Home Buyers are on Strike | Recession is HERE
ฝัง
- เผยแพร่เมื่อ 2 ต.ค. 2024
- Home Buyers are on Strike | Recession is HERE
Commercial Loan Application Link: drive.google.c...
Please email to: Travis@RealEstateMindset.Org
ENROLL FREE: Value packed homebuyers course: real-estate-mi...
Discord LINK: / discord
/ travisremindset
Subdivision Analysis Form:
drive.google.c...
For correspondence please email me at: Travis@RealEstateMindset.Org
FREE Helpful Links:
1. How Much Interest Really Cost Calculator
www.consumerfi...
2. How Much Can You Afford Calculator
www.calculator...
3. Debt to Income Ratio Calculator
www.calculator...
4. Amortization Calculator
www.calculator...
5. FHA Loan Calculator
www.calculator...
6. PMI Calculator
www.creditkarm...
Data Source:
#1
#HousingMarket #HousingMarketCrash #MortgageRates
Mailing Address:
2261 Northpark Drive #2118
Kingwood, TX 77339
DISCLAIMER: This video content is intended only for informational, educational, and entertainment purposes. Neither Real Estate Mindset or Travis Spencer are registered financial advisors. Your use of Real Estate Mindset's TH-cam channel and your reliance on any information on the channel is solely at your own risk. Moreover, the use of the Internet (including, but not limited to, TH-cam, E-Mail, and Instagram) for communications with Real Estate Mindset does not establish a formal business relationship.
Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.
I advise you to invest in stocks to balance out your real estate, Even the worst recessions offer wonderful buying opportunities in the markets if you're cautious. Volatility can also result in excellent short-term buy and sell opportunities. This is not financial advice, but buy now because cash is definitely not king right now!
Soon, cheap homes won't be cheap anymore because prices today will look like dips tomorrow. I think inflation will cause panic until the Fed tightens its grip even more. You can't just pull the band-aid Off half way. Booms and busts are the ups and downs of the economy, and they will affect any investments. If you are at a crossroads or need honest advice on the best steps to take right now, it is best to get counsel from a financial expert.
How can I participate in this? I sincerely aspire to establish a secure financlal future and am eager to participate. Who is the driving force behind your success?
Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
7 times your wages to buy a home now with two incomes in the 70s it was 2 times income on one income, so now it’s 14 times income what could go wrong
Most people are too unaware of this situation to realize what’s happened.
We have a lot more people in the US now from all over the world that buy US homes now competivelly than in the 70's.
When people were paying 100k+ over asking for a 500k home that's worth only 250k I tried telling everyone.... this will end badly, I don't care what your interest rate is!
💯💯💯
Yeah.. I'm currently in the market to buy and it pains me to see that anything I'm interested in are north of 800k and their prices just few years ago were 3-400k. There's absolutely no way I'm paying that much more... but am not quite sure if it'll reach the level it was in few years ago ever even after the correction.
I agree 💯 percent!!
I got the golden handcuffs on only because what I pay in property taxes. $300.00 a year.. If I remove this manufactured home and put a new one on it. My new assessment will be over $3000.00. I will be ahead if I just remodel it because the tax authority does not know what I did inside.
Yep, the biggest takeaway is that even with 19% interest rates in the 1970s, home prices were only 2.5x the median income. Today, the same median home price sold is 6.5-7x the median income, which is nearly 45% worse than the 2007 bubble peak of 4.9x the median income. That's so massive it's hard to fathom. 2007 was the least sustainable market in history until 2021 hit. What we have today makes the 2007 housing market look pretty phenomenally healthy.
What's even funnier is people (mainly sellers) thought it's justified to raise prices 2x 3x 4x without any logical explanation other than because others are selling these prices on the market close to 100s of days... I don't mean to hate, I'm a property owner, too. But I ain't so greedy as to raise prices 4x the original value in just 3 years tho. I call these people "$tup!d greedy genius"
So, landlords win?
Buddy, sellers will always raise their price if buyer demand is high. That's not greed, that's just basic economics. Low supply, high demand, cheap money (low fed rates), corporations snatching up inventory and out bidding regular consumers, etc. Sellers just be sellers, not their fault. The problem goes deeper.
@@issenvan1050 What should win is consumer pockets and account balances. Don't spend thousands more on a trash home to "own" it. Get a safe and affordable shelter over your head. If you want to invest, put your delta into the markets.
@@matthewphillips5483 I put my research & balls, & capital into the markets. Is that what you mean by “delta?” 😎
Private equity firms buying thousands of homes from national builders at 60-70cents on dollar. Why aren't these reported in sales price data
Can you link your source so I can report it?
Publish the address of the homes, the address of the leader of the equity groups and then act.
How much can they rent a pile of ashes for ?
@@shanerogers9386 They will get paid out by insurance for 1) all rent that was missed 2) a brand new built house
Agreed
1970-80’s
Houses were 1-2 years of median gross income, now it’s 5-10 years of the same income
But there weren't TRILLIONS of dollars floating around back then. Were there? Huh?
Why do people ignore HYPERINFLATION?
This is NOT THE 70's.
I’m seeing Zillow commercials to buy a home together with your friends. Sure … I mean, what could happen?
Yeah, that has never resulted in a friendship falling apart... 😂
Honesty, seeing through the code in the matrix.....That statement just smells of desperation from a used house salesman.
Better buy now - rates might go up! Better buy now - just refi when rates go down! - Realturds everywhere
Yeah and then they get stuck with house with high interest cause houses drop.
At the very least if you buy a house now make sure that you have a loan that qualifies to be recast....not refinanced..
I'm glad I bought in 2020 every one was saying don't buy prices will drop lol here we are 2024 prices have doubled along with interest rates 🤣
My offer got denied! Put in 6 offers this year. All rejected! Going on strike for the rest of the year. But staying preapproved and building my purchasing power.
You’re blessed that all your offers were turned down six months from now you’re likely to buy a better property for about 30 to 50% less than you would’ve paid… That’s my guess
This is a smart buyer
Travis over on the Economic Ninja showed this afternoon that FRED is manipulating their RE Charts. He pulled up charts from last month and compared to the charts they have up this week. There's a big drop last month and poof the drop vanishes in this weeks chart. Don't worry we'll hide the cratering market from the masses.
Most government macroeconomic data gets revised multiple times and always has. I don't know anything about the particular RE time series you're looking at, but revisions themselves in either direction are not evidence of wrongdoing... they're the norm.
Drop the price to 350k with a 3.5 interest and ill sign
I have zero sympathy for people buying homes they can't afford. Do your research and think critically. If I live inside of my means, you can too.
Not seeing that at all in El Dorado Hills, CA. Market just getting even more tilted toward sellers. Houses sell immediately.
The housing market isn't a stand-alone entity in the economy. It's actually right on par with the rest of the economy. Most buyers in this market are institutional investors. Home ownership has been out of reach for a majority of Americans since the virus. They were able to afford it when free money was going out. Now, they are being evicted.
since the "virus" - fixed it for ya
@@Nikotromus Easy Niko. I'm fresh off a ban😂
2018 would’ve been the ideal time for me to buy, but the idea to do so wasn’t on my radar until late 2019. And we all know what happened shortly after that. 😉😡 You live and learn. Being patient for the next market shift a la 2008-11, or even late 1970s-early 80s with the way the economy is currently going.
Patience a word most have no respect for
Buying a house isn’t even on my mind anymore
Best time to buy, is now. NOT !!!
😂
I say. Buy buy buy.. buy sheep. Offer $50k over asking. Do it 😂 !!!
😂😂😂 love the sarcasm
@@kimtruesdale712 huh!!!?
I’m being serious!!!
Lmao
My friend is a realtor and he has sold 2 houses from the beginning of this year.
And He’s doing better than 80% of the agents out there
And there are practically more RE agents than there is inventory.
My local agent has sold over 20 homes so far this year. So the agent who has only sold 2 needs to geddy up.
I ran into a realtor friend a few days ago, and asked her what she had been doing.She laughed and said, “Not selling any houses. That’s for sure.”
@@dan-qe1tb , everyone is a millionaire on the internet. Funny that.
Idk if strike is the right term here. People are poor af
It is like saying unemployed people are on strike from working!
Americans are so impatient. They can’t understand the cycles of real estate. I’ve watched it from the REO side for 23 years.
Second half of 2022 was also the start of the new bull market and it is continuing. The bearish talk isn't working. There are new millionaires made everyday the stock market goes up to buy up inventory. Rents are starting to go up so will home prices.
Rents are going down where I'm at. Not sure where you are.
It is a point people realized that renting in current manipulated overpriced housing market is much better for mental and financial health. No let month of ownership trap our life.
From what I see, at least one of two things is pretty much guaranteed to happen in the foreseeable future. Either we will start seeing inventory rise because more homes will enter the market thereby lowering prices or foreclosures will begin to surge, or both.
Both
State tax revenue collected tells the story of the economy!🎯
Did Japan liquidate 63 billion dollars of bonds in the 70's?
I don't think so.
Hyperinflation doesn't allow prices to "drop".
We don't have hyperinflation. Read up on the Weimar Republic for what hyperinflation actually means. Or a more recent example is Zimbabwe.
@@matthewphillips5483 We don't have it yet. But it's on the way. Read up on Weimar Republic for how hyperinflation actually happened. Or a more recent example is Zimbabwe.
Zillow estimate on my house was $167,200 2/3 weeks ago then jumped to $222,000 and now it's $227,200.
Thank you for sharing this video because we are at the beginning of a housing cr crash.
Beginning? They were saying the same thing 4 years ago. Im still waiting.
Get real estate advice from someone that rents.
Wait until the AirBnB investors start trying to unloading their properties and the tired or hurting rental property landlords decide to unload their properties. It's going to be a potential blood bath.
Haven't they been saying that for the last 4 years? Wait until ... and this or that is going to happen. All I can say is Im still waiting.
🎉🎉🎉 THANK YOU TRAVIS for covering this topic. I find it very sad for those people you mentioned that are stuck in overpriced homes because they trusted their realtors 😢.
We’re in a ridiculous situation when it comes to Buying a home for you and your families.
But I myself am getting ready to get a hold of some great opportunities.
Keep on filming and I’ll keep on watching. Thank you Brother Travis, Carlos
People need houses at the end of the day even if they are overpriced ,population has multiplied and there is less houses on the market unfortunately prices wont crash really nothing is gonna change prices will probably come down a small amount 3-5percent at most over a few years and that is stretching
That's exactly what happens. Every time we get to this point. Sellers are on the sidelines waiting for interest rates to go down so they can put their home on the market which they've been waiting to do for 3 years. Unfortunately the economy has been moving south and large numbers of people have been getting laid off or having number of hours cut back which has caused them to get autos repossessed to max out and default on credit cards and student loans and generally to lose the ability to qualify for a mortgage. Once those sellers all come to the market at the same time because of a change in interest rates they realize the remaining buyer pool is way smaller and if they want to sell they have got to cut prices faster than the neighbor. They will quickly blow through all that supposed equity just to try to get out before prices fall further and avoid having to bring cash to the closing. People ask why you have such a negative prediction but it's actually just repeating factually what took place the last time and what is clearly going to happen again this time. Do your best to keep your fingers out of the mechanism Travis
I’m a tech guy in Utah making over 100k a year. We found a good deal on a rental and are saving money but we’ve been wanting to move for years and are still not at a point where I would consider this market affordable. I am seeing some places for sale in the 300-325k zone but not many in my area. We need to move to a rural area to get that. It’s just ridiculous. I’m having to pass up a beautiful piece of land that has a great location for me and several acres, but because it’s 285k it’s just too much right now. And half my friends who bought a couple years ago are sitting in 500-600k homes and are comfortable.
Unless something amazing happens, it's over for home ownership among average people. If you didn't secure a place for cash (no mortgage) or historic low rates prior to '22, you're all but done now. American Dream is DOA.
That's been the plan. Our politicians have allowed it.
Yup. Problem is people think America will always be the same. The UK was a world power once too but look at the old dilapidated townhomes the upper middle class lives in there. Same thing with Germany, unless you're a business owner or CEO, you don't own a house with four independent walls and a yard. This isnt a housing crash, this is America being demoted from world power because it couldnt protect its world reserve currency status. Happened to Great Britain, happened to Rome, now it's our turn.
I would never buy a dog of a house that sits on the market and requires multiple price reductions to sell.
No one wants the dog don't wind up being a bag holder.
BUY A PANTY DROPPER! Everyone wants the pretty one.
how you making any money selling homes. I had to hold off with my current house. it's bad guy. no one is even repairing there homes Home depot and lowes are dead,
Bro. You're literally buying a house right now LOL
I am not but if I found a great deal I would.
He is "literally" in Texas which is crashing like the Titanic. If Northern CA was like them, I would have already bought. He is showing incredible patience.
@@realestatemindset You put in two offers.. There is no way you believe when it becomes easier to buy, that alllll of thee people sidelined aren't going to jump in and make things 1) more competitive 2) higher priced. Things have fallen pretty far already, this is the time before the echo bubble. I know you know this.
@@matthewphillips5483 Yeah, you and everyone else. The desirable areas like northern CA are much more sticky. There are people waiting in line with bags and bags of cash. 90% of the people I know want to buy a house. These aren't cars, land can't be pumped out of a factory. When the market becomes easier for buyers, it's going to be bad news.
@@matthewphillips5483I’m in San Diego and I already know 6 military families looking to buy. Right now they’re just waiting and saving. Hoping for rates to come down a little bit. That’s lot of buyers for me to know on extremely low inventory market
Those numbers are also not taking into account all the corporations that are buying homes. Many areas are seeing 2 out 3 homes being bought by investors and turned into rentals or just sitting vacant.
Whatever you do dont buy a home in Florida. They are priced to high, but theres a real problem with homeowners insurance. If you can get it?
Florida is going to be a bloodbath.
Absolutely Bonkers! Thank you Travis.
Not trying to troll, but I feel like the video quality should be better, not the content, that's great, but the image quality. The 1080p resolution looks like 480p or a bad 720p.
We are still moving a lot of inventory in the San Antonio, New Braunfels, Seguin, San Marcus, South Austin and all around. Yes it’s much slower than during covid of course however homes are still moving. Developers are still buying land and moving forward opening several communities; privately held builders and corporate builders.
Builders offering great incentives. 4.99 fixed rates, paying closing costs, and heavily discounted homes. Right now, buying from a builder is the only way to go. It’s the resale market that’s in trouble not the builders. At least that’s what I’m seeing in my area.
Also in the Houston market, any opinion on master planned communities in Cypress? Haven’t really seen much prices decreases in this area but it’s all new construction, so hard to tell. All the best!
@@Elver_Gaso what source is it from, maybe I can google it
10 million more aspiring inhabitants coming across the border might solve the housing crisis? ! This country NEEDS Joke Bribe'n ! 'Four more years, pause'.
I worked residential housing in 1978-80. I barely servived.
16% interest rates.
It is a heavily censored Greater Depression
There's slight twist to this. What's keeping CA housing price up inspite of the extreme unaffordability is that in addition to China, just about every country is in on diverting their investment to US because it's the only growing market in the world. And due to CA being ultra unaffordable, they are spilling over to states like TX and others. Not sure how much of play this will have with eventual correction...
Recession will be here after the 2-yr. & the 10-yr. un-invert!
Nah man/woman it’s a recession now. Now.
@@gustavis85 No, it’s not. GDP now was at 3.1% a few days ago. Do you know what “recession” means? We are getting there, though.
Home prices must stay artificially high to justify the fleecing of school HOA property insurance dollars... I pay 33 a day all bills paid.
The sad thing here is, after 4 years of this now - on the sidelines : I’ve put my families life completely
On hold waiting for some miracle correction back to reality pricing. We live in a truly shitty time.
Home buyers aren’t on strike, they simply cannot afford to buy homes at current prices. The combination of over priced homes and the currently higher interest rates has simply pushed prices beyond what many can afford. This is a terrible situation. I hope the prospective buyers now realize that elections really do matter.
As the economy continues to make a change people who used to live in a house valued at $800,000 are moving down to houses that currently sell for 2 year old houses at $500,000.
60% of stock market companies are in trouble but it is being kept up high by the big companies like Nvidia, Microsoft,Aple.
Omg. It's worse than the 1970's? Buyers are on strike? Haha. Dogs and cats living together. Mass hysteria.
Ive never seen anything like this in my very soon to be 66 years. People paying 200k an up more for very same house then just a few years sgo. Highway robbery to the sad indeed degree...
Here is the thing if im going to pay 3,500 a month on rent im going to buy and pay 3,500 on my mortgage at least im not throwing my money out the window, also all the homes that droped in 2008 went back up and even higher, same with cars i rather buy than lease
Empty houses in Maine next door to inflated priced house next door. What gives?
Some home buyers are on strike, not by choice, but because they simply don’t qualify under today’s prices and rates.
It's simple, if you want to build wealth, you buy appreciating assets. Period. High interest? High Price? Who cares?
Mortgage = Build Wealth for yourself | Renting = Build wealth for someone else.
Choose your level of Hard.
It's simple, if you want to build wealth, you buy low and sell high. Not buying high and sell low. :D
@mathewphillips5483 Yes sir!! See, you get it. Peaked in 2022, 2 year pullback, we are at the low right now. Watch what happens when the interest rate gets cut a quarter of a point (0.25%) this year. bye-bye inventory and cya later home prices.
@@crimson.source 0.25% (a savings of ~$50 a month) decrease in rates will cause people to flood the market???
Then why aren’t people flooding new construction with a fixed rate of 5% or lower? That’s a whole 2.00% lower than current rates and it still isn’t working.
@kurplode I was incorrect with 200-300. On medium home price, it's actually just over $100/month. We were both wrong. Smart money knows, saving money is saving money. People who barely can get in, that savings per month is big. I guess one just needs to ask oneself, what is a worse future: Not buying now and prices go even higher and stay higher permanently, or buying now when prices seem high and riding the wave up (Just keep in mind that prices peak, come down anywhere from 10-30%, then rise back up even higher than previous peak). This happens every-single-time. Being a homeowner opens up opportunities that are not available to renters.
@@crimson.source I'm not going to be FOMO'd into buying until it makes sense to me. I have 3 retirement accounts so I'm not afraid of rent. I currently rent a 3/2 SFH in a good area for less than a 2/1 condo in a bad area. Why take the rundown condo just to buy something? It makes no sense. I'll save the delta of total housing payment - rent and place it into index funds.
Based on the data, there will never be a good time to buy a home. If there is a good time, there won’t be any homes available to buy. Bonkers!!!!
It's going to be a disaster in this overpriced national market, I think Florida and Texas are gonna get it the worst with the insurance and hoa increases and the substantial hurricane threats pretty much sealing the deal to sell.
Housing market is a lot worse than 2008. On 2008 we could aford to buy a home and inflation was not high.
So many more houses for sale .
I think you are somewhat right, but the thing is house prices in the 70s didn't really go down due to inflation. This is inflation depression and not 08/09.
The word your looking for is stagflation
I don’t think we are in a recession, this is still good times. If anyone thinks this is a recession, I imagine they have a rude awakening ahead of them.
How can you warn people from buying a home while in the same sentence say it will take years for the market to correct 🤯
Where I am realtors think he garbage tweeker house worth 225k? Really? Who has cash to buy that?
I have no sympathy for recent buyers. They are the ones who bid prices up to these stupid levels.
Bonkers and agreed that spending out of control
BONKERS!
Why dont they do an adjusted for population like how they do seasonal adjuatments?
Only the wealthiest gov controlling corporations will buy.
Everything is wrong. Prices are keep going up
Verbal offers? That's obvious desperate times.
Bonkers
Im so glad my home is paid for. Live in midwest. So far insurance isnt bad, property taxes went up 100 dollars a year this time.
17:08 @realestatemindset are you TRYING to say 10% reduction here, why are you calling it equity? Why would it list at a price if its worth more?
people that are not real estate agents and HAVE NO DESIRE to be definitely don't want to have to speak the jargon, just please be clear. I love the channel btw
Yes, I vote for Lance to be on your show... thanks
Hold the line !
You are on it with the videos!! Great job!
So, landlords win?
Whoever provides value to consumers will win. If that is home builders then so be it. If it's landlords, so be it.
Flood of inventory and probably 10% of interest rate in while the prices are a little lower.
cazey bonkers 😊
In reference to the end of your video, what filters are you putting in the MLS to see Properties that have wedge? I’m coming from Dallas Fort Worth.
Size and price per sqft
@@realestatemindset thank you! what price/sqft is a good deal for people? I’m guessing $100-150/sqft but not sure.
10 years!!?? This channel has always given us hope. I am 56 and my husband is 66. We had to sell our home for personal reasons. We live in Knoxville TN. Now… we can’t buy due to prices of house. The only way we can survive on social security is to have a house paid off. We are on the sidelines renting. We can’t afford this rent once my husband retires and we were lucky to find this place. 10 years…. We will be dead by then. I can’t watch TH-cam anymore. It’s too depressing.
I hope someone wins
We are at 3.6 months inventory as a nation which is a relatively balanced. Inventory is rising due to a decline in buyer demand based around affordability and interest rates we are much closer to the pre-Covid levels of 2019 then we are to 1978. Buyers who are obtaining seller credits to discount or interest rates are finding affordability and or still buying homes. People are buying homes just not at the piece that we have been at. A little bit of a slide and interest rates in the fall or 2025 will create a lot more bio activity although the price points are much higher and the difficulty of affording a home is definitely getting out of reach for the average Joe making under 100 K. Great time to buy to get a home Vs rates at 5.99 and compete with 10 others for the same home in a year
There are still bidding wars in the boston area because there are so many young couples and so few homes. Last weekend an open house in my neighborhood attracted probably forty couples all the same young newly married's house was One million dollars it's sold on monday.
And Buyer Agent Commission disappears in mls in two months??! So no buyer traffic at all
Bonkers!! I will listen and follow Uncle Dave’s advice to buy buy buy!! 😱
You are absolutely right, Travis. Try taking into account the house supplies prices so inflated and housing prices sre still going down.
I agree
Thank you for all the information Travis!❤️
Want house?
Move from away from usa.
Is there another option?
Move to Detroit?
Dang lol Zuber hurt you? 😂
Everything is punishment in the name of correction
Yup, we the people have power to stop things. Just say NO to buy insane inflated house with high interest rate. My daughter who is in college has been boycotting buying Starbucks more than a year. I see the company is suffering. Even the small people like us can affect economy.
that’s what I am doing. I am a cash buyer and offered 300,000 cash on a 350,000 offer and they didn’t take it. Greed.
Bonkers!
Thank you Travis! 👍🔥