Real Estate Prices Aren't Coming Down - Dave Ramsey Rant 

I’m in Ohio and the housing market here over the last 7-8 years is unlike anything I’ve ever seen. Homes that were bought for $130K in 2015 are now being sold for $590k. I’m talking about tiny, disgusting, poorly built 950 square foot shit boxes in quite mediocre neighborhoods. Then you’ve got Better, average sized homes in nicer neighborhoods that were $300K+ 10 years ago selling for $750k+ now. Wild times.

My home price has gone down about $100k from its peak. It just depends on the market in your area.

Prices have come down in certain areas and there are far less transactions because of the unaffordability.

I love how Dave never addresses the fact that the supply of houses are being drained by corporate investors and how build-to-rent are forcing ppl away from home ownership.

Been hearing about this crash for like 10 years now. Still waiting

My Wife and I have just decided to not Buy if this is the case, we would rather remain financially stable and not join this craziness by buying at the absolute peak. Our payment if we bought would most likely triple here in CA and is just not worth it

I didn't learn supply and demand until college. I was still counting coins back in 7th grade

Prices absolutely came down. I bought a place at the asking price, instead of $80k over

something has to give, because you can't have the price of homes the way they currently are plus high interest rates. So either home prices start falling or interest rates will have to.

Idaho here. Slower sales, lots of inventory of new apartments and spec homes. We’ve cooled off. Seeing lenders and agents trying to whooo clients, not ignoring them from lack of time to serve. Seeing lots of foreclosures on Zillow too. Pandemic foreclosures and bank owned is up in southern idaho.

My wife and I took advantage of the price spike and it worked in our favor! We bought our house for $240k with $90k down almost two years ago. Interest rate is 3.125%, my house is now worth between $290-309K depending on who you talk to. My lender keeps calling me about trying to refinance at their "special" rate. I told them I know there is NO WAY you can get me a lower rate than what I have now. Oh but don't you want to tap into all that equity without refinancing your current mortgage? CLICK! hung up on those jokers. We're staying here till we die (and might stay a little longer than that!).

First time home buyers are getting screwed!

Prices and values are down, but not totally crashed in my area. My home lost thousands in value last month.

Days on the market is up 90% over the last month in my area. Inventory will naturally rise as more and more houses sit unsold.

Houses are also not selling like Dave said either. A lot of sellers not yet motivated and alot of buyers are looking at the interest rates and saying no way.

Truth is housing prices need to be cut 50% for anyone making 50-70,000 a yr to be able to afford a house anymore. I can't even afford the same house I used to have 20 yr years ago. $250,000 for a home used to be only for rich doctors. Now 250,000-300,000 is average? Thats bullshit. You might as well make the house a million dollars cuz no one gonna be able to afford it.

They are coming down in my area as we speak

Prices have dropped but interest rates have gone up. I can’t see prices ever being as low as they use to be.

Timing the housing market is more complicated than timing the stock market. Which is impossible. There are few "just right" Goldilocks real estate markets...Aside from having over $850k in liquidity, my major challenge is not knowing the best entry and exit strategies.

Great video & very informative comments below!!! Thank you all!

Vancouver WA - median homes are down $40k from a year ago, pending's are down from 90% to 48% pending, price reductions are the order of the day. My home is worth less than a year ago, 490 to 440. Demand is less than supply currently.

Prices have started to level and i see price reductions now.

Dave really needs to get our of his bubble sometime. Real estate prices have cooled

So house prices are going down even though you keep saying they're not? What a mixed message. Someone on my street been trying to sell for over 4 months and it's a fairly nice house. Entry level houses just went down 30k. Can almost buy for 200k again. Inventory seems plentiful.

Demand has been largely curbed due to houses being unaffordable and too risky for investors. Now the other part of equation that needs to be fixed is supply. Once we get supply, it will come down probably more than it ever has before in a relatively short amount of time.

Which is it Dave? Not going down or Price it "correctly"? Love your content but there are a lot of price reductions currently.

Ramsey....you are always right

National housing crisis atm in Australia. We have so many homeless here just because they can’t get a rental or buy a house. People are also not earning enough money to pay for rental prices. This is bad for those earlier generations, they will never be able to buy a house here.

They have dropped over 100k in the last 12 months in the area I’m looking in FL

My sons friend’s parents paid 1.6 million for their house here in Windermere Florida in 2022. They listed for 2.9 million 9 days ago and already pending. Here it’s still nuts.

I like Dave, but of course, he is heavily in real estate, so any realtor will say it's a good time buy sale or anything in their favor but when you walk the streets you get a different feeling a different way of thinking. Economic 101 is basic, supply, and demand, but he's anticipating that almost everyone can afford their mortgage. And we are seeing a building boom in apartments.

We live in the midwest, 45 minutes from any large city, a rural town of about 1500. Prices are coming down bcs nobody is buying them for the overinflated prices they've gone for in the last couple years. Beautiful renovations to older homes, but there's not enough draw out here for housing prices in town for over 150-200k. There's one that's been on the market for the last year, the owner won't bring the price down even tho the front yard view is the gigantic brick wall of the newly added jailhouse to the sheriff/city hall building. Fertile farm land is still going for over 30k an acre around here.

Alert , another home just dropped 90,000 Elkhart county Indiana

The Fed's raised the mortgage interest rates to cool-down the increase in home prices, with the higher rates many people will not be able to afford a house at their current price. It will take time for the trend to become a buyer's market (lower home prices) as demand for housing decreases due to the higher interest rates. How long will it take for this to occur - you guess is as good as mine.

apartments, not homes are being built at a breakneck pace here in N GA, and 2 bedroom prices avg. around $1500 50 miles from Atlanta, and what used homes are sold seem to be going to rentals for upwards of $1800-2000 avg.

"That's not a price." dude gives himself the biggest out ever.

Meanwhile a nice 3 bd house in Knoxville TN (Garwood Cir) after price cut of 33k is listed for 255. 46 days and counting. Dave was obviously referring to Miami, not to his own back yard.

You think prices are going to just keep going up and up? Hmmm 👌. Don’t think so. Continuing to drop in my area. I was wondering where all the crappy houses were? Recently they are popping up. Then it dawned on me about the mortgage forbearance. People have to pay again so they are finding out they can’t afford to.

Not true, prices were raising at an unsustainable rate and likely to go in the opposite direction. There is one more factor that determines prices besides demand and supply, and that is income. In reality prices have been steady since last year accross states and actually decreasing in areas that boomed during the pandemic such as Austin. This is a trend likely to impact many more markets because of the following reasons: Debt to income ratio, which is the highest in history. People cannot make enough to pay regular bills. Inflation, people who purchased when houses were ultra expensive have been barely making it. Not only inflation makes debt to income ratio bad, it has been increasing, which keeps making housing less affordable every day. There is 1.5 trillion dollars in credit card debt, highest amount in history. Most importantly, this debt has been used to cover regular expenses such food and gasoline, which shows at some point home owners will be forced to sell. Auto loans, we have a record 1.3 trillion dollars in auto loans, which is also highest ever in history. Cars are being repossessed at historical records and auctions are getting more and more every day. Student loans, not only at record high ever with about 1.5 trillion dollars but people are about to start making payments (many won't be able to), which adds an average of $400.00 per month, per loan to expenses already unaffordable. Job market, companies are not hiring people they don't need anymore. In addition, companies are starting to decrease starting salary which is the last nail in the coffin. Remote work, more and more companies are forcing employees who were working full-time remote and many are selling because of this. Lastly, people have been banking with their house equity and these loans are also at record high and many don't even have equity to bank at all. I truly believe the housing market is about to change in the next year or two

Sold the house in March 1923. Turned it into silver and gold Now let’s watch and see who’s right.

I bought 10 years ago when my home was less than half of what it is now, and my mortgage rate is 3.5 fixed. Certainly, glad I didn't follow Ramsey's advice then because he would have said to keep renting and save up to buy in cash.

There are too many expensive homes and too little affordable homes. Too much inventory Dave.

House prices went up in orlando and keeps going up. Not sustainable at all. I bought my house last year for 359k, two streets down a small house sold for 472k. Zillow values my house at 480k (its just crazy, atleast in florida)

Lets see what happens when student loan payments come back. I bet Dave wont be singing the same tune.

Everyone in the comments are saying the opposite Dave. Looks like prices are actually coming down, not going up this time around.

They’re down 40% in Indianapolis.

Dave is always too broad when it comes to real estate. For example the prices aren't coming down and it won't come down in my area but about 4 hrs from where I live prices are coming down because construction has exploded in the area. Every week they drop prices. So it varies on location.

Dave, haven't you seen all the RU-vid Real Estate influencers saying we are in real estate Armageddon right now. Lol. Meanwhile here in the real world prices are still high.

We live in Savannah,Ga and they are building homes everywhere and they sell really fast,existing homes same way,some in our neighborhood have sold in a few days,it is amazing to us how fast they go.When you list your house here you better have somewhere to move to!

There’s shadow housing as well. They are not listing houses to increase the fear. But now it’s biting a lot of places in the butt cause of interest rates and credit tightening. Like mentioned..some areas the prices are dropping. Some places it’s the same. In my area, prices are dropping around $5K to $25K. With 80% of Americans saying they are living paycheck to paycheck, credit cards are maxed and all time high, ppl tapping their 401k’s to pay the bills or buy food…everything will fall. Wait till profits drop and the great layoffs begin.

The effects of what interest rates stabilize at over the next 4-6 years is what will heavily impact prices...

You guaranteed that prices will increase every year for five years straight. It has only been one year. The demand is going away with mortgage rates at 7.5% as supply increases, prices will go down.

Wait he said prices won't come down yet the first line says "after 5 months of prices dropping". Lolll

What's your take on farm land? I think people are dumping cash there because it's "safe," but prices are so high that even good yields won't pay interest on a mortgage, let alone create profit within 1-2 lifetimes. Bubble? I want it to be, because I want to add some acres to my farm in the next decade or so.

I sold my house in July and made $50k in profit.

3 minutes of unskippable ads, RU-vid is becoming unwatchable.

Dave missed one option on prices going lower and that's a wave of foreclosures . With the higher prices would people walk away ? Well you need to be upside down with your mortgage and can't afford the payments . If your not you can just sell and move on and for most who have bought 6 months ago they are probably not upside-down . Now you could see more sellers who can't afford their house which could drive prices down leading to a upside down situation leading to foreclosures but with a good gdp and low unemployment it's just difficult to see a true reset anytime soon . I think you could see some change after the majority of baby boomers are gone in maybe 10 to 15 years as those houses come Into the market increasing inventory

The average middle classer has literally been priced out of the market, but prices are still going up? There's a disconnect somewhere

Nobody wants to trade a 2.5% mortgage for a 7.5% mortgage. I don't know if this will cause prices to drop or stay the same but to pretend this isn't a huge factor is crazy. I read posts all the time from people (with money) saying they are trapped in their mortgage now. People won't move unless they absolutely have to. That means demand will come down.

Everyone in my area who is selling is out of luck and just waiting and waiting… there are no buyers. The house prices have come down about 30k since the peak.

I wonder how well this will age

There are a lot of variables in supply and demand Ramsey. When people don't make enough money to afford that will bring the demand down. When investors don't see a profit that will bring down demand and increase supply. When people lose their jobs and cannot make mortgage payments that will increase supply

In 2021 Dave recommended to "sit back and wait the madness to clear out". I'm so glad I didn't listen to him as I have a mortgage with less than 3% interest rate and no PMI as I put down 20%. Surely even at that time I overpaid my house by a good 50k compared of what it was worth in 2019/20 BUT today the same house can be sold ( not doing it) for more than 100k the price I paid. Massachusetts

I don't know. I'm a real estate layman, but I see a crash coming that will make 08 pale in comparison. I see lots of people buying homes they can't afford. Now granted, this crash may be 5 plus years down the road, but I see it coming.

Listen to Melody Wright. She said that based on her research we are about to have a repeat of 08 housing crash.

All the supply is 1 mile from my damn house in Florida.

I think they had been that perception of a house market crash, but in my opinion house prices will go down without crashing. At this point in time is hard for majority of people to afford a house at this prices with this rates, but we will see

Is it the supply of homes or the supply of affordable homes that we are talking about because in my area I see a ton of homes,condos and apartments being built..... I think a lot of people aren't buying homes because average homes are too expensive compared to the average income

Raleigh, North Carolina.. I just sold my home, but since Jan my home price came down $30,000. And I’m in the hottest real estate market, Still made $100K profit.

People are paying almost DOUBLE for houses in NW Tennessee compared to 5 years ago (i.e. what they are actually worth!)

Lol @ Dave quoting the prices have dropped for 5 straight months….then July goes up (like it does EVERY year) and now “I told you so” let’s re-visit this I told you so in December.

Zillow prices have gone up but we know it’s all a scam

July is not a good example because it seasonally ticks up. 2008-2012 had ticks. I do not agree with Dave because market adjustments always happen but I could be wrong and tgis could be an exception.

How many people refinanced to a 30 year based on inflated values and also took out of of that fake equity and now complain about home prices, why cant people just be content, save and do without 70 thousand dollar vehicles

Home prices will fall. It's not a matter of if but when. These prices are out of this stratosphere especially in major cities.

Don't forget about the companies that were bulk buying houses and reselling them at an inflated price. They manipulated the market and priced a lot of people from being a home owner. Corporate Greed.

Dave is missing the fact that people will be forced to sell, whether that be due to increases in mortgage payment due to taxes, insurance. Or people losing their jobs due to layoffs

Rent and house prices dropping in CA

It's summer home prices always go up during summer even through 2009-2012. Let's see how well this video ages

They have come down in many markets. Still unaffordable. An hour and a half from Nashville, rundown, overgrown 1940s house, needs total restoration, 1.2 acres, 1.2 million. On the market for over 200 days. Tell me that isn't coming down....it dropped 200k since listing. Florida, still inflated with a stagnant market. Human warehouses going up everywhere to pack the suckers in.

I don’t understand how real estate prices are able to keep going up. You’d think if everyone is priced out of a home, prices would have to come down.

Location is key. Like always.

I love knowing Jade shops at the same store Joe Dirt does.

I bought small home outside of Houston in late 2015 ,my how have things have changed my little house value skyrocketed. I bought it at 95k they paid for my closing costs,washer,dryer refrigerator and stove included. Those were the days all i spent was 4k out of pocket for downpayment/inspection. As a simple dialysis tech 18 dollars an hour never worked overtime hours still traveled and did concerts and all that ,my only regret is not buying another property they had cheap condos too for under 55k now cars are that price yikes i wish others i known would of bought now they are just stuck trying to time the market. Everything can change though but we dont know. Wish American dreaam of 2015 -2019 was dtill possible today for others.

I feel dramatic price drop will require a sharp inventory increase due to some sort of unpredicted event. What would such an event be? Massive layoffs, large amount of investors existing out? Anything else?

It depends on thee market and area. Dave is NOT correct on this. Alot of houses have come down at least 15 to20 thousand in my area. I respect Dave but this an unfounded rant!

Boomers think real estate only goes up because it's all they've known in their lifetime.

Housing is still a supply issue that's been entirely separate from consumer demand. I don't know why this is so difficult to understand for folks. Dave's been pretty consistent with that messaging and that macro data has been in line with this too (instead of some of these comments talking about their one area seeing a few pricing reductions).

For more than a decade interest rates were artificially low and prices went up. Now rates are high prices must come down one or the other has to happen. Proces will come down of rates do not come down.

Damn I'm glad I bought mine for 220k 1 acre land 5 beeedrooms 3 bathrooms new house now they selling over 600k

This video is a game changer, I have been looking for the best way to increase my income and start up my retirement, but I really do not know much about investments and trading stocks. I keep postponing every single day that passes, but I want to begin now. How should I start? What do I need to know?

What market is he talking about, it dropped 2.5 in August in my market and 12% from a year ago.

The beauty of real estate is that prices can never decline....until they do.

they're literally coming down right now

The price of luxury homes has come down but starter homes haven't been built in my area for probably 20-30 years. No profit for the builders.

Inventory is ticking up in many markets again. Dave believes that demand is unlimited, but real housing (rent and owned) demand has stabilized based on flatlined and declining rents. Interest rates will stay high, people in many markets simply can't afford to buy a house, waiting, wanting or otherwise. No bank will give the average person money to buy the average house in a pandemic boom town. Investors have left the market too, buying to rent with a negative cap rate is insane, especially when you have 5.5% t bills available. Prices in Phoenix, Nashville, Tampa, Las Vegas and many other cities will come down over 2024. No cap.

They have come down in Texas, Austin has the biggest price drop in the nation, prices will come down. BS on demand, it drops when interest rates go up.

so if prices continue to climb and outpace wage growth, how do you expect people to follow your advice of getting a 15 year mortgage with the payment being less than 25% of your take home pay???

There's a weird thing happening in my area. The few houses that appear at prices below $200,000 - some at under $150,000, some under $100,000 - look like a deal from the outside - older but in okay shape, but when you look at pictures of the interior, they've been gutted. They have an okay kitchen and an iffy but functional bathroom, but a lot of the other rooms have been taken out to the studs, so anyone buying the thing would have to put a fortune into the thing just to get the thing into decent shape.

Prices already are coming down in SoCal. Look it up you'll see. Look up Houston, Florida. C'mon Dave get real 🙄🙄