I have to say, I am not convinced that the housing affordability ratio will return to around 25%. If real estate continues to outpace inflation, as it "always" has, then it is not reasonable to expect affordability to stay the same. Theoretically you would expect the affordability metric to slowly creep higher as a percentage, in reality, I dont believe it would slowly creep but rather occur in shorter bursts as stresses in the market reach a certain threshold. It seems that is what we have seen recently. As the guest stated himself, there would need to be massive change in the market to get us back to around 25% expense to income ratio. Would it not be more reasonable that affordability more or less levels off where it is now, and that becomes the new normal at least for the next decade?
One large point they miss since they look at past few years is demand is driven by excess cash due to pandemic era saving and govt stimulus! You can reduce rates it won’t increase prices. People won’t be looking at buying houses when there’s layoffs and baked in inflation. Based on conservative estimates people have just spent their excess savings in march and you can see the impact already as everyone stops spending.
@@dissident112 its already underway. Im seeing things slow down at my business past few months hence I started to research it now its spreading to other parts of economy.
Good video. Can I offer a tip for the audio mix? It sounds like the compression is too high on the host’s microphone. Turning the gain down a bit and slowing the attack and release will make the audio sound less hot and more pleasing to the ear.
I do not think we will see housing prices shoot up if interest rates come down. There seems to be a disconnect from the housing market and the market over all. Underwriters still have to approve these loans at a time where credit card and auto loan delinquencies are rising.
😂 я вам сейчас расскажу ужасы жизни в Сибири .. мой частный дом 200 м2 отапливаю электричеством 😂 стоимость 1 киловатт = 0.011долларов .. налог на дом 0.15% в год. . вода бесплатная из скважины ) бензин 0.6 доллара литр .. хлеб 0.5 кг -0.3 доллара ) зарплата после уплаты налогов на руки 1200 долларов )
I have to say, I am not convinced that the housing affordability ratio will return to around 25%. If real estate continues to outpace inflation, as it "always" has, then it is not reasonable to expect affordability to stay the same. Theoretically you would expect the affordability metric to slowly creep higher as a percentage, in reality, I dont believe it would slowly creep but rather occur in shorter bursts as stresses in the market reach a certain threshold. It seems that is what we have seen recently. As the guest stated himself, there would need to be massive change in the market to get us back to around 25% expense to income ratio. Would it not be more reasonable that affordability more or less levels off where it is now, and that becomes the new normal at least for the next decade?
I teach financial literacy and the metric is 28% housing debt OR 36% combined debt, to be affordable. So I agree with you.
One large point they miss since they look at past few years is demand is driven by excess cash due to pandemic era saving and govt stimulus! You can reduce rates it won’t increase prices. People won’t be looking at buying houses when there’s layoffs and baked in inflation. Based on conservative estimates people have just spent their excess savings in march and you can see the impact already as everyone stops spending.
@@dissident112 its already underway. Im seeing things slow down at my business past few months hence I started to research it now its spreading to other parts of economy.
Not the case in my town (Lake Charles, La). We are down 20% in the last 2 years. The interest rates are killing our market.
This is the most informative up to date podcast I’ve listened in a long time. Amazing guest
It's the economy hyperventilating. Take a deep breath and seller carry on
Good video. Can I offer a tip for the audio mix? It sounds like the compression is too high on the host’s microphone. Turning the gain down a bit and slowing the attack and release will make the audio sound less hot and more pleasing to the ear.
Love this intel. Anybody know what data sources Andy and Dave get their information? I’d love to do deep dive analysis myself !
Love your content! Your gain is a little bit too high on your mic. It’s distorting.
Remember to buy negative cash flowing rentals like BP tells you.
Great answers from the guest!
I do not think we will see housing prices shoot up if interest rates come down. There seems to be a disconnect from the housing market and the market over all. Underwriters still have to approve these loans at a time where credit card and auto loan delinquencies are rising.
Seeing a lot of estate sales right now...seems like this will continue for a long time
The main reason is inflation! When the money is devalueting prices can’t go down
Why does it say 'LICE' in the background?
It says Ice
as a reminder to take care of your hygiene
@@jennifermascarenas8406 why would it say 'ice'??
@@MegaSuperEnriqueas a reminder to keep your beverages cold
It’s an unfortunate logo design.
lower interest rate is not going to help anyone that cant afford at the moment. its just going to raise home prices again.
I refuse to play this game the world is doing. Game is take all your money. Houses especially. Im perfectly happy renting a cheap apartment.
😂 я вам сейчас расскажу ужасы жизни в Сибири .. мой частный дом 200 м2 отапливаю электричеством 😂 стоимость 1 киловатт = 0.011долларов .. налог на дом 0.15% в год. . вода бесплатная из скважины ) бензин 0.6 доллара литр .. хлеб 0.5 кг -0.3 доллара ) зарплата после уплаты налогов на руки 1200 долларов )
1st - 10th