The Upcoming Housing Market Crash Isn’t What You Think
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- Опубликовано: 25 фев 2024
- The U.S. is entering the GREATEST real estate correction in a lifetime and it's going to be at EPIC levels according to Grant Cardone. The reality is the Real Estate Crash Of 2024 Is Going To Be A Lot Different Than You're Probably Expecting. How will this affect the housing market? In this video, we discuss What You MUST Know About The Upcoming Housing CRASH to help you make sense of the housing market 2024.
⏩2024 Housing Market Forecast - • 2024 Housing Market Fo...
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⏩2024 Housing Market Forecast - ruclips.net/video/bc46POXJNRk/видео.html
✅ - Work Directly With Me And My Team- www.jebsmith.net/referral
🏠 - First Time Home Buyer Course - www.becominghomewise.com
I’m in Ohio and the housing market here over the last 7-8 years is unlike anything I’ve ever seen. Homes that were bought for $130K in 2015 are now being sold for $590k. I’m talking about tiny, disgusting, poorly built 950 square foot shit boxes in quiet mediocre neighbourhoods. Then you’ve got Better, average sized homes in nicer neighbourhoods that were $300K+ 10 years ago selling for $750k+ now. Wild times.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
Bot comment. I've been seeing this same comment for three months.
@@Pamela.jess.245 Give me your educated guess as to when the prices will come down and by how much?
40-50% seems impossible and almost unprecedented... even in 2008 they only dropped 15-18%@@Pamela.jess.245
I report similar inflated prices in Summerville SC and Charleston
My last home went up 50% in the last 3 quarters of 2023 alone. Supply is soaring as wages remain unchanged and with the inflated prices and triple up to 4x pandemic interest rate lows and no one is buying. I’ve never seen housing development expansion as I’ve seen in the past couple years anywhere ever in my life. A solution for many is moving south for more affordability however this is just delaying the inevitable collapse of the middle class equivalent to a bandaid for an arm amputation that is hemorrhaging.
Clickbait title
Gotcha!
Well, it did bring you here
great insight. Thanks!
Glad you enjoyed it!
They are still trying to pass a law for institutional investors not to buy single family homes. This will mitigate another bubble
thanks Jeb, you definitely got my sub
Great!
Me waiting for the crash when houses are selling almost instantly in my area at asking prices. A crash will not happen in FL, numbers don’t add up and people keep moving here from other states.
You're right, the high demand and constant influx of people can indeed support the market
Doesn't help Blackrock and Bezos buy middle class neighborhoods in FL...
You mentioned that you can't see the commercial real estate crash affecting residential real estate. What about the unemployment caused by the crash? In 2008, the residential real estate crash led to significant unemployment, making it even more challenging for regular people to pay their mortgages. Additionally, the FED is working to increase unemployment to decrease inflation. A person without a job would likely struggle to afford their mortgage. I'm confident that unemployment can increase the housing supply, subsequently reducing housing prices.
While it's true that a rise in unemployment could increase housing supply and potentially drive down prices, it's important to remember that today's market is significantly different from 2008's. It's largely driven by a supply-demand imbalance, with demand currently exceeding available supply. Also, lending criteria have become more stringent since 2008, reducing the number of subprime mortgages. The FED does try to balance unemployment and inflation, but their goal is never to create unemployment. Let's also remember that a person out of work could potentially tap into government programs for temporary relief. This is not to downplay the seriousness of unemployment, rather to say that the relationship between it and the housing market is complex.
We are heading into a recession; countries like Japan and Germany are already experiencing one. My point is that unemployment consistently increases housing supply. Whether unemployment is caused by commercial real estate, stock market crash, bank collapse or the FED increasing interest rate doesn't matter - it will increase supply. This is how the economy works: housing supply is low, but it can change not only by building more homes but also through unemployment.
i agree with you, the economy is interconnected once commercial RE crashes, it will cause a flood of other values dropping
@@lucymonita Great comments! Totally agree.
@@JackJacks-pt6lu you nailed it 👍
nice use of visuals.
Hi Jeb thank you for sharing your knowledge. I like your videos.
Hi @elmarespino6906, your kind words are greatly appreciated. I'm glad to hear you enjoy the videos and find them helpful. It's my pleasure to share what I know and help others navigate this tricky real estate space. Your support motivates me to keep producing educational content. Stay tuned for more!
I respectfully disagree on the residential end. Homes cannot keep going up in price ... With rates going up and inventory remaining low, It’s cause for great chaos.. I do think we are headed for a dual-crash. ..I agree 100% on the commercial end! Thank you for the video!!
I don't think they will go up forever but I also don't see a BIG correction coming anytime within the next few years, at least not while inventory is low. You need way more inventory than demand to see a meaningful correction and we aren't there yet. Just my 2 cents.
incorrect, once commercial RE crashes, the bag holders will go insolvent and all the MBS will crash too resulting in crash of residential housing
Might be off topic from the video but are you able to use an fha loan to build a new multi family or does it only work with preexisting properties?
FHA is for existing homes, not for construction
Good advice about controlling your personal finances. This housing market is way too hot for a first time home buyer. We will just keep kicking the can down the road until the time is right.
If supply is up and demand is down, would not that mean that the housing market should be crashing because there is an excess?
Unfortunately, I said it wrong in the video, I should’ve said supply is lower than current demand
@JebSmith ok. I just wanted to make sure! I was like, is there something I missed in my business classes. 🤣
Thank you for the info you give us, but you and other real estate RUclipsrs have been saying this ever since the bubble, and nothing has happened
Do you actually watch the video? You're right, I have been saying that housing IS NOT going to crash and that's exactly what has happened. The crash that will happen IS NOT going to be in residential but rather in the commercial sector.
People who comment like this are as frustrated as I am but it is not your fault Jeb. I am in Riverside and was not able to buy 5 years ago do to an acl reconstruction and a bad real estate agent that told me I could not buy while disabled. Now I make over 120k a year, Wife stays home and 3 kids. Not able to qualify in my own City. Sad times but it is what it is. I will be buying something here and then moving out of State. California is just a business now. GOD Bless you for what you do for us.
Watch the video next time before commenting....
@@ShameenYakubu I'm not only taking about this video 🤡 so stop acting tough over the internet
@@doubled1959 How did I act tough? You're the one talking reckless and being insulting while posting as a cartoon.
Please, dont ever delete this video,!
Why would I,? Let me guess you’re going to come back when the real estate market crashes and and show me I was wrong. I have my same videos posted from 2020 where people told me the same thing, the funny thing is, they never came back.
The funny thing is I think reventure consulting is still talking housing crash since early 2021… I watched his videos in early 2021 and yours as well as everything was essentially a bidding war. I went with your logic to buy and it was a great decision. House appreciated 10 percent and rates at 3% will never get again.
And many people on RUclips were hating on Jeb for not calling a housing crash and kept promoting now is a good time to buy. Not sure where those people are now? Still living in the basement of mom’s house probably? 😂
🤣🤣🤣
I think the massive tech layoffs this year (due to to the AI revolution...we're just seeing the beginning of it) will result in lots of home foreclosures. And until our country can figure out what to do with people now that AI is replacing the jobs, the AI revolution will cause a major disruption in the economy....maybe even a depression.
I have been watching others in RUclips since 2021 and I was the one waiting for a crash to happened but at the middle of 2022, watching your videos, it does make more sense of what your videos are than the crash bros, and now we got a house mid 2023 that we actually afford with 5.78% (instead of 7%) locked rate in CA. I get educated with jeb just by watching his videos. Thank you that I found your videos while watching the cash bros. Rather than waiting for the crash to happened, we saved, paid all debt, bought old cars in cash (reliable civic) then we got a house. Remember not all “one size fits all.”
Hey @gabryelasilang5035, thanks for watching and for your thoughtful comment. I'm thrilled to hear you've found value in the content- that's always my goal. Your strategy of saving, paying off debt and then purchasing a house is a fantastic approach. Cheers to you for landing a great locked rate, and congratulations on your new home! Remember, home ownership is a journey, not just a destination. There's always more to learn, so keep watching. I hope my future videos can continue to provide you with the insights you need. Thanks again for your supportive words!
bro you get to see the reports the housing price is not moving based on supply and demand ... they are playing with the pricing for sure specially from these big companies like "Zillow, realtor so on" they estimating and valuing the houses more than it's actual value and driving the market to go up and up.
YES! Yes! Yes!
Home market will crash unfortunately.
The rise of home prices and people not buying will actually drive the crash. I say about may ish the residential market will in fact drop down. For example the 200k house that was 148k 5 yrs ago will drop to 170k ish. Meaning those who bought @200k will now be 30k ish in the hole.
Now it will go back up in 4 yrs but ppl this happens every 4 to 8 yrs!
Watch it happen!
Hi @thedoorguy817,
I really respect your perspective and your familiarity with the cyclic nature of the housing market. It's indeed true that markets fluctuate and we've certainly seen this in the past. However, a variety of factors, besides pricing and demand, contribute to the health of the market. Interest rates, economic indicators, as well as local and national policies all play a part.
What's important to remember is that real estate, typically, is a long term investment. It generally appreciates over time, even if there are temporary downturns. For those looking to buy or sell, it's crucial to assess your own financial landscape and work with an experienced professional who can guide you based on your needs and goals. Once again, thank you for your insightful comment and for joining the conversation!
What you're saying about a housing market is dangerous. Remember, markets don't crash when you cry they will, they crash when nobody sees it coming. When you have people getting laid off in droves, you will see them either house hacking or moving inland from the coasts...some came back where they came from after covid but corporations are laying off thousands of people and not all of them moved and got low rates or refinanced...you still ended up paying a huge markup on some of these houses....some were sold at double the price for peets sake...So if they get laid off and have kids or whatever else, they will put their houses on the market and this is how you'll have higher inventory. Statistically people live in their homes for 5-10 years max, many moved due to lower prices to places with heather patterns they were not used to, 1 winter in Utah and that cheaper house when you loved your beach time in CA might not cut it. Something is going to happen and it's not just in commercial...commercial has already tanked and the tanking has been lingering because the owners expect insanely high rents....another year or two or a market crash and the market will flip to a renter/buyer's market.
Commercial real estate crash equals less jobs equals having to sell house due to unemployment equals higher supply in the housing market equals prices coming down equals loss of equity plus interest rates are not coming down equals foreclosures equals downward spiral in housing market
There has been a shift in demand from office space to residential due to WFH.
Correct!
Tell me something I don’t know. Very simplistic
The "P" in pterodactyl is silent.
you are rich
Seems to me there has to be pent up supply--people who want to sell, but can't sell because they are locked into low interest loans, and even downgrading would increase their payments. When interest rates go down, we may see a a ton of houses come on to the market all at once. People are still getting divorced, dying, retiring, moving to assisted living, etc. With the age of baby boomers, deaths and retirements should be going up. So where are all the houses that would normally be sold in these situations?
I heard more and more companies are canceling wfh, forcing people to work in office for few days a week at least. And also they do also laying off people now, remote workers are more likely to get laid off 😅
Maybe in the tech industry specifically. Remote work is still big. In my industry none of us go into an office anymore. Remote work is NOT going away.
Hi @zbxck12345,
Thank you for taking the time to not only watch our video but also express your concerns. Current trends in the job market do seem to vary with some companies moving toward hybrid models and others laying off remote workers. These scenarios can be complex and are often dependent on many factors. However, it's during these uncertain times that exploring valuable investments, such as real estate, may provide a sense of economic stability. The beauty of the property market is its resilience and its ability to bounce back and grow over time. In any case, I hope our content helps present some beneficial investment opportunities in the real estate world. Thanks again for your comment!
2024 is looking to be like 2023, flat.
Of course if rates drop this year, that could all change, but right now, the low supply with current demand is preventing any crash and keeping things pretty flat.
Thank you for sharing your insights. It's true, the current real estate market dynamics with slight supply and steady demand seems to be keeping the markets stable
Indian market will also crash ?
yes
This video will not age well. You are compartmentalizing things to fit your narrative. There are companies that own the retail sector that also owns a portion of residential including banks. In a financial pinch or margin call they could dump it all to cover their position.
I heard that back in 2020 when I was told the market was crashing and again in 2021, 2022 and 2023. 🤷🏻♂️
It's all talk, housing remains overpriced
Some people waited for it to get more expensive
Yes, it's expensive but as long as demand is there, you're not likely to see any meaningful change.
Not happening in cali
You're correct about housing as that's likely the case for all the US but commercial is going to be a problem in both CA and other parts of the country.
If your house stays at the same value and inflation continues on.... guess what happened to the value of your houses purchasing power.
So good time to buy, house prices are down.
For most home owners who expect to stay in their homes forever and not use it as a piggy bank, this drop could save me up to 500 dollars in property tax. Bring it on
Got people triggered in the comments 🤣
😂
Oh wow this guy is a genius How could we ever get this info anywhere. He basically states to us the obvious that commercial properties are crashing…in which we knew since 2020. Secondly, he states that we will never be able to afford these million dollar commercial properties and thirdly, His baseline conclusion is save money to fix your credit score so you can be ready to buy if possibly an opportunity comes up for residential real estate which he then states he thinks it’s not going to crash anytime soon! Man thanks so much! This was so….not insightful 😊
Thanks for watching the video and helping the algorithm. I appreciate it.
@@JebSmith you’re welcome! Hope you go far with that cause it won’t happen again!
Thanks for calling out the media for their sensational headlines. Yours are way more…. Oh wait.
It's not about the headline but about the context and the details
False information
We need to start a new passive income opportunity. We can start charging a 50 percent protection fee to all people who own rentals and other investment properties. You operate in my neighborhood and increase the cost of living. You pay.
Grand cardone!!! Block!!!
false info
This guy has been saying this for awhile lol
saying what? Housing is strong and that it's not going to crash. Correct, I have been saying that and continue to say it. You have to understand the data
Jeb Smith was right. If people listened to him earlier instead of other RUclipsrs who have been saying there was going to be a crash, they’d be in a home paying less than rent.
Jeb Smith didn’t make as much money as the other RUclipsrs who have been preaching the crash. These other RUclipsrs have quit their day jobs, work from home, take business trips while encouraging others to wait. Meanwhile, they have property and many of their viewers are still/stuck renting. Many viewers on those channels are hoping that someone else loses their jobs or divorce so they can buy a home thinking they are going to get it cheaply.
I think covid may have permanently created an ultra high demand in owning a house . Only time will tell if this reverts, but my feeling is that people are getting tired of renting and want to own property.
It's definitely plausible that the events of the past few years have encouraged more people to seek out homeownership. This could indeed be a result of the growing desire for stability and control over one's living situation, especially in uncertain times. We'll certainly have to see how this trend evolves over time. Thanks for watching the video and contributing to this discussion!
If only Grant Cardone was a credible person. Easy to buy real estate when you take other peoples money to do it.
😐😐
Give it up. 😂😂😂
Did you watch the video or just make a comment?
Lay off the zoom, dude- if you've got something worth hearing, I'm listening. If not- DON'T YANK MY CHAIN.
I'll definitely take this into consideration for future videos to make your viewing experience better. I appreciate your time and input. Thanks again!
Why does anyone listen to Grant Cardone is beyond me. The guy scams people for a living. You have far more knowledge
😮😮
Theories and opinions and jibber jabber 😂. Unsubscribe deserved
We heard this in 20,21,22,23...
S🥱me😴ne wake me when the big "crash" happens🛌
sounds like you didn’t watch the video…………….