Can we just stop for a minute and think about what is being said: “half a million dollars will get you into the bottom of Chandler and Gilbert”. This is Arizona we live in not Hawaii, NY or LA. This is absolutely insane and unsustainable. Income has to come way up or housing prices have to come way down. Again, it’s unsustainable.
AZ Gilbert and Chandler no longer worth the price of so much stress with traffic and schools and the crime is hidden and goes unreported unless someone posts om Nextdoor where I've seen some crime posting removed!!!! When Police officers . firemen.. teachers and pool guys have real-estate liscenses they have invested interest in the inflated prices and we are not interested in getting stuck paying 1mil for a home that was $450 8yrs ago. Not falling for the scam. Saw this before with our 1st home in AZ in 1996 going up 3x's the price then fell below. Now that $113k home is over $500k and it's not worth it! Moving back east before all these people start their lifestyle regrete and go crazy in 120 heat that will be starting next month!!! So many will be trapped here that bought at overvalued prices
The people that are buying these overpriced homes are moving from other states a lot of them paying with cash from homes they have sold in places like California and New York, same thing happening here in Florida it is driving the market up and out of reach for the native residents.
It is "insane and unsustainable" for millennials looking to purchase their first house. It is fully sustainable for out of state, wealthy older people, likely empty nesters flush with cash from the sale of another house, who are attracted to Arizona weather and environment. Projecting the needs of a 27 year old FTHB on an entire market is myopic.
@@danoconnell2635 That’s a good point, but I think it encompasses more than just millennials. I know quiet a few people from the generation before me that are holding cash as well. I am however curious, what is your take on the current situation of the housing market, if you think these conditions are justified for older generations?
@@naturelover2292 A solid point. This definitely skews the bottom line and what we used to think was normal. You’d think you would see housing prices start to fall in California after so many people left for Phoenix and Vegas. I mean if we’re talking about an amount of people to affect the entire housing market in Phoenix, how has it not affected California?
states need to pass laws that limit the ownership of rental houses to a company or to a certain percentage of the market. This takeover by giant retail landlords is super toxic
Or the other option is people should not be as greedy and not sell to these companies. They usually offer top dollar which is why people go with a company.
@@TzUuup Way to look down on your fellow man for their work. People like you are the problem. If you work 40 hours a week of your life at any job, at a minimum you should be paid a living wage. I dont care if you're cleaning toilets or taking orders at a drive thru.
Yes, my friend bought in Coolidge in 2018 for 137K, I'm looking at a similar type place there now for $300K. It makes no sense to pay that way out there! Who would/is doing that??!
That’s crazy! I owned a home in Queen Creek ( and lived there when part of it became San Tan Valley) I paid $211,000.00 in 2006 and when I left in 2012 it was $100,000.00 less, so I was negative. I have family out there still and I know that the prices were I used to live are really high. This is crazy! But California is worse. We have small bungalows going for A LOT depending on the zip code.
@@KP99 that’s double price to pay in the unsafest city in Arizona (Coolidge ) . I noticed Dr Horton and Richmond every home fail in escrow they do a fake sale from Dr Horton to dr Horton so they can get other homes appraisal to the asking price (in Coolidge) . I wouldn’t pay double price for a house in the desert with water issues and high crime rate.
It’s really depressing. I grew up here and now I’m ready to buy my first home and honestly, I can’t afford anything over here. I do t know what to do anymore. Rent is crazy too. 😭
@@joejackson9986 Fantastic advice. For being single with no kids I have great income. Just not looking to pay $600,000 or more for a shitty small 3bd 2bath.
You are completely correct that affordability is an issue. In Dallas, my spouse and I make $116k combined. No car payments, 790+ credit score, just a few thousand in debt, and it is going to strain us to get a starter home since they are going for $330s and we have a kid on the way. I don't see how this is good for the country.
@@CSARVA Right? People that are financially responsible and contributing members of society are idiots for wanting to have a home AND one kid. We should all stop procreating and just live in a tiny apartment for the same price a house.
It's just as bad for rentals. In late 2019 I was looking at apartments and most of them were about $1,400 to $1,500 for a 2-bed, 2-bath with about 1,000 sq. ft. of space but that same apartment is $1,850 and more. I can understand a mortgage being more expensive but apartments shouldn't be on par with a home, especially when the benefits of home ownership far outweigh renting an apartment/condo.
I make 75k base salary a year and have 25k in student debt, which is my only debt. My median credit score is 685. Due to Interest rates 5.1% I was denied a new build home that cost 448k. My debt to income ratio was 62% and they approved me for a 380k loan amount. Unfortunately that doesn’t get me close to what I need for my family of 5. Hurt like hell to get that denial letter.
We moved here with the hope of settling down in early 2020, with in 6 months we got priced out I make 78k a year and my lady in the 30k year we can't afford to buy a home here. We will be moving from Phoenix asap.
Priced out by investors for anything decent...So guess what Gilbert and Chandler? You will no longer be getting real income earning families like us to support your dance schools at $1k a month or karate or our over priced clubs we could always afford as my husband always was remote and made 3 times the average income. All the investors and realtors will suffer due to their greed and we are free to move any day... Lifestyle in area not worth it
And you will be replaced, if you will, from some cash-rich folks from San Diego who think $900K is a bargain. Phoenix has changed. The middle class and lower are being moved out of the way for the wealthy. We can stomp our feet and shout at the skies about "fair" but this is reality. Phoenix is for wealthy, older people.
Back December, 2020 bought a condo in Mesa for $190,000. Needed around $30,000 in upgrades. I could sell it tomorrow for $350,000. Whole thing makes no sense.
It depends on whom you ask. If you bought a house back when they were in the $200,000’s and are now selling the same house for over $400,000’s then you think the prices are fair and AWESOME!
You can also thank Zillow and OpenDoor who have been flipping properties for the last 2 to 3 years and increasing prices. Zillow is now out of that business but they contributed
Nope. Open borders is the reason for price inflation. Zillow, OpenDoor and BlackRock are the scapegoats, like Putin is the scapegoat for rising gas prices. The liberal media is covering up the real cause.
Purchased a home in Gilbert in 2010 sold it recently and used my equity to purchase a home in a other state outright, it feels great to not have a mortgage payment or pay rent . I miss Arizona of the past but it’s changed so I made a tough decision but everything has its pros and cons I guess it’s all about affordability at some point.
@@edgarponce746 I moved to the woods of Kentucky, I was originally from NY then lived in AZ but both of those states were extreme in their high/ low temperatures. Kentucky is just right , all four seasons but not to hot or to cold , if you’re used to the Arizona climate you might not like the humidity in Kentucky but it doesn’t bother me plus I can breathe better out here ( clean fresh air)
@@Dara-ub9ol Nice! Hope all is well in Kentucky, I’ve been exposed to the Humidity in NOLA, Nashville & Mazatlán..finally understood what “But it’s a dry heat” meant 😂
Thank the huge investors Like innovation homes and Tricon financial, a Canadian company, who owns tons of thousands of single-family homes that they have turned into rentals. And they’re still buying
Used to live in AZ for 20 years. If you are really shut out of the market consider buying a used boat and get a live aboard slip in San Diego. Best lifestyle you can have!
I generally agree with your take on affordability being an issue and think it will only get worse from here until our government stops printing money. The last statistic I heard was that 40% of all US dollars in existence were created in the last two years. Which if accurate means that the government through the creation of new currency has increased the wealth gap by 40%. Only those with hard assets like real estate preserve the value of their purchasing power during inflation. The houses you presented didn’t increase that much in value even though the prices you quoted for the same houses in the same area were very different. The difference in price I believe is because our dollars are less valuable due to the fact that there are more of them chasing the same assets and causing low inventory because people don’t want to cash out of an “appreciating” asset during uncertain times. Thank you for providing real estate content!
Canada recently put sanctions on foreign investors from buying single family homes, and requires higher taxes on sellers who sell their home inside 12 months from purchase for the next 2 years. Sounds fantastic, anybody think the USA would adopt similar practices?
Nope.. or else nobody would buy those homes. fact is 40% of millenial and zoomer generation is minority. Foreign investment is from rich global friends. Writting is on the wall. Neo Feudalism rules here.
The top of what? The market will not go down, maybe temporarily, but these prices are here to stay. It will level off and stop going parabolic, but with the amount of people moving here, this is not a peak.
Another major problem is that if you solve the affordability problem with the traditional method of increasing supply, you are going to create a city with chronic water shortage.
My partner and I combine make about 110k here in Phoenix and with 2 kids we are priced out of this market. The only homes we can afford are manufactured homes and at around 275k the payments are 1700+ we can pay it sure but with the rising gas, food, and 2 kids it's just not affordable here anymore.
Yeah it’s really bad out here. My wife and I live in Glendale, AZ and it’s outrageous. The houses that were built up the block from where we live at back in 2018 which were $265K is now going for like over $500K. The messed up thing is we’re finally in a position were we are ready to buy a house but now we can’t afford it. We’re thinking about moving to Texas.
We have bounced the texas idea around too. The problem is in Texas alot of the homes have extremely high property taxes compared to Arizona. So I've been seeing homes prices around 200k in Texas but because of the high taxes the mortgage payment would be the same as buying a 350k house in Phoenix. And when you're home is all payed off you still pay those high taxed $5000 a year where here in Phoenix it's $600 a year
@@arizonalifestyle79 really? I didn’t know that. Hummmm, it’s something to considered. However, the school system sucks out here in Arizona. I’m assuming if the taxes are higher in Texas they’re school districts must be better.
@@JuneBugginTrucking yeah I live in Dallas it’s crazy out here the areas North of Dallas like Frisco, Plano, Allen and McKinney a lot of people are moving to those areas, the property taxes are extremely high and I grew up close to Plano been through the school system, the districts in all those areas are good.
Sometimes folks just have to face the thought of moving to another area where homes are more reasonable. Hint: Try OLD Bullhead City, Arizona. Rents are high, but you can STILL buy a mobile home of your own for only $100,000. That’s right, only one hundred thousand, AND that includes the land approx. 50’x100’. Seriously, you have the Colorado River is walking distance away with nine gambling casinos on the river bank on the other side in Laughlin, Nevada, 90 miles south of Vegas. There’s plenty of water sports (fishing, jet skies, etc.) and the best Springtime in the nation, IMO. An added note: Workers that do home repairs are really hard to come by in Bullhead City.
Hello Javier, the issue is Arizona had a "deflated Market" for so long due to 2008 and some other factors while businesses continued to move there and areas continued to build. People with low incomes from the Midwest and all over the country flooded Arizona (cheap living, medium wage jobs and low property taxes). Well reality is catching up and the money is moving back into Arizona whether this is caused by political policy from states on the east coast and west coast states like California, professionals relocating and a massive amount of retirees. Arizona is highly desirable, when I was in AZ from 2018 to 2020 I knew this because I was Financial Advisor and saw it first hand, fast forward I am a Mortgage Broker now and 75% of my deals flow from AZ and it definitely is a mix of all the things I mentioned.
Buyer's simply don't have to offer anything close to the list price. Imagine if 30 people placed an offer on a home more than 100k less than list price. If the seller(s) is/are serious enough, they would have to sell! You think they would pass on 30 comparable offers?? We simply don't realize how much control we have. It's called market manipulation. Homes simply do not appreciate by 100k in two years! We've gotten caught up in the "herd" mentality. As the buyer, we're a bit at fault because we're still buying homes that are grossly overpriced. We have to wake up and smell the coffee. We have to be wise when making arguably the biggest purchase we'll ever make. It's really that simple! God Bless!
I lived in Columbus, Ohio for about 6 years and it was great. That's a great city. Anyway, I was paying 875/mo for a 1600 sqft 3 bed/2.5 bath in a super great area of the city. I came back down to Phoenix (my hometown) last year and I could barely afford a freaking studio apartment. Something is going to give at some point.
Phoenix, as with many sunbelt markets, is extremely volatile due to transient inward migration and high investor-driven home purchases. When you have companies purchasing homes and flipping or renting them out, there are consequences on the local market. I believe at this time that Phoenix is in the largest "bubble" of all time. I grew up there, and have no desire to return due to over-inflated home values, congested freeways, scarcity of water, pollution, and 100+ temperatures for 7+ months of the year. All of which adversely affect the quality of life. For me, Phoenix is a hell hole.
I left after 35 years-give or take-in the Valley. Mind you I came back to the Phoenix metro over 8 times from 1985 until 2017. Why did I return? Familiarity, affordability, family and friends. Well, the affordability has dried up in a very short period of time; to qualify for the lowest-priced 2 br apartment in the West Valley, you now need to make over $22 an hour. I have seen some of the worst neighborhoods in those years and I shudder to think what it's like for single-income earners. Even with none of the current economic forces being a factor, I would never return for the reasons that you mention and more. Thank God I am here in Florida and I rarely look back...
Find out how many home are unoccupied owned by investors and you will know why the housing market is so crazy! Florida has 1.8 million homes unoccupied not for sale and not rented. Investors are driving up the price to force there profits when they decide to sell.
I sold mortgages back in 2006... we were doing stated doc and option ARMs. In 07 it all fell apart. I'm thinking it's going to fall apart again and prices are going to come crashing down again. My aunt's house appraised for ~450K in 2006, in 2007 that house couldn't sell for much more than 250K.
It'll fall apart once people start loosing their jobs. I doubt it will be a real estate bubble to burst. It will be something else in the economy to burst that will drag down everything.
Worsening water shortages have changed my mind about wanting to move to Arizona. I now appreciate Lake Michigan more than ever. Increasing number of stories coming out lately, regarding declining levels at Lake Mead and the Colorado River.
It's even worse in Nevada. And if Ida known all of this was going to happen from covid. I would have tried to buy me a house pre-covid cuz I have a good job, I went back to that job and now I might not be able to afford a home even though I make really excellent money. I'm not rich I'm middle class and middle-class is poor now in Vegas.
If some of you can work from home try moving to a cheaper area in northern AZ. Yes its rural but you can buy a home or even buy a home with acres of land. You can even buy land and build what you want on the land. Show low is 3 1/2 hours from Phoenix, Williams is 45 minutes from Flagstaff, Heber, Heber Overgaard is 45 minutes from Payson AZ. Ash Fork is 20 minutes from Williams. Snowflake is 20 minutes from Show Low. .
Nope. Wealthy people moving in=landlords raising rents. Wealthier people are moving in from places like California, usually people working from home and they're changing the market.
Great video ,even in the Atlanta area we are going thru the same thing I want to buy but it does not make sense to buy ,even the old houses have a huge price and don't make sense to buy if you are looking to refurbished the house ,as of right now the average 4 to 3 bedroom house is going for 350000 to 400000 ,with a 5 percent interest rate ,I can't buy now ,it wouldn't be a smart move
Great analysis Javier. I appreciate the work that went into this. Nowadays, people have to get creative to buy properties rather than the regular old-fashioned way of getting a regular loan and being able to afford a regular home.
I gave up on the U.S. housing market! I moved to Costa Rica and Panama. I buy beachfront homes, at approximately half the prices in Florida and California.
I'm old. My guess is in 2-3 years someone will be making this same video saying homes aren't affordable and looking back to 2022 as being affordable. I couldn't afford my first house so I bought a dump with another person who was in the same boat with the agreement of getting 2 more roommates. It kind of sucked but it got us both into a house. We fixed up the dump a little, values went up, our income went up and in 18 months I could use that property to help me buy another home on my own...another dump. Repeat. That was in San Jose CA back in 1980. Today 2 people who can each afford a $350k home can together afford a $600-700k home. Newer homes in the US are gigantic compared to every other country in the world. Two people or even families would have plenty of space. Even getting some more roommates s doable to bring in cash. Instead people pay huge rents and complain about affordability. Seems crazy to me.
You are 100% correct, confirming as a fellow old person that’s seen this phenomenon play out in other cities throughout my life. Yesterday was the best time, but today is always better than tomorrow when it comes to a fundamentally strong growing housing market
The last housing crisis, which was based on oversupply and poor credit standards, has given birth to this crisis of undersupply. It is not inaccurate to say that the first crisis never truly ended, it simply morphed into something new and perhaps worse. America under built for a decade, from 09-19, leaving a deficit of some 4 million housing units. Homebuilders are on overdrive now, despite labor and supply shortages, and maybe able to build approximately one million new homes this year, leaving another three years of "making up" for the past deficit while also needing to make up for the natural population growth ( 350,000 annually I believe). This is a seismic shift in the home market where an entire generation is being left out, while older generations (Gen Z, boomers) continue to build wealth and purchase additional property for rentals. Prices are not going to drop anytime soom. To all the market timers and doomsayers, there isn't going to be a crash; instead every dip in prices will be met with an aggressive round of buying. Phoenix is now out of reach to younger buyers. Look elsewhere I am afraid.
Prices were VERY affordable from 2009-14 or so. And quite affordable from 2014 to the end of 2019. People that failed to buy at that time are now crying a river.
All you need to do is find one of these cracker jack boxes owned by one of these greedy POS companies and MOVE IN! Break the lock, change the lock and have your bank statements, mail and utilities switched to that address. Squat in that property and take it over. At least you will have a little bit of time to save up.
Permanent underclass is being solidified. Anyone not a property owner will forever be locked out and forced into wealth draining (more draining) renter lifestyle. My suggestion is to get married, even if you don't necessarily "love" the other person. This is about setting yourself up for retirement and wealth building. The single lifestyle and having a decent standard of living is OVER. You need 2 incomes to have a decent life these days.
This is a Nation Wide problem . Its not simply confined to Arizona . Homes are extremely expensive everywhere due to many factors including lack of availability . And its only getting worse .
This is unsustainable. And it is not just Phoenix - I've read about other cities. Denver is getting pricey. Dallas. Florida is notorious. Even Boise Idaho is climbing fast. Portland & Seattle. I recently moved here & am paying $500 more in rent than my last city - and I hate the apartment. I was looking at some listings for small houses that were around 300k (2 bedroom, maybe 1000sq ft inside) and it says "estimated payment" was like 1300 something and I'm thinking why am I paying more than that in rent and not owning. On those real estate sites where they give an estimated payment, are they somewhat accurate or is there something hidden? I was surprised it was so low. I think it calculated on 20% down and they had an amount in for tax & insurance. But those houses were gone in a snap. and now the rates are going up, its going to kill what little affordability there is. We're doomed.
Only complaint, you open with "houses for people just above minimum wage"? (Paraphrased). But this was never a thing. Where would they get the $10,000+ closing costs? A side hustle? Maybe 1% of people at that income could successfully scrape that up. Maybe back in 2007 when the government was pushing banks to push shady loans on people, but that was before your time in the business, and before McDonalds was paying $20/hour. I was making $10/hour back in 1992, and that was $305 a week. That was 3 times the minimum wage, and I was barely able to eat at McDonalds. No, there has never been housing market for people "just above the minimum wage".
I make roughly $33k a year on my job (before taxes) and I paid cash for my home in the summer of 2021. The reason being is I have a lot of assets that don't pay any income so it doesn't reflect on my tax return unless I sell. There are a lot of income poor, asset rich people like me in the world.
Ironically; best thing ever re: my long-term fiancee ? She lives in Arrowhead, and I live in Warner Ranch (South Tempe). Our houses are both fairly nice, and we've had them for years. RE: These last couple years ? OMG.... Wowza..... Talk about picking up some equity. Also; I refi'd from a 15-year at 3.125% last June; into a 10-year at a staggering 1.875% (only $1,400 in total costs). Nice...... We have well over $1M in equity between us. Very much worth it re: my moving to Tempe so my kids could go to ASU. Nice !!!!!
Excellent presentation. The emerging consensus is that we are in Super Housing Bubble. This bubble will crack with the higher interest rates, deserting investors 20%), poverty index, increase supply and drop incomparable. The 20% drop will be in high-poverty areas and investors dominated buyers. Buyers will migrate out of Phoenix and seek areas with better rates of return. The California migration is coming to an end.
There is no bubble. The growth is driven by real economic factors, not hype or bad mortgages like other historic bubbles. Get in a house by any means necessary, or get priced out and rent for the rest of your life.
And let me guess, when the bubble breaks you plan on being there with cash to buy up properties for pennies on the dollar? You doomsayers are like a broken record, as if you watched The Big Short too many times. What is funny or sad to me, is that market timers like you preach about the coming crash yet you lacked the basic foresight to purchase property when interest rates were at 2.65 and now are hedging towards five. Some timing. Good luck with your crash.
@@danoconnell2635 Hello Dan, you make some good points. The problem is that you hit a bedrock of real estate statistics and empirical data that supports a collapse of real estate, especially in Western states. I am not a doomsayer and I have ridden the boom to the top and made lots of money. But you fail to realize 75% of Arizonans cannot afford the current prices of housing. The number of new home cancellation are going through the roof and interest rates are driving the high cost of downpayment plus monthly payments. Arizonans are running out of money and real estate is not a good investment in this type of environment. The reality is that other states in Eastern and Midwestern states have a greater rate of return.
With the vast majority of our land zones to exclude anything but single family homes, don’t you think that re-legalizing duplexes, triplexes and fourplexes and cottage courts would alleviate the housing crises? We need more housing. To do that we will need to make it easy to build things other than single family homes
How much are these crazy high prices fueled by greed. I lived in Phoenix from 1995 to 2015 and it was always an affordable place to live. Where is all this greed coming from? And why? I love you Arizona. But I'm so saddened that all my beautiful Az people are being out priced. I live in Vancouver Washington now and here and Portland the same thing is happening. I can't afford a house here so; I rent with a friend. When is all this greed going to stop?
I agree we have a dysfunctional market. But is there help on the horizon? Rental rates are going down... WHAT? Still way too early, but a glimmer. Thanks for the great content.
Law in Arizona that if your out of state you need to live in Arizona and show proof in job and rent at least 3 to 5 years in order to buy a house ..couse for us Arizonans that dream is out of reach couse of them out of state people...were are those jobs that pay over 100,000 a year thr governor needs to do something...look there's alote of California people that live 6 or 7 in a home there used to that
But I would assume all of those calculations (even the one that accounts for two incomes in a household) are based on a fact that this supposed couple has 20% downpayment and closing cost plus realtor fees saved, plus emergency funds saved for 3 - 6 months. But, how any people really have that amount saved? How are all those buyers even competing with there bids, winning the bid for a higher price than the listed price and still be able to afford it? I know some people lend money to relatives, get money from their 401K, etc etc, to afford all of those expenses, and still houses are selling like hot bread. The "american dream" (which is supposed to be a human right, all based on personal responsibility and success, is now a myth!!! Most people that have personal responsibility and work hard, can not afford it. But everybody would agree (specially most realtors) that when the Real State market is hot, is a sign that the economy is good. The question is: Whose economy? certainly not the economy of the population.
They show the homeless stacking up, and half of them work, iam a widow my husband's check is not enough, for increases out in the street , they say while people continue to purchase homes 3 times the normal amount , they will throw in the towel sooner or later , this rent is impossible in Arizona they should put a cap on rent like no more than 100 , homes to those people will never have equity in their homes , why pay so much with 120 degree temperature s coming no point.
Have you'all ever heard about a loan to income ratio? It's a real thing! These greedy sellers and over zealous buyers are going to see this market grind to a halt. As long as we are paying wages with inflated dollars...there comes a time very soon in which these over inflated homes will sit.
Can we just stop for a minute and think about what is being said: “half a million dollars will get you into the bottom of Chandler and Gilbert”. This is Arizona we live in not Hawaii, NY or LA. This is absolutely insane and unsustainable. Income has to come way up or housing prices have to come way down. Again, it’s unsustainable.
AZ Gilbert and Chandler no longer worth the price of so much stress with traffic and schools and the crime is hidden and goes unreported unless someone posts om Nextdoor where I've seen some crime posting removed!!!! When Police officers . firemen.. teachers and pool guys have real-estate liscenses they have invested interest in the inflated prices and we are not interested in getting stuck paying 1mil for a home that was $450 8yrs ago. Not falling for the scam. Saw this before with our 1st home in AZ in 1996 going up 3x's the price then fell below. Now that $113k home is over $500k and it's not worth it! Moving back east before all these people start their lifestyle regrete and go crazy in 120 heat that will be starting next month!!! So many will be trapped here that bought at overvalued prices
The people that are buying these overpriced homes are moving from other states a lot of them paying with cash from homes they have sold in places like California and New York, same thing happening here in Florida it is driving the market up and out of reach for the native residents.
It is "insane and unsustainable" for millennials looking to purchase their first house. It is fully sustainable for out of state, wealthy older people, likely empty nesters flush with cash from the sale of another house, who are attracted to Arizona weather and environment. Projecting the needs of a 27 year old FTHB on an entire market is myopic.
@@danoconnell2635 That’s a good point, but I think it encompasses more than just millennials. I know quiet a few people from the generation before me that are holding cash as well. I am however curious, what is your take on the current situation of the housing market, if you think these conditions are justified for older generations?
@@naturelover2292 A solid point. This definitely skews the bottom line and what we used to think was normal. You’d think you would see housing prices start to fall in California after so many people left for Phoenix and Vegas. I mean if we’re talking about an amount of people to affect the entire housing market in Phoenix, how has it not affected California?
I’m going to cry!!! Because I’m a freaking Nurse and I can barely afford apartments prices today 😫😫😫
Let's see if we "match"? If so go 50/50.
I’m sorry :(
Sorry to say it. Roommate!
Get married
I see wages in AZ are still a joke. Girl, ask for a raise.
states need to pass laws that limit the ownership of rental houses to a company or to a certain percentage of the market. This takeover by giant retail landlords is super toxic
Or the other option is people should not be as greedy and not sell to these companies. They usually offer top dollar which is why people go with a company.
They won't because lobbyism still exists. For as long as lobbyists breathe, politics will always be corrupt.
Silicon Valley has impacted labor & housing
it feels a little strange that an average wage is unable to buy the average house
So true.
Californians leaving California overpaying for houses driv8ng the prices up
To date, no state pays a minimum living wage, so it's not shocking
@@dickstarrbuck you shouldn't be able to buy a house taking orders at the drive thru. Get some dam skill
@@TzUuup Way to look down on your fellow man for their work. People like you are the problem. If you work 40 hours a week of your life at any job, at a minimum you should be paid a living wage. I dont care if you're cleaning toilets or taking orders at a drive thru.
Even homes in Florence and Coolidge are approaching or over 400k. It’s just insane.
Yes, my friend bought in Coolidge in 2018 for 137K, I'm looking at a similar type place there now for $300K. It makes no sense to pay that way out there! Who would/is doing that??!
That’s crazy! I owned a home in Queen Creek ( and lived there when part of it became San Tan Valley) I paid $211,000.00 in 2006 and when I left in 2012 it was $100,000.00 less, so I was negative. I have family out there still and I know that the prices were I used to live are really high. This is crazy! But California is worse. We have small bungalows going for A LOT depending on the zip code.
People should just move from there
For a place with water issues!
@@KP99 that’s double price to pay in the unsafest city in Arizona (Coolidge ) . I noticed Dr Horton and Richmond every home fail in escrow they do a fake sale from Dr Horton to dr Horton so they can get other homes appraisal to the asking price (in Coolidge) . I wouldn’t pay double price for a house in the desert with water issues and high crime rate.
It’s really depressing. I grew up here and now I’m ready to buy my first home and honestly, I can’t afford anything over here. I do t know what to do anymore. Rent is crazy too. 😭
Chinese people already do that over decades.
get a better job
I went with a condo in Tucson instead.
Townhomes are the best option right now price wise
@@joejackson9986 Fantastic advice. For being single with no kids I have great income. Just not looking to pay $600,000 or more for a shitty small 3bd 2bath.
You are completely correct that affordability is an issue. In Dallas, my spouse and I make $116k combined. No car payments, 790+ credit score, just a few thousand in debt, and it is going to strain us to get a starter home since they are going for $330s and we have a kid on the way.
I don't see how this is good for the country.
People have kids but complain they can't afford a house, which needs to be paid for in retirement. Kids are EXPENSIVE.
@@CSARVA Right? People that are financially responsible and contributing members of society are idiots for wanting to have a home AND one kid. We should all stop procreating and just live in a tiny apartment for the same price a house.
You can afford a 300K house
@@CSARVA they aren't as expensive as people think they are
It's just as bad for rentals. In late 2019 I was looking at apartments and most of them were about $1,400 to $1,500 for a 2-bed, 2-bath with about 1,000 sq. ft. of space but that same apartment is $1,850 and more. I can understand a mortgage being more expensive but apartments shouldn't be on par with a home, especially when the benefits of home ownership far outweigh renting an apartment/condo.
I make 75k base salary a year and have 25k in student debt, which is my only debt. My median credit score is 685. Due to Interest rates 5.1% I was denied a new build home that cost 448k. My debt to income ratio was 62% and they approved me for a 380k loan amount. Unfortunately that doesn’t get me close to what I need for my family of 5. Hurt like hell to get that denial letter.
They are agent who are helping people underground on that one helped me sometime ago
We moved here with the hope of settling down in early 2020, with in 6 months we got priced out I make 78k a year and my lady in the 30k year we can't afford to buy a home here. We will be moving from Phoenix asap.
That's fucking sad
Us too!!!❤
Priced out by investors for anything decent...So guess what Gilbert and Chandler? You will no longer be getting real income earning families like us to support your dance schools at $1k a month or karate or our over priced clubs we could always afford as my husband always was remote and made 3 times the average income. All the investors and realtors will suffer due to their greed and we are free to move any day...
Lifestyle in area not worth it
And you will be replaced, if you will, from some cash-rich folks from San Diego who think $900K is a bargain. Phoenix has changed. The middle class and lower are being moved out of the way for the wealthy. We can stomp our feet and shout at the skies about "fair" but this is reality. Phoenix is for wealthy, older people.
Where to?!
Back December, 2020 bought a condo in Mesa for $190,000. Needed around $30,000 in upgrades. I could sell it tomorrow for $350,000. Whole thing makes no sense.
It depends on whom you ask. If you bought a house back when they were in the $200,000’s and are now selling the same house for over $400,000’s then you think the prices are fair and AWESOME!
You can also thank Zillow and OpenDoor who have been flipping properties for the last 2 to 3 years and increasing prices. Zillow is now out of that business but they contributed
Nope. Open borders is the reason for price inflation. Zillow, OpenDoor and BlackRock are the scapegoats, like Putin is the scapegoat for rising gas prices. The liberal media is covering up the real cause.
I got an offer from OpenDoor in the mail yesterday!
@@realpainediaz7473 70% of what's it's worth, I'll bet.
Purchased a home in Gilbert in 2010 sold it recently and used my equity to purchase a home in a other state outright, it feels great to not have a mortgage payment or pay rent . I miss Arizona of the past but it’s changed so I made a tough decision but everything has its pros and cons I guess it’s all about affordability at some point.
Smart
If I may ask..What state did you move to? Would you recommend to someone who’s only lived in Arizona? 🤔
@@edgarponce746 I moved to the woods of Kentucky, I was originally from NY then lived in AZ but both of those states were extreme in their high/ low temperatures. Kentucky is just right , all four seasons but not to hot or to cold , if you’re used to the Arizona climate you might not like the humidity in Kentucky but it doesn’t bother me plus I can breathe better out here ( clean fresh air)
@@edgarponce746 do your research
@@Dara-ub9ol Nice! Hope all is well in Kentucky, I’ve been exposed to the Humidity in NOLA, Nashville & Mazatlán..finally understood what “But it’s a dry heat” meant 😂
We also need to stop compines form making rental property's
Thank the huge investors Like innovation homes and Tricon financial, a Canadian company, who owns tons of thousands of single-family homes that they have turned into rentals. And they’re still buying
Yes, Blackrock is also doing the same thing. Welcome to "you will own nothing and you will be happy"- WEF.
@@MinkaLovesPineapples Damn
The CEO of that Canadian company in a 60 minute interview even stated younger generations only want to rent & not own so they "provide that service".
People should stop accepting offers from them. Homeowners are greedy too just like corporations.
Tax can't be low to be effective.
Used to live in AZ for 20 years. If you are really shut out of the market consider buying a used boat and get a live aboard slip in San Diego. Best lifestyle you can have!
It's like this everywhere. It needs to stop
Same thing happened with the DFW market. I used to be able to buy a decent house here for $250k, now everything is up at least $100k. It sucks.
Yup. Sadder is even in the outskirt towns, no decent property to pickup.
Bottom line... If you don’t have have the money, You cant do Shitt in life ! : (
Its from all of the California trash moving in. They destroy states. Been going on for decades.
I generally agree with your take on affordability being an issue and think it will only get worse from here until our government stops printing money. The last statistic I heard was that 40% of all US dollars in existence were created in the last two years. Which if accurate means that the government through the creation of new currency has increased the wealth gap by 40%. Only those with hard assets like real estate preserve the value of their purchasing power during inflation. The houses you presented didn’t increase that much in value even though the prices you quoted for the same houses in the same area were very different. The difference in price I believe is because our dollars are less valuable due to the fact that there are more of them chasing the same assets and causing low inventory because people don’t want to cash out of an “appreciating” asset during uncertain times. Thank you for providing real estate content!
Hate to break it to you but they already stopped. And they're gonna unwind the balance sheet too. Why do you think rates are skyrocketing?
Yep, biggest wealth transfer in history.
Let’s go Brandon
@@2ndamendment115 Shut up troll.
it's private equity firms buying up housing stock that is the problem.
Canada recently put sanctions on foreign investors from buying single family homes, and requires higher taxes on sellers who sell their home inside 12 months from purchase for the next 2 years.
Sounds fantastic, anybody think the USA would adopt similar practices?
No if it were introduced than lobbying would stop it so fast. Greed rules here.
No.
@@Sanbonzakuraa would have to agree with Ricky. Capitalism rules in America
Nope.. or else nobody would buy those homes. fact is 40% of millenial and zoomer generation is minority.
Foreign investment is from rich global friends. Writting is on the wall. Neo Feudalism rules here.
you've seen movie Children of Men.. that's pretty much what lack r0ck is about to do.
Housing is no longer affordable for even middle class DUAL income households
Doesn’t seem sustainable. I’m single make 85000 a year and no way could I afford a house in the valley again. Sad
It'll get worse during summer time. That's when people move because the kids are out of school. And I think that'll be the top.
The "top" is several years from now.
The top of what? The market will not go down, maybe temporarily, but these prices are here to stay. It will level off and stop going parabolic, but with the amount of people moving here, this is not a peak.
Check out houses for sale in Gilbert vs for rent. It's like 10 rentals open now for every sale. It's overbuilt
450k to live in Buckeye.....nozzir
Florida is going crazy high too
With everyone moving here it’s causing our prices to rocket as well
A big misconception is taxes and insurance are cheaper in Florida. Not anymore by any stretch of the imagination.
Florida takes the worst hits in economic downturns.
The bubble is gonna burst. It’s just matter of when.
There goes my dream of maintaining a home in the ghetto.
Same in Naples, FL.
Got priced out, and nothing anymore less then 500k
Last year prices were 300-350k
This is unsustainable and crazy.
Another major problem is that if you solve the affordability problem with the traditional method of increasing supply, you are going to create a city with chronic water shortage.
My partner and I combine make about 110k here in Phoenix and with 2 kids we are priced out of this market. The only homes we can afford are manufactured homes and at around 275k the payments are 1700+ we can pay it sure but with the rising gas, food, and 2 kids it's just not affordable here anymore.
Sucks
Things have certainly changed in the 2+ months since you made this video. Oh,. prices aren't any cheaper, but there is inventory now!
Yeah it’s really bad out here. My wife and I live in Glendale, AZ and it’s outrageous. The houses that were built up the block from where we live at back in 2018 which were $265K is now going for like over $500K. The messed up thing is we’re finally in a position were we are ready to buy a house but now we can’t afford it. We’re thinking about moving to Texas.
We have bounced the texas idea around too. The problem is in Texas alot of the homes have extremely high property taxes compared to Arizona. So I've been seeing homes prices around 200k in Texas but because of the high taxes the mortgage payment would be the same as buying a 350k house in Phoenix. And when you're home is all payed off you still pay those high taxed $5000 a year where here in Phoenix it's $600 a year
@@arizonalifestyle79 really? I didn’t know that. Hummmm, it’s something to considered. However, the school system sucks out here in Arizona. I’m assuming if the taxes are higher in Texas they’re school districts must be better.
@@JuneBugginTrucking yeah I live in Dallas it’s crazy out here the areas North of Dallas like Frisco, Plano, Allen and McKinney a lot of people are moving to those areas, the property taxes are extremely high and I grew up close to Plano been through the school system, the districts in all those areas are good.
San Tan Valley and Maricopa are no longer affordable.
I'm considering at a home out in Casa Grande, been there a few times looks likes a peaceful town?
I was thinking about casa grande too but the commute to work for me would be too far
Sometimes folks just have to face the thought of moving to another area where homes are more reasonable. Hint: Try OLD Bullhead City, Arizona. Rents are high, but you can STILL buy a mobile home of your own for only $100,000. That’s right, only one hundred thousand, AND that includes the land approx. 50’x100’. Seriously, you have the Colorado River is walking distance away with nine gambling casinos on the river bank on the other side in Laughlin, Nevada, 90 miles south of Vegas. There’s plenty of water sports (fishing, jet skies, etc.) and the best Springtime in the nation, IMO. An added note: Workers that do home repairs are really hard to come by in Bullhead City.
What is the job market like there?
How do I get more info on mobile homes available for sale there?
@@kylaluv8453 Casinos employ, and if you have home repair skills, you can make a BUNDLE of CASH.
A mobile home doesn’t count as a real home
Hello Javier, the issue is Arizona had a "deflated Market" for so long due to 2008 and some other factors while businesses continued to move there and areas continued to build. People with low incomes from the Midwest and all over the country flooded Arizona (cheap living, medium wage jobs and low property taxes). Well reality is catching up and the money is moving back into Arizona whether this is caused by political policy from states on the east coast and west coast states like California, professionals relocating and a massive amount of retirees. Arizona is highly desirable, when I was in AZ from 2018 to 2020 I knew this because I was Financial Advisor and saw it first hand, fast forward I am a Mortgage Broker now and 75% of my deals flow from AZ and it definitely is a mix of all the things I mentioned.
100 agree
Buyer's simply don't have to offer anything close to the list price. Imagine if 30 people placed an offer on a home more than 100k less than list price. If the seller(s) is/are serious enough, they would have to sell! You think they would pass on 30 comparable offers?? We simply don't realize how much control we have. It's called market manipulation. Homes simply do not appreciate by 100k in two years! We've gotten caught up in the "herd" mentality. As the buyer, we're a bit at fault because we're still buying homes that are grossly overpriced. We have to wake up and smell the coffee. We have to be wise when making arguably the biggest purchase we'll ever make. It's really that simple!
God Bless!
Plenty of people are sitting it out. Problem is there are more people than seats. 😘
I lived in Columbus, Ohio for about 6 years and it was great. That's a great city. Anyway, I was paying 875/mo for a 1600 sqft 3 bed/2.5 bath in a super great area of the city. I came back down to Phoenix (my hometown) last year and I could barely afford a freaking studio apartment. Something is going to give at some point.
Yes it is your moving back to Ohio when?
H-1B invasions in all areas are driving prices up because demand is exceeding supply.
Phoenix, as with many sunbelt markets, is extremely volatile due to transient inward migration and high investor-driven home purchases. When you have companies purchasing homes and flipping or renting them out, there are consequences on the local market. I believe at this time that Phoenix is in the largest "bubble" of all time. I grew up there, and have no desire to return due to over-inflated home values, congested freeways, scarcity of water, pollution, and 100+ temperatures for 7+ months of the year. All of which adversely affect the quality of life. For me, Phoenix is a hell hole.
Sooo true
So where are you now ?
I left after 35 years-give or take-in the Valley. Mind you I came back to the Phoenix metro over 8 times from 1985 until 2017. Why did I return? Familiarity, affordability, family and friends. Well, the affordability has dried up in a very short period of time; to qualify for the lowest-priced 2 br apartment in the West Valley, you now need to make over $22 an hour. I have seen some of the worst neighborhoods in those years and I shudder to think what it's like for single-income earners. Even with none of the current economic forces being a factor, I would never return for the reasons that you mention and more. Thank God I am here in Florida and I rarely look back...
Find out how many home are unoccupied owned by investors and you will know why the housing market is so crazy! Florida has 1.8 million homes unoccupied not for sale and not rented. Investors are driving up the price to force there profits when they decide to sell.
I sold mortgages back in 2006... we were doing stated doc and option ARMs. In 07 it all fell apart. I'm thinking it's going to fall apart again and prices are going to come crashing down again. My aunt's house appraised for ~450K in 2006, in 2007 that house couldn't sell for much more than 250K.
@@sspsam Yeah. Phoenix area.
It'll fall apart once people start loosing their jobs. I doubt it will be a real estate bubble to burst. It will be something else in the economy to burst that will drag down everything.
Worsening water shortages have changed my mind about wanting to move to Arizona.
I now appreciate Lake Michigan more than ever. Increasing number of stories
coming out lately, regarding declining levels at Lake Mead and the Colorado River.
It's even worse in Nevada. And if Ida known all of this was going to happen from covid. I would have tried to buy me a house pre-covid cuz I have a good job, I went back to that job and now I might not be able to afford a home even though I make really excellent money. I'm not rich I'm middle class and middle-class is poor now in Vegas.
why did you try to buy back then?
Whats about condos?
If some of you can work from home try moving to a cheaper area in northern AZ. Yes its rural but you can buy a home or even buy a home with acres of land. You can even buy land and build what you want on the land.
Show low is 3 1/2 hours from Phoenix, Williams is 45 minutes from Flagstaff, Heber, Heber Overgaard is 45 minutes from Payson AZ. Ash Fork is 20 minutes from Williams. Snowflake is 20 minutes from Show Low. .
There are over 4.5million people in maricopa county
Well I guess there's nothing people can do but build a clay hut in the desert....Damn
how do you do those screen share transitions? streemyard? Great vids!! thx.
Not at the same level but similar down here in Tucson
How will the market be effected,when the water dries up. ?
High demand + low inventory = high prices. Demand will soften but never stop.
Nope. Wealthy people moving in=landlords raising rents. Wealthier people are moving in from places like California, usually people working from home and they're changing the market.
Great video ,even in the Atlanta area we are going thru the same thing I want to buy but it does not make sense to buy ,even the old houses have a huge price and don't make sense to buy if you are looking to refurbished the house ,as of right now the average 4 to 3 bedroom house is going for 350000 to 400000 ,with a 5 percent interest rate ,I can't buy now ,it wouldn't be a smart move
Well done, great video Javier
Great analysis Javier. I appreciate the work that went into this. Nowadays, people have to get creative to buy properties rather than the regular old-fashioned way of getting a regular loan and being able to afford a regular home.
I gave up on the U.S. housing market! I moved to Costa Rica and Panama. I buy beachfront homes, at approximately half the prices in Florida and California.
I live in surprise, Arizona and I am dreaming of buying a home but we can't with the prices 😢
It got insane here the increase within the last year or so is ridiculous you start to loose hope for being a homeowner in Arizona
Thanks for sharing this video!
Even when the quote "cool off period" does come the pricing of homes will not come down. So it comes down to darn if do you and darn if you don't. 🤔
I'm old. My guess is in 2-3 years someone will be making this same video saying homes aren't affordable and looking back to 2022 as being affordable.
I couldn't afford my first house so I bought a dump with another person who was in the same boat with the agreement of getting 2 more roommates. It kind of sucked but it got us both into a house. We fixed up the dump a little, values went up, our income went up and in 18 months I could use that property to help me buy another home on my own...another dump. Repeat. That was in San Jose CA back in 1980.
Today 2 people who can each afford a $350k home can together afford a $600-700k home. Newer homes in the US are gigantic compared to every other country in the world. Two people or even families would have plenty of space. Even getting some more roommates s doable to bring in cash.
Instead people pay huge rents and complain about affordability. Seems crazy to me.
You are 100% correct, confirming as a fellow old person that’s seen this phenomenon play out in other cities throughout my life. Yesterday was the best time, but today is always better than tomorrow when it comes to a fundamentally strong growing housing market
So true.
And do you also have dementia? Can you recall 2008.
@@30H3Sunrise yes I can recall it, clearly you can’t recall it if you’re comparing it to our current situation
Don't worry it will be corrected shortly. Housing going down rates going up. Sell sell sell
I need help to buy a home
The last housing crisis, which was based on oversupply and poor credit standards, has given birth to this crisis of undersupply. It is not inaccurate to say that the first crisis never truly ended, it simply morphed into something new and perhaps worse. America under built for a decade, from 09-19, leaving a deficit of some 4 million housing units. Homebuilders are on overdrive now, despite labor and supply shortages, and maybe able to build approximately one million new homes this year, leaving another three years of "making up" for the past deficit while also needing to make up for the natural population growth ( 350,000 annually I believe). This is a seismic shift in the home market where an entire generation is being left out, while older generations (Gen Z, boomers) continue to build wealth and purchase additional property for rentals. Prices are not going to drop anytime soom. To all the market timers and doomsayers, there isn't going to be a crash; instead every dip in prices will be met with an aggressive round of buying. Phoenix is now out of reach to younger buyers. Look elsewhere I am afraid.
Prices were VERY affordable from 2009-14 or so. And quite affordable from 2014 to the end of 2019. People that failed to buy at that time are now crying a river.
Or we just can't get supplies to build
Our house near lookout mountain appreciated by 60% in less than two years. We definitely won’t afford to buy it now.
Phoenix is No. 1 in the nation in Build-to-Rent neighborhoods, namely Tricon which Blackstone is invested in.
Yeah massive property acquisitions aimed at millennials who want turn key no maintenance
All you need to do is find one of these cracker jack boxes owned by one of these greedy POS companies and MOVE IN! Break the lock, change the lock and have your bank statements, mail and utilities switched to that address. Squat in that property and take it over. At least you will have a little bit of time to save up.
You know why? Big tech people working from home are moving to Arizona and are doing what they did in California cities: raising the cost of living.
Permanent underclass is being solidified. Anyone not a property owner will forever be locked out and forced into wealth draining (more draining) renter lifestyle. My suggestion is to get married, even if you don't necessarily "love" the other person. This is about setting yourself up for retirement and wealth building. The single lifestyle and having a decent standard of living is OVER. You need 2 incomes to have a decent life these days.
damn this hit me in the feels 😖
My house up north has dropped 40k in 3 months.
This is a Nation Wide problem . Its not simply confined to Arizona . Homes are extremely expensive everywhere due to many factors including lack of availability . And its only getting worse .
The case is supported over time as always time in the property not timing of its purchase makes the difference
This is unsustainable. And it is not just Phoenix - I've read about other cities. Denver is getting pricey. Dallas. Florida is notorious. Even Boise Idaho is climbing fast. Portland & Seattle. I recently moved here & am paying $500 more in rent than my last city - and I hate the apartment. I was looking at some listings for small houses that were around 300k (2 bedroom, maybe 1000sq ft inside) and it says "estimated payment" was like 1300 something and I'm thinking why am I paying more than that in rent and not owning. On those real estate sites where they give an estimated payment, are they somewhat accurate or is there something hidden? I was surprised it was so low. I think it calculated on 20% down and they had an amount in for tax & insurance. But those houses were gone in a snap. and now the rates are going up, its going to kill what little affordability there is. We're doomed.
Only complaint, you open with "houses for people just above minimum wage"? (Paraphrased). But this was never a thing. Where would they get the $10,000+ closing costs? A side hustle? Maybe 1% of people at that income could successfully scrape that up. Maybe back in 2007 when the government was pushing banks to push shady loans on people, but that was before your time in the business, and before McDonalds was paying $20/hour. I was making $10/hour back in 1992, and that was $305 a week. That was 3 times the minimum wage, and I was barely able to eat at McDonalds. No, there has never been housing market for people "just above the minimum wage".
I make roughly $33k a year on my job (before taxes) and I paid cash for my home in the summer of 2021. The reason being is I have a lot of assets that don't pay any income so it doesn't reflect on my tax return unless I sell. There are a lot of income poor, asset rich people like me in the world.
@@deadcell1 Dude, you are not the average American though. Stop it!
Ironically; best thing ever re: my long-term fiancee ? She lives in Arrowhead, and I live in Warner Ranch (South Tempe). Our houses are both fairly nice, and we've had them for years. RE: These last couple years ? OMG.... Wowza..... Talk about picking up some equity. Also; I refi'd from a 15-year at 3.125% last June; into a 10-year at a staggering 1.875% (only $1,400 in total costs). Nice...... We have well over $1M in equity between us. Very much worth it re: my moving to Tempe so my kids could go to ASU. Nice !!!!!
I hope prices drop soon. I hate seeing folks that paid 350 in 2018 selling now for 550. 50K per year?!?
Wow, that sucks. What's the property tax look like on 500K?
Excellent presentation. The emerging consensus is that we are in Super Housing Bubble. This bubble will crack with the higher interest rates, deserting investors 20%), poverty index, increase supply and drop incomparable. The 20% drop will be in high-poverty areas and investors dominated buyers. Buyers will migrate out of Phoenix and seek areas with better rates of return. The California migration is coming to an end.
There is no bubble. The growth is driven by real economic factors, not hype or bad mortgages like other historic bubbles. Get in a house by any means necessary, or get priced out and rent for the rest of your life.
Keep drinking bubble koolaid. The inventory in my area is abysmally low. Less than 10 days. What bubble?
@@lalitpandit1510 it’s usually the people that have abandoned all hope that sing about it being bubble as a coping mechanism.
And let me guess, when the bubble breaks you plan on being there with cash to buy up properties for pennies on the dollar? You doomsayers are like a broken record, as if you watched The Big Short too many times. What is funny or sad to me, is that market timers like you preach about the coming crash yet you lacked the basic foresight to purchase property when interest rates were at 2.65 and now are hedging towards five. Some timing. Good luck with your crash.
@@danoconnell2635 Hello Dan, you make some good points. The problem is that you hit a bedrock of real estate statistics and empirical data that supports a collapse of real estate, especially in Western states. I am not a doomsayer and I have ridden the boom to the top and made lots of money. But you fail to realize 75% of Arizonans cannot afford the current prices of housing. The number of new home cancellation are going through the roof and interest rates are driving the high cost of downpayment plus monthly payments. Arizonans are running out of money and real estate is not a good investment in this type of environment. The reality is that other states in Eastern and Midwestern states have a greater rate of return.
I'd suggest people check out the wittmann area! I found some new build communities out there in the low 200s
I don’t understand how you get to the monthly mortgage payment of 2000 for a $400,000 home?
Is that based on a 20% /80k DP?
With the vast majority of our land zones to exclude anything but single family homes, don’t you think that re-legalizing duplexes, triplexes and fourplexes and cottage courts would alleviate the housing crises? We need more housing. To do that we will need to make it easy to build things other than single family homes
Wheres your office?
How much are these crazy high prices fueled by greed. I lived in Phoenix from 1995 to 2015 and it was always an affordable place to live. Where is all this greed coming from? And why? I love you Arizona. But I'm so saddened that all my beautiful Az people are being out priced. I live in Vancouver Washington now and here and Portland the same thing is happening. I can't afford a house here so; I rent with a friend. When is all this greed going to stop?
I knew I could trust this man when I seen that Majoras mask in the background 👀
I agree we have a dysfunctional market. But is there help on the horizon? Rental rates are going down... WHAT? Still way too early, but a glimmer. Thanks for the great content.
Rental rates won't be going down when properties, taxes, insurance, labor and materials is at record highs.
Law in Arizona that if your out of state you need to live in Arizona and show proof in job and rent at least 3 to 5 years in order to buy a house ..couse for us Arizonans that dream is out of reach couse of them out of state people...were are those jobs that pay over 100,000 a year thr governor needs to do something...look there's alote of California people that live 6 or 7 in a home there used to that
good video. thanks
Did you change the name of the channel 😆 I like it
When'd you get a second channel?
Great income is relative ain't it 🤣
Real Estate Taxes, which is about 1% of the last purchase, is also going to be a big part of the monthly cash outlay.
The problem is investors ...400k most of these homes are under 1300 sq .
But I would assume all of those calculations (even the one that accounts for two incomes in a household) are based on a fact that this supposed couple has 20% downpayment and closing cost plus realtor fees saved, plus emergency funds saved for 3 - 6 months. But, how any people really have that amount saved? How are all those buyers even competing with there bids, winning the bid for a higher price than the listed price and still be able to afford it?
I know some people lend money to relatives, get money from their 401K, etc etc, to afford all of those expenses, and still houses are selling like hot bread.
The "american dream" (which is supposed to be a human right, all based on personal responsibility and success, is now a myth!!! Most people that have personal responsibility and work hard, can not afford it.
But everybody would agree (specially most realtors) that when the Real State market is hot, is a sign that the economy is good. The question is: Whose economy? certainly not the economy of the population.
Arizona is in trouble
I see Casa Grande as a really good bargain.
They show the homeless stacking up, and half of them work, iam a widow my husband's check is not enough, for increases out in the street , they say while people continue to purchase homes 3 times the normal amount , they will throw in the towel sooner or later , this rent is impossible in Arizona they should put a cap on rent like no more than 100 , homes to those people will never have equity in their homes , why pay so much with 120 degree temperature s coming no point.
Can't weight for the borders to be open
Have you'all ever heard about a loan to income ratio? It's a real thing! These greedy sellers and over zealous buyers are going to see this market grind to a halt. As long as we are paying wages with inflated dollars...there comes a time very soon in which these over inflated homes will sit.
it's garbage living out here
Thanks for breaking this down! Subbed! Let’s get lunch sometime Im also a newish youtuber in the Phoenix area.
Bring more people in we don’t have resources for.