"Housing Hurricane Coming" - 8% Interest Rates Threaten To COLLAPSE U.S. Housing Market
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- Опубликовано: 2 май 2024
- Perhaps now isn't the most opportune moment to purchase a house in America. Patrick and Tom delve into the real estate market, offering their insights on when the optimal time to buy a home might be.
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Patrick Bet-David is the founder and CEO of Valuetainment Media. He is the author of the #1 Wall Street Journal Bestseller “Your Next Five Moves” (Simon & Schuster) and a father of 2 boys and 2 girls. He currently resides in Ft. Lauderdale, Florida.
Keep in mind that during the 80’s people were encouraged to save due to the interest rates. Right now there’s very little incentive to save because those who are saving are watching those who are reckless taking it in. I’ve been trying to save for a home and it’s been discouraging to watch prices continue to not budge because there’s people willing to get into a mortgage where they’re paying 40% of their income. It’s insane.
The housing market in 2024 poses difficulties due to uncertainties about the Federal Reserve's ability to curb inflation and reduce borrowing costs without adversely affecting demand for assets like homes and automobiles.
Consider shifting from real estate to stocks during severe recessions. While market volatility presents short-term trading opportunities, it's crucial to approach with caution. This isn't financial advice, but investing during such times may be a strategic move, consider adopting the services of a financial expert.
In fact, I had no prior experience or understanding when I began investing in 2020, but by the end of 2023, I had made a profit of almost $850k. All I had been doing was going by what my financial advisor had told me. This demonstrates that all you truly need is a professional to assist you; you don't even need to be a great investor or put in a lot of work.
@@ThomasChai05who is your advisor please, if you don't mind me asking?
"Gertrude Margaret Quinto" is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment
In the USA, individuals living in cars due to partial homelessness result from a complex interplay of factors. High housing costs relative to income, stagnant wages, and income inequality drive this issue. Job loss, weak social support, medical expenses, evictions, and lack of affordable housing also contribute, while systemic problems and inadequate policies further perpetuate the phenomenon.
Considering the present situation, diversifying by shifting investments from real estate to financial markets or gold is recommended, despite potential future home price drops. Given prevailing mortgage rates and economic uncertainty, this move is prudent, particularly due to stricter mortgage regulations. Seeking advice from a knowledgeable independent financial advisor is advisable for those seeking guidance.
I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over 2.8million.
I appreciate the implementation of ideas and strategies that result to unmeasurable progress. Being heavily liquid, I'd rather not reinvent the wheel, thus the search for a reputable advisor, mind sharing info of this person guiding you please?
Finding financial advisors like Marisa Breton Dollard who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Marisa has the appearance of being a great authority in her profession. I looked her up online and found her website, which I reviewed and went through to learn more about her credentials, academic background, and employment. She has a fiduciary duty to protect my best interests. I sent her an email outlining my objectives and also booked a session with her; thanks for sharing.
Mortgage rates are currently at an all time high since 2000(23 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market
The stock market is no different, to maintain profit you need to have some in-depth knowledge on the market. I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.
In my opinion, it was much easier investing back in the 80s but it’s a lot trickier now, those making consistent profit in these times are professionals reason I’ve been using an advisor for the past 5 years to consistently build my portfolio in preparations for retirement.
My partner’s been considering going the same route, could you share more info please on the advisor that guides you
Amber Dawn Brummit is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
She appears to be a true authority in her profession with over two decades of experience. I looked her up on the internet and skimmed through her site, very professional. already sent her an inquiry hoping for a response soon.
I’m a new dad, I moved to the Bay Area a few years ago and I’m thinking of purchasing a single family home, but with real estate prices currently through the roof, is it still a good idea to buy a home or should I invest in stocks for now and just wait for a housing market correction? I heard Nvidia and AMD are strong buys.
it’s a personal decision, but according to Forbes, housing activities will remain stagnant for the most part of the year, so maybe hold off a little.
well you could put a downpayment on a home and as well diversify as much as you can into Ai and pharm. stocks like Pfizer and JnJ.
Certain Ai companies are rumoured to be overvalued and might cause a market correction, I’d suggest you go with a managed portfolio, but even those don’t perform so well, so it’s best you reach out to a proper fiduciary to guide you, that’s what works for my spouse and I.
@@MarkGrimm8 this is all new to me, where do I find a fiduciary, can you recommend any?
My CFA ’’Carol Vivian Constable’’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
I foresee a recession lasting 2-3 years, and if inflation continues to surge, the Federal Reserve will likely raise interest rates soon. Inflation is causing various issues worldwide, such as food shortages, scarcities of diesel and heating fuel, and significant spikes in housing prices, leading to a potential financial market crash. This global downturn could have long-lasting repercussions. Given the current inflation rate of approximately 9%, my main worry is how to optimize my savings and retirement fund, which has remained stagnant at around $300,000, yielding almost no gains for quite some time.
Numerous opportunities exist to achieve substantial profits at present, but executing high-volume and nearly flawless trades requires the expertise of real-time professionals with an ISDA Agreement. This agreement allows investors to participate in sophisticated trades, exclusive to seasoned individuals, and unavailable to amateurs. Attempting to be a high-stakes trader without an ISDA is akin to trying to win the Indy 500 riding a llama.
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850K.
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? I'm in dire need of proper portfolio allocation.
Linda Aretha Reeves is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII. Thanks for sharing
Some states are starting to do the right thing and pass laws to ban investment firms from buying houses
Which states?
Need to ban foreign business companies from buying houses and land as well.
What states? I doubt that happens in the U.S. in our lifetime
Red states
@@greenthumb8170 red states? Conservatives are true capitalists so they would be in favor of no restrictions…what are you talking about?
I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?
"Overall, buyers hold a lot of the cards right now, and sellers are having to give out more concessions to close a deal." All the best, buying on sale is actually one of the best ways to invest in stocks, and advisors are ideally suited for such task
Until the Fed clamps down even further I think we're going to see hysteria due to rampant inflation. If you are in cross roads or need sincere advise on the best moves to take now with financial markets will be best you seek a fin-professional with fiduciary responsibilities who knows about mortgage-backed securities for proper guidance.
this sounds considerable! think you know any advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Melissa Terri Swayne” for about five aiyears now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing.
Average working people can't afford homes.
Nope. And if you add in healthcare and food costs really makes it really difficult.
I have been an average worker and we have 3 homes...we SAVE money not spend on frivolous BS like most Americans
@@billiamc1969 STFU and show some respect 🤡
The news says that even though everyone is starving and near homeless....we are just so happy with the current President. Thank God for Joe Biden, I love being poor.
@billiamc1969 bro, buying delapidated trailers in the middle of nowhere doesn't count
Buying a house right now is a 100% scam.
Many of my clients just say screw it and look at creative options. Buy land with a manufactured home for a fraction of the price. The over-regulation and limit on housing have made these prices insane.
Absolutely, although some areas haven't experience the bubble so buyers should review price history. NYC is definitely a scam. Looks like LA, Chicago and other big cities are also bubble prices..
LMAO...what a stupid thing to say
@@billiamc1969Lmao. What a stupid response.
He's right. Biggest scam I've ever seen. @@billiamc1969
We need to stop allowing non-citizens to purchase real estate. That is such an insane thing that who the fuck knows why it's been allowed to go on for so long. Just absolutely ridiculous that people from all around the globe can own property here but yet it's practically impossible for my generation to own a home.
This is a HUGE problem in Maine.
Try owning a house in Mexico or by that matter China as a US Citizen you don’t own the land but mostly leased why doesn’t the US have this is beyond stupid. We can have all the physical borders in the universe but with allowing of anyone to buy do we really have any sovereignty?
That is not the problem. This is yet another effect of the BIDENOMICS and complete over inflated prices of the LIErus with the exodus of the North to the South. I live in S.C. where the over development is now going to crash. NO ONE...NO working SLUGS can't afford to live there with nowhere to find a place to live because RENTS are insane.
They buy as foreign nationals and not all are nefarious. Most live here with good jobs. Americans can buy in Mexico and many places no problem. Most Hawaiian lands can't be bought unless you buy them under a 99 year lease. Americans here we've gotten too lazy. There's probably more naturalized citizens in resident legal resident aliens owning property then naturally born
@@planerep How have Americans been lazy?
You’re forgetting that Corporations have been buying up the inventory. They don’t care what the interest rates are.
Bank failures big bro 😂😂
This is actually a big misconception (I work for these companies). Interest rates DO affect them as very few companies are just sitting on cash. Interest has drastically slowed their growth and made them change strategies (going into new markets, buying homes that aren’t so run down, etc). Don’t get me wrong, we should be getting them out of the housing industry all together, but they aren’t quite the boogie man they’re portrayed as.
Not only do “corporations” (literally any person who’s bothered to set up an LLC for their investments) own about 2% of single family homes, but corporations don’t buy homes in cash, they leverage debt to make purchases and the interest rates affect them very much. If you have 500k on hand, for instance, you could buy 5 houses leveraged with 20%-down investor mortgages, or 1 house outright. What’s the smarter move as a corporation?
@@Cattlynt supply and demand though, as they (corporations) purchase more inventory, they gain more leverage and thus can effect the purchase/acquisition of new homes to potential home buyers and average consumers... I.e. inflate the market with overvalued and overpriced vacant assets (homes). With interest rates being so high, it slows the purchase of homes by consumers and therefore could hedge banks to lower rates - in hopes incentivizing more new home purchases to resist and prevent potential stagflation.
my first mortgage rate was 10.5 percent, but the 1700 sq ft. house cost me 63,000. Artificially low rates for two decades are responsible for these home prices. It will be painful, but if there is not a drop in housing prices, they are unaffordable for the middle class. That is not a good thing for future social issues. Higher interest rates, encourage savings and discourage debt. America has been on a debt binge. Government spending needs to stop, and entire agencies eliminated, and debt paid down. We all know this won't happen, so the collapse in near.
Indeed. The podcast talks as if the currently low to normal rates are the problem. But little attention is paid to the historically high prices relative to incomes. Just to get into the door, the buyer has to assume a historically large amount of mortgage debt. That’s well before the prospects of paying high property taxes, insurance costs, and maintenance costs are taken into consideration.
Classic empire collapse recipe. Grow too large to maintain yourself, inflate your currency, cracks start showing, everything then crumbles. It happens very fast. As you said, we know they aren't going to cut funding to ANYTHING. It's self preservation (Government employees preserving themselves) and it's going to destroy this country.
Prices started going up in a bad way when we turned homes to profit. Homes should be homes. Homes should be for PROFIT. That is what people are doing. FIX a house and sell it for a crazy amount to get their money back and then some. This may sound horrible but homes should be kept to the government. Let them regulate it so people can afford them.
Vote for Kennedy!
Same here, more towards 12% for me. The low interest rates caused home prices to sky rocket. The low interest rates are not normal people.
I’m a new dad, I moved from Tampa to Santa Clara a few years ago and I’m thinking of purchasing a single family home there, but with real estate prices currently through the roof, is it still a good idea to buy a home or should I invest in stocks for now and just wait for a housing market correction? Looks like NVDA, TSM and AMD are still strong buys.
it’s a personal decision, but according to Forbes, housing activities will remain stagnant for the most part of the year, so maybe hold off a little.
well you could put a downpayment on a home and as well diversify as much as you can into Ai and big pharm. stocks like Pfizer and JnJ.
Certain Ai companies are rumoured to be overvalued and might cause a market correction, I’d suggest you go with a managed portfolio, but even those don’t perform so well, so it’s best you reach out to a proper fiduciary to guide you, that’s what works for my spouse and I making a whooping $738k in Q4 last year.
hey simone, I'm an art collector, this is not very new to me but has a nuance to it. Can you assist me? how do I find a fduciary
monica mary strigle, you'll be in luck at this time of year to have a conversation. lady is hot topic in downtown manhattan and you must not be and accredited investor. Just browse.
Blackrock outbids every buyer with cash offers. No way the average buyer can compete.
AS SOON as the house we bought listed, I emailed the agent, said DONT SELL THAT HOUSE! She called me back and said CALL ME! So I did, did a contract over the phone, we gave them their asking price, no time to haggle as properties were flying off the shelf, she presented the contract to her sellers, they accepted, they gave their tenants a 30 day notice to move ALL within 4 hours.
Exactly. That's the competition!! Vanguard is doing this as well. It's causing house scarcity and driving prices.
I get constant phone calls and mailings from companies looking to buy my home. I tell them to screw themselves over the phone. I bought my home in 2016. No way I'm selling it
RFK 2024. The only guy speaking about this
I got my house in August. It's possible.
I laughed when I took out a mortgage and they asked if I wanted a fixed rate or a lower variable apr. Im like, who would opt for a variable rate? They said, oh a lot of people, since the rates never really change... It was 3% back then. I think if you assume the worst can happen, you tend to make smarter decisions and take more defensive positions.
lol I’m right there with you. It’s honestly wild like no one is going to look at history? Like interest rates have been that low how long?
Taking a variable rate at 3% is just greed. The money is essentially already free
The many people who have little understanding of how interest, compound interest, and basic math works in the real world. The people who just base their decision on the recommendation of realty and banking "professionals". Especially people that are burnt out from life, they are more willing to blindly trust. You're right, based to plan for the worst.
I told my family to refinance their ARM 2 years ago due to incoming inflation, and they laughed at me. They told me they hadn't seen anything on the news and called me crazy.
You either buy the house you want at a higher rate or you bid against others for the house you want when the rates get lower. Its a double-edged sword.
Unless it’s like 08 when there were plenty of homes and no buyers.
Rent is waaaaaaaaaay cheaper. Buying right now is very dumb. It's so overpriced
At least with going now with the higher rate you can hypothetically refinance when rates go down. However, I think we're all starting to realize rates are not going down. As WEF says, you'll own nothing and be happy.
@@Bibleguy89-uu3nr rates aren’t going down because there’s not enough savings in the system for rates to be lower without also causing inflation.
Interest rates AND higher prices make it unaffordable for most Americans to purchase. Renting isnt any more affordable either. Where I live, a 1 bedroom apartment is $1200/month. 5 years ago it was $700/month
Lol I wish I could find a decent 1 bedroom for $1200. In Orlando you’re looking at about $1600
thats cheap as hell.
I live in Northern California, and a one bedroom here can range anywhere from $2000-$2500 a month. Insanity.
@@dontaejohnson3621try southern California at $2000 minimum for a 1 bed
In canada where I live 1 bedrooms are going for over 2k monthly.
There’s no more home ownership for the upcoming generations, get over it. Don’t even think of retiring, just work, eat, sleep, repeat until death.
We are just production robots. Work, eat, sleep, repeat.
👍👍👍👏👏👏👏
Ukraine gets to benefit from
You're all losers
Move to somewhere you can afford.
That makes no sense.....people don't live forever. They are passed on to the next generation.
This housing market needs to pull back...200% - 300% increase in 4 years was insane... thankmyounfake 0% rates and fed printing so much money in 2020...destroyed our economy
I agree. I can’t believe these guys are only saying “when are these rates going to come down do people can buy homes???”, and don’t mention need for price correction (at least in this clip, but I feel like few pundits take this perspective) Alas, the economy is leveraged against the real estate market (see 2008) so it’s almost taboo for hustle bros in suits.
I just can’t listen to Adam. He adds nothing and he has the most hard to listen to voice since Ben shapiro
He's loving these protests too. He's victimhood self righteous boner is off the charts right now but yet he tries to act like he isn't an israel first american 2nd
Yep!
I have to skip over him.
It’s the most annoying voice
It’s the same voice.
Home prices have to drop….. that is the problem. Interest rates have to be where they are, if not higher to correct things.
Exactly. Prices in general all over the price need to come down.
Home prices do not have to come down
They will absolutely come down. I see large price reductions daily in my area. Still too high to buy though. @@ebutuoy5088
Yes , they need to. It's all speculative market by big corporations, wall street and wealthy foreigners allowed to buy in order to get residence in the US. Interest rates will need to be higher in order to correct and cool down the uncontrollable greed of some. Then the citizens will need to gather and find mechanism to avoid this mess happening again. We do not need government interfering on this issues again since they serve their own interrst not its citizens. Prices are ridiculously above the common sense.
Home prices dropped a tiny bit in 2008, the entire financial system almost collapsed. The system is leverage built on top of leverage, they can't let prices fall. They'll do everything possible including hyperinflation to prevent that.
Great, more rich Chinese and corporations will buy more and more with all their cash.
Any foreign RE ownership should be banned.
You mean with your cash
Absolutely! We have the same problem in Australia.
There’s “never” going to be a good time. I was told to wait 3 years ago. Here I am, still screwed. I want a home. Tired of waiting.
Same here. Ppl kept telling us to wait and now we’re screwed.
Go buy a home. These types of videos will be right at some point in time but all they've done is scare people into not doing anything and those people are not behind.
When Adam talks diharrea comes out!!!
I skip forward when Adam starts talking.
@@Beez27 Me too!
Agreed Vinny and Adam gotta go
You don't need rates to drop, you need home prices to drop,higher for longer with rates dropping prices will increase and we will definitely be in a bubble
Already in a bubble
Exactly, these are normal rates. It the sellers and builders who are making the money.
We're not in a bubble and home prices will not drop. These are the new prices.
someone finally has common sense!
💯
These guys are awesome...but its this easy. 10 Trillion in treasuries need to be auctioned this year and every year going into 2030. 1 trillion is added to national debt every 100 days. BRICS nations are dealing in their own currencies. The only way to sell that much Treasuries is offer a higher ROI/yield. That comes in the form of a higher interest rate. Feds are not cutting. Supply & Demand.
BRICS has its own issues. They don’t all agree with each other. A few are even at each others throats for war. And none of those countries do you own nor have the right to your money. The law and order of the US is beneficial when holding a USD.
Most people that own a home in Southern California, cannot afford and/or qualify to re-purchase the home they currently own at today's terms (prices & mortgage rates).
It's like that in Tennessee too. I couldn't afford the house I've been in for 14 years if I had to buy it today
true true
Thats a good thing if you currently own…
Which is why they will stay and pass the home to their kids. Leading to less homes being available for sale, keeping prices high.
I live in central CA and starter homes are going for over $400K. My husband and I were looking to buy a home this summer as first time home owners but we were looking at monthly payments over $3K. We both have credit scores over 750. That monthly payment really discouraged us. It feels tough right now
Why are they not talking about home insurance? Several insurance companies have pulled out Florida and California. The premiums for home insurance is going through the roof as well.
Those premiums aren't coming down. It's the new normal.
Yes!!!!!! It’s robbery !!!!!!
Cause your neighbors keep filing claims for bullshit stuff
@@mark6000 like what? I don't own a home. Are people scamming???
Not just homes either… I pay almost $400/month for car insurance and I have never had a ticket and had a fender bender nearly 5 years ago! Granted, I drive a nice car and live in the city but still it’s ridiculous!
This is a good thing. House prices are in a bubble to prop up the economy. Houses that went for $180K in 2000 in Queens NY now go for $1M. This isn't a crash, it's a correction..
I didn’t want to leave Queens but had to bc of the prices of homes. Bought in Suffolk county, Smh not happy either.
Yeah it's gonna correct itself when everything crashes. A facade can only last so long
Everything crashing won't be a good thing and nobody fixed the problems from 2008. A band-aid was put on a gunshot wound and it's too far gone.
It is not interest rates. It is housing prices interest rates are only going back to historic norms.
Agreed
but prices aren't going down.
@@jc7887But they will thats the point. Inevitably they will. If not, the market will have some serious changes.
💯
@@owenson7969 not necessarily, we will end up like the Chinese. More family living in houses to cover the costs. It’s already happening with the two income households. Now people are buying houses to rent out individual bedrooms. 5 renters in a house will become a norm.
Our median home price just went above $600K. I, along with many others, will never be a home owner. Especially with these prices and interest rates.
At this rate, we'll need 3d printed homes sooner than later. They started selling them in TX, also Elon's and such type homes are gonna be the way to go unless they ease up on the hurtles for building homes.
It does not cost $600k to build an average 3-2-2 house. More like $150k. The rest is a scam. Build your own house. I did it years ago for about $80k.
@@eugenefirebird8938build your own house for 80k? Where do you buy the land? Anywhere people want to live the land is super expensive
The government forced this so they had collateral to borrow more money against our homes. It's all a racket
@@kahledalbert1210the lumber alone is more than 80k right now lol he tripping unless he building a shack with a kitchen lol
Literally have no idea why Adam is on this. I like listening to Tom and vinny is funny.
Adam and Vinny are super annoying 💯
I’m old enough to remember when 7% was a great rate. The nonsense artificially low rates were fantasy. They should have never been that low in a free market bond/interest rate environment. The Fed did all they could to get the fed funds rate at literally ZERO. the pain is coming.
Politicians paying games with the prime rate. The Fed Chairman works for the President. Never ever should the prime rate be below the Inflation rate. You never put the wagon before the horses.🤔
Boomer
Yeah, Mr. Boomer. But average house price back then was 50k not 400k
Yeah Mr. Zoomer. But it is near zero rate for 20 years that has allowed house prices to go to $400k. High rates will drive prices back down eventually. It's always better to have a low price than a low rate. @@Eli-9
Is it true that foreign nations have subsidiary companies buying up houses in residential neighborhoods?
Great information
My interest rate is doable but insurance cost will cause me to lose my home. Going up hundreds a year for three years. No can do.
california, florida are opposite ends of the political spectrum but lead the way together in massive increases to homeowners insurance and nobody seems to have the answers. I agree as a present homeowner that is concerns me more than any other factor in terms of potential house price correction.
@@ssaun2179 Agreed. I'm here in Florida and my insurance went up over 1k in one year. That is fucking stupid. DESANTOS has done nothing to help his CITIZENS on this. He is more worried about woke BULLSHIT then what actually hurts his citizens.
Try being in Florida it went up thousands. My mortgage doubled because of it. Sickening
@@user-je8fz3oh3k desantis helped insurance companies by not making them liable for lawyer fees if you have to sue them. Desantis is a back stabber pos. I'll never vote for him again
I’m in Michigan and we diffidently have it better then others but our Tax’s alone went up an additional $500 a month. I wonder what it will be next year!!!
I work in residential building in Oklahoma. The only movement we are seeing is cash rich buyers from bigger cities. Everything else, especially the starter homes, are not moving.
Boomers aren’t selling & downsizing because their kids are having to move back in
Part of the problem is that Boomers are leaving states like NY. NJ. CA, MD and so on because those states offer nothing for retirees on a fixed income. They're overflowing states that used to be cheaper like NC, GA, FL and AZ. That is another thing throwing off the market.
What I wanna know is when these old people die, they own 1-2 properties, who will fill them? Their millennial kids? Gen Z is smaller than millennials. I think in 10-15 years we’re going to have an oversupply
I like how rfk wants to make it so 1st time home buyers get 3% intrest rate. That would help me an alot of people I know be able to buy there 1st home if it's was 3% rates we could afford a 300k some house
lol who would offer that rate? You’re going to force banks to do it and make them lose money?
PBD is generally wrong about the real estate market.
Home values have never been higher and inventory has never been lower. Will take a flood of inventory or a drop in demand, which isn’t happening, to majorly move the needle
8% is getting up there but the biggest factor is obviously price....let's see how that changes over the next 12 months. Who will win...your state property assessor (more taxes) or will the market move down so people can actually afford a home.
Can we get rid of the property assessor? How do they know the value of my parent's home when there are thousands and thousands of homes?
Such an important topic to discuss!
Lay off the blow Adam!
Lmao no shit
Lol
My mortgage in 1998 was 8% for a $120k house. My income was 1/3 of the price of my house. When I sold it for $305k last year my income was 1/3 of the price of my house. I still think it would be harder to buy a house now because everything else is so expensive
Inlfation just happens normally but what is going on right now is fucking stupid. Corporate greed is destoring the AMREICAN DREAM.
It's not even close, people are full of s@@@ when they try to act like buying was the same or even harder in the 80s and 90s. That is just a lie, they have changed so many things and the government/corporations don't want people to own things.
I’m in the construction field. Do your research it’s the big builders driving the prices up. Their biggest profit margin is on the land. They make a 50 percent margin on the land
Has anyone noticed how GenX is skipped over in many conversations? We are 1965-1980, Heavy metal, southern Rock, disco. Hippies, Vietnam news, civil rights memories, cigarettes, keggers, bongs, waterbeds, no adult supervision, The dukes of hazard, we ROCK. the coolest yet. Rock on.
We hate to be told what to do.
Historically, the interest cost was 7 percent to borrow money. No one talks about the savers getting 5 percent on their their money.
There's a lot of foreign money and investors buying up the homes. Many regular people have been out of the market.
Love you all!!! You’re my favorite podcast!!!!
Thanks Adam for restating some somewhat relevant data then going back to the shadows.
4:40-4:43 “*that’s how much they be charging*”
Classic IQ-Adam
wth has a 20% down payment on a $300,000 house? tha'ts 60k. People aint got $600 for an emergency, man. they dont have 1% of what they need to buy a house in such areas. and never will, either, given the horrific burden of inflation, taxes and regulations we face.
You don't need to put down 20%.
@@internetpointsbank lmao. Yeah ok. You sound like you're stuck in 2006
@@gridtac2911I’m putting down 5% on a 400k house here in Texas. Just 30 mins outside a large city. New build
@@Vertexp you missed what I was saying. Sure you can put that much down, but the same shit happened pre financial crisis with people putting little to no down, and banks giving bad loans. All I'm saying is people should really start understanding that ain't sustainable.
It's not sustainable just on demographics and wage data alone. If prices keep going up America is done for. Consumers can't afford it, and that's what our economy is based on consumerism. I know a few people that are desperately trying to sell their 400k+ homes in the Midwest and can't find buyers. There aren't enough high wage earners and lots of those jobs were cut this past year and beginning of this year. RV industry is drying up and I see a supplier selling or closing businesses they bought the past few years to stay afloat. Same will happen in Auto industry it will tank. The music will slowly stop this time around
Thank you
My wife bought her house in 2001 for $110,000. Single story 1100 sqft ranch on a 1/3 acre. We just accepted an offer for $250k (As Is) within hours. I’m happy to take the new value, but these type of homes should be about $180k in northern Indiana.
My wife and I couldnt rebuy our house that went from 200k to 400k in a few years at a 3% interest rate. Houses are not actually worth double from where they were 5 years ago. Its simply a supply problem which will ne fixed by 2026 and thus values will fall. Im sure our house even will fall somewhere back to 250k-300k, and we want to move up, but there is no way even with 200k equity we can upgrade right now without having to pay almost 700k-800k with an 8% rate. Also we make 180k plus a year and it still doesnt make sense. Were locked in until forced selling and inventory occur
My husband and I are in the same boat. Want to upgrade but can’t even with all our equity on our little home. I can’t justify $800k for a single family home
Well, in the 90's my husband and I bought our first home with near 11% interest. We eventually were able to refinance down to 7% after several years and then proceeded to pay it off early over 15 instead of 30 years by working multiple jobs.
@@njerseydavid no, I know they are. The Biden economy is hell, but I want my kids to not give up no matter how hard.
Why is everyone forgetting about Gen X?! We're the ones stuck in the middle of the two worst generations of all time
They're just jealous of us!
Gen X is not stuck between millenials and Gen Z
You raised gen z and influenced millennials. Boomers messed everything at least you guys enjoyed good times.
If I was born 4 years earlier I could have bought a 80 k house n sold for 200k lol god damnit why wasn’t I ready to buy a house at 19
@@thehonesttruth8808 Ha! Good one
Somewhere in the universe/dimenstion George Carlin is happily whistling as it all comes burning down.
And bill hicks
Please remove Adam. He belongs on a podcast like Fresh & Fit and the stereotypical Miami wannabe Andrew Tate. It’s hard to take him seriously.
Dont offend Fresh & Fit and Tate like that bro, theyre levels above Adam
@@jonizajmi9992 Good Point 🤣
Why? He has good perspectives
Vinny and Adam are extremely annoying. They belong in a sound proof room by themselves 😂😂😂😂
Having both interest rates AND home prices in a rapid rise at the same time is simply not sustainable which has occurred over the last two years. Both are at their relative peaks in my opinion. At some point, something has to break this trend. Lack of affordability leads to less demand. Less demand leads to more supply. More supply leads to lower prices. It will take time but a price crash is coming regardless of where the interest rates are.
@@njerseydavid If you look at Texas and Florida over the last couple of months, you can see supply has increased dramatically and prices are in fact coming down. We shall see what happens over the next few years.
The ones in my area in Florida that I’ve noticed that are all for sale now are the fixer uppers. It’s all junk coming to the market because the owners are capitalizing on the market. But for a complete turn key home, I believe I’m seeing the prices continue to rise. At least the starter home market that is.
Content I will watch on this channel
People have been living in a fools paradise with artificially low interest rates for too long ,these are the normal rates
When are you talking about? Obama era? 🤥
You're leaving things out, a house in my old neighborhood that was 101k in the 90s is about 430k now. I'm just using that as an example, pay hasn't kept up with that kind of increase in living and we never recovered from 2008. We just put a band-aid on it.
I love PBD, but two of his sidekicks are idiots. The only decent one is Tom.
Tom is why I watch this podcast.
Aren't you, Tom....😂😂😂
I looked a the Fred Data ... yeah Florida is ticking up, but in NJ, NJ, CT, PA inventory is still going down
My market is very short on homes, rentals too.
Mortgage rates need to be at 12% right now to drive house prices back to affordable levels of 2x to 3x annual income (that's down 50% plus), and to break the greedy speculators and drive them out of the housing market once and for all. Yes they need to lose a lot of money to fix this mess.
My 2.8% interest rate looking pretty right now 👀
No interest rate is looking good
@@bb-1359 No home was bought with no interset rate.
@@user-je8fz3oh3k If it’s paid off
@@user-je8fz3oh3kEvery home bought with a cash offer is. Not sure where you're getting your false information from.
Yessir! 😂
It’s also Summertime, and snow-birds with second homes in FL, are most likely pulling out of that market.
If you buy something you can afford and pay down aggressively the interest rate only impacts your purchase price and timing. This discussion is why you behave that way.
Love your podcast, however is there a software Nvidia can invent so I can skip when Adam speaks? Horrible. Great job though PBD and rest of the team
As a Florida resident in the Tampa area where the fk are these price slashes on homes? I see small drops but that’s it. It’s going to require 50%+ drop in value and it’ll take 1-2 more years before we see significant change.
Exactly!
The problem is that many Americans will be broke with how things are going, and corporations will buy even more properties when it crashes.
I don’t think people will sell their homes either tho for what get a loan at 8 percent when they are paying 2-3 percent interest rate doesn’t make sense
HBD Vinny
I just got locked in at 6.99% before the rates went up. Not only that, I'm paying 20k under listing price and negotiated the seller to pay my closing costs. Yes, the house was still a lot of money but I feel comfortable in my purchase. If rares drop, I'll refinance. But I'm planning to stay in this house rhe rest of my life. It does feel great to say i finally bought a house!
Probably worth 50% of purchase price. If you sold a bubble priced house to buy it that's ok.
@@eugenefirebird8938how is it a bubble? You actually think it’s going down 50 percent? Your a 🤡 if you think that
Your bank bought a house. You bought a mortgage that will ensure you pay for that house multiple times over. Congratulations though. Beats an apartment I guess. Maybe.
@@avenger1212 so where do you live? Do you believe you are winning doing it your way?
@@kahledalbert1210 No, I certainly didn't win either. But there are realities at play no matter how we feel about it. I paid off my house a little over a year ago, at about 17 years into a 30 year mortgage. In the end, I still paid for my house twice over, and that's with a 5.6% interest rate and 2006 prices. If I sold it today, at today's prices, I still wouldn't get my money back.
People think all that equity they have in their home is profit. The only one who profits is the bank. If you love the house, that's great. I hope you're happy in it for many years. People want houses. But it's no joke, that mortgage will eat a person alive. It's common to have one, but that doesn't make it a good deal.
The most important person in American for your pocket book………………. IS YOU.
It's more important what's happening in your House, than in that White House
Let’s talk property taxes, in Austin especially new construction the rate is about 2.5% assessed value so $1mil assessed value $25k, so not having a state income tax is nice only if ur a high income earner in those metros
What is the name of that mortgage calculator @5:55? I can't find it online anywhere
Not a scam… it’s supply and demand. The best time to buy a house is now, prices will jump when rates eventually fall
Nah 2020 was best
@DSNCB919 you’re missing his point. Since none of us have a Time Machine the best time to buy is now because prices are going to increase from here
@@TheInterwebzMan so your saying rates will get back to 3 within next decade?
@@njerseydavid hope your right i doubt it though i bought in the 3%s in 2020 but need a bigger place now but im just settling due to rates.. well rates and price even with the 200k in theoretical equity i have
Most Americans have been priced out of the housing market a few years ago. These interest rates certainly won't help even with these price cuts. Prices need to drop 30% at least.
S@it never really recovered from 2008.
Man I’m so glad I bought before all of this BS. I thought my house for 156k in 2018 at 3.0 percent interest. Same house now in the exact condition is selling for 280-300k at 6 percent. Absolutely insane to me. Makes me feel bad for younger people just buying or moving out.
I'm in south Florida, Davie, Fl..4 houses in my neighborhood have all been sold within 30 days of going on the market all at or above selling price..no crash here so far..
I remember in 81 when interest rates were 18%. Only things that moved were cash sales and assumptions.
When houses cost almost nothing
@@Paul-zu2hf Higher interest rates force prices down and fyi property SHOULD appreciate NOT depreciate.
@@winniethepoohandeeyore2 why should they? What we have now is unsustainable.
@@Paul-zu2hf The rates we have now are actually the norm and have been for years. WHO in their right mind makes the biggest purchase of their and DOESNT expect appreciation?? lolol .My parents bought their last home in 1977 for around 55k, right now it's valued at $266k. Not bad for a 47 year INVESTMENT.
@@winniethepoohandeeyore2 you aren't very smart :-/
Hate how we have no debt have almost 100k saved an yet can't afford to buy a 3 bedroom in MD we don't wanna live in Baltimore city we want to be in the county we're it's nicer an the 3 bedroom town homes are in high 300s almost 400 some are in the 400s the new ones are in the high 400s it's ridiculous
100k is probably enough to start over in Eastern Europe, Latin America. Look overseas buddy.
My parents got a big house in Harford County MD in the early 90s for 101k and now that house is pushing 450k. It's ridiculous and we are going to collapse but that is when more corporations and the Chinese will buy even more property. America is done and will never be what it was before 2007/2008.
@@EddieHenderson92 Chinese has been buying land almost everywhere. Look what they did to Vancouver, BC. Tsk tsk. Part of the reason the United States continues to allow them to do this, is based on our idea of a free market economy. We believe in Freedom, it’s the basis for our moral compass. It’s the basis for our Constitution. That means, if we inhibit Chinese nationals to buy land then we knowingly take away their freedom and the party (who is most likely American or American corporations) freedoms. That in itself goes against free market economy. So, then, the argument becomes, “should we limit the freedom of non-Americans”. The problem there is that we’ve always extended our ideals of Democracy to everyone. That’s exactly what China is using against us. So how do we prevent the Chinese from buying land, without directly removing their freedom? I think there is probably only one viable solution, which in itself seems to be a bad for people like you and I, but is it really. Let’s look at BlackRock, an American multinational company who has the resources to compete with the likes of large Chinese corporations. We must choose between two “evils”. Multinational American company buying up property and keeping it, for lack of better words, in American hands or we run the risk of Chinese buying up all the property and being Chinese owned. Ofcourse there’s a downside, but would you rather rent from the Chinese or rent from the Americans (as an American). I’d rather the latter. Idk, maybe I’m wrong but that’s a logical step I’d take if I were apart of strategy for a large American multinational and I’ve noticed buying trends of the Chinese. At least in some form or another, our property is still in American hands. What do you think? Maybe I’m wrong.
What’s the website they used for the interest rate check
I understand everyone shocked over the rates because of how low they were for so long but in the 90’s they were the same rate they are now. Nobody thought they were high back then
Bro, you could also buy a big house in many states for 100k give or take back in the 90s.
It’s not about the damn rate
Dude youve been talking about housing collapse for 2 years
Agreed. A bunch of clowns. When is the crash coming? 92 years from now?
@@yoshilee7101 if you predict it every year eventually you'll be right lol
@michaellaviola3125 I wish that were the case for winning the powerball too lol. We'd all be rich. Lol
affordability collapse is real tho
They aren’t saying there’s going to be a collapse, wtf you talkin bout
Same rates we had in 1996
LOL, yeah and many of these homes that are running for 500k now were under 150k in 1996.
@@EddieHenderson92 all depends where you live. I still buy homes under 300k. just got to be ok with moving. Otherwise i agree.
@@larrysmith2608 Not that simple, prices are going up everywhere, it cost a lot of money to move and you've to be near the jobs.
Rates go down, price goes up, still can not afford…. The problem is we need more supply.
So glad I saved young and bought a house in 2017 at 25. Got me a 2.25% interest rate and a much more affordable home then renting today.
I wonder if this is all manufactured so Black Rock, State Street and Vangaurd can buy up single family homes. This will force most people into rentals. Who owns the rentals. This smells fishy. Also if you need insurance to purchase a home, but insurance providers won’t offer insurance in certain markets then those houses can’t sell. The big companies can find carve outs for insurance. It’s rigged.
Probably. You will own nothing and be happy
Housing crash won’t truly happen till the tech layoffs start later this year. When AI takes over these processing jobs and they’re laid off they can’t make the payments in rural places like Tennessee and Texas it will explode. These people are working remotely and don’t typically have any real skills outside sitting in front of a computer and all of the base jobs will already be taken… it’s going to get so much worse than anyone realizes
Actually the people with no real skills are the minimum wage delivery drivers who want 30 an hour not the tech sector.
Tech layoffs, car repos, and credit card debt . Banks will still get bailed out though.
Yep, AI is going to crush computer jobs, starting at the bottom and ending on high end engineers
America is over.
Rates don’t matter as much as price of home
Saint Cloud, FL has absolutely no slow down in house building. Also a lot of rent only neighborhoods are going in as well.
Does Adam go out and get drunk every night? What is up with that voice?
Throat pounding each night
Housing market needs to crash. And congress needs to ban investment firms from being able to buy them. Sorry people who bought at the wrong time but people need to be able to afford homes and they can't right now
Exactly. After the 2008 house bubble burst rich people and investment firms boughts a SHIT TON of homes.
The problem is they won't stop it because they don't want most Americans to own property or have a savings. America will never be as good as it was before things went to s@@@ in 2008.
The value of my house in New York goes up every week and people are still buying at asking prices or more
Opposite in California. We had a property in Encino get 14 offers and sell $400K above list price. Listed for 1.2 sold for 1.6
It’s not all gloom and doom. Location-location-location. A lot of people are over leveraged to begin with!
annoying