Are We About To See Something We Haven't Seen In Two Decades?
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- เผยแพร่เมื่อ 26 เม.ย. 2021
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Work with a trusted real estate agent to buy or sell your home in this crazy housing market: bit.ly/3sZJYtb
Person who sells their house: Whoohoo! Just sold my house for twice what I paid for it!
Same person who then goes to buy a house: Why do houses cost twice what they're worth?!
That has never made sense to me. People who sell their homes bc they are selling it for what they paid but then they still have to live somewhere LOL
Buy right and Sit tight........ The CA migration and inflation is about to smash people in the mouth
It’s part of why I’d not sell a house unless I absolutely had to move.
Exactly!
@@christianlourenco5652 Yes but atleast you're in the game. Its better than coming in without a house to sell first.
I drive log trucks in Washington State and the mills here kept working. I feel blessed that we didn’t lose work in these times.
Good. Dont forget that proper planning and investing in the right platform gives the wealth overtime.
@@dr.ervingalen1777 what platform suits better
still trying to get my feet
You should work with a pro. Tamara Diane Hagan will do the work for you. Search her name on the web.
found her website. thanks
Husband drives log trucks and we were grateful to keep work. Godbless your family
ONLY one more payment on my home, having a PARTY for the 4th
God bless y'all!
Proud of you
Congratulations!
Congrats 🎉🎈
Well done Robert. That’s freedom!
Most people actually don't buy a house based on the "price". They buy based on a "payment". Monthly payments are low due to low interest rates. That is many peoples' affordability gauge.
same with cars. People look at it the wrong way. i don't care about the payment i want to know the principle and interest rate
@@clayallen4354
I buy a car on the basis of how long I intend to keep it and then divide the cost by the number of years. So a $60000 car that I intend to keep for 10 years will cost me $6000 per year.
I also do the same when buying a product in that I cost it in my head and my unit is price per weight such as an ounce.
I find it incredible that most people do not do any of this.
@@bighands69 I do the same thing but adjust for salvage value. Cars may depreciate but they almost never go lower than a few thousand after 5-6 years
Just like subscriptions.. especially monthly ones
@get rich education Agreed, people are idiots.
My average grocery bill in 2019 was $180...now it’s $270. Inflation is killing us already. My wage is stagnant though.
Just bought a mozzarella and tomatoe panini at Starbucks... $6.16
You probably have gained weight
What is costing more? I haven't noticed grocery price changes like that at all.
@@rudysmustache fresh fruit/vegetables, meats, dairy, spices
@@rudysmustache I've noticed little changes that add up. The price of bread has increased an average of 30 cents a loaf. Milk too, eggs, etc. If you pay close attention, you will see most fresh items have increased their costs by 15-75 cents. Here soon you won't have to pay close attention because everything will go up, even center aisle goods.
We paid off our house!!!!!!!!
🤸💃🏽🎉🎊🎉🎊
So jealous. 😊
Congrats!
Congratulations!
That's really great, congrats! 🎉🏡👍
Congratulations!
Also banks and landlords can’t kick out homeowners or tenants, so many are living in homes for free, causing even less supply of homes for sale. My friend just got an 18 month forbearance on his payments so is using his mortgage payment to fix the house up...it all adds up to insane rising prices.
Yep. Good insight.
He didn't mention the eviction and mortgage moratorium, which is also tying up supply.
We bought our home in March 2020 at the beginning of the pandemic. Best decision we've made. It was a scary time to buy because there were so many unknowns. But we had hardly no competition. We bought our home as a short sale, 40% discount, 20% down, closed in 28 days. No hesitation we jumped in. We were ready ❤️
Best time to buy was 2009
Good for you
Same bought mine in april 2020 i thought i was a lil crazy so much unknowns back then glad i didnt wait
We bought our home in Missoula, Montana in July...at the time I did not think it was that great of a deal however our brother in law is a realtor and did a great job for us...now my house would probably sell for almost 100k more. People are just going nuts.
Me too. Bought a fixer upper.
A key point was not mentioned: Smart money (companies and rich people, both US and foreign) are buying up real estate, paying cash above asking price. They want to store their money in something that will hold its value as they expect inflation and further crisis.
I heard about this. It definitely factors into what is going on.
This is what Im saying. People keep saying "OH MY GAWD REAL ESTATE CRASH GONNA HAPPEN SOON OMG!" But with interest rayes staying low for the next couple years, combined with low supply high demand, combined with money print... I dont see housing prices coming down in the near future. Its simple logic while all these doomsdayers claiming we're in a bubble are thinking with emotion. Dave Ramsey has already made a video about this.
@@mikevarga6387 Just the new normal. People just don't want to accept it.
Hedge funds will own everything you will own nothing, and be happy
@@thebra that’s 100% true....I bet going back these types of conversations/concerns about real estate prices, state population inflow/outflow has LIKELY happened all through the 1900’s-present. It’s change with some numbers attached, nothing truly odd at all.
Sold all my rentals at outrageous prices, paid off my primary, now I sit on the sidelines and wait.
Wise man. Hedge a bit though in case the currency fails.
Didn’t you get killed with capital gains taxes?
Congrats live happy n safe
I did exactly the same thing!
Yes, there were definitely capital gains to be paid for 2020, and 2021 as well.
Actually the lumber companies are price gouging because they saw how much these houses were going for. They created a false shortage in order to increase the price of lumber.
More price gauging coming this summer for gas. They say there are no truck drivers to deliver which is going to cause shortages. What happened to the truck drivers that delivered it before and if that is the case why are they not looking for other drivers .
No.
Thats what Ive heard from people who work in the industry.
Yep, there is actually plenty of lumber supply - almost an over-supply - if you talk to anyone who works at a lumber mill. It's not the growers, loggers, transporters, or retailers that raised prices - it's entirely the major lumber mills such as Weyerhaeuser which raised their prices 5-6x without having any of their operating costs increase - all profit margin for them. Price gouging. Check the public balance sheets - it's all there.
I was in shock at the cost of lumber at home depot
It gets bad when rice and beans goes to double the price
Taco cost $2 each now. Used to be $1.50. Imagine buying 10 for $20. Seems a bit pricey. I now eat rice and beans.
@@LittleMopeHead tacos in Miami are 4$ to 5$ a piece. I gave up tacos.
@@zolozek3327 Plus those tortillas are like 130 - 150 cals - eating 10 of them along with all the fixings it like a 2K carb bomb.
@@LittleMopeHead I quit going to Taco Bell when my cheap tacos and bean burritos got $$$.
🤣
Rent keeps falling here in NYC!! Love to see it every time i see a uhaul, the bottom is finally dropping out of this place.
Homeowners are excited when their house goes up in value, until they get their property tax bill.
Depends where you live. Many counties instituted caps after 2008 to limit sharp increases.
not in Florida, Texas, Vegas and [insert state with little to no property tax]
@@jewlstagara4562 this is false. Texas has no income tax but higher property tax
Always apply for homestead tax credits. Most lenders wont tell buyers about this
yup all houses should have a cap crazy we even try to make money 0ff people who just want a house to live in .smh
We've been looking at houses for a couple of years and it's actually insane. Once offered over asking price and our real-estate agent was like are you sure, then we got out bid by a lot. And that was the day after it was posted!
We sold our CA house in July of 2020 & moved to NC! Loving our new life here and many aspects of this gorgeous state. We had four all over ask offers but highest offer was an investor and we went w/ a family. Lost about 3K going this route, but happy to pass the home onto a family over a big biz. Also thankful to bring our small business & finances to a new state that isn’t CA! 👍🏼
Thank you for selling to an actual family.
you are exactly the type of person that is causing the real estate bubble
Buyers over paying for some of these houses right now will regret overpaying in the future.
Yep...when the bubble pops it will take years to recoup the 50 percent over payment made today. Just like in 2008
I agree. It’s going to be a mess.
@@DatKat in 2008 prices didnt go down 50% though
@@franco521 point is if you overpay you still have to wait the reset out to get back to where you paid in
Won’t mean anything when interest rates rise. It will all even out
When you remove emotion from your decision making, you make far better decisions. Dave is always spot on
I find your comment amusing especially since Dave acknowledged how much of an idiot he was at saying “you will never see single digit interest rates.”
I agree… I purchased my home July of 2020 and my seller wanted me to pay over the appraisal value. I told them good luck and terminated my contract with them. 24 hours later the seller agreed to sell at the appraisal value. Never get emotional and be able to walk away.
Life advice, not only financial
Sadly, young buyers are being shoved further away from their dream of owning a home and be deeper in debt when they do buy due to higher prices.
Time to think of something new.
@@kays3599 I hope you don’t mean something like communism?
@@kays3599 And I know that wouldn’t be considered “new” but my young generation never properly learned history so...
@@SimoNemo7 No Harold. Not communism.
They will own nothing and be happy.
My emergency fund is now 2000
Good job. Nailed down the first step on your journey. Pet yourself on the back. And move on. Getting rid of the debt by snowball. And create a buffer off multiple months of expenses. You can do it. Step by step.
Bless you my child
Great job!
Not enough....get it to 10 grand.....THEN you can sleep at night....
Whoop dee doo da day. That will get u a gallon of milk a year from now.
Built my house 2017 for 180k, just appraised for 280k.
Good for you
Invest in real estate or buy an old house remodel it and rent it out
Nice
@Maverick Services just curious...where do you live?
@@mcali-reviews5585 There aren't any deals anymore. Prices are so jacked up you can't get a decent ROI.
Bought our house in miami for $330k in the end of 2019, currently similar houses in my area are selling no less than $420k 🤯
I'm no genius. But trying to predict anything right now seems to be mostly a greater fools game.
You are correct.
Yes..but it is obvious that there is something very wrong here...And it is a matter of time before things correct..
@@nickgreek6449 I can only hope, I’ve been forced to move back with my parents because I couldn’t afford my rent anymore (they nearly doubled it) right when i was looking for a home which is also now impossible.
Fr tho litterally nothing right now makes sense so imma just save my money
Bingo
The everything bubble, courtesy of your friends at the Federal Reserve and their easy money policies.
Used cars especially. A 2014 Silverado is $25k with 100k miles but a brand new one is $26k out the door.
Our country is full if complete idiots
I think that is more commonly known as inflation.
@@MrPland1992 probly a shortage of new ones. Factories shut down for the rona plus semiconductor shortage
Well said
@@MrPland1992 shiterado**
I think the moratorium on foreclosures and evictions is contributing to the lack of inventory too.
Not by a lot and a lot of the stuff is in Forbearance, so when it ends, they are just going to pay more per month. They are not going to evict owners.
@@bindingcurve Possibly even less as in required mediation the lender adjusted the interest rates favorably to the homeowner and extended years. Their adjusted payments will still be less than renting a less desireable home, leading to incentive to stay where they are and make the payments.
@@bindingcurve They wont be paying more per month, it just tacked on the unpaid months to the end of the mortgage. It was basically interest free money.
@@bindingcurve ok so if you can’t afford your home now and have asked for forbearance what makes you think that when the forbearance is lifted people are going to be able to afford a higher payment? They aren’t even able to afford their current payment. 🤔
When you evict 60% of the renter population, do you really think they are going to just disappear? They will have to rent something.
My daughter works in downtown Atlanta as a leasing agent. She is very busy and told me many people are flowing in from NY and CA.
Sad..here come the locusts
Hopefully this turns Georgia even more blue.
@@Shivpi3141592654 Blue translates into higher taxes and a lower standard of living. I lived in California and experienced the "blue" delusion.
@@Shivpi3141592654 smh can't cure stupid
My neighbor got $65k more than asking price. I've been getting multiple calls weekly from real estate agents to sell my house! It is mad.
yea i dont even know how most agents are even staying in business with not enough houses to sell.. But i guess the frequent calls are a sign of desperation to find houses to sell
Do you want to sell your house? Would you like me to handle that sell for you? 🤔🤷♀️😁💪🤜🙏😄😁😉😉😄😊🙃😆😁😃🙂😀
Wow
Im selling now and buying at a decent price here in Texas. Austin is crazy right now though
Big fan of your show Dave! I’m 18 yrs old and saved 25k thank you 🙏🏼
NICE
Good job! Smart!
Very good job
How did you do it? And good job!
Keep grinding. No stupid spending and work like a dog reasonably. I’m 26 with 145k.
It's hard to not feel super discouraged as a young couple with young children trying to buy our first home. Not even trying to find anything fancy, just a modest home to fit our family. Rent and house prices are going up faster than we can save for a 20% down payment.
People can raise families in apartments and trailers
Same but I am just a single male. I find it funny how many people I know by me that are mid 30s that sold their house (first house) and make about 70k+ from it, and are back living with their parents. I know a couple that is 37 that did this and made 120k from selling their house, have 500k saved up (Crazy), and are living at the inlaws until they can buy their "dream home."
What is going on in this world. Nothing makes sense anymore.
@@ryanturner8577 People are morons is what is going on. Live your life, stay in your lane, and let the idiots run themselves into the ground.
@@ryanturner8577 lucky for them. Lots of people don’t have parents who would allow that or parents who even have their own house.
@Michael Ellingsworth how? You can buy a nice double wide for cheap
I remember the Carter years. It was brutal.
I also think one thing that is a major factor is the halt on foreclosures and evictions. I would like to hear Dave’s thoughts on that component. Love the show!
I’m a real estate appraiser in nevada. Corporations are buying residential investment properties. This is a bubble. It’s killing the middle class.
It’s not a bubble. It’s the retirement system. That money from your 401k has to go somewhere and it’s being reinvested into the house next door.
That's what is happening here in the Tampa Bay area... Corporations buying up.
I live in the midwest and most of the low end houses were going to "flppers". All of the houses now appear to be going to live in buyers.
Here in Florida is so crazy, houses are selling overprice
its all over the country
Specially in Miami. High crime. and high prices on everything welcome to paradise they say.
@@zolozek3327 gotta go to fort lauderdale ! Or even Hollywood is nice
@@zolozek3327 The one thing i have been surprised by is the fact that hotel prices have barely gone up compared to real estate. I visit Tampa and Miama atleast once a year. (i am from europe). the hotel costs have not increased as significantly as housing costs. im still confused...
Met a SW pilot the other day. He and his wife are trying to buy in Florida and are getting outbid with CASH on every house.
In the early 80s, I was in real estate.
We had to call the lenders twice a day to check interest rates.
Hello Beautiful lady who are you doing over there so tell me where originally are you from and where do you live now if you don't mind???
Good we need more of that. Interest rates need to go up.
@@bradwhitt6768 Why? So banks can get richer?
@@planetruther To avoid a great depression?
@@bradwhitt6768 The great depression was a planned event. We all learned earlier this year that the financial system is rigged.
I'm staying in California to preach the Gospel. The darker it gets, the more the light shines.
God bless you for doing what so many comfortable Christians are too afraid to do.
Even firefighters get burned sometimes. Good luck and GodSpeed!
@@ASLunar It's not that bad. It's still the U.S. There are a lot worse places on earth today. But thanks for the encouragement. :)
You will be blessed.
@Grayson Collins haha I was born in California. Less than 20 miles from where I am right now.
3:55. Check your facts Dave. It wasn’t Reagan, it was Paul Volcker. The head of the federal reserve at the time. He raised interest rates to 20% which no politician wanted at the time
Thank you!
that would kill wall st now, we can't do Volcker again
Regret comes in 2-3 years when the prices drop and interest rates increase slightly. Then, a bunch of people will be stuck under water in overpriced housing.
And yet interest rates are likely to stay steady if not drop further. If there is one thing there is an abundance of it's investor cash looking for a home. Quite literally.
If that happens the only people who will hurt are those who want to move in a few years. I think investors are the ones who are going to be upset, not your average person looking for a home for their family to live in.
I still won’t sell my house at a loss. I’d rather hold for 10 years lol.
I’m a small contractor. I’m building a house now. Before I got the foundation done I had a offer for it.
Where at ?
I’ll double it!
I'll triple it !!!!
4x!!!
@@stillholding4975 Outside of Raleigh North Carolina
I am a truck driver and I haul lumber. I haven’t stopped at all throughout the pandemic! I don’t know what you mean about lumber mills closed.
I seriously think it's one huge fraud. They are literally propping up this inflated house demand by printing money, Holding off foreclosures, evictions, and false lumber shortage bs.
Would be nice if Dave cited his source about the lumber mills closing. Based on these comments from those in the industry, he doesn’t know what he’s talking about but speaks it like it’s the gospel truth.
Agreed to a new construction home in December 2020, the home has already went up 20k. Crazy these days, just got lucky!
I live outside of New York and my real estate agent said New Yorkers are bringing cash, outbidding all of the locals, and now locals can't get a house in my previously not so popular city. It's concerning to say the least.
That’s happening down here all over my state too
Save and then when New York starts to rebuild, buy with your cash, and then when everyone runs back to the city life, reap the benefits.
The story of America.....all over the country
Im a general contractor and am loving this madness. Im making my fortune off of panicky millionaires.
Remote work has surged, people are moving away from cities. People cant travel and are tired in tiny condos moving to bigger garden housing
Twice the home for a quarter of the price
People are not moving away from cities because of remote employment. That is a myth that is being pushed by the media.
People are moving away from specific cities because the standard of living in many of them have dropped due to crime and degeneracy.
Those that can afford to move will do so and leave behind those that cannot. I am a farm owner and have had constant offers for my land from city folk that are wealthy and want out of the messy cities.
Yes! Agreed.
I bought a house in 2001 for $205k. Sold it in 2006 for $420. No cap. Then in 2008 that house dropped to 300k. Lol
great timing but whats it worth now like 800k? lol
What is it now?
Yeah but 2008 was essentially the end of the world.
Timing matters!
Rachel asked what all of us are thinking. Smart answers by Dave.
Blessed to be apart of this company. Thank you Dave and Rachel for the opportunity to serve you!
-the catering team
As a licensed loan officer researching the decades before me.. I've seen nothing like this ever houses are going way over asking you goto an open house and it's like someone opened a Costco... He's right i've seen a lot of places where homes are going 10, 50, in some spots 200k over asking or more it's pure insanity. My bigger worry right now is interest rates rising and then people being unable to sell their home back because they're so historically low there's nowhere for rates to go but up then you're underwater.
Bought a fixed upper in 2013 that had been a rental for a long time. Lived frugally, fixed it up nice, and just paid it off. My neighbor thought I was dumb for paying $160k for it. It's worth twice that now. With the price of everything going up, I feel fortunate, I can live on half of one paycheck. Would like to sell and cash out, but there is nothing to buy.
Keep that rental as it will continue to appreciate and generate passive income. If time comes, refinance it at low rate and buy another income generating assets.
I’m a real estate agent in South Africa and we experiencing exactly the same.
Definitely appears to be a global phenomenon
wow i thought it may only be in US, well that is good for you then!
@@richman117 NZ has been in a housing bubble for years. Check it out and see just how insane it can get. I am from the US and living in NZ. Glad I own a nice country home back in the US. Fuel here in NZ is $6 USD/gallon, food is way more expensive and small/poorly built homes go for ABSURD amounts. People waiting on the housing to come down have been waiting for YEARS and it just keeps getting worse here.
Even in Dubai , the rent is going down and price of houses shooting up . I can’t understand there are more than 5000 villas for sales and over 10000 apartments for sale and still the price is shooting up .
Australia is the same. Unfortunately there's a focus on Sydney/ NSW - there's still affordable houses in other cities/ areas.
I was carrying a 18ft 2×6 at work today and joked, "can I retire now?"
There is very poor inventory and manufacturing has gone to sleep because there was a shut down and they could not risk over producing.
In my own business I bought a massive level of inventory before the crisis began as I knew was coming. And the value of my stock of wood has massively shot up.
Was it a straight one at 18' ?
I'm outside of ATL. I'm begining to see a few forclosures. Good deals compared to today's prices. I think the 1st Dominos are falling. Doesn't mean people aren't still over paying. While we were getting a great deal, we had friends paying top dollar back in 07-08.
Care about who you sell your house to. Couples and families are different than investment groups swooping in
Yup we had to write a letter to the seller to get ours. We were out bid but ended up getting our place still paid 10k over list
Nah sell to the highest offer
Todd, you are very generous with other peoples money.
If I had a house to sell it would go to the highest bidder. I don't know those families or couples pasts or presents. Call it unethical all you want I don't care.
Money talks
Houses are 2021s toilet paper
Cars are too
@@4dscdriver no one is buying cars right now
We are paying off our house this weekend .I called in to the show 18 years ago and we was debt free except for our house .With a couple set backs .New hip and new knee, being self employed and all .Our house will be paid off Saturday May 1st .Would love to tell you our full story .Took your class at a small church here in Louisville KY.Dave said this city was like a second home and what church did I take his class .We said Southeast CHRISTian and he said six flags over Jesus haha
CONGRATULATIONS 👏👏🥳
Wow! Praise the Lord! You did it.👍❤🕊
@@antoniapaulinadelgado1680 thank you.It’s a blessing for sure
These prices here in California are leaving me in the dust!!! Prices are so high! And I’m not gonna buy a house just because it appears to be the thing to do.
Fine, but smart money knows RE absorbs inflation as well as any asset. Keep your money in a savings account and watch it devalue 👍
@@jfkst1 yeah your totally right....the struggle is real my friend!! I am on one income and really can not afford RE on my own, so I think it would wind up being a curse if I did it.
Move...I had to leave SD and just rent out my condo. Missed my opportunity after '08
Never buy because of FOMO.
I remember the inflation of the 70s/80s. Scary times! We got through! Policies changed and we rose out of it! Political shenanigans.
But in the 70s, you could buy a house for $22K - didn't need a mortgage.
@@marty906
Come on Marty. You have to be smarter than that. Minimum wage back then was $3. People still needed a mortgage 🤦♂️
@@topcomment3816 My Grandpa worked for GM building trucks and Corvettes on an assembly line. in the late 80's he was making 20 an hour plus full Union benefits. People back then didn't make minimum wage unless they were doing a job that was only worth minimum wage. Seems like these days it's hard for people to make above minimum wage, and if you do it's not by much unless you have a 'good' job, but blue collar or labor jobs aren't paying very much.
By the way at that time I was working as a machine designer for about $15 per hour designing machines to make your grandfather more productive but he got the pay benefit. Was not long and the auto assembly jobs went elsewhere but I still had my job.
I've had to use every single spare part in the garage to get some people's power up. The lack of parts is getting scary.
@Johnny Five Everyone's building houses right now. You can't find lumber for less than 4x what is was a year ago!
@Johnny Five to quote Elon Musk "if you don't make stuff there won't be stuff." A lot of electrical manufacturers have been operating at diminished capacity so finding breakers is a nightmare.
My husband works for a roofing distribution center. OSB lumber was eight dollars and now it is forty five!!!
@@randomweirdo25 lab is 60-80 where I live in Canada....
@@randomweirdo25 need to take off them lumber tariffs!
I'm in Florida. My husband's co-worker newlywed, had his eye on a house. A guy from NY came to live here, and had a walk thru the house and offered $40K more for the house. My husband co-worker was heartbroken. He decided to not buy for now because the prices are going up. The same thing we us, we decided to wait to buy as well.
THE VERY SAME SENARIO for us just one week ago, also from New York, only this guy paid 50k more IN CASH! we have also decided we are done until the BS comes to a halt.
There's going to be serious buyer's remorse
We offered 60k over asking for our home in July 2020 and got it. Now it’s estimated to be worth +$275k more in value. We couldn’t afford it now. Not even a year later.
Where?
Please talk about how hedge funds are buying up real estate, esp. houses!!
In my state, the governor already has First Right of Refusal, at least on commercial properties, like the dying malls.
Gonna have to sell them once AMC hits the moon 😂
Same here in Denver. It’s nuts! Thanks for the insight
Ya know, i keep hearing about this lumber shortage.......I've yet to see any shortage. Lumber yards are full in my area but the prices are still astronomical.
There’s a shortage. I work in it.
Rent is skyrocketing that is why I bought. My payments are less than rent.
That’s pretty much how it’s always been
If you were renting a house, not when you are in an apartment.
That’s what I am trying do. In So Cal the rent for an old apartment is insane
@@socialworkersanonymous everybody is trying that now, that is why prices are going up now. I will try to find more income and hope prices calm down by then.
the problem is printing money，then poor people will never afford a house
Because printing money causes inflation. See my comment about Volcker and how he stopped inflation in the 1970's. This is accepted fact among macroeconomists.
they dont need a house..they need an apartment thats affordable...no other choice
Welcome to the inflation tax.
They've been printing money for decades. That's not the reason is all of the sudden surging
@@rachelgee7894 But the printing presses have been in overdrive lately.
You can't order a kitchen from Ikea right now. Its all out of stock with no known delivery date.
Yep! IKEA manufactures are from Europe and their manufacturing has been shut down for months now! No manufacturing, no deliveries to the USA!
Ikea is garbage anyway
Dave, that reminds me of out rages prices that everyone is asking for used cars I love buying a three or four-year-old used car with low mileage cash but it seems like Even the grandmother down the road with a good used car is asking way too much for her Toyota or whatever she drives is the same thing happening with Cars as lumber
I frame custom homes and I can tell you the very rich have the money to spend 3-5x on lumber and as long as they do the prices won’t change
I remember buying a house in 1987 and I got a 9.75% mortgage rate and I was in heaven!
Home about 57k?
Lol I heard those numbers were real when I was getting my license. Crazy how much that turns out to be at the end of the term
@Johnny Five I had to pay a couple of 'points' even then to get it that low....essentially 'buying' a favorable mortage rate.
Double digit interest rates in 1980s. True.
Woo hoo, cooking with gas!
Thank you for giving people the honest truth and not encouraging them to rush to buy because it “won’t stop.”
It’s called money printing and low interest rates.
If they can print money, they can shred money too
Money printing hasn’t shown to have an effect on inflation. That doesn’t mean it won’t, but that it hasn’t shown it.
@@HighrollerRob You don't know the definition of inflation then.
@@dedalliance1 You don't know the definition of inflation then.
Beautiful dynamic between father and daughter, plus some really good content. Words of wisdom abound!
Carter 🤦🏼♀️ bought house 16% and if you wanted to lock in your rate you had to pay points if the mortgage company would allow it.
I'm 27 and finally ready to buy my 1st home. Guess I'm waiting for a correction. People buying houses without inspection is a scary thought for me
You won't be allowed to buy a home unless you pay cash.
Same here , we are 29 Nd was ready to buy our first home . Everyone waving inspection and paying 30k or more on trash houses
Low rates, perverse monetary policy, high demand, low supply, etc
And a ton of "money" on the sidelines
Why low rates, why low supply? There's a lot there.
Love your channel Marko!
@@juanjones6463 people want to be in a place they like and they will pay high plus i am a constrion workere we are a dying dreed here i joined because we need these people i am 18 i joined we are loseing people like crazy and new house will only get more expsinve now its a sad thing but good pay
@@peterfus6162 The S&Lfiasco, dotcom bust, 2008, and now millions of people underwater with their house-atm, it will collapse again.
Wait till mortgage forbearance and eviction moratoriums are lifted. This will NOT end well.
don't they get lifted at end of month?
@@zafizzle They're supposed to, but several states have a case pending before the supreme court to extend the deadline- we shall see.
What stopped inflation in the 80’s was Paul Volcker raising interest rates to 20 percent.
"they're all leaving; and they ain't coming back"
Zillow shows my home go up in value 22k in one Month. Crazy
Mine went up $14k as well. One month
@@kojack635 Ours too. It's crazy. Am I being an idiot for thinking about selling?
@@LG123ABC no but don't do it.
14k is chump change when you look at the big picture.
@@Bigelite094 Exactly this.
We bought in May 2020. The house has already gone up +90k!!
So what? It’s nice to see the paper equity but unless you’re selling it’s just on the balance sheet and values go up and down. If you sell, you have to buy, so unless you are downsizing or moving to an area with lower values, it’s just a number with no real benefit, aside from a psychological one.
Wow. 😮
@@bondpit8750 true. Your home is just a place to live, it is not a bank account.
@@bondpit8750 actually it opens us up to getting the PMI off four years early and option for lower refi rates. My mortgage is dropping by $650/mo because of this
@@bondpit8750 our plan is to pay off in 15 then downsize. Retirement plan!
My wife and I bought our first (and forever) home back in August 2020. Before I even got the court documents finalizing the sale - the same lender and agent who sold me the house were sending me mail asking if I wanted to refinance or sell!
You wouldn’t believe my parents house. They get calls almost daily and flyers on their door for selling their home. They even had realtors stop by house to house asking. They got so sick and tired of it that they had no trespassing signs up for a while and blocked every single caller that was real estate related. neighbors got sick of it to. They lived in that house since the 80’s.
Did you have to overpay
@@dteh4501 we paid the asking price which was certainly higher than a year before but no where near as high as it would be today. It was a good deal and more importantly the right deal.
@@mikeb.2925 cool, in this city every nook is seeing large increases, I see people moving in that they had said they thought the area was a bit rough around the edges...people are doing well if they are prepared
Same is happening with rent too. My lease renewal was increased by 10.5% instead of the standard 3-5% they usually do...
Central ohio is crazy too, I'd consider selling my house but where'd we go if all of the houses are all in short supply???
NC?
Love the Carolina's ..dont live there Im just outside of Boston and cannot take the cost of living in MA.
Same thing happening up in Canada, Buying a house seems to be ''in''
Except northern Ontario
Its not the same in Canada... its way worse lol, the average detached home in Toronto is over $1.5M
It’s terrible in Montreal right now.
It's terrible here too (Manitoba). It's common for them to sell 30-50% over list with 50-100 offers. They're purposely underpricing to encourage bid ups. But I know lots of people moving, and a number of them building so they don't have to deal with bidding.
1day listings, everyone's a millionaire
Always informative dave . Thanks
Thanks Dave for your words of wisdom and experience.
At least a decade ago, it was cheaper to rent a U-Haul from Nevada to bring into California to leave the state than it was to get one from within California. Can only imagine how bad it is now.
true, when i moved from ca to az i went to rent a truck in az and gpt my stuff in ca and returned the truck to az where i rented it. saved $500
Also, people are afraid that the prices will keep going up and price them out of ever owning a home so they are trying to buy NOW. I'm already priced out of my area because of this. Yeehaw. :( From what I understand the feds are keeping the interest rates super low for at least the next year. Thanks, feds. Cries
And you'd be crying too if capital was too expensive for businesses to keep growing.
I feel like the more direct answer to the lady’s question at minute marker 3:50( how did they contain it in 1980?) would have been “by raising interest rates”. That is the fix, the painful yet essential fix for this madness.
Great analysis! Thank you for the update.
Not to mention nobody is getting foreclosed!
Surprised no one is talking about this, once the moratorium ends on 6/31.
@Daniel R believe it was extended from March 31 to June 30*
Exactly. Wait till it settles we will see a jump... I don’t think like 2008 bit def a big jump on foreclosures
We bought our first home in 1985 at an interest rate of approx. 8.25%. In the early 80’s rates were around 10% we thought we had gotten a good deal.🤣
I remember my parents paying 18% interest on their house loan back in the 80’s. Even with both parents working it was tough times! (& they almost divorced with all the stressors!) They eventually sold the same house 30years later and semi retired to the coast. Paid off thier new house in full with change left over. That experience i witnessed is driving me to pay off my house ASAP!
We bought in CA in Sept 1986 10%. We were thrilled down from 13%
Yeah but the cost of the home was substantially lower as well
Houses here in southern Ontario are selling for 100-200k plus over asking. Absolutely insane. Like little tiny houses are selling for almost 500k
Ugh..ohhh Canada
Our deck is literally falling off our house. I refuse to pay these ridiculous prices for lumber. We’re going to pay it off then fix it up with cash. Things are nuts right now.
I wish someone would bring up the fact of WHO is actually buying the houses! It’s American Homes and companies like them, that buy so they can overcharge rent and people/families can’t buy a home :(
Don't forget AirBNB leeches...
Plus non Americans buying a lot of land
blackrock is paying 20-50% over asking for houses
@@zafizzle That is nuts, They are dishing this money out bc money about to be worthless.
@@truthbetold2146 Exactly! Get it while the getting's good!
So what do we do who need to buy a house because of an out of state job change? 😭😭 Can't find anything in our price range and what we do find it's gone in seconds. And we cannot afford to rent. This feels impossible.
My neighbor just sold his house for $67k more than asking price.
This is what's going on in NJ..so hard to find a house. Then when you do it's so much competition driving the prices up & the prices are already listed very high!