Is Dave Ramsey Still Right About The Housing Market in 2023?

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  • Опубликовано: 30 окт 2024

Комментарии • 1,4 тыс.

  • @ChristopherAbelman
    @ChristopherAbelman 6 месяцев назад +738

    With our economy still a hot mess and inflation sticky, U.S. stocks ended Friday’s session in the red with all three major averages notching weekly losses as inflation and global crises intensifies.The Dow Jones Industrial average dropped 1.24%,The S&P 500 shed 1.46%, and the Nasdaq Composite declined 1.62%. Shares are extending a downtrend. I have over $320k in stocks. Currently, my portfolio is down by 15%. Wondering if there are any short term opportunities I can invest in.

    • @HildaBennet
      @HildaBennet 6 месяцев назад

      I'd say the safest approach i feel to tackle it is to diversify investments. By spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown. its important to seek the guidance of an expert

    • @PennyBergeron-os4ch
      @PennyBergeron-os4ch 6 месяцев назад

      This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? I'm in dire need of proper portfolio allocation

    • @PennyBergeron-os4ch
      @PennyBergeron-os4ch 6 месяцев назад

      Thank you for the lead. I searched her up, and I have sent her a message. I hope she gets back to me soon

  • @opticallyaustin
    @opticallyaustin Год назад +455

    I think the point that they’re missing is that first time home buyers and young people desperately want a housing crash. The idea of home ownership is fading away for a lot. Those who already owned can’t believe their good luck and those who didn’t can’t believe their bad luck. Those who owned houses that three years ago were worth 200k but are now worth 400k+ likely could never afford their home at the current price but have no problem wanting a young family, young person, or first time home buyer to pay that price. If you don’t atleast feel a little sorry for young people who are forced to buy a house that is now twice as expensive or pay rent that is twice as expensive without a similar rise in their wages then you’ve lost the plot and need to atleast consider the terrible C.O.L. Conditions young people are having start life in.

    • @kwatl777
      @kwatl777 Год назад +30

      Higher home prices are bad for everyone except real estate brokers and the government. When home prices go UP, property taxes go UP, property insurance goes UP, house repairs go UP and remodeling jobs go UP--all your expenses go UP. So, there is NO change in revenue but COSTS GO UP. And, if you want to sell your home and buy a more expensive home, sales commissions go UP. Your asset gains are only on paper but your expenses will only be higher until you no longer need a home.

    • @Royerdylen
      @Royerdylen Год назад +27

      @@kwatl777 bro that’s great and all
      But people who don’t own homes are far more heavily disadvantaged
      You don’t want to pay as much in sales commission? Sell it cheap. But you won’t, obviously. And guess who gets screwed? My generation
      I get what you’re saying but you’re comparing apples to oranges. You’re talking about an extra couple of thousand a year and we’re talking about a sticker price of $200k-$300k more

    • @a.c.7069
      @a.c.7069 Год назад +9

      @@Royerdylen It's not about generations. It's about the 2020 lockdowns and the interest rates.
      The buyers (not the sellers) are responsible for the higher home prices.
      Most homeowners don't want to sell now. The buyers greatly outnumber the homes available for sale. So, the buyers try to outbid each other, which is what's driving the prices up. Of course, the sellers will take the best offer.
      The market is still crazy where I live. I owned a house that I never wanted to sell. But, I was forced to sell it during the lockdown. Now, I'll probably never own a home again.

    • @Landmantx
      @Landmantx Год назад +8

      Don’t get discouraged. American real estate is still the 7th most affordable real estate market in the world. There are some very expensive cities, but there are many places where a decent income can buy a nice home. In most parts of the world real estate is priced out of reach for almost everyone as incomes are so much lower.

    • @nicholasjohnson4227
      @nicholasjohnson4227 Год назад +3

      Bro, PREACH! That's the reality 100%

  • @conner_productions
    @conner_productions Год назад +244

    It was 9% interest on dirt cheap homes. It then became 3% interest on more expensive homes. And now it's over 7% interest on astronomically priced homes. At some point Dave needs to address just how impossible it's becoming for some people to buy their first home.

    • @Somair6469
      @Somair6469 Год назад +7

      During the 07 housing /Banking crisis i heard the same, House prices rise 10% on avg, well that was BS. Then we were told because of Dodd/Frank we wont have bank liquidity crisis and we are in one. Its the same, its just repetition housing will go down, we just don't know what will trigger it and when. In my neighbourhood prices are up 45-55% in 2 years and some houses are up 60%. Now the only way you can remotely justify if your salary increase was 20% or so per year. Then you should be able to afford these prices.

    • @OpenCourse556
      @OpenCourse556 Год назад

      It kind of makes the whole 100% down idea a bit more likeable. I'd rather save money and earn interest at .next-to-nothing% than not save and pay 7%... Maybe it isn't the most feasible for everyone, but it may work for some.

    • @conner_productions
      @conner_productions Год назад +18

      @@OpenCourse556 huh? You think people who are struggling with high home prices and high interest rates somehow have hundreds of thousands of dollars lying around to pay cash for their homes?

    • @OpenCourse556
      @OpenCourse556 Год назад +3

      @Conner Productions Only if they save their money. It is amazing how much money you can save with no car loans, student loans, or credit cards.

    • @conner_productions
      @conner_productions Год назад

      @@OpenCourse556 You're out of touch with reality. You sound like an AI bot who was forced to watch too much Dave Ramsey.

  • @xlerb2286
    @xlerb2286 Год назад +586

    I know it won't happen, human nature and all, but I'd love to see houses go back to being more about being a place to live and less about being an investment.

    • @terminaterjohn
      @terminaterjohn Год назад +24

      Money over people

    • @anthonypham4001
      @anthonypham4001 Год назад +23

      @@ElectronicHypnotic Agreed. Have been telling people around me the same thing. If society all chose not to get a loan to purchase a home, the prices will drop. Problem is getting everyone on board because people do know how well real estate performs. People are wanting lifestyles they really can't afford. Clearly, we can see that with everyone wanting houses but are being priced out of buying a home especially in hot market areas.
      I want to own a home too, but I am not as willing to risk as much as others to get one. Saving up cash and having no debts is not the worst thing.

    • @Itsadarkworld34
      @Itsadarkworld34 Год назад +6

      Houses are still bought by people who just want to move in them and settle down. For people who see renting better than owning, well, they are for investors 😊

    • @chief5981
      @chief5981 Год назад +2

      That’s a novel idea actually

    • @Whiskey_Jane
      @Whiskey_Jane Год назад +1

      Then people wouldn't take care of them, that's what renting is for.

  • @Landmantx
    @Landmantx Год назад +157

    People are holding on to their low interest rate loans like they are an asset. That is keeping inventory levels very low as people just aren’t moving unless they absolutely have to.

    • @diggernash1
      @diggernash1 Год назад +15

      Too many hot markets make it difficult to develop land. Cut the red tape and let some house get built.

    • @Landmantx
      @Landmantx Год назад +1

      @@diggernash1 I am waiting on 300 lots to finish up as we type. Everything takes longer than it used to for sure!

    • @shinanguo4197
      @shinanguo4197 Год назад +18

      So ppl need to let go of their low payment so you can buy a house?

    • @Landmantx
      @Landmantx Год назад +22

      @@shinanguo4197 No, I was commenting on why there is so little available inventory. There is no way I am selling my home as I have a 2.6% rate. Most people are in the same boat.

    • @henrylee5542
      @henrylee5542 Год назад +6

      It is an asset

  • @LarsBergstrom-uh2eu
    @LarsBergstrom-uh2eu Год назад +323

    In my opinion, a housing market crash is imminent due to the high number of individuals who purchased homes above the asking price despite the low interest rates. These buyers find themselves in precarious situations as housing prices decline, leaving them without any equity. If they become unable to afford their homes, foreclosure becomes a likely outcome. Even attempting to sell would not yield any profits. This scenario is expected to impact a significant number of people, particularly in light of the anticipated surge in layoffs and the rapid increase in the cost of living.

    • @BillAdamson-bp9ff
      @BillAdamson-bp9ff Год назад

      I suggest you offset your real estate and get into stocks, 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 advise but get buying, cash isn’t king at all in this time!

    • @AstaKristjan
      @AstaKristjan Год назад +1

      @@BillAdamson-bp9ff That's correct. My first time of managing my portfolio, I wasn't too pleased with my gains compared to my previous performances, I was doing so poorly, I thought I needed to diversify into better assets, so I got in touch with an investment-advisor. That same year, I pulled a net gain of $550k, which is about 10 times more than I average on.

    • @BarbaraRichstone
      @BarbaraRichstone Год назад +3

      @@AstaKristjan I’ve actually been thinking of reaching a portfolio-adviser, my 401k and stocks been losing everything it's gained since 2019, mind if I looked-up this one coach you use?

    • @AstaKristjan
      @AstaKristjan Год назад +3

      @@BarbaraRichstone Avery Barnes Whidden is the lady's name. I first saw her on a Goldmannsachs interview, then on Smart Advisors, and immediately looked her up on the internet; it was the best decision I've made to stay afloat in these crazy times. She has been outstanding.

    • @JohnHannay
      @JohnHannay Год назад +1

      Insightful. Your counsel couldn't have come at a better moment because I'm currently barely holding on. I'll do some research on her online before calling her

  • @naomiking2442
    @naomiking2442 Год назад +32

    In 1992 the median household income was $30,636 and the median home price was $126,000. In 2023 the median household income is $70,784 and the median home price is $436,000. Incomes are up 2.3x and homes are up 3.5x. If all things were equal, today's median home price should be $361,000.
    Also the above median income is a family's "combined" income, which has seen childcare costs, since the 1990s, up 214%.

    • @tsaunders4684
      @tsaunders4684 Год назад +1

      Where did you get that info from on the median Income?

    • @devonm5037
      @devonm5037 Год назад

      @@tsaunders4684 google it

  • @jennaeckhard194
    @jennaeckhard194 Год назад +39

    The problem I am actively dealing with in the housing market- when a house is within’ my price range that is move in ready. I’m at a bidding war with other competitors. Hell, I tried booking a showing after a few hours of being on the market they stated they needed 24 hours in advance. We said okay, booked the following day. Got a call 15 mins prior to showing that the sellers accepted a cash offer above listing. THIS is the problem. Investors are buying up all these houses to renovate and then sell for double the price they bought. Younger generations do want to buy a home, but aren’t given the opportunity unless you pay an outrageous amount above what you are comfortable doing.

    • @RuneToi
      @RuneToi Год назад +2

      Holy I feel this on an emotional level :(

    • @lyndahammel9502
      @lyndahammel9502 Год назад +4

      Keep at it and consider a slightly fixer upper home. My daughter finally found a fixer upper that no one else was interested in. She was able to negotiate the price down as no one else wanted a fixer upper. She had to replace carpet and fix a few holes in the wall and repaint. But overall the house was solid. She rented out one bedroom for several years to help with expenses. But she's now a homeowner with a place within her budget.

    • @KatieLHall-fy1hw
      @KatieLHall-fy1hw Год назад +1

      @@lyndahammel9502this is a great idea! But I will also say, being on the hunt for a house myself, there are many reasons to not get a fixer upper, too. It just depends. Good for your daughter though

    • @mommaoinnh2674
      @mommaoinnh2674 Год назад +2

      Look for the ugliest home no one wants & make an offer. Then fix it & do landscaping over time. Don’t look for move in ready.

    • @mommaoinnh2674
      @mommaoinnh2674 Год назад

      @@lyndahammel9502 Yes, my son & his wife (mid 30’s, near Boston) did the same. Problem is younger generation wants everything perfect. They don’t want to paint, scrape windowsills, yank out carpet. They grew up having everything done for them. Need to be realistic, not compete with those seeking higher priced perfect homes.

  • @marshall2.015
    @marshall2.015 Год назад +122

    The "2008 housing crash" took 5 years to play out from top to bottom.

    • @nathanbangs1012
      @nathanbangs1012 Год назад +8

      Yea I say this all of the time! “Crash” that’s takes 5 years

    • @ron2280
      @ron2280 Год назад +2

      In my area real estate prices hit bottom in late 2010. All of 2011 was a tremendous buying opportunity. By late 2012 there were other bidders driving prices up on foreclosures and estates. Prices climbed steadily until 2021 then spiked ridiculously and leveled off late 2022. They've been fairly stable this year.

    • @steveomahony050
      @steveomahony050 Год назад +1

      Yes exactly. Real Housing prices when adjusted for inflation peaked last year and have started to come down. Nominal prices have come down marginally but as you said, these things take years to play out. When the recession hits and they drop rates back down to zero thats when you'll see nominal prices follow real prices and start to come down. No the shortage of housing will not keep housing prices up because the demand will be destroyed when the banks tighten lending during the recession and unemployment goes >10%. Cheap money at zero% does not mean loose money.

    • @willl5250
      @willl5250 Год назад +2

      Can you make it 1 year? Asking for a friend

    • @BishopGSD
      @BishopGSD Год назад

      between population collapse and 70% of usa gdp being simple interest on househould debt only a fool would say there's no crash happening.

  • @chesspwn7457
    @chesspwn7457 Год назад +110

    6% interest is fine when houses are 3 times your yearly salary. 6% hurts a lot more when those same houses are 5 times your yearly salary now. This situation is the thing that Dave seems to ignore when he talks about "back in my day we did fine with rates higher than these" Cause the monthly payments for those houses at 9% were less burden than houses a year ago at 3% cause the base house price is so much higher now.

    • @kylecrisman9230
      @kylecrisman9230 Год назад

      You can’t do ratios with the boomers They don’t get it. Anyone over sixty still says when I bought a home I paid 12 percent interest Ok you bought a new home, car and whatever else you needed for 50k and made 13 to 15 dollars per hour. Now a run down dump is 500k new cars are 60k and your making 18 an hour. People just can’t do ratios

    • @johndone8045
      @johndone8045 Год назад +11

      Exactly, hes so wrong on that

    • @VenerableBede2510
      @VenerableBede2510 Год назад +14

      You’re right. A 20 % mortgage on a 40,000 house isn’t as steep as a 5% mortgage on a 400,000 house

    • @blackspiderman1887
      @blackspiderman1887 Год назад +9

      One of the few smart comments. I like Dave strategy in getting out of debt but he's out of touch with what's happening in housing market. Please keep this video for after it creates in 3 years. Last housing bubble took 5 years to crash. By the way, houses today are 8x your yearly salary. years ago it was 4x your yearly salary

    • @jorgealvarado7946
      @jorgealvarado7946 Год назад

      Not everything Dave says applies. At the end of the day, it’s good to hear what people in his position have to say, because they do partake in the market itself. Maybe a “crash” isn’t coming, but a definite decline is here. It’s economical cycles.

  • @stevensmiddlemass2072
    @stevensmiddlemass2072 Год назад +241

    With rates climbing like never before in ’23 coupled with uncontrollable inflation, and our own mortgage at now 7.5% what are the best alternatives/strategies for avoiding a crunch and maximize my $600k savings other than moving in to an RV with my two kids and wife.

    • @Curbalnk
      @Curbalnk Год назад

      You are not alone we can no longer afford our mortgage, husband wants us to travel or relocate/I am proposing cashing in, walking away and renting while putting the rest in the stock market.

    • @velayuthman
      @velayuthman Год назад

      this is quite huge ! what have you invested in ? much more info needed please ...

    • @velayuthman
      @velayuthman Год назад

      excellent share, just inputted her full name on my computer and searched online, top-notch credentials. Ive seen commentaries about advisers, but not one looks this phenomenal

    • @ariston5433
      @ariston5433 11 месяцев назад

      My husband and I had a 7.74 mortgage rate when we purchased our home in 1993 that was considered pretty average after coming off of years of inflation where interest rates on mortgages were as high as 18 percent. But we did not buy a super expensive home we bought the typical starter home of 1650 square feet 3 bedroom 2 bath. After a few years we felt fortunate refinance it at 5.50 percent. These 1 and 2 percent mortgages were unheard of since the 1950s. 6.5 percent is more average and normal.

    • @Captaine_Crunche
      @Captaine_Crunche 9 месяцев назад

      you can create your own family, there's always a way.@whitegd4100

  • @WheresWaldoProd
    @WheresWaldoProd Год назад +66

    I hate the 9% on a 80k home compared to the 3% on a 480k home argument. It feels deceptive and blind when Dave and his crew compare interest rates then to interest rates now. They’re not the same base number with which the rate is calculated on.

    • @jesseshooter4403
      @jesseshooter4403 Год назад +15

      It's not deceptive, it's just plain stupid.

    • @robloxvids2233
      @robloxvids2233 Год назад +2

      Your comment makes no sense. It's scary that 8 people gave thumbs up, too. Yikes.

    • @Al_Sayid_Sanad
      @Al_Sayid_Sanad Год назад +6

      @@robloxvids2233 how does it make no sense?

    • @moa9640
      @moa9640 Год назад +9

      i get what you're saying.. but.. if you're going to do that you have to compare household incomes from then until now also
      if you made 100k in 1990, you were the top 5%
      if you make 100k now, you are average at best

    • @marzero116
      @marzero116 Год назад +2

      Not only that, they don't consider how much less buying power we have now. the number of hours you had to work back then to afford a house versus how many hours you have to work is insane.

  • @abrahamflores2566
    @abrahamflores2566 Год назад +59

    Feel bad for the hard core Dave Ramsey followers that got stuck saving money like crazy people to be able to afford a 15 year mortgage. If only they had taken out a 30 year mortgage prior to 2020.

    • @oneeyedman99
      @oneeyedman99 Год назад +9

      Dave's advice isn't 100% financial, it's more like 50% finance and 50% psychology; looked at that way, it's damn good. If they were motivated to save more than otherwise, they probably still came out ahead.

    • @GETole
      @GETole Год назад

      LMAO.

    • @bvee4952
      @bvee4952 Год назад +3

      ⁠@@oneeyedman99how so? If you were just simply saving in a savings account over the last 3 years there is no possible chance you covered for inflation, plus now your looking at an interest rate up to 7.5% instead of 2-3% a few years ago. How is that ahead?

    • @Thegoodlife4me
      @Thegoodlife4me Год назад +11

      Facts. I did first time homeowners program. Didn’t put down a dime. It was a moderate fixer (which I planned for) Did the kitchen. Moved right in. Big ranch-big land-I’m BIG HAPPY. Bought a year ago. 4.5% interest. I refused to sit and wait. When I heard it was a “Reset” I wasted no time. I had bad credit too. FIXXED it all during the pandemic and bought! Period. I think people must be independent thinkers and do what’s best for them and theirs.

    • @abrahamflores2566
      @abrahamflores2566 Год назад +1

      @Eric Blair yeah but you have to look at the bigger picture and realize Daves 15 year mortgage advice is very delusional. For 5% of his audience that make well into the 6 figures they can afford to get a 15 year mortgage but for 95% of the population it will require downpayments between 30-50% to be able to afford the 15 year mortgage and keeping the payments under 25% of take home pay. Most people cannot move hundreds of miles to buy a $150k house in the middle of nowhere and even buying a torn down house in the $250k zone will require a very substantial downpayment even for good earners.

  • @robloxvids2233
    @robloxvids2233 Год назад +92

    Remember when Dave was like a year late in acknowledging inflation? Genius.

    • @BadBrad119
      @BadBrad119 Год назад

      He was still predicting it a year ahead of the government/feds. But you could say that they knew but never told us

    • @jasondespain1
      @jasondespain1 Год назад +2

      @@BadBrad119I think anyone with a brain didn’t need the Fed to acknowledge anything for us to know.

    • @blackworldtraveler3711
      @blackworldtraveler3711 Год назад

      Only broke people with debt need to acknowledge it.

    • @andyoohhh2061
      @andyoohhh2061 Год назад +1

      He also said to not buy gold. This guy is a complete idiot.

    • @Sonofawildanimal4241
      @Sonofawildanimal4241 Год назад +4

      Home prices increased by 40% in less than 48 months. Why are we acting like that is normal?

  • @Hades-in5jy
    @Hades-in5jy Год назад +8

    Average salary in US is 70k and average home in US is 350k. I don't know how long this will last but it can't be long before defaults starts.

    • @mg-by7uu
      @mg-by7uu Год назад +1

      It'll last until people's credit cards are maxed

    • @gibsonator4849
      @gibsonator4849 Год назад

      And majority of people middle class are living together paying bills split

    • @Hades-in5jy
      @Hades-in5jy Год назад

      @@gibsonator4849 Of course. But do the math just in mortgage, that just about takes all your money. Now add groceries, fuel, electricity, water and sewer. If you have children even worse. Either this collapses again or like much of Europe a few will own everything and all of us will be renting.

    • @uservemewell
      @uservemewell Год назад

      It is completely unsustainable greed. The chickens will come home to roost soon, as they say.

    • @blackworldtraveler3711
      @blackworldtraveler3711 Год назад

      @@Hades-in5jy
      Heck I own two homes in Europe and my primary home is in Oklahoma.

  • @sprintkick9793
    @sprintkick9793 Год назад +77

    Housing values and rates are absolutely ridiculous. The Feds saw to that during COVID. Buying a $350K house for $500K is not only infuriating but completely unacceptable.

    • @RyanVoelkel
      @RyanVoelkel Год назад +8

      That’s what happen when they print trillions of dollars and debase the dollar - hard assets seemingly “appreciate” in value. More printing in the near future

    • @debbie12346
      @debbie12346 Год назад +4

      They are selling 400K houses here for 1M. 😩

    • @RyanVoelkel
      @RyanVoelkel Год назад +1

      @@debbie12346 buy Bitcoin and hold. Everything trends to zero against Bitcoin. You’ll then be able to buy pretty much whatever house you want in 1-2 decades

    • @kendrickwynn1870
      @kendrickwynn1870 Год назад

      Short sighted, thinking about 5 years from now.

    • @RyanVoelkel
      @RyanVoelkel Год назад

      @Westley Williams why are they stupid? If they’re buying they can afford it. And in the process they trade garbage fiat money for a hard, scarce asset

  • @Evelyn32423
    @Evelyn32423 11 месяцев назад +97

    The fact that there is already an excessive amount of demand awaiting its absorption, despite how everyone is frightened and calling the crash, is another reason why it is less likely to occur that way. 2008 saw no one, at least not the broad public, making this forecast, as I'll explain below. The ownership rate was noted to have peaked in 2004 in the other comment. Having previously peaked in the second quarter of 2020, we are currently at the median level. Between 2008 and 2012, it dropped by 3%, and by the second quarter of 2020, it had dropped from 68 to 65.

    • @Hudson367
      @Hudson367 11 месяцев назад

      Investing in both real estate and stocks can be prudent choices, particularly when backed by a robust trading strategy that can navigate you through prosperous periods.

    • @Hazel5063
      @Hazel5063 11 месяцев назад

      You're not doing anything wrong; the problem is that you don't have the knowledge needed to succeed in a challenging market. Only highly qualified professionals who had to experience the 2008 financial crisis could hope to earn a high salary in these challenging conditions.

    • @Scarlett34568
      @Scarlett34568 11 месяцев назад

      Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.

    • @Hazel5063
      @Hazel5063 11 месяцев назад

      Actually, I'm not sure if I'm allowed to mention this, but I'd recommend looking up CATHERINE MORRISON EVANS because she was a big deal in 2020. She manages my portfolio and serves as both my coach and my manager.

    • @Scarlett34568
      @Scarlett34568 11 месяцев назад

      CATHERINE MORRISON EVANS profile appears to be fairly knowledgeable, therefore I must say that I value the advice. After locating her online, I thoroughly read through her resume, educational background, and qualifications, and I must say that they were quite impressive. We have set up a meeting after she replied to my message.

  • @autistic-lutheran-carnivore
    @autistic-lutheran-carnivore Год назад +62

    Dave Ramsey is still dodging the issue. For first time home buyers, both spouses have to be making above six figures to afford a 15 year fixed rate mortgage where the payment is no more than 25% of take home pay. For a single person, they are priced out of the market unless they are making like $200k/yr. "Your expectations are too high." Yeah, you should live in that crime ridden neighborhood where the previous owners were shot through the window in a drive by shooting or live 5 hours away, in another state to commute to work. Dave Ramsey is so out of touch it is unbelievable.

    • @jedispice8040
      @jedispice8040 Год назад +5

      He's not forcing you to meet his expectations. They are his and you can have yours and carry out yours. I've listened to Dave for almost 10 years and have never used a 15 yr mortgage nor EVER put down more than 3%.

    • @Ryan_DeWitt
      @Ryan_DeWitt Год назад +5

      @@jedispice8040 This is the thing. Like you said you can agree with 90% of someone says but you don't have to agree with them on everything. For a lot of people, it seems I either have to go no compromise 100% or nothing. Life rarely works that way and I can think of almost no one that I agree with 100% on everything.

    • @donhill1825
      @donhill1825 Год назад +1

      And out of warranty used cars need $10,000 worth of repairs & maintenance every month. That's why everyone should finance a $50,000 Kia. We know, we know...

    • @dannywaider
      @dannywaider Год назад +2

      @@donhill1825I’m curious, what cars cost that much in repairs and maintenance a month? I have a 2015 Hyundai sonata with no warranty, a bunch of miles, and it costs me maybe 150$ a month in gas, and sometimes not even that. A year I can see, but a month? That just seems like a bad decision by that individual.

    • @Etharel
      @Etharel Год назад

      He has repeatedly said first time home buyers don't always apply with this rule and it is ok.

  • @TrueNewb
    @TrueNewb Год назад +82

    Problem with this is the country hasn't seen bottom yet. People haven't lost their jobs and the ones who paid 100k too much for their houses and over sticker for their cars haven't tried to sell them yet. When that happens and they realize they can't dump them and they can't afford them then that's when the defaults happen. So no Dave you aren't right, not yet at least.

    • @DatBoiLui
      @DatBoiLui Год назад +7

      There is not enough houses in Houston. A house down the road from my in laws sold in less than 2 months. Idk about the rest of the country, but I don't see a house crash happening in my area

    • @DB-bw5fz
      @DB-bw5fz Год назад +5

      Maybe the bottom has come and gone already? The thing is, no one knows what exactly what is going to happen in the future. I’m in Canada, and everyone here expected the market to crash somewhat in tandem with the US back in 08/09. Some areas saw slight corrections yes, but as a whole, there was no crash. We bought our house around 2011, and technically overpaid by around $15k. People thought we were crazy, as everything was going to crash. Fast forward to today….the value of homes in our area hasn’t quite doubled since then, but they have not gone down. We have since paid off our house and seen our living expenses drop significantly at a time when most are rising. I’ve run the numbers, and including all interest paid, maintenance and improvements made….we are right around the break even point with the market value of the home. Our home was an investment in ourselves, and not a financial one, even though it ultimately became one.
      I never followed Dave’s plan persay…although since most of it is simply common sense, we followed most of the principles. We are now completely debt free with a paid for house, and have absolutely no regrets about any of it. We bought what we were comfortable with, and said to hell with what society felt we should be doing based on our incomes. Sure, cost of items has increased quite a bit in the last while, but like has been said, it’s merely an inconvenience instead of a crisis when you have no other obligations. Extra $200 a month in fuel costs sucks….but it sucks a lot more when its coupled with an additional $200 a month vehicle payment, and an additional $500 in debt payments due to increased interest rates.

    • @Kurplode
      @Kurplode Год назад +2

      @@DatBoiLui Houston has come down quite a bit from what I’ve seen. I couldn’t find anything under 340,000 in 2022 now I’m seeing stuff for around 270,000

    • @agnieszkabalchan8467
      @agnieszkabalchan8467 Год назад +2

      @@DatBoiLui In NY houses are selling in one weekend with 60 offers it is insanity

    • @VenerableBede2510
      @VenerableBede2510 Год назад

      YET 😂

  • @MAMP
    @MAMP Год назад +70

    Choices now in my area: Put 15% down, and pay $3000 to $3500 per month on a mortage (not happening) OR continue to rent for about half of that and enjoy my life. I don't care if Dave is correct right now or, its not AFFORDABLE, especially by Dave's 25% of monthly income rule.

    • @ElBadu
      @ElBadu Год назад +3

      That makes no sense. Are you renting the equivalent of the space you would buy?

    • @CapPointer
      @CapPointer Год назад

      That 1/2 will be 2/3 in two years. & that’s $1750 for 24 months down the drain.. 42K

    • @trevorcunningham4122
      @trevorcunningham4122 Год назад

      ​@@ElBadu Can you read?

    • @patty109109
      @patty109109 Год назад +6

      @@CapPointer classic mistake. If he takes out a mortgage, most of his money will be interest. How do you still not understand this?

    • @CapPointer
      @CapPointer Год назад +1

      @@patty109109 & if he rents does he gain interest? Equity? Can you recoup that 42K? Does it boost your credit? What happens after the 2 years? Do you own a portion of the rental?

  • @AB-sy4gx
    @AB-sy4gx Год назад +11

    The inventory shortage is artificial. It’s created by investors buying up property not real families.

    • @mpowe123
      @mpowe123 Год назад

      That has to end. Same for foreign entities, which notably occured in Vancouver, BC
      Single family homes should be citizen and permanent resident owned only.

  • @mfbikle
    @mfbikle Год назад +50

    My only issue is when real estate was 15% back in the day average homes weren’t $400,000

    • @Simon-talks
      @Simon-talks Год назад +2

      people weren't getting paid 87k per year to thumb through facebook all day in an office job either

    • @blackworldtraveler3711
      @blackworldtraveler3711 Год назад +1

      You don’t need to buy a $400k home.
      Buy/rent what you can afford.

    • @blackworldtraveler3711
      @blackworldtraveler3711 Год назад

      @qwerty
      All about choices.
      I don’t live in areas like that.

    • @Tricia2023
      @Tricia2023 Год назад

      Exactly they were only 75k to 150 k

    • @austinwilson2268
      @austinwilson2268 Год назад +1

      ⁠@@Simon-talks sure, but there are tons of studies on how much further each of their dollars went than ours do now.
      A bigger salary number today doesn’t = more buying power.
      The reality is their buying power in relationship to real estate prices were still significantly better than our ratio today.

  • @mf2652
    @mf2652 Год назад +14

    My wife and I are trying to get into our first property and the impact investors have has made it painful. The pressure they exert on the market pushes prices higher and trickles down to increased rental prices. My proposed solution: you shld be forced to disclose if your planning to live in a property or are an investor when offers are submitted. A seller should be incentives to sell to someone who's going to live there via substantial tax breaks. Conversely, investors should be heavily taxed. A home is primarily a necessity for human survival. If you are actively impeding someone from attaining necessities of life in the midst of a crisis, that's just wrong. We'd never allow it for any other vital commodity, yet we allow it with housing...

    • @Steve-pg6jh
      @Steve-pg6jh Год назад

      Your suggestion would raise rental prices further!

    • @VDVega13
      @VDVega13 Год назад

      Out of the 82 Millions single family homes, Investors own 25% (20 Million).

    • @ihaveadreamformykids4400
      @ihaveadreamformykids4400 Год назад

      Owning a rental property is a tax deductible.

  • @justinhindman5834
    @justinhindman5834 Год назад +13

    Houses have doubled in price in the span of 2 yrs. So 6% on $450,000 compared to 15yrs ago that same house being $200,000 is not even comparable.

    • @blackworldtraveler3711
      @blackworldtraveler3711 Год назад

      Home prices didn’t double where I live.
      Can buy a newly built home for $200k.
      Food prices didn’t double.
      Gas didn’t double and currently $2.95/gal.

    • @mailmanjoe
      @mailmanjoe Год назад

      ​@@blackworldtraveler3711 I want to know where the hell you live to get that. Sounds to me like your trolling. Everything went up for everyone in America.

    • @blackworldtraveler3711
      @blackworldtraveler3711 Год назад

      @@mailmanjoe
      Many areas of Midwest and south central U.S..
      Look it up.
      Gas is $2.86/gal today where I live.
      New 3bed/2bath/2car construction starting at around $200k.
      Nobody here is complaining about food,rent,gas,and home prices

  • @blackspiderman1887
    @blackspiderman1887 Год назад +1

    People don't realize the more expensive a home is, the less profit your will make on renters. If your home cost 400k but you only charge 2000 a month. You're making 24000 a year minus whatever interesr you're paying on that loan. That like maybe 5% your profiting. Thats not including upkeep. So it will take you 20 years to break even on your home. So the only real money you'll gain is off the appreciation of the home. You better hope and pray the market don't crash on 20 years. If it crash in 10 years then rise again in 10. You basically made no profit. And good luck trying to charge 4000 a month rent to make a profit

  • @Dee-w5y
    @Dee-w5y Год назад +4

    Homes for sale in my area of Florida are declining rapidly. Some starting at $189,000.

  • @KungPowEnterFist
    @KungPowEnterFist Год назад +6

    Exactly what the pumpers were saying all of '06 and most of '07. People that are heavily invested in real estate are always going to say there is too little supply, current mortgage rates are low vs 1982, home prices always go up vs the most recent crash, you are missing out, blah, blah, blah. They are talking their book. Real estate cycles are very slow. Topping and bottoming takes many years to play out. It feels like early/mid '07 right now. Market didn't bottom until late '10 or early '11, about 3-4 years later. All along the way the Ramsey's of the world talked their book and tried to FOMO in as many people as possible on the way down. Lots of destroyed lives, divorces, suicides, etc., resulted. Unless you bought well before 2021 and locked in the lower principal, lower interest, lower property tax basis, etc., you are better off being a renter/live with parents right now. You will lose a heck of a lot less money that way. Save your coins and build your credit. Opportunity will come. I would say late 2025 at the soonest. In the meantime, enjoy not having to massively overpay for a new roof, painting, and all the other wonderful things that come with home ownership. Bad neighbors? Move away. Kitchen catch on fire? Move away.

  • @chime-girl
    @chime-girl Год назад +7

    Houses here in Cali start at 575K with 6% interest averages around $4K a month on for a 2 bed/1 bath/900 Sq ft. It's not the interest rate, it's' the inflated house prices nationwide. Dave is not talking about the job market which has soften, that's the issue, when folks can't afford their mortgages due to job loss.

    • @lisabaltzer4190
      @lisabaltzer4190 Год назад +1

      I thank God every day that I escaped California 19 years ago. Idaho has been a blessing for me.

    • @chime-girl
      @chime-girl Год назад +1

      @@lisabaltzer4190 you were smart. I stayed too long.

    • @joshuaisrael2494
      @joshuaisrael2494 Год назад

      Then leave California. Move away.! Northeast, Ohio (Cleveland) homes on average are 200k. My family lives in Cleveland, Ohio because of affordability. My parents live in Oregon and they even told me to move to Cleveland.

    • @chime-girl
      @chime-girl Год назад

      @@joshuaisrael2494 You missed my point. Job losses will affect the job market and that will happen which is something Dave is not talking about. Then I can move out of Cali once the housing market softens and it won't be Ohio or California. Good luck in Ohio snowbird.

    • @christophernava6685
      @christophernava6685 Год назад +1

      @@lisabaltzer4190 I'm stuck here at least unit my son turns 18, might as well get my pension from current job a retire somewhere else.

  • @yevgeniysivyy555
    @yevgeniysivyy555 Год назад +4

    What goes up will always come down. What we have today has never happened so we should expect what we haven’t seen yet. I think being debt free, small monthly payment, a job and side hustle will get you through. Budgeting is very important.

  • @78town
    @78town Год назад +11

    $80,000 in 1990 is worth about $180,000 today after inflation… Dave, good luck getting a decent house for that price today. Not a good comparison.

    • @FooFan-b3k
      @FooFan-b3k Год назад

      It all depends on where you chose to live.

    • @watsonanthony8438
      @watsonanthony8438 Год назад

      @@FooFan-b3knope that’s overall. Compare anything to 1960s. 😅😅

  • @TheUshman007
    @TheUshman007 Год назад +2

    I bought my first 3 family in 1997 at 8.25%. It was a good percent. The difference now is that same house value right now is 600k. I would never buy a house right now.

  • @sethbender2863
    @sethbender2863 Год назад +3

    The house prices are unacceptable right now. Like it’s unattainable for most young adults now of days where, 5 years ago it was

    • @_S_J_
      @_S_J_ Год назад +1

      Most people. Not just young adults.

  • @stevebaughman1163
    @stevebaughman1163 Год назад +2

    For one solid year houses have dropped ---- 10% in some city from May 2022 to May 2023. but Dave said it would ONLY go up.
    He did NOOOOOTTTT predict exactly happened. Pleeeeeease go back and watch it. he said it would only go up for the next five years!
    Phx is down 8% since he said this....and it is gonna go down even more after the spring seasonal bump.

  • @machdave1
    @machdave1 Год назад +73

    I have to give Dave credit. Two years ago I was apprehensive about the housing market but I took Dave's advice and went ahead and bought a house. Locked in 3% 30-year fixed and my home has appreciated almost $200k in market value. Thanks Dave.

    • @ImDahDude
      @ImDahDude Год назад +3

      You’re not debt free so you shouldn’t be buying houses

    • @truth.speaker
      @truth.speaker Год назад +14

      ​@@ImDahDudeenvy much?

    • @Dark_Souls_3
      @Dark_Souls_3 Год назад +1

      @@ImDahDude stones in a glass house, cool dude!

    • @siva47931
      @siva47931 Год назад +16

      Dave's advice is not taking a 30 year mortgage. However if you waited until you could afford it on a 15 year you may have missed out on $200k worth of appreciation.

    • @steelcastle5616
      @steelcastle5616 Год назад +5

      Regardless...sell your car and eat some rice and beans!

  • @talented009
    @talented009 Год назад +655

    The market trend can turn around very quickly. In fact, the indexes often switch from a bear market to a bull market when the news is at its worst and the mood of investors is at its lowest point. I read an article of people that grossed profits up to $150k during this crash, what are the best stocks to buy now or put on a watchlist?

    • @Adukwulukman859
      @Adukwulukman859 Год назад

      Investors should be cautious about their exposure and be wary of new buys, especially during inflation. Such high yields in this recession is only possible under the supervision of a professional or trusted advisor.

    • @ThomasHeintz
      @ThomasHeintz Год назад

      True, initially I wasn't quite impressed with my gains, opposed to my previous performances, I was doing so badly, figured I needed to diverssify into better assets, I touched base with a portfolio-advisor and that same year, I pulled a net gain of $550k...that's like 7times more than I average on my own.

    • @DarleneMurphy774
      @DarleneMurphy774 Год назад +1

      @@ThomasHeintz that's impressive!, I could really use the expertise of this advisors , my portfolio has been down bad....who’s the person guiding you.

    • @ThomasHeintz
      @ThomasHeintz Год назад

      @@DarleneMurphy774 Laura Marie Ray is my portfolio-coach, I found her on Bloomberg where she was featured, I looked up her name on the internet. Fortunately I came across her site and reached out to her, you can verify her yourself.

    • @esther.74
      @esther.74 Год назад

      @@ThomasHeintz I curiously looked up Laura Marie Ray online and researched her accreditation. She seem very proficient, I wrote her detailing my Fin-market goals

  • @vikthequick
    @vikthequick Год назад +21

    Love it when Ramsey and company implore us to ignore social media ...and then do entire segments ranting about what they saw on social media 🙄.

  • @Matthew-ip6xl
    @Matthew-ip6xl Год назад +2

    The DAYtA as Dave proudly says still indicates shit is going to come crashing down. We’ve managed to prolong and stay afloat, but make no mistake this is not sustainable.

  • @e79422
    @e79422 Год назад +14

    All I see these days are condos and apartments being built. Almost no houses.

    • @stamps4fungin
      @stamps4fungin Год назад +3

      No room for houses here in CALIFORNIA

    • @blackworldtraveler3711
      @blackworldtraveler3711 Год назад +1

      Probably because you’re not in the Midwest or south central.

    • @e79422
      @e79422 Год назад +1

      @@blackworldtraveler3711 I live in Ohio. The condos are built so cheap it's disturbing. Selling for over 500K for tiny two bedroom.

    • @blackworldtraveler3711
      @blackworldtraveler3711 Год назад

      @@e79422
      Where the expensive cities are.

    • @blackworldtraveler3711
      @blackworldtraveler3711 Год назад

      @@passive101
      You must be talking about apartments.
      Condos I’m familiar with don’t work that way. They are owned by the homeowner.

  • @ttaushu
    @ttaushu Год назад +2

    It's too early to say it won't go down and we were right. The inventory is tight because the fed rates are high and no one wants to sell right now. People who wanted to sell have already done so. As soon as the fed rates come down, you will see a rise in home availability. Wait for the crash.

    • @amireallythatgrumpy6508
      @amireallythatgrumpy6508 Год назад

      People have been waiting for a decade

    • @ttaushu
      @ttaushu Год назад

      Has it been an entire decade? Did not know..... Been busy with inflation and fed rates. Time flies lol!

  • @vizerdown
    @vizerdown Год назад +3

    One thing they are not mentioning is salaries are not keeping up with housing and interest rates. Actually I never see anyone mention this. Eventually this will come in to play. Wont be a crash but houses will have to come back down, buyers will dry up and its starting. People cant afford the market right now especially new home buyers.

  • @ruckus1713
    @ruckus1713 Год назад +7

    This feels more like the shift that has occurred in the automobile market within the past decade or the "buy now, pay later for just about anything" trend where consumers will ultimately end up in homes that should be considered out of their budget because lenders will create new "tools" to make housing seem more affordable. That scenario is way more likely to lead to the crash current homebuyers are hoping for than anything we're seeing now, albeit a reality we're still years away from.

  • @aaronfisher7159
    @aaronfisher7159 Год назад +15

    7% on 400k is drastically different than 9% on a 120k house 15 years ago

    • @blackworldtraveler3711
      @blackworldtraveler3711 Год назад

      You can buy a $120k home now where I live.
      All about choices,

    • @aaronfisher7159
      @aaronfisher7159 Год назад +5

      @@blackworldtraveler3711 the only thing in that price range where I’m at are houses that have been condemned and are about to fall down

    • @blackworldtraveler3711
      @blackworldtraveler3711 Год назад

      @@aaronfisher7159
      It’s a 700 sq.ft. 1bed/1bath condo in a gated community with your own laundry room and fireplace here.

    • @hartsickdisciple
      @hartsickdisciple Год назад

      @@blackworldtraveler3711 If enough people make the "choice" to live in an area with cheap housing, the housing won't stay cheap. Your logic fails. People have to live where they can work.

    • @blackworldtraveler3711
      @blackworldtraveler3711 Год назад

      @@hartsickdisciple
      I’m talking about individual personal choices like education,career choice income,,debt,family planning,lifestyle,etc. not what other people are doing.
      Choices are more than just living in cheap housing and worrying that it won’t stay cheap. It’s the choices and decisions that started in high school that gotten you to where you are in life now.
      You have to live where you can work.
      Not me.
      I created my own path with choices to work where I wanted to live with growth and appreciation.

  • @lawsonsealey1911
    @lawsonsealey1911 Год назад +10

    But it’s not gonna be a housing crash, it’s gonna be a US dollar crash and deflation. As a result, prices of homes, relative to gold, will crash harder than ever. They just need to look one step beyond current home supply and demand.

    • @tann_man
      @tann_man Год назад +2

      Not necessarily. It's possible we inflate to keep kicking the can farther and trap ourselves in the inflationary feedback spiral until the dollar is meaningless. That's what we did for 08.

  • @rogerstone1842
    @rogerstone1842 Год назад +66

    The housing prices are going up faster than any working person could save. I was really hopeful of my investments this year, but all my plans have been disoriented, I've been studying the market crashes and I realized some investors made millions from the recent 2008 recession and I was wondering if such success rate could be achieved in this present market. Any recommendations?

    • @Jennnparker
      @Jennnparker Год назад +1

      Cryptocurrency crashed the last couple years, so it should be starting a new run to a new high.

    • @RandyPelletier
      @RandyPelletier Год назад

      Throw it into medium term fund / Hold some in gold and some AI stocks. This summer will be very bad for food & housing. I grew to a 7 figure well-diversified portfolio having exposure to different prolific investments mainly stocks, precious metals, and high yield dividend funds. ever grateful to Trisha Jean Webb my F.A... she is super helpful to a lot of beginners out there.

    • @rogerstone1842
      @rogerstone1842 Год назад

      @@RandyPelletier Did a quick web search, she is very impressive , I wrote her and I'm waiting on her reply.

    • @jeromecrockett2311
      @jeromecrockett2311 Год назад

      I'm seeing prices dropping in my area....

    • @jeromecrockett2311
      @jeromecrockett2311 Год назад

      It's a illusion right now... Wait to July

  • @ronyalemerrill
    @ronyalemerrill Год назад +1

    An un-liveable property in North Georgia is minimum 250k. Most basic properties 2 bed/2bath no yard starts at 320k. There is NOTHING that we can afford in Georgia.

    • @jeromecrockett2311
      @jeromecrockett2311 Год назад

      And that's the problem he doesn't get.. people can't afford that bullshit, it's coming down

  • @JSM.
    @JSM. Год назад +22

    Yea rates were 9% in 1990 but average price was under 80k. Nice one Dave

    • @78town
      @78town Год назад +1

      Well that’s because you didn’t factor in inflation lol prices are always less in the past because of inflation. Basic economics.

    • @JSM.
      @JSM. Год назад +5

      @@78town and? No one is disputing anything. Im just pointing out the stark diffence between rates being close to 30 years ago except prices are 5x higher. LoL

    • @kloften6792
      @kloften6792 Год назад +1

      I purchased a brand new house 1800 sq ft, in 1995 for 96k at 8.0%.

    • @JSM.
      @JSM. Год назад

      @@kloften6792 that's awesome

    • @kloften6792
      @kloften6792 Год назад +1

      @@JSM. - It wasn't awesome because I sold it way too early. I made 30 grand on it and thought I was rich. In stead of selling it, I should have rented in out until it was paid in full.

  • @hartsickdisciple
    @hartsickdisciple Год назад +30

    There are several problems with Dave's take on this. He's taking a victory lap when it's definitely not warranted. Here are the 2 main issues I have:
    1) When interest rates were 10-11%, housing didn't cost nearly what it does now, relative to the median income. Interest rates matter, but not as much as purchase price. You can probably refinance and get a better interest rate later. You can't lower the purchase price once you've signed the contract.
    2) The market data I've seen shows that the markets with the largest price increases are also the ones with the largest declines over the past 10-12 months. You can't look at a market like Austin, for example, and say there was no bubble. There was (and still is) a bubble. Prices in that market have already dropped 10-12% over the past year, and there's still a lot of new supply.

    • @shrimuyopa8117
      @shrimuyopa8117 Год назад +5

      He taking a victory lap before the year is even over.

    • @jaybartgis5148
      @jaybartgis5148 Год назад

      Even if he ends up being theoretically wrong: you still can't even do a victory lap. What strategical value did you gain "buying low"when you're literally paying an 11% rate?

    • @hartsickdisciple
      @hartsickdisciple Год назад +1

      @@jaybartgis5148 A person with a high interest rate can potentially refinance later to a lower rate. Once you agree to a purchase price, that's it. There's no changing it. This is why purchase price is more important than interest rate.

    • @jaybartgis5148
      @jaybartgis5148 Год назад

      @hartsickdisciple then why arent you buying right now bro?

    • @hartsickdisciple
      @hartsickdisciple Год назад

      @@jaybartgis5148 Because I don't think prices have bottomed out yet. Right now prices are up slightly from earlier this year, and I think that's seasonal. Spring/summer are the hot months for the housing market. I'll wait until this winter to see what happens. I live in the Austin area, which is the #1 metro in the US for housing price decline over the past year. There's still a ton of new housing being built here right now. Some of that inventory will hit the market later this year.
      Looking back at the 2008/2009 housing market crash, it took 4-5 years for the whole cycle to complete. Prices went down, then back up, then down, then up, then finally crashed. The same thing is happening right now. The recession hasn't broken the market completely yet.

  • @Scott-be1cq
    @Scott-be1cq Год назад +9

    Well if it is not a bubble then the average working family will no longer be able to buy. 70K a year gross income and the average house cost at 455,800, the math doesn't work. The only thing we can hope for is that large amount of these super high earners lose their jobs so the market can return to something people can afford. The one thing I don't get is if 200-300 percent increase in cost of a product over 3 years is not an abnormal increase then what is?

    • @blackworldtraveler3711
      @blackworldtraveler3711 Год назад

      The average working family where I live can buy a home as low as $180k.
      Maybe even less with 1-2 kids.

  • @andrewbeltran5795
    @andrewbeltran5795 Год назад +29

    I love Dave and all his advice. However, back in the day when interest rates were 9% houses were also cheaper.

    • @ron2280
      @ron2280 Год назад +3

      Absolutely. Lower interest rates drives prices up. All of these people with their 2.5% loans bragging about their interest rate.....had interest rates stayed at a healthy equilibrium for both borrower's and lenders, (7%-8%) that expensive looking, cheaply built track house would have been $200k instead of $499k.
      I was a builder and developer my whole career. Started building in 1996 and retired end of 2021. At my peak I had 38 units over 26 properties. I've watched the inverse relationship between interest rates and home prices for 25 years. What you say is true.

    • @GETole
      @GETole Год назад +2

      And salaries were smaller.

    • @ellenkh4422
      @ellenkh4422 Год назад

      Exactly

    • @blackworldtraveler3711
      @blackworldtraveler3711 Год назад +1

      Median family incomes were less than $30k as well.

  • @johndone8045
    @johndone8045 Год назад +12

    When the interest rate was 10%+ houses were like 100k, wake up dave

    • @House_hacker_619
      @House_hacker_619 Год назад +3

      Yeah but minimum wages at 5.50😂

    • @firefly9838
      @firefly9838 Год назад +4

      @@House_hacker_619 well it's been $7.25 since 2009 so it ain't changed in a long time.

    • @TxHoneyBee
      @TxHoneyBee Год назад

      @@firefly9838 That's a lie. The same jobs making $7.25 back then now make close to $20/hr. I see signs at Krogers (King Soopers/etc) STARTING jobs at $20/hr. Bus drivers earn the same but with a city employee's pension.

    • @napoleon1992
      @napoleon1992 Год назад

      Just like House_Hacker_619 said, inflation happens. More money enters the money supply each year. If housing today cost the same it did decades ago, everyone would have about two to three housing due to how wages and money have increased. This is also what causes inflation. If everyone has more money to spend but there are only a few units of the item they want to buy, they will bid the price up and cause inflation. Housing is not going to get dramatically cheaper anytime soon. It would be better to decrease the house demand list.

    • @House_hacker_619
      @House_hacker_619 Год назад

      Don’t compare apples to oranges. One example last crash was caused by PREDATORY LOAN and arm mortgages. A minimum wage worker can get approved for a 1M mortgage without lenders not doing Debt to income check or background checks as long you have a job your good to go. Builders were actively building and they stop building after the crash. Our population is growing from generation to generation, immigration and investor demand. In California there’s too many restrictions and regulations so it takes 2-3 years for builders to get permit approval. Also it takes 6-12 months to build.

  • @brandoncrimmins6296
    @brandoncrimmins6296 Год назад +3

    Yeah… “I told you so”… all I’m going to say is that here is Ashland county Wisconsin. There is a HUGE number of foreclosures being added to the local sheriff sales. And NONE of the houses for sale that are not foreclosures are selling…

    • @buckibanker
      @buckibanker Год назад

      Anomaly, in Ohio we can't build then fast enough and not many listing to even choose from

  • @baconcerberus
    @baconcerberus Год назад +14

    9% in 1992 is way better when the houses were 1/5th of what they are now

    • @watsonanthony8438
      @watsonanthony8438 Год назад +1

      In the 60s you can get a crib for 6 grand. People think you can go back. Those days are gone 😅😅

    • @blackworldtraveler3711
      @blackworldtraveler3711 Год назад

      Hot Tub Time Machine was just a movie.

  • @darnellcapriccioso
    @darnellcapriccioso Год назад +1285

    More immediately than a collapse in the stock or real estate markets, inflation directly impacts people's standard of life. It is hardly surprising that the present market attitude is so negative. If we are to live in this economy, we are in dire need of assistance. ETF and stock markets are still unpredictably volatile, just like the housing market. My $350,000 portfolio has been reduced to rubble.

    • @ericmccormick82
      @ericmccormick82 Год назад +6

      A lot of people are still making huge returns on investment this period. You just have to be very grounded or solicit the help of a professional.

    • @maiadazz
      @maiadazz Год назад +4

      Especially because their expertise is centred on short- and long-term holdings for profit realisation and because of their distinctive research, it is nearly impossible for them to underperform, I prefer to seek the advise of financial consultants when making my daily investment decisions. My consultant and I have been investing together for a little over two years and we have already produced sizeable net profits..

    • @richardhudson1243
      @richardhudson1243 Год назад +4

      @@maiadazz I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?

    • @maiadazz
      @maiadazz Год назад +4

      In fact, I'm not sure whether I'm permitted to say this, but I'd suggest searching for “Margaret Johnson Arndt” as she gained a lot of attention in 2020. She is both my coach and the manager of my portfolio.

    • @jeromesand
      @jeromesand Год назад +4

      This information is valuable. I quickly searched her full name and her website appeared instantly, showcasing her impressive qualifications. Thank you for sharing.

  • @quixomega
    @quixomega Год назад +13

    All markets in a capitalist system exhibit a boom and bust cycle so the housing market will crash at some point. It's just very difficult to predict when.

    • @watsonanthony8438
      @watsonanthony8438 Год назад

      Yea keep waiting 😅😅. They said it was going to happen in 2020.

  • @re8746
    @re8746 Год назад +1

    The only thing Dave is right about imo, is to get out of debt. His investing advice is blah. But he is 110% correct about getting out of debt. Get rid of the credit card debt, the auto loans and pay off that mortgage. Those out of debt sleep better.

  • @jimmymcgill6778
    @jimmymcgill6778 Год назад +16

    Dave still cannot admit he was wrong. He is only looking in areas that are going up, not down.
    It's down like two percent across the whole country from a year ago.
    People were saying prices were going to fall as a whole. And they were right.

    • @tduck828
      @tduck828 Год назад +2

      Prices are still crazy high in my area and little inventory. People are out bidding you and foregoing inspections. Nope!

    • @jimmymcgill6778
      @jimmymcgill6778 Год назад +5

      @@tduck828 I am not talking about just one part. As a whole. They are down.

    • @chrisjecre
      @chrisjecre Год назад +5

      What are you talking about. Dave was talking about the people predicting a crash where houses were selling 50% off and everyone’s life is ruined. Don’t change it now and say “see…prices went down a little in some places.” It’s like buying $20 shirt for $30 when it was priced at $40. Don’t act like all of a sudden prices are way down.

    • @GeorgeAusters
      @GeorgeAusters Год назад +1

      Prices haven't dropped in the UK at all

    • @mannyjeanpierre4062
      @mannyjeanpierre4062 Год назад +2

      No ppl were saying that they would crash. They lowered from the crazy post pandemic numbers but no crash. Try again buddy

  • @JohnSmith-zi9or
    @JohnSmith-zi9or Год назад

    I have nothing but respect and love for Dave Ramsey. I'm debt free because of him and am building a nice retirement. HOWEVER, the paid for house that I currently own, I could not afford to go onto the housing market and purchase the same house today! The high prices and the interest rates mean I must move down, way down, in home if I were buying today. And even though I am saving a significant portion of my income and have a large amount of cash set aside, even with the equity in my current home, the home I was hoping to buy 2-3 years ago is untouchable. Assuming nothing changes, and it always does for the good and bad, I will have to save for another 4-5 years before I could afford the payment on the house I've been wanting, in TODAY'S pricing. So yes, housing may not be collapsing, as of now, but people are definitely moving backward. And what I fear is that even though I have saved a huge portion of my income, I will be outpaced by inflation and spiking prices just as I was 2-3 years ago.

  • @armandoweckmann5699
    @armandoweckmann5699 Год назад +9

    I am not expecting interest rates to drop. I am expecting prices to drop instead. If they don't than I must save a much larger down-payment 😮

    • @tstanley01
      @tstanley01 Год назад

      Except in 4 or 5 areas in the country, prices are not going down if your are looking below the median home price

  • @AlphaJ369
    @AlphaJ369 Год назад +1

    Crashes normally last about 7 years. We are in 07 in relation to the last crash. The whole west coast hast come down 6 to 15% and we have just started. All we can do now is sit back and see how it plays out. Every indicator is screaming a huge crash to those that actually know what to look for....

    • @amireallythatgrumpy6508
      @amireallythatgrumpy6508 Год назад

      If it lasts that long, by definition it is not sudden and does not meet the definition of a crash.

  • @jimmymcgill6778
    @jimmymcgill6778 Год назад +20

    No, he's not right. He is still trying to say he is right.
    Some places are up, some are down. But as a whole, is it down.

    • @ryanxiong2258
      @ryanxiong2258 Год назад +2

      Like he said supply and demand.

    • @alinatamashevich3354
      @alinatamashevich3354 Год назад

      @Jimmy, maybe in your $h!thole, but where I am it is UP, way UP!

    • @jc5604
      @jc5604 Год назад

      Source: trust me bro

    • @alinatamashevich3354
      @alinatamashevich3354 Год назад

      @@jc5604 Or, "They said"

    • @crashtestdummy1972
      @crashtestdummy1972 Год назад +2

      Dude hes right you are wrong man. He literally explained that homes would level out or go to a normalish market again. I own a home and what he said exactly happened. 2 years ago homes in our area were selling for around 250k now fast forward, they stabilized at around 225k-230k. Its just a correction not a crash.

  • @EmmanuelCage-xd7bt
    @EmmanuelCage-xd7bt Год назад +2

    Back in the day, when I purchased my first home to live-in; that was Miami 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.

    • @JenniferDrawbridge
      @JenniferDrawbridge Год назад +2

      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.

    • @MarkFreeman-xi3rk
      @MarkFreeman-xi3rk Год назад +2

      Personally, I can connect to that. When I began working with a fiduciary financial counsellor, my advantages were certain. I got into the market early 2019 and the constant downtrends and losses discouraged me so I sold off, got back in Dec 2021 this time with guidance Long story short, its been 2years now and I’ve gained over $860k following guidance from my investment adviser.

    • @cythiahan8455
      @cythiahan8455 Год назад +2

      @@MarkFreeman-xi3rk Interesting Mark. I've been thinking of going that route been holding on to a bunch of stocks that keeps tanking and I don't know if to keep holding or just dump them, do think your Inv-coach could guide me with portfolio-restructuring as i wouldn’t mind a recommendation.

    • @MarkFreeman-xi3rk
      @MarkFreeman-xi3rk Год назад +2

      Actually, I've shuffled through a few advisors in the past, and “ Margaret Johnson Arndt” remains the most resourceful thus far. Her strategy proves profitable, and sustainable both in a bull & bear market. Most likely, her deets can be found on the net, so you can confirm yourself.

    • @sophiadouglaswagner
      @sophiadouglaswagner Год назад +2

      Insightful... I curiously looked up her name on the internet and I found her site and i must say she seems proficient, wrote her an email outlining my objectives. Thanks for sharing.

  • @qjc2300
    @qjc2300 Год назад +9

    Consumers control the price in the housing market, if we Americans STOP financing these over price homes! The price of these homes will go down over night!
    Dave cant say this because he is in business with mortgage companies. I have nothing against Dave but i understand it's just business!

    • @ForTheChristians
      @ForTheChristians Год назад +2

      How are homes overpriced? The whole issue is that trillions and trillions of dollars were printed. Homes are literally worth more because dollars are worth less.

  • @Dee-w5y
    @Dee-w5y Год назад +2

    Funny thing is people are still in denial. YoY, home values have DECLINED. This decline will continue for YEARS. New construction is at all time highs. Sellers had their chance to be reasonable. Instead, they dragged their feet. The time to buy will be closer to 2030, 2032. Once the price declines stop. I hope interest rates increase dramatically in that time frame. God bless, America.

  • @unclebenny
    @unclebenny Год назад +12

    You said real estate prices wouldn't come down a year ago. Now you say they will come down from their inflated prices, but stay at reasonable prices. Isn't that prices coming down? Not too far from those who claimed a housing crash was coming where prices could drop 30% from their peak. And this isn't over yet. Recession ahead, job losses, tightening of lending, high interest rates and lack of interest from big investors will all be pulling on demand. What will that do?

    • @jimmymcgill6778
      @jimmymcgill6778 Год назад +2

      Yeah, those are two different things. Coming down from inflated prices, means that prices are falling.
      And his followers will still say they're not coming down.

    • @eurekahope5310
      @eurekahope5310 Год назад +3

      When the monthly payment on an old, small, and unimpressive home is $4000 per month, something has got to give. According to Ramsey, that would require an income of $200,000 a year for the most basic home in our area. This isn't sustainable.

  • @nikolaig1
    @nikolaig1 Год назад +1

    Housing is way too high. Renting is Cheaper in all states. The pricing isnt realistic unless you live at home until your 40

  • @bb-1359
    @bb-1359 Год назад +13

    Dave “just buy houses cash” Ramsey

    • @DontAtMe2k24
      @DontAtMe2k24 Год назад

      😂😂😂😂😂 ain’t that the truth.

  • @rubyfirefly2582
    @rubyfirefly2582 Год назад +2

    The problem is that the cost of everything, including homes, is going up while incomes are not rising to match the cost of living. The gap is getting ever wider over time and eventually, the market will not be able to sustain this. I live in Colorado Springs and they are building expensive home here hand over fist. Vast areas that were once open prairie are filling up with homes here. There simply can't be that many people that make enough money to afford them.

  • @ryanwolf4101
    @ryanwolf4101 Год назад +5

    In my area houses have dropped in the past twelve months 15-20% and we still have very low inventory.

  • @bogoljubrakic4784
    @bogoljubrakic4784 Год назад +2

    The truth: supply is very low, but there is a lot if shadow inventory.
    Supply is low because many home owners live in a dream prices will at least stay at these levels or go even higher.
    Everything will change when a time bomb called national , business and personal debt explodes.
    We are going to see realestate colapse like a house if cards.

    • @bogoljubrakic4784
      @bogoljubrakic4784 Год назад +1

      And the truth is interest rates should have neve ever gone to zero.
      Generations of low income and botom of middle class are robbed in a scheme to save economy, Wall Street and Realestate mostly owned by very reach.
      It is a transfer of wealth never seen in history.

  • @ballan00
    @ballan00 Год назад +5

    Houses in my neighborhood have gone up 50% since we moved in 10 years ago. Buyers in the same situation we were in 10 years ago can no longer afford to live here.

    • @blackworldtraveler3711
      @blackworldtraveler3711 Год назад

      Don’t see your point.
      No different than when my parents bought their first home in the 50s.
      No different than when I bought my primary home in the 90s and Florida beach condo 15 years ago.

    • @DontAtMe2k24
      @DontAtMe2k24 Год назад

      Meh. Houses have gone up 50% or more since Covid. My house I bought for 127k in 2017 would now sell for north of 240k based on my most current county estimate(and their estimates are usually lower than the actual market rate).
      So has my salary gone up by 50% or more since Covid? Hell no.
      We are going to have problems….

  • @eg4933
    @eg4933 Год назад +2

    i said also interest rates are never going back down in seeable future because of increasing inflation AND history wise they've always been way up.

  • @petepeterson5337
    @petepeterson5337 Год назад +5

    About a year ago, I became less frustrated with the glacial slow rate of FOMC rate hikes when I realized an important part of their calculus was to avoid a repeat of the mortgage prices. This is not a statement about the morality and ethics of our federal reserve system.

  • @RespekfulFungus
    @RespekfulFungus Год назад +1

    Low inventory is the only thing keeping it afloat, give it time.

  • @Rdfelic
    @Rdfelic Год назад +3

    Not saying it's going to crash but something is going to give. Home prices keep going up and people's salaries are not. wages are not adjusting to inflation. As the baby boomers (rip) are leaving us and our population is decreasing. There is going to be an over abundance of homes in the future. What do you guys think? Am I way off or do you have the same concerns

    • @amireallythatgrumpy6508
      @amireallythatgrumpy6508 Год назад

      And that's going to be accompanied by lots of older houses being demolished.

  • @rufustrunt9889
    @rufustrunt9889 Год назад +1

    The data is that generally speaking, if you buy a home and wait a few years it might go up in price. IF….you spend 10% of that home value EVERY YEAR keeping it up. So….appreciating asset? Eh….not so much.

  • @blackspiderman1887
    @blackspiderman1887 Год назад +14

    The last housing bubble took 5 years to pop. We are 2 years in

    • @fursurething8659
      @fursurething8659 Год назад +6

      Only a year in. Prices started declining last June. 4 more years to go. We have a long road down.

    • @House_hacker_619
      @House_hacker_619 Год назад

      I’ve heard this crash story since 2016. I bet by 2026 people are still waiting for it. The more people talk about it the less likely to happen😂

    • @dsj9831
      @dsj9831 Год назад

      I believe that homes will drop 10% on average and stay flat while inflation rages on with wage gains eventually bringing normalcy back. The fed needs to keep rates above 4% to keep investors in check though.

    • @fursurething8659
      @fursurething8659 Год назад

      @@dsj9831 what makes you think inflation will stay high? How high and how long do you think it will last?

    • @blackspiderman1887
      @blackspiderman1887 Год назад +2

      @@House_hacker_619 that's a lie. Housing price in 2016 were reasonable. You didn't start hearing about a crash until 2021 after the prices skyrocket

  • @therichbuddha3277
    @therichbuddha3277 Год назад +2

    Whatever you say it will be right at some point. No one, I repeat, NO ONE can predict the housing market because it is local market and often neighborhood specific.

  • @jamisonmunn9215
    @jamisonmunn9215 Год назад +11

    I see a lot of RUclips realtors keep talking about a crash and prices crumbling and yet the data came out today and Year over Year prices are still up this month.

  • @stevebaughman1163
    @stevebaughman1163 Год назад +2

    Why does this video say "I told you so!" when Dave said price would go up and up and they have gone down since May 2022?

  • @everydaybodybuilding2282
    @everydaybodybuilding2282 Год назад +9

    If the market is still hot and not going down why are the builders not building spec homes? Coming from somebody who just bought a house a month ago

    • @leechburglights
      @leechburglights Год назад +1

      Probably the same reason car makers are not making extra cars to sit on a lot. So they don't have to lower the price. Get used to inflation.

    • @DBS472
      @DBS472 Год назад

      Until the builder sells the house, they have to pay the vig. Easy to do at 2%, not 7%. Only worth building rentals or houses under full contract

    • @Kurplode
      @Kurplode Год назад

      @@leechburglights then that means less need for workers and more layoffs.
      Life won’t let people have everything. It will give you two out of the three you want but not all three.

    • @superblump87
      @superblump87 Год назад

      ​@Leechburg Lights that's his point.

  • @GabrielMartinez-sd8pc
    @GabrielMartinez-sd8pc Год назад +2

    The housing market was outpacing my wife and I. I make roughly $120k (before taxes) and bought a $355k home. That was its lowest offering for the “cheapest home in the best neighborhood”. Did it at 30 year/ 10% down. I think Dave’s mortgage advice is becoming wrong by the day with inflation and cost of living. I’m not House poor, but did have to make “luxury” sacrifices to make it happen. 15 year/ 20% down/ 25% after tax mortgage (and utilities) is not remotely reasonable.

  • @devereauxjnr
    @devereauxjnr Год назад +457

    I started stacking to SAVE wealth. I've always been the type of person to spend my entire paycheck. I hate having money just sit in the bank. I am under pressure to grow my reserve of $950k. before I turn 60, I would appreciate any advice on potential investments.

    • @MakeamericaGreatagain-h7j
      @MakeamericaGreatagain-h7j Год назад +1

      I can feel your pains. New guys need to realize the risks that come with all of this. You could lose it all and you could win it all. It goes both ways. Second, what works for A may not necessarily work for B and you should not be a bandwagon investor. A good number of folks are raking in huge 6 figure gains in this downtrend, but such strategies are mostly successfully executed by folks with in depth market knowledge.

    • @Tsunaniis-j5l
      @Tsunaniis-j5l Год назад

      @@MakeamericaGreatagain-h7j Factos!! Since the market became extremely volatile and pressure increased (I should be retiring in 17 months), I took the decision to work closely with a financial advisor. It has already been 9 months and counting, and I have made approximately 600K net from all of my holdings.

    • @DreamweaverShade-h9p
      @DreamweaverShade-h9p Год назад

      @@Tsunaniis-j5l That's impressive, my portfolio have been tanking all year, tried learning new strategies to gain in the current market but all of that flew right over head, please would you mind recommending the Adviser you're using.

    • @Tsunaniis-j5l
      @Tsunaniis-j5l Год назад +2

      @@DreamweaverShade-h9p My advisor is the quite famous NICOLE DESIREE SIMON She has been making a fortune online worth millions of dollars in digital assets for a select few for years. Lately, these types of services have appeared that allow you to copy the results of the experts. She demonstrates how to copy it automatically using that system.

    • @DreamweaverShade-h9p
      @DreamweaverShade-h9p Год назад

      @@Tsunaniis-j5l Thanks for the info, i found her website and sent a message hopefully she replies soon.

  • @texdevildog9174
    @texdevildog9174 Год назад +4

    Housing prices are dropping.
    “How did you go bankrupt?” Bill asked.
    “Two ways,” Mike said. “Gradually and then suddenly.”
    Mike Campbell in the 1926 novel by Ernest Hemingway “The Sun Also Rises”

  • @rosariozumaya2787
    @rosariozumaya2787 Год назад +1

    Interest rates are high and home prices ridiculously high.

  • @joshuarivera2422
    @joshuarivera2422 Год назад +8

    Well according to latest Redfin data Nashville is down 6% from 1 year ago, so you were not right. Also active listings and months of supply double from a year earlier.

    • @fursurething8659
      @fursurething8659 Год назад

      100%. I find it funny when people ignore basic info. It's incredibly obvious we are in the beginning of a downturn. Dave can only deny it for so long. Probably said the same thing in 2007/2008

  • @connorhus
    @connorhus Год назад +2

    Real estate Prices have not stabilized even if they don't move as much, still mostly unaffordable for 75% or more of Americans

  • @Goodiebar18
    @Goodiebar18 Год назад +4

    Interest rates aren’t the problem, the problem is the price. I will never be able to afford a 5-700K home especially on a 15 yr mortgage lol

    • @joshuaisrael2494
      @joshuaisrael2494 Год назад

      Then relocate to an area you can afford. Northeast Ohio is a great start. Cleveland, Ohio homes are on average 200k. Good luck to you.

    • @watsonanthony8438
      @watsonanthony8438 Год назад

      @@joshuaisrael2494at the expense of safety and rust belt. Not worth it lol. We prefer great weather lol

  • @NivArb
    @NivArb Год назад +1

    This video is during the peak season for home real estate, when prices inflate because of activity. Let’s check in 3-6 months when we’re in the low season and experts have time to analyze the data from the peak season…

  • @americansupertramp
    @americansupertramp Год назад +7

    Homeowners will be calling the show next year about buying too much house.

  • @crockettlauncher
    @crockettlauncher Год назад +1

    "The bubble is going to burst" and "The bubble has not burst" are not mutually exclusive statements.

  • @Noname-ps3mq
    @Noname-ps3mq Год назад +7

    Us supply is low demand is high
    But?? How in the hell are people affording these homes. I think people are living well out of their means
    That’s my thoughts on that

    • @lmilostr
      @lmilostr Год назад +1

      Contract Nurses by me are payed 130-$160 per hour. There is a Huge shortage of Skilled workers in many fields.

    • @solvend
      @solvend Год назад

      I mean that's easier than realizing others are outperforming you. Easier on ego anyhow

  • @dunxelll
    @dunxelll Год назад +2

    He is my take. House price cannot be sustained with the income as it is. People rushed to buy overpriced houses followed by mass layoffs. Inventory will get to normal with surplus from people's foreclosure not to mention no less willing buyers.

  • @deli5777
    @deli5777 Год назад +6

    Dave lives in a dream world for sure

    • @amireallythatgrumpy6508
      @amireallythatgrumpy6508 Год назад

      Nope, he lives in reality. The rest of America does not.

    • @blackworldtraveler3711
      @blackworldtraveler3711 Год назад

      Dave is a debt free multimillionaire and lives in a paid off home.

    • @DontAtMe2k24
      @DontAtMe2k24 Год назад +1

      Dave has a cult like following. He’s not gods greatest gift to finance. When you ask him how he made his millions, he never tells you directly. The answer is he leveraged his money….
      From this current video, he’s talking about a 2.5-3 year window from the economy. I’ve never thought houses would be affordable by 2023, or even 2024. The fact is home prices have gone up more than 50% in some places. Salaries have not. In terms of sustainability, it is not.

    • @amireallythatgrumpy6508
      @amireallythatgrumpy6508 Год назад

      @@DontAtMe2k24 He gives an extremely direct answer, you're just hearing what you want to hear.

  • @victorsaumarez3714
    @victorsaumarez3714 Год назад +1

    National home prices don't mean much except to economists. Yes, the lack of supply has prevented a wide spread 'crash' so far, but nobody could have foreseen that. For example, in 2018 when rates went up it led to a jump in inventory, because sellers wanted to cash in gains, etc. In 2022, this didn't happen because interest rates went up a lot and very quickly, so sellers were (are) faced with a large increased cost to borrow. I didn't hear this important point mentioned, so I don't buy the "We told you so" line.
    Did prices correct? Yes. In San Francisco, median homes prices declined by over 20% from May 2022 to Jan 2023. A similar pattern emerged in other over-bought markets. There has since been a seasonal bounce, which is normal and we're waiting to see what prices will do as we enter the fall. If would-be sellers are encouraged by a slightly lower cost to borrow and/or capitulate, inventory may pick up. Add into the mix that mortgages are are likely to stay higher for the foreseeable future, price pressure is more likely to be downward than upward. Something has to give, because you can't have prices that are not not supported by the fundamentals in tandem with a rapid increase in the cost of money for any extended period.
    I don't find this kind of sanctimonious commentary useful. Thousands of people would like to buy their own home, and the industry needs to be transparent, honest, and help find solutions to what is a chronic affordability problem. I challenge anyone to show me evidence this isn't so.

  • @rosariozumaya2787
    @rosariozumaya2787 Год назад +3

    Investors bought up scores of homes during the pandemic because record-low mortgage rates and skyrocketing housing demand created opportunities for hefty returns. Now they’re pulling back in response to the rise in interest rates, which is causing housing values to continue falling in much of the U.S. as homebuyer demand falters. While many investors buy homes with cash, they’re still impacted by high interest rates because they often take out non mortgage loans to cover renovations and other expenses.

  • @defyingfinance9882
    @defyingfinance9882 Год назад +2

    It is not an anomaly, it is a bubble. To suggest anything other than that would be ignorant or dishonest. People buy homes based on a payment and with interest rates this high so many people cannot afford the homes at these prices. Nashville is a bubble. The biggest bubbles are in Boise, Idaho and Austin, Texas though. This is an over, we are in the beginning of this. I believe Dave got it wrong and there’s nothing wrong with that. You can look at demand as supply of buyers though. You don’t need the supply of homes to expand in the form of building. 25% of all homes bought last year were by investors and many of those have become air B&Bs. There is a massive supply of those coming on the market. There will be a massive supply of repossessions coming on the market as well. Everyone who destroyed their credit will not be buyers so, he will have fewer buyers for the amount of homes that exist. Again, you don’t need a physical supply of homes for there to be a shortage it can simply be the demand is wrecked due to credit scores or credit tightening. Also, people moving in together, investors who over paid for rental properties, having to sell on the market as well. You will see that inventory increase dramatically.

  • @peterlees7390
    @peterlees7390 Год назад +11

    Same thing here in the United Kingdom no bubble,.no bursts.
    Thanks to the Ramsey team working on our baby steps

    • @jerryjayson67
      @jerryjayson67 Год назад

      Is this truly why the WEF Slogan is " You'll own nothing,no home and you will be Happy". There actually may be some truth to that as houses are so expensive

  • @cilgarcia3974
    @cilgarcia3974 Год назад +1

    shortage is obviously there but the monthly mortgage for a regular person is not sustainable. imagine paying 4to 5 thou a month on your mortgage its ridiculous and this is for a condo or townhouse

  • @Bnhuskins
    @Bnhuskins Год назад +3

    The nation as a whole is currently down roughly 3% in terms of the overall housing market, this dip from the peak in summer 2022 is the most since 2008. The average housing market change takes roughly 5 years, we are just now starting to see the start of the downfall.

  • @Soulmate-.
    @Soulmate-. Год назад +9

    Ramsey does not include substitutes/complements in the formula. When the interest rates go up, people start renting more, which is a substitute good for housing. He just keeps saying shortage, shortage, shortage…😅