We are one of the homebuyers in Florida that walked away from a new build contract and our deposit. When we got into contract in December 2021, interest rates were good. It then took forever for the builder to do anything and a year later the interest rates were so insane that we couldn't buy. There were a lot of other problems that made that home impossible and walking away from our $40K was our only choice in the end. Now we are waiting for the market to correct.
@TheJRic13 We couldn't lock a rate until 90 days before closing but they kept pushing the closing date back. We locked at 7% and that was a deal worked out by the in-house lender but each time they pushed the close date back we would have to pay something like $1,000 a week to keep the rate until the house closed.
But we knew we wouldn't be able to afford the 7%, especially with the rising HOA and CDD fees that never go away. When we first signed the contract, I believe interest rates were still around 3.25% or 3.5%. We couldn't anticipate such a jump and in the end couldn't afford it. There were other issues as well that weren't financial.
@@MissyMae15 im sorry about that. Thats bs they should refund your deposit or at least half not your fault you cant control interest rate and can afford it anymore 4 to 7 percent is a huge jump.
The fact there is a forbearance still if effect while there is record unaffordability is absolutely sickening. Leave it to the government to really mess up the market.
I wish the US and state governments would completely hands-off the real estate markets. No tax breaks, no purchasing mortgage securities, and no subsidies of any kind, except for low-income people, for housing.
I’m a owner operator truck driver with 14 hour per day to listen. My wife and myself are looking to buy a small homestead farm. Your advices is priceless and addictive 😊 keep up what you’re doing. Thanks so much
Y'all kept me up past my bedtime tonight, but, it was worth it......this was a really fun show tonight. Please do more episodes like these, where the viewers are able to call in. As always, thank you.
I’m just in awe of the guy asking whether he should buy a 1.4 million dollar rental property, only be able to collect $8k a month for the 4 units, asking whether it’s a good idea, and he also happens to be in Finance?!? 🤦🏼♂️
Even if you have not been in the business for a long time, you can certainly connect the dots when you go from selling 4/month to 0 in months. You talk to multiple prospects daily that cannot/will not make a move right now because of rates, affordability and /or uncertainty of the stability of our economic future. It’s even more alarming when you talk to industry professionals across real estate, lending and title that HAVE seen the last crash (10+ year vets) that conquer they have never seen it as bad as it is now.
So frustrating when the agent won’t call you back. No wonder it’s not selling. Imagine if you did go under contract it would be a nightmare to communicate if anything came up. Makes you want to call the seller directly. But, that would be unethical. 🤷♀️
Looking for prior listings of the same house is very good advice. On several occasions, I have seen a listing, with a huge price increase over the prior sale price, that claimed the house had been completely renovated. The photographs from the older listing were identical to the photographs from the current listing, which strongly suggests that the current seller did nothing to the house except raise the asking price.
It's starting. In Atlanta we used to have tiny $2,000 price reductions up until September. Since then it's much more common to see $20,000 - $30,000 reductions on the median price home. It's the only way they're selling, everybody ignores the tiny reductions now. Same thing about rate buydowns from builders. Buyers are ignoring the 2:1 rate buydowns and are going for the 30-year fixed 5% mortgages instead.
I am in Shenandoah VA - We own - 20 years in this home …… Friends are telling me they are still selling to cash buyers - who are turning everything into a rental that they fix up with a new kitchen and bath - they are upping the rents 500 - 800 above what rents have been in the past two years …… Renters are now paying more for rent for a small apartment than what we for mortgage our 3 K sq Foot home 😞 …… I feel bad for people trying to buy or rent right now ….. people who want to own a house are being passed over for these cash investors - I hear that the agents with buyers are getting upset over this situation ….. I watch you to be informed …… fortunately most of my clients are well off and doing well
I live in Shenandoah county….. my town mangers have our lawyer looking into this problem - they want to see what they can do about this ……. the rentals are to high for the area ……. my friend sold her apartment building - rent was $800 a month …… new owner fixed up the apartments - they are now $1,400 a month …… thats more than most people can afford in my town …… houses are over 2,000 a month - people with average jobs can not afford the rent I listen to stay informed …… something to chat about with friends and clients …… I too bought a home 20 years ago & my mortgage is less then these 1 bedroom apartments my husband travels to NV to teach - he is seeing more people loving in cars - students living in cars
I would like to see a line item breakdown of what exactly an agent is doing for the money. We recently sold a home for $850k the agent fee was 4%, so $34k...and he didn't do sh!t...I had to arrange for a revised set of photos, I had to negotiate with the buyer, and he screwed up the final prorates of utilities...so what did he do for his $34k?
You can't extrapolate from your one bad experience, with what sounds like with a very poorly trained or unprofessional realtor, that every single realtor is as bad and offers no benefit from their knowledge and experience to get their customer the best price possible with the least amount of problems of any kind popping up that they can then help solve quickly to their customer's benefit. Hopefully the recent lawsuit will result at least in much more extensive training in some apprenticeship type realtor program so all realtors are much better equipped to be of benefit to their first, and every future client, and a better way to pay for their services can be developed soon.
I think all the law-suites will bring us the EU modele …… were buyers and sellers pay for time …… property is not an asset that makes you money - flipping it
Great show. Thank you. Retired realtor here…I totally agree with you on the agents, not calling back. We’re looking to move to Washington and retire from San Diego California. Washington agents are soooo laid back. They don’t returned calls, some don’t know ANYTHING (!11) about the lot they’re listed/ mind blowing!!
Retiring May 31 2024. Heading to the Villages in Florida. The prior housing frenzy is nothing but an emotional insanity for people thinking they are missing out. Renting June 2024 to June 2025. Will snap up a few places for ourselves and our children to purchase duplexes to start them in real-estate. The cycle will continue and within 7 to 10 to 12 years the kids have positive income paying their rent. Your one of the best I follow as its all sound common sense based on various other factors that you uncover. Airbnb, ghost inventory, major company bankruptcy, commercial realestate loans due, and high interest rates create the perfect storm. Just sit on the sidelines and wait it out. Thanks for all the informative information. You guys Rock!
Florida. I find it ironic how condo prices suddenly quadrupled, then the surfside mandatory repairs and insurance requirements when interest is at an all time high.
I enjoy your candor/directness on housing issues. My wife and I are retired living in the panhandle. We don't live on water but are sandwiched between the gulf and bay. We have a 30 year fixed at 2.8%, but like many here in Florida have basically two homeowner insurance with wind coverage thru Citizens. We built a modest home 2020, with high impact glass windows, 22kw generator, to reinforce survivability during a hurricane, one note we are not in a flood plain. We have a good retirement, but Im not content living here when looking at future insurance and tax increases. We have also seen a 20%(+) reduction in home prices, Its a bad time to even think about selling, so we have made the decision to stick it out, carefully moderating our financial situation. What I have learned over the years is that debt is the key to surviva, know the difference between needs and wants.
I had my listing boycotted by an agent in a hi-rise condo because she was not the listing agent and would not show any units unless she was the listing agent not all but most agents I have worked with are greedy
It is so good explanation. I saw and keep my eye on it but it ‘s still not very clear a picture on real estate sector until I watch your video now. Please continue to educate people in this hard time. Many people is appreciate your show time. The big storm is coming . Thank you so much .
I finally graduated as a an engineer 8 months ago. Together me and my wife, we both make good-decent money, and yet we tried to buy a home last month (November 2023) and we were informed that our income is too low, and the only options we have are 30-40 year old apartments here in Miami-Dade, keep in mind this apartments are not in the city, they are 40 minutes from the city of Miami. I always thought that becoming an engineer would finally open the door for me to buy a townhouse, something small but decent. Seems like I was wrong.
I don’t believe rates will come down and I think housing prices will stay elevated. It sucks but Hyperinflation is coming and unfortunately rates will most likely go up fast. They printed too much money the past few years the fed can’t afford to cut rates. Debt will devalue
I think most of that money has already been spent on stupid things like Taylor swift concert tickets. I give it a few months before people start hitting the wall
If they stay elevated then they will stay on the market. Unless you are paying cash a lot of people will not qualify at these prices. These prices along with the interest rates are unsustainable. I’m seeing houses on the market longer with price reductions.
@@CraigC-h6b I'am selling my house in a very nice neighborhood soon, there is a lot of cash buyers in this area as it's a active adult community with low HOA fees, 20 year old house but being in N/W Ohio my house as not really went up that much, yes in 20 years it has but just the normal 4-5% a year. It's a problem finding another one but they do come along in my price range.
I hate how the realtors that I have used in the past do not give comps when looking to purchase a home.When you sell your home, they give you comps but when you buy,why don't they give you comps of what you are looking to buy? I feel like I have to beg. I can use Zillow, realtor, redfin, etc.. But I have no access to the mls. It is so frustrating! And in a non disclosure state, you cannot see what they bought the home for! Agents should be able to get you comps when buying as well, IMO. Love all the info and really feel like you guys are for COMMON SENSE!
Stay curious. The banks are not losing money every month off these lower interest bonds. They are making very low interest, which is a positive cash flow. The issue is that now that interest rates have risen, the bond itself is worth much less. If held to maturity, this is not an issue. However it’s a big issue if the banks need to sell these bonds off to the secondary market in order to refund depositors. So no they’re not losing money. And an unrealized loss may end up being a none issue or if can end up being an issue so large it puts a bank under.
I'm with Melissa on team giant screen haha. Glad to see things continue to trend down. Some markets are more resilient than others, but they all should fall. I'm biding my time. A lot of sellers in my market are holding out for a hail Mary cash buyer. Those have almost completely dried up though because those folks can't sell their houses in the west coast market to be able to come here with cash.
I think it was SO RUDE of Todd to say the 1st caller's realtor don't even know what reality is. Don't matter if the person works for 3 years, 10, 30 years, if they work hard and educate themselves why does it matter. Just because you're old don't mean you know everything. She was right to tell her client (George) not to buy. He don't have what it takes to keep the house. I would tell him the same. Wouldn't want him to loose all his hard earned savings.
The people whose credit is showing paid on time, is showing that because ALL of the credit bureaus aren’t reporting accurately or in a timely manner, one in particular actually has a disclaimer stating that if you upgrade your membership they WILL REPORT YOUR SCORES MORE OFTEN. I think that could or should be ILLEGAL. It’s definitely SHAMEFUL, you guys are AWESOME, keep informing the people. What is your opinions on when the housing prices will decrease ?
Price reduction, but minimal (e.g., $10k price drop in the zip code 20910 in MD where my rental property is located). I still don't see what is considered to be affordable homes. Single family homes go for about $550k to $1.4 million. Your house example goes against what you are saying in your RUclips segment. The price increased 32% in a short time period. I don't see a failing market.
Love the idea of allowing your watchers to chime in. I'm an appraiser in Oregon and macro study and would love to join in you discussion another time. Just one piece of feedback, most can't commit 2 1/2 hours to a podcast. Maybe call it 30? Regardless, thanks for what you guys offer to the public, it's a great service.
The bigger bandaid will not work to cover all the cracks since the bandaid is not able to make sure the bandaid can support the structure ! I am glad I am semi-retired and on my last leg. I’m planing to die poor and I will not be the richest person in the cemetery.
Tip: Never chase the market ESPECIALLY when it’s going down. Appraiser and Realtor since 2002- I saw it with my own eyes. You never want to chase the market especially when it’s going down… you want to set the market or you will lose much more during the chase downward.
@@patgarrett9454I think they mean “chasing the trend”, but late. So like getting into flipping houses now while the market is on a decline would be a bad idea - there’s already too many people doing it and not enough opportunity left, plus with the market in decline it’s extra risky.
banks borrow 7 to 9 times a deposit from the fed window. So when the bank was lending at 3%, that money they lent out was borrowed at .25%. So they are not losing money on the low interest loans. Its when the real estate values go below the amount of the mortgage that the banks get in trouble, as the asset to secure the mortgage is now worth less than the mortgage. when you "mark to market" the bank now shows a loss on their books. Right now prices haven't fallen enough yet. This is the reason the feds are doing all they can to keep the home values up.
I had to pay 26k at closing for my solar panels that had 15 years left. I leased because they had told me if I buy them, they do not service them. So I leased so they can service them. Needless to say servicing them does not include Tesla going up on the roof to clean them!
@@janicenunn8525 interesting. I think it depends where you live with solar. New construction homes in CA require solar so the builder puts it on. Some communities have full solar with 2 batteries at about 60k that gets added the purchase price on all electric communities or you can lease them. It gets expensive at 15k per battery. But in CA, you cannot be off grid all day while the sun is shining. The PG&E or SoCal Edison have you set up to be off grid during peak hours (before 9 am-4pm) and on grid during peak because they don't let you be off grid during the time it's producing and use the battery back up the rest of the day. They want you to keep some for emergencies. But in states that allow you to use solar as long as the sun is shining, then that might work. You never get back what you paid when you sell, like a pool. But if you buy and live in the house, if you break even after 10 years maybe. I have not seen an HOA that allows panels on the floor but that might work if not in an HOA. Solar is still pricey if you are not buying you do not get the tax credit and getting someone to assume your lease on non new construction is hard if they have debt and are maxing out their DTI. I wish I was told about it when I leased panels in 2013. I did not know I had to clean them!
There have been no showings and no traffic during my open houses in the last couple of months. Got one interested buyer but not interested in the home with a 29-year tile roof, in Daytona FL
I am one of those "ignorant" home sellers who don't believe agents are worth the tens of thousands of dollars they earn for doing the bare minimum. I used one that charged a FLAT FEE and saved thousands. I recommend this route.
I bought a week (yes a week) in an ocean front resort in Florida. Paid 22k put down 2k. I pay $319 per mth. And $1300.00 a yr for maintenance. All because we couldn’t afford to live in Florida. I’m scared because even though the property is new it’s a high rise and now I hear in the news that in 2025 the laws will change and the prices will increase tremendously, I need some advice???
To the guy that called in on banks having unrealized loses. This is my understanding on how this works. Say you bought a $1 million 10 year treasury paying 2.5%. Then interest rates on treasuries go up to 5%. The value on your 10 year goes down because to make it competitive with the new 5% treasuries it’s worth less. Normally this isn’t a huge problem for a bank, or anyone else, if held to maturity. The problem is if the bank has to sell. For example if they have a run on deposits. When they sell the loss becomes realized.
Hi ,I'm from uk .what's happening in USA mirror's here in uk .North v South when it comes to wealth. North poor South Rich.massive migration happening now ,the ,older southern people are buying homes in the North as they are cheaper .and frees up money to live comfortable ,the younger generation don't stand a chance .A home is a home should never have been a commodity. No solid foundation to work from ,no wonder things in the world are getting bad .too much pressure on families causes arguments ,unsettling times produces so much damage to our well being .A great pod cast thankyou
I wish prices would level or even come down a bit here in Orange County Kalifornia. Unfortunately, it hasn't even leveled out! It is still increasing at a reduced rate but still increasing!!! From agents, properties are being sold and went into escrow before it even hit the MLS listings! Properties are also getting above asking price! One property got an offer of $100K above the seller's asking price! Not sure if there were multiple bids but that was just this past week! So no, not happening here in SoCal!!!
the first 100 years of USA we had no inflation because we were on the gold standard, all this going on now is not Trump or Biden like most of society thinks, it started with Nixon in 1971 and now this is the end game of the fiat ponzi scheme. I moved from Phila to the Central PA mountain after 2008 because most economists predicted that the money printing would just postpone the great depression we needed in 2008, now its gonna be worse because we pumped it up a lot more
I was renter for many years.. COVID sunk my ship. All you said was true only thing that saved my ass. My two small houses were paid off. Sold at peak of market. But COVID took my nest egg. And was relying on renter income.. back to the grind Stone...
I was thinking about the guy with the house that burnt down. I thought about insurance and wondered, who has called their insurance company and increase their coverage due to inflation cost? From what I gathered, he’s $100k short!!
This segment is so educational. I am gearing up for this housing correction. I want to buy a house at what I can afford and is not a regret so when the market does it’s up and down it will not affect me cause I plan to live there for a long time.
Everyone that can, should buy a battery pack, small portable refrigerator, and a van. Just pick up 2 jobs and just boycott the entire real estate system for the next year.
I have a friend who workers for a company that does major electrical work for new home builders in Washington state and he says still getting bonus checks. Last one was 1800 bucks. Doesn't seem like they are slowing down up there just yet.
I am in California, I wanna stay here. However it is so damn pricy and the crash here seems to be much slower =/. I'm trying to buy a house in Ventura county, but it is like the 5th most expensive county in CA =/. Would be cool to live in Orange county too though. Laguna beach seems like a nice place to live...... *sigh*. Trying to wait for 2018 pricing, we'll see...... >.>.
Aloha Todd you should check the home's location median income to get an idea of what is the median affordable payment then price the home accordingly....so if the median income is 6000/mo. Then the payments should be about 2000/mo. which means the median price of the home should be about 250,000, assuming 0 down.....this gives a quick rough calculation....what ever the down payment is you can add that to the 250,000....this gives a "thumbnail"....
We will have to see if investors start selling en-mass. If so, we might get the expansion in inventory needed to drop home prices. This could happen if the stock markets continue to look attractive and the Fed holds or raises rates again. Rising stock markets and flat or falling house valuations + high interest rates, could push real estate investors to deploy their money to competing investments. Then we just might see a scenario where home prices fall amid a rising stock market. That would be an ideal time to sell some of those inflated stocks to diversify into real estate if you like.
What it is important is how much were the house prices were reduced ? If 50% of the houses for sale, the prices were reduced by $1, then what's the big deal
What the hell happened to 3%-5% organic home appreciation and modest profits from dealerships instead of ridiculous mark ups as and miscellaneous fees!!!… property management are now asking ridiculous “administrative fees!!”…plus other “fees” on top of other overzealous “fees”’!!!!😳😳😳😳😳😳😳….by the time you pay all the”fees” you want be able to afford to pay moving cost & your emergency fund will be $0!!!!!😳😳😳😁😁
Built in Jun 20 @ $404k...sold Aug 23 @ $675k. Divorce forced sale - sadly I gave up a 2.875% 30 yr fixed rate mortgage! Capital gain took a lot of sting out of the divorce 🤣
I was wondering what you thought of this idea for a buyer agent contract. Agent 2% with an additional 0.10% for every 1% they help me get the house under current list price which I'll pay for outside of the mortgage (Can I do that?). Home Price(1-discount) (0.02+0.0010*discount) vs Home Price(1-discount)*(0.03) I think my agent would start making more money once they break 10%.
Honestly are they actual price reductions??? What I see is sellers putting their homes on the market for ridiculous prices and then realizing things have changed so they have no other choice but to reduce that asking price. So I wouldn't call that a true price reductions, but more of a back to reality. To me that is not a true price reduction, but a reality check. Houses are still selling in my area but still have a huge issue with not enough inventory. What I see is we are going back to a normal market...price values will not increase at the rate it has, your not going to sell in 24-48 hours, and you will see less bidding wars. Homes will go back to more realistic days on the market. It needed to slow down back to normality it couldn't continue the way it was in 2020-2022. There is still a huge deficit in inventory that is not going away any time soon. I look at some of the prices agents are listing homes for and it's ridiculous and buyers are not going to overpay for a home anymore. Those buyers that overpaid for their homes in the last 2 years where they offered a ridiculous amount over the asking price & paid cash for that difference...of course they are potentially going to see a decrease in the value because they overpaid in the first place. Just my opinion.
Agents have to disclose info from inspections, but they DON'T need to disclose seller motivations!!! You can ask, but they can withhold any of that and should withhold that unless seller allows them to disclose that.
In Your example of respresenting an interested buyer, I have been known to pay cash above the listing agreement contract, just like a TIP. As long as I KNOW that I am getting the DEAL that I want. You save me big bucks, and you should get paid for that service. I am not a penny pincher when it comes to "tipping" for excellent service. I don't care whether it is a car salesman, house salesman, contractor or landscaping company. They help me get what I need, and I help them ( local laws are followed). I am discussing business, money. This is NOT a hobby.
Absolutely 💯 AGREE ‼️ I have been warning people about the coming collapse...of the monetary system. The housing market is just one of the victims of that. Burlington area Wisconsin is getting many many price reductions in the last few weeks. Rob Schroeder
2003 was the peak of the market here and bottomed between 2008-2013 with another dip in 2015. 2023 feels like 2003 + 2013. And then 2024 will be like 2014.
Why are real estate agents paid by the price of the house a straight percent? Homes have gone up 25% and some 100% in only 3 years. Why are real estate agents able to capture that money from the sale? They are doing the same job as 3 years ago and in some cases taking 100% raise for themselves. 800,000 home agents split $40,000? Really? They did nothing to add to the value and upkeep of the home over decades.
I would like to buy my first house . do you think is good time to buy now or I have to waiting until next one or two more years?? wait for the interest low a little more??
The norm with prices correcting. It may be worse next year since the feds can not reduce rates . The damage done by the federal reserve is not repairable. The future is the country of renters!!!
If all the first time buyers, said bugger that I am not buying at that price, the market would have crashed and they would have picked up a house for nothing.
We are one of the homebuyers in Florida that walked away from a new build contract and our deposit. When we got into contract in December 2021, interest rates were good. It then took forever for the builder to do anything and a year later the interest rates were so insane that we couldn't buy. There were a lot of other problems that made that home impossible and walking away from our $40K was our only choice in the end. Now we are waiting for the market to correct.
40K...😑🥺😰
Damn 40k smh thats tough.. were you not able to lock interest rate new builders usually can get you a 5 or 6%.
@TheJRic13 We couldn't lock a rate until 90 days before closing but they kept pushing the closing date back. We locked at 7% and that was a deal worked out by the in-house lender but each time they pushed the close date back we would have to pay something like $1,000 a week to keep the rate until the house closed.
But we knew we wouldn't be able to afford the 7%, especially with the rising HOA and CDD fees that never go away. When we first signed the contract, I believe interest rates were still around 3.25% or 3.5%. We couldn't anticipate such a jump and in the end couldn't afford it. There were other issues as well that weren't financial.
@@MissyMae15 im sorry about that. Thats bs they should refund your deposit or at least half not your fault you cant control interest rate and can afford it anymore 4 to 7 percent is a huge jump.
I think a lot of sellers are standing on the dock not realizing they missed the boat.
The fact there is a forbearance still if effect while there is record unaffordability is absolutely sickening. Leave it to the government to really mess up the market.
I wish the US and state governments would completely hands-off the real estate markets. No tax breaks, no purchasing mortgage securities, and no subsidies of any kind, except for low-income people, for housing.
If I lived in your state I would work for your brokerage! Listening to you is like being in my own head. You're a geat agent, we need more of you.
I’m a owner operator truck driver with 14 hour per day to listen. My wife and myself are looking to buy a small homestead farm. Your advices is priceless and addictive 😊 keep up what you’re doing. Thanks so much
Y'all kept me up past my bedtime tonight, but, it was worth it......this was a really fun show tonight. Please do more episodes like these, where the viewers are able to call in. As always, thank you.
Same
I’m just in awe of the guy asking whether he should buy a 1.4 million dollar rental property, only be able to collect $8k a month for the 4 units, asking whether it’s a good idea, and he also happens to be in Finance?!? 🤦🏼♂️
If in CA.. I would buy it. Specially if it’s new with no HOA…
Even if you have not been in the business for a long time, you can certainly connect the dots when you go from selling 4/month to 0 in months. You talk to multiple prospects daily that cannot/will not make a move right now because of rates, affordability and /or uncertainty of the stability of our economic future. It’s even more alarming when you talk to industry professionals across real estate, lending and title that HAVE seen the last crash (10+ year vets) that conquer they have never seen it as bad as it is now.
So frustrating when the agent won’t call you back. No wonder it’s not selling. Imagine if you did go under contract it would be a nightmare to communicate if anything came up. Makes you want to call the seller directly. But, that would be unethical. 🤷♀️
Looking for prior listings of the same house is very good advice. On several occasions, I have seen a listing, with a huge price increase over the prior sale price, that claimed the house had been completely renovated. The photographs from the older listing were identical to the photographs from the current listing, which strongly suggests that the current seller did nothing to the house except raise the asking price.
Banks are collecting 2.5-4% from borrowers and paying 5% to borrow... nothing to see here
Great insight on your local and the general market! So glad I stumbled across your channel. Thank you so much!
What a great show. I really enjoyed the callers stories and input! 👍
I’ve seen the price reductions, but it has only been from insanely high to only a little bit obnoxiously high
It's only gone from ludicrously expensive to preposterously high in my area.
It's starting. In Atlanta we used to have tiny $2,000 price reductions up until September. Since then it's much more common to see $20,000 - $30,000 reductions on the median price home. It's the only way they're selling, everybody ignores the tiny reductions now. Same thing about rate buydowns from builders. Buyers are ignoring the 2:1 rate buydowns and are going for the 30-year fixed 5% mortgages instead.
@@AB-fq4mr that is good. I’m tired of seeing the cheapest town home in an okay neighborhood being 700k. The prices are obnoxious.
@@rd24life Which city are you in?
@@Nicole-zv7ee Washington DC metro region
I am in Shenandoah VA - We own - 20 years in this home …… Friends are telling me they are still selling to cash buyers - who are turning everything into a rental that they fix up with a new kitchen and bath - they are upping the rents 500 - 800 above what rents have been in the past two years …… Renters are now paying more for rent for a small apartment than what we for mortgage our 3 K sq Foot home 😞 …… I feel bad for people trying to buy or rent right now ….. people who want to own a house are being passed over for these cash investors - I hear that the agents with buyers are getting upset over this situation …..
I watch you to be informed …… fortunately most of my clients are well off and doing well
I live in Shenandoah county….. my town mangers have our lawyer looking into this problem - they want to see what they can do about this ……. the rentals are to high for the area ……. my friend sold her apartment building - rent was $800 a month …… new owner fixed up the apartments - they are now $1,400 a month …… thats more than most people can afford in my town …… houses are over 2,000 a month - people with average jobs can not afford the rent
I listen to stay informed …… something to chat about with friends and clients …… I too bought a home 20 years ago & my mortgage is less then these 1 bedroom apartments
my husband travels to NV to teach - he is seeing more people loving in cars - students living in cars
Last year, I retired as a recruiter after 16 years. The QUALITY agents were ALWAYS the people that picked up the phone.
I would like to see a line item breakdown of what exactly an agent is doing for the money. We recently sold a home for $850k the agent fee was 4%, so $34k...and he didn't do sh!t...I had to arrange for a revised set of photos, I had to negotiate with the buyer, and he screwed up the final prorates of utilities...so what did he do for his $34k?
You can't extrapolate from your one bad experience, with what sounds like with a very poorly trained or unprofessional realtor, that every single realtor is as bad and offers no benefit from their knowledge and experience to get their customer the best price possible with the least amount of problems of any kind popping up that they can then help solve quickly to their customer's benefit. Hopefully the recent lawsuit will result at least in much more extensive training in some apprenticeship type realtor program so all realtors are much better equipped to be of benefit to their first, and every future client, and a better way to pay for their services can be developed soon.
I think all the law-suites will bring us the EU modele …… were buyers and sellers pay for time …… property is not an asset that makes you money - flipping it
Great show. Thank you. Retired realtor here…I totally agree with you on the agents, not calling back. We’re looking to move to Washington and retire from San Diego California. Washington agents are soooo laid back. They don’t returned calls, some don’t know ANYTHING (!11) about the lot they’re listed/ mind blowing!!
Retiring May 31 2024. Heading to the Villages in Florida. The prior housing frenzy is nothing but an emotional insanity for people thinking they are missing out. Renting June 2024 to June 2025. Will snap up a few places for ourselves and our children to purchase duplexes to start them in real-estate. The cycle will continue and within 7 to 10 to 12 years the kids have positive income paying their rent. Your one of the best I follow as its all sound common sense based on various other factors that you uncover. Airbnb, ghost inventory, major company bankruptcy, commercial realestate loans due, and high interest rates create the perfect storm. Just sit on the sidelines and wait it out. Thanks for all the informative information. You guys Rock!
you better do some research before you move to the Villages many people are getting out and leaving Florida.
Florida. I find it ironic how condo prices suddenly quadrupled, then the surfside mandatory repairs and insurance requirements when interest is at an all time high.
There is a lot of homes for sale in the villages. GL
I enjoy your candor/directness on housing issues. My wife and I are retired living in the panhandle. We don't live on water but are sandwiched between the gulf and bay. We have a 30 year fixed at 2.8%, but like many here in Florida have basically two homeowner insurance with wind coverage thru Citizens. We built a modest home 2020, with high impact glass windows, 22kw generator, to reinforce survivability during a hurricane, one note we are not in a flood plain. We have a good retirement, but Im not content living here when looking at future insurance and tax increases. We have also seen a 20%(+) reduction in home prices, Its a bad time to even think about selling, so we have made the decision to stick it out, carefully moderating our financial situation. What I have learned over the years is that debt is the key to surviva, know the difference between needs and wants.
I had my listing boycotted by an agent in a hi-rise condo because she was not the listing agent and would not show any units unless she was the listing agent not all but most agents I have worked with are greedy
It is so good explanation. I saw and keep my eye on it but it ‘s still not very clear a picture on real estate sector until I watch your video now.
Please continue to educate people in this hard time. Many people is appreciate your show time.
The big storm is coming .
Thank you so much .
I had done that a few times for my clients. I like your show alot. I feel like we share the same value. Thank you
I finally graduated as a an engineer 8 months ago. Together me and my wife, we both make good-decent money, and yet we tried to buy a home last month (November 2023) and we were informed that our income is too low, and the only options we have are 30-40 year old apartments here in Miami-Dade, keep in mind this apartments are not in the city, they are 40 minutes from the city of Miami. I always thought that becoming an engineer would finally open the door for me to buy a townhouse, something small but decent. Seems like I was wrong.
I don’t believe rates will come down and I think housing prices will stay elevated. It sucks but Hyperinflation is coming and unfortunately rates will most likely go up fast. They printed too much money the past few years the fed can’t afford to cut rates. Debt will devalue
I think most of that money has already been spent on stupid things like Taylor swift concert tickets.
I give it a few months before people start hitting the wall
If they stay elevated then they will stay on the market. Unless you are paying cash a lot of people will not qualify at these prices. These prices along with the interest rates are unsustainable. I’m seeing houses on the market longer with price reductions.
@@CraigC-h6b I'am selling my house in a very nice neighborhood soon, there is a lot of cash buyers in this area as it's a active adult community with low HOA fees, 20 year old house but being in N/W Ohio my house as not really went up that much, yes in 20 years it has but just the normal 4-5% a year. It's a problem finding another one but they do come along in my price range.
I hate how the realtors that I have used in the past do not give comps when looking to purchase a home.When you sell your home, they give you comps but when you buy,why don't they give you comps of what you are looking to buy?
I feel like I have to beg. I can use Zillow, realtor, redfin, etc.. But I have no access to the mls. It is so frustrating! And in a non disclosure state, you cannot see what they bought the home for! Agents should be able to get you comps when buying as well, IMO.
Love all the info and really feel like you guys are for COMMON SENSE!
💯 ALL agents should do a home buyer comp analysis for their clients!
The comps are used to get you to bring the price down for a faster (easier) sale.
Wonder why most people don't ask car sales people or other sales people like mortgage brokers or lenders to cut their commissions?
Love this call-in platform! Please do it again😍
Great show! Keep up the good work.
Stay curious.
The banks are not losing money every month off these lower interest bonds. They are making very low interest, which is a positive cash flow.
The issue is that now that interest rates have risen, the bond itself is worth much less. If held to maturity, this is not an issue. However it’s a big issue if the banks need to sell these bonds off to the secondary market in order to refund depositors.
So no they’re not losing money. And an unrealized loss may end up being a none issue or if can end up being an issue so large it puts a bank under.
Thank you for your honesty!
I'm with Melissa on team giant screen haha.
Glad to see things continue to trend down. Some markets are more resilient than others, but they all should fall. I'm biding my time. A lot of sellers in my market are holding out for a hail Mary cash buyer. Those have almost completely dried up though because those folks can't sell their houses in the west coast market to be able to come here with cash.
Home & apartment prices are like charging $9.99 a gallon of gas & $7.25 a loaf of bread or $15.00 for a dozen of eggs!!!!😳😳😳😳
Love that you took a call from that trucker who is working so hard and sharing what's going on there!
Keep talking about what we need to know about buying a house to be our own advocate please
I think it was SO RUDE of Todd to say the 1st caller's realtor don't even know what reality is. Don't matter if the person works for 3 years, 10, 30 years, if they work hard and educate themselves why does it matter. Just because you're old don't mean you know everything. She was right to tell her client (George) not to buy. He don't have what it takes to keep the house. I would tell him the same. Wouldn't want him to loose all his hard earned savings.
I’ve been listening since the beginning. Keep up the great work. This is the BEST episode yet
33:00. Sellers have to be smarter than their agents
What he is talking about with the pricing and the changes is correct. I have seen this time and time again.
The people whose credit is showing paid on time, is showing that because ALL of the credit bureaus aren’t reporting accurately or in a timely manner, one in particular actually has a disclaimer stating that if you upgrade your membership they WILL REPORT YOUR SCORES MORE OFTEN. I think that could or should be ILLEGAL. It’s definitely SHAMEFUL, you guys are AWESOME, keep informing the people. What is your opinions on when the housing prices will decrease ?
Price reduction, but minimal (e.g., $10k price drop in the zip code 20910 in MD where my rental property is located). I still don't see what is considered to be affordable homes. Single family homes go for about $550k to $1.4 million. Your house example goes against what you are saying in your RUclips segment. The price increased 32% in a short time period. I don't see a failing market.
Exactly.
Home prices are still climbing quickly in California.
31:09 yes, sellers are probably upset they have to reduce the price. The sellers are going to be stubborn.
The are also likely upside down. They are STUCK.
Best episode yet!
So many realtors out there who should not be practicing. The upcoming market will filter out a big bunch.
Absolutely 💯
Great show!
Love the idea of allowing your watchers to chime in. I'm an appraiser in Oregon and macro study and would love to join in you discussion another time. Just one piece of feedback, most can't commit 2 1/2 hours to a podcast. Maybe call it 30? Regardless, thanks for what you guys offer to the public, it's a great service.
I listen to it throughout the week while driving to work so I actually appreciate the 2 1/2 hr program.
@@ballroomdancer02Me too! 2.5 hrs is great.
The bigger bandaid will not work to cover all the cracks since the bandaid is not able to make sure the bandaid can support the structure !
I am glad I am semi-retired and on my last leg. I’m planing to die poor and I will not be the richest person in the cemetery.
Awesome podcast!
Good start, long overdue
Todd, compelling format tonight
It is about to get very interesting for sure! Great to see you guys again!
Tip: Never chase the market ESPECIALLY when it’s going down. Appraiser and Realtor since 2002- I saw it with my own eyes. You never want to chase the market especially when it’s going down… you want to set the market or you will lose much more during the chase downward.
@@patgarrett9454I think they mean “chasing the trend”, but late. So like getting into flipping houses now while the market is on a decline would be a bad idea - there’s already too many people doing it and not enough opportunity left, plus with the market in decline it’s extra risky.
Man!!!! I can't believe I missed this! I have a few questions and would've loved to call in
Love 💕 Your Honesty…Sharing from genuine concern for the best interest of the Home Buyer.
banks borrow 7 to 9 times a deposit from the fed window. So when the bank was lending at 3%, that money they lent out was borrowed at .25%. So they are not losing money on the low interest loans. Its when the real estate values go below the amount of the mortgage that the banks get in trouble, as the asset to secure the mortgage is now worth less than the mortgage. when you "mark to market" the bank now shows a loss on their books. Right now prices haven't fallen enough yet. This is the reason the feds are doing all they can to keep the home values up.
I had to pay 26k at closing for my solar panels that had 15 years left. I leased because they had told me if I buy them, they do not service them. So I leased so they can service them. Needless to say servicing them does not include Tesla going up on the roof to clean them!
I have heard mobile solar panels and separate battery are the best way to go. The roofing is problematic.
@@janicenunn8525 interesting. I think it depends where you live with solar. New construction homes in CA require solar so the builder puts it on. Some communities have full solar with 2 batteries at about 60k that gets added the purchase price on all electric communities or you can lease them. It gets expensive at 15k per battery. But in CA, you cannot be off grid all day while the sun is shining. The PG&E or SoCal Edison have you set up to be off grid during peak hours (before 9 am-4pm) and on grid during peak because they don't let you be off grid during the time it's producing and use the battery back up the rest of the day. They want you to keep some for emergencies. But in states that allow you to use solar as long as the sun is shining, then that might work. You never get back what you paid when you sell, like a pool.
But if you buy and live in the house, if you break even after 10 years maybe. I have not seen an HOA that allows panels on the floor but that might work if not in an HOA.
Solar is still pricey if you are not buying you do not get the tax credit and getting someone to assume your lease on non new construction is hard if they have debt and are maxing out their DTI. I wish I was told about it when I leased panels in 2013. I did not know I had to clean them!
There have been no showings and no traffic during my open houses in the last couple of months. Got one interested buyer but not interested in the home with a 29-year tile roof, in Daytona FL
I love your content guy’s. I enjoyed watching from Las Vegas Nevada
I am one of those "ignorant" home sellers who don't believe agents are worth the tens of thousands of dollars they earn for doing the bare minimum. I used one that charged a FLAT FEE and saved thousands. I recommend this route.
I bought a week (yes a week) in an ocean front resort in Florida. Paid 22k put down 2k. I pay $319 per mth. And $1300.00 a yr for maintenance. All because we couldn’t afford to live in Florida. I’m scared because even though the property is new it’s a high rise and now I hear in the news that in 2025 the laws will change and the prices will increase tremendously, I need some advice???
What about commissions based on the profit of the sale vs. final sales price?
To the guy that called in on banks having unrealized loses. This is my understanding on how this works. Say you bought a $1 million 10 year treasury paying 2.5%. Then interest rates on treasuries go up to 5%. The value on your 10 year goes down because to make it competitive with the new 5% treasuries it’s worth less. Normally this isn’t a huge problem for a bank, or anyone else, if held to maturity. The problem is if the bank has to sell. For example if they have a run on deposits. When they sell the loss becomes realized.
Hi ,I'm from uk .what's happening in USA mirror's here in uk .North v South when it comes to wealth. North poor South Rich.massive migration happening now ,the ,older southern people are buying homes in the North as they are cheaper .and frees up money to live comfortable ,the younger generation don't stand a chance .A home is a home should never have been a commodity. No solid foundation to work from ,no wonder things in the world are getting bad .too much pressure on families causes arguments ,unsettling times produces so much damage to our well being .A great pod cast thankyou
The commission is spelled out in the broker contract...it's not negotiable after the fact
I wish prices would level or even come down a bit here in Orange County Kalifornia. Unfortunately, it hasn't even leveled out! It is still increasing at a reduced rate but still increasing!!!
From agents, properties are being sold and went into escrow before it even hit the MLS listings!
Properties are also getting above asking price! One property got an offer of $100K above the seller's asking price! Not sure if there were multiple bids but that was just this past week!
So no, not happening here in SoCal!!!
the first 100 years of USA we had no inflation because we were on the gold standard, all this going on now is not Trump or Biden like most of society thinks, it started with Nixon in 1971 and now this is the end game of the fiat ponzi scheme. I moved from Phila to the Central PA mountain after 2008 because most economists predicted that the money printing would just postpone the great depression we needed in 2008, now its gonna be worse because we pumped it up a lot more
Great explanation...
I was renter for many years.. COVID sunk my ship. All you said was true only thing that saved my ass. My two small houses were paid off. Sold at peak of market. But COVID took my nest egg. And was relying on renter income.. back to the grind Stone...
Could you please add the date of when this was published? Thank you. Good information
Inventory is really low across most of the country, due to people with low rates locked in.
If those rates come down those prices will go up. What has to give is people’s misperception of the value of their homes.
I'm in Mason, WV we have 2 companies building big plants. One is Nocor. With 800 jobs
Great and informative show tonight. I learn so much from you guys. Thank you so much.
I was thinking about the guy with the house that burnt down. I thought about insurance and wondered, who has called their insurance company and increase their coverage due to inflation cost? From what I gathered, he’s $100k short!!
No full replacement value?
This segment is so educational. I am gearing up for this housing correction. I want to buy a house at what I can afford and is not a regret so when the market does it’s up and down it will not affect me cause I plan to live there for a long time.
Everyone that can, should buy a battery pack, small portable refrigerator, and a van. Just pick up 2 jobs and just boycott the entire real estate system for the next year.
my guess is you are talking about rentals as well
I agree. My not be in a Van but an old Buick...but hey i own it
I have a friend who workers for a company that does major electrical work for new home builders in Washington state and he says still getting bonus checks. Last one was 1800 bucks. Doesn't seem like they are slowing down up there just yet.
Reductions and still very light sales volume
Hello there, can you provide some insight how home market is doing for Marietta, Cummings, Woodstock around Atlanta region.
I am in California, I wanna stay here. However it is so damn pricy and the crash here seems to be much slower =/. I'm trying to buy a house in Ventura county, but it is like the 5th most expensive county in CA =/. Would be cool to live in Orange county too though. Laguna beach seems like a nice place to live...... *sigh*. Trying to wait for 2018 pricing, we'll see...... >.>.
Aloha Todd you should check the home's location median income to get an idea of what is the median affordable payment then price the home accordingly....so if the median income is 6000/mo. Then the payments should be about 2000/mo. which means the median price of the home should be about 250,000, assuming 0 down.....this gives a quick rough calculation....what ever the down payment is you can add that to the 250,000....this gives a "thumbnail"....
We will have to see if investors start selling en-mass. If so, we might get the expansion in inventory needed to drop home prices. This could happen if the stock markets continue to look attractive and the Fed holds or raises rates again. Rising stock markets and flat or falling house valuations + high interest rates, could push real estate investors to deploy their money to competing investments. Then we just might see a scenario where home prices fall amid a rising stock market. That would be an ideal time to sell some of those inflated stocks to diversify into real estate if you like.
What it is important is how much were the house prices were reduced ? If 50% of the houses for sale, the prices were reduced by $1, then what's the big deal
What the hell happened to 3%-5% organic home appreciation and modest profits from dealerships instead of ridiculous mark ups as and miscellaneous fees!!!… property management are now asking ridiculous “administrative fees!!”…plus other “fees” on top of other overzealous “fees”’!!!!😳😳😳😳😳😳😳….by the time you pay all the”fees” you want be able to afford to pay moving cost & your emergency fund will be $0!!!!!😳😳😳😁😁
Built in Jun 20 @ $404k...sold Aug 23 @ $675k. Divorce forced sale - sadly I gave up a 2.875% 30 yr fixed rate mortgage! Capital gain took a lot of sting out of the divorce 🤣
I was wondering what you thought of this idea for a buyer agent contract. Agent 2% with an additional 0.10% for every 1% they help me get the house under current list price which I'll pay for outside of the mortgage (Can I do that?).
Home Price(1-discount) (0.02+0.0010*discount)
vs
Home Price(1-discount)*(0.03)
I think my agent would start making more money once they break 10%.
Honestly are they actual price reductions??? What I see is sellers putting their homes on the market for ridiculous prices and then realizing things have changed so they have no other choice but to reduce that asking price. So I wouldn't call that a true price reductions, but more of a back to reality. To me that is not a true price reduction, but a reality check. Houses are still selling in my area but still have a huge issue with not enough inventory. What I see is we are going back to a normal market...price values will not increase at the rate it has, your not going to sell in 24-48 hours, and you will see less bidding wars. Homes will go back to more realistic days on the market. It needed to slow down back to normality it couldn't continue the way it was in 2020-2022. There is still a huge deficit in inventory that is not going away any time soon. I look at some of the prices agents are listing homes for and it's ridiculous and buyers are not going to overpay for a home anymore. Those buyers that overpaid for their homes in the last 2 years where they offered a ridiculous amount over the asking price & paid cash for that difference...of course they are potentially going to see a decrease in the value because they overpaid in the first place. Just my opinion.
Agents have to disclose info from inspections, but they DON'T need to disclose seller motivations!!! You can ask, but they can withhold any of that and should withhold that unless seller allows them to disclose that.
In most desirable areas, prices aren't coming down unless we get way, way more inventory.
In Your example of respresenting an interested buyer, I have been known to pay cash above the listing agreement contract, just like a TIP. As long as I KNOW that I am getting the DEAL that I want. You save me big bucks, and you should get paid for that service. I am not a penny pincher when it comes to "tipping" for excellent service. I don't care whether it is a car salesman, house salesman, contractor or landscaping company. They help me get what I need, and I help them ( local laws are followed). I am discussing business, money. This is NOT a hobby.
Absolutely 💯 AGREE ‼️
I have been warning people about the coming collapse...of the monetary system.
The housing market is just one of the victims of that.
Burlington area Wisconsin is getting many many price reductions in the last few weeks.
Rob Schroeder
You need to look at the amount of loans overall under 4percent. 44percent of homes have no mortgage. The housing market is not collapsing.
2003 was the peak of the market here and bottomed between 2008-2013 with another dip in 2015. 2023 feels like 2003 + 2013. And then 2024 will be like 2014.
Why are real estate agents paid by the price of the house a straight percent? Homes have gone up 25% and some 100% in only 3 years. Why are real estate agents able to capture that money from the sale? They are doing the same job as 3 years ago and in some cases taking 100% raise for themselves. 800,000 home agents split $40,000? Really? They did nothing to add to the value and upkeep of the home over decades.
I would like to buy my first house . do you think is good time to buy now or I have to waiting until next one or two more years?? wait for the interest low a little more??
j'adore ça
The norm with prices correcting. It may be worse next year since the feds can not reduce rates . The damage done by the federal reserve is not repairable. The future is the country of renters!!!
If all the first time buyers, said bugger that I am not buying at that price, the market would have crashed and they would have picked up a house for nothing.
Do they have to disclose in say, Idaho? I was told that was a non disclosure state?
Saw a 600K Price drop on a 3.5 Mil home today, No buyers
Please mention very negative affects on surveyors role in lost transactions
I guess thats why AirBNB's charge such high random type fees.