Is The U.S. In Another Housing Bubble?
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- Опубликовано: 26 авг 2024
- The U.S. housing market has been an unlikely beneficiary from the Covid-19 pandemic.
During the pandemic, home prices have climbed at a record pace. The median price for an existing home reached over $363,000 in June 2021, a 23.4% year-over-year increase.
“You can see in just basically the last 15 months or so, we’ve seen a dramatic acceleration in home price growth to levels we haven’t seen in decades,” CoreLogic chief economist Frank Nothaft said.
However, according to most experts, the market is shaping up to look more like a boom rather than a bubble.
“We say bubble because we can’t believe how much prices have gone up,” CNBC real estate correspondent Diana Olick said. “A bubble tends to be something that’s inflated that could burst at any minute and change and that’s not really the case here.”
While speculation certainly is a factor, the main cause for the current housing demand is low mortgage rates. At the start of the pandemic in March 2020, the 30-year fixed-rate mortgage rate sat at 3.45%. By July of this year, that number had dropped to 2.87%.
Supply is also an issue. According to the National Association of Realtors, the U.S. has underbuilt its housing needs by at least 5.5 million units over the past 20 years. That’s a stark comparison to the previous housing bubble in 2008 when overbuilding was the issue.
“So we’ve got a boost in demand that’s due to record low mortgage rates and we’ve got a shrinkage of supply,” Nothaft said. “So between more demand and less supply, prices are up and they’re up at the fastest pace since the 1970s.”
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Is The U.S. In Another Housing Bubble?
Only housing? Try groceries, foods, transport and cost of general living including rents. Price of a house is ridiculous
Eastern Europe:
First time?
Oh, that’s always been the case. The only thing that doesn’t go up are wages. I mean how long has the minimum wage been the same?
JJ Jilani thanks to Biden for raising taxes.
@@emilio2647 ... on billionaires and Amazon.
Not to mention cars. It’s ridiculous.
Once again, Millennials and Gen Z’ners are the ones paying the price.
Lol its so insane at this point. People are using these homes as assets, so people who want actual homes get screwed in the process. Lol
Uh, I thought they weren't able to pay for houses - so how are they paying the price? Sounds like it's a case of sticking it to the rich again to me.
what do you mean? I always wanted to live in a truck camper for the price of what homes cost in 70s-90s.
Voting more might help
@@KOSAMAGAMES #vanlife
Maybe we’re crazy but after getting eight offers on our home, we refused to sell to the arrogant cash offer highest bidder and sold to the young couple who wanted a safe place to raise their family.
I need some guidance please. Lately I've been considering buying dividends stocks for retirement, I have set asides $400k but somewhere along the line, I get cold feet maybe because I'm a rookie and have no idea what I'm doing.
@@kellyhoang1483 Really acknowledged your comment, My portfolio grew by 100% within 6 months. Couldn’t have put it better myself. Last year a colleague introduced me to a financial consultant Jennifer Elizabeth Boland who has been helping me find investments that have significant growth potential. She invested my money in reputable companies which their stocks must always rise after any dip.
@@stricklandpilman2123 How are you investing? I have around $145k, only index funds, half in s&p and half in vigax, i need something more aggressive to grow my portfolio, What do you think I should try?
Good on you!!! You did the right thing. If I didn't get the backing of my family, I wouldn't have a place to live without their help. The bank that was holding on to the mortgage for the last home owner. Was waiting for him to fail to pay so they can take his home from him. These banks are no ones friend. They are vulture ready to take the rug from under people. Hard working or not, the banks don't care who they screw over.
@@carlterry9686 Jennifer Elizabeth Boland is there to guiding you through, just check her out on line!
I got straight up priced out. I think I'll sit this round out. I sure as hell refuse to be stuck with a 400k mortgage on a house that's worth 200k.
Troof
You should look into investing into crpyto
@@snkmazda If you're going to invest longterm then it's fine. Trading it is dangerous though.
Smart. We got ours right b 4 all this bs
You got that right!!!
It's almost like buying homes to build wealth instead of to live in is not a stable system.
The sad thing is the prices won't drop, this will just be the new normal. Like it is with everything else. It's not a bubble - the few people buying today can afford it, like the video said. The government (combination of city, state, federal) has the levers to prop up most markets and especially housing (via zoning), and shows time and again their goal is to protect wealth, speculation, and rent seeking, not mobility or welfare.
@@someguy6075 rich and old people vote. Young people don't. We make our own bed by not voting.
Decomodify houses
It has more to do with the monetary policy than people using homes as investment. Also, governments restrict housing supply and zoning laws aren't too construction friendly either
Real estate has created more millionaires in the US than any other industry.
Even if it were a bubble, a 20% drop in prices would still put house prices at 2020 prices.
And yet, that would cause a terribje recession and more jobosses
@@MrKongatthegates that's unfounded. Why would a decrease in home prices to last year's average result in job loss?
That's not how any of that works. Correlation IS NOT causation.
20% lower of the current prices is a good thing.
@@SaintAnix. it would cause another recession because of general human emotions and behavior.
Many would see the price drops, try to sell their own before it falls even more. Many would chose to default on their loans because why pay $2,500 a month for a home that is now only worth $1,800? Then banks begin foreclosing adding even more inventory driving prices even lower. All while they’re losing billions and even risk bankruptcy. Then Gov may need to bail them out (though I hope they don’t. Let them fail).
This causes a cascade of ripple effects throughout the economy. Many people see the fear in the market and decide to save instead of spend. Meaning businesses make less money and are forced to lay off workers. Adding even more to the problem.
Perception is everything. If people think we are in good times, they will spend and create like crazy. When they are fearful, they will save their money and remove it from circulation.
Then those waiting on the sidelines will jump in and start a new bidding war. As long as we are lagging in new home construction, these prices will continue to rise.
The housing bubble is absolutely predatory. Realtors and home-flippers make it impossible for the average joe to afford anything
Yes, the agents are manipulating offers and creating this frenzy and inflation. So much fraud going on now in the market by agents.
Very manipulative. Reason i went into stocks and crypto. i am doing perfectly well now.
How do you do that. Any pointer ?
I work with Tamara Diane Hagan. Her trading skill is the best i have seen. Look her up
Thanks. Found her website already
People: buying ridiculously overpriced houses without even steping foot inside of them
Economists: iTz n0t a buBble
It's not a bubble unless it's irrational. Higher home prices is perfectly rational in light of inflation and low supply, and production, and high demand
@@flakgun153 Even when adjusting for inflation, home prices were way above historical average before the pandemic.
@@TenderTrap86 I guess the theory is that there isnt enough supply. In 2008 crash the supply was there but $1 million houses were being bought by people making $50k/year. That isnt happening this time around since lending became stricter. So the person who is buying an inflated house is doing so with the ability to still pay it. The bubble will only burst if people stop paying their mortgages and the houses start going into foreclosure
It's not a bubble when there's a good reason for the price increase.
@@TenderTrap86 they had just recovered pre pandemic. The trump economy was the best in a while so they were going back to where they should have been (around 80-120$ a square foot). Granted some regions and some higher end construction was above that but pre March 2020 as an average that was where we were nation wide. Now we are in a bubble and things are closer to 120-200$ a sqft nationally
We started looking for a house in January of 2020. A neighborhood nearby was building new homes starting at $240k. When covid hit, they immediately dropped there prices to $220k, then shot back up to $240k with 2 weeks. Months later those same homes are selling now for $350k. I think I’ll wait out the craze.
if you want to learn about the situation in SF Bay Area- just multiply your numbers by 10
If we are in a bubble and it pops, the whole economy would tank and millions would lose their jobs again. Meaning less people will be able to buy (maybe even yourself).
Though if we aren’t in a bubble but we still see prices fall a few percentage points, I wouldn’t hold my breathe expecting you to be able to buy back in at less than $300k for the neighborhood. Inflation rarely reverses course. Temporary dip but still long term increase.
@@waldemarmoskalecki7891 nobody cares about California bye👌
Bought ours at 220k in Jul2020, by Oct2020 was 260k, today is at 305k and keeps going up.
@@161Irving maybe but if fed stops the buying the prices will drop a little bit. The average person is getting a pay cut. because wages are not going up 20% or 40%. The average person that could afford a home last year chances are they cant afford the same home.
“We aren’t in a bubble”, famous last words…
should i believe these people being interviewed in this video? they make it sound like its a FACT that a cash isn't going to happen and they have and answers and reasons why it cant? it sounds convincing but should i take it with a grain of salt is anyone else?
PROSPERITY
BONANZA
I guess those words ring true once it pops 😅
@@bendreed9 should i believe these people being interviewed in this video? they make it sound like its a FACT that a cash isn't going to happen and they have and answers and reasons why it cant? it sounds convincing but should i take it with a grain of salt is anyone else?
5.5-6.5 million houses short, demographic pressure, historic low fixed 30yr debt and high lending standards. However thinks a "crash" is immanent needs to go back to the circus 🎪 🤡
“Well its not REALLLYYYYYYYY a bubble…”
That usually means it’s already a bubble…
You can bet on two things. Financial analysts are always late - downgrades are never a sell signal [being too late], just confirmation of something bottoming out. After that, economists are almost always wrong, since the training offered by most colleges are a prism of government manipulations, not commerce/finance based reality viewed through a laissez faire lens. When is the last time you heard anyone mention 'marginal productivity of debt' [especially in connection with government borrow & spend habits]? In my lifetime, I can't think of it ever happening on TV. Bartiromo is smart enough to notice, but... I'm too cheap to pay for cable, so maybe I missed it. Between these two groups, we see a bankable point [if you can preserve cash into a downturn]: a "recession" being marked for media consumption as three consecutive quarters of negative growth... that is the exact moment most corrections bottom out, and it's time to start looking for deals. But calling a top? Hardest thing to do in the world: the tipping point of anything having gone logarithmic is a true art form. But I think we all have one or two family members that are epic in their bad timing: they ask "should I buy?" means things are white hot and it's time to take profits or a short position.
@@flinch622 Well said, @Flinch... I think all the fundamentals are telling the same story that nobody wants to hear so people try to rationalize or excuse the frothy bits, the underlying fundamentals of our economy.
@@flinch622 You'd have to go find insiders who are showing the charts, making no predictions. No one wants to spook the ghost that's already in the house so you won't ever get information like that on TV.
If you call it a bubble, it becomes a bubble.
Unless the economy crashes then it won’t pop. Last time it was housing market that crash(corporations fault)the market.
Anyone buying a home right now is insane. House prices are so high, you’re literally paying more for the home than it’s actually worth. The market can’t sustain itself, house prices will begin to fall again when supply meets demand and everyone who overpaid for a house will be screwed.
They're only screwed if they plan on moving in a few years. If they're going to be in the house long-term, the value will recover over time. The average American moves every 5-7 years, though, and having to take a huge loss selling a house is financially painful.
Eh in certain locations like Southern California (Orange county, Los Angeles, San Diego), pretty much all the land is built on, there is no way to increase supply. Meanwhile the population keeps growing. And even if the price falls due to rising interest rates, it doesn't matter, you monthly payment will be the same or more if you are financing. If you want to move just rent out your current house and buy a new one.
you’re literally paying more for the home than it’s actually worth.
Really? And who determines what a house is worth?
Good. Just Remember this statement 10 years from now.
I have a 2.25% interest rate on a 30 year Conventional mortgage. I live 16 miles away from NYC and there is not alot of land to build on in my area. Explain to me why im screwed?
According to real estate RUclipsrs, we are not and should keep buying.
Yes totally agree. Fradulent fellows
I'm no longer waiting for the GRANT LOAN because I earn $ 46,700 every 10 days recently
@@benwilliamson1651
Same here lol, I also Earn weekly Profits of $15.300 on My Investment Since I started invest with Htcuhinson mark, his trading is the best I have seen
Don’t get caught being a Perma Bear
I have heard a lot about investments with Htcuhinson mark and how good he is, please how safe are the profits?
According to people that are financial dependent on you buying homes, we’re in a housing boom 😂…
IKR? I have heard that there are many many homes in some areas being snapped up by multi-billion Hedge funds. That can't help with prices in those areas.
@@marshallhughes4514 1 in 5 houses sold are sold to pension/hedge funds. Advocate for reasonable tenant rights and you'll see these pensions/hedge funds sell off like crazy!
🟡SERCH ADITYA RATHORE-HE ALSO MAKES INFORMATIVE CONTENT LIKE CNBC
🟡SERCH ADITYA RATHORE-HE ALSO MAKES INFORMATIVE CONTENT LIKE CNBC
Lol oh don’t even talk about it with realtors and people selling their homes.. “oh this is never going away, this will be the BEST pricing you’ll get ever!” BAHA mmokay
Funny how they say the market isn’t in danger today, isn’t this the exact same thing they said 2008 that the housing market is rock solid
facts!
The real question is how people are able to even get loans for $1MM+. Have loan companies thrown underwriting out the window?
But they did say that many of those mortgages weren't fixed-rate mortgages which was a huge part of the problem. The 30 yr rate is so low right now so that's what everybody is getting. That makes a difference.
There are 1.3 million homes for sale in the United States. We need 3 million homes just to be in a balanced market. Prices aren’t going down anytime soon.
@@BANDIT2DAY 1st I've ever heard anyone throw this stat out, if true, that is a tell tale sign
prices are way too high I ended up buying an RV and I'm loving it! this is true freedom no longer a debt slave
Why not take it to the next level and get rid of the RV and just get a tent?
where do you keep it?
Honestly, living in an RV has been a game changer for me. I've never had such stability in my life! I can actually save money! And when the local economy goes to hell (as it always does) i can pull the plug and move on to the next town.
Maybe not a debt slave, but a slave to petrol and to whomever allows you to stay on their land. Unless you're magically able to float in the air with an RV that runs on regular water. Also, an RV is not an investment. By getting rid of people out of the investment market, the owners are making sure that they get all the sweet money in the end whilst you get scraps.
@@bengagnon2894 Meh, for the price of a 2nd hand hatchback, i can buy a fully furnished home complete with appliances. Live in it for 5-10 years till stuff starts falling apart & then go buy another one.
This is much better than when i lived in houses. When i lived in houses it cost me a fortune every time i had to move, and maybe i'd have some equity in my home to cover the expenses & let me break even on it, but more likely id end up having to sell that home in the middle of a crashing market/economy & lose my shirt on it. And then have to spend thousands more moving my stuff and finding somewhere else to rent/buy etc etc etc.
Housing market in the USA is far too volatile now to be a safe investment for regular people. Back in the 50s 60s 70s and 80s it was a no-brainer that buying a home was a solid investment, but the deregulated banks took care of that. Now its just as much of a crapshoot as anything else.
There are zero protections for the consumer in the modern US housing market. The old saying goes that if you look around the poker table and cant tell who the sucker is... its probably you. When you enter into a 30 year deal with BofA... you can bet your ass that THEY are not the sucker at the table.
Over the last 5 years of RV living, ive saved enough money that i could just buy a house outright now.. but theres no way i'll do it. Not in this backward country anyway.
Sounds less like analysis, but more like pacification: "everything is fine, don't freak out..."
Yeah I agree.
you'll own nothing and be happy- world economic forum (now take this injection in your arm cattle or no barn activities for you)
😂😂😂🤣🤣😂
@@The_Internet_Is_Overrated I do and I make the median income for my area... and if you don't have a 3 months emergency fund, you couldn't afford a house in the first place.
And that's not going against people struggling with money, I get it. But if you buy a house and don't have that money left over, then you can't afford that house.
In fact, I believe my mortgage company required me to show that I would still have two months worth of mortgage payments in the bank after all the closing costs
Your right, sounds like selling through omission to me. That one lady mentions there needing to be a gigantic economic downtown to burst the bubble but her and everyone else neglects to mention all the money the government has been Injecting into the economy, enhanced unemployment benefits, mortgage forebarence, and the foreclosure moratorium they put in place to prop the economy from completely crashing in March 2020. That’s why the stock market crashed last year and recovered so fast. Those programs are finished this month and all it takes is a common sense of FUD to make the stock market crash. I feel bad for all the 60 somethings that watch these news sources and think that they are going to retire with that skyhigh amount that’s in their 401k right now. Anyways, I guess we have to wait and see.
As someone renting with the hopes of buying in the next few years, I really hope its a bubble.
Haha... I think it would be great if we see housing bubble busting every 10 years, will help new comers to buy nice accommodation
Me too. I hope is a bubble
Me too man me too. Not very hopeful for that though. Time will tell, best of luck friend.
Sorry to tell you there isn't going to be a bubble not anytime soon. Am looking forward for a bubble. I bought my house in the last bubble am sitting here enjoying seen my house triple from what I paid for 10 years ago. People have too much cash sitting around and people who are buying this houses are people with serious cash that's why the housing market its crazy. It's not like 2008 crash where people who had no business buying a house but banks were approving mortgages they shouldn't have.
@@arminius6506 In order for someone to win someone else must lose.
Here in Fairfax Virginia, there’s some newly built 3 level townhomes that START at $800k and they’re not even on a desirable road in my opinion (West Ox Rd). I have a great job with a decent salary but as a single person, there’s no way I can purchase property here. I just want a house with a yard for my bloodhound. :-/
Virginia Beach is the same way. Me and my wife sold our Norfolk home back in april for +$55,000. Then we looked at the VB market and we actually couldnt find a home even close to what we had in norfolk lol. a 4BD 2BA with a garage on avg is going for $500,000...
You better buy one soon. House price is not going to come down. It's only going to go up & up.
Move from the state if you have a remote job. But buy a house or apt anything but buy it. Just an advice.
We had to move from fairfax, we were prices out :/ idk how some ppl can live there
That's why I think there will be a correction. When wages don't keep up with asset prices like homes- uh oh!
Listen! I can even consider going over the bridge from MD. But hell, I cant afford to stay on this side of the bridge either.
I just want a house where my spouse and I can LIVE! That’s it! But this is making it nearly impossible! We’re both working our butts off at our full time jobs and slaving away to build our credit enough to afford 300K for a house!!!
wages haven't grown anywhere near the value growth of homes. Yes, its a bubble.
Look at LA and other expensive cities. The min wage and housing prices are even farther away and yet people deal with it or move to another state. Property and land is a limited resource that can’t be replicated. Grab as much land as you can before it’s too late.
hyperinflation isn't a bubble
Not.a bubble
your wage
New houses ridiculously priced and built like crap. I would never buy a house built after 1990.
The problem is that individuals are buying multiple houses as an asset for themselves, inflating the prices of homes for everyone. They should take a rule from Singapore who limits purchases of homes for individuals to prevent housing crash.
it is not just individuals, it is the hedge funds and real estate groups like zillow, open door, etc. that are buying up properties like candy and paying cash and inflating the prices
@@royharper2003 It is individuals too though. However I favor going for the corporate landlords first. They are worse.
Singapore is different as it’s a small country.
I sold my house at the height of the last bubble, about six months before it burst. I saw the same frenzy then I'm seeing now, and the same denial in the business press/real estate industry.
It's crazy making how people seem to think this will never end. If it doesn't it'll become part of an economic black hole.
SO.. You were part of the problem.
@@KoreaMojo Only the foolish believe that people will start selling their homes after the market burst.
It's impossible to perfect predict a crash or a bubble, but the way things are looking right now in 2022, I'm concerned we are going to see a big drop 📉 in house prices soon. I've recently made a few videos about this very issue on my channel recently. I think buyers should make sure they don't bite off more than they can chew. At the end of the day, it doesn't matter too much how much the house 🏡 cost, but rather, can the homeowner continue to afford the payments.
It's not even close to being the same as the last bubble.
There is only one way to afford a house. don’t buy “right now”.
Exactly, people are fomoing in. Low interest rates have created a bobble.
Yes if people keep buying at the highest price it will just keep going up and up
@@santoyoarmando81 lol better buy now before the interest rates go up
@@miamiliving6625 are you joking?
@@manp1039 no! I’m not! What happens when interest rates go up? The price of homes whose down! It will balance out!
I’m 30 y/o and my generation always seems to get screwed. When I graduated high school, jobs were scarce because of the recession. Now that I’m starting a family I can’t buy a house. Just my luck
33 here. Same bro.
im almost 27 , same boat here
29 here and same.
@A S while Alabama might be affordable, its problem is lack of quality schools and not as a robust job market as places like Texas, Colorado etc... an important factor on starting a family
It’s generational warfare. What X, Millenials and Zs are experiencing is the result of decades of Boomer policies and greed.
From someone that owns three properties and two are investments, my advice to those looking to buy a home is to not time the market. I still remember decades ago when people were saying that it's a bubble blah blah blah. Well, I'm sitting here looking real good when all the properties I have bought have doubled if not tripled in value. So again, don't time the market...buy when you are ready and comfortable.
This video lost all credibility when their main speaker was chief economist form Redfin.
I just see a bunch of people who benefit from higher housing prices, telling me that this is normal.
The only people who benefit is someone who is selling a home and doesn't need to buy another. Tell us who else benefits.
@@networth00 its only been that since the beginning of time
Well said!
Big problem is there hasn’t been any foreclosures in 17 months to bring inventory to market There are millions of mortgages 120 days past due
That is an excellent point sir.
“Millions of mortgages” these are still some people’s homes!!
Also there are more vacant houses and apartments than homeless people. We aren't supply constrained. It's a bubble.
This is a problem, yes, but you’re looking past the drastic evil and greed of Wall Street buying up the market lmao. That’s the real problem here.
@@davisbradford7438 homeless people are only usually homeless due to mental illness and drug addiction. Also we have to remember what the hell is a homeless drug addict going to do in an abandoned suburban house 5 miles from the city? No good areas to panhandle for money along with the fact they can’t manage to upkeep a property would mean they would likely starve to death as the home collapses around them
The thing about financial or stock market bubble is that if general population know there's a bubble, it won't burst.
The bubble burst only when it's least expected to
I’m from Philly and trying to buy a house in an around the city is insane. Most ppl move almost and hour away from the city just to buy a house but even those areas are going up. Lucky for me Wilmington, DE isn’t that far away but even Wilmington is starting to get a bit cut throat.
I live in Middletown, DE and the amount of people coming down here from Philly, NJ, NY etc is unreal!!! The market in Delaware is insane and isn't showing any signs of slowing down yet. I'm trying to get out of Middletown and lines of people are trying to get in. Wait til they realize its not what they think it is.
@@_J_U_S_T_I_N_ thank you for this! We just moved out of Philly to the Exton suburbs and were considering moving to Middletown next year. We wanted to get as far away from Philly people as possible as their mindsets are just ghetto. We will be holding off on Middletown as we see alot of people from Philly moving there and once that happens it’ll go downhill
Yeah towns around a phily are for filthy rich millionaires , forget ever owning a house in any of those towns, , maybe a barn )) but even on a barn property taxes will eat you alive, if you not making 7 figures a year forget buying a house around phily, Nj even cheaper than any of those towns,
All suburbs are like this. If therecs a big city nearby, the "commuter" suburbs will be high priced. Doesn't help that people are getting sick of dense areas and want more privacy.
I lived 30 mins outside boston MA / and near providence RI and the WHOLE area was city commuters. Single fam homes blew up when the restrictions on freedom and travel hit.
They are gas lighting us when they say it is hard to know when there is a bubble. The median house price to median income ratio is a very good indicator. When that goes above 3, watch out. BTW it was more than a housing bubble that triggered the 2008 Recession: it was a huge bet on mortgage backed securities that crapped out and caused the financial system to seize. Who knows how much leverage there is this time.
The majority of Chinese family in China making less that 1/5 of average u.s median income, and their property price are as high as here in New York City, so if they have no problem of paying off their home mortgage in 30 yrs or longer, why would you think the u.s housing market is in bubble 🤔🤔🤔🤔🤔
Why leave it to the capitalists?
I live in a country where we all pay tax, the government uses it to build apartment buildings, and you get the keys once you are 21 y.o.
If you have a family you get the keys to a bigger apartment.
P.S. You still build single-family houses in the U.S. like 300 years ago. I guess the "free" market did not have the incentive to build houses from concrete because marked-up cheaper houses make a higher profit. Yay capitalism! Houses made of wood do not age well on average, it's a fact. Each buyer pushes the deteriorating house to a poorer buyer. It's costly to your health to live around mold, rot, mice and bats in your hollow walls, inside an inflammable wooden box.
"I'm not rich enough to buy cheap things" makes more sense to me.
HerelgoAgain well alot of democrats have been bragging how Obama fixed the housing crisis back in 2010.
Lol a house price to median income of more than 3 is not a sign of a bubble. Plenty of cities around the world have had much higher multiples for the past few decades. For example in Sydney it’s at least 12.
@@regreteverything5001 The Chinese housing market is also a bubble. The vast majority of the average Chinese person's wealth is in housing. If the CCP allowed the market to correct itself, that would be dangerous for their regime.
This better be a bubble otherwise I'll never be able to afford a house. Will be a subjugated to a lower class, rent for the rest of my life life
as a single dad I am in same boat. guess I'll just have to invest more than I normally would and not worry about having to repair anything. I just hope rent doesn't get out of control also
You might not like what i’m about to tell you, but this is capitalism! And this is just the beginning! And fixing it i stead of changing the system, won’t fix the issue permanently , it will only slow down the eventual doom! You guys need to remember that the only reason your boomer parents had it better, was because of the social programs that were created to compete against the ussr! Also suburbs are terrible long term investment, the infrastructure(roads, sewage, electricity line) to maintain it is too expensive and will bankrupt counties and rely on cities to keep em afloat, but for how long! Also suburbs bring in less tax revenue and make it hard for small businesses to flourish, but instead support big businesses like walmart to monopolize everything!
@@ShadyD365 good idea! But i would discourage you from doing it! If everybody start moving to poor countries to benefit the cheap lifestyle, it will only make it worse for the poor people in those countries! Their rent will skyrocket, and many poor people can barely afford it! Many will start to feel like second class citizens in their own country!
Why pay rent and a mortgage when you can live inside your car for free.
We'll burn it all down before that happens.
I like how the advice at the end is "don't be poor"
The biggest impact on supply shortages is without question local governments that bow to nimby voters that either block development or significantly reduce density.
While I wasn't thinking this at the time, I'm so grateful I had a horrible landlord in 2017. I bought my house that year to no longer deal with my landlord or the possibility of having another horrible landlord.
Blessing in disguise reveals itself.
@@hegemondtm Definitely!
Lol
Slumlords are evil.
PROSPERITY
BONANZA
Regardless what they think privately, don't expect anyone with skin in the game to tell the public, "I own something that will go down in value."
The biggest thing driving the housing bubble is the rent bubble. Rent is too damn high. When it cost $1500 to rent a 3 bedroom apartment in a suburban area, that means that the same couple living in an apartment can afford a mortgage with a loan balance of around $350,000. I recently moved from Texas to Indiana and was looking for an apartment to live in while building a home and $1500 was the going rate for an 1,200 square foot apartment 3BR. I bought a 2,700 sq ft home at 413,000 for $1,900 ish a month. There is ZERO reason why rent is so high, other than renters can pay it and property managers can get it. Even when I first moved out on my own 13 years ago, I rented a 1 bedroom apartment (700 ish square feet) the rent was around 800 a month. I bought my first house (1146 sq ft, 2 car garage, .3 acre lot, 3br 2ba) for $105k and my payment was below $700/mo with a 5% interest rate. IMHO I feel like rent should always be significantly lower than a mortgage, otherwise there is little benefit to renting.
"If you think the home is overpriced, just don't buy it"
Uhh what about when ALL the homes are overpriced?
Landlords will appreciate you advise.
How about the government limit the amount of home that invest firms can buy most home are sold to firms versus single families. Making homeownership hard to obtain
PROSPERITY
BONANZA
Investment firms shouldn't be able to buy residential property. Period.
The Super rich buying everything. I think next is Farm land. This means they control food prices. They will even control prices of farming products like seeds etc.
@@manaoharsam4211 that’s already happening. Bill Gates owns a lot of farmland
This is the correct comment right here
I bought my house in 2019 and the value went up 50% in only two years!
my house value went up 25% in only two months!
Imagine buying in 2021 and lose more than -10% in few years.
50% I bought my house 2019 in 2 yrs
But if you sold where would you go?
35% in two years
"It's not a bubble"
Well it's not a solid foundation either
“Everyone who has a home has its mortgage underwritten responsibly…” LOL
There is a HUGE difference between getting a mortgage in 2006 vs 2021.
I like how CNBC always uses their news channel as their sources lmao.
State-Corpo media is not independent.
'We have fact checked ourselves and found that our news is legitimate.' 🤣
lmao right. Just something i've picked on watching them. Check out the video they made called "why a looming copper shortage has big consequences for the green economy". I'm like no, its ONLY you people who are saying that. But it's definitely a little fishy.
❤😆❤
is it really a "crash" when prices come back down to where they are naturally supposed to be rather than the temporary inflated prices?
Right on!
Yes
◻️SERCH ADITYA RATHORE-HE ALSO MAKES INFORMATIVE CONTENT LIKE CNBC
It’s a crash when it keeps going past that
PROSPERITY
BONANZA
There are 1.3 million homes for sale. There needs to be 3 million just to be in a balanced market. Prices aren’t going down anytime soon unless there is more supply added to the market or interest rates skyrocket.
@@SportsManVegetal not at all. It’s been going on for a while. Homebuilders have been under building since 2009.
@@SportsManVegetal I bet they were price reductions in Manhattan. You guys just had eight years with the worst mayor in the entire country. Communist Bill DeBlasio. Who wants to live somewhere where the police have been defunded and crime has skyrocketed. I don’t care which city it is. New York has reverted back to the 1970s. New York City, Los Angeles, Minneapolis, Seattle and Portland just to name a few are the laughingstock of the country right now. I live in beautiful Coeur d’Alene Idaho and the Wall Street Journal did an article several months ago that said we have the number one emerging yreal estate market in the country. We aren’t even a large metropolitan city. Houses here are still getting multiple offers above asking price. I see New York, New Jersey, Pennsylvania license plates over here all the time. It’s funny. All of those states are run by democrats.
@@SportsManVegetal it was the pandemic, Democrat leaders of these cities locking everything down and the millennial generation trying to buy homes for the first time and it all exposed how the builders under built for the last 12 years because of the last recession.
they will go down eventually when people stop buying because they can’t afford it. it’s not sustainable.
@@SportsManVegetal Manhattan has way too many problems and they keep getting bigger.
Despite the economic crisis, this is Still a good time to invest in Gold and Crypto
The rich spend less and invest more
Investing in these economic crisis will be one of the best thing to do,
You're right I think Gold and Crypto are the best to invest right now☺️
Gold's are good but crypto is better
I wanted to trade crypto but got confused by the fluctuation in price
So the best advice these professionals can offer is to simply just step back from buying overpriced homes in our local area. While all the homes listed in the local area are being bought out or outbid by people from out of state. Ridiculous.
Boom or bubble in 2021? Ill tell you next year
But seriously if it's sustainable, then it aint a bubble. White collar workers will move further out because they can work from home and low interest rates may repayments cheaper
@@dannyryan6411 This is happening in areas in poor cities that are not gentrified yet. Nobody is moving there to work from home yet the same thing is happening.
PEACE, PROSPERITY, BONANZA, FREE THINKING, OPTIMISM
I've been waiting for a housing crash since 2014. Now I'm ready to just throw in the towel.
I'm on the same spot.
Imagine if housing prices keep rising higher relative to inflation. It will cause a further divide between the haves and the have nots. The have nots will come up with an alternative. If no alternative is possible given our laws, there will be a backlash.
The best time to buy is when it's good for you. Don't wait for a crash. Timing the market doesn't really work out. The goal should be to buy and hold long.
Lmao
You mean since 2010? We bought our 🏡 for $65K in 2011 then sold it for $270K in 2020.
Am i the only one who still doesn't understand
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Seeking his contact details
Bourgeoisie analysis: "If you feel the home is overvalued and you're uncomfortable with the price, step back from it."
Proletariat analysis: "You can't afford to rent a cardboard box until the housing bubble bursts again."
As a millennial I’m going to sound like a boomer saying this right now… no one should buy a house that they can not afford to put 20% down and plan on staying for 7-10 years so you can weather the storm of a decrease in value..And you should always have an emergency fund on top of your down payment… it took my wife and I five years of diligent saving and living way below our means before we pulled the trigger on buying at what some would have called the height of the market in 2018. And if you think it’s too expensive don’t buy now.. it’s ok to rent. The whole attitude of I want this house and I want it now can be the cause of a lot of financial strain. Check your emotions.. Not all markets are exploding in value like the media states.. If the market does drop and you take these steps you all should be fine. Wishing everyone the best of luck.
I woudlnt say stick to 20% if after pmi , insurance and mortgage on a small home is less than a 1 br apt rental. If you had your job for some years, or your business has been operating through out C19 and plan to stay for 7 years or more, go for the house.
Well said! Have 20% down payment and have 6 months of bill saved for emergencies i.e Being out of a job.
@@cetriyasArtnComicsChannel For sure everyone's life situation is different. I would pay less than 20% if that was the case as well... In the Baltimore region, rent is relatively affordable even in the nice areas and there are plenty of homes... IF my monthly mortgage payment, taxes and pmi was less than the rent after putting less than 20% down , then the neighborhood would be less desirable. However if it was not and it was still that I way I would pad my emergency fund and invest the difference for a midterm goal.
Lol this is bad advice.
The sooner boomers die the better
I see my house as my home, i don't care if the bubble bursts, i want to live here till i die. The house you live in should be your home, if you see it purely as an investment you'll never be happy.
if you don’t look at it as an investment, you’ll always waste your time working for the investors. I’m talkin about the capitalism inflating everything and people like you accepting it as it is and being complacent. sure its simple enough to just work and pay for the house but thats what the system wants you to believe. its slavery in sheeps clothing.
investors are but a mere pathetic pawn in the game of capitalist chess where the CEOs are king and it sucks ass
@@Jpop11 sure, I feel like a real slave having this house under me, completely paid off and never having another housing payment in my life. sucks to be a slave.. should have rented until the day I die.
Some people do this to buy their dream house with their equity.
@@dirtbeard108 did you buy too much house? If it is more than 1/4 of your minthly proobably so. Homeownership is better long term then renting.When you pay off your house that is do much better than paying monthly for the rest of your life. Who wants to do that after retirement?
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The sad fact of the matter is that we didn't learn a lesson from the housing market crash. Homes prices in the last year just exploded the average American family is struggling just to get by.
Right now, I think you know it well
The video did not address home" investing". Most people when buying a new property will keep the older property and rent it out. i wish the video had addressed this angle. it is so prevalent to do so now.
This. 100% this.
🟧SERCH ADITYA RATHORE-HE ALSO MAKES INFORMATIVE CONTENT LIKE CNBC
Just as an example on the renting sector:
If a person has a 40 hr a week job paying $18.00 an hour, they make $720 a week. Their monthly income would be $2880.
That's below a 2.5 rent income requirement of an apartment charging $1400.00 a month. An apartment charging $1400.00 a month with a income qualification / requirement of 2.5 would be $3500.00 income a month.
Someone is paying that rent or they would all be empty.
@@networth00 they are working multiple jobs
@@networth00 rental houses will be empty if population goes down dramatically which is not happening yet.
That’s what I’m saying. Here in Arizona good luck finding a decent 1 bedroom for 1350 / 1400. It’s like they’re trying to rent out the natives. I don’t understand how anyone can live, specially if they never went to college. Housing has jumped dramatically in the last 3 years here it’s kind of ridiculous. My wife and I cleared over 130,000 last year and just trying to get into an apartment was competitive. Hopefully 2 years from now the market will cool down cause we’ll have 30% for a down payment. But foreals if it doesn’t I’m not buying a 350,000 house that will usually go for 250,000, that’s insanity. Thank you California, Oregon, Washington, New York and Colorado for sucking and pushing your natives out. Big businesses shouldn’t be able to purchase single family homes !! Gee lol
@@Skywalkah same in VA
I would love a housing price bust. Tired of renting a college apartment…. Income levels aren’t matching these prices
I can't think of any other type of bubble where we routinely explain it away by saying that people who are buying into it can afford their payments. Bubbles don't require a "economic catastrophe" to pop and don't pop when people can't afford to buy anymore - especially when "buying" entails taking out a negative-real-interest non-recourse loan. Bubbles operate on exactly one principal: the anticipation of future price increases. The pop simply because that can't go on forever.
Now, if someone wants to make an argument for prices increases due to the anticipation of future (hyper)inflation, or a permanent state of undersupply of a basic necessity like shelter, then I'd listen. It's just that if that's the case, then you're looking at the collapse of much more than just a housing bubble.
these "experts" didn't predict the 2007-08 crash, they aren't going to predict the next housing crash...
The housing experts aren't factoring in that everything is skyrocketing in price not just housing.
All the "experts" are people that work for companies that make money from home sales. Of course they will tell you all is fine keep buying.
It really is fine when you made absolutely sure, through income verification and other way, all the buyers can afford it. The crisis isn't the prices have skyrocketed. The crisis is the people who are left out of buying their home closer to work.
@@crosswire7777 if you are spending half your income on mortgage you can’t afford it.
@@scmsean tell that to canadians who've managed to spend a little over 3/4 their income on housing for over a decade
Houses going up in value is a disgrace, if anything you would’ve thought that they would’ve come down in price, especially at a time like this, with what is going on in the world right now.
Free and more money, higher wages, high demand and low supply for just about everything, low interest rates, etc.
Hope the bubble bursts soon so I can cash in and buy me a 300k home for 100k🥰
Yes, of course. Interest rates have been at “temporary emergency” low levels since 2008. Both political parties are doing this on purpose through the fed, just like last time.
They raised and keep raising property taxes so they getting their money either way, . Soon they will have to lower borrowing rates to 0. But will raise taxes some more
There needs to be incentive to build starter homes. All they do is build mansions. People are battling over these older homes that fit their needs, and now are still ending up house poor.
Yep that’s right the house note property taxes and mortgage insurance comes first everything else has to wait
No. We don't need to decimate the world's resources. It's not an unlimited supply. More than enough home3s to go around.
a builder will build whatever you want.
Yup, all I need is just a 1 br and 1 ba home, but I don’t want to pay nearly half a million for it and pay a $400 HOA.
I love that they use rock bottom mortgage rates as a reason why this isn't a bubble.
What do the experts think will happen when mortgage rates go up from here?
I agree, that actually undermined the point.
If everyone has locked in on a 30 year deal not much will happen
This isn’t 2006. At that time an adjustable rate mortgage made sense to flip a home as the ARM rates were considerably lower than a traditional mortgage as rates kept increasing. You also had regulations that encouraged sub prime loans to thrive as many people from all walks of life were purchasing 2nd, 3rd, and 4th homes as investment properties. Today, you have the lowest mortgage interest rates in history and no real difference between a traditional 30 year mortgage and an ARM. Sub-Prime loans are kind of a thing of the past as you now need to be well qualified to get financing compared to 15 years ago. I don’t think it’s a bubble. The market is overbought, but I don’t think the correction will be more than 10% once supply goes back up.
Where I am the avg. Median income is 42-45k a year. A home averages 200-250k, 300k plus gets you a move in ready quality. How is that affordable housing?
I don’t know this, now it’s up to you
The real question is how much inflation can the economy handle with all this money printing in the last two years
Absolutely no mention of the government printing money like crazy.
End the fedddd
PROSPERITY
BONANZA
What do you mean that’s a good thing.. I want to pay double it makes me feel rich💣
Strange how prices jumped 20 some percent in housing. Meanwhile, 20 percent of all US dollars ever printed were printed over the same period.
The government printing money won’t change the value of the house, just the value of currency. Apples and oranges.
Interesting they don’t mention a thing about the federal reserve buying billions in mortgage backed securities with printed money. Why else would fixed rates be so low?!
They didn't say anything about interest rates and that's like the most important part.
Sounds like another housing boom
You know a lot, do you have any comments
common knowledge to economic and financial people - and has been for while
These are not reasonable prices it’s totally out of control
Good lower those prices , non homeowners will be better off right now .
Because of the economic crisis and the rate of unemployment, now is the best time to invest and make money
You can say that again
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Experts last year: house prices next year will fall
Experts now: relax we aren’t in a bubble
Exactly
In 30 years of real estate salesmanship, I have sold more homes & condos by telling people NOT to pay the price that owner's are wanting. Fair market pricing and Arms length transactions are basis of Capitalism. Supply & Demand are elastic components of our economy, so normal may not always be normal, however, it's people's mindset based on our liberal media that sets trends in motion. In the car business, it's called being "buried in a car". I call this "buried in a house". If you're paying today's prices, it's a panic buy. Just say NO. And wait.
Exactly, when my wife and I were home buying, our realtor regularly told us if homes were being overpriced by the sellers.
Somehow its the liberal media right oldman? lol!!!
In my area, if someone took that advice 3 years ago (and didn't buy), there net worth would be at least $100K less today.
people always price it a bit higher and will settle for less unless you are in a really hot area that will not go down == doesn't mean you are getting a good deal - buyers always want to feel like they negotiated a good price - whatever that means - so you drop it a bit and seller still wins
@@sterlingmarshel6299 In our case, our offer came in a bit under appraisal value as well.
Never trust a Salesman best advice I've ever heard
Avg US home prices: $363,000
Avg Canadian: $545,000
😒
The Canadian dollar has traditionally been weaker than the American dollar though.
Those two numbers tell next to nothing except the average prices of homes in the US and Canada
@@carfreeneoliberalgeorgisty5102 those are both in USD, its about 730K Cdn. Our market went absolutely bonkers insane.
@@N0Xa880iUL Average wage in US is higher than Canada. If the US is in a bubble, I'm not sure what Canada is in.
Canada quintupled the money supply during the pandemic by printing and loaning like crazy. Our real estate market is the mainstay of our GDP currently and that's deeply dangerous. Plus there's a huge speculation and money laundering issue nationwide ... look up the Cullen Commission. They're only just beginning to realize the damage is so extensive we literally do not have enough research and regulation to take a full accounting of the situation in order to take back our markets.
Yeah ... it's a bubble, but not as we know it. The fact y'all have similar issues down south suggests common problems in both countries.
I think in my lifetime we will return to what basically is serfdom. Landlords will own most of the housing and we will be working to just pay the landlords. Housing is complex but investment in housing should be highly regulated.
Simple....we cook and eat these landlords. Problem solved.
except we live in the 21st century, back then not much was done for a long time because it was feudal times, nowadays we have, the internet, fast methods of communication, a generation that is angry, and i will put this lightly, "methods of annihilation" in dire situations
@@Tankerpaul223 finally someone gets it
@@Tankerpaul223 But what if these lords are guarded by robots and professional security companies? What if they silence and censor the social media to stem out any flame before it burns? These things keep me up at night, the future is scary.
Looks like you are correct.
I live in a liberal city in a liberal state. I bought my home fifteen years ago. My home has tripled in value yet my property taxes go up by less than two percent per year no matter how much my home has increased in value. This allows people to stay in their homes instead of being forced to sell because of soaring property taxes (like in Florida and Texas). In my liberal, Democratic controlled city, there is rent control. This past year, the maximum rent increase was 2.3%. If you have lived in your apartment for years and pay way below market rent, your landlord can't increase your rent by 50% or more just because the rental market has skyrocketed. Rent control protects families and the elderly from being forced out onto the streets. Keep voting for Republicans who fill you with fear over culture wars, immigration, fake voter fraud, critical race theory or anti-LGBT tropes or even attacking Mickie Mouse instead of helping hard-working Americans and the elderly.
Same people said 14 years ago that housing is a safe bet, it only goes up! 🤣😂
that is exactly what it has done.
I’m seeing a lot of flips in the area I’m trying to buy in. Those are now reducing in price 10-50k in some cases. Hope this trend continues because these prices don’t make any sense.
I just wonder how much are the people making that are buying these houses 🤔🤔👀
@@pyro5624 some of these buyers buy because of FOMO, then pay half (or more) of their take home pay to the mortgage.
And some are large investors.
There are LOTS of videos on RUclips of couples who bought in the past few months and regret it, some of these people didn’t even want a house, but for some reason bought anyway… like ooookkkk…
Doesn’t have sense.
I think housing prices will cool to pre-pandemic levels in the next 2-3 years. Honestly, a crash is the last thing you’d want because it’ll have further reaching devastation than just housing prices violently coming down (ie. Job loss, and homelessness).
Also, the idea of home ownership is great and all, but keep in mind that houses are constantly in need of maintenance. You’d be hard pressed to find someone who lives in a house for 10 years and doesn’t spend a dime on maintenance (AC/Heating repair, new roof, foundation repair, insect infestation, etc). And if you think ‘that’s what insurance is for’, OK, just realize that when you make a claim to the insurance company (let’s say a new roof) is like a strike on your record with them, and when the policy comes up for renewal it will be noticeably higher (you’ll pay for those repairs one way or your mother… 😋)
That's barely a dent depending on the total price.
🏮SERCH ADITYA RATHORE-HE ALSO MAKES INFORMATIVE CONTENT LIKE CNBC
PROSPERITY
BONANZA
In the future, don't buy any homes built in late 2020 to today. Contractors are building in a rush to get homes in an overpriced market. This happened 15 years ago; history repeats.
? What does building homes fast to keep up with demand have to do with anything
@@everythingUTrealestate litigation nightmare. Houses are not built to quality
I purchased a home in California for $360k a few years ago. It’s at $690k now. It’s my house and even I think that price is ridiculous. It’s a rental home now, and we received a ton of applications to rent our home. I feel bad for people who have to move to new cities. It sounds like it’s extremely difficult to find buy or rent a home.
this video aged well......were DEF in a housing bubble LOL
It sucks so much seeing all the already rich people scooping up all the houses and then charging almost double a mortgage just to get richer, only the already rich can afford down payments or the houses sell before you can even get approved, sucks being a renter these days, feels hopeless just paying towards nothing
Well said
@Oh My Oh my firstly I'm Canadian, the housing markets are very similar here so the video still applies, secondly, the housing market has been a mess long before sleepy Joe
father-in-law bought house in 1996 for $880,000.00; sold in 2000 for $1,988,000.00 ; invested in distressed houses n 2021 have 5 houses... 4 for rental... netting $23,000.00 per month in rental n capital appreciation of all houses $20,000,000.00..
Sometimes it's good to rent, mate, like right now. If you think about it, would you pay $15,000/year just for property tax (not counting insurance and other things yet) or pay $15,000/year to rent?
@@ifuknjk that is a great example of what is happening right now and driving up home prices...reinvesting equity. If you dont have equity, your a renter, probably never able to get out
Home prices cannot continue to rise and wages not rise. Since wages are not rising, we are in a bubble.
Banks are acting very cautious, Soo they know something is up...
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We are seeing the gap being created. Drastic separation of the future rich and future poor. 10 years from now America is gonna be a slum of haves and have nots. Go to cheaper states or get the hell out of here to another country. Greed has consumed this country
Definitely glad I was able to get my house purchased without bidding in this crazy market!
when did you buy? Was this your first home purchase?
PROSPERITY
BONANZA
When was this? I bought my house in 2009 and had a bidding war. I only got the house because the first offer fell through.
Every commentary in the video came from people that have a vested interest in housing price going up… just saying
Precovid: It takes me 6 months to build a turnkey townhome
Right now: it takes 27 weeks TO GET WINDOWS. I STILL HAVE A WHOLE BACK HALF OF A HOME TO BUILD.
NOBODY has the material to build up the supply!!!
Excellent point.
Though you could have just said it takes the same amount of time now just to get windows as it took you to build an entire house pre-pandemic.
I spent a few seconds there wondering what the difference was between 6 months and 27 weeks 🙃
Another problem is that people don’t care unless it affects them, in areas where affordable housing or more apartments can be placed have been complained about, people are more worried about their property value than people suffering to buy a house the tenderloin in SF is an example of how the rich corner the poor away and now that the homeless have moved towards richer areas it’s become an issue for the city to
I thought it was strange that nobody mentioned the supply chain chaos that has affected new homes being built. When a brand new houses are being built, and builders are in competition with each other, it helps to decrease prices. When new homes have lower prices, 30-year-old, unimproved, nothing-special ranch-style houses won't be listed for top dollar, because they can't compete with a perfect, new house.
When materials to build houses are available, and more new homes are available the market stabilize. I don't want to be the one stuck in the overpriced old house.
30 year old homes? lol try 40, 50 year old homes. here in the san gabriel valley (Los Angeles County) homes that were built in the 1950s, 1960s are going for 800 to 900 thousand!!!
So when the cheap new homes appear any day now, we will all be saved? Is that your take?
That's crazy town.
Exactly. Not even a hint more nuance than that. I am proposing that any minute now brand new homes will be sold for $50/sq ft and we'll all be in shangri la.
Either that or I was trying to point out a significant part of the 2020-2021 housing story that was left out of this analysis.
Unless builders seriously reduce the size of their homes - to genuinely make them comparable to these 20, 30, 40 year old homes - I would agree. As of late, it's extremely hard to find a new home that isn't at least 3 bedrooms and 2,000 + square feet. This increases the competition for inner suburb low 1K square foot homes as those are the size many current buyers (couples, singles, small families) want. We need new SMALLER supply to genuinely make a dent is across the housing market. With my market, it only appears the new supply is hampering values of other mcmansion 2-3K square feet homes.
Are we not gonna talk about the Board Game collection in the back of that economist room?
Right? Did she put it on display for this interview?
Capitalism board games
Yeah bro Daryl got great taste in board games.
I’m wondering about her cool poster - is it Yma Sumac?!
PROSPERITY
BONANZA
This kind of price inflation is a gravy train for banks, sellers, and investors but it is by no means sustainable. The bottom is going to fall out, and it will not be pretty when it does.
Being active and having been accepted on numerous properties in the madness, I disagree with the lady that said there won't be a burst, simply due to the fact that buyer's were having to increase & increase & increase on their budget, because nothing in lower-mid range was really available and if it was, it required so much work you'd likely be paying for out of your own pocket or having to take out additional rehab loan if that's even possible... I was someone who was approved for a lot higher than what I felt right about, but again we as buyer's were having to go outside our comfort zone for something, anything, this results in higher mortgage payment than we may feel equipped for, likely higher tax range annually, and many people I'm shocked don't have twenty percent to put down which should be required to prove responsibility. I think a lot of people over paid big time on property's and won't be able to handle the high payments plus maintenance on the place, they spent it all trying to overbid and were left with nothing to put towards upgrading the house. I am not alone, I know people who are waiting for foreclosures to start so they can go buy. Over paying massively for property's of course is going to have a lot of negative implications long term, for everyone. These people will lose money and property's will decrease in value due to lack of being able to afford maintenance, all these factors hurt everyone, it hurts the neighborhood, the economy, many of them are not likely to get back what they paid unless they upgrade the house and now they're in a more narrow market the more pricey it gets. This was a more fair analysis than I've seen with the full blown arrogance & gloating, but there is still a bit of that denial & too bad for the commoner's they don't matter anyway tone and profuse insistence there will not be negative consequences to this, I'll be really surprised if nothing starts unraveling from something so huge & corrupt over the next few years time. It's inevitable as far as I'm concerned, people overpaid by a lot!!! They neglected to touch that crucial detail but that detail can cause a pretty bad ripple affect.
This has nothing to do with a bubble. This is all about debasing the middle class or anyone else for that matter that isn’t already grandfathered in with home ownership, from becoming a property OWNER. to OWN property is to have power. Leverage. The ability to form legacies. Bubbles pop. This, this is NOT a bubble. This is a property seizure.
Agreed! Zillow is buying, hedge funs, and many corporations to rent them out
The housing market is in such a big bubble. My ex-boss lived in Lake Elsinore which was infamously a gangbanger town. Conventional wisdom would say that this wouldn't be a good investment, but he lived there because that's what he could afford. This pandemic inflated his home value from 90k to 400k. He sold it and moved to Colorado, the lucky dude.
@@ShadyD365 You could get a pretty decent townhouse or you could get a home downhill of Rocky Flats (It's amazing what a bit of illegally disposed of nuclear waste will do to house prices)...
Anyways, I've seen enough fire seasons so that I don't want a house in the mountains or up any of those canyons. It's better to live on the prairie and not have your house burn down.
I bought my home in corona ca for 135k in 2010 it’s now worth 550k idk how but it’s worth that supposedly. My homes paid for. I’m just waiting for all the foreclosures and evictions, so I can buy my 2nd home.
yes very lucky and was also aware and able to jump on the opportunity. What did he/she do for a place to live in Colorado?. What makes it much better is the generous tax-free capital gains on residential real estate if you live in it for 2 years. I think this has been one of the biggest drivers of real estate to go up. Sadly the real estate sales commission fees have been a huge boon for real estate brokers.. at the expense of real estate buyers and sellers. I am looking at some big disrupters in this space that are going to drive those costs down substantially.. just like that have driven down the commission costs to buy and sell stocks. As this happens.. it will open more opportunities for more people to enjoy the benefits of real estate ownership.. and will make this asset more liquid as well. keep n eye on RDFN, for example.
@@carmens1996 america is turning brown the southwest is majority Mexican Americans/ Chicano. California, Nevada, Arizona, New Mexico, Texas Soon it will be Colorado and Utah. Mark my words Hispanics will be the majority of this country in 50-100 years.
@@jalamela1480 cool
I have a strong feeling that people rushed into buying homes that they yet aren't capable of paying their mortgages due to the low interest rate. I feel a bubble coming from mortgage defaults.
Banks are smart bcz Every mortgage Have a mortgage insurance pay by home owner every month mean if homeowners fail pay their mortgage bank claim a full mortgage payment from insurance mean banks are not on rush to resale property cheap not any more 🤑
They offered some sound advice. My biggest concern is inflation. The best tool the fed has to control inflation is to raise interest rates. Once that happens, many people won't be able to afford their mortgage payments.
Most mortgages have fixed payments so I doubt that will be the problem.
We are beyond controlling inflation with raising interest rate. Feds keep saying inflation was under control and transitory, eventually they realized it was not!! What we are looking at is controlled implosion to bring down inflation quickly. I think stock, crypto, housing all will drop soon.
@@oatlatte they are rarely fixed.. your Taxes goes up, housing insurance goes up, as house age repair costs add up as well. My house property taxes alone increased $300/month in last 4 years.