Wait Until Prices Go Down To Buy A House?
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- Опубликовано: 18 окт 2024
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In CA houses went down in the 90s. In 2007 prices were dropping until 2013, and houses have already started dropping now. They do drop, and already are dropping.
Thank you! Lol
Agree
@@HotelBravo556 I don't know why they keep telling the lie that houses don't drop.
CA houses are dropping because people are moving to different states. Wow how’s it hard to understand
@@EarlyBirdCraft CA has more illegals coming in everyday then people are leaving. CA has a ton of homeless people that aren't being counted as well.
Also as the remote starts to end people are coming back to CA.
I worked hard for years, lived way below my means to save for a down payment. Home prices literally doubled in my town in two years. My expectations are not too high. People trying to buy a house just have bad timing.
Agree 100% Home prices could literally 4x tomorrow and Dave would still say the exact same thing regardless.
Dave is an old man stuck in his ways
@@b.cdrisk2035 yeah but if he runs the f**ing math it should be obvious!!
This is exactly where I'm at. Saved $50k towards a down payment in the past two years, working 80 hour weeks, only to have houses get further and further out of realistic affordability (I live in Los Angeles).
LA you have 30 more years left to save 20%.
housing prices are currently absurd. even new builds are so expensive. As someone who's searched for two years, it's definitely the first time in a while that I've seen 'price cuts' on all the major listing sites. It definitely makes sense to hold tight if possible.
Hold tight and keep saving.
@@Dreamer-by4nk that's the plan :)
@ Brian agreed
Yes it’s ridiculously overpriced. It’s a hard NOPE for me!
“Price cuts?” According to Dave that’s never happened since the 60s other than 2008 😂 you got the right idea man, I just don’t know where Dave gets his “stats” from.
We're not even asking for all the fancy stuff. Based on 60k average salary, I can only afford a derelict house in some of the most dangerous parts of Phoenix. They're already asking for 300-500k on houses that aren't even renovated!
You're totally right, I live in AZ and Phoenix is freaking nuts right now with the prices. And you can't even consider renting in Phoenix. I feel best case for this insanity is to stay put and wait.
Hes definitely sounding like a boomer. His generation has got rich of the insane house prices. Its nothing to do with what gadgets people have in their homes! House prices have risen exponentially compared to wage growth
I'm just going to move out of the area. Phoenix used to have stuff to do but now it's a race to find parking at any activity. Just not a fun place to live anymore, plus the air quality and weather is deteriorating rapidly.
Feeling the same pain here in Tucson
Sounds like y’all need to move. It’s not like 60k is some miraculous salary that is keeping you locked in where you are.
Dave, they aren't building the houses they had in 1962. I WISH there were more new 1000 sq ft 2bed/1.5 bath houses to get more people in houses. The houses Dave is referring to are ideal starter homes. I live in Raleigh NC and those aren't being built anymore.
Tons of them were slapped up after WWII for returning GIs to be able to buy a little house and have a family. Small, modest houses with big yards. Kids played outside and the family sat at the table and ate every meal together. Kids and Dad walked home for lunch unless Dad worked in the city. Mom stayed home and put hot meals on the table.
@@genxx2724 You're right. Nowadays, being a Stay at Home Mom is a privilege. Working moms get so much hate, but it's whats necessary today to put food on the table.
There are plenty of homes out there. You have to look outside your bubble. Look in the suburba. Look at other parts of the state or country. We moved to another state for cheaper living and a job situation.
We really want to build a house that’s about 1200sqft but we can find land in the area that doesn’t require at least 1800-2000 sqft
The only houses they're building out here now go for $400K+. And this is in suburbia
I have me a 1964 house. It seems well built and solid. My PMI was $36/month, and it annoyed me to no end to pay it. I eventually got rid of it and recently the mortgage. 💪🏾
Awesome work my man
Great job!
Did the math on that one adjusted for inflation and PMI really is crazy. I see why you’re happy to no longer have to pay for it. Solid work !
$36 dollars a month for PMI... I have never heard of such a low cost. Usually it is hundreds a month.
NICE! Keep up the great work!
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@@Lourd-Bab However, if you do not have access to a professional like JUDITH ANN PEACE, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments
@@lennoxmutterick6434 Oh please I’d love that. Thanks!
@@Lourd-Bab Judith Ann peace is her name
Lookup with her name on the webpage.
I live in the Bay Area and housing has went up 100% in two years. I find it hard to believe prices will not be coming down
100%??? really??? I thought people were wanting to move out of overcrowded cities...
Thats what ppl said a year ago and look what's happened...
I said that 20 year ago about San Jose and didn’t purchase a house, listening to the doom and gloom people, and I’m regretting every single day!!
@@mattwalter6207 do you not remember 2008-2010? Prices dropped 50%. Foreclosures everywhere.
@@thedopplereffect00 thats cause banks were handing out bad loans to ppl who couldn't afford them. Foreclosures are almost non existant now
To fit Dave's budget I would have to find a 130k house in an area were the average is 500k... Even 50 miles outside of the city they aren't anywhere near that. Super glad I ignored him and bought early 2020 before the boom even though I had zero down and did a 30 year mortgage.
Someone needs to break him out of his bubble.
Can't teach an old dog new tricks
He has his point of view and pushes it as if it's the only way to properly do stuff and it's grossly out of touch in many areas in my opinion. He doesn't understand what things are currently going on but rather compares everything new to "how it used to be when he was younger". It's unfair to his callers and listeners but as someone else mentioned, you can't teach an old dog new tricks. He just has the money now to keep saying whatever and show his success as proof that's non replicable at this time and maybe anymore
@@emmanuelokelola7310 he makes a living selling advice. Not working, or producing a product.
@@emmanuelokelola7310 no one is forcing you to listen..
I agree with you. He have good advices but he doesn’t know it all.
Dave apparently forgot all about the 1980s real estate bubble. I bought my house in 1987 and 13 years later it was still worth less than I paid. He's totally wrong.
@Jake Carter with all the taxes and the mortgage interest I paid renting would have been better.
Did you buy a house in Youngstown, Ohio or Detroit?
@Jake Carter mine is about $4 million. The stocks I bought in the 1980s did considerably better than real estate I've owned. I have a friend who bought his house in 2006 for a little over a million dollars. He sold it in 2019 for $835k.
@Jake Carter yeah that's all fine for Canada. All I know is what I've seen and timing has been even more important than location. My friend lost close to $300k on a house he owned for 14 years. He only wishes he had rented.
@Jake Carter Canada is a strange beast. Extremely expensive to live there in general, and the real estate prices there simply do not make sense.
Home prices are NEVER going down? That is an extremely bold prediction. Have to save this video for a future date.
Housing bubbles never pop. Going to the moon, according to Ramsey?
Please save it😄
Yea, don't know why he said said that. I'm seeing sale prices come down in Cali and Arizona. Be patient house selling prices are coming down, it's just starting.
not anytime soon.
Never
I usually agree with Dave on everything but in this case, I'm not looking for granite or a skylight. Even the delapadated fixer uppers are astonishingly expensive. Match that with an interest rate that hikes up the monthly payment by another 300 dollars and what you have is the evaporation of the middle class. I don't know who got the idea to "scramble eggs on their way to work" but we don't want that we want to own our stuff, and america is making it harder and harder. Housing Prices better go down or Dave is going to have to start to redefine what the American dream really is.
What city do you live in?
Or you may have to do what people did in the past and move to a different area.
Bingo. People are too entitled to do it but it has to be done even if its temporary to get ahead. People will whine and say "well theres no jobs". Yes there is. If you have skills that match the area job demographic you can always find something. Dont have the skills? Get the basics of something new from youtube and get a job. You wont need as much money if you save before hand at your other job. I know inflation is terrible but people are unwilling to leave their comfort zones to make it better.
Brazilification is what I hear it called, an increasing amount of large countries known for growing middle classes today shrinking like never before.
@@n.e.g.u.s The middle class isn't shrinking just alot more ways to waste your paycheck than it was in the 1960s. If you look at your monthly spending how much money do you spend a month on non essential living expenses? Between cell phones, subscriptions, fast food, shopping, many people spend hundreds if not thousands of money every they don't have too.
Typically I agree with you Dave. BUT this is kind of ridiculous, how can you say an interest rate is going up 5x but housing prices will flatten out or continue go up? They have a direct inverse correlation. I agree with you most times, but I strongly believe you are wrong in this regard. Wages are not able to keep up with the ratio of cost of living increase. When wages can't keep up it forms a bubble. If housing prices don't come down were talking about a $25-$30 minimum wage. With that said is it more realistic, heading into a recession, that over inflated asset prices (such as houses) come down in price as will most assets, OR that wages double? IN A RECESSION. If you look at a lot of places where growth is quickly and extremely slowing down housing prices ARE ALREADY dropping.
His money is where his mouth is. Doesn’t mean he’s right.
He has bowed to get people into the middle class and keep them there.
I dont think 15 year mortgages are ideal for most people. The monthly payment will be unaffordable. Daves advice will prevent most people from ever owning a home.
House prices are not dropping! Show me!
You also don’t understand the world. The entire world (families, individual investors, corporate investors) for even a small drop and will dive in and buy. Please don’t show me price cuts. Who cares. I need to see actual selling prices declining. They aren’t and won’t.
@@HappyPenguin75034 When demand drops prices will drop. Prices are up 40% since 2020. Thats unsustainable
I agree with what Dave says most of the time but I noticed he gets defensive when he gets asked this question. Let’s be honest a ton of his net worth is in real estate and he loves the appreciation in his net worth and doesn’t want to see it go the other way. My wife and I own a home but I can agree that they are a bit overpriced (purchased 01/2021). He talks about how they have never gone down except in 08 for 6-8 months, but on the flip side homes have never gone up as much as they have in such a short period of time (~20%). He always chalks up increases in prices in other sectors to supply and demand. Why wouldn’t homes decrease when supplies catch up in the future along with more homes?
totally agree as soon as I heard him say home prices won't go down. I immediately thought he has skin in the game.
It is likely to take 7-10 years for the supply of homes to catch up to demand as the largest generation (millennials) have now reached their prime home-buying years. If that is true, waiting to buy is likely to be a very expensive game of chicken.
@@user-zk6fc3dw9e You are forgetting that as the largest generation of buyers, the largest generation of owners are dying (boomers)
The best time to buy was always 20 years ago. The key is to buy right, buy at discounts, buy distressed, buy forclosures, probates, repossession and auctions. There are always deals coming up. This hold true especially if you're paying cash and putting down more than 20%.
Best time to buy was 2009-12. 13-19 was also decent. Problem with distressed right now is ALOT of the stuff is BEAT DOWN. A house where EVERY SINGLE SURFACE needs to be touched is going to cost major $. A good deal of the foreclosures/tax sale, probates are looking like this. Irresponsible people not taking care of or cannot afford to take care of a house leaves them in ruins.
@@mph5896 That’s always been the case with probates and distressed properties.
@@genxx2724 Correct, BUT now labor and materials are VERY expensive for Reno.
@@mph5896 It’s virtually impossible to get any work done properly, as well.
Best time to buy was after housing crash in 2008.for me. I was flying to several states looking for a second home back then. It was like a candy store.
There were entire subdivisions with empty homes in Las Vegas and areas of California and Arizona. Many news clip stories about this on RUclips back then which is how I found this out and flew there.
In Florida there were newly built condos that dropped from $300k to $60k. This place was also news clip on RUclips.
You could buy penthouses under $300k on Atlantic and Gulf side which was tempting but I saw what the property tax was before the crash.
One of my coworkers bought two homes for the price of one in Orlando for his family.
Also met many Brazilians and Europeans traveling to Florida to buy a place in Miami area.
Bought my $560k short sale for $240k with affordable property tax.
Best thing about it was myself and many I have met had cash. Easy to get what we wanted and pay above asking if necessary.
My BIGGEST concern when it comes to following Dave's rule about getting a house at 15 yr fix rate and its a quarter of your take home pay is not to say it's not impossible to find but when you do find it more then likely it's gonna be in the ghetto or much older neighborhoods that are not as safe and this is the ONLY thing I probably won't listen to Dave on cuz I would rather be in a safer neighborhood for my family. I am completely debt free but if I have to pay more to be in a safer neighborhood I will. This is probably literally the only thing I don't agree with Dave on. Money wise yes I agree 100% but in my area if I was to go by there guide line I will be putting my family as risk. So me as a father and husband I will work hard to pay off a home in a more expensive area but my mind is a peace cuz I know my family will be safer
I suppose it depends where you live. If youre in the city then yes. But it you live in a city of ~300k or less then its easy to find in a safe area.
@@Epidombe
Yup they are everywhere,.
Best kept secret.
I laugh when people think affordable homes are in the middle of nowhere like a corn field and whatnot.
Also people starting families need to consider things like affording safe areas to live beforehand. Plan accordingly because once the family is there most are handicapped financially.
I have friends that said they have the right to have as many kids they want but realize later they are still broke because of it and can't afford nice areas and better schools.
Why not do a 20-year fixed rate instead?
@@bretfeeney1072 no point... the interest rate is very close to a 30 year... so what's the point? you can always pay your 30 year mortgage early.
Just means you need to save longer to get to where you can afford the 15yr price. That’s what Dave would say is my guess….
I listen to alot of his advice but I'm glad I didn't with the house. I bought a house with a 0 down USDA loan (middle of the desert town) and sold it a year later for 100k over what I paid. I used those funds to put 20 percent down on a house in a city where my kids will have opportunities AND a nice house. If I had listened to Dave I'd still be paying 2,100 a month in rent in LA versus 1k a month on a mortgage in a new state.
When you said "in a city where my kids have opportunities"........................... LOl yea right. Your delusional.
@@godsdozer lol right back you don't know anything about where I moved so you cannot comment can you. Haters gonna hate.
Nice!!!!
Thats dude comment was a bit aggressive. Like its his business or problem
Welp i wish I could get a 1000 mortgage...i cant find a house for anything kess than 2900+ month near me within 1.5hr drive and thats around 350k
I'm in the Phoenix area, and all the houses I'm looking at have recent price reductions. Looks like prices will go down.
If there were brand new, cheaply built 1000sqf homes readily available and reasonably priced, people would indeed buy them right now. Dave is losing touch.
Dave has lost touch of reality
Boomers are all like this. Leaded gasoline destroyed their brains.
Most people want a house bigger than that.
Also, you don't want cheaply built as that means low quality and it will start falling apart relatively quickly.
The other problem is that house prices are not linear with size. Consider the cost of a 1000 sq ft house built on a 1/4 acre. Around here that might cost $250k
A 2000 sq ft house on the same lot doesn't cost $500k, more like $350-400k.
@@black4vcobra they could build 2 x 1000ft properties on the same lot then
@@wilf7042 That may not be possibly due to zoning laws, minimum lot size requirements and footprint of house.
Let's say it is possible, the cost savings are not what you think they are as every house needs it's own utility hookups, landscaping, driveway, roof, basement (around here anyway), furnace, oven, water heater, washer/dryer, dishwasher, etc
Why not put 20% down with 30 years fixed? Most people don’t live that long in their first houses anyway and gives you a wiggle room to save but also the flexibility to put more monthly mortgage if you can afford it
I agree 100%.
You can, but why? 15-year fixed isn't that much more. If you can't afford that, then you can't afford the house. Wait until you CAN afford it.
@@jimroscovius 30 year gives you way more flexibility. You can still pay it off in 15 if you want to.
@@jimroscovius yes if I dont know how to use that money to generate more.
@@onlyyou200548 You want to invest 15%, then pay off your house as quickly as possible. Then you can keep investing 15%, plus the house payment. That's what we're doing.
The simple truth is that Dave’s rules can’t be applied to a nation that is becoming a third world country with failing institutions.
💯
Bingo
True
3rd world country? Were you born and raised in a real 3rd world country? You don’t know what you’re talking about. Pls, raise your hands and thank God you are here!!!!!! Do it many times a day!!!!!! For the rest of your life!!!! And ask God to forgive you for your ignorant and stupid comment!!!!!!
He has never seen his country go down the toobs either .
I love when Dave just stares at George 🤣🤣
He sure paused didn't he.
@ Nicholas yep! I was in shock 😂 thought my phone died or something
The average cost of a home built in the 60s was 1.5 X the average salary.
Today, that same home built in the 60s (now 50 yrs old) - Will be about 4 x The average income.
With the only difference being some new laminate floors were slapped in
Labor has been priced out by capital. They’re running out of places to put their wealth. So they buying family housing and exploiting you for the privilege of renting that. Just like they take a cut of everything in your life.
here we are 6mo later..........and prices ARE coming down
Not really. Depends on where you live. Houses in most places have plateued but not coming down much, and interest rates have gone up 2.5% more since this video was posted...so that house payment is way higher. He was right.
Well….where I live they’re coming down every day. He was wrong. But I agree….the interest rates are killing any price reduction.
Not in Minnesota.
March of 2024 and it very much depends on where you live. We are rural but the city that is about 1hr away is slowly creeping our way as well as people from CA moving here and buying at asking price or higher, site unseen. Prices just keep going up and the houses fly off the market so fast you hardly have time to get an offer in. Rental homes are just as bad with them going on the market and 20-60 people looking at them within 24 hours. It’s almost impossible to find a place to live so at least in our area it won’t be cooling off anytime soon barring some catastrophic event.
I like Dave but I think he showed that he can’t admit a bad take.
Answering problems with current standards of living with how hard it was generations ago is just as disingenuous as telling the mother sowing clothing from grain bag fabric in the 30s that it’s not really bad because generations ago they had to sew everything with tattered rags.
It’s an argument unbecoming of Dave and disappointing a bit.
Prices in Phoenix are coming down as we speak. Dave is delusional to think or speak otherwise. The prices don't just jump 50% over their historic trend lines without correcting. It has never happened in the history of this country and is not happening now. In Phoenix right now 1/4 houses has a price reduction, just wait two months to start to see the drop on paper
You’re going by list price, not by what they’re actually selling for. Listings can drop as the average price stays flat or increases.
@@mrb152 but if listings prices are dropping, resulting in drops of sales prices, then wouldn't that suggest that the average would dip as well? Not trying to argue, but I don't get what you are saying. Thank you.
@@NN-ix3ku median sold price of $400k. House is over listed at $450k. House receives a $50k reduction off asking price and sells for the average of $400k. Keeps the median price average the same
prices are NOT coming down in phoenix!!!!
@@pitbull7885 I'm not taking financial advice from a dog
Already seeing price drops on houses in my area. It just started. Maybe original asking was way over what it should have been. But sellers were getting it. It has changed in just a few weeks.
What area is this ?
It happened in 2008 too, but that housing price "going down" is just a tiny tiny blip on the radar. You can't even see it anymore if you look at the housing prices graph over the past 20 years. And even then, it didn't affect all homes.
Not in Florida...areas still getting flooded from people up north trying to escape.
Where abouts you live?
Same over here. I’m in Moreno Valley CA. I also get price drop alerts everyday from zillow.
The 1960 dream home was 1000 square feet, single garage, single car.
Today, I can’t afford a 500 square feet studio condo with no parking in my area.
you are out of touch with reality. good luck.
" What we've lost our minds on is what we're purchasing. " Thats so deep and true that we never even really notice it.
Completely false, though. The same houses that they are out priced on, we’re 50% less (if not greater) three years ago.
Had they bought the home then on a mortgage and not listened to Dave, they would’ve been able to afford it and been up greatly on equity
@@ds3602 you got an interesting point here
@@ds3602 Yup, or if they didn’t wait to be debt free. Maybe bought, then paid off debt.
Adjust your wants = overpay for a cheap house
We work for years to have , $1million while some people I know put thousand of dollars in some meme coins and they are millionaires.
Life is so precious, when you know you own a property or an investment to always keep you on go..I have no regrets starting my journey in cryptocurrency.
I really love Dave, but I absolutely hate when he’s this out of touch from reality. Dave, I’m in small farm-town Idaho. And I can’t afford to purchase a fixxer upper that isn’t liveable. So where is this house I can “adjust my desires” to so I can afford a home? Because at this point all I care about is four walls with heat and ac and to be safe in my own neighborhood.
Unfortunately Idaho is popular with California transplants.
Correction: Reality is out of touch from common sense.
"i", "i", "i". Mr entitlement. let me know when you figure out houses work. how about you and the wife at 40 years old? I know the answer already ...
@@hvaball150 I’m really not sure what you’re trying to say chief.
@@libertyor556 what do you and the spouse earn together? how old are you? I'll help you out.
you are too young and don't earn enough.... right?
no shame there. put the dream on hold.
Once you’re out of debt avoid Dave Ramsey
What are you talking about? If consistently applied, Ramsey's approach will definitely make you a millionaire by the time you're 95!
One of the good comments on here. Dave is 100% spot on with the paying down debt and the baby steps. We have been debt free and rarely listen to him- he should stick with financial peace knowledge sharing and avoid politics and insults. His mega wealth allows him the loud mouth I suppose. His co-hosts would never get away with running their mouths in the same manner as he does.
Can't argue with that
Then who should I follow ?
@@glenn4198 once you get out of debt follow a retirement specialist on RUclips they have a few good ones diversify investments.
Interest rates are forcing housing prices to deflate. Seeing it happen locally and across the board on Zillow. Dave said he hasn’t seen it since 2008. Well we had a pandemic and printed trillions some 40% of all fiat currency. Homes prices and value didn’t go up, interest rates/borrowing money was CHEAP. Pricing will retract. Sit and be patient.
Thanks for this!!!! 😊
Prices went crazy low between 2008-2013. Before that it was 1981. It is true that home prices don't go down to often, but it does happen and it looks like it will happen soon. The question is... how much will it go down? And I don't see prices falling too much, I would be very happy with a 10% decrease in home prices. Where I live the homes are selling for $550k and bidding wars have increased the value to as high as $650k in some cases... based on this I hope prices fall to about $425k - $450k and are sold for that amount. Before this crazy covid19 house boom, in 2007 (the other peak) home prices were selling for $400k.
@@johnSmith-uz8nl You are right however, Dave said "since the 60s they never have gone down with the exception of the 2008". Which is just blatantly incorrect.
i was patient and look what happen in 2019. listen to people saying it’s going to crash. i missed the fucken boat for those massive profits.
@@leosotelo5119 but predictors of a 2019 crash were betting on generally over inflated prices. Not an extreme out pacing wages surge in prices, like we’re seeing now. That is just unsustainable. But on the flip side no one could have ever predicted a sudden explode in valuations. You can’t beat yourself up unless you knew with 100% certainty the outcome, which no one does. Looking back saying coulda shoulda woulda is unreasonable.
Prices are going to crash. There is no way in this earth that people are going to continue to pay half a million dollars for a dump!
Employment and stock valuation. As long as they hold, that's the whole game.
Wallstreet will buy the homes and rent them out!!!!
I love it! Adjust my thinking to be content with what I have. I just emerged from a long term, devastating illness. Just being able to get out and feel good again has been all I need. I have a roof and food. Some people don’t have that.
Just wait for an upcoming recession. If people start losing jobs on a mass scale, there will be an avalanche of foreclosures. This will also motivate lots of sellers that are currently on the fence & hoping to squeeze some extra price appreciation. If there's no more price appreciation & others start selling, there may be a panic selling. At the same time, with raising mortgage rates, there will be less & less buyers to absorb all this increased selling pressure. All this is quite likely to happen within the next two years and if you haven't bought yet, it would make sense to wait for now.
That actually makes sense! Nice foresight of things, but just to sad to hope for things to get worse..
More like investors will step in and buy all the properties and be the slumlords they continue to be. No one can resist a cash offer.
wouldn’t it be hard to buy a house in a recession?? it’s going to be a great opportunity for investors that have the money and not worry of losing their jobs.
@@KristinaKage hello kristina. help me understand. why not invest in a REIT and become an owner yourself? thanks for explaining , my friend.
@@KristinaKage yeah they could lol! I been offer a cash offer and told them, it was to low of a offer for me to take!
Wow Dave is sooo incorrect. Housing went down for years after 2008 and across all America. And there are stats of it going up and down at every recession.
I have to disagree with Dave. The housing prices will come down as the interest rates continue to go up. Will they drop below the pre-pandemic prices? No. But they will certainly pull back from what they are now.
Between 1975-1985 house prices doubled all while interest rates went to the moon. We talking 15-18% interest rates and also triple digit inflation
Sadly this is unlikely
House prices won’t come down while everything else going up.
@@EarlyBirdCraft We are headed for a recession. Prices of goods will fall.
You cant disagree - its not allowed- unlike Clark Howard, he actually dedicates entire Friday show for constructive feedback. These people are always right and shove down their politics and insult low / middle income people- " if you dont have a garage door opener you are poverty stricken"- Luxury Apartments have garages but no electric opener, all manual. Shame on you Dave, I thought you were all mr Jesus Loves You crew.
As of today…6/13/2022… prices coming down Kevin. Slashed $50k-100k on zillow in Long Island ,NY. It’s coming down more. Don’t listen to Ramsey
Dave has been proven WRONG before back in 2006-2008. He is pretty bold, advised people due to his own agenda, and never apologized for leading people wrong.
Dave has already won the race of life. The countless people who thank him is proof his ideology works. He doesnt need to apologize to anyone.
@@hrobbins but he could and he should knowing fully well that he has led people wrong if he had true values.
Why should Dave apologize? People call him to ask for his opinions. Whatever they decide to do is on them.
@@joshueljimenez5002 Incorrect. Not opinions. Advice. Free financial advice. Free but advice nonetheless.
Being Dave Ramsey means never having to say you're sorry. Or to admit you're wrong.
Buy land.
Build your own house (around 400 sq ft)
Live a hybrid life of on/off the grid.
Land can be exorbitant even out in the sticks.
Dave’s out of touchiness is showing again. Look at prices for those types of homes from the 60s, they are completely out of alignment for when they sold back then and adjusted for inflation.
Boomer
Uh yea that’s why he said the prices are going back down because over the long run they almost never had? It seems like you’re only hearing the parts you want to hear.
I live in the Phoenix area and I'm currently renting a 2bd/2ba 1000sqft house built in the 80's with lots of original features. I was lucky enough to start renting as prices were going up, but just before they got insane. My house is currently valued at 385k. I cannot even afford to buy this tiny and old house that I'm in, nor any other like it. And yeah, I'm in a "rough", high crime area. I definitely don't think that it's my expectations that need to come down.
The home Dave is talking about in Houston is still $300+ (out of my current budget) and you have to worry about being robbed/ra*ed/murdered when walking in our out of the house. A house in houston that is safe and basic is around $500k at the moment.
Those Katrina imports from New Orleans sure are paying dividends to the Houston area....
@@jcman240 yes it’s that simple solution to a much more complex problem that will fix all of this
You looking inside the loop? There's plenty of places cheaper than that. Energy corridor, spring, friendswood...
@@jdtreharne inside loop and midtown. Spring is too far. I will look near the energy corridor
Sounds like Sacramento. $300k neighborhood.......better buy a couple of rottweilers too!
I took PMI and don't regret it in the least. Prices haven't gone down, but my interest rate would almost be double right now, and be costing me over $500 a month in interest.
Also, I was nowhere near the $50 per 100k borrowed for PMI. Mine is closer to $12.
Howd you get such low pmi? Any specific lender/company?
@@golurk9521 fannie mae homeready
PMI costs $30-$70 per month for every $100K you borrow
Paid 100$ a month of pmi for 3.5 years. My house value rose over 100k during that time. Love it baby.
he said $75... where are they getting there stats lol
Prices WILL come down Dave. They may go back up at some point, but they WILL go on sale.
I'm thinking the same cuz how is someone going to qualify for a mortgage with increasing interest rates and today's average house asking price. Who is going to be able to sell their home? Who is going to buy it if they can't find qualified buyers? Wouldn't the only logical thing be to lower the asking price if someone has to sell their house?
Prices are never going to come down in Phoenix? Let's listen to this again in a year.
Phoenix has a long way to go if Canada is any indication
@@jcman240 Phoenix is NOT Toronto 😄
This isn’t possible today, I’ve saved for 10’years just to see home prices soar so high that I can’t even imagine purchasing a home.
Look for multi-family
Yes look for a affordable duplex
odds are you don't deserve one. that's why it's impossible.
@@hvaball150 cool reply man? Your telling me making 80k a year and having a chunk saved is not worthy ? Try living in Colorado.
@@camronRD don’t get mad, some people just aren’t made out for homeowner ship. Just keep renting
0:39 look at Dave looking furious and not answering and staring at his little "Ramsey personality" lapdog to answer it with the 'go on ! you answer!' expression 🤣
Bro that’s a little cold. But ya 😆
It’s insane to me how out of touch this guy is😂😂😂
which guy?
@@subjecttochrist both of them.
@@rnt45t1 why?
Dave or the viewer 🤣
It's truly incredible
We just went through rural gentrification because a lot of people from NYC, Mass., and Connecticut decided to get away from the pandemic and spent outrageous prices on homes and land. Not just home prices, but property taxes went up to the point where it seriously hurt local homeowners. Lately I've been seeing "Price drop" on a lot of notifications from Zillow. The banker I talked to said the city folk were going to get bored and head back to the city, and then prices might drop.
Funny Farm was prob the best movie that showcased this. Although back in the late 80's
But isn't it cool having Eva Gabor as your new neighbor up the path?
@@JustinCase780 Nobody that glamorous - just a bunch of people moving to the sticks and expecting all the amenities they would have on the Upper West Side or Park Ave.
@@botticelli728 Oh my. They can move back and enjoy the $24 sandwiches.
It is the thing about property taxes. They should not increase that much if "everyone's" home price increases. So you don't make much sense.
Just a correction on PMI, for the house I just bought my PMI is like 50 bucks on a 200k house
Same. Mine is like 35 on a 140K
Mines 49 on a $248k
Someone once said "What some people mistake for the high cost of living is really the cost of high living."
Median household income in the Phoenix metro is approximately 60-70k. Median home price is 475k. You're looking at about a 3000-3500 mortgage payment on a 15 year. In order to make that and have it be 25% of take home you'd have to be pulling in 210k+ a year. Yes I'm sure that those home prices are totally sustainable with all of those high Phoenix salaries...
the price of a home may not always be correlated to the local wages. people with more money from outside the area will buy those homes. in florida, people outside of florida, such as new yorkers and foreigners, are driving prices up past what the locals can afford. this process has been going on in florida for decades.
You always have enough when you are grateful for what you have. If you want to buy a house, be happy with what you can afford.
I feel like it's getting harder to relate to Dave on some things like this maybe he's been rich too long?? lol.
Starting to agree.
Yes. Especially since much of his wealth is in real estate. He has a dog in the fight.
Dave is telling everyone not to worry about inflation because once supply chains normalize the prices will come back down… Why does this not also apply to housing? Which is it?
Dave doesn’t really know. He’s just good at telling people to payoff their debt.
Well honestly from my own experience with no debt and a steady job, inflation thankfully doesn’t affect as much as one with debt. So YES getting rid of debt is the right way to go.
@@marcosc7375 well if your rates are fixed how does inflation get worse for people with debt?
@@anthonyjames4319 beeeeeeccccaaaauuuuussssseeee you have more to pay stuff on. Lol
@@marcosc7375 lol I admit obviously no debt is better than debt, but as far as inflation goes debt is the one thing that isn’t effected by inflation.
Dave is lost, new homes being built set the standard. There are NO new builds smaller than 1,800-2k SQ footage. And those are on the low end are 370k.
Dave, please stop referencing the freaking 1960’s standard of living! That was over 60 years ago! The world is completely different. A freaking microwave and garage door opener is a common and not expensive these days. I give you that granite is not something to look for on a first house, but when a starter home price is 300k in major cities, it should come with it!
This !! He’s outdated . Yesterday news. Don’t listen to Ramsey is the best you can do and just buy a house when you CAN and are able to afford it, case closed
@@ColdSprite then how you here commenting on a video released minutes ago?
At least he didn't go back to the 0060's. Where every house was just a cave.
Look up, because what Dave is talking about is way over your head.
Look at home prices for something under 1000 sqrt feet
I don’t know in what planet these people live… I looked for houses that are less than 1500 square feet in my area and there is literally NOTHING that fits those specs. Or they are a hole in the wall. Either a studio 750 square feet or less, or things above 1500 or insanely big. I think there are plenty of people who would love to buy something that is perfectly proportioned and affordable. Anyway, even buying a studio that is less than 750 square feet is out of reach for many price wise… but Ramsey always have to act like grumpy grandpa and really miss on the basic issue here.
All I heard was buy something you can afford. No where does he say you must buy a 1500 sq foot house.
@@AnimeBeefRandoms yeah exactly but most people can’t afford even the studio apartment… I think the caller was complaining about the fact that there aren’t many affordable options anymore. Also inventory wise there isn’t a lot of choice. Unless of course you wanna live in a dangerous neighborhood. Plenty of affordability there… I have seen houses that are literally falling apart. Should you buy a cheap place and spent hundred thousand dollars on renovations?
War time bungalow is going for 700k in my town.
@@Ginger-sm5ed exactly… but of course Ramsey’s answer to a very complex problem with lots of variables is of course, young people are spoiled. 30 years in the real estate business but I guess he is not aware of current inventory. And let’s not even mention how poorly built houses in the US are. That’s a total different story… 2x4 studs and drywall? LOL
Here's a solution, find another area. I'm talking 10-30 minutes outside your metro, in all directions. Im in Tampa but if you go to Plant City, Zypherhills, Lakeland, Largo, Ruskin, Lake Alfred ECT. ECT. prices didn't spike like they did in the municipal area.
Don't wait!!!! You know what they call people that are house poor?
Homeowners!
I’m one of the top loan officers in the nation and I am shocked at what Dave is saying. He’s dead wrong! I couldn’t disagree with him more!
So what do you say?
@@PtylerBeats right let me know what she’s saying
This makes me feel better because I’m in the same boat and for him to say what he said was very discouraging
@@trecyyyyy3691 ooh I know I don’t know what to do.
How do you know you are one of the top loan officers?
Phoenix is full of cheaply made cookie cutter homes. Entry level, small basic homes are running $430k minimum in Phoenix area. Nothing even close to granite counter tops etc.. back yards are tiny. And I think most ppl would buy a 1000ft house if they made them considering the cost now days. I guess you can always move to west or south Phoenix. Just stay below the window lines so you don't get shot lol
Dave's confidence is irritating, i think it's because he just lives in a completely different world than regular people. Current prices are unsustainable and only a blind man can't see that. Folks when anyone is rushing you to do something, pump the brakes, that the time to take a pause and look around. It is a bouble and it will pop, one way or another.
He is over confident and sometimes he sounds arrogant. I don’t like it when he calls people stupid. What they do it’s not who they are. He needs to separate the behavior from the person.
Dave is really wrong here. The average salary in America is 56k/yr, the average house price is around ~400k but in some states and around many major cities it's much more, ~700k in California. At that price your ENTIRE salary goes to the house and it's not a dog washing house, it's a fixer upper from the 60's or 80's if you're lucky. With all the other debt and cost of living today it's practically impossible to achieve. Much of the price has been driven up by foreign investment and institutional buying for the express purpose of flipping or renting, not people looking for heated floors and dog washing machines. Of course there's people making tons of money that get a big fancy house so you can pick any single example you want but for the rest of us any property at all is out of reach. Income inequality is 100% an issue for more people than ever before and Mr. millionaire behind his desk doesn't see it because he thinks we're all buying cars that fry eggs for us
The town we live in and where our two daughters grew up now has a median home price of $750k. They both are grown now and have decent incomes and there is NO WAY they could live anywhere near us. And by “anywhere near” I’m talking 2-3 hours away. Dave needs a realty check.
what was the general population of the area you moved into, when you moved there? you couldn't afford new york city then, right? well, now your area is densly populated if you have 750k homes. so your kids can't live there any more than you could have lived in NYC. but your kids can live somewhere.
Sky lights and garage door opener doesn't cost that much....
Dave is a bit out of touch with what's available. Even apartments are more than 25% of the majority of people's take home pay.
I make $125k per year in a small state and that's not enough to buy an average home with Dave's rules. Something is WAY OFF.
When prices come down as fast a they increased, justice will be served.
This didn’t age well for Dave
Prices have already started coming down.
what are you talking about??
It’s not the buyers saying I want to pay 100k over with no inspection. It’s the realtors suggesting stuff like that. Realtors are telling buyers oh this house is way under valued because they want the most commission
Nothing to do with realtors. It was supply and demand. If you didnt take that realtors advice you missed out on the best price appreciation in history
Prices dropped in California in 2008 thru 2014 about 40 to 70 %. I lost my home I bought in 2004 - 625k sold at auction in 2008 for 217k I’m the one that bought it back
🖕bank of America
I got them back
It’s a long story but it true
1973, 1980, and 1993 as well.
@@johno2277 and now prices of homes are coming down again
@@DS-yu4kr Definitely. I'm an appraiser. In Marin County, sales prices have dropped 10% since late April, early May 2022.
George being himself & having fun! I think he even smiled in this one!
I find it extremely hard to believe these ridiculous home prices arnt gunna come down.
Well…they aren’t. Low supply and high demand paired with high interest rates. We’ve never seen this mess before. I hope you already own a home.
@@FrankS111 trust me. I wish I did own a home.
@@FrankS111 demand is dying with the interest rate hikes. Pair that with an incoming recession that will cause inevitable job loss, and prices WILL drop. Only investors and realtors are spewing this "homes only go up" nonsense. 2023 prices will fall. It is already happening, we are at the top and stagnating.
House prices are going down.
A home I saw two weeks ago dropped 20k
How is that not considered prices going down?
Commenting so i can come back here when the crash hits.
How many recessions u were in that caused a housing crash? Because i have never seen wat happened in 2008 ever
Dave - If I want to sell my house and there are no qualified buyers due to high interest rates, then how will I sell my house? Will I ultimately have to lower my price in order to attract a qualified buyer? How can I sell my house at today's prices if nobody can qualify for a mortgage anymore?
This isn’t 2008 not even close , agree with many points Dave brought up.
This is way worse than 2008 LOL.
Manufactured homes are the future of the middle class
Have you seen the price of a manufactured home? Also where I live lot rent is $500 a month min. Often more than $700. So you pay $650 to put your 200k home on a tiny square of land.
No Dave you're very out of touch
They build larger houses for the same reason they build them right next to eachother. TO MAKE MORE MONEY OFF THE LOT!
You mean reality is out of touch of common sense.
I’ve been getting quotes for siding on a < 2000 sq ft home for $60-80k… Rebuild and roof an existing rotting deck - $60K. Yet, my insurance complete rebuild cost is $270k. It’s ludicrous and disgusting. Guess my house will be going more down the drain, cuz there is no way I’m paying that much. On principle…🤷🏽♂️
Do it yourself save the money
A friend got a quote for $100k for new windows 🤣. He paid $300k for the house 10 years ago. Nice house, but not that nice.
@@mokshavortice - I’ve done four years of renovations on this house myself - siding and a deck is something I can’t handle solo. Mostly because I am having joint replacement soon. But I hear ya….
@@dingdongdaddy589 Do it at your own pace get some friend’s help or get some extra hands at the depot. Good luck with the surgery
@@mph5896 that’s so dumb windows are easy, do it yourself.
Prices HAVE to come down, it’s inevitable because rates are going up. Basic economics.
"Prices are not going to come down."
This statement will age like milk. We're about to see a crash/correction that will be pretty substantial. I am not sure that Dave is aware that there are people who bought houses during the pandemic that they are trying to now flip for 75 percent return profit. Can't sustain itself.
I disagree with the dream home mentality. My 24 year old son just wants a solid, stick built home for $150k. It’s no where to be found in kentucky.
This guy is soooo wrong! Weeks after Dave's "don't wait, prices aren't going down" plenty of evidence they are. Core-logic data, Moody's analytics and in my appraisal business we are witnessing a big decline.
The average home price in the USA is now $400K. Dave- that is not a bubble, it's the Hindenburg. You can't compare any other era or bubble to this one.
Even realtors won’t talk to you if your budget is too low lol
Even a 200k house results in $1700+ in monthly payments. Who can afford that??
Real estate investors and realtors: "The cost of housing will never go down!" "This is the new normal"
Everyone else: "I guess pendulums work differently on your planet?"
The 1962 houses you're talking about are now 350k.
Must be nice. In our area those 1960's homes are $575K
Prices fell in 1981, Prices fell in 2008 - 2012.
Why not go to 1868 standards of living? Who needs indoor plumbing anyway?
So what I am getting from this is that house prices are increasing every year, but wages and salary are not keeping up to the rising costs. The same house worth $250k two years ago is going for $400k today. People saving for that 20% down (to avoid PMI) have to delay their purchase because their target price house range has increased substantially. How will people catch up with these prices?
I think they already have income issues and now it will be worst that before.
simple to catch up with prices. improve yourself so you can earn more.
@@DrSchor You already know some can’t improve themselves to earn more they are already at their max!!!
It's January 2023..and prices are going down.
Prices are going to come down. I’m already seeing significant price cuts in my area already and it’s definitely going to continue.
Median home prices will continue to rise
Prices on houses will come down. As the interest rates continue to rise prices will absolutely come down.
Seems like everyone is waiting for house prices to fall, which means demand will shoot right back up when the perceived drop has occurred
not if we have massive layoffs
@@jcman240 i think people belive home prices will fall to pre pandemic levels, that probably won't happen in many developed areas
He was right, median house now is slightly higher than 2 years ago. Ppl who waited this long for a crash/correction will probably just continue to wait at this point.