Since the early 1950s, the oldest and most reliable rule of thumb in real estate has been that the median home price should not surpass the average income in that area, and that a person should allocate no more than a quarter of their income towards affording a home. However, currently, many homes are priced at 50% above their actual value and the available income needed to afford them.
Currently, mortgage rates have been maintained at artificially low levels for several years. Although they have not reached high levels yet, the prices of homes are not in alignment, while the rates appear to be appropriate.
In 1950, the median household income was $3,300 a year. That same year, the median home price was $12,500. Was there ever a time in US history where one year’s median income was the same or more than the median price of a home, as you have argued?
@@Jackmama007 literally 100% false statement. A true statement would be every 20 years since 1960 home prices 4x and we are underpriced by that metric. Lol. Home prices don’t care about affordability that much. Look at every other country. People say what they want to happen
After selling a couple homes in 2020, I'm anticipating a housing crisis in order to buy inexpensively. As a backup plan, I've been thinking about purchasing stocks. What recommendations do you have for the best time to buy? On the one hand, I keep reading and seeing trader earnings of over $500k each week. On the other side, I keep hearing that the market is out of control and experiencing a dead cat bounce. Why does this happen?
Most people are unable to handle a fall since they are accustomed to bull markets, but if you know where to look and how to get around, you can profit handsomely. It depends on your entry and exit strategy.
The fact that the US stock market had been on its longest bull run ever makes the widespread worry and enthusiasm understandable given that we are not used to such unstable markets. As you pointed out, it wasn't tough for me to earn over $780k in the last 10 months, so there are chances if you know where to go. I hired a portfolio advisor since I was aware that I needed a solid and trusted plan to survive these trying times.
@@mattandersen2458 I tried looking into new strategies to profit in the current market because my portfolio has been in the dumps for the entire year, but everything I tried just seemed to miss the point. Please let us know who your financial advisor is by name.
@@Vincent-nz2nk With Ruth Loralann Brennan’s guidance, I've been investing for a while, and I couldn't be happier. Her company offers the broadest financial guidance currently accessible, has given me the best ROI while safeguarding my capital. It never squanders my money on dangerous speculation or poor risk-management techniques.
@@mattandersen2458 I can understand why Ruth is so busy because she has impressive credentials and a terrific resume. But I still set up a meeting with her.
I’m closing in on my retirement and I’d like to move from Minnesota to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways
Since the crash, I've been in the red. I’m playing the long term game, so I'm not too worried but Jim Cramer mentioned there are still a lot of great opportunities, though stocks has been down a lot. I also heard news of a guy that made $250k from about $110k since the crash and I would really look to know how to go about this.
Thats true, I've been getting assisted by a FA for almost a year now, I started out with less than $200K and I'm just $19,000 short of half a million in profit.
@@martingiavarini My advisor is ‘’Christine Jane Mclean’’ she’s highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market
For 2023, it’s hard to nail down specific predictions for the housing market is because it’s not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars.
A lot of folks have been going on about a December rally and said stocks that would be experiencing significant growth these festive season, any idea which stocks this may be? I just sold my home in the Boca Grande area and I’m looking to remunerate a lump sum into the stock market before stocks rebound, is this a good time to buy or no?
Such market uncertainties are the reason I don’t base my market judgements and decisions on rumours and here-says, got the best of me 2020 and had me holding worthless position in the market, I had to revamp my entire portfolio through the aid of an advisor, before I started seeing any significant results happens in my portfolio, been using the same advisor and I’ve scaled up 750k within 2 years, whether a bullish or down market, both makes for good profit, it all depends on where you’re looking.
Having a counsellor is essential for portfolio diversification. My advisor is LAUREN CASEY HEJL who is easily searchable and has extensive knowledge of the financial markets.
Same could be said about the auto-market: People continuing to buy cars at insane inflated prices. But they still do it anyway and dealerships (aka: stealerships) thank them for keeping profits up. -- BR
@@billredding2000 . The auto market truly makes no sense. People can't help themselves. I talked to a fool that tried to tell me that holding on to your car after paying it off has the same cost in repairs as a new car which today is about $50k on average. Then he told me that he would never drive an old POS car. Talk about ignorance. LOL
Transfer of wealth usually occur during market crash, I've been looking up strategies and apparently both bull and bear market condition provides equal avenue to accrue massive gains, and a news article particularly mentioned a 54 year old that made $180k in 8weeks, how do I learn these strategies, my portfolio has been stagnant for months.
@Finest Bear Hug Had a good run during my first year in the fin-market, I assumed I had a hang on it. However, things changed during the pandemic, and I needed to diversify into safe assets, so I approached a coach who devised a structure that matched my goals, and in my first year working with her, I made a whopping $695k, which I hope to scale to a million before the end of the third quarter.
@@chrisbluebird5037 I curiously looked up Wendy Helene Bennett online and researched her accreditation. She seem very proficient, I wrote her detailing my Fin-market goals
Just say It: the majority of qualified buyers in this market are private equity firms that can throw truckloads of cash at inventory, flip it and rent it.
I can't believe 50 people are ignorant enough to thumbs up this comment. These are the same people that believe the rich don't pay their fair share of taxes when 96% of income taxes are paid by the top 20% of income earners. These people are willingly blindfully ignorant.
The housing market has been a manipulated market for as long as I can remember. Now, the car market has followed suit. I'll drive my old beater until the wheels fall off before I pay $30k for any sedan.
Another reason it's less likely to happen that way is that there is already too much demand waiting to absorb that regardless of how everyone is panicking and calling the crash. Nobody was making this prediction in 2008, at least not the general public, as I indicated below. In the other comment, it was mentioned that the ownership rate peaked in 2004. As of today, we are at the median level, having previously peaked in the second quarter of 2020. It decreased by 3% over 4 years, from 2008 to 2012, going from 68 to 65 in the second quarter of 2020.
Most people are unable to handle a fall since they are accustomed to bull markets, but if you know where to look and how to get around, you can profit handsomely. It depends on your entry and exit strategy.
The fact that the US stock market had been on its longest bull run ever makes the widespread worry and enthusiasm understandable given that we are not used to such unstable markets. As you pointed out, it wasn't tough for me to earn over $780k in the last 10 months, so there are chances if you know where to go. I hired a portfolio advisor since I was aware that I needed a solid and trusted plan to survive these trying times.
@@aaronbritzly3154 I tried looking into new strategies to profit in the current market because my portfolio has been in the dumps for the entire year, but everything I tried just seemed to miss the point. Please let us know who your financial advisor is by name.
@@robbyarch4346 I wholeheartedly back financial counsellor ''Ruth Loralann Brennan" who holds a US SEC licence. She has been helping me for a long with my portfolio. You may look her up online because she has many reviews.
@@aaronbritzly3154 This recommendation comes just in time because I'm literally grasping for straws right now! I looked her up on the internet and made plans to call her.
I am new to the stock market. Every stock that I bought so far, I was out of luck because I bought them when they were expensive. I feel I missed out on all the stock opportunities so far for the tech stocks.I believe having 175K yearly income would be a good investment so I want to plug all my savings into the stock market. I know this sounds a bit dull but I would like to know if I should learn investing or let somebody else (more capable like a FA) do it for me? Please share your thoughts. I am kind of tired of searching for a good stock to buy and losing all the good opportunities.
Patience is the key, you bought way to high. Gotta save cash and let the market come to you even if it takes awhile. Later this year will be a good time to buy. Market crashes about every 10-12 yrs like clockwork, you buy then
bizarre how everyone was able to put up offers 30% over asking price just a year ago in a lot of these markets.. none of those people putting in outrageous offers then, want to buy now that some of these homes have been sitting for over a hundred days and have taken multiple price cuts?.. unfortunately affordable inventory is still slim in my market, there's like a dozen homes under 250k. most still selling quick but median priced homes around 375k-500k+ are starting to sit for awhile, and the more upper class 850k to a million + homes are taking even longer. winters are historically slim inventory around here, but it feels like a lot less people are selling than there were at this time in the past few years. this market still needs a major shake up and reality check.. it's been much overdue.
People were putting offers over asking because they locked in historicly low 2-3% interest rates. Cost to borrow was cheaper than ever. Those days are long, long gone. Rates have more than doubled, now at 7%. And they will continue going up as the Fed continues to hike rates to lower inflation.
Last year was about the rate. If you're going to be somewhere for a long time then paying 30% over asking might make sense if it got you a 3% rate. Now the rate is 7% and people don't see a reason to buy these overpriced houses anymore.
@@ISpitHotFiyaa yeah still tho, paying twice the apr on a home that is 40% cheaper than the offers would've been last few year, works out to not that much of a difference. I'll take just above average historical rates and 15%-25% under market price, over offering 30% above market price at historically low rates every time. Then just refinance if/when rates come down and hopefully be able to lock in a better rate and actually have upside equity.. lots of those people who bought last year with their historically low rates are now upside down on equity owing more than they could get for the home now. Pretty much lost their entire 20% down payments. Still seems idiotic to me.. pull up a mortgage calculator. lets say we have a market value of 300k for a home, at 30% you offer 390k and a 3.5% mortgage you are paying $1,751 a month, 40% off that 390k offer is 234k, at 7% your monthly payment is $1588.. so it still a smaller payment at 7% granted not everywhere is 40% below the ridiculous offers of last year, still you'd have a tough time finding a place where prices arent down at least 20-25% from peak. so that works out to a very similar payment, if not a lesser payment.. only difference is guys buying now have upside equity, and people who bought last year are underwater.. still my point is the same.. no matter how many geniuses point out the obvious that rates are higher.. market value, cash and equity remain my point, don't care about rates.. I've already demonstrated why rates dont matter much.
@@backrack01 I think it depends on the area. In looking at Redfin, it looks like it is a crapshoot right now. Inventory is low in Boise, Los Angeles and Miami, medium in San Francisco and Seattle, and high in Las Vegas, Salt Lake, Austin and Phoenix.
Just do something that will earn you money while you sleep, no matter how little. A pandemic is the perfect way to open your eyes to really see what life could be like without your usual income stream and everyone had to stay home. Well I never felt it because I invested in a trading company where I earn 4 digits per week. The best thing you can do for yourself is invest more and spend less.
Talking about investment, the forex market is by far the biggest and most popular market in the world, traded globally by large number of individuals and organization
KATRINA VANRENSUM is the best broker, I have tried lots of professionals but only exceptional income trading with KATRINA VANRENSUM strategy now earning over $15,300 every 10 days.
People bought extremely expensive homes, so it really doesn’t matter if they have 3.5%. If they have to move, they can’t keep two houses. Plus prices are going down, so consider being underwater,
@@davel4143 it does metter i bought home 2005 when the price was like 2022 bought for 245 2008 under water 165 took me till 2021 to reach the price i bought i did sell-it cuz it need lot of update and not worth-it putting money on that home any more 2008 was scary people was baying homes over pieced and they was under the water till 2021 if home is underwater you newer going to fill comfortable to keep that home
The stock market rally still appears to be in the midst of a normal pullback. I just sold my home in the Boca Grande area and I’m looking to remunerate a lump sum into the stock market before stocks rebound, came across a success story of an investors that made up to $700,000 in few months from investing just $250K and I'd really appreciate it if I could get clues and pointers on how to make better profit...
Making money from stocks look deceptively easy. The reality is that stock market is one of the toughest mental games in the world, hence i will suggest you get yourself a financial-advisor that can provide you with entry and exit points on the shares you focus on....
@@PhilipMurray251 Having an investment advisor is the best way to go. Based on a direct encounter with a CFP named Corinne Cecilia Heaney I can say with certainty that their skills are excellent. She helped raise over $580,000 in 18 months from an initially stagnant portfolio of $150,000.
My friend made $2,000,000 off investing some $100 in stocks. So those are easy numbers to pull. However, whenever you have success and make money, you want to get out and don’t go back in 😂 He lost half that money trying to do the same thing again and had a 95% loss.
There's still bidding wars going on in NJ. It is impossible for a middle class family to buy a home in this market. I can't wait for this to happen in NJ but the inventory here is extremely low so it's hard to tell if this will even happen in NJ.
As inventory surges, more houses come on the market. Those that have been holding out will panic and try to move before it gets lower, then prices will get lower.
I sold my house during Covid for over $150k more than it’s worth. We did have an issue early on finding a new place but we eventually figured it out. Now our old house is only worth $130k as we sold it for $288k. Oh well.
We are building homes at a historical level right now. This year should see lots of new construction dwellings hit the market. Check out the FRED data on housing. WE have not built like this since the 70s.
@@kingbradentucky what should I look for specifically? I'm pretty interested in this data.. all I could find was 'new privately-owned housing units'.. which in part include apartments. Thanks for the info so far. Very interesting.
@@MrDrsm02 , you know I probably should have used the word housing not homes. There is more multi family rentals than single being built. It is an rare that this happens but rents got so high builders like DHI got into developing rental properties. They will build a huge block of homes, town homes, rent them and then sell that whole block of rentals to institutional investors. Regardless this all puts downward pressure on housing prices. Cheap rent forces sellers to lower too.
Poverty is anyone making under $24/Hour. That is still also NOT a livable wage. Barely could keep up on a house mortgage on that. Livable wage foundation since 1960 should bow be $33+/Hour for any job with a high school diploma!Over 65 million Americans ( able bodied ) are not working at all because SMART people do not work for wages that are not livable! Since 1960 to present day: A high school educated Americans should be making $33/Hour minimum with all the problems we have as a nation! There was never supposed to be multi-millionaires or up who learn to be greedy, apathetic, deceptive and corrupt toward the general public 🐿🐿🐿Capitalism = Financial Fascism = 65% of American in poverty or homelessness! Unemployment is permanently no less than 45%+ and some places as high as 75%+ ( wiped out towns where evil corporations squeezed Americans and then left them to die ) 🐺🐺🐺
Haven't seen any homebuilders either but plenty of apartment builders; could be the next shock to the system. I believe people want homes not apartments. (NJ-NY Area)
Home builders are an interesting play: 1 of 2 things need to happen in residential real estate, either prices or rates come down. Rates are likely to stay high or rise. Sellers may not want to lower price. This is where Tolls and Lennar (4 example) can provide attractive incentives like rate buy downs that make the homes more affordable while not diluting valuations for previously sold phases within the development. New home sales will see better numbers than pre-existing home sales for the foreseeable 12-18 months.
My homes value has dropped -7% in the month of February alone. Bradenton, FL here. I'm seeing more for sale signs popping up everywhere, too. I think this mayhem is just beginning.
If you inherit a house from your parent (died) and you don't want to live there...that's who's going to be selling their house. They just want the cash from all the equity from the past 30 years and don't want to be bothered with a house they have to pay taxes on, especially in high tax areas. Plenty baby boomers are dying every day. Morbid, but true. Once the price is set from that sale it just continues to keep going down. It's a grind, but once it starts to roll over prices will continue to go down. Rates are not changing anytime soon. The only way for people to qualify is for the house to be cheaper. Not rocket science here. Rates to go to 8% by the end of the year.
Yeah they always bring up the people with the 3% rate that don't want to sell but those people never really mattered anyway. I mean if you sell one house and immediately buy another then you don't move the supply and demand curves relative to each other. What matters for equilibrium i.e. prices is what first time buyers are doing, what builders are doing, and (much easier to predict) people dying and selling their house for the last time. The interesting impact of the people with the 3% rates is that they'll probably keep their house for decades rather than upgrade in a few years. So, unless the builders go whole-hog on starter homes, at some point we'll have a mismatch in the market where there's a lot of high end homes that nobody wants to upgrade to and a relative shortage of starter and mid-level homes. So if they did have an impact on price it would just be to reduce the spread between starter and high end homes.
Austin should be on that list. Been here 22 years and being completely priced out 😢 Forced to move way out to the boondocks. Nothing to do within an hour’s drive. It’s ridiculous!!!
My area no one is selling their homes. Like the guy said lots of people don’t want to give up low interest rates to move somewhere more expensive…. For less house.
We’re seeing a repeat of 2008. We learned nothing. CDOs are still a thing and investors are over-consuming. When your market has no money, good luck maintaining any kind of stability. Phoenix is always on the front end of bad housing shifts.
Inventory is not surging in Las Vegas. It’s been on a steady decline since Oct ‘22, and we are back down to only 2.5 months supply. Yes, that’s an increase from a one months supply of inventory from the previous year, but sales and demand have been up since the beginning of ‘23.
@@SigFigNewton it doesn’t…2.5 months supply is not a ton. Of that 2.5 months, 30 pc is what I call “me too” homes- 2 story, 3 BR, 2.5 ba in neighborhoods that are not special, and or overpriced still. The inventory has been steadily decreasing, yet reports like these are false.
@@SigFigNewton I want people to be able to afford houses. Feb ‘23 is NOT higher than in 2018 or 2019 according to our local MLS stats which accounts for all of Clark County. 2.5 months is low considering we have so much inbound migration from other states. As inflation nation continues, people in high tax states are continuing to relocate to Las Vegas, and what’s not being talked about is all the corporations buying affordable homes to turn into long term rentals. It’s a really weird market indeed, but the picture painted in this news story is not an accurate depiction of the market right now in Las Vegas. Could that change next month with higher interest rates or geopolitical events? Absolutely. It’s interesting times indeed.
News like this really drives me and my partners at work nuts. I sell homes for a big corporate builder in the Southwest valley, and this month we exceeded our goals with selling inventory homes. Our competitors across the street is sold out, and doing great too. The market in Vegas is great people! I don’t know where this news is coming from.
The lady in the red has run the whole table…she’s the only one who knows what’s going on. Every building sales office in our region is slammed on the weekends and most are restricting what they have on for sale bc they don’t want to burn thru their entire inventory- so they can control price increases. Those boys on the table need to get their heads off the computer screens as does the person who wrote that headline.
They refuse to admit that their is an overall affordability crisis in the US separate from rising interest rates. Once the average home price of an area edges past 4x its average annual income, the game of musical chairs stops. High interest rates are just the first speed bump. Home values were artificially high from outside money, and the current stalemate are the locals saying no-can-do. New Orleans metro market is the poster child for this, as it cooled off in late 2021. Home values are down as much as 30% in some neighborhoods since JAN 2022.
People got crazy and just started paying too much. My house was worth 55k and then the next year, 117k rofl. I bought a 'fixer upper' for 16k and sold it for about 8x that. People were just being stupid lol. Land prices doubled as well.
@@seanhubble5532 Only true in an appreciating market ... not true in a market that could easily see negative equity growth for years. Tell that "build equity" narrative to those who bought homes between 2007 to 2012.
No, the buying frenzy by banks to buy up real estate using cash, driving up prices at 0% interest rates is over. Bottom line, retail buyers were not a driving factor in home prices, banks, hedge funds, international investment firms were.
East Cobb in Marietta house prices keep going up. Some there are bidding wars. I know. I just lost one. AND we had a cash offer but so did the other guy just a bit higher. Nice house too. I wanted it. Oh well. The search continues and looking in Austin now.
There actually isn't a lack of supply of housing inventory due to demographics. The house builders don't actually have a reason to build housing inventory.
It’s not homeowners that are gona capitulate and sell. It’s people that are renting, unable to afford rent because there are tapped on credit card, depleted their savings and will force all the major firms in institutions that bought up millions of homes as rentals they will let them go. That’s what will happen.
@@r4ym1n13 Many of those people overspent in housing. Yes, the rate was 3% but lenders were telling them they could afford much more house than they could in reality, and real estate agents pushed people to buy high cause prices only go up, right? and now they are really not liking have no disposable income. I know because our lender said we could afford way more than we would be comfortable with and all the houses we looked at were priced in the nosebleeds, so even at 3% we would be cornered right now. We did the math and decided to back away from the fomo. Many did not.
@Gaye Lorde Nervous ? Not one bit 😂 . I locked in at 3.3%. You'll never see those historic low rates again. My mortgage, insurance and property taxes all together comes in at $1650 which is way ,way less than rent. My best friend is "nervous" cause he just got a massive $350 rent increase on his tiny apartment up to $1900 !
@@zwatwashdc If you just played with a mortgage payoff calculator, you will realize that locking in a 2-3% rate is unbelievable. People focus on the purchase price instead of the monthly mortgage payment. Your monthly payment would be really low and save you massive amounts of interest over the years. Compounding interest ? Look it up Here's an example for you to go try. What do you think cost more money ? A person who bought a higher price home at $300k at 3% rate, or some one who bought a "cheaper" home for $250k but got a 6% rate ? The calculator will prove to you that the person who bought the "higher" price home at $300k with at 3% rate is paying WAY less over the term of the loan and paying WAY less on the monthly payment ! Interest rates now are at 7% and only going higher as the stupid Feds continue to hike rates to fight this insane 40 year high inflation. And yes if you look at a historical chart of the median home price, it only goes UP. Real estate is the best asset someone can own to build wealth. Renting forever to pay someone else's mortgage off is an incredibly dumb option
This is ridiculous. It's only talking about above average places. This whole concept is not talking about small town America. There are cheap homes. Just not in gated neighborhoods. Scare, fear, oh my L.A. Miami, Vegas, N.Y. has always had an inflated market Toledo, Detroit, and others like it are still affordable You can't base the entire housing market on a few cities
If you bought a house for $440k at a 3% rate, you would pay $1855 in interest and principle. At a 7% rate you would pay over ONE THOUSAND DOLLARS MORE A MONTH at $2927. This means if you waited to buy and the housing market collapsed Great Depression style by 40%+..... you would literally just be breaking EVEN with no gain
I remember that back in 80-84, those days and rates need to come back and force a lot of these a$$hole homebuyer’s out who can’t afford a home bc of greed and are asking way more than what their home is worth. Housing market needs a massive correction!!!!!
Hedge Funds are buying homes for cash. Regular people are having trouble buying homes, because not enough affordable housing is available and/or being built. this guy is clueless. People want to buy, in light of this CAN NOT. Rich corporation buy for cash, and rent them out. cant beleive what I just heard.
"Who would sell their house if they have a 3% interest rate?" The same people who sold in 2008-2010, genius. When unemployment skyrockets later this year AFTER equity has evaporated and people are 10-15% underwater on their homes, they won't sell because they "want" to. They'll sell because they HAVE to. That's what late 2023 through 2025 have in store. Unbelievably unaffordable relative to the average income/net worth. It's mathematically 30-40% worse now than it was at the peak of the housing bubble. WAKE UP
I just sleep in my car or dogsit. These slumlords ask too much for what you get nowadays. I used to feel it was worth it to pay 1k a month for a 2 bedroom apartment a decade ago. But it doesn’t feel worth it to pay 1k for a studio or a bedroom in someone’s house with tons of rules and expectations.
I just had 2 offers on my house today. About to be someone else's house. The one that doesn't get the house will be shown my other house that's for sale and get that one sold too
@@doctorwhowhotheowl4691 I'm selling now to reset my money at a lower cost. Basically I have a few homes left from when the interest rates were low and prices were high. Now houses can be bought for cheaper so I'm getting rid of the ones I can only pull small profit from now to buy ones I can make big profits on. These were worth $100k profit but now only $50k so I need the money to buy $100k profit homes again. Business, sometimes you have to lose money to make money
Most people under 40 hardly have any savings and have no prayer of buying a house. It's either you're one of the top 5% earners or you are fortunate enough to have parents who are going to leave you a house eventually. I'm tired of hearing any chance of a meaningful shift back towards affordability being referred to as "trouble" or "bad news".
Maybe builders will start building smaller, more affordable houses now. McMansions became the norm when interest rates fell to record lows. Maybe now, the housing market can stabilize with more new right-sized homes.
Builders are building bigger houses because the cost of materials went up and it costs only a little bit more in materials to build a house that sells for a lot more. Less and less smaller houses are being built. So I hear anyway.
People buying homes with cash is a much larger segment here in California than you might think. Someone is purchasing those million-dollar 3-bedroom 2-bath homes in the Bay area and those sellers are coming out to the valley with cash. The desirable homes aren't sitting on the market very long, we just sold one of our Sacramento homes in less than two weeks and got the full asking price. My wife and I are only dealing in cash now and intend on buying one or two more rental homes this year depending on how soon the bottom drops out.
It is correct people are paying cash for homes. Due to concerns about the financial market if people can they are going to wait to purchase a home until after the election.
Housing is NOT a supply and demand thing at all. Prices of homes going up drives people to buy. While $ amounts of homes go down people stop buying. But average payments are still going up that people are paying. That's because we're still in inflation (and will be for along time) , and it's the very reason that home prices had gone up in the first place. Now fed will get to a point of stop increasing interest rates. That will have the result of average payments still going up to catch the $ amounts then take them up again. The $ amount of homes will start going back up with the inflation again and people will go back to buying , faster and faster as it goes. After all those ever higher payments people will pay will then apply to higher $ amounts if interest rates are not moving up anymore. Until it's to fast again and fed will again slow it down, by again increasing interest rates. This will repeat itself over and over until we do all the money supply increases /inflation we have to go. We'll see way over 20% rates to buy a home before this is over. (Remember fed cannot stop inflation , but they can slow it down.) Believe it or not, home prices are at the cheapest they're going to be. It's very easy to look back and say I want that cheaper rates I remember, so I'll wait. (((I always have to ask if they're waiting to go back in time?? Which won't happen , BECAUSE THAT DOESN'T WORK, SO DON'T DO THAT!!!))) But waiting while we know they're is an enormous amount of inflation still on the horizon , really means you're waiting for the real cost of a home to be more $. Cash and you're right to wait, but if you're going to use a loan you'll be paying ever higher payments as time goes on. Waiting amounts to paying more too because loan on $ amount of homes will go up all during this inflation. No chance of it not going to happen now. We are all talking about inflation here. Cause by people in congress that produce inflation. Bills that spend more money , make more inflation , and more problems for you. Inflation is the cause of those problems. Of course. But that is the government spending money they didn't have , to do things they don't need to do . Can you say NASA ?? Who wants to go to Mars now. Ask yourself , for what?? You can see my point. All spending by government causes inflation. They don't stop at what they took in for tax. Inflation ends up being the tax on the poor. I hear people that make a lot of money say " higher incomes pay for all the tax, while people in the lower income don't pay anything". NOT true at all , the poor pay the most because of inflation. As a result all crap like NASA is cost paid for directly from the poor. The fed gets told what to do here , they're not in charge of it. Congress votes to spend it and president signs off on it. Then they make US treasuries (bonds) which Fed must buy if no one else will. NO CHOICE AT ALL, they can't say no. And the new money supply is made , then given to our government to spend , than added to the rest. And that is how you make inflation. Many people think we have a bigger debt. NO not at all, the total of money supply = all the goods and services cost all the time. Money supply goes up (By The Way money supply and our national debt is the same thing) , so prices go up by the same % as the money supply because of it being increased. So the debt = the same after it works it's way into higher prices as it did before the increase. The only difference is government takes the value of the existing $ , splits it's value with more of them and gives the new part to themselves . Money in the bank loses it's value that way. So don't save cash during inflation , and taking on debt is really making wealth , so debt is good. Debt is good to have , because we pay back less value then we borrowed . That is exactly what people overall are doing. Example: Buying a house for 300K and paying it for 30 years . The last 10 years money is worth less then the first 10 years. So debt is good with inflation. Remember all $ loses value , including debt during inflation. So it goes the national debt made of $ is also losing value by the same % of increasing $. $1 becoming $2 while it is also each is now half of what a $ was , still is the same value. So the national debt is not getting bigger at all. The process of making more and more money supply is stealing wealth from the poor. If you own assets you gain. But the poor only lose. They are also the very ones voting to make it happen. As it always and every time does cause inflation. Even when it's called an " inflation reduction act", which is also more inflation. Fools vote for it and damage themselves even more. The intent of the poor is to make life better , but it's only worse for them. That doesn't stop government from trying to spend a lot. That spending is so they can do things they can't otherwise do , to give to a group of people while trying to get their votes. That works on fools. Those fools vote for those that do this damage to the very country we live in. That damage last for a lot of years. Now fed says we need to slow inflation . Really not. Yes prices will go up to match the same % of $ increase as it always does. Faster or slower doesn't matter , it will do the same damage anyway. Higher prices. Best if we let it go and let wages go up too , so let it go up. Best to just let the prices go up and wages right along with it. We can get a lot of the % of prices done. (That means up ) The total money supply = the total of prices for all the goods and services all the time. So it won't help to try and hold it down to much. Because the money supply is bigger and getting even bigger, by large amounts and %. No chance the prices won't do the same thing. It's what they do. So if you're going to buy a house NOW'S THE TIME.. Always and every time prices follow money supply up by the same %. Only the poor get hurt, by removing them from their jobs , when fed slows down inflation , and thus reducing some demand for a short amount of time , on some goods and some services. Like trying to save on toilet paper by starving your children. Yes it will work temporarily , but at what cost.
Inventory in Las Vegas is currently decreasing. Yes inventory is up a huge amount from the extreme low level in 2022 but still way below 2019. Median values in Phoenix and Las Vegas have been going slight up. Demand isn't high, but isn't low either. Most real estate professionals expected demand to go down when rates went over 7% but sales increased instead. But whatever.
Maybe tag her on Twitter or whatever TV people do. I assume she has account. There was an app I was reading about that has the ability to identify clothes.
Oldest rule of thumb for real estate since the early 1950s. The average median home price cannot exceed the average income of that area to afford those homes with 1/4 of a person's income. Right now, many homes are priced at valued 50% above their actual value and available income to afford them. Idiots that bought homes in the last 3 to 4 years not omly screwed themselves, but will buckle banks when those home values come crashing down.
It’ll probably make it sky rocket, once people realize that hyperinflation is coming due to the Fed having to intervene in the bond market to make these regional banks solvent…ifnaltion will triple
@@SigFigNewton yes. The bank should be cannibalized for spare parts, people should get their FDIC insured deposits back and then creditors get in line. There is not a lot of sympathy out there for profitless silicone valley start ups. We all know this is where the children of elite over production go to get free money and walk away leaving a mess behind. The rate hikes are not a surprise and both SVB and many of their start ups refused to adjust their burn rate because they are hooked on the heroine.
the tight supply theory is a fallacy, just because homes were bought by investors doesn't make the supply tight, it just means there are tons of vacant homes sitting there cuz these investors want see high returns then sell high. Have you all been to NYC lately? All vacant condos. A storm is coming
@@paxundpeace9970 Supply is only tight because corporate investors are hoarding properties expecially condos in big cities. That's why you feel like everybody's trying to buy a house but it's so difficult
@@paxundpeace9970 Once they start dumping these properties due to financial difficulties you will see massive drop in home prices, but it also depends on the specific area you live in.
There is like 17+ million of those vacant homes. I think a lot, or hell most Air BnB landlords eat it and those flood the market starting second half of 2023. Really only takes a fraction of those 17 million homes to hit the market and crash it all when they only expect about 5 million total home sales this year.
Exactly, people should be extremely skeptical of these kinds of narratives. The talking heads latch on to certain stories irrespective of the reality. Experts and officials are also often wrong or just plain lying. I personally think this housing shortage narrative sounds a lot like two weeks to flatten the curve, one and done, transitory and soft landing. When houses flood the market,they will say ‘oops, how could be have known we were wrong? Everyone thought there was a housing shortage?’ Except they were the everyone pushing the story. This is not my first rodeo.
Love how they cut the realtor from Las Vegas off before she could explain how liberal Californians were moving to vegas to try to avoid paying their ultra high state income tax.
the higher end is more like 60-67% id say . in western states homes were appreciating to much year over year since 2011 ( due to cheap never before seen money) you have to take that into account, even though it was small excess appreciation it added up over 9 years like 20 % over appreciation then in 2020 the blow off top +40%
Private aequity has boughg up our residential properties cheap because they have the cash then gouge renters! Why do you not cover that aspect? They are big!
