Wonderfully explained! Feeling a bit of pressure to sell because I have PTSD from having purchased my current home in 2007, watching my house value tank. I'm concerned that will happen again.
Great stuff Dave!! Key takeaway for me: Invest for the long-term. I also think inflation is a lagging indicator…meaning we won’t see the impact of inflation until housing prices normalize…this could act as another counter balance to rising interest rates
Normalize? The government spends money it doesn't have and the FED creates money out of thin air. We are exactly where policy put us. The Biden administration wants to spend at an unprecedented level and the FED cheers them on. That said, how likely will we see interest rates increase? Consider: Banks pay next to nothing and T-bills are not much better forcing investors into the market and real estate. Raising rates are highly unlikely, the game makers will do all they can to prevent de-fueling the economy built upon a house of cards (aka fiat currency).
@@1Skeptik1 Your comment aged well lmao, Feds raising rates 3 times in 2022, Feds will stop printing money and quantitative tightening will be here in 2022.
Stock market could crash...likely considering overvaluation and junk bonds. That would tighten lending and cause those in good standing to be unable to get funding.
@@pkmauryag619 Read books on real estate, asset protection, finance, building zoning rules, rules and regulations, whatever you can get your hands on. Watching youtube videos about RE isn't enough.
Do policies of Bank of Canada or Trudeau government really matter , when countries around the world are printing money and dumping it in Canada , creating affordability crisis here and exploiting and enjoying those already living here.
Very possible but home affordability might be still the same since mortgage payments will counter that, unless one pays cash or a significant down payment… also high inflation for a prolong period will diminish any housing bubble
In the last 6 months we've seen a housing correction somewhere around 3% to 5% depending on who you ask. Keep in mind inflation was at six and a half percent thanks to our lovely commander and chief so technically we are seeing a correction closer to 6%. I expect the correction to continue until it maxes out somewhere around 18%.
Where are you seeing a correction? If you’re taking about prices declining in September that’s due to normal seasonality and would not normally be seen as a correction. Because housing data is seasonal it needs to be looked at on a year over year basis, and housing prices are still up considerably when measured that way. There’s been no correction according to any of the many data sources I check.
@@biggerpockets Also, I don't think a correction of 18% will happend any time sooner, and when it does...wouldn't appreciation have already caught up at least by half? So that would just mean a correction of 9% overall
Home prices are going up because of supply and demand issues. Not because of interest rates. Sure, low interest help more people qualify and make homes more affordable which can spur some demand, but it's really the lack of new homes (particularly entry level homes) and the increasing population of first time home buyers taking homes off the market that is causing real estate values to rise. Also, the federal funds rate does not impact mortgage rates. The federal funds rate has an immediate impact on short-term borrowing rates like revolving debts and short-term borrowing instruments, but most mortgages are 30 year notes and are not impacted by the Fed hiking rates. Mortgage rates are directly impacted by inflation because inflation erodes the purchasing power of a fixed rate of return (like a mortgage bond). You are correct that inflation will force the Fed to raise the federal funds rate to curb inflation, but hiking the federal funds rate is a reaction to rising inflation. Mortgage rates will rise as a result of inflation, not the Fed hiking rates.
If mortgage rates are a result of inflation then why mortgage rates are at an all time low or within 0.5 a percent (70-80 years) historically and inflation is on a 30 year high?? And don’t tell me there’s a lag cause it’s been 5% or above for 6 months and I believe it should continue to be above for at least 3-4 months. Which will be the longest stretch since the 80s in where mortgage rates were in the 8-9%
As per my agent, the housing market is bullet proof, the whole country could fall but not the housing market. I am first time home buyer and I wish prices to double next year so all investors cheer up, Merry Christmas everyone 😁
He got his commission. If it's your primary always buy if it's a rental wait. You will get a better chance in the next few years. Investors and pushing the prices. They will be quick to sell flood the market with inventory. Pop
Isn't the actual issue that the last housing market happened because loans were given recklessly. That's not the case anymore, there will still be demand next year and who knows about supply so his agent is probably correct
Real estate agents will ALWAYS tell you that "now is the time to buy." You're asking a salesperson if you should buy what they're selling. What are they gonna say, no? lol
![ลองสุ่มไอโฟน 990 โกงมั้ย? [ โกงมั้ยครับ ep.101 ] | DOM](http://i.ytimg.com/vi/bfsWe0j492k/mqdefault.jpg)
Rates are going up but the housing prices will go down, so we all get confused now. Thank you for the info.
Wonderfully explained! Feeling a bit of pressure to sell because I have PTSD from having purchased my current home in 2007, watching my house value tank. I'm concerned that will happen again.
There is this thing called a recession...its been 13 years since the last one.
Your younger viewers dont even know what a market crash is.
March 2022
Great points. So for the foreseeable future, cash buyers like me are screwed.
Great stuff Dave!! Key takeaway for me: Invest for the long-term. I also think inflation is a lagging indicator…meaning we won’t see the impact of inflation until housing prices normalize…this could act as another counter balance to rising interest rates
Agreed Matthew! Invest for the long term and lock in those low interest rates!
Great point!
Normalize? The government spends money it doesn't have and the FED creates money out of thin air. We are exactly where policy put us. The Biden administration wants to spend at an unprecedented level and the FED cheers them on. That said, how likely will we see interest rates increase? Consider: Banks pay next to nothing and T-bills are not much better forcing investors into the market and real estate. Raising rates are highly unlikely, the game makers will do all they can to prevent de-fueling the economy built upon a house of cards (aka fiat currency).
@@1Skeptik1 Your comment aged well lmao, Feds raising rates 3 times in 2022, Feds will stop printing money and quantitative tightening will be here in 2022.
TH-cam starting to get have ads like cable tv.....a ton of ads
Solid video 🙏🏼 thanks for the effort you put into this
Ignore everything and invest in index. Period. You will be rich.
1970s rates were 20% still house prices were going up.
Right but the cost of a house was what the cost of a car is now....you can still get 20% car loans.
Yeah I blame those hippies lol
At that time you are taking the inflation out of the equation, also the housing prices, so its not a good comparative.
Great info! Thanks for sharing!!
This is the first time I'm meeting someone real, I just got my
profit today,thanks so much
Awesome thanks Dave!
Stock market could crash...likely considering overvaluation and junk bonds. That would tighten lending and cause those in good standing to be unable to get funding.
How one can start selling or make career in Real Estate with no money 🧐
Loans and education.
@@carlmarl6531 can we connect in anyway.
@@pkmauryag619 Read books on real estate, asset protection, finance, building zoning rules, rules and regulations, whatever you can get your hands on. Watching youtube videos about RE isn't enough.
@@carlmarl6531 thanks, I wish I could connect with some RE community.
Thank you for the useful information as always Dave! Really appreciate the data contents
My pleasure! Thanks for your support.
This correlates with the 10x rule.
18:53
Do policies of Bank of Canada or Trudeau government really matter , when
countries around the world are printing money and dumping it in Canada ,
creating affordability crisis here and exploiting and enjoying those
already living here.
The minute they raise interests rate the real estate and stock market bubble will pop.
Very possible but home affordability might be still the same since mortgage payments will counter that, unless one pays cash or a significant down payment… also high inflation for a prolong period will diminish any housing bubble
There is no housing bubble. Buildings and lands are overvalued right now, but it's definitely not a bubble.
@@carlmarl6531 hope u r right
@@carlmarl6531 that's what everyone says during a bubble
Today is the day :)
In the last 6 months we've seen a housing correction somewhere around 3% to 5% depending on who you ask. Keep in mind inflation was at six and a half percent thanks to our lovely commander and chief so technically we are seeing a correction closer to 6%. I expect the correction to continue until it maxes out somewhere around 18%.
Where are you seeing a correction? If you’re taking about prices declining in September that’s due to normal seasonality and would not normally be seen as a correction. Because housing data is seasonal it needs to be looked at on a year over year basis, and housing prices are still up considerably when measured that way. There’s been no correction according to any of the many data sources I check.
@@biggerpockets Also, I don't think a correction of 18% will happend any time sooner, and when it does...wouldn't appreciation have already caught up at least by half? So that would just mean a correction of 9% overall
I would like to be 10% of working class to buy cash yet aware Real Estate market meant for debt
Home prices are going up because of supply and demand issues. Not because of interest rates. Sure, low interest help more people qualify and make homes more affordable which can spur some demand, but it's really the lack of new homes (particularly entry level homes) and the increasing population of first time home buyers taking homes off the market that is causing real estate values to rise.
Also, the federal funds rate does not impact mortgage rates. The federal funds rate has an immediate impact on short-term borrowing rates like revolving debts and short-term borrowing instruments, but most mortgages are 30 year notes and are not impacted by the Fed hiking rates.
Mortgage rates are directly impacted by inflation because inflation erodes the purchasing power of a fixed rate of return (like a mortgage bond). You are correct that inflation will force the Fed to raise the federal funds rate to curb inflation, but hiking the federal funds rate is a reaction to rising inflation. Mortgage rates will rise as a result of inflation, not the Fed hiking rates.
If mortgage rates are a result of inflation then why mortgage rates are at an all time low or within 0.5 a percent (70-80 years) historically and inflation is on a 30 year high??
And don’t tell me there’s a lag cause it’s been 5% or above for 6 months and I believe it should continue to be above for at least 3-4 months. Which will be the longest stretch since the 80s in where mortgage rates were in the 8-9%
My question is where these people were before the covid If the all problem is supply and demand ?
Never been this early 😂
Welcome to the party!
As per my agent, the housing market is bullet proof, the whole country could fall but not the housing market.
I am first time home buyer and I wish prices to double next year so all investors cheer up, Merry Christmas everyone 😁
It is bullets proof until it gets shot
@@jessicabixler1658 great way to say that
He got his commission. If it's your primary always buy if it's a rental wait. You will get a better chance in the next few years. Investors and pushing the prices. They will be quick to sell flood the market with inventory. Pop
Isn't the actual issue that the last housing market happened because loans were given recklessly. That's not the case anymore, there will still be demand next year and who knows about supply so his agent is probably correct
Real estate agents will ALWAYS tell you that "now is the time to buy." You're asking a salesperson if you should buy what they're selling. What are they gonna say, no? lol
Can't wait for my regular payout ,she's an amazing expert trader