We’re seeing 49% less inventory in Sacramento vs one year ago and last year we already had very low housing inventory. Despite this home sales and prices have skyrocketed. I’m a Realtor in Sacramento. Great video!
@@MartinezRE1with all due respect, I highly doubt interest rates will drop below 2.5%. The record low is 2.67%. Federal funds rate is already at/near 0% too.
@@JasonWalter1 With all due respect, I got a quote for a 2.375% , JDCU Credit union in Massachusetts, The mortgage broker told me that it will be 2.00% by July or September, but the houses are not going to be worth what they’re asking for
I will never forget the market in 2000 when I was buying in an extremely low inventory market. With advance notice, I eventually put a contract on one as it came on the market in 2000 when people were buying homes without seeing them and waving home inspection. It's unbelievable if the market is anything like that now.
Unfortunately government intervention has contributed to the decrease in supply. If you worked hard and saved up all your life for a down payment and are ready to buy, this current market is the last thing you want to see as homes become unaffordable. Long story short the lower middle class is feeling the burn right now. But the question is how long will this will last?
You summed that up well. Zillow predicted really high increase in my area this year, I thought they were crazy. Were up almost 10% and they are calling for another 10% this year. This will be 6-7 year price growth in 2 if they are right. Gov is our enemy
Some things are stacking up that are not being talked about. 1 Businesses that are going to be permanently closed once the pandemic ends. 2 moratorium on evictions. There are a ton of ma and pa investors that are going to be forced to put their rental properties on the market. Many of these rentals are sfr. 3 The record number of unemployment with a lot of homeowners that are not going to have jobs to return too and not just lower paid service sector employees. 4 City state and county employees that got pay cuts. 5 Its still a pretend to be rich society. You can count on a shit ton of Americans using their homes as ATM machines. Yes nowhere near the loan to value of the homes compared to 2008. But debt to income ratios are not looking good. And when this ends 100 percent wont be a V shaped recovery, and there never was. I truly believe the market wont just level off or dip slightly. I think it's going to crash and everything will go on sale. And if you own a home this means the value of your home will drop substantially when this happens. And right now I wouldn't get too excited about home values sky rocketing. It's just the dollar getting weaker due to money printing government intervention and stimulus. I'm not in favour of this socialism hopefully we see a return of free market practice.
When markets are up we talk about capitalism and how clever we are. When markets are down we become socialists and demand bailouts “for the people”. Cake and eat it springs to mind.
Thank you for this analysis. I was trying to think of a way to put it together but you do it well. There are A LOT of other things going on and I think the biggest is the UNEMPLOYMENT and the impact of that. The closing down of the economy and jobs are not coming back as fast as unemployment rises and things can not be propped up forever with Fed trillions of dollars. And what is the end game to all this, and when? All of this seems very different then in the past years and very hard to foresee, so much is controlled and manipulated as never before.
Taking on mortgage forbearance does not mean EVERY lender/bank will allow you to have the mortgage payments be added towards the end of the loan. This completely depends on each lender/bank. There is no law right now that is current that specifically states this. There could be multiple scenarios: 1. add the remaining payments to the end of the loan (as you mentioned) 2. pay the missed payments in a lump sum all at once 3. spread out the payments in the first couple of years which would increase your monthly payments until the forbearance amount is paid off It will be quite interesting to see how this will be handled in most banks and it can immediately have an impact to the real estate market as we speak. Some people may not be able to afford the increased monthly payments or cannot afford to pay the lump sum at once. This will force them to sell the property and can increase the home supply to the market. Also, don't forget that if you take forbearance, you are accumulating interest on a huge amount. So its not like you're not paying for it...
How do you see this affecting the Baltimore-DC area? I’m currently in the market to buy and only see houses getting more and more expensive. Will there be a wave of inventory coming?
6:30 I believe this is incorrect, if you sell your home they are going to want that forbearance paid back and ALSO the Pay Off amount of your mortgage loan and paid all at escrow (it would be paid against the equity you have in the house.) If that is wrong, please tell me (and why) because that is what I read in many places. YOU OWE that forbearance, it just doesn't go away if you sell your home!
I filed for forbarence in April and my credit report shows it as “ no data”. I was buying a second home and my lender said as long as I made my payments on time, I’m good. Luckily my tenant was paying rent so I didn’t need it. I was considering forbarence again and not paying mortgage but I would still owe taxes and interest and I didn’t want to take that chance and have to refinance in case rates shoot up after forbearance ends, I didn’t want to push it to end of the loan either because that’ll eat up all my equity real fast and I don’t want to be under water if I have to sell. I will only use it as an emergency.
Great video. I think not only are sellers afraid to list but to the ones who permanently lost their jobs, how will they move into a new place if they have no proof of income?
I can’t believe you think you are actually saving the money by not paying on your mortgage😩. The payments that are not made are added to the loan balance. You are NOT saving, but you are actually withdrawing in advance from the equity you might have on your property.
Starting to see some of that in Vegas also. However everything is still WAY OVERPRICED. This city is going to get hammered when the moritorium & fed money printing stops.
Supply and demand bro. Less supply same demand for a few more years as millennials and everyone else flees the shities. Gov red tape slows new construction plus adds major expenses. Huge problem
@@anthonyca indianapolis And I’m seeing tons of houses come back on the market due to financing falling through. I think that the banks are pretty strict even though the interest rates are so low
There has been disruption in building materials and its something that will take time to readjust. I don't see home prices falling anytime soon because building has become that much more expensive so even with the housing stock will increase the prices will not be much different.
I'm not a professional and this is just my opinion. But I like to stick with investing fundamentals. Buy low sale high. I believe the housing market is at the top or near the top of the cycle. The narrative that the mainstream media and NAR is pushing is " The only better time to buy than today was yesterday "
@@Hacker-rq9vo I tend to agree with the basics idea for sure. I keep hearing contradicting reports they market will crash vs keep going up over next few years. My family is looking to buy a home in the next 12 months. I don’t know if we buy now and hope prices don’t go higher or wait and see what happens. I’m out 15k if I rent for 12 months, but could save big $ of the Market crashes. We’re looking at 200k houses now so not big $ but big for me
Yes, I read that all over the place, they want that forbearance and it comes out of your equity at escrow when you close on the sale of your house... hopefully you have some equity to cover that and other costs and still walk away with something.
@@MichaelJohnson-jm8ct Saw the price lately and it might run up to $30k soon and that's one of the reason I would want to start investing for the betterment of my kids
Earning investing in forex and cryptocurrency trading has been my greatest wish since I have been scammed and lost a lot severally, so I started on a low plans only to see how Mr Liam Michael works...I'm convinced now since I received my withdrawal
Mr Liam Michael is indeed the best👍,I think I made the right choice;I heard a lot of people sharing their testimonies about the good outcome of trading with Mr Liam I decided to give it a try and it has been amazing making money from home.
The tides of the money market and the wealthy has always revolved around investing smartly,taking risks with critical predictions and careful analysis. Cryptocurrency trading is at the forefront of modern investment and this is why you need an experienced trader like Mr Michael with his exceptional trading skills would help anyone who is confused on how to go about making profits from the crypto world.
Great job Captain Obvious, inventory will be low in 2021, if any seller is dumb enough to be afraid of listing their house because of COVID-19, they are a dumb ass, the prices are so high it takes 1 to 2 days to sell and you get what you want and it’s over price, my real estate agent told me if you’re not willing to go into a bidding war don’t come out and play, you have to start at 50K over price. If anybody was going to sell a house without doing any renovation and no upgrades and house the is probably falling apart this is your year to do it 2021, no house will be worth the asking price the only thing you’re going to see is overprice houses even if you pay cash you won’t get a deal, great job Captain Obvious 👨✈️ .
I’m seeing a lot of experienced real estate investors selling as they see prices at the peak. On the buying side I see a lot of clueless young professionals buying because they “must buy”. I saw 2005-8, and it’s sad to see these young people making such a huge life mistake, worst, it’s disgusting to watch those in positions of trust leading them down the garden path... banks should increase deposit requirements to protect their balance sheets from what’s to come (most have). If dumb money is doing one thing and smart money another, it doesn’t take a genius to see that young buyers are being passed the ticking time bomb that is real estate at the moment. Real estate investment firms holding record amount of cash on balance sheet - what does that tell you. They’re waiting.
@@josephedlin2172 the housing market crash is going to be in 2025-2030, interest will be 2.00% in 2021, the housing prices are going to be out of this world in 2021
Has nothing to do with people not listing their homes, eh? Commodities prices will always fluctuate. Construction supplies are getting more expensive because a) people aren't listing their homes so people are building instead and b) lots of people are working from home so there's a construction boom due to renovations. These are temporary circumstances though. Prices won't stay high forever.
Watch my video breaking down the Harver University housing market report and forecast
ruclips.net/video/Xz62zGlgnM4/видео.html
Hey how are you
I want to make a mention with you, I hope you can help me
We’re seeing 49% less inventory in Sacramento vs one year ago and last year we already had very low housing inventory. Despite this home sales and prices have skyrocketed. I’m a Realtor in Sacramento. Great video!
Oh , other Captain obvious, don’t forget interest rate will go to 2.00% by the middle of the year 2021, and house price will go up up and away
@@MartinezRE1with all due respect, I highly doubt interest rates will drop below 2.5%. The record low is 2.67%. Federal funds rate is already at/near 0% too.
@@JasonWalter1 With all due respect, I got a quote for a 2.375% , JDCU Credit union in Massachusetts, The mortgage broker told me that it will be 2.00% by July or September, but the houses are not going to be worth what they’re asking for
@@JasonWalter1 When is your next video explaining the obvious
@@MartinezRE1 is this a zero point rate?
I will never forget the market in 2000 when I was buying in an extremely low inventory market. With advance notice, I eventually put a contract on one as it came on the market in 2000 when people were buying homes without seeing them and waving home inspection. It's unbelievable if the market is anything like that now.
Unfortunately government intervention has contributed to the decrease in supply. If you worked hard and saved up all your life for a down payment and are ready to buy, this current market is the last thing you want to see as homes become unaffordable. Long story short the lower middle class is feeling the burn right now. But the question is how long will this will last?
You summed that up well. Zillow predicted really high increase in my area this year, I thought they were crazy. Were up almost 10% and they are calling for another 10% this year. This will be 6-7 year price growth in 2 if they are right.
Gov is our enemy
Amen to that.
The answer is "as long as they want it too last" till we get to the point of no return.
keep renting, it's cheaper, let the idiots buy and lose at this time
PROSPERITY
BONANZA
Some things are stacking up that are not being talked about. 1 Businesses that are going to be permanently closed once the pandemic ends. 2 moratorium on evictions. There are a ton of ma and pa investors that are going to be forced to put their rental properties on the market. Many of these rentals are sfr. 3 The record number of unemployment with a lot of homeowners that are not going to have jobs to return too and not just lower paid service sector employees. 4 City state and county employees that got pay cuts. 5 Its still a pretend to be rich society. You can count on a shit ton of Americans using their homes as ATM machines. Yes nowhere near the loan to value of the homes compared to 2008. But debt to income ratios are not looking good. And when this ends 100 percent wont be a V shaped recovery, and there never was. I truly believe the market wont just level off or dip slightly. I think it's going to crash and everything will go on sale. And if you own a home this means the value of your home will drop substantially when this happens. And right now I wouldn't get too excited about home values sky rocketing. It's just the dollar getting weaker due to money printing government intervention and stimulus. I'm not in favour of this socialism hopefully we see a return of free market practice.
When markets are up we talk about capitalism and how clever we are. When markets are down we become socialists and demand bailouts “for the people”. Cake and eat it springs to mind.
Thank you for this analysis. I was trying to think of a way to put it together but you do it well. There are A LOT of other things going on and I think the biggest is the UNEMPLOYMENT and the impact of that. The closing down of the economy and jobs are not coming back as fast as unemployment rises and things can not be propped up forever with Fed trillions of dollars. And what is the end game to all this, and when? All of this seems very different then in the past years and very hard to foresee, so much is controlled and manipulated as never before.
"Socialism" LOL
Taking on mortgage forbearance does not mean EVERY lender/bank will allow you to have the mortgage payments be added towards the end of the loan. This completely depends on each lender/bank. There is no law right now that is current that specifically states this. There could be multiple scenarios:
1. add the remaining payments to the end of the loan (as you mentioned)
2. pay the missed payments in a lump sum all at once
3. spread out the payments in the first couple of years which would increase your monthly payments until the forbearance amount is paid off
It will be quite interesting to see how this will be handled in most banks and it can immediately have an impact to the real estate market as we speak. Some people may not be able to afford the increased monthly payments or cannot afford to pay the lump sum at once. This will force them to sell the property and can increase the home supply to the market. Also, don't forget that if you take forbearance, you are accumulating interest on a huge amount. So its not like you're not paying for it...
How do you see this affecting the Baltimore-DC area? I’m currently in the market to buy and only see houses getting more and more expensive. Will there be a wave of inventory coming?
Our market remains very strong. Little inventory and a large number of buyers. I don't see it crashing even if other areas do.
6:30 I believe this is incorrect, if you sell your home they are going to want that forbearance paid back and ALSO the Pay Off amount of your mortgage loan and paid all at escrow (it would be paid against the equity you have in the house.) If that is wrong, please tell me (and why) because that is what I read in many places. YOU OWE that forbearance, it just doesn't go away if you sell your home!
I filed for forbarence in April and my credit report shows it as “ no data”. I was buying a second home and my lender said as long as I made my payments on time, I’m good. Luckily my tenant was paying rent so I didn’t need it. I was considering forbarence again and not paying mortgage but I would still owe taxes and interest and I didn’t want to take that chance and have to refinance in case rates shoot up after forbearance ends, I didn’t want to push it to end of the loan either because that’ll eat up all my equity real fast and I don’t want to be under water if I have to sell. I will only use it as an emergency.
Great video. I think not only are sellers afraid to list but to the ones who permanently lost their jobs, how will they move into a new place if they have no proof of income?
I can’t believe you think you are actually saving the money by not paying on your mortgage😩. The payments that are not made are added to the loan balance. You are NOT saving, but you are actually withdrawing in advance from the equity you might have on your property.
its renter market right now, enjoying my low rent and saving for the crash
You deserve more likes than this
I am seeing price drops and houses coming back on market due to financing falling through
Starting to see some of that in Vegas also.
However everything is still WAY OVERPRICED.
This city is going to get hammered when the moritorium & fed money printing stops.
Supply and demand bro. Less supply same demand for a few more years as millennials and everyone else flees the shities. Gov red tape slows new construction plus adds major expenses. Huge problem
@@anthonyca indianapolis And I’m seeing tons of houses come back on the market due to financing falling through. I think that the banks are pretty strict even though the interest rates are so low
There has been disruption in building materials and its something that will take time to readjust. I don't see home prices falling anytime soon because building has become that much more expensive so even with the housing stock will increase the prices will not be much different.
Great video, Malcolm! As a real estate investor, thank you for summing everything up.
Where’s the buyers market
I’m trying to figure out if buying now is the best or worst thing to do in the market.
I'm not a professional and this is just my opinion. But I like to stick with investing fundamentals. Buy low sale high. I believe the housing market is at the top or near the top of the cycle. The narrative that the mainstream media and NAR is pushing is " The only better time to buy than today was yesterday "
@@Hacker-rq9vo I tend to agree with the basics idea for sure. I keep hearing contradicting reports they market will crash vs keep going up over next few years. My family is looking to buy a home in the next 12 months. I don’t know if we buy now and hope prices don’t go higher or wait and see what happens. I’m out 15k if I rent for 12 months, but could save big $ of the Market crashes. We’re looking at 200k houses now so not big $ but big for me
I also read that in order to sale your home you have to make those payments that got put on the back end. Is that true?
Yes, I read that all over the place, they want that forbearance and it comes out of your equity at escrow when you close on the sale of your house... hopefully you have some equity to cover that and other costs and still walk away with something.
Interesting video
Talked of it to myself and I've been looking for a perfect investment which will provide me more profit but haven't seen none yet.
Have you seen the price of bitcoin lately? How it keeps on growing higher
@@MichaelJohnson-jm8ct You're absolutely right. Bitcoin was launched 10years ago and it worth nothing then but take a good look now, it's above $20k
@@MichaelJohnson-jm8ct When I saw the price of a bitcoin, I was really in shock 😲, I never really expected it to run up to that level so quickly
@@MichaelJohnson-jm8ct Saw the price lately and it might run up to $30k soon and that's one of the reason I would want to start investing for the betterment of my kids
@@maryandrew8655 Nice idea 💡
Becoming financially stable requires patience,dedication and good investment
Earning investing in forex and cryptocurrency trading has been my greatest wish since I have been scammed and lost a lot severally,
so I started on a low plans only to see how Mr Liam Michael works...I'm convinced now since I received my withdrawal
Mr Liam Michael is indeed the best👍,I think I made the right choice;I heard a lot of people sharing their testimonies about the good outcome of trading with Mr Liam I decided to give it a try and it has been amazing making money from home.
Reach out to Mr Liam Michael *+ 1_2_0_1_3_7_9_4_6_8_7_
Through,whats_App
The tides of the money market and the wealthy has always revolved around investing smartly,taking risks with critical predictions and careful analysis. Cryptocurrency trading is at the forefront of modern investment and this is why you need an experienced trader like Mr Michael with his exceptional trading skills would help anyone who is confused on how to go about making profits from the crypto world.
Great job Captain Obvious, inventory will be low in 2021, if any seller is dumb enough to be afraid of listing their house because of COVID-19, they are a dumb ass, the prices are so high it takes 1 to 2 days to sell and you get what you want and it’s over price, my real estate agent told me if you’re not willing to go into a bidding war don’t come out and play, you have to start at 50K over price. If anybody was going to sell a house without doing any renovation and no upgrades and house the is probably falling apart this is your year to do it 2021, no house will be worth the asking price the only thing you’re going to see is overprice houses even if you pay cash you won’t get a deal, great job Captain Obvious 👨✈️ .
I’m seeing a lot of experienced real estate investors selling as they see prices at the peak. On the buying side I see a lot of clueless young professionals buying because they “must buy”. I saw 2005-8, and it’s sad to see these young people making such a huge life mistake, worst, it’s disgusting to watch those in positions of trust leading them down the garden path... banks should increase deposit requirements to protect their balance sheets from what’s to come (most have). If dumb money is doing one thing and smart money another, it doesn’t take a genius to see that young buyers are being passed the ticking time bomb that is real estate at the moment. Real estate investment firms holding record amount of cash on balance sheet - what does that tell you. They’re waiting.
@@josephedlin2172 the housing market crash is going to be in 2025-2030, interest will be 2.00% in 2021, the housing prices are going to be out of this world in 2021
These new low interest rates should only be for first time home
Buyers
Due to upcoming foreclosures and bailout selling, there will soon be a glut of homes for sale.
Housing is toast here in Oregon. Buy bitcoin
Oregon prices are bull shit 1500sqft house $400k
Are interest rates low?? Really?
I think the best investment opportunity for the 2021 housing market is investing your time in making videos about the 2021 housing market.
Agree
PROSPERITY
BONANZA
Up up and away! (from normal peoples price range)
A nation of renters inc
PROSPERITY
BONANZA
Homes Prices rising and rising bcz all building materials rising 40% to 50% cost in 2020 never going down again
Has nothing to do with people not listing their homes, eh? Commodities prices will always fluctuate. Construction supplies are getting more expensive because a) people aren't listing their homes so people are building instead and b) lots of people are working from home so there's a construction boom due to renovations. These are temporary circumstances though. Prices won't stay high forever.
Clickbait
OMG 😍💋 💝💖❤️
Stop doing that swoosh on your videos it’s irritating.
Says someone with 10 subscribers lmao 😂
@@jayroller7054 you don’t need subscribers to have an opinion.