Real Estate Is About To Drop - Again
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- เผยแพร่เมื่อ 4 ต.ค. 2024
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It’s no surprise that, throughout the last 30 years or so…Real estate prices have continued to climb as interest rates have continued to decline…and now, we’re at the cheapest rates we’ve EVER seen, while housing is ALSO the most expensive it’s even been. The concern, however, is how sustainable IS this - what’s going to happen when interest rates rise back up - and is there the worry of more inventory flooding the markets once mortgages in forbearance are able to be foreclosed?
It’s difficult to say FOR SURE since there are SO many different factors at play like the local economy for each market, how much inventory there is, and its desirability…but, we’ll talk about AVERAGES here, overall…and this is what was found:
Despite what you would think, one study concluded that - historically - rising interest rates actually made NO DIFFERENCE, OVERALL, to the price of housing - in fact, since the 1980’s, housing continued to rise even though mortgages rates went UP.
i.imgur.com/IW...
Another resource confirmed, this as well….analysis from Core Logic, Freddie Mac, and the Bureau of Labor Statistics found that housing prices did INDEED go up, even though interest rates ALSO went up.
edit.urban.org...
www.urban.org/...
The reason for this is rather simple, though: One, interest rates are generally only increased in a good economy, where people are spending money, with consistent wage growth….which, typically means people are buying homes.
And, TWO - interest rates are also increased to combat inflation, which as any real estate investor will know…inflation is generally GOOD for real estate, because that also causes home price to rise up, in tandem.
The thing is, real estate is based on so many small factors, like location, inventory, the local job market, the health of the economy...and obviously, some markets will end up doing much BETTER than others.
But then there’s also the concern of FORECLOSURES…as it is right now, home owners have the option of opting in to mortgage forbearance, which allows them to temporarily “pause” their housing payments and then extend those missed payments to the end of the loan. During this time, forecloses are temporarily put on hold - and, beginning next year, we should begin to see the outcome of how many people can resume their payments.
The GOOD news is that, month after month, it actually looks like the amount of mortgages in forbearance has been steadily going down - and the latest finding was that, last month, loans in forbearance decreased from 7.2% to now 6.8%.
www.mortgagenew...
So, in this case - EVEN THOUGH there are mortgages in forbearance…it’s unlikely that ALL of those are going to completely stop paying once the forbearance period is up, it’s unlikely that EVERYONE is going to be selling at the same time, and it’s unlikely that they’re going to crash the market.
All YOU need to be made aware of is that you ONLY buy a home that you can afford to live in LONG TERM, without the intention of selling. Generally, I don’t recommend buying real estate without the intention of holding it at LEAST 10-20 years because ANYTHING can happen in the short term - but, as long as you buy something that you MAKE SURE you can afford, with a healthy emergency fund to cover you during a time of potential unemployment - then you should be okay.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness@gmail.com
*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.
You’ve been growing like crazy man last time I seen your sub count you were at 250k congrats you deserve it !!
Appreciate it!! :) it's been growing like crazy lately!
All thanks to The Almighty algorithm for accepting Graham as an obedient disciple who uploads everyday on the most relevant topics of money markets and implements the order of *Like button* - the Almighty’s loved offering 😉
Congratulations!
I know 🧚🏼 legit so proud of him!! I’ve been a subscriber for about 2ish years now ☀️✨🏝 his stage presentation and editing is tops 🤗
Alexa Kiss He’s great 👍🏻
4:25 - take the $300K house and instantly refinance. Who would stay in that loan? (I know this defies your unstated premise, but there's a point.) I'd rather buy in a market experiencing higher interest because that will depress prices (the one thing you can't alter later by refinancing). As interest rates drop, home value rise AND you also get to refinance your initially higher interest loans to further improve your situation. Now is the worst time to buy - best time to sell. High prices driven both by availability and interest rates.
My wife and I bought during the hype of covid(June)in Santa Clara county.. My wife and I are county workers so we went from the end of the line from your typical bidding war to the front line bc we had job security. We had no competition while placing our bid for the house. We were the only offer which I could not believe! It’s all about timing!
There's always a loose, loose situation in real estate. When houses are down, interest rates are high. When houses are high, interest rates are low.
Which would you recommend for a first time home buyer?
I love that you speak so clearly that even when I speed up your videos to 2x, I can still understand every word you’re saying. I appreciate it so much lol thank u!
I do the saaaaame :D
Hi Graham, I’m a 15 year old teen from
Germany and I’ve been smashing the like buttons and have been a subscriber for 2 years now. I love your content and awesome advice on finances, real estate, life and more.
Sending best regards from Germany😉
Stay safe guys
Ah thanks so much! That means a lot to hear!
Graham Stephan to read not to hear
At 15 with this baseline knowledge you’re going to be crushing it soon!
Kevin O'Leary warned you about keeping your net worth in real estate ... Yotta diversify into other asset classes! 😂
YOTTA START A VC FIRM
Haha, clever ;)
Even if the market drops, I'm almost 100% positive Graham would still be positive equity on his properties when comparing to his purchase price, and DEFINITELY when comparing to his remaining mortgage amounts.
@@GrahamStephan I'm so glad you finally became an Angel Investor - I advise/invest in several tech startups and it's a great way to make a positive impact on the world! Hope to see you soon at a Silicon Valley event haha!
@@whatta7793 If the market crashes, he may be over leveraged on debt and would have to cover using his cash rather than the rental income (assuming he could lose tenants).
Can we just appreciate that Graham never “under-does” the thumbnails.
I always give it a 10/10 effort!
My house value has gone up 50% in 4 years. I am cashing out
Home equity loan and buy a duplex.
@@koolier6338 , hmm... then you'll have TWO asset fluctuations compounding during the next cycle.
Wife and I were looking at new homes and buying a home at 470k would be cheaper than staying in our 300k condo at our current interest rate. It's unreal.
Why not refinance?
@@HenryPaulThe3rd good question
Is it taking in consideration taxes and house insurance?
Roe Jogan Roe????
Joe Rogan Ah, my old nemesis. Knew I’d run into you in the comments eventually
Millennials licking their lips, hoping to get in on some cheap real estate if it does crash...
Housing is nuts in my area right now so I'm eagerly paying attention to this situation.
Lets see what happens, it's been so competitive lately - eventually, all the would-be buyers will have bought, and more inventory should come on the market to ease things up
Graham Stephan makes sense! Appreciate your insight.
😂 Gen Z already ahead of the game
MLM -Millennial Lives Matter too
I went viral in 2016 for saying this in the news lol... I gave it waiting for it... I found a better way...
First I have to shave.. now this wtf
No!!! The beard looks nice on you!
I won't stop commenting until you shave your eyebrows next
.... here I am thinking people will forget 🤦🏻♂️
eyebrows are next
Ungag me on your channel
Kevin.. don’t get mad cause I call out your liberal poo
I made sure to like the video before hearing anything as I assumed it would be mandatory.
hah thanks :)
Read your comment and did the same.😅
So annoying.
I do the same every video💯💯
hahaha! How many ways can a man ask you to smash that button...
Is there some kind of crypto MLM/pyramid scheme going on? What’s up with all these bot-like “invest in crypto” comments?
The prey on people who don't understand the tech to charge them a bunch of fees. Maybe even scam them into thinking they lost money due to bad luck as people who invest in crypto without understanding are just gambling anyways. At least that's how I suspect these scammers are getting the money
While I think crypto is legit (the legit projects and big coins like BTC & ETH)
It's totally new so new people can't distinguish between real & fake if they never really went to read & look into it
So I don't know which comments exactly you mean but I often see the fake comments that start normal but end:
"That shouldn't be a problem to you if you've heard about a professional like Mr Manuel grey, he's really the best i can speak of so far.."
This professional, xyz name, number xyz, facebook, telegram etc.
They basically just want you to send them money OR buy crypto and then send them the crypto you just bought so they can "manage" it (e.g. run away with your money)
Or they are paid groups: You pay them money regularly to get into a group that should tell you when to buy or sell (total BS, because they already earn money from members so they don't have to care if you lose or win)
TL;DR
It's still new and most people don't know more about it than once reading about it in the newspaper
So it's easy to scam them
Its a fucking bubble!
@@chrism3933 Thank you!
We can’t sit around and be worried about a fall of the markets every year! We just need to move forward
Whut people have been saying that we are going to have another crash even during the middle of the last crash.
I hope so I can finally get a home 🙏🏻🙏🏻🙏🏻🙏🏻🙏🏻🙏🏻🙏🏻 if there is a crash
Phoenix real estate is getting crazy expensive! My landlord was asking a 60% increase when my year-lease was up in central phoenix this past spring. Luckily was moving out of state so I didn't have to go through with that increase!
Yup in my zip code in Phoenix you can't get any house whatsoever for under 500K and I paid $390 for 4,000 sqft good neighborhood, perfect condition in 2011. Mine now worth north of 800K
So true about San Diego. It’s a joke here. Everyone born here becomes disheartened how imposible it is to buy a house in our own land that they feel resentment and start to hate it here. Almost all of the young people I know want to move to Arizona, Texas or Las Vegas.
@Kevin Schmidt I don't know what job you work but you don't make 60% lol. More like 90% with housing prices 60% as expensive. With the money you save, you can afford to crank up the AC and fly to any beach you want on the weekends and still come out ahead. I lived in San Diego for 4 years and maybe went to the beach 20 times. Miss the nice weather though.
COme to Vegas!! I love what Cali peeps are doing to my property value!!
David yang the damage is already done! This is the start of the next rise in real estate for areas Cali peeps are leaving for!
Lmao! No all my renters are paying in full and on time. I’ll be buying foreclosures and just making my pockets deeper!
@Kevin Schmidt to be fair, I live far away from the beach. I live in the eastern part of SD. it’s 93 degrees every day and because it’s a decent middle class neighborhood, all homes are over 900k and my parents pay extremely high property taxes and Mello Roos fees. Without the benefit of nice weather
Great analysis on this, I'm wrapping up closing on an LA property now that I was able to snag under asking price. If prices and/or rates do in fact drop in 2021, I'll be waiting to grab another deal that will make me some money. 2020 started out rough, but this last half of the year has been amazing for building wealth in the years to come!
Big supply issue here in Phoenix... that has caused prices to soar and locally will likely continue to soar as people flee the larger cities looking for a place like Phoenix with better taxes, cheaper real estate, plenty of jobs, and less bureaucracy.
Agreed - Phoenix is on the top of my list!
Prices increased DRAMATICALLY in under a year, and my wife and I are getting out while the prices are hot.
Agreed, this last year has been crazy
@CashFlow 101 As I mentioned in the previous comment, I will be going into a single family home. Fix it up, rent it out in about 2-3 years, and do the same again.
Alan Wolensky II ur better off selling and renting and waiting a year or two.
@@alanwolensky Agreed I'm currently in this situation, sold my home in July, in a rental right now will buy again early next year as I'm currently negotiating a live in flip with the rental property I'm in now, the landlord wants to sell it to me, but it needs some TLC.
@@ruanorafa but what if prices continue to climb? Then he is screwed
What’s happens if banks stop lending cause there is a banking crisis. You missed the elephant in the room.
What’s your 1 million dollar house worth without a 30 year mortgage at 2%? Significantly less than you might think.
I was there to see the opposite. When Paul Volcker raised interest rates to combat inflation in the early 1980's. You could buy buy property at a large discount if you could pay cash. Remember that for 30 years from now when interest rates are sky high. Have cash.
Damn, i thought Graham finally got sponsored by a coffee brand but it was just a newsletter. Smash like for Graham to get free coffee.
I did one coffee company in the past, they were really good!
Graham Stephan what was the name of the coffee company, please?
@@GrahamStephan oh! Must have missed that. That's a tick off the bucket list.
real estate in my area is literally sky rocketing
yep! so many areas are going nuts!
I sold my investment apartment. Had to drop the price as well. Still grateful to get rid of it. Renting an apartment out is such a pain these days. Tenants ruin everything.
What happened? Can you tell me your experience I have been thinking about doing this
Graham, I want to give my thanks and appreciation. For the first time in my life, I've been following a plan to be free of consumer debt by the end of next month. I'll be building a substantial emergency fund for the first time in my life, and I'll start investing in index funds to secure my future. Nothing but gratitude and good fortune for you!
well done!! so happy to help!!
Even you buy the $300, with higher rate it’s better in my opinion since interest rate can go down later again !
Yes but that could be a long time you're losing more money in interest when you could immediately be saving more. But on the flipside when you refinance later the 300k house might go up in value where as the 450k house is already pretty pricey might not go up more in value. If the 300k house goes up in value you've gained equity just by owning it... and may get a lower interest rate eventually.
Graham videos in 10 years: *drinking 20 cent iced coffee on my 100 million dollar yacht*
He would never be able to by a 1 million dollar yacht just on principal! I don’t think he would even enjoy it!
I could see MAYBE a nice piece of art...but a big yacht? The overhead is crazyyyy expensive.
@@GrahamStephan screw the piece of art, i wanna see that fish tank wall haha
... on one of his new rich friends yachts
@@GrahamStephan And art appreciates.
This is crazy to me, I recently started studying to become a real estate agent, I'm about a quarter through my online course. I've been noticing it more often now when people use real estate terms, such as Freddie Mac and Fannie Mae, aswell as someone else's video the other day, they mention HELOC's. Its weird how much Im already picking up. Very excited for the future!
Unfortunately, the real estate market is mostly driven by location, and supply and demand. If there is demand in an area, and not enough supply, there WILL NOT be a crash, regardless of where interest rates are, or the overall price. It’s better to just get into the market sooner than later rather than sitting on your hands and not doing anything.
why is it 'unfortunate'? is there a better way that real estate should be driven? but I agree w you that its best to get in early
I'm in the military and am currently buying in a military town due to the extremely low interests rates. Demand here has only been going up and the area has been rapidly growing. I will be able to rent my home out for 1600 a month with a total payment (including taxes, HOA, and insurance) only at 1250 a month.
@@ucmjustice2932 I was in the military. why dont you stay in the barracks? Its rent free and the chow hall is right there, I saved money that way. didnt need a car overseas, gym, bank, nco club all there
leverage is a double edged sword and real estate with a traditional mortgage is at 4x your down payment.. if you lever and it moves in your favor, you can compound at 35%+ a year such as in 2012, but if you do it incorrectly, you'll lose everything. sometimes waiting isnt such a bad idea.
@@6955beniegn I'm married and have been renting for the past few years.
I’ve owned and invested in real estate for 21 yrs, this all non sense, buy good deals, have equity in deals, your fine.
Please can you tell me house prices going down next year or not
Jamil Hasan he just said no
I just closed today on a townhouse. 😁
Congrats! Investment or house hack?
We close 23rd at 2.375 %
@@AntwanAhmed Just for me to live in. 2 beds 2 baths. Tired of renting, you know. hehe
Congrats. It’ll be worth Double x2 in 10-15 years. You beat the market.
Congratulations!
I don’t see this as something that could be sustainable but we’ll see how it turns out
I have pivoted myself. Out of our 9 investment properties we sold off the 4 that were performing the worst. Used half of that money to pay off all debts except debt on our primary which we refied from a 15 year to a 10 year.
The other half we put in the back for if/when either stocks or real estate comes back to normalcy in which case we go shopping.
However if we are wrong it is okay we still have 5 rental units with 3k a month cashflow once we have the final one rented out. With no debts on them...
I appreciate you writing out the entire content info in the info box! I skip the video and just go straight to reading.
It's booming here in the UK because of government incentives 🙄 It's very worrying that people might buy at the wrong time and end up in negative equity! 😬
yikes :O
Bahahahaha that will be hilarious!!!!
Same in the US with low interest rates. Seems crazy to buy now.
It is a guarantee they will.
It's relatively safe because the banks pulled out the 95% and 90% LTV mortgages. So only if the market drops like 20% , they will end up in that situation. Also Keep in mind not all towns in UK have reached the 2006-07 peak price but the wages have gone up in that period, so houses in some areas are already undervalued.
Graham: Uploads a video
Everyone: *hippity hoppity the comment section is my property*
everyone gets first ;)
Too bad property values are dropping! ;)
🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣
Laughing is contagious
Crypto trading is a very lucrative way of making money online now.
Was going to buy earlier this year but due to the insanity I held off. I'm waiting for things to either drop or things to settle. whichever comes first. I know homes are way overvalued right now. In the meantime I'm investing into my own business and some long term stock market buys. Thanks for all the information Graham
Graham, I love your videos and wanted to suggest you maybe doing a rags to riches series where you do a story time (or interview) about some well known and non-well known successful people that have worked their way up by being smart with their money. I think it’d be so inspiring and a really positive thing to showcase in contrast (but not instead of) to the housing/stock market collapse.
Same experience in NZ, a combination of low interest rates, low deposit rates, inflated stock prices, low number of listings , lack of land and expensive build costs - and high demand caused by immigration (kiwi's returning home) all make for a very powerful push upwards on prices. All the indicators are full on for price rises - never in our history has it been so.
“Toilet paper just happened to houses.” - Graham Stephan 2020
20 cent iced coffee is turning his brain into Mush maybe he should've went to Starbucks xd
Crypto trading is a very lucrative of making money online at the moment
I've got this little interest in Bitcoin maybe I'll give it a try
Well with the crypto currency market favourable as it's Investing now wouldn't be a bad choice tho.
Remember some precious metals.
Watching “Selling Sunset” on Netflix and I’m like... Graham Stephan!!!
Please don't move to Texas. I'm trying to buy a 🏠. These bidding wars out here are crazy right now. Houses selling in less than a week from being listed.
I live in Texas too. What's happening here is crazy.
We are on the same boat!
I was thinking of moving to Texas cause it checks all my boxes but I just feel like it's going to be the new CA in 5-10 years you have illegals coming from the south and liberals fleeing from all over the country.
@@endlessslumber441 I would agree just looking at Austin. It's rapidly becoming unaffordable to live there in comparison to the rest of the state and there is an emerging homeless problem. I used to love that city but it doesn't resemble what it was just 3 years ago.
Liking the new music you're using during the little quibs that you always put in. Lovin the vids as always, and where is your glass of 20 cent iced coffee?
This never happened in my area. Prices are almost 10% or higher this month and its ridiculous, homes are going 10k over asking because its a sellers market and its terrible. Ive lost 4 houses already because of 7+ bids on a home. I even went after a HUD home that needed way to much work with no luck.
Very true Stephan. I invest in real estates but I currently find the forex market more profitable. I make an average of $20,000 per week from the forex market even though I barely trade myself ☺
Good one Yovanna
That's a lot!
Hey, can you be my mentor please?
The forex market is arguably the largest market in the world. It's crazy how only a few are tapping into the opportunities it brings.
@@soiziszposis5977 An every experienced trader can easily make that in a day. It's crazy how the forex market works.
Im a realtor, and that explanation with the data points is more concise and clearer than ony other real estate guru I've heard before, in a good long while.
hes got good energy like breathe of fresh air
I “smashed” the like button because he pitched it so well. I couldn’t say no
I was reading your comment the exact same time he pitched it! Lol made it even better
Hey Graham, can you do a video about discouraged potential home buyers and give us tips about what we can do to compete in this crazy market. Thinking about buying a home makes me sad. What should we do???
Low interest is the time to get in, it will stay like that for years. Thanks for sharing!
oh wow, I'm early! hi, I saw u in selling sunset in Netflix
hey thanks!! good eye!
How did I not notice this? Which season and episode? Great show 👍
I don’t think Hawai’i real estate prices are ever going down.
Bigtruckseriesreview Motorsports not really. Foreigners coming in, and many locals are leaving because of high prices of living. So it’s really the other way around.
I saw a house for 450 k but it needs work
Although you can buy a house in Hawaii, you can never buy the land under the house UNLESS you are a native Hawiian.
Rick J that’s not true
The houses get cheaper but the land does not. Since the house is worth almost nothing compared to the land yeah I think you are right.
*I'm going to wait and see what the market does within the next year or two before looking at buying.*
I always watch Graham and MeetKevin at 2x speed, and I love that they both enunciated and explain well enough that you can still understand it all. Plus watching Graham's hand movements at 2x speed is amusing
Can you do a video about triple net leases and explain why you have never gotten into it?
I really appreciate working with hackerzhiyong on telegram 💯💯💯
When you include the 1% property tax on the $150k difference, then the $450k property is more expensive. Or are we not supposed to take that into account?
True, there is opportunity cost too
As a potential buyer next year, I'm ready for that drop lol but I do hope sellers still make a profit off sales, real estate means a lot to a lot of people.
Oh shut up! It's up 9% just this year honestly the most it would drop is 5%
That’s why keeping all your shares in the real estate sector....😂😂😂, you gotta diversify why not think about it.
I'm starting to!
Graham Stephan so which do you have in mind now???
Rent is too damn high😭😭😭😭😭🚶♂️🚶♂️🚶♂️🚶♂️
Why not go into crypto it’d tend to rise and fall, but still depends on which your investing in whether bitcoin, ethereum or even those little crypto they will tend to have a high a value as the year goes by
Bitcoin has a high rate, unless you talking about trading with it. Like not buying and keeping it in your wallet and waiting for it to inflate...1btc equals about 13,105$...só unless you intend trading with it friend, you can earn from it. Or you got cash to buy in large quantity and sell again
Just got outbid on a house (had 13 offers) by over 20K listing price, waived contingencies, and 21 days to close. Real estate in NorCal is intense.
wowwww
0% is a cool goal. In France we get below 1% interest rate (for a 20y fixed rate mortgage) when we borrow money (i did, anyway). But keep in mind that the lower the rate, the higher the price. So only buy stuff that is 30% marked down, because that's what's gonna happen soon. 30% drop. This kind of thing only happens when the system knows that the prices are about to drop without help.
A 4% interest rate difference is huge, the real difference is more like 1.5% in the market today.
"TOILET PAPER JUST HAPPENED TO HOUSES!" I NEED A T SHIRT WITH THAT ON IT! 🤣 LMAO
Why are you talking about residencial when clearly it would be commercial real estate that would make a financial crisis?
Hey graham because of you I have made over 16 million with my online business in only 11 months! And I’m only 13!!!!
I’m paying on 3 homes in Salt Lake City utah. I’ve refinanced all 3 with my newest one at a 2.37% rate. The other 2 at about a 3%. I’m now paying $1800, $800, and $900 mortgage monthly payments. I just renewed the lease on the $900 one and rent for $1600. I rent the basement on my new one for $1200. And I’m remodeling the $800 one and planning to rent in Feb for $1200-1300. Very hard work but as long as I can make the payments on all 3 I’m planning to hold all 3 whether the house market crashes or not. Wish me luck!
only problem is you pay alot in taxes. maybe best to unload one
“But Graham! What happens when government printing currency stops and businesses have to let go of a few % of their team”
Smash the like button so Meet Kevin can shave his eyebrows
smashed!!
Smashed for the algorithm...and also for the eyebrows thing 😝
Looool
Are you sure? Or you are just joking? Whole bunch of people and I just smash the like button!
We will see if you are trustworthy or not, haha.
so everyone at the same time just said "let's go TP the entire housing market"
hah!
if everyone panic sells we gonna have a shitty situation 💩
Real estate is crazy here in Arizona
We bought last year in a neighborhood with new construction. In one year floor plans that were selling for $245k are now selling for $265k with less features and upgrades. $20k more in 1 year! It can't keep going up. Paying down the mortgage is becoming a bigger priority every day.
wow!
Just like my stocks, I think I'll buy and hold. Especially here in a growing market.
Agreed!
Hey @@GrahamStephan I'm 11 and for last Christmas when I was asked what I wanted I said 100 bucks in the stock market (I get what I make in cash for those wondering)
Dr. Delirious have you made any money
Dr. Delirious that is a good idea
@@muchclutch4906 yeah I'm up 40%
So what you're saying is, " it's a great time to buy". Heard that in 2005.
All time highs, Millions of people can't afford to pay. Either those folks come up with cash after foreberance ends or there will be a drop. Maybe their rich uncle's will die.
@@paulclinton6414 Or... they will extend the forbearance and the bubble will continue.
Graham: real estate is about to crash
Me: can’t wait to deploy my cash and make a lot of money 😃😄
NICEEEE
Yeah😁
Reserves looking like a snaccccc
Foundations Of Knowledge. Maybe in 2 years. Not anytime soon as long as government keeps intervening.
David H true
Whats funny is here in vegas during the peak of covid half the city wasnt working , the strip was closed no one was there , houses prices went up new builds popped up all over the city , and still going
And i couldnt qualify for a house
One thing to note is that it isn't just people not wanting to sell their houses because of COVID that is going to keep inventory low. Right now we are in the middle of a massive labor shortage for trade skills as well as a massive lumber shortage. Prices for a 2x4 have gone from a couple bucks to 6, 8, and as high as 10 dollars. This will slow down and delay the starts of new construction which in turn keeps supply down. Once lumber shortages are resolved you are still going to have a big lag in getting construction completed because there simply won't be enough people with the skills to do the construction.
Graham, work magic in your crystal ball and make this hold out! I have to list a property in the next week 😩
Good timing now for sellers!
I’ll buy it!
Where are you located?
@@GrahamStephan good to hear!
@@PlateInStock the property is in Atlanta, GA!
Here''s the thing, if people are getting into bidding wars to buy houses, they're practically begging to go underwater when home values normalize. There's good advice here but it's all made under the assumption that homeowners have enough equity. The people who snapped up homes after the last housing crash will have equity but the people likely to be watching this video won't.
I had to pause the video to laugh "meteor hits earth; real estate prices soar"
Not sure if you'll even see this, but thanks for the content you make Graham. As the oldest of 8 coming from a cycle of poverty & debt, it's really helpful to have all the info you put out. I use your videos to try and teach my siblings about financial literacy and independence; and my 17 y/o sister is talking about starting a Roth IRA because of it. I'm 27 and wish I had the info I have now when I was her age, but it's helping me build a better future for my family.
Here in Boise, Idaho, we are in the middle of HUGE housing shortage. Not enough rentals, not enough houses for sale, more and more and more people moving here. I don't think we're at risk of a downturn here. At worst, the prices might stop climbing so fast.
Graham: interest Rates will never be negative
EU: fool
I disagree. Once COVID is over the housing market is going to go up. More people will have jobs, creating families, wanting to buy a house more than ever. If anything housing demand will be even worse...
But question is it’s NOT gonna be over, prepare living with it
Joseph Liu. exactly. COVID ain’t going away for years. Interest rates stay low till 2024.
Joseph Liu COVID over or when people get over it and just resume things regardless of COVID. Same thing, I predict either or will happen.
Rannd I think it is more of who is going to be president... If Biden get elected we will literally go into a recession like 2008, the stock market will fall because of capital gains will increase, and tax increase will cause less job opportunity, mixed with already covid... would end badly
Waiting, waiting, waiting. Some day I’ll be able to buy a house. In the meantime, hoping my stock portfolio growth outpaces real estate market appreciation so I can reach the down payment I need.
Gotta get out of renting and own you’re own residence! Plenty of ways to creatively finance your own residence!
There is a MASSIVE house shortage. Most superb towns in Massachusetts have has than two houses total for sale on Zillow. It’s insane
Same as NH. Crazy RE market.
When everyone jumps into the pool the water level rises to the point where it overflows. But when they all leave the water level drops significantly. The same applies to stocks and real estate
yep!
I just bought a condo in Canada and clicked so fast in this video to see if I had made a mistake
Nope!
Here in Sweden we do not have many houses for sale, but we have many people living here. therefore, prices are very high and interest rates are low.🤑
Just bought my first house, moving in a month cant wait😁
Dont forget to LIKE the vid guys👍😅
Impossible, lumber costs has skyrocketed recently. Inventory at a all time low.
Multifamily residences are going up like crazy, which is why lumber is probably skyrocketing.
Foreclosures mostly won't happen. The banks won't foreclose. They will sell the notes to hedge funds.
The greatest money making investment in 2021 might very well be buying notes.
Wow! There really was a lot to unpack here. Gonna have to start watching your videos at 0.5 speed.
I really hope in the next two years real estate gets cheaper so I could finally buy in
lets see!
Highly unlikely
I personally feel we will get an opportunity to buy some really cheap real estate in the near future, once the Federal reserve runs out of ammunition and all these artificially inflated assets will come tumbling down, although I guess it's possible they could pull something out of their ass and keep it going.. but history shows if you print enough funny money its value goes to nothing...
@@GrahamStephan just a thought you may want to consider selling some of your properties in this inflated market take the money and run... buy in cheaper later.
What is your thoughts on people leaving California and the fires wiping out more inventory in the short term?
@@freedomchannel3656 they are using artificial intelligence so it's highly unlikely I would buy now.
Graham, there’s this finance channel that i really like and you should collaborate with. His name is Andrei Jikh.
Made you look
They have already collaborated with each other
haha I'd love to
Xavier, I know, I was kidding.
They did already,,
I'm subscribed to his channel too
I didn’t get an ad before the video... how will graham pay for his 20 cent iced coffee!!!
OH NO
The reason why housing prices have skyrocketed is because there are a lot of buyers and very few sellers thanks to COVID. Buyers often sell their home before they buy. That means right before COVID there were a bunch of buyers who had just sold their homes and were looking for new ones. Once COVID hit, hiring froze, which means there were less people looking for new jobs and willing to relocate, therefore making less people selling their homes for those original buyers to buy. Hence massive demand from people who sold their homes pre-COVID and little supply from people selling post COVID, driving up prices.
You sir are a true inspiration. I am actually going to start posting videos soon about my personal financial journey and I just hope I can reach your level someday. Hell, it'd be best day of my life when I can get recognized by you in youtube community some years down the road ☺️
What happened? Where is your video? :)
@@kylekoenig4730 I'm posting my first video from Nov. 1 still nervous about posting videos n such so i delayed it for a while 🙏🏾 apologies.
I'd rather pay $300K for the house at 6% interest rate. This would give me a lower basis for property tax purposes, and I can always accelerate my payments from a 30 year down to 20 or even 15 year.
It is best to buy when the interest rate is high. Interest rates fluctuate, the price you paid will not.
Mulan is one of those films I won't watch even if I'm paid to do so 🤠 Anyway, always appreciate the timely breakdown! I suppose it's pretty reassuring for homeowners and real estate investors for the most part! It would be wise to keep a close eye on the local markets!
Is it just me or every time I see Graham, I see him with more hair? That rogaine coming thru!
Hi Graham, love your videos! I think you do an amazing job in taking a complex subject and simplifying it down in such a way where even kids like me can understand but is still really informative. You were one of the big reasons I became interested in personal finance and I'm really grateful for that!
Thank you so much, happy to help! :)
I love Morning Brew! Simple, funny, and to the point on great news. Thanks for turning me on to them!