People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Sure I'm not alone in my chain of thoughts.
Well i think, home prices will need to fall by at least 40% before the market normalizes. If you do not know whether to buy a house or not, it is best you seek guidance from a well-experienced advisor for proper portfolio allocation. So far, that’s how I’ve stayed afloat over 5 years now, amassing nearly $1m in return on investments.
this is quite huge! what have you invested in ? much more info needed please ...I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
Finding financial advisors like Annette Marie Holt who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
I’m a new dad, I moved to the Bay Area a few years ago and I’m thinking of purchasing a single family home, but with real estate prices currently through the roof, is it still a good idea to buy a home or should I invest in stocks for now and just wait for a housing market correction? I heard Nvidia and AMD are strong buys.
Certain Ai companies are rumoured to be overvalued and might cause a market correction, I’d suggest you go with a managed portfolio, but even those don’t perform so well, so it’s best you reach out to a proper fiduciary to guide you, that’s what works for my spouse and I.
When ‘Carol Vivian Constable’ is trading, there's no nonsense and no excuses. She wins the trade and you win. Take the loss, I promise she'll take one with you.
You rent a shelf in a glorified Walmart dude, move out into the country and pay zero property taxes. I highly doubt you'd volunteer to fix potholes and risk electrocution working powerlines and crawling through 💩filled sewers. Cheap is what you are sir.
@@phoenix-rising-86 Local property taxes mostly go the public school system. I'm not against all taxes, just property taxes. I find income taxes much more fair.
Most home owners don't have a mortgage and many home buyers don't need finance as far as I am aware. I may be wrong. If I am correct, then the cash rate has less effect than the MSM suggests on house prices & the cash rate has less effect on house prices too.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with *Leah* *Foster* *Alderman* for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Back in the day, when I purchased my first home to live-in; that was Sydney in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
@BaileyJames I think House prices could go up too. But because of the Flu about 5 years the world has changed. Nobodies buys from that market and Saudis don't have the petrodollar dollar anymore. Same because of the Ukr**ne too, so will people from R**Sia be able to launder their money in the US anymore I don't know. I think Housing market won't go down like the 2008 crash, but surely there will be less foreign buyers. Which could suppress the rate of house price increases. But I just remembered BlackRock lol, so houses will probably go up anyway.
Wife and I (both younger millennials) bought an apartment in Brooklyn NY in 2020 for 565k with a 10% down payment locked in a 20 year fixed 2.625%. Needless to say we aren’t leaving until less we buy a new place in all cash. Most people with good rates aren’t going anywhere.
@@parkerbohnn that’s laughable advice in 2024…luckily I didn’t have a father who would give such poor advice. We have the cash to pay for the apartment but why would I lock up liquid assets into something that won’t appreciate in value at a higher/faster rate than the stock market? I’ve already made far more than the amount of interest I’d have to pay on the 20 year mortgage and it’s been only five years in January. People who don’t understand that the job of money is to make more money are the people who would “pay a house off in cash…”
We also have an extra 25 million people in the country. Even if they can't afford to buy they are renting pushing rent prices up. Companies are now buying more houses to rent to them causing the price of homes to go up.
Corporations and hedge funds should never be allowed in our country to buy or own single family housing also that includes private independent parties/ people who do Real Estate portfolios hoarding houses, they should be taxed out of the ears to where it's not financially logical to keep all these houses that they buy and hoard for greed, if not ban it all together. That was like when we were selling our house in Utah we had some people like that came and look at our house and farm, they were disgusting people regarding how they felt superior and acted it 🙄. It was a couple with their baby and they were just utter snobs and when we asked if they wanted to farm or what was their plans to raise what livestock, they looked at us like we were nuts and instead they said " god no, this is for maximus's (their baby) Real Estate portfolio".. the baby is only 4 months old and his real-estate portfolio has 30+ houses in it... needless to say we happily kicked them out the front door even though they wanted to buy the house for the price we wanted, we instead sold to our neighbor who enjoys using the home+ farm for her and her family.
The market is 100% going to crash, it won't be like it was in 2008 but the path we are on is simply unsustainable with the big corps buying housing and leaving them sitting empty at ridiculous prices. We have literally been through this exact same thing before, and guess what, the market experienced a harsh correction.
Id argue itll be worse than it was in 2008. We never fully recovered from that disaster and things are easily much much worse now. Such is the nature of capitalism
@@Phoenixguy357 I dont think it will be worse, but it definitely isn't going to be good either just because EVERYTHING is more expensive by so much compared to 2008. Sure housing going down to 3-4% is great but the rest of the economy is still so jacked people still won't have the mobility.
@@cashandraven2369 From their own website: BlackRock is not buying individual houses in the U.S. American Homes for Rent owns 60K, or 0.07% of 82M. BR owns 7% of AHR which gives 0.005%.
I dunno, someone tried to approve me for a $500k loan ... which I in no way can afford. Tried to convince me to liquidate my 401k for it. Some people are going to listen to these folks.
@@chamonglee Yes. I know better. However the person said I could afford thr $500k loan (which I can't). There are people who are going to listen when they tell them that whether or not the evidence actually supports that. Realistically I could probably afford $200k, but they're willing to approve me for more than twice that. That's a problem.
Well they only lend out up to 45-55% of your income. That’s been the norm for a long time now. If lenders made your max 20%, hardly any one would be able to buy a home. So they allowed you to go up that high. Whether you want to or not, that’s your own choice and shouldn’t be the lender’s fault. It’s like going to McDonald’s and ordering a meal and then saying they should’ve told you not to or that you look like someone who’s better off ordering the salad.
I’m one of those millennials who bought a house in 2022 We got lucky to lock in at 6.3% and do a 3.5 % down payment. We didn’t overextend but the equity is at a stand still and we just had a baby causing us to just be in the line of comfortable and stretching our finances. Rent in our area is atrocious and constantly going up each year hopefully we can sell in 10 years in a better market
@@jayk3551 it’s a starter home not a forever home, even if we move up into a large home with a higher interest rate we’d be able to put a much higher down payment and potentially cut our mortgage down about 1,000 dollars. Renting to tenants isn’t a head ache we want to take on. No one talks about the bad situations that happen, my parents had family friends they knew for years destroy a home that they paid very little rent for. They just didn’t care about the home and eventually had to sell it a couple hundred thousand less than it’s worth.
I bought a house in 04 and had no equity for 10-12 years. That house is now worth tripple what I paid. Unfortunately I sold it too soon or didn't re buy soon enough so now I rent.
@@jessicabixler1658 that’s tough! I hope you don’t blame yourself for selling sooner than later, the market is impossible to predict. I had an agent try to give me the best time to buy, and they were just flat out wrong.
Gf and I got a place same year/interest. Put more down for a more comfortable monthly. Unfortunate I was laid off last year. It just sucks because it finally felt like everything in life was going well and now we’re most likely going to have to move. Have no idea if we’re going to sell or rent it, but I still haven’t found a job yet.
@@Autotad I know how you feel me and my wife both got laid off literally 2 years before we got our house, we had to dig deep to find new jobs but we are in a better place now. I hope you find a better opportunity than what you had before! Don’t give up!
The housing market probably isn't going anywhere, but consumer debt, inflation and the national debt are conspiring to create a whole bunch of misery for the middle class. Unless we are very vocal, it will be the same bailouts for the finance industry and everyone else can just accept what they get.
That’s exactly my plan, stay in this starter for about 6-8 years and I’m looking in a desirable coastal town - begin renting it out and then when we are more established we get our dream home. I’d like to get a point where I live in a home for 4-5 years and then rent them out over time. A small house is all I need right now, so I can continue to build.
I have heard people saying dont buy the market is gonna crash for the past 6 years lol tbh If rates stay the same or go up. I can see a 10-15% correction in the housing market but nothing major like 2008. Honestly a 10-15% correction I think would be super healthy for the housing market
I'm in Michigan, and the housing market here over the past 7-8 years has been unprecedented. Houses that were purchased for $130K in 2015 are now going for $590K. These are tiny, poorly constructed 950-square-foot homes in quiet, mediocre neighborhoods. Meanwhile, nicer, average-sized homes in better neighborhoods that were over $300K a decade ago are now selling for $750K+. It's wild.
A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advice but get buying, cash isn’t king at all in this time!
@@ericgrantl I've been in touch with a financial advisor ever since I started my business. Knowing today's culture The challenge is knowing when to purchase or sell when investing in trending stocks, which is pretty simple. On my portfolio, which has grown over $900k in a little over a year, my adviser chooses entry and exit orders.
@@DirkChristian-w2e bravo! I appreciate the implementation of ideas and strategies that result to unmeasurable progress, thus the search for a reputable advisor, mind sharing info of this person guiding you please?
@@KateBuesgens The decision on when to pick an Adviser is a very personal one. I take guidance from Claire Robert’s Durand to meet my growth goals and avoid mistakes, she's well-qualified and her page can be easily found on the net.
@@DirkChristian-w2e I copied her whole name and pasted it into my browser; her website appeared immediately, and her qualifications are excellent; thank you for sharing.
@chamonglee Good point, majority of people won't ever be able to qualify once all the old timers die off. Only a low single digit percentage of the new generations will.
No market that the uber rich are heavily invested in is allowed to crash thanks to our government. A market crash is necessary to return to equilibrium pricing when the supply side has raised prices too high for too long. When it comes to the housing and car markets especially, they have hit this limit. Unfortunately, the government will bail them out with taxpayer-financed loans and tax breaks and credits. It's happened before, it'll happen again.
I love your videos, I find them quite informative even though I'm not a millennial or Gen Z. I thought I would share my conundrum as GenXer. I was super lucky, and got my house before everything went completely insane. was even lucky enough to refinance at a 2.9% interest rate. But when I bought the house (4 bedroom 2 bath, acre of land) I had a boyfriend, a roommate 2 cats and a dog. But now its just me, split with the boyfriend, roommate moved in with their significant other and I feel trapped with this house. I am totally overwhelmed trying to maintain it. I cant afford to pay for a handyman or a yard person. And its just too much for me to do myself. I've tried getting other roommates but things haven't been great and it's scary as a single older lady(49). Now, I could sell the house, and get a good price for it, but it seems insane to end up paying twice as much for a one bedroom apartment as I am for the mortgage + tax escrow on my current place. Like I know how super lucky I am and I shouldn't complain, but I'm honestly not sure where to go from here as none of the options are really seem good. This market is insane, I honestly don't know how the younger generations are going to make it. Are we moving to a nation of having to have roommates for the rest of our life just to get by?
Although you have a house, you are still experiencing the same mobility, flexibility, and opportunity crunch as the rest of us. It's in essence the pursuit of happiness that's getting more and more restricted- and you're a part of that. Even though you have a house. I believe what you are specifically experiencing is what they call Golden handcuffs.
to answer your question, yes - the US sucks and they're making it to where anyone who didn't get into their house early is forced to rent from Blackrock until they die. it also seems like they're trying to force current homeowners out of their homes by increasing property taxes and insurance. now, let me ask you this - will you sell your house to me for less than what you bought it for?
@@tamara4888I’m in a similar situation, golden cage is a more fitting term. I have a smaller place, but I have two kids. My plan is to sell it and move into a two bedroom apartment. If you’re not saving and investing money for repairs you’re not actually affording the place. You should get out before it becomes an iron trap. There a good chance you’ll live for another 40-50 years. Will your house last that long without repair or maintenance? You’ve probably made the most you can, why not sell make $200-$300k put that money into stock options and use the interest for rent? The amount of money you’ll save from living close to work and the city plus utilities will easily offset the cost of a one bedroom apartment.
Did people stop doing math, 2.5% to 7% mortage rates!!!! to keep the payment the same the house prices have to come down, how many homes are owned free and clear doesn't matter, if no one can afford to buy, the asset value drops till you get a buyer. Considering 2.5% to 7.6% would cause the payment to almost double... We are in for a nasty market correction...
There's a flaw in this analysis. Price is only set by those who can participate in the marketplace. Homeowners without mortgages who derive utility from living in that home as a primary residence are no longer in that marketplace--they can't buy and sell on a dime. The most active participants in the real estate market are investors, including individuals with second homes, who are chasing short-term returns. This creates more volatility in home prices leading to booms and busts. This is unchartered territory. The crash is coming, it's inevitable.
How is anyone ever going to buy a home if they can’t afford one now? Home prices have outpaced and incomes and if the housing market doesn’t crash, it’s going to continue to outpace any income increase or ability to save a larger down payment.
I am not over extended as long as me and my wife maintain our jobs. But we’re pretty close to being net 0, definitely house poor. The future may be easier but bought in 2023
And that’s because I did not know my taxes would jump from 1.6 to 8K a year. Prior to that jump I was very comfortable with monthly income to shelter payments, now not so much
Your 2nd point is key. People are buying while assuming that hybrid and remote work are here to stay - they're not. The economy has begun the downturn already, and in 5-10 years, businesses will be cutting almost ALL roles that are not on-site generating value directly. Huge chunk of the country will be forced to move for work, but won't be able to afford to, and this is what triggers the next crash.
All we've done since 2008 is delay the inevitable. Believe it or not, the US economy needs a depression and historically, in the west, there's been one in the 20s and 30s for about the last 1000 years. Our current national debt levels are the highest since the Napoleonic Wars... 200 years ago, and we're in a peacetime economy...
Are those same people the ones that have homes? Maybe some, but I doubt it’s the majority. If you had all that debt racked up, chances are, you never even made it past the prequalification stage.
I’m 65 and I have about $250k liquid in savings which I plan to put towards becoming a homeowner but based on the current high prices on real estate, do you suggest I hold from buying or do stocks for now?
investors are extra cautious right now. They want to make sure they’re getting a good deal given how much mortgage payments have gone up, and when they don’t feel like they’re getting a good deal, they’re backing out, so definitely looking elsewhere is a necessity.
investors are extra cautious right now. They want to make sure they’re getting a good deal given how much mortgage payments have gone up, and when they don’t feel like they’re getting a good deal, they’re backing out, so definitely looking elsewhere is a necessity.
In my opinion, home prices will need to fall by at least 40% before the market normalizes. If you're unsure if to buy a house or not, it is best you seek guidance from a well-experienced advisor for proper portfolio allocation. So far, that’s how I’ve stayed afloat over 5 years now, amassing nearly $1m in ROI.
Iynne Marie Stella has always been on the top of my list..She is regarded as a genius in her area and well knowledgeable about financial markets. I highly recommend you look her up if you want excellent collaboration.
I feel like it could be similar to 2008 because everyone stretched their budget the past few years, they skipped inspections on homes etc and now whenever prices go up for anything like property taxes, insurance, general inflation it will affect their ability to pay the mortage. Also with layoffs and the job market being so bad it makes me wonder. I could be wrong just curious!
Who is everyone? 42% of homeowners are mortgage free. And most people have the mortgage rate lower than 3% except for those who brought it late 2022 -2024.
08 didn’t happen because people stretched their budgets too much. It happened because people were lured into taking up a loan they should’ve never qualified for under normal circumstances.
My biggest disagreement is those who already have a house are struggling with the increase in insurance, utilities, cars, food, etc. Income isn’t matching the cost of living or the current home prices.
The 42% won't be affected by the crash, unless they need/have to sell; kids need to sell deceased parents home, or panic. The 58% with high mortgages, ARM's, and losing their jobs will suffer the crash.
The future has already happened. It is destiny. Housing crash will be the greatest ever. It is going to change the world. It is going to change the future generations. This is not a “I think “ claim. I am telling you what happened in the future.
I couldn't agree more with you. I was with Washington Mutual throughout 2008 debacle. We won't have 2008. Institutional investors are the biggest culprits in my book. They control the real estate inventory by creating shortages. Controlling inventory means that prices are high. Protective asset management essentially. They are paying always way above the asking prices and driving the appraisal evaluation of future sales. In some cities their market share is about 40%. If there is another correction, they will swallow even more properties. The government wants stable market, institutional investors are deemed more stable than individuals. I would invert your order of reasons. Otherwise, love your videos and keep up the great work.
Canada does mortgages in usually 5 year, fixed terms over the course of a 25-30 year amortization. Terms coming due that are super low Covid rates will persist from now to 2027. If people haven't planned ahead it could be a buyer's market.
In the whole western world its fucked up like this. Im lucky, i bought a 60 m² apartment in 2019 for 80k euro (1,78%) and now its almost paid off. Its good for a single, but if you want a house, you have to pay at least 400k here in germany. In south germany its at least 800k.
This is a supply and demand thing though. With less people being born now to where we don’t have a natural increase that can lead to supply getting better as the boomers start to die off. They’re also the people who typically vote against affordable housing projects
Buying a house requires math skills you should have acquired in the third grade. Basic percentage math. You also need to be able to forecast a budget and should be prepared for fluctuations in that budget. (i.e if you buy a home at 4% have contingencies in your budget that allow you to still afford it at 7%). In Canada, we have to renegotiate our mortgages every five years so this is important. I understand in the U.S. you can sign a full 25 year mortgage at a single rate. What I did, and if you can do it I highly recommend it, is build your house yourself. I bought empty land just outside my local city and built my house with my own two hands. The upside is I have a 'materials only' mortgage, because all the labor I did myself, making my mortgage tiny. The equity on day one became the down payment because the house is valued at twice the mortgage. I am a Millennial and this one move, as well as a little disciplined investing, has given me a net worth of just under a million. I know it's not something everyone can do, but I hear so many people my age complaining about the cost of living, and then not go look for an alternative that will solve their problem. I don't come from money, I make an average income, and I don't have a college degree. There is nothing special about me. Anyone with a work ethic could do what I did and be comfortable.
The idea that it only cost $800 to have a house is honestly, laughable. You are looking at anywhere between $1,200 to $2,000. Especially if you haven’t planned on large ticket maintenance items. The housing crash of 08 is going to look… different in some ways better and someways much worse. Here in the next 10-20 years we will see a ton of really poorly maintained homes come onto the market. Obviously not every one of these homes but enough. In 08 a bunch of 5-15 year old homes came onto the market that needed minimal repairs. What we will get are 50-60 year old homes that need just about everything fixed. The boomers didn’t pay to maintain public infrastructure why do you think they would maintain personal property? Especially people that got reversed mortgages… it only takes a few years of bad maintenance and neglect for a home to $10k+ in damage now imagine decades. There’s got to be more old people that are forced out of their homes because it’s become unlivable and they can’t afford to fix it. The issue is nobody else will either.
Axs usual, solid common sense with a keen eye for the current economics trends. Keep Americans wise Freddie. Thank you for your sound judgement & advice !
Provided unemployment stays low, and people are still able to get and hold jobs. If we get a market crash, we will get a housing crash, and here's why: 1.) The market crash will dry up credit and capital, and companies will have no choice but to lay off workers. Unemployment will skyrocket to over 10%. 2.) Right now consumer debt is at a record high, well north of $1T, while savings are at extreme lows. People will be unable to make even a $1500 monthly payment because they have no job, no savings, and massive credit card debt. 3.) No matter what their mortgage interest rate is, most people will be forced to sell their house just to survive, and it won't take too many of those to turn it into a housing crash, especially given the inventories coming online over the next year or so. Never think something can't happen.
You’re making a lot of assumptions. Most people buy the most home they can afford. Thats out of their entire budget, energy, food, maintenance, entertainment, kids, clothes etc. You think a $200k home is “small,” for most people, that’s a lot. Wages have not risen to compensate for higher costs. Not even close. Also, IT IS A LOT of people overextended on debt right now. More than ever. I don’t understand how you could put out a video like this without knowing that. Bankruptcies are up. Layoffs are up. Business closures are up. The inflation RATE is creeping back up.
@@RedGottie but how many of those extended in debt people are homeowners? Now there will be foreclosures happening due to the factors you listed, but it’s in no means enough to cause a crash. You’re going to need about 3million+ foreclosures to even make a dent in the market. We’re not even close to half a million yet.
@@chamonglee you’re talking just about foreclosure. Thats just one part of it. You should be thinking more broadly. How many people will lose the ability to buy a home when they lose their job? How many have lost the ability to save for one? How many will have poor credit because of defaults on credit cards, vehicles, other loans? You’re stuck in the mindset of trying to compare everything to 2008. It’s not. This isn’t a single market meltdown that will create a recession. It’s a multimarket, multi-industry, multi-national meltdown that will cause a recession, or worse. To exacerbate the issue we have the largest generation dying at a higher rate, causing their homes to return to the market. This will also put downward pressure on the housing market.
@@shesmymamaas you know, real estate values do not go up and down by data. It is largely psychological as well. It needs to go throgh a normalizing process. I am not saying the market will crash. As a real estate professional, I am starting to feel it in the market. For example, two years ago, similar houses that were sold over the asking price in less than 2 weeks are now sitting in the market for more than 2 months and some sellers are slashing the asking price multiple times.
Real estate is all data. We can go back 50 years to see patterns that exist, with the exception of the 2008 crash. They don't teach that in real estate school, though. Because real estate is seasonal, we tend to see a slow down in the Fall (correction), anyways, especially around the holidays. The 2021 -2022 market was an anomaly, and of course houses flew off the market. Interest rates were low, inventory was also low. Prices have continued to rise and I wouldn't call it a correction necessarily due to the gains made over the past years. Houses will sit longer, with price reductions, but those reductions aren't even equivalent to the equity gained. Sellers can afford to reduce because of that reason alone.
The coming downturn has many similarities with 2008 despite what we’ve been led to believe. There is a direct correlation with the labor market and housing prices. In 2008 blue collar America took the brunt of job losses and wage stagnation that propelled the housing crash. Prices won’t crash like 2008 but it’s going to come down mostly gradually and consistently over the next 5 to 10 years. This is mainly because of savings and investments that most of the middle class will exhaust in efforts to stay in their homes. The qualified borrower argument is weak when wages are so far behind cost of living and seem to be prepped to fall instead of rise. Taxes are going up for sure even if what’s being called inflation which is really devaluation is under control. The cost to maintain the country has risen with everything else. On top of that there’s a great layoff coming and happening now to white collar middle class Americans who make up majority of the qualified buyers of today and for future projections. The layoffs will directly coincide with the gradual housing price decline as white collar wages are pushed down due to oversupply of labor. But who knows I’m no economist just calling it how I see it.
@GiftofGod289 Prices in that market will have to lower at some point, or this country will experience a drastic drop in population like never before. People are already wising up and moving to better cost of living countries in Asia or Europe. Expect an emigration and low birth crisis to occur within the next few decades. America is on track to fall like rome or become more dictator like.
We make about 200k and we do not feel comfortable buying with these prices and interest rate Income 16666 Debt 4570 2900 dollars average mortgage in ma No thanks! Not with 2 in daycare
Wow its almost like threes a human need. That we are capitalizing on the destruction of people. Amazing greed amidst the chaos. I'll see everyone here in hell. Misery enjoys company after all.
For the housing market is going to crash right now now but I would say you have that coming in the next two years basically two years out there's going to be a crash we're starting to see the lead up to that now after all we've got less activity happening in the new construction that basically means that finances are tightening up. But then of course you also have a situation where a lot of people purely just don't have the money up front to deal with a conventional loan there's plenty of inventory on the market the big lie has been that there's a shortage of inventory that's a crock of shit the reality is simply most of the inventory available on the market you need to get a conventional loan in order to buy it and a lot of people really just can't get a conventional loan simply because they can't come up with the money up front that's necessary to get that loan. Then of course you have a situation where industries are contracting this means layoffs this means a lot of people are poised to lose their jobs or they may have to take a severe reduction in pay the other going to have to take a lesser of a job meaning they're not going to pay for the house so we're already seeing evidence of that with a spike foreclosures. Yeah I mean people last time around said it's not going to crash and I'll be damned if it didn't. It was basically the same environment everything was overvalued via it's a bubble you had a situation where new construction slowed that's going on currently we have a situation where you know businesses industries in general were floundering yeah that's happening I mean after all there's basically a commercial real estate collapse so right there is the sign of you know not very many options for a job. So yeah I mean the rest of this year and most of next year should be fine but when you get to 2027 I think you'll see an increase foreclosures and pretty much by 28 you're going to see a outright collapse.
Look i love this guy but at the same time, He's already a homeowner. It's in his best interest that The market stays the way it is for his own property value. Yes it's true what he says for millennials and Gen z not being able to buy homes, but his solution is more government based rather than letting the market correct itself and crash later. Because it would hurt HIS interest since he already owns a home. As right as he is on a lot of things, we still have to be mindful of bias. Its similar to when realtors tell you its always a good time to buy. The market is definitely going to crash, the consumer base has been priced out of virtually ever major population center in the U.S. There's pile ups of empty neighborhoods with a high price tag that no average buyer will even look at. It just takes one company like Zillow to drop their prices and trigger the chain reaction. And that terrifies this guy
@@chamonglee Zillow still owns residential property in my area. Zillow Residential is what the company is called, even then - Zillow is not the only one. Blackrock, Silverhomes, EverRed, Living Homes inc, all do the same thing. The point still stands
@@Hostilethreatanother issue is all these homes that nobody lives in are being damaged. If you buy a house for $400k and it gets $50-$60k worth of damage you just lost $100k!
Instead of waiting for the market to crash, why don’t more folks talk about group ownership? A few friends 3 maybe. Buy a home and start earning equity. I see a lot of of young 20 and early 30 year old do this in Europe. Also really focus on letting folks know, hey rates may be high, but you’re genuinely paying 100% interest rate in renting. Getting absolutely nothing back. When the market crashes; which I doubt will happen. Than your prepared to move up the property ladder. Lastly a different variable to consider, is a lot of mortgage companies help when you cannot make a payment due to hardship. It’s incredible the amount of resources a homeowner has vs a renter. I’ve owned since 2008
It’s a good idea on paper but puts people in a very unstable situation especially if there’s a falling out and your credit/finances are tied to a house with friends.
@@user-dj6lx1ns2e I mean signing a lease to a house with a group of people is technically a legal agreement, but I don’t think you can make a legal agreement saying the other person on your lease has to pay their portion of the mortgage. Renting is a different case because you can probably do a civil case and arrange something in that way, but I don’t think you can do that with a mortgage
@nintha1 it's not a lease when your buying it & yes you can get a legal agreement outlining buyout &/or surrender rights. I know people who have done it.
This video missed the most important factor: population collapse. If the US changes it's immigration policy, there will be no one to rent, so landlords will stop purchasing. There is a good chance we will see a housing market collapse from politics.
That’s not true if you don’t plan on living in your home for less than 10 plus years, because during that time interest rates are the majority of your payment, so you have very little equity in the house. Also, home repairs are very expensive (like $30,000 every 10 ten years for a new roof, etc.). And your neighborhood’s value could go down. And a natural disaster could destroy your home (often insurance won’t cover costs and if they do it will take years).
Buying is almost never cheaper than renting! Sorry! Because I can rent what I need when I need it. Owning out right a 4/3 in the suburbs is going to cost more than renting a 1 bedroom apartment in the city center. The “I live a fundamentally unaffordable lifestyle and the only way I can afford to live like this is to take all this risk. That is why renting sucks” sounds like a weird argument to me.
@@Klake-bk2dpin my country, rent for a small 2 bedroom apartment in the outer suburbs, is the same as mortgage repayments on a 4 bedroom house with land in the outer suburbs. Trouble is, high interest rates and a severe housing shortage conspire to ensure almost nobody qualifies for a large enough loan to afford any of the limited housing unless you earn around $240,000 anually combined (or more)
You make all these videos, but without actually telling people to vote as far left as physically possible, whats the point? Wheres the call to action? You should know that you have people in the comments saying, "yes, exactly, this os why we need trump" who you KNOW will only make things 2x worse! Your apolitical nature destroys your whole channel and any good youre trying to do. It turns it into just complaining!
Shit I'm saving my money with my 550$ per month rent. 2 bed 1 bath house with a huge backyard. So I think I'm better off renting right now than a lot of people my age
Can you please offer analysis on the effect that high numbers of reverse mortgages will have once large numbers of Boomers start to decease? I can't find stats on the precise numbers, but I intuit that's where a lot of their ability to spend on exploding healthcare expense, is coming from.
The idea that it only cost $800 to have a house is honestly, laughable. You are looking at anywhere between $1,200 to $2,000. Especially if you haven’t planned on large ticket maintenance items. The housing crash of 08 is going to look… different in some ways better and someways much worse. Here in the next 10-20 years we will see a ton of really poorly maintained homes come onto the market. Obviously not every one of these homes but enough. In 08 a bunch of 5-15 year old homes came onto the market that needed minimal repairs. What we will get are 50-60 year old homes that need just about everything fixed. The boomers didn’t pay to maintain public infrastructure why do you think they would maintain personal property? Especially people that got reversed mortgages… it only takes a few years of bad maintenance and neglect for a home to $10k+ in damage now imagine decades. There’s got to be more old people that are forced out of their homes because it’s become unlivable and they can’t afford to fix it. The issue is nobody else will either.
