates. I remember a day when interest rates were 20% in 1980. Investors bought the homes up to turn us into renters and take away the American dream.
Things no one is talking about regarding the residential housing market over the next 9-12 months: 1. EVERY presidential election year since at least 1984 has seen the FED reduce interest rates. 2. The Baby Boom generation is retiring at an accelerating rate. There will be relative tightness in the labor for the next 20 years or more. 3. The pundits are all saying that the average wage earner can't afford to buy a house at current price and interest rate levels. It is true, but guess what? It doesn't matter much any more because it is the INVESTORS who are keeping prices up. Those people who already own 4 or 5 houses and who want to buy a 6th and 7th; or big companies who already own 50K houses in a market like mine in Atlanta, who still want to add to their portfolio. Until investors decide to get out of the market and sell prices are going to stay relatively stable in most markets nationwide. When that changes (and there is groupthink among most of them) there will be a flood of inventory and a corresponding significant drop in houses. But if interest rates get lowered by the FED next year prices will tend to increase, not decrease.
People are hesitant to put their 3% mortgage house on the market because they overpaid for the home. People paid 500k for a home that was fairly priced at 350k because the interest rate allowed them to qualify for x payment. A 400k mortgage cost $1,100 more per month at 7.5% than at 3%. Don't fall for the "home affordability bs" because rates are low when prices are high, you can always refinance a higher rate so pay attention to the price.
Rates were way higher in the early to mid 80’s! People are loosing their homes due to poor financial planning & over spending. Granted there are people who always have just gotten by financially & are really feeling it but at least half to maybe more who are being forced is because they spend the dollars before they even earned it. You need to have a cushion for things like inflation, hours & pay cuts or worse, loosing employment. Some people that are moving due to retirement & paying cash with a some travel money left over, (me). But I won’t overpay for a home. Live a RV until a decent deal is found. They are out there if you look hard enough.
If you can afford it, buy now despite high rates. Prices will keep going up. We’ve never been in this type of market before. Historically low rates followed up by rapid rising rates. If you can’t afford it now, you have no choice but to wait to see if things will get better.
Beating? Properties here are up another 10% yr over yr, lol. Not many transactions has nothing to do with my home’s value, investment property’s prospective rents. Loving it!!!!
This may sound silly but the percentage shouldn’t matter unless you want a high mortgage but if you don’t want a high mortgage that means just put more money down. The more you put the down the lesser the mortgage. I think those percentages and other numbers are stupid imho. Just put a heavy amount of money (cash) down.
It's solely interest rates. Housing prices may be a little inflated but that is good for asset owners. Incomes need to catch up and interest rates need to come down
@@joefuentes2977 Exactly. The amount of civil unrest that would ensue with massive home depreciation is unfathomable. The better option for society is a shift in wealth distribution by inflating lower income wages, not destroy the middle and upper middle class.
@@MC-oo4pkwhat you are describing is a wage price spiral which is death to any country who has been unfortunate enough to experience it. See Venezuela Argentina etc… inform yourself
@@mannyortega9667 the wage price spiral is orthodox economic propaganda. If wages go up and production also increases then firms can absorb the additional demand because they created sufficient supply. The wage price spiral is just an excuse firms and economist make for being too lazy expand capacity by investing in infrastructure. Educate yourself and stop being an NPC.
The investors are causing all the issues. They are holding the homes and using them for rentals and vacation homes. They are Squeezing inventory from real buyers.
Your right. I checked Zillow and hardly any homes for sale in Seattle, yet switch to Zillow rentals and the map is covered with vacant homes for rent and the prices are about 40% less than what one would pay for a mortgage with 3% down on the same homes today. There is a lot of pain there of investors just trying to get a renter to at least break even on the mortgage payments if not take a loss until the values increase some day.
@@mylesgray3470100% we have record breaking apartment builds nationally and massive new rental inventory in the pnw landlords and flippers have driven up a speculative bubble in a tough regulatory environment and they gotta fold.
A Million high net worth individuals are SELLING out of California and BUYING in other places. Central Arizona is building 1.5 million $ pieces of junk and they are sold before being built. There are not enough rentals available for the blue collar guys building them. That just middle of the market. A view up in the mountains in a gated community starts at 2 million 85% of the new money is from California
Short-term rental services like AIRBNB are the problem. Housing is a necessity,not a business. Until something is done about this, nothing is going to change. Plain and simple greed.
Can we please stop pretending we've "seen these rates before"? 20% on $60k is not the same as 8% on $1.2m. Adjusted for inflation you would have needed 35% interest to have an equivalent payment. This time is not like last time.
>>>> Amazing content!!! Nevertheless, I'm new to forex and struggling with the strategies. How can I find a broker who can manage my account and teach me?
There are super low inventories because a bunch of speculative money has flooded into buying homes. Tax and regulate this out of existence and you'll see millions of homes suddenly become available.
We need housing prices to collapse at least 35% across the board. The Federal Funds rate should be over 8%. Food inflation is at 13%. It is time to reduce debt and wealth. Bring on the Depression!
Wow. Really we need somebody to tell us why? High home prices and high mortgage rates are not a good recipe for robust home sales. Home prices have to come down to make mortgage payments affordable.
This is the most tone deaf analysis I’ve seen. Home prices are hugely inflated right now, and many analysts are seeing signs of a correction - to the tune of 30%. The reason the market is slowing down is because affordability is at a low point, but interest rates aren’t even the core issue. It’s price. It’s doubled in just the last handful of years.
I don't see housing prices falling much until the supply is increased. In the USA we are short millions of housing units, and we aren't building nearly fast enough. People always need a place to live and we are constantly making new people. Any slight dip in prices unlocks a bunch of buyers who will gobble up that supply instantly. I want to buy inexpensive houses in 2024 and maybe invest in stocks. When's the best time to buy stocks? Some people say they make money, but others say it's risky. Any advice?
Consider investing in stocks especially during a recession . While recessions can be tough, they can also offer good chances to buy low and sell high in the markets if you're cautious. Just remember, this is not financial advice, but it's a good time to think about buying stocks since having cash on hand isn't always the best option.
@oldcastleswan Can you kindly provide me with the information of your investment advisor as I am currently in desperate need of one?
Thank you for this tip , I just googled Laurel and I'm really impressed with her credentials. I reached out to her since I need all the assistance I can get.
Trust me, you’ll see them continue to fall brutally, prior to new inventory being built.
As of now you have builders, RE brokers, RE investment firms, & homeowners sitting on a load of highly priced inventory and now that interest rates are significantly higher than they were previously, demand is being smashed.
You may have some buyers transfer to the rental market but what’s more realistic in a more remote-oriented society is that people will continue to migrate to the sunbelt states and nearby areas with higher affordability.
Once this trend continues at a faster rate highly priced markets are going to crash. It will be a brutal time for buyers who bought in 2020 and held to now (if your invested in most northeastern states and California for example.
Florida, Texas, and North Carolina are smart states, you can expect them to exploit this trend for the best.
Save this comment.
Problem isn’t inventory, it’s too many investment properties eating up starter homes😢
I wish we'd learn the lesson that necessities should not be commodities. Those buying up housing are corporations and foreign investors with wads of cash leaving out those who actually work and contribute to the local economy.
Finally. I see a comment that mentions what the root of many problems is.
He looks like he’s crying and smiling at the same time 😮
He’s on the toilet 🚽 😂
😂 is he stoned?
he has a condition
His wrinkles looks like Tesla trade mark
😂
I foresaw the housing crisis and sold my property. I then put it in the market, about $200,000 of it. That was late February. I've lost more than 40% of my portfolio's value. It makes me really sad. How can I turn this situation around? 😞
This is really sad. If you're not who understands strategies to invest in the market, why not seek a financial advisor to help you grow your portfolio?
I agree. Having an investment advisor is the best way to go about the stock market right now. I’ve been in touch with a coach for a while now mostly and I made over 95% profit within about seven months or so.
That's impressive! I could really use the expertise of your advisor. Could you recommend who you work with, please?
I work with an FA named *Sharon Louise Count.* Her honest approach gives me complete ownership and control over my position, and her rates are incredibly affordable given my ROI. You should check her out.
Thank you for this. I'm gonna check her out and try to reach her. I hope she gets back to me before my portfolio is completely gone.
The prices need to drop about 50%
Obviously, you don't own a house!! LOL
@@Lucy-hu8gv actually I do "own" a house. Lol. The bank probably owns yours 🤣🤣🤣
@@nghttrn001🎤
So does the cost of living...we all have "wants" but our "needs" are what we should focus.
@@nghttrn001lol
The guy who runs a real estate company says we cant go lower.
Shocking.
Right? I owned a real estate related business during the bubble. The BS I listened to the industry and agents peddle in 2007 was disgusting. I put the real estate industry below human trafficking.
He's talking about volume not prices
That is very funny
@@info781No, he’s saying a drop isn’t likely because of low volume
Catch a break from the Federal reserve? How about no. The Fed should keep raising rates. The home builders and Wall Street real estate investors will eventually have to refinance their debts to much higher interest rates, and then they will have no choice but to start dumping properties. Properties that are currently hiding in the shadow real estate market and you pretend do not exist.
LOL Shadow Real Estate Market!!!! This just proved to me you have Zero Clue what is going on. Also by raising rates to the point you are talking about, you fail to realize the only person suffering is the public. By keeping the fed fund rate at elevated levels that means companies will be forced to cut JOBS!!!! That mean huge unemployment numbers also that means if you did own a business (which I either doubt or be afraid that you have employees) would not be able to stay in business because your costs would be outrageous and you'd have zero customers. Because if no one has a job there is no one to purchase the goods you are selling.
agreed.
Being that single family home investor market share is at all time highs… it would be a miracle for young people if investors were forced to sell. Not to mention what that would do to inflation!
Do they really need to refinance their debt? If so, when & why? I’m not sure how it works.
@@ilikesports8936 Where did you get your stats that investor market share is at all time highs.... When the fix and flip market is at all time lows. Also First Time Homebuyers now equal about 50% of all new home purchases. And investors can refi their debt with a DSCR Loan. If they do they typically are using it as a rental.
💯
He looks like a movie villain who still believes that he has the hero where he wants him.
Nailed it
😁😁
He's a turd who has less agents than the, top ten brokerages, and his stock has tanked from, $80 p/share to around, $4-5 bucks!
day by day!!
Slow building? High rates? These greedy entities are partly to blame for running up prices by exploiting the effects of the pandemic. It's downright criminal.
100% REITS, landlords, and flippers gotta fall
exactly ... slow building since the last crash maybe. How stupid do they think people are? anyone who has been looking for housing knows that the prices are the problem, higher interest isn't even in second place except for the investors who are still trying to gobble up what is left of housing stock while servicing their current debt that they used to buy houses out from people who actually wanted a place to live. I can't even watch the rest of this until I've had my coffee.
You don’t understand basic economics. Builders BORROW money to build houses and they don’t want to borrow at 9-10% to build a spec house. Don’t comment on topics you don’t understand.
Low housing inventory is really what's "beating up" the housing market. That's the reason the proces keep escalating! We need more housing inventory. And not housing that is these "luxury" condos thst are really glorified apartment builfings. We need real single-family, stand alone starter homes. That is the real problem we need to resolve.
The inventory is being sucked up by private equity and air BNB
We need apartment buildings in order to get rent slower
16 million vacant homes 16 million sfh rentals we have 8* what we need we just need speculators to feel pain.
@@jacobnapkins1155 Only increased inventory will fix things.
High rise apartment buildings are better than single family homes for increasing housing inventory. The price should go down if enough of these get built.
Housing and stocks will crash even though I own both and I want them to go up. Wait until the market crashes, and companies start to layoff, then 5 year arms expire for some of them, and can’t pay rent. There is NO housing shortage in this country, some “investors”, individuals or companies, bought a lot of houses they don’t need, with minimum payment.
Uranium stocks are going to withstand this recession.
Housing will crash. And money will flow into stocks!
Considering the historically low rates, I think most people went for a fixed rate mortgage - not a variable/adjustable one. Buyers will hold their properties longer than you might assume. The only way to trigger a sale cycle is to bump up local taxes, or somehow push rents down. Unless people find renting better than owning, things may not change.
I rarely see other people comment about local taxing agencies. Something needs to be done on that level to make it less profitable for investment companies to hold so much housing stock - to the detriment of people in the communities they are supposed to be serving.
Let's see we're basically in hyperinflation, the FED is actually laying people off as are many companies. Stores like Target are closing locations nationwide due to theft, Consumer Debt is at an all-time high, lenders are increasing restrictions, auto loans are defaulting and foreclosures are starting to ramp up in a lot of higher-priced areas.
Commercial real estate is being hit the hardest. 2007 was caused by residential mortgage backed securities and this time it will be commercial backed mortgage securities
this.
i think you are right because many buildings sitting empty due to people working from home.
Target isn't closing stores due to theft. They're actually closing stores because they have a bunch of inventory they can't sell.
Commercial real estate crash is a matter of when not if
"but this time it's different"
He's not taking a beating. Market goes up or down, he still makes millions as CEO.
Notice how wise his responses are though? Unlike many CEO's.
He can still get canned
@@roryroberts-yu5tg Even better for him. He will probably get more money from his golden parachute than working.
Looks like he spent half of it on botched botox
My wife and I went to 30 open houses this last month. All the realtors we talked with believe the housing market is bullet proof and it will only go up. When we inform the realtors that we are going to wait another year and we believe that rates are only coming down for a recession they freak out. Rates aren't going to go down next year, and if they do it will be by a half a percent.
So you will wait another year for rates to drop just like everyone else. What will you do when rates drop to 5%? Start looking just like everyone else. Did you know that for every 1% interest rate drop 5,000,000 potential homebuyers can now afford a home? Now imagine a 2.5% rate drop that would equate to 12.5 million homebuyers now entering the market. Lets take into account the "Locked In Affect". Those are homeowners with 4% interest rates or less. Do you think they will now want to sell and lose those rates. Your best bet is a new home builder offering low rates with their preferred lender.
And its spelled Realtor not relators.......
@@gustavoramos2441 So are you saying they should buy now at highest rate, highest price and highest unaffordability in all of housing history?
Wonder where all the illegal immigrants are gonna live
Good point, that spelling error says everything!@@gustavoramos2441
These aren't high mortgage rates! They're average. The housing market needs to take a beating. The Fed is busting heads Volcker style because it's needed. America is a no rate/low rate junkie, in our first days of rehab.
finally a rational thought
Average? Since when has anyone paid 8% on a $410,000 house with stagnant wages? Get real. That $410k house was $160k last time rates were at 8%.
Growing up my mom and dad put off building a home because rates were in the double digits. They didn't get serious about it until interest rates dropped under 10%.
@@andrewsnyder9262 mortgage rate is still below anything pre 2000.
(The 2010-2022 was the crazy time. Rates were way too low, basically no cost to get indebted, hence "junkie". Just pure recklessness, no restraint whatsoever in the markets.)
It's the prices that are absolutely ludicrous. What's more, taxes, insurance, etc. all relate to price. Cheaper house also means all those are cheaper, too.
And wages...don't get me even started. The way they haven't even kept up with inflation is criminal. A 1 income household in the 60s had an easier time than 2 incomes now that are more educated and more productive.
So yeah...don't agree on rates, but 100% with you on prices and wages.
Something's got to break in this economy and improve the middle class, instead of pampering billionaires and wall street or the society breaks down. The French sharpened the guillotines in the 1700s when the gap between the commoners and the aristocracy widened (see the disguisting CEOs pay right now).
@@BarAlexC right you are and last time rates were 8% was around 2001-2002. That’s why I said the median house price of $410k would have been nearly a 1/3 of what it is now at that same rate. And of course taxes, insurance, maintenance would have been much lower as well. One can not claim that these rates now are anywhere near the same as an 8% mortgage 20 years ago. These costs have compounded and have really shifted the affordability scale dramatically. It’s broken for sure.
I bought in 2001 in "Beverly Hills Adjacent". In 2008 housing crash, prices did not decline here, but remained stable. Contracted to sell in July 2023. In August my home went on the market, priced $70,000 below market, no offers. Comparable new build homes are $400,000-500,000 higher. If you have cash, buy now. If you don't have the cash, probably should think about buying and refinance later. My mortgage is almost zero, so I don't need to sell. I'd like to relocate out of the country, but I'll wait it out, as I'm content to remain in my home.
We need higher interest rates
In my opinion, a housing market crash is imminent due to the high number of individuals who purchased homes above the asking price despite the low interest rates. These buyers find themselves in precarious situations as housing prices decline, leaving them without any equity. If they become unable to afford their homes, foreclosure becomes a likely outcome. Even attempting to sell would not yield any profits. This scenario is expected to impact a significant number of people, particularly in light of the anticipated surge in layoffs and the rapid increase in the cost of living.
I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!
You are right! I’ve diversified my 450K portfolio across various market with the aid of an investment coach, I have been able to generate a little bit above $830k in net profit across high dividend yield stocks, ETF and bonds.
Do you mind sharing info on the adviser who assisted you?
“NICOLE DESIREE SIMON” is the coach that guides me, She has years of financial market experience, you can use something else but for me her strategy works hence my result. She provides entry and exit point for the securities I focus on.
She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing..
We didn't need this guy to tell us what we see with our own eyes. High prices+High rates = low sales
Not for nothing, the honesty in his view re: having to take somone else's lunch due to shrinking market, reducing costs...etc, is appreciated. Would be interesting to know the proportion of price increases overall to overall cost savings.
Mortgage rates are pretty good considering historical averages. Prices of homes are outrageous
It could continue just as it is now for many, many, many years to come. Here in NJ home prices in desirable areas are still going up.
No one that has an existing mortgage at 2%, 2.5%, 3%, 3.5%, 4% is going to sell their home and buy another one at 6.5%, 7%, 7.5% unless they intend to move to another area where home prices are 40% to 50% lower than where they are living now and they have enough equity in their existing home to buy one in a lower cost area for all cash.
At first he says everything is great, later when they asked about his business he admits the slow down! 😅
Good job Sara! 👏
He said the opposite of everything is great. He mentioned we’re currently at “rock bottom”.
He's talking about volume. Only real estate agents care about volume buyers and sellers only care about price
This guy's face is a great emoji.
I'm glad I bought my house back in 2019. I purchased right before the whole mess. It's extremely hard to be able to afford a house right now. Interest rates are at 7% and houses are still overpriced.
1:45 ...well it just went below 4 million on the latest report.
This guys is definitely the Joker in his off hours in the evening.
Lmao 😂
He is laughing. In fact, he is laughing at us.
No he's not.....in 2021 their stock was $98.....its $6.88 and falling.....
look at their 3Q earning.....-27.36M up from -60.08M 2Q
He lost 100 billion dollars
He was Elon musk. Now he is poor poor
If he wants, I can provide my personal reasons for not selling. I lucked out and bought my house 20 years ago for only $125k (1600 sq ft, 3 bed, 2 bath, with a pool and no HOA). I refinanced to about $180k to pay some things off a few years ago. When I check Zillow or other sites, I see smaller homes in my neighborhood selling for $400k or more. That sounds good. I could turn a tidy profit by selling. The problem is that when I search for houses I would actually trade this house for, they all start at about $700k. And the way housing has been in my area, that's the starting price for a bidding war that will take it over $800k. Even if I dumped all of the sale profit into a new home at that price, I can't afford the new mortgage payment. I could rent, but that's even worse. In my area, a 2 bedroom 2 bath apartment half the size of my house would run me at least $2500 per month unless I wanted to live in a shithole in a high crime area (which would still be $2000). We need housing prices to get back down to reality.
Sell it and leave the country.
Everybody it seems is moving here to Florida. Traffic is horrible now
The housing market is not taking a beating. Prices in most markets are only down 5 to 10 percent from initial listing prices.
Taking a beating?? Their are still bidding wars in my neighborhood. Homes are selling out faster than the number of new listings.
@@gayelorde2577 Real estate is very localized. Florida and Texas are very different from NY and CA. Even cities inside those states can be very different
336,000 New jobs added in Sept. Average house sells in less than 30 days in California, and they are in a building boom. TWO years to sell a home in most red states.
Why do townships , counties , states practice monopolies and fascism? All I see are luxury apts that are empty while lower income families need to work two jobs to live on the edge of towns in older apartments? It’s obviously some type of lobbying and monopolies between builders and states and counties . They could build huge profits with $1K apartments that are minimal but clean and cement homes for under $400K instead of $1M homes lots?! Murica!
If only builders went back to building more affordable houses under 2000 square feet and stop with the mcmansions for the higher profit margin. If people are 1st time buyers, downsizing, divorced, they are not looking for a 5000 square foot high priced, high maintenance, high taxed home. And they damn sure arent wanting to pay hundreds a month to a HOA run by a bunch of Karens who will make your life hell and sell your home out from under you because they decide they dont like you.
No ‘Karen’ is selling my home out from under me. Let’s not pretend they have this kind of authority. That’s a serious matter. But I do agree with your assessment on the magnitude of building the wrong kind of homes today
Realtor here. Boots on the ground, I'm pretty convinced we see a good sized bearish move by the housing market over 12-18m.
May I ask do you say that to potential buyers looking to buy now? Because that would be refreshing although akin to turkeys voting for thanksgiving!
@@SPaddy-fb7hy I actually do say it when ppl ask about the market!
My reputation extends beyond just a sale or a closing with someone.
@@lucasdavidson9996 Great stuff, what city do you operate in? As an RE investor scruples are important to in those on my team.
So is it the realtors promoting these outrageous inflated home prices on homes which are broken down shacks??? seriously? 150K-175K for homes barely worth 100K.
What down market, Washington DC suburbs are still selling at record high.
Let’s make 10% mortgage rate to completely freez the market and beat the nonsense OVERPICED home sellers and buyers.
Housing prices are creating havoc on the Housing market, not the interest rates. For example, in Phoenix, houses need to drop by $1 million in order for them to be priced at what they are worth. 3% int isn't going to change this "gold rush" or "beanie baby" like housing bubble.
exactly how ignorant the housing industry must think the rest of us are. Like we haven't been watching investors scoop up as much housing as they could over the past few decades.
1:10 “and with a 3% mortgage they’re not gonna put their house on the market” TRY 2%
Interest rates go up and prices have to come down. BUT when government continues to spend at such a high rate the dollars buying power deflates.
High prices for everything have severely affected my plan. I'm concerned if people who went through the 2008 financial crisis had an easier time than I am having now. The stock market is worrying me as my income has decreased, and I fear I won't have enough savings for retirement since I can't contribute as much as before.
It's recommended to save at least 20% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 20% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of investing in the stock market and potentially grow your retirement savings over time.
Considering the increased complexity since the 2008 crash and COVID, I suggest diversifying your financial portfolio. I hired an advisor and successfully grew my portfolio by over $150K during this turbulent market using defensive strategies that protect and profit from market fluctuations.
In 1982 the interest rate for a home loan was 22%. We bought a new house in 2001 and were so happy to get a loan at 11%.
Did she say "Down Market"?? Where? Hoke prices still going up in and around my area
85% of households do not have a mortgage. Nothing prevents them to sell their homes.
Well now that's BS, According to Census Bureau data, over 38 percent of owner-occupied housing units are owned free and clear.
You won't see 4% mortgages again for years, if at all.
It's the cost of the homes not interest rates. I remember a day when interest rates were 20% in 1980. Investors bought the homes up to turn us into renters and take away the American dream.
Things no one is talking about regarding the residential housing market over the next 9-12 months:
1. EVERY presidential election year since at least 1984 has seen the FED reduce interest rates.
2. The Baby Boom generation is retiring at an accelerating rate. There will be relative tightness in the labor for the next 20 years or more.
3. The pundits are all saying that the average wage earner can't afford to buy a house at current price and interest rate levels. It is true, but guess what? It doesn't matter much any more because it is the INVESTORS who are keeping prices up. Those people who already own 4 or 5 houses and who want to buy a 6th and 7th; or big companies who already own 50K houses in a market like mine in Atlanta, who still want to add to their portfolio. Until investors decide to get out of the market and sell prices are going to stay relatively stable in most markets nationwide. When that changes (and there is groupthink among most of them) there will be a flood of inventory and a corresponding significant drop in houses. But if interest rates get lowered by the FED next year prices will tend to increase, not decrease.
People are hesitant to put their 3% mortgage house on the market because they overpaid for the home. People paid 500k for a home that was fairly priced at 350k because the interest rate allowed them to qualify for x payment. A 400k mortgage cost $1,100 more per month at 7.5% than at 3%. Don't fall for the "home affordability bs" because rates are low when prices are high, you can always refinance a higher rate so pay attention to the price.
The market is taking a beating to him. Not to people who have been paying insane premiums for mortgages and rents. This is a relief.
Rates were way higher in the early to mid 80’s! People are loosing their homes due to poor financial planning & over spending. Granted there are people who always have just gotten by financially & are really feeling it but at least half to maybe more who are being forced is because they spend the dollars before they even earned it. You need to have a cushion for things like inflation, hours & pay cuts or worse, loosing employment. Some people that are moving due to retirement & paying cash with a some travel money left over, (me). But I won’t overpay for a home. Live a RV until a decent deal is found. They are out there if you look hard enough.
If you can afford it, buy now despite high rates. Prices will keep going up. We’ve never been in this type of market before. Historically low rates followed up by rapid rising rates. If you can’t afford it now, you have no choice but to wait to see if things will get better.
The housing market NEEDS to take a beating. No a MOLLY-WHOPPING
Prices have never come down. Prices are 4-5 times annual salary. Forget the mortgage rate.
A CEO… rare and impressively honest
If you believe he is honest I’ve got a bridge to sell you.
I’m seeing inventory surging in parts of CA
Walnut Creek California is doing well
Beating? Properties here are up another 10% yr over yr, lol.
Not many transactions has nothing to do with my home’s value, investment property’s prospective rents.
Loving it!!!!
This may sound silly but the percentage shouldn’t matter unless you want a high mortgage but if you don’t want a high mortgage that means just put more money down. The more you put the down the lesser the mortgage. I think those percentages and other numbers are stupid imho. Just put a heavy amount of money (cash) down.
All houses need a 20% haircut
Seniors are really hurting. No affordable housing.
It's solely interest rates. Housing prices may be a little inflated but that is good for asset owners. Incomes need to catch up and interest rates need to come down
@eetmdreaming of what? It's all the people that think prices will crash are dreaming.
@@joefuentes2977 Exactly. The amount of civil unrest that would ensue with massive home depreciation is unfathomable. The better option for society is a shift in wealth distribution by inflating lower income wages, not destroy the middle and upper middle class.
@@MC-oo4pkwho cares if property values crash. Its just paper wealth.
@@MC-oo4pkwhat you are describing is a wage price spiral which is death to any country who has been unfortunate enough to experience it. See Venezuela Argentina etc… inform yourself
@@mannyortega9667 the wage price spiral is orthodox economic propaganda. If wages go up and production also increases then firms can absorb the additional demand because they created sufficient supply. The wage price spiral is just an excuse firms and economist make for being too lazy expand capacity by investing in infrastructure. Educate yourself and stop being an NPC.
I've never seen anyone smile so broadly while at the same time look like they're passing a kidney stone.
The investors are causing all the issues. They are holding the homes and using them for rentals and vacation homes. They are Squeezing inventory from real buyers.
Your right. I checked Zillow and hardly any homes for sale in Seattle, yet switch to Zillow rentals and the map is covered with vacant homes for rent and the prices are about 40% less than what one would pay for a mortgage with 3% down on the same homes today. There is a lot of pain there of investors just trying to get a renter to at least break even on the mortgage payments if not take a loss until the values increase some day.
@@mylesgray3470100% we have record breaking apartment builds nationally and massive new rental inventory in the pnw landlords and flippers have driven up a speculative bubble in a tough regulatory environment and they gotta fold.
Retired. Paid for house. I would like to move. Find a properly priced house in new locale?
Lol people are definitely heading into dire economic straits if you look at debt levels and everything else going on
Chilling on a 4% rate and thinking, wow that’s crazy. Got a friend who’s at 2.9%. Crazy to think of a 7% rate. Ouch.
A Million high net worth individuals are SELLING out of California and BUYING in other places.
Central Arizona is building 1.5 million $ pieces of junk and they are sold before being built.
There are not enough rentals available for the blue collar guys building them.
That just middle of the market.
A view up in the mountains in a gated community starts at 2 million
85% of the new money is from California
Yep and unfortunately they're drag their politics along with them and change the state into exactly what they're trying to escape.
Staying informed about real estate market trends is essential for making informed decisions, whether buying, selling, or investing.
One of America's best CEOs.
Home Price is the problem.
Interest Rates are not the problem.
Short-term rental services like AIRBNB are the problem. Housing is a necessity,not a business. Until something is done about this, nothing is going to change. Plain and simple greed.
Disaster? Why were rates at 3%? Since when can one borrow money for 30 years for next to nothing? 7% is normal.
Can we please stop pretending we've "seen these rates before"?
20% on $60k is not the same as 8% on $1.2m. Adjusted for inflation you would have needed 35% interest to have an equivalent payment.
This time is not like last time.
“We have to take somebody else’s lunch if we want to continue to grow”
You have no idea how true that is….
I thumbed up this video immediately after the Rambo quote: "Day by Day Troutman"
Evil 😈 laughing while people lose everything they worked so hard for 🤬
How is artificially low interest rates "working hard?" These people got free money for a long time and over-spent.
The only way I see people moving or refinancing with these high interest rates is a government incentive like 2008 🤷🏽♀️
Home values are declining in every state.
There's more realtors than homes for sale
This guy was on shark tank!
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This guy isn't the brightest bulb in the room.😂
There are super low inventories because a bunch of speculative money has flooded into buying homes. Tax and regulate this out of existence and you'll see millions of homes suddenly become available.
Nobody is talking about the true absolute root cause of all of this - people were afraid of getting a cold.
The American consumer is who's taking a beating.
Investors big and small are HOARDING HOMES!!
Redfin and Zillow are the two biggest companies propping up these insane overvalue prices. Absolute scam artists. Find a local realtor you can trust.
I didn’t know the Joker was Redfin’s CEO.
I never trust the word of anyone who profits from selling the items he is commenting on.
We need housing prices to collapse at least 35% across the board. The Federal Funds rate should be over 8%. Food inflation is at 13%. It is time to reduce debt and wealth. Bring on the Depression!
Those are some bad thoughts. a lot of people will lose their entire lives savings and homes.
Wow. Really we need somebody to tell us why? High home prices and high mortgage rates are not a good recipe for robust home sales. Home prices have to come down to make mortgage payments affordable.
Because, nobody wants to pay 700K for a mildew smelling home their grandparents would have paid 50k for, at 8% interest?
Great leader 👍🏽👍🏽⭐️⭐️⭐️⭐️⭐️
Beating? 😆 in my area a trash house is selling for 500k and people are buying.
The people that are trying to buy are the ones taking a beating.
This is the most tone deaf analysis I’ve seen. Home prices are hugely inflated right now, and many analysts are seeing signs of a correction - to the tune of 30%. The reason the market is slowing down is because affordability is at a low point, but interest rates aren’t even the core issue. It’s price. It’s doubled in just the last handful of years.
This guy is quirky. I like it.
Dude looks like crying
Redfin was part of the problem
Keep interest rate at 8% i paid 8% 34 years ago for my mortgage
Your logic is warped.