I'm eagerly looking forward to a potential housing crisis to make affordable purchases after selling some properties in 2025. I'm also considering investing in stocks as a backup plan. Any advice on the best timing for these investments? I've seen significant trading profits, but there are concerns about the market's instability and the chance of a dead cat bounce. Could you explain why this market phenomenon occurs?
Dealing in both real estate and stocks could indeed be a wise choice, particularly when accompanied by a carefully crafted trading plan to maneuver through profitable prospects.
In challenging market conditions, it's not about mistakes; it's more about lacking the expertise to thrive. During such times, seasoned individuals who weathered the 2008 financial crisis are best positioned to foresee substantial gains.
Contemplating the idea of consulting advisors for guidance has been occupying my thoughts lately. I'm at a point where seeking counsel could be beneficial, but I'm uncertain about the tangible advantages their services could provide.
‘Grace Adams Cook’ , my CFA, boasts a stellar reputation in her field. I suggest delving deeper into her qualifications. With her extensive experience, she serves as an invaluable asset for those seeking financial market advice.
Curiously searched her full name I must say, She appears to be quite knowledgeable. After coming across her web page, I went through her resume and it was quite impressive.
Take note that whenever people talk about housing prices going up in past decades(prior to the year 2002 after 9-11) that they went up 10-15% over an entire decade not every month.
Everything is fundamentally different because of the booomer generation now entering mass retirement and passing away, population stagnation overall, and higher interest rates due to elders retiring and no longer paying much in taxes or investing.
I think more people are willing to buy despite the increase in interest rates. However we are not willing to pay $750K for a home that was listed in 2020 for $475K.
No one can predict the future. But if prices don't drop, then the American standard of living will drop. Everyone is betting on the U.S. dollar gaining strength and home prices falling. The counter argument: the U.S. dollars will continue to be weak and the American middle class will have to buy smaller and less desirable homes. As Dave hinted at in the video, in the 1960's people were contempt with a small 1,000 square foot house and one family car. These prices could be the new norm and the American standard of living may be going backwards.
2008 was not about supply and demand. It was about banks lending money to ppl who could not pay back the loan. The bubble popped, because the money was not coming back to the banks.
Dave apparently forgot aalll about the 1980s real estate bubble that wiped out every S&L in the country. I bought my house in 1987 and 13 YEARS later it was still worth less than I paid for it.
I love when Rachel is on the show. The father-daughter dynamic allows her to playfully challenge or pick on Dave. Their banter broadens the conversation and allows for a different perspective.
Predictions are difficult. I am an real estate investor and I have very much respect for Dave, his insights are very much deep knowledge. He has been around for a long time, built many hundred millions in net worth in real estate without using debt.
@A S Precidictions are difficult, especially about the future as they say :-) I just mean Daves principles in real estate, how to buy, how to let, how to finance are pretty much rock solid. I have been investing since 2008 and not found a single reliable source for forecasting but I am still hoping to find one ;-)
For those of us who went through our formative years, teen years and young adulthood without anyone to teach us about finances, I recommend adopting Dave Ramsey. I'm definitely a late bloomer when it comes to finances but Dave is helping get my head straight. At one point, I wanted to not be attracted to his teachings for reasons that are irrelevant now, but I look forward to clicking onto any of his videos. Thanks Dave.
I agree - I first learned Dave's philosophy in a personal finance class and haven't gone back I don't agree with everything Dave says, but being debt free is being financially free, and being financially free is one of the most valuable freedoms one can have
Isn’t it amazing how the school system does nothing to teach kids about finance? More important to teach about gender though. I digress. Dave has some fantastic advice and it’s certainly worth paying attention. One thing I have learned in my years is to take time to look at history and use the grey matter in your head. There’s cyclical movement and you can use that to make calculated risks.
Ridiculous. Higher interest rates, increasing inventory, recession, higher food prices, gas prices, wages not keeping up with housing, over 35 percent of household's living check to check, investors will dump soon. Housing will drop big
WRONG If the mortgage rates go up the home prices go down because the monthly payment goes up. If they raise rates, like Powell says they're going to, house prices will go down.
True In Toronto suburbs people bought in January and February and now their home is worth 10-15% less already becouse of intrest rates hikes. Alot of them bought their house first and now they have to sell their house for lower than they thought, some of them are screwd
Then I will just rent out because of inflation and my low monthly rate. I am making out like a bandit on my rental and paying off the mortgage doing nothing... Rent always goes up.
Exactly, I've been saying this all along. Someone is either willing or unwilling to pay the price you are asking, if unwilling, you start to question your price, then in order to "sell" you have to consider dropping the price or pull back and not sell, it's all just a game.
BINGO!!!! Exactly! I've been saying this for years! I actually think that we consumers have waaaaay more POWER than we realize. We just never actually USE it. 🙃
People have had to stretch to buy houses going hundreds of dollars over budget, than hundreds over budget for higher gas, than over budget even more for food and necessities due to this massive inflation. Yet they are making the same money with little to negative margins. This could cause wide spread foreclosure if the inflation and fuel prices don’t go down soon
the difference this time will be an inflationary depression. It wont crash due to poor mortgage choices by banks it will crash because our money will be worthless and we will be spending all our money on the basics just to survive
I don’t think Dave is realizing that people had a lot of extra money in 2020-2021 that is running out quickly if they haven’t blown all of it already and are now getting into lots of debt. I believe if home prices come down and people don’t have the equity they had a year ago, this will create a lot of foreclosure’s 🤷🏻♂️
The more I hear people like Dave Ramsey and other realtors keep trying to keep people calm and repeating this will be like 2008 the more I worry. Selling my properties ASAP just like every other investor I know !
I have always been fascinated by investing, but without adequate knowledge on the right thing to do, I find it difficult to start. *I politely ask, what’s the best sector to invest in?*
It is entirely possible for a smart and patient investor to go into investing with the right information. One of the best ways to get started is to get help from an experienced Financial Consultant . I've been investing since *2015* and I'm extremely happy with the returns I get working with my investment advisor; * Hamilton Phoebe Zoe*
@@johnpoter9007 I am very interested in this information and I've some money sitting idly in the bank with that I can start investing without further delaying, If you don't mind How can I get in touch with your professional?
@@rudriguezbauer7520 As to get more details about my Investment Professional; *Hamilton Phoebe Zoe* easily do quick internet research where you can easily write her from, do your research with her full names mentioned.
It’s good to make decisions that help you ensure good finances. It doesn't matter how many jobs you have, but what matters is how many sources of income you have. Getting a side hustle or passive income is a very wise financial decision.
You were wrong about the 2008 crash. You said it would never happened like you are saying now. You could just as likely be wrong about this. I don’t know what’s going to happen but record high inflation, record high debt, crazy things going on in the supply chain, things no one has ever seen before makes it seems like the future doesn’t look so great.
The difference this time is the homes have the same value, but our dollar is worth less, so it takes more dollars to buy it. Bubbles are inflated value, and we don't have inflated value now, just deflated money because Washington keeps spending so much.
Then our dollar is less than 20% what it was ten years ago and since wages haven't increased five fold like housing has in ten years. There will be a crash
@@bobsacamano7653 I'd say 20% is being generous depending on the product. New trucks that sold for $50k five years ago are going for north of $80k. USED trucks are going for that $50k today.
My house value has gone up $105k in two years. History indicates this trajectory can't go on forever. However, no one knows if housing prices will settle, go down, keep rising, or the time periods for the changes. If they say they do, they're lying.
Yep... who's to say interest rates won't make people go broke again and a lot of people won't be able to pay back their loans on their houses again. Thus causing a huge foreclosure of houses again.
Absolutely correct, Him Bike, Dave and all those collective of parasites who've never done a days productive work in a factory, farm or warehouse, etc, etc have no idea
Dave you are wrong. It's worst than 2008. Inflation is at its highest in 40 years. Consumers debt in 2022 surpasses 2008 not to mention overall cost of living (utilities, food, gas etc). We are heading for dark times which includes real estate values.
I think what you're not getting is our money has been devalued by half in two years. Housing prices haven't actually gone up. The supply of money is what went up. Prices may settle a little but they aren't coming down.
Very important note. It very much matters WHO is buying the homes today. A home bought by Blackrock is essentially no longer a house. They are investments for the long term. The pricing is not coming down.
I used to be the kind of person that wanted to "wait" for this and that to happen. Then I realized that the waiting I was doing was really a flaw on my end as I realized it was never going to be a good time no matter when that time was. Just jump in! Don't be reckless, but if you can do it, you should. When things do go down, there will be people in a better position than you ready to price you out. Same people who can buy while things are up will most def compete against you when things are down. And chances are, those people are better situated to get that property over you.
The postwar generation is now entering mass retirement and never going to invest much or pay many taxes again. That’s why the cost of capital is going up. Theoretically, the millennials would make up for that, but they make over 20% less in real buying power terms than their parents did in their 30s, so they aren’t paying the taxes or investing enough to keep the cost of capital cheap. Once the elders have to live in a nursing home or just pass away, prices come down. There’s not a replacement. GenZ is small by comparison.
Dave the thing that scares me, is that someone with your experience, does not see what is coming! Look how fast our housing inventory can change, in fact you gave us a good example of one. DO you know think that can happen again? I encourage everyone to google housing inventory. You will be SHOCKED at what you see! Edit: Dave wants to give us a lesson on economics. Here is one for you. People don't buy prices get slashed
I live in Orange County California and new homes are being built everywhere. I have noticed in my neighborhood people are cutting home prices by $100K and still no takers. I see a bubble forming.
Agreed I don’t think the price of homes will go down by much but it will go down due to developers development more homes. I do believe rates will go down for sure.
The more I hear people like Dave Ramsey and other realtors keep trying to keep people calm and repeating this will be like 2008 the more I worry. Selling my properties ASAP just like every other investor I know !
I don't think it is. Just feel worse for most. Many didn't learn a thing from 2008 and being hammered again. At least that what I see from talking to friends,family,and neighbors that prepared and the ones that did not. Had 14 years to pay off the home and/or other debt,save,invest,control family size,etc...
It has the potential to be worse due to massive inflation and coming food shortages. Would you rather pay your expensive mortgage or have some food to eat?
Houses prices are starting to "Dip" they arent crashing though. Housing needs to resettle to its original state probably around mid-late 2020. Housing is still too high and will need to fall. The prices are out of range for most americans now. Especially if you follow daves 30% rule lolol
Don't know anyone that wants to sell their home where I live. I guess many have what they want and thankful for what they have. Not selling my home here or in Florida no matter what the Canadians offer.
Houses don’t need to be affordable to “most Americans” now or ever. They need to be affordable only to enough people to consume the supply of available ones at any given time.
The more I hear people like Dave Ramsey and other realtors keep trying to keep people calm and repeating this will be like 2008 the more I worry. Selling my properties ASAP just like every other investor I know !
Some counter arguments: In 80's house prices were relatively much lower when compared to prevalent wages. While this is not 08, as we dont have subprime mortgages, we do have tons of investor purchased homes and every one is highly leveraged due to the super high prices. With recession / job losses, investors selling and super high interest rates it can be worse than 2008 this time around. See what has already started to happen in Canada.
Yeah, just because there are different pieces on the board does not mean that your king cannot be checkmated. We are definitely about to see a wave of sales, with increased interest rates, incoming recession, there is no way home prices are going anywhere but down from here
@@Zachery_ Was 20% or more. Many forget that part for some reason. Home prices were lower but with very high mortgage payments and knowing most of it was going to the bank as interest made it irrelevant. Rent increased because of it and I had to live in my van for a while.
The more I hear people like Dave Ramsey and other realtors keep trying to keep people calm and repeating this will be like 2008 the more I worry. Selling my properties ASAP just like every other investor I know !
Theres no way housing prices dont come down… they were artificially hyper inflated by money printing and low rates. Now that has all stopped, it will come down
@@tmo8385 Down 25% from... the 70-100% surge that just happened? I watched homes go from $750k to $1.5m in a year and a half. Now some of those same homes are selling for $1.1-1.2m - a significant pullback - but nowhere near where they started. Buyers are already stepping up again. It's shocking.
People focus on the supply of the house, but what has been driving the supply and demand of houses is the supply of mortgages. The real estate bubble was caused with NINJA type mortgages and now we have mortgages being approved with higher debt to income ratios. This leave people being subject to more variable inflation such as gas, food, or other consumables. Efficiency has made this things as cheap as possible, but at some point food will represent a greater percentage of your monthly income. In California single family homes have become multi family houses having quad income being reported. I think this will continue to happen and the prices will continue to rise. Until there is further regulation on how a mortgage can be written, mortgage writers will find a way to get larger and larger mortgages approved.
It’s interesting to read both sides thinking they’re right on the future. If anything, this is showing me that paranoia & fear is real when you don’t have control of knowledge & wisdom.
Supply and demand is one thing but affordability is the other side of the coin, Sure lots of people WANT to buy houses that are in short supply but those people dont have 100% cash to buy them , they need the banks to loan it to them at an interest rate that is increasing and the banks know they wont be able to make the payments so wont lend the higher prices. It's coming down and imho it will come down a lot.
The main difference about this one imo is.... people are just out of money. Gas. Taxes. Food. People cannot afford to live. Thus housing prices drop as supply sky rocket and buyers drop due to no money
Most of those went to investors that walked away when prices dropped. You don't know that 20% of houses now are owned by investors. That is a higher then in 2007. Not sure why people say 2008 when it started in 2007.
We are in a recession . Tons of people were buying hand over fist paying way more for houses than what they were actually worth . Once people start losing their jobs they’re already spread thin financially which leads to FORECLOSURE!! WHICH EQUALS A FLOOD OF INVENTORY WHICH EQUALS THE COST OF A HOUSE TO GO DOWN
I don’t care if it’s 10x worse than the Great Depression in 1929 !! I live day to day … own nothing so therefore can’t lose anything !! If you’re 30 now and worrying , you are doomed … cos time is ticking and yous are all being controlled .. in 30/40/50 years time yous are old or dead … having been stressed all your lives about MONEY.
There are so many houses that have been sitting mid-construction around us for months and months. And then some seem to be thrown up and done in a matter of weeks. It's strange.
@@jalopy2472 Our area is hot as well, though I'm sure it pales compared to NYC. But they're preparing to build a new manufacturing plant, which is going to *hopefully* make this area boom.
Different builders.. depends also on how you’re financing the build. If the builder is sitting on a pile of cash and can pay for things right away that’s great and goes on without a hitch. Others that use bank financing have to wait on bank inspections then get a “draw” on the construction loan to continue so there could be a hold up there. Also could have some issues with inspections and hold ups or just getting caught in between projects. As a builder sometimes i could see someone getting a project to a stage it can sit for a couple of months while they sell another project to fund the completion of another 🤷🏻♀️
Thankfully, housing prices will come down in the 2030s thanks to booomers passing away, cost of capital going up, and population growth massively slowing generally. Things are looking up for younger half of millennials, and especially GenZ.
With a healthy age demography, looking like a pyramid, would never have this problem in the first place, but Americas median age is now the same as China’s at 38, rapidly aging in other words.
On this I respectfully disagree with Dave. We have housing prices that appreciated due to interest rates being at zero. Not just a measly drop, but zero. That had a huge impact on asset prices because everyone could just go out a buy assets(homes) for pretty much nothing. Money became cheap and all of a sudden everyone could afford whatever they wanted. NOW, with rates returning to normal the increase in prices due to cheap cash are now becoming unaffordable to most Americans. This has a major effect on asset prices like homes and stocks. Which is why we are seeing inflation in just about everything. First prices to fall are almost always stocks because they are liquid. Next will be housing, there is no question. Housing prices will come down. Builders are still building record number of homes, and most people are currently priced out. Supply and demand like Dave had mentioned will play out. Sorry Dave. You are wrong here.
I think Dave is off base. Foreclosures “everywhere” in 2008. That can happen again….we have crazy inflation, rising rates, a possible recession which will lead to unemployment. And with all of the home equity built with these insane increases, you have potential for people to get into trouble AGAIN.
It’s ok to be off based when debt free and home is paid off. This is why I prefer a paid off home. Even “good debt” isn’t so good when you can’t pay your mortgage. People had 14 years or more to correct their financial situation and others should have learned from the past.
New homes in my area the typical 1500 to 1800 sqft 3bd 2ba were 100 to 125 k in 05 those same homes are worth 200k more unchanged or upgraded. A brand new home today is 375 to 425. Guess how pay has changed in that time frame? It hasnt.
I will advise everyone to inspect the house the attic & basement before u buy it! U should pay for a professional inspection, but while the inspector is there inspect those areas with that inspector!!!
Two major differences between 2008 and now...4 million less housing units now, and people have much more equity in their homes, so foreclosures won't be as plentiful like they were after the predatory lending boondoggle.
There was a huge supply in 2008 because the majority of buyers defaulted. If you're going to build a house of cards, you're going to be at the mercy of each card going its job.
I agree the prices might not go down for houses but you probably aren't going to see them over bidding the asking price by $50k+ for a good long while.
@@Maelu-op9gf they’re not tho. A house is valued at 350k. The thing is people where asking and people where paying 400-425k a few months ago. It only looks like they are dropping because people can’t ask for the 400k like they where able to.
I think some factors like affordability is being ignored. The monthly outgoing on loans has nearly doubled. Lot of ARM mortgages will reset in coming months & years and if the rates are higher than the teaser rates, we will the supply of foreclosures will spike. Need data on all those. Investors and speculators of a second home will nearly vanish due to rates. Whoever sells their investment properties now will be laughing at the end.
For sure, we got lucky when our land purchase fell through recently. We quickly found another bit of land that was better, and got to keep our interest rate. It is 5.3% I think, but land is always higher than a traditional mortgage.
Intrest rates going up reduces risk. I'm flabbergasted that people don't understand this. Low rates are a subsidy to cash buyers. It's what lead to the run up.
Maybe not like 2008, but they are definitely gonna correct down from where they are. Rates are on the rise. My parents house halved its value during the 2008 crisis. Took a decade to get back to where it was prior.
They may correct down in real value, and certainly in some of the absurdly overpriced areas they will see decreases, but what Dave is talking about is that it's unlikely that the nominal values will see a substantial correction. In other words, the prices will remain roughly the same, but will trend slightly to more affordable due to wage inflation.
I’m fortunate enough to have paid off my mortgage. Small house. Best part of town. Staying put and instead of “more more more” is better. I’m quite content. I still work self employed at 65 and my biggest worry is the things I can’t control. Crime. Food shortages. Rising prices of gas and my customers going out of biz. Oh and FJB.
With rent cost skyrocketing, more people are going to want to buy to have a fixed living expense rather than a landlord jumping the price up every year... Dave is also right that people follow trends, so a lot of stocks are way over priced for the actual value, but people keep buying them which keeps raising the profits people make from buying them. If only I knew how to ride the wave.
@@kristenmarie9248 People should think about things like this when deciding to have more kids,new cars,too big of home,personal debt,FOMO,YOLO,etc... My property taxes hasn't gone up in over ten years. It actually went down $500. Probably something to do with homestead exemption I guess.
I remember when the Amway recruiter came to my house with my first items to sell. Little box with some chewing gum, shampoo and a few other things....for me to pay $100 for. Light bulb moment for me and the guy went home with his box and hopefully looked for a better way to help himself
i would still be raising the down payment money with dave's plan....although he is right and i am house poor at least now my family has a roof over their head
This is Dave's wishful thinking. He and his rich buddies own millions in investment properties and has no interest in seeing prices come down in price.
@@Falconlibrary he won’t go bankrupt again because he has no debt. If prices go down again, big whoop he doesn’t care b/c he already owns his real estate outright.
Whether you own the house or blackrock owns it, there has to be somebody to live in it and pay. When Dave’s generation is gone or in skilled care (starting now with avg bomer being 70) that will ease a lot of pressure on existing housing, to say nothing of building new housing. Gen Z is quite small comparatively.
Millennials are, not Gen Z. Gen X sandwiched in between always too small to have made a difference. Millennials make 20 percent less than their parents did at 35 in real buyin power terms. So they can’t fix it.
@@mullisb430 I get a kick out of people talking about generations like they are tranches of people that move as one. It means nothing; it’s just an arbitrary stratification. Population continues to grow in USA and will for the foreseeable future. It’s not like boomers will all die in 2028 leaving all these homes empty.
GEN Z would need to be nearly equal in size to millennials, same way millennials were to bomers, but they aren’t. small Gen X sandwiched in between, millennials not making as much as their parents did at this age, and then the smaller Gen Z. Half the country is now 38 plus. Its growth slowing rapidly.
Dave is making the common mistake when looking at supply and demand. The demand curve is NOT the number of buyers, it’s the number of buyers x the amount those buyers have available to spend - which is directly tied to interest rates.
I'm eagerly looking forward to a potential housing crisis to make affordable purchases after selling some properties in 2025. I'm also considering investing in stocks as a backup plan. Any advice on the best timing for these investments? I've seen significant trading profits, but there are concerns about the market's instability and the chance of a dead cat bounce. Could you explain why this market phenomenon occurs?
Dealing in both real estate and stocks could indeed be a wise choice, particularly when accompanied by a carefully crafted trading plan to maneuver through profitable prospects.
In challenging market conditions, it's not about mistakes; it's more about lacking the expertise to thrive. During such times, seasoned individuals who weathered the 2008 financial crisis are best positioned to foresee substantial gains.
Contemplating the idea of consulting advisors for guidance has been occupying my thoughts lately. I'm at a point where seeking counsel could be beneficial, but I'm uncertain about the tangible advantages their services could provide.
‘Grace Adams Cook’ , my CFA, boasts a stellar reputation in her field. I suggest delving deeper into her qualifications. With her extensive experience, she serves as an invaluable asset for those seeking financial market advice.
Curiously searched her full name I must say, She appears to be quite knowledgeable. After coming across her web page, I went through her resume and it was quite impressive.
Take note that whenever people talk about housing prices going up in past decades(prior to the year 2002 after 9-11) that they went up 10-15% over an entire decade not every month.
Remember when Dave said in 2007 that there wasn't a housing bubble? Pepperidge Farm remembers....
He also said dont worry about tornadoes.
a bubble yes, mostly a financial bubble though.
This time it's different.
Everything is fundamentally different because of the booomer generation now entering mass retirement and passing away, population stagnation overall, and higher interest rates due to elders retiring and no longer paying much in taxes or investing.
Prices recovered from the 2008 crash and are well above what they even were in 2007, so he had a point…
No crystal ball but $300k worth of mortgage with the rates now vs rates from a few months ago is ~$400/month higher payment.
Me lp
I think more people are willing to buy despite the increase in interest rates. However we are not willing to pay $750K for a home that was listed in 2020 for $475K.
Literally, houses listed for $475K in 2020 are being sold for $750K today.
Bingo!
No one can predict the future. But if prices don't drop, then the American standard of living will drop. Everyone is betting on the U.S. dollar gaining strength and home prices falling. The counter argument: the U.S. dollars will continue to be weak and the American middle class will have to buy smaller and less desirable homes. As Dave hinted at in the video, in the 1960's people were contempt with a small 1,000 square foot house and one family car. These prices could be the new norm and the American standard of living may be going backwards.
There’s someone that is willing though
I think we may not want to …but we may have to. 😐
2008 was not about supply and demand. It was about banks lending money to ppl who could not pay back the loan. The bubble popped, because the money was not coming back to the banks.
Dave apparently forgot aalll about the 1980s real estate bubble that wiped out every S&L in the country. I bought my house in 1987 and 13 YEARS later it was still worth less than I paid for it.
First world problems.
You'd think that his bankruptcy during the S&L crisis would keep that one branded in Dave's memory
California real estate crashed in 1990 and it took 10 years to recover.
Dave doesn't understand alot of things lol
What is S&L
I love when Rachel is on the show. The father-daughter dynamic allows her to playfully challenge or pick on Dave. Their banter broadens the conversation and allows for a different perspective.
Just unfortunate how she doesnt better prepare to question his stance a lil more.
Yes! Love it!!!
Disagree... other than get a worthless degree and go work for papa what has she done that makes her a financial authority on anything?
She looks pregnant.
I disagree she is horrible to listen to
Dave is a master of getting out of debt. Predictions are not his thing.
100% nailed it
Predictions are difficult. I am an real estate investor and I have very much respect for Dave, his insights are very much deep knowledge. He has been around for a long time, built many hundred millions in net worth in real estate without using debt.
@A S Precidictions are difficult, especially about the future as they say :-) I just mean Daves principles in real estate, how to buy, how to let, how to finance are pretty much rock solid. I have been investing since 2008 and not found a single reliable source for forecasting but I am still hoping to find one ;-)
Well said. Not building wealth, not leveraging debt and capital allocation. But getting your debt away. Nothing else albeit important
If you avoid debt,live within means,save,invest,etc..you don’t need to depend on predictions.
For those of us who went through our formative years, teen years and young adulthood without anyone to teach us about finances, I recommend adopting Dave Ramsey. I'm definitely a late bloomer when it comes to finances but Dave is helping get my head straight. At one point, I wanted to not be attracted to his teachings for reasons that are irrelevant now, but I look forward to clicking onto any of his videos. Thanks Dave.
I agree - I first learned Dave's philosophy in a personal finance class and haven't gone back
I don't agree with everything Dave says, but being debt free is being financially free, and being financially free is one of the most valuable freedoms one can have
There were books on personal finance in school and public libraries.
@@blackworldtraveler3711 Now all I need is a time machine.
Isn’t it amazing how the school system does nothing to teach kids about finance? More important to teach about gender though. I digress. Dave has some fantastic advice and it’s certainly worth paying attention. One thing I have learned in my years is to take time to look at history and use the grey matter in your head. There’s cyclical movement and you can use that to make calculated risks.
Ridiculous. Higher interest rates, increasing inventory, recession, higher food prices, gas prices, wages not keeping up with housing, over 35 percent of household's living check to check, investors will dump soon. Housing will drop big
WRONG
If the mortgage rates go up the home prices go down because the monthly payment goes up. If they raise rates, like Powell says they're going to, house prices will go down.
True
In Toronto suburbs people bought in January and February and now their home is worth 10-15% less already becouse of intrest rates hikes.
Alot of them bought their house first and now they have to sell their house for lower than they thought, some of them are screwd
Not necessarily…..
Then I will just rent out because of inflation and my low monthly rate. I am making out like a bandit on my rental and paying off the mortgage doing nothing... Rent always goes up.
Going down slightly like 1-5% and a crash are different
Doesn’t matter what the item is. It’s only worth what someone is willing to pay for it. Not what someone SAYS it’s worth.
Exactly, I've been saying this all along. Someone is either willing or unwilling to pay the price you are asking, if unwilling, you start to question your price, then in order to "sell" you have to consider dropping the price or pull back and not sell, it's all just a game.
@@jwlsngold5026 absolutely right. Just experienced this exact scenario trying to sell something.
BINGO!!!! Exactly! I've been saying this for years! I actually think that we consumers have waaaaay more POWER than we realize. We just never actually USE it. 🙃
Dave sounds like a car salesman in this video.
@@kristenmarie9248 yes he does. Lol!!!
People have had to stretch to buy houses going hundreds of dollars over budget, than hundreds over budget for higher gas, than over budget even more for food and necessities due to this massive inflation. Yet they are making the same money with little to negative margins. This could cause wide spread foreclosure if the inflation and fuel prices don’t go down soon
Electric rates where I live increased 38 percent June 1st. So there's that too.
Blackrock will be buying those all up. All planned all done with purpose. Look up the WEF, agenda21 , you will own nothing and be happy.
the difference this time will be an inflationary depression. It wont crash due to poor mortgage choices by banks it will crash because our money will be worthless and we will be spending all our money on the basics just to survive
When money is worthless, home prices increase.
True. And we are regularly seeing "toys" being dumped now: motorcycles. boats, RV's, etc. People must eat.
I don’t think Dave is realizing that people had a lot of extra money in 2020-2021 that is running out quickly if they haven’t blown all of it already and are now getting into lots of debt. I believe if home prices come down and people don’t have the equity they had a year ago, this will create a lot of foreclosure’s 🤷🏻♂️
There is a chance a lot of wealth will be lost from overpaying for homes.
The more I hear people like Dave Ramsey and other realtors keep trying to keep people calm and repeating this will be like 2008 the more I worry. Selling my properties ASAP just like every other investor I know !
Absolutely positively correct
Much of the 2008 panic-selling was unforced and done because they were under water. If they had simply held on, as we did, they'd have been fine.
And a lot of suicides
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You were wrong about the 2008 crash. You said it would never happened like you are saying now. You could just as likely be wrong about this. I don’t know what’s going to happen but record high inflation, record high debt, crazy things going on in the supply chain, things no one has ever seen before makes it seems like the future doesn’t look so great.
Not looking so great for people who ignored 2008 and did nothing about it.
The difference this time is the homes have the same value, but our dollar is worth less, so it takes more dollars to buy it. Bubbles are inflated value, and we don't have inflated value now, just deflated money because Washington keeps spending so much.
Then our dollar is less than 20% what it was ten years ago and since wages haven't increased five fold like housing has in ten years. There will be a crash
This is the real answer.
This ^^
50% increases in some areas in less than 24 months isn't inflated value?
@@bobsacamano7653 I'd say 20% is being generous depending on the product. New trucks that sold for $50k five years ago are going for north of $80k. USED trucks are going for that $50k today.
My house value has gone up $105k in two years. History indicates this trajectory can't go on forever. However, no one knows if housing prices will settle, go down, keep rising, or the time periods for the changes. If they say they do, they're lying.
True! There isn’t one person or one company on this earth that can predict where housing prices are going..
Yep... who's to say interest rates won't make people go broke again and a lot of people won't be able to pay back their loans on their houses again. Thus causing a huge foreclosure of houses again.
Well said!!
@@TheFlyingZulu unless they are in a variable rate, then yes if rates go up then they might be squeezed but if they are fixed then they should be fine
@@TheFlyingZulu They are real assets so inflation will keep them afloat while we all get poorer.
The smartest answer Dave could’ve given is
“I haven’t the foggiest idea what will happen”
Absolutely correct, Him Bike, Dave and all those collective of parasites who've never done a days productive work in a factory, farm or warehouse, etc, etc have no idea
Or better, "yes, housing prices have nowhere else to go but down. It has already started as the data shows."
Dave you are wrong. It's worst than 2008. Inflation is at its highest in 40 years. Consumers debt in 2022 surpasses 2008 not to mention overall cost of living (utilities, food, gas etc). We are heading for dark times which includes real estate values.
Okay doomer.
I think what you're not getting is our money has been devalued by half in two years. Housing prices haven't actually gone up. The supply of money is what went up. Prices may settle a little but they aren't coming down.
People have more Cash than Debt, this is the fuel that drives inflation.
Darkest time: real estate crisis, social unrest, and inflation.
@@CookinCatWithMesoMatt And hardly anyone had their salaries double so it just got that much harder for your average family to get by.
Very important note. It very much matters WHO is buying the homes today. A home bought by Blackrock is essentially no longer a house. They are investments for the long term. The pricing is not coming down.
I used to be the kind of person that wanted to "wait" for this and that to happen. Then I realized that the waiting I was doing was really a flaw on my end as I realized it was never going to be a good time no matter when that time was. Just jump in! Don't be reckless, but if you can do it, you should. When things do go down, there will be people in a better position than you ready to price you out. Same people who can buy while things are up will most def compete against you when things are down. And chances are, those people are better situated to get that property over you.
You should buy few houses NOW, I am sure the sellers need buyers like you as buyer demand has dried up.
House in my neighborhood was asking 799 pending fell out of escrow. Then asked 769 now 699. Prices clearly going down.
where in the US? Here in Cali it is still crazy.... can't even get what I would have a few months ago.
@@bernsfindsandmore7636 rancho murieta CA
One house in my neighborhood went up in price. Prices clearly going up.
The postwar generation is now entering mass retirement and never going to invest much or pay many taxes again. That’s why the cost of capital is going up. Theoretically, the millennials would make up for that, but they make over 20% less in real buying power terms than their parents did in their 30s, so they aren’t paying the taxes or investing enough to keep the cost of capital cheap. Once the elders have to live in a nursing home or just pass away, prices come down. There’s not a replacement. GenZ is small by comparison.
You are so right.
This feels so Orwellian.
The old guard is on it's way out.
Dave the thing that scares me, is that someone with your experience, does not see what is coming! Look how fast our housing inventory can change, in fact you gave us a good example of one. DO you know think that can happen again? I encourage everyone to google housing inventory. You will be SHOCKED at what you see!
Edit:
Dave wants to give us a lesson on economics. Here is one for you. People don't buy prices get slashed
There actually are a lot of houses but they’re not for sale so it doesn’t do much good…
I live in Orange County California and new homes are being built everywhere. I have noticed in my neighborhood people are cutting home prices by $100K and still no takers. I see a bubble forming.
@@monsterpig3270 If they cut the price and there are no takers, the bubble already happened.
He think is perfect, there are people won’t recognize when they are wrong, no one knows the future 😂😅😂😅🤣🤣
Agreed I don’t think the price of homes will go down by much but it will go down due to developers development more homes. I do believe rates will go down for sure.
Home prices could go up 400% and these guys would still be saying “we’re not in a bubble okay..”
It’s all about number aswell do you have any clue on how many house we’re down and population Kees growing.?
Says the guy who has most of his wealth tied into real estate 😆 🤣
The more I hear people like Dave Ramsey and other realtors keep trying to keep people calm and repeating this will be like 2008 the more I worry. Selling my properties ASAP just like every other investor I know !
Well he really puts his money where his mouth is at least.
@@pinkdiscomosh2766 nope. It’s called saving your investment.
Dave is right… This isn’t 2008 it’s actually worse…
Only because the numbers are much larger.
@john Smith right in his heart!
I don't think it is. Just feel worse for most.
Many didn't learn a thing from 2008 and being hammered again.
At least that what I see from talking to friends,family,and neighbors that prepared and the ones that did not.
Had 14 years to pay off the home and/or other debt,save,invest,control family size,etc...
It has the potential to be worse due to massive inflation and coming food shortages. Would you rather pay your expensive mortgage or have some food to eat?
@@Maelu-op9gf
I don't see the drama.
Not concerned.
Houses prices are starting to "Dip" they arent crashing though. Housing needs to resettle to its original state probably around mid-late 2020. Housing is still too high and will need to fall. The prices are out of range for most americans now. Especially if you follow daves 30% rule lolol
Don't know anyone that wants to sell their home where I live.
I guess many have what they want and thankful for what they have.
Not selling my home here or in Florida no matter what the Canadians offer.
Houses don’t need to be affordable to “most Americans” now or ever. They need to be affordable only to enough people to consume the supply of available ones at any given time.
@@joefunk76 well they weren’t affordable to most Americans in 2008 but people gave them loans and look at what happened.
@@A-Brax
Yup.....Then it became very affordable.
The more I hear people like Dave Ramsey and other realtors keep trying to keep people calm and repeating this will be like 2008 the more I worry. Selling my properties ASAP just like every other investor I know !
Some counter arguments: In 80's house prices were relatively much lower when compared to prevalent wages. While this is not 08, as we dont have subprime mortgages, we do have tons of investor purchased homes and every one is highly leveraged due to the super high prices. With recession / job losses, investors selling and super high interest rates it can be worse than 2008 this time around. See what has already started to happen in Canada.
Yeah, just because there are different pieces on the board does not mean that your king cannot be checkmated.
We are definitely about to see a wave of sales, with increased interest rates, incoming recession, there is no way home prices are going anywhere but down from here
Weren’t interest rates very very high in the 80s?
Agreed, the pieces to the puzzle are different, not all crashes are due to same reason.
@@Zachery_
Was 20% or more. Many forget that part for some reason.
Home prices were lower but with very high mortgage payments and knowing most of it was going to the bank as interest made it irrelevant.
Rent increased because of it and I had to live in my van for a while.
There’s still subprime mortgages out there!
House prices are up, car prices are up, and inflation is up. All those 90s babies are stuck waiting ._.
Tell me about it…
The more I hear people like Dave Ramsey and other realtors keep trying to keep people calm and repeating this will be like 2008 the more I worry. Selling my properties ASAP just like every other investor I know !
All the investors are DUMPING in Scottsdale, Arizona right now
Correction "this WONT be like 2008 the more i worry"
"No one will own anything by 2030 and everyone will be happy" - Claus Schwab 201/84
Theres no way housing prices dont come down… they were artificially hyper inflated by money printing and low rates. Now that has all stopped, it will come down
I dont think this will be a 2008 type crash, but it seems a 20% drop is reasonable. Which would only put prices back at pre pandemic levels
Millennial
I mean, the money printing hasn't stopped yet lol. It's not as bad but it's still going.
5-6 million houses sit vacant,
a lot are second homes bought with very low interest rates.
I'm guilty, $100K at 2.25% interest
If you think houses are expensive here in the U.S. see how much a house in Canada is. lol
That's why Canada housing is crashing now, and I think it's just getting started. Some areas are already down by 25%.
CycleCruza you're feeling the pain too lol
Can confirm.
@@tmo8385 Yeah, thankfully.
@@tmo8385 Down 25% from... the 70-100% surge that just happened? I watched homes go from $750k to $1.5m in a year and a half. Now some of those same homes are selling for $1.1-1.2m - a significant pullback - but nowhere near where they started. Buyers are already stepping up again. It's shocking.
In 1981 the interest rate was 15-16% ... It was bad on houses and auto buying....
People focus on the supply of the house, but what has been driving the supply and demand of houses is the supply of mortgages. The real estate bubble was caused with NINJA type mortgages and now we have mortgages being approved with higher debt to income ratios. This leave people being subject to more variable inflation such as gas, food, or other consumables. Efficiency has made this things as cheap as possible, but at some point food will represent a greater percentage of your monthly income.
In California single family homes have become multi family houses having quad income being reported. I think this will continue to happen and the prices will continue to rise. Until there is further regulation on how a mortgage can be written, mortgage writers will find a way to get larger and larger mortgages approved.
Love when Dave talks about the good ol' days like when he used his abacus in accounting class.
😂😂😂
Lol
Hahahaha
It’s interesting to read both sides thinking they’re right on the future. If anything, this is showing me that paranoia & fear is real when you don’t have control of knowledge & wisdom.
Supply and demand is one thing but affordability is the other side of the coin,
Sure lots of people WANT to buy houses that are in short supply but those people dont have 100% cash to buy them , they need the banks to loan it to them at an interest rate that is increasing and the banks know they wont be able to make the payments so wont lend the higher prices.
It's coming down and imho it will come down a lot.
The main difference about this one imo is.... people are just out of money. Gas. Taxes. Food. People cannot afford to live. Thus housing prices drop as supply sky rocket and buyers drop due to no money
Foreclosures are beginning to appear again in my area.
A “real estate panic” cause because of terrible practices by the big banks.
toxic loans given to people who had no intention of paying them.
Which was encouraged by everyone.
Most of those went to investors that walked away when prices dropped. You don't know that 20% of houses now are owned by investors. That is a higher then in 2007. Not sure why people say 2008 when it started in 2007.
@@insideoutsideupsidedown2218 No 'ABILITY' of paying them you mean.
We are in a recession . Tons of people were buying hand over fist paying way more for houses than what they were actually worth . Once people start losing their jobs they’re already spread thin financially which leads to FORECLOSURE!! WHICH EQUALS A FLOOD OF INVENTORY WHICH EQUALS THE COST OF A HOUSE TO GO DOWN
we are not in recession yet, you have to wait until July 1st to find out if we are in recession
Please say it louder for the people in the back
I don’t care if it’s 10x worse than the Great Depression in 1929 !!
I live day to day … own nothing so therefore can’t lose anything !!
If you’re 30 now and worrying , you are doomed … cos time is ticking and yous are all being controlled .. in 30/40/50 years time yous are old or dead … having been stressed all your lives about MONEY.
There are so many houses that have been sitting mid-construction around us for months and months. And then some seem to be thrown up and done in a matter of weeks. It's strange.
Supply Issues are a huge factor right now or builders are holding back hoping supply prices drop to continue building
@@jalopy2472 Our area is hot as well, though I'm sure it pales compared to NYC. But they're preparing to build a new manufacturing plant, which is going to *hopefully* make this area boom.
Different builders.. depends also on how you’re financing the build. If the builder is sitting on a pile of cash and can pay for things right away that’s great and goes on without a hitch. Others that use bank financing have to wait on bank inspections then get a “draw” on the construction loan to continue so there could be a hold up there. Also could have some issues with inspections and hold ups or just getting caught in between projects. As a builder sometimes i could see someone getting a project to a stage it can sit for a couple of months while they sell another project to fund the completion of another 🤷🏻♀️
Supply chain and labor issues are causing slow completion times for some builders in Florida.
Individual builders can’t afford to finish or can’t get materials because corporate builders have it all.
Thankfully, housing prices will come down in the 2030s thanks to booomers passing away, cost of capital going up, and population growth massively slowing generally. Things are looking up for younger half of millennials, and especially GenZ.
Partially morbid, but true
They are going to need this
With a healthy age demography, looking like a pyramid, would never have this problem in the first place, but Americas median age is now the same as China’s at 38, rapidly aging in other words.
Basically things will only get fixed once boomers finally die.
You’re citing something that is catastrophic for society as “looking up”.
If interest rates go higher, real estate prices will correct.
On this I respectfully disagree with Dave. We have housing prices that appreciated due to interest rates being at zero. Not just a measly drop, but zero. That had a huge impact on asset prices because everyone could just go out a buy assets(homes) for pretty much nothing. Money became cheap and all of a sudden everyone could afford whatever they wanted. NOW, with rates returning to normal the increase in prices due to cheap cash are now becoming unaffordable to most Americans. This has a major effect on asset prices like homes and stocks. Which is why we are seeing inflation in just about everything. First prices to fall are almost always stocks because they are liquid. Next will be housing, there is no question. Housing prices will come down. Builders are still building record number of homes, and most people are currently priced out. Supply and demand like Dave had mentioned will play out. Sorry Dave. You are wrong here.
And a liquidity crisis in the works - totally agree.
Oil per barrel was also at zero and great time to buy oil/gas,natgas,pipeline,royalty,and refinery stocks.
Let's see Dave explain how people should save for a home in denver where the AVERAGE price is 750k and gas is $5 a gallon.
That's ny
I think Dave is off base. Foreclosures “everywhere” in 2008. That can happen again….we have crazy inflation, rising rates, a possible recession which will lead to unemployment. And with all of the home equity built with these insane increases, you have potential for people to get into trouble AGAIN.
It’s ok to be off based when debt free and home is paid off.
This is why I prefer a paid off home. Even “good debt” isn’t so good when you can’t pay your mortgage.
People had 14 years or more to correct their financial situation and others should have learned from the past.
12% interest rate in 1984 on a home that cost less than 100k maybe even 50k is alot different than 12% on a 700k home.
New homes in my area the typical 1500 to 1800 sqft 3bd 2ba were 100 to 125 k in 05 those same homes are worth 200k more unchanged or upgraded. A brand new home today is 375 to 425. Guess how pay has changed in that time frame? It hasnt.
That's true we bought our house in 06 about 1560 sq for 132k now is worth almost 300k
I will advise everyone to inspect the house the attic & basement before u buy it! U should pay for a professional inspection, but while the inspector is there inspect those areas with that inspector!!!
@@b-rad-3849 your right about that! Great idea!!!
When raw materials of a wooden 2x4 is so expensive. It does not make sense for a house sell lower than the cost of materials + labor.
In in my area (north idaho) I heard 57% of income is going to mortgages. That ain't good.
Two major differences between 2008 and now...4 million less housing units now, and people have much more equity in their homes, so foreclosures won't be as plentiful like they were after the predatory lending boondoggle.
This is non-sense. The 08 crash wasn't simply about supply and demand
Right it was mainly about banks over lending but now they don’t want to lend to anyone
True.
@@GunGlutton why's that?
I knew people who lost multiple homes going stir crazy and buying them .
fun fact: it actually was supply and demand. ... because people couldn't get approved for loans. therefore the demand went down.
i know people that bought houses for almost nothing in '08, of course i was broke then! but i'm waiting to pounce if it happens again.
This message has been approved by Dave Ramsey trusted real estate providers
Better not delete this video. People who listen to this are going to come for blood in the next 1-2 years 👀
Lollll
Your daily reminder that Dave claimed inflation was a conspiracy theory that you hear about from your bar buddy that watches too much youtube
There was a huge supply in 2008 because the majority of buyers defaulted. If you're going to build a house of cards, you're going to be at the mercy of each card going its job.
It's simply employment status. 08 crash kicked off after unemployment started rising period
I agree the prices might not go down for houses but you probably aren't going to see them over bidding the asking price by $50k+ for a good long while.
I think some will go down but not as much as most want it to be.
Prices are already dropping though. It’s like ppl are oblivious
If you no longer have to pay $50k over asking, that means prices dropped by $50k
@john Smith or accepting an offer that is under asking price like I heard about happening back in the day.
@@Maelu-op9gf they’re not tho. A house is valued at 350k. The thing is people where asking and people where paying 400-425k a few months ago. It only looks like they are dropping because people can’t ask for the 400k like they where able to.
House prices are dropping +60% like in 2008. House prices are going to drop to somewhere around the precovid numbers.
I agree with Dave. Too many variables that drove home prices high. This isnt the same as the 2008 at all
the difference is there are nowhere near as many mortgages given to people who had no intention of paying on them.
I think some factors like affordability is being ignored. The monthly outgoing on loans has nearly doubled. Lot of ARM mortgages will reset in coming months & years and if the rates are higher than the teaser rates, we will the supply of foreclosures will spike. Need data on all those. Investors and speculators of a second home will nearly vanish due to rates. Whoever sells their investment properties now will be laughing at the end.
Thanks for asking Papa Dave that question! Love it when he talks real estate.
I think he's wrong. Prices will fall because people can't buy the houses.
I've been saying this for the past few months. With interest rates going up, the best time to buy was yesterday.
For sure, we got lucky when our land purchase fell through recently. We quickly found another bit of land that was better, and got to keep our interest rate. It is 5.3% I think, but land is always higher than a traditional mortgage.
Intrest rates going up reduces risk. I'm flabbergasted that people don't understand this. Low rates are a subsidy to cash buyers. It's what lead to the run up.
@@Mj-kb6ig Why would a cash buyer care or be affected by interest rates? Due to lower prices because of fewer competing buyers?
Maybe not like 2008, but they are definitely gonna correct down from where they are. Rates are on the rise. My parents house halved its value during the 2008 crisis. Took a decade to get back to where it was prior.
Yeah, I think we're going to lose about 20% on average overall.
They may correct down in real value, and certainly in some of the absurdly overpriced areas they will see decreases, but what Dave is talking about is that it's unlikely that the nominal values will see a substantial correction. In other words, the prices will remain roughly the same, but will trend slightly to more affordable due to wage inflation.
Supply and demand. It depends if people are moving to your area
People who paid 100k over asking. Aren’t gonna see that value for a little while.
I’m fortunate enough to have paid off my mortgage. Small house. Best part of town. Staying put and instead of “more more more” is better. I’m quite content. I still work self employed at 65 and my biggest worry is the things I can’t control. Crime. Food shortages. Rising prices of gas and my customers going out of biz. Oh and FJB.
Yes, exactly!!!
Dave is right… this is not 2008…. ITS MUCH WORSE
All I can tell you is my neighbors house was under water from 2004 when he bought it until 2020.
@@BillyBob-op6lg well it’s the reality of real estate sometimes. It doesn’t go up always.
Love hearing Dave say "Cray-Cray"
Agreed 👍 😆
Dave's right. Housing is in short supply, so there won't be a crash
With rent cost skyrocketing, more people are going to want to buy to have a fixed living expense rather than a landlord jumping the price up every year... Dave is also right that people follow trends, so a lot of stocks are way over priced for the actual value, but people keep buying them which keeps raising the profits people make from buying them. If only I knew how to ride the wave.
If people are renting, chances are they don't have the money to buy a home.
Home taxes keep going up too.
@@PositivelyBrainwashed renting costs as much as a mortgage now
@@kristenmarie9248
People should think about things like this when deciding to have more kids,new cars,too big of home,personal debt,FOMO,YOLO,etc...
My property taxes hasn't gone up in over ten years. It actually went down $500.
Probably something to do with homestead exemption I guess.
It is the buybacks that are keeping stocks astronomical...not level headed investing...
House prices aren’t going to go down. People are going to stop overbidding for them.
I remember when the Amway recruiter came to my house with my first items to sell. Little box with some chewing gum, shampoo and a few other things....for me to pay $100 for. Light bulb moment for me and the guy went home with his box and hopefully looked for a better way to help himself
What's that got to do with real estate?
How is there a housing shortage in 2021-2022 but never before ?
Low interest rates artificially created a shortage.
@@andrewmena8194 and supply chain backups, many builders couldnt find labors to build. Demand outpaced production
😂😂😂. He reminds me 2006-7 when all said no bubble…
i would still be raising the down payment money with dave's plan....although he is right and i am house poor at least now my family has a roof over their head
He is right this isn't another 2008. It is MUCH worse.
This is Dave's wishful thinking. He and his rich buddies own millions in investment properties and has no interest in seeing prices come down in price.
He doesn't want to go bankrupt again.
@@Falconlibrary he won’t go bankrupt again because he has no debt. If prices go down again, big whoop he doesn’t care b/c he already owns his real estate outright.
I think Dave might have a conflict of interest on this issue. He doesn’t want to believe.
I agree. I think he's in denial
I agree
Isn't he sponsored by the national association of realtors
You are most likely correct and what you say is very true. Thanks for the informative videos.
Dave the bubble is going to break and when it does, this depression will make the one in 1929 look like a picnic!
With higher interest rates less of your payment will go to principle. Prices will have to fall.
Supply is not coming back for a minimum of 5-10 years. Go ahead and sit on the sidelines and see what happens.
Whether you own the house or blackrock owns it, there has to be somebody to live in it and pay. When Dave’s generation is gone or in skilled care (starting now with avg bomer being 70) that will ease a lot of pressure on existing housing, to say nothing of building new housing. Gen Z is quite small comparatively.
Gen Z, Millenials, and boomers are all roughly the same size. Gen X is smaller than the other three.
Millennials are, not Gen Z. Gen X sandwiched in between always too small to have made a difference. Millennials make 20 percent less than their parents did at 35 in real buyin power terms. So they can’t fix it.
@@mullisb430 I get a kick out of people talking about generations like they are tranches of people that move as one. It means nothing; it’s just an arbitrary stratification. Population continues to grow in USA and will for the foreseeable future. It’s not like boomers will all die in 2028 leaving all these homes empty.
GEN Z would need to be nearly equal in size to millennials, same way millennials were to bomers, but they aren’t. small Gen X sandwiched in between, millennials not making as much as their parents did at this age, and then the smaller Gen Z. Half the country is now 38 plus. Its growth slowing rapidly.
@@patty109109 "Boomers" are leaving their paid off houses to their children.
2000-2006 was a RE boom due to low interest rates, ARMS even lower, that created the demand
if ramsey lived another 50 years every 10 years when are approaching a recession he would say this is not another 2008 , enough said .
Dave is making the common mistake when looking at supply and demand. The demand curve is NOT the number of buyers, it’s the number of buyers x the amount those buyers have available to spend - which is directly tied to interest rates.
I'll be shocked if this video is still up in a year.
Why are we not talking about the financial institutions that are buying up all the supply.
What good will talking do.
Just own REITs.
The average price in the GTA (Toronto) , Canada, has dropped 121k, since January