AirBNB is what has been driving this market for the past 5-6 years, due to low interest rates. Now that interest rates are rising there is going to be a flood of people trying to unload them because at these rates the economics of purchasing a house for ABNB rental does not work.
I can't tell you how many houses I've looked at: *That were bought in 2020 and are now for sale at double (or more) than the price the seller paid, without a single improvement; *How many houses I've looked at that have been on the market for 6+ months without a price reduction Fine, let the house sit unsold--because the supply of suckers who will overpay for a house is finite and almost exhausted I've seen houses that were realistically priced and they sold almost immediately. No one is asking sellers to give away their houses--I wouldn't--but the sheer greed of some folks is just unbelievable.
Same case here in TN. People bought 3b 2b 2 car garage 2000sq ft homes in 2020 for 200k and are asking 400k right now and they are all sitting for 100 plus days on market. Some are pulling off market for 10 days and reposting at 395k. Absurd.
I’ve seen a lot of properties and realtors play that game with taking it off the market and then relisting it as “new” with a lower price. I always look back at the history.
@@worndown8280 Prices are declining and rates are rising. Any seller holding out for an improvement in the market will be waiting a long time. It's becoming a buyer's market--not quite yet but we're moving that way.
If there's one thing i can't stand it's con men. They are running rampant these days. You are a huge breath of fresh air Michael and i appreciate your honesty and hard work. Let's get Michael to a 100k subs people!
When we purchased our home years ago, the owner sat in the living room the whole time. It makes it hard to talk and really look at everything. Went back for a second walk through and she was there. Why doesn’t the realtor tell the owners to leave during showings!
I dont see the problem if the owner is there really if anything you can ask them direct as many things as you want about the property which the agent wont know… if anything seller might give you a more honest answer than a slick agent giving a sales pitch and prettying everything up… ultimately its up to buyer to sift through all the chatter and decide with no pressure if they will buy or not
I put my house on the market in Oct, 2022, around. I listed it at 45k less than what it was at the height of the market. First offer, I accepted and bailed. People need to get realistic and get OUT before they're stuck. Rent for awhile and wait.
If it was me I would have never sold it. I probably would’ve rent it out. Not only it cost you money to sell and all that money you made will go straight to rent. It will be more expensive to buy in the future because of higher interest rate. Good luck to you.
I completely agree this is a major under reported statistic. With 60 million Americans older than 65 in America, we are going to see a massive surge in inventory over the decades as they die.
I feel like new construction homes will pave the way for future homebuyers, especially for first time buyers. Existing home sellers are still living in lala land and think they can get summer 2022 peak home prices.
Not true. Developers price their new builds based on the existing market in that area around the development, and may even add a premium on new builds.
MIKE!!! There's a house across the street from me; this house has changed hands countless times and even at a serious loss. Yet, the current sellers are essentially trying to double their money. Mike, this house changes hands so much you'd think it was haunted. It's pure delusion!
I saw a house like that once. Sold eight times in five years. In the country in Kansas, on a couple of acres. Turns out there was an entire family of big time meth dealers in the area who kept running each new owner out. House finally burned down because of arson. No one arrested for the arson.
As a realtor I can tell you the level of delusion amongst many sellers is beyond belief. The arrogance is disgusting. Really shaken my faith in humanity!
It’s still amazing how many people don’t have any idea of today’s real estate market. They will find out the hard way. But it still amazes me how many people have no idea how bad this economy is. I’m so looking forward to investing at the right time. Realtors really need to be HONEST with their customers. Thank you Michael Blessings, Carlos ✝️🙏❤️😊❗️
I'm getting ready to sell one of my houses. And I have everything new and spotless. I can't believe some of the pictures I see on the listing. People's nasty dishes, litter boxes, unmade beds etc and asking crazy high prices. GROSS
I’m neither looking to buy or sell, but am guaging rennos by current sales. I am shocked at carpet in the kitchen and bathroom, highwater curtains, puke paint colors, boob lights in 20 yr old homes, obvious roof issues, dirty pavement, mouthwash on the counter, raised toilet seats, 1/2 empty water bottles on dressers, builder grade appliances in 20 yr old homes, obvious DIY projects. . . I understand not having money to do rennos, but taking photos that are unflattering and point out problems?? This is the listing. I can’t imagine what the house looks like in person.
I agree. We've looked at a lot of houses and some of the photos are insane. I would be having a hard conversation with my agent if my homes listing had photos as bad as some of them I've seen. On the other hand a lot of sellers don't pick up anything, place is a disaster. Either way huge turnoff and they wonder why no one wants to buy it.
Following you from Sweden, and i just wait for the market going down here to. We have the exact same problem. Am glad i sold my big house 1.5 years ago and downsized to a tiny house in the woods. Keep up with your videos 👍
@@bananskillet you'll regret it from a purely financial perspective in 5 to 10 years when the value of the house or rental income potential is much higher if you're young If you're older it won't matter. But that's just my humble opinion which doesn't matter
I bought my house just north of Tampa in 2016 for 125k. Nice, simple, solid house built in 1963. Sold in April 2021 for 260k. I saw the listing a couple of days ago. It's on the market now for 419k. The only things redone are the kitchen and new exterior paint. If some sucker pays that much for that house, well, then we know PT Barnum was correct. There's a sucker born every minute. One more thing. When I lived there, I complained that my property taxes had risen to 1400$ per year. Taxes on that same property are now over 4k per year. What a joke.
I don't feel sorry for sellers at all except the ones who bought at the peak. Most sellers are asking double, triple, quadruple what they paid for the house pre 2017. I hope prices drop to pre-pandemic levels. That's the one good thing the Feds are doing right, jacking up interest rates to force prices down. Low interest rates are great, but because many people only look at the monthly mortgage payment it caused prices to skyrocket.
But keep in mind that even sellers selling at double price will buy their replacement home at double the price and with a Highest interest so really nobody is winning this crazy high price race
I bought early 2021 before the increases (studio apt in Downtown Miami) and just sold it, not happy with HOA and unffordavility of everything. Originally bought for $176k from an incestor who just wanted to get rid of it and just sold it of $290k, 42nd floor ocean view. Mine was the best I would say and cheapest out of the whole building, there's so many people asking over 330k 20 floors down without a good view, just sitting there, studios as well...
Normally I would say "a year ago" is a benchmark for this year. But the last two years was absolute bananas. That was a fluke that was actually terrible for the longevity for the housing market. The next two years will be all about market correction.
Cheap money plus a momentary demand spike, the two largest generations in American history, the boomers and the millennials, being in the housing market at the same time, this was bound to happen. As the boomers start to exit in mass, about 30% of them already have, real estate prices will begin a very long decline. There is only 1 zoomer for every 2 boomers. There just wont be enough demand. Not at least until Gen Alpha hits the stage, but that is about 25 years from now. And we dont know the size of their cohort yet.
Things in North Jersey are still crazy. Extremely low inventory with most homes going 5-10% over asking if not more. EVERYTHING is getting a long list of multiple offers.
You are so right that most of the people who inherit these wonderful homes will probably sell them and move into a smaller, more manageable place. Beautiful neighborhood. Love that pastel colored bridge and the causeway. So peaceful!
I just sold a home in St Pete. I started high to test the market, reduced after 3 months, and finally was under contract with 2 offers. The house was staged and looked great. I made another concessions after the inspection, and I still feel fine about it. I'm officially a hobo, visiting all the people who came to see me in Florida. 🤣 I'm going to keep doing it or rent until the market corrects.
I think most everyone likes to be in their homes till they go. But when you get to a point that everything becomes a burden and you won’t be able to even pay bills or write checks then you just want a simple room with no responsibility. Oh well. Life goes on. 🙏🏼😊
@@wormhole-r3l bought my house in 1987 for $190k. Two years later it was worth $140k. And that doesn't include the realtor commissions if I wanted to sell. Had a friend who bought his house in 2005 for a little over a million dollars. Sold it 14 years later for $835k. Again, that doesn't include commissions and all the money he put into it. Remember that when it comes to real estate national statistics are pretty much useless.
@@Corkfish1 yeah but if you just held through it, you could've still doubled your money. Although I realize that's a long time but that's what real estate is, a long game. But yeah anything is possible.
@@wormhole-r3l no doubt about it. But it does affect the annualized return. I owned the house for 32 years and eventually it did recover. But because the first 15 years it did nothing if you annualize the return it comes out to about 1% a year. Since I bought near the top it didn't even keep pace with inflation. That wasn't the worst part. The part that bothered me was that in the face of bidding wars I bought something I didn't even like. I settled and was then stuck there for over a decade while I saw nicer properties starting to sell for less than what I paid for mine!
I was at a housing center in NE Florida last week and the realtor there also deals with existing homes and she said sellers were delusional about home values. The housing center was a ghost town and the builder was offering various specials. I live in Palm Beach seeking alternatives but I have to see much more than what I am seeing.
There's a "decent" home in Ashland, Ohio where I'm from. 3 beds, 1 bath 2-story with 2.5 acres and the asking price is 429,000. I looked up the auditor information and it was purchased for 72,000 dollars about 8 years back. It's insanity
Instead of a pushy seller, we had the opposite experience. It wasn't until we moved in that we met the seller and discovered that ... he lived next door. They had lived in or had family members living in our house for more than 50 years, but they assured us that they weren't going to glare at us if we cut down an old tree, or whatever. They've actually been great neighbors. No complaints, at all.
I remember 5 years ago when I purchased my home I went trough 4 realtors and even tho I explained to them what I was looking for, NONE of them got the message, they kept sending me a big list of MLSs that did not fit my budget or what I asked. Until I sat down for a couple of days, did my own research, found the house and in a month period purchased it. These Realtors lost that commission and yes the house sold itself cus it was what I wanted and needed no realtor required.
Sales seem to be continuing by me but we do have what I consider a limited supply of homes. On the other side of the coin, I'm starting to see a number of price reductions starting to populate the listings. Those price reductions were rare three months ago.
What is happening now is what happened in 2007-2008. Market froze because sellers were asking too much and Fed finally rose rates after 9/11 low interest rates. Then the housing decline of 2008 occurred, when layoffs started.
Not true. 2007 and 2008 was a credit crunch where nobody wanted to lend money to invest, because the banks no longer trusted what they were being offered in collateral by the mortgage companies was worth what they were told. So they stopped lending money for mortgages. That's why interest rates went up, and that why it was called the Credit Crunch. You see, mortgage companies and banks actually sell on their mortgages by bundling them up in securities and sell them on to investors. In 2007, the investors were told that the bundled mortgages were low risk AAA, but in reality, subprime mortgages were inside those so called low risk securities. And when the economy slowed, the subprime mortgages defaulted, and only then did the investors find our that they were sold a pig in a poke. That meant they could no longer use those bundled mortgages as collateral for loans in the capital markets. There were so many poop sandwiches of bad loans wrapped in bundles with low risk loans, that the capital lenders stopped taking mortgage securities, and only wanted Treasury Bills. So basically investment banks stopped lending to each other. That meant a shortage of credit and higher interest rates, until the credit ran out. Basically Uncle Sam and every other central bank had to cosign the banking system, to persuade those with money to start lending again.
Mileage may vary. What I saw a lot of in 08-09 was the ARM meltdown. More specifically, banks were raising interest rates on people that couldn't afford it. Which lead to a mass number of foreclosures. Then came mass layoffs to finish off the survivors. Then came the snowball effect.
@@77jaycube69 ARMs and Flippers. Bank of America giving reverse ARM loans to illegals didnt help. After two to three years they just skipped back to Mexico with their buckets of cash they saved paying a 200 buck mortgage. My neighbors across the street from where I lived then did this in 2004. Hardest working people. Two brothers and a sister.
@Adventure West Why refinance an asset that is worth only half of what you bought it for? For most people it made financial sense to just walk away from it, considering some people but zero down. And thats what many did. Adding to jay cube's snowball effect.
That home I bought sat on the market for 2 years .. like thousands did .. again we are coming back to a time home prices are way out of line and a lot will have to sell well below appraisal price .
Michael you are sooo right ! We live in an affluent area and the inventory was always lower here because of the high demand for the school district…. There were these little carriage homes for 280 ! That when prices started going up people were willing to over bid for this community and in no time they sold for 450k 480k because in this area people were like ok I want a house and 480k is cheap compared to the 600k and up that people want. We tried to buy one and people were waiving inspections and buying above appraised values it was crazy. There are a lot of elderly people who live back there too so I am thinking when some pass away and I wonder if those who inherit the homes will sell lower in this market and drop the values of the other homes….
I've lived thru 3 housing crashes but in general, housing prices do go up. Issues are you have to sell at the correct market time. Pretty basic money concept! The young need to learn the #1 secret to success, SAVING!
That's boomer logic though, while saving is needed for success, proper investing wins, what's going on now is crazy and I feel for the folks that have been waiting for years, everyone who "saved" has been punished severely including myself
Oh that was the appraisal price 17 years ago .. but. Your right. The home is only worth what a buyer is willing to pay …. Never be afraid of a little work .
We looked at a house where the seller stayed for our tour. She was very unwelcoming and short with us. Found out later that her husband was divorcing her and she was being forced to sell in the settlement so she was mad. I’ll never forget….she called this room “the safari room”. And because there were a couple of additions, it was hard to know what was what. So I said….what else would u call this? Living room? Den? Family? She snapped…..it’s a safari room.
It’s all about timing with the market…..I bought and sold 5 properties….bought at the bottom of the market and sold at the top of the market….never lost any money and sold two properties on my own…
It amazes me how people are selling during a time like this. The best thing to do is hold on to the property especially if you have a cheap payment. Cheap payment means you don’t have to work hard.
There's a lot of people in their 20s that think because they have equity in their home, then the bank cannot foreclose on them when they go into default. Sadly they will be in for a rude awakening.
I thought that someone told me that you could miss a payment if you had made extra principal payments in the past. So I missed a month one time. The bank let me know quick that I owed a penalty fee and back interest. Doesn't matter how much you have in equity, they'll take it away first chance.
@@Chubbycat747 it's actually better for the bank if they know that they will get all their money + fees back than if they they can expect 80% on a 90% loan.
Hi Michael I have 3 friends who have 15 properties between them they have had enough of tenants and the stress and when the leases are up for renewal they are going to quit the market stress,, repairs and paperwork is getting worse. One Tennent had a large fish tank that leaked and water went into Flat below and the tenants insurance void the claim legal cost so far over $8,000 and repairs $15,000.
OK, Michael. I have a confession. Along with real estate, my guilty pleasure are cars. While you walk and talk, I'm obsessed with the cars. I find myself guessing make, model, and year. Then I realize I drifted from the engagement of your message that I slap myself 😆. 👍
You'd love Beverly Hills. Lot of exotic supercars, vintage cars there. I once saw the car from Back to the Future (the prop car) as it was going to an event (the driver was dressed like Doc Brown).
Boy, in S. FL, homeowners sure love to close in the original single-car garage and park the $60K Lexus in the driveway. I stopped counting, but the first 8 houses you walked by all had the garage closed in. I would never buy a house w/o a garage.
So I saw Florida beach land lots drop a lot but the drop is like 650,000 for 2 acres to 350,000 or 200,000 to 185,000 when I check the past history of the lot it sold for only 35,000 in 2017 or 48,000 in 2014
@@JohnJohnCrusher it’s not just those listings the entire Melbourne beach Cape Canaveral Merritt island Satellite beach area is 90% similar listings and histories while Palm Bay is like 25K to 50K now but bought for 5 or 10K a few years ago or longer I wanted to check out all of Brevard county. Saint Augustine is even worse
Wee have sold 4 homes in the last 6 years and your right we left the house when showing the house, but people and the agent take advantage and sit at my house talking for 20- 50 minutes while driving around waiting for them to leave, we had to throw a young agent out after 55 minutes, but staying in the house don't work.
Went to open houses in Wellington and royal palm beach, fl yesterday and there was multiple families looking at the same properties. I even counted FOUR separate families visiting the same property within 30 minutes of one another. The south Florida market is still very hot.
"A house is only worth what someone is willing to pay for it" let me correct that for you: "A house is only worth what someone is willing AND ABLE to pay for it" It's important not to leave the ABLE part out of it. The reason prices went up so much is because of the abnormal low rates and stimulus that temporarily made people ABLE to pay those high prices due to the lower monthly payment. Now that rates are closer to NORMAL (not abnormal 3%), monthly payments on those previous abnormal prices make buyers UNABLE to pay; thus nothing is selling. The only thing that needs to change is the prices. Of course it will take some time before sellers absorb this fact. Those who are serious about selling MUST reduce their price.
@Shutdown News Did you post this reply to the wrong comment? I'm scratching my head because I read it 3 times and I just can't see what it has to do with my comment.
@@JohnJohnCrusher He did earlier, but then he said at 5:01 "A home is never going to be worth more than what someone is willing to pay" That was the statement I was referring to.
My parents bought the house they lived in for 425,000$, it was sold in August 2022 for 1,200,000$. Now it's up on the market AGAIN for 870,000$. I will not buy a house in Canada or the United States. Cyprus, Bulgaria, Portugal, Malta - these places are beautiful, affordable, modern, friendly and REASONABLE.
I've seen people bring over market money to closing (even when financing). They wanted "that" property. I'd be interested to see how often that happens.
This is so true ! Now what will happen is that person who has to sell for family reasons will lower the price to get it sold and then it will become a comp for similar homes near by and they will have a drop in value and if those people bought homes a year ago they may have over bid to “win” the buy and if they want to move or sell for any reason they will very likely be under water now . ….
You are absolutely right here in Central FL homes are sitting on the market for over 100+ days because they are over price and the sellers are not budging, the realtors are not far behind either they still drinking that Kool-Aid
Another good tip for sellers. If you can move half of your stuff out when you stage. A less cluttered home looks better, looks bigger and sells faster.
The old real estate adage is “If you price a property properly at the start, you’ll make more than if you price it too high to start and have to lower it in order to sell” applies.
Even in Pinellas county, the prices are due for a 35-40% adjustment downward. It’s completely absurd. 500k gets you a Fred Flintstone concrete block house with maybe a one car garage and 1400sqft. Don’t forget, you get to pay 2% in taxes which is 10k a year and 800 or so a month. How many working people can pay that let alone the 20% down?
Mind boggling to me as well why people are moving here in droves. What they won't be paying in state taxes they will make up in homeowners and auto insurance....not to mention property taxes.
Sooner or later, the real estate agent will come back to the seller, telling him or her that the house price must be reduced if the sale is to happen. In the end it comes down to: ''Do you want to sell or not''?
Hi Michael. South Florida as you well know is not affordable any longer, but yet condos are selling at a rapid pace. Well at least the ones in the 250k-350k price range. Most are all cash purchases.
Sold my house +76K over asking (with NO contingencies other than inspection - which was done 2 days after offer acceptance) in one day in a bidding war 2 weeks ago (one offer came in +101K - but they had contingencies). BUT - Inventory is low in my range, and with all the people fleeing NYC who don't want their kids to get mugged at school (and don't want to pay 60K a year for private school per kid) presents limited choices if they want to stay within 30 miles of NYC.
Price em right , was looking at homes on a lake in SC as a second home to move to in few years as retirement . I have seen exact home back on market that two years ago was 350k , there asking 525k after having on VBRO 2 years . No thanks
I paid for a new fridge by renting the box as a single family home. I have an efficiency apartments I made out of a copier boxes available starting at $999 per month. Don't complain about the raccoons or I'll charge a pet deposit.
Yes the industry is playing games. In Phoenix new home builders were doing 2-1 buy downs of the rate to sell homes, instead of lowering the price of homes. Those buyers will be in trouble in 2 years! I'm sure they were told the story that they can refinance in 2 years. Yeah, nobody told them about equity!🤔
Mobile Home Owner Evictions RAMPING UP! ruclips.net/video/kmjyLhe9go0/видео.html
All is good! Let the golden calf, melt!
First time to your channel, didn’t take me long to subscribe, you talk from your heart. No bs, or clickbait. Thank you from Alberta Canada
Once the Mortgage industry became a "market" it all went down hill fast.
AirBNB is what has been driving this market for the past 5-6 years, due to low interest rates. Now that interest rates are rising there is going to be a flood of people trying to unload them because at these rates the economics of purchasing a house for ABNB rental does not work.
I can't tell you how many houses I've looked at:
*That were bought in 2020 and are now for sale at double (or more) than the price the seller paid, without a single improvement;
*How many houses I've looked at that have been on the market for 6+ months without a price reduction
Fine, let the house sit unsold--because the supply of suckers who will overpay for a house is finite and almost exhausted
I've seen houses that were realistically priced and they sold almost immediately. No one is asking sellers to give away their houses--I wouldn't--but the sheer greed of some folks is just unbelievable.
Excellent comment as always, Daniel.
@@j4513 Michael says for every comment I write that gets 100+ likes, he'll send me a nickel.
@@Falconlibrary 😂😂 hahaha. Even at just a nickel a time, you’ll be wealthy in no time! 😂
I’m thinking they missed their window. In AZ 2020 the prices were escalating so fast, a house near me got flipped twice in about 18 months.
Same case here in TN. People bought 3b 2b 2 car garage 2000sq ft homes in 2020 for 200k and are asking 400k right now and they are all sitting for 100 plus days on market. Some are pulling off market for 10 days and reposting at 395k. Absurd.
I’ve seen a lot of properties and realtors play that game with taking it off the market and then relisting it as “new” with a lower price. I always look back at the history.
Its a stupid trick that any half savvy buyer can figure out
Also notice how few homes for sale post a sign outside anymore.
Yeah they play games to make a house on market for 20 days now show “new listing” when I saw it on Zillow 3 weeks ago.
i see this all the time, very stupid.
Just saw so many listed in Austin Texas 😂😂😂 they think they are slick and some even higher priced than when they took it off
Sellers still don't realize that the buyers are gone.
Sellers think it's 2021 and buyers think it's 2024
@@Falconlibrary indeed, but buyers can generally wait, sellers dont always have that option.
Depends on the area
@@worndown8280 Prices are declining and rates are rising. Any seller holding out for an improvement in the market will be waiting a long time. It's becoming a buyer's market--not quite yet but we're moving that way.
@@Falconlibrary yup I agree
Michael, you are speaking truth to the masses like no one else. Are people listening? This insanity has to stop.
We are listening and staying informed
People are only listening to their bottom line. And the bottom line is shifting. Wether they want it to or not.
Well. We have bidding wars here in California
If there's one thing i can't stand it's con men. They are running rampant these days. You are a huge breath of fresh air Michael and i appreciate your honesty and hard work. Let's get Michael to a 100k subs people!
When we purchased our home years ago, the owner sat in the living room the whole time. It makes it hard to talk and really look at everything. Went back for a second walk through and she was there. Why doesn’t the realtor tell the owners to leave during showings!
I’m sure they do tell the owners to leave….stubborn sellers that think they know better
Ugh that's really cringe. Talk about a major turnoff.
I dont see the problem if the owner is there really if anything you can ask them direct as many things as you want about the property which the agent wont know… if anything seller might give you a more honest answer than a slick agent giving a sales pitch and prettying everything up… ultimately its up to buyer to sift through all the chatter and decide with no pressure if they will buy or not
Politely point out all of the flaws within earshot of the owner, and then use them as part of your negotiating tactics.
I put my house on the market in Oct, 2022, around. I listed it at 45k less than what it was at the height of the market. First offer, I accepted and bailed.
People need to get realistic and get OUT before they're stuck. Rent for awhile and wait.
He who panics first, panics best 👍
If it was me I would have never sold it. I probably would’ve rent it out. Not only it cost you money to sell and all that money you made will go straight to rent. It will be more expensive to buy in the future because of higher interest rate. Good luck to you.
@@life_of_riley88 Huh?
@@PEYPLACE It's just an old saying about how to recognize that you're selling at a good time. Sounds like you accomplished that!
First man in the life boat may not have all his possession, but he has the most important one, himself.
I completely agree this is a major under reported statistic. With 60 million Americans older than 65 in America, we are going to see a massive surge in inventory over the decades as they die.
Absolutely
Yeah, I would wait for that buying opportunity. Unfortunately, I’ll be one of the dead ones.
I'm 62 and already my townhouse is too big for my needs. But I'll rent it out before I sell during these times.
Yes, apart from those who leave their properties for their families
@@geraldcroft9020 😂😂😂
I feel like new construction homes will pave the way for future homebuyers, especially for first time buyers. Existing home sellers are still living in lala land and think they can get summer 2022 peak home prices.
Not here in Miami. Majority of new construction is luxury condos catered to the 55+ community.
Open your eyes and look around our country. The Bible says it all 🇺🇸✝️
Not true. Developers price their new builds based on the existing market in that area around the development, and may even add a premium on new builds.
New builds in las Vegas are smoking crack right now, still lot premiums little to no drop on prices.
Thanks Janice, nicely done!!
Funny how people can handle prices going up but cant comprehend them going down.
MIKE!!! There's a house across the street from me; this house has changed hands countless times and even at a serious loss. Yet, the current sellers are essentially trying to double their money.
Mike, this house changes hands so much you'd think it was haunted.
It's pure delusion!
I saw a house like that once. Sold eight times in five years. In the country in Kansas, on a couple of acres.
Turns out there was an entire family of big time meth dealers in the area who kept running each new owner out.
House finally burned down because of arson. No one arrested for the arson.
If Zillow was so confident in their forecast why did THEY stop buying homes?
Good point
they stopped buying because that was a money losing strategy
If you're gonna confuse the narrative with facts, I'm afraid we'll have to ask you leave, ma'am.
They stopped buying houses cuz property management is expensive, and nearly impossible on an industrial scale, forecasts be dammed.
As a realtor I can tell you the level of delusion amongst many sellers is beyond belief. The arrogance is disgusting. Really shaken my faith in humanity!
It’s called greed
Realitor greed also caused buyers to panic buy at the worst time possible!
@Jun Serafin Where does it say that in the Constitution?? Foreigners somehow think we tax payers owe them a home??? AND a car??
I think that about Realtors....worst people in the world.
To me a realtor is almost as bad as a lawyer or politician, to talk of humanity.
It’s still amazing how many people don’t have any idea of today’s real estate market.
They will find out the hard way.
But it still amazes me how many people have no idea how bad this economy is.
I’m so looking forward to investing at the right time.
Realtors really need to be HONEST with their customers.
Thank you Michael
Blessings, Carlos ✝️🙏❤️😊❗️
I'm getting ready to sell one of my houses. And I have everything new and spotless. I can't believe some of the pictures I see on the listing. People's nasty dishes, litter boxes, unmade beds etc and asking crazy high prices. GROSS
I’m neither looking to buy or sell, but am guaging rennos by current sales. I am shocked at carpet in the kitchen and bathroom, highwater curtains, puke paint colors, boob lights in 20 yr old homes, obvious roof issues, dirty pavement, mouthwash on the counter, raised toilet seats, 1/2 empty water bottles on dressers, builder grade appliances in 20 yr old homes, obvious DIY projects. . . I understand not having money to do rennos, but taking photos that are unflattering and point out problems?? This is the listing. I can’t imagine what the house looks like in person.
I agree. We've looked at a lot of houses and some of the photos are insane. I would be having a hard conversation with my agent if my homes listing had photos as bad as some of them I've seen. On the other hand a lot of sellers don't pick up anything, place is a disaster. Either way huge turnoff and they wonder why no one wants to buy it.
@@Fuzzmom903 Most people live like pigs and their homes reflect it.
Great job!! You are one of few willing to speak the real truth without hesitation.
Following you from Sweden, and i just wait for the market going down here to. We have the exact same problem. Am glad i sold my big house 1.5 years ago and downsized to a tiny house in the woods. Keep up with your videos 👍
Thanks Mallen! Nice to hear from you all the way from Sweden!
You'll regret it
@@pearlperlitavenegas2023 well i dont regret anything because my old house is worth 100k less today. Sold at the top because i saw it coming.
@@bananskillet you'll regret it from a purely financial perspective in 5 to 10 years when the value of the house or rental income potential is much higher if you're young If you're older it won't matter. But that's just my humble opinion which doesn't matter
Snow.😎
I bought my house just north of Tampa in 2016 for 125k. Nice, simple, solid house built in 1963. Sold in April 2021 for 260k. I saw the listing a couple of days ago. It's on the market now for 419k. The only things redone are the kitchen and new exterior paint. If some sucker pays that much for that house, well, then we know PT Barnum was correct. There's a sucker born every minute. One more thing. When I lived there, I complained that my property taxes had risen to 1400$ per year. Taxes on that same property are now over 4k per year. What a joke.
Same here, sold in 2021, taxes 6k, new owner 13k.
Thats what happens when your city or town is listed as a top 10 place to move to.... The Transplants destroy it....
Has the home sold? Update?
I imagine it has…
@@ricksmith4736 Yup, my town is currently experiencing that.
CAn you go back to New York?
I don't feel sorry for sellers at all except the ones who bought at the peak. Most sellers are asking double, triple, quadruple what they paid for the house pre 2017. I hope prices drop to pre-pandemic levels. That's the one good thing the Feds are doing right, jacking up interest rates to force prices down. Low interest rates are great, but because many people only look at the monthly mortgage payment it caused prices to skyrocket.
The ones who bought at the peak are the ones who enabled all this.
But keep in mind that even sellers selling at double price will buy their replacement home at double the price and with a Highest interest so really nobody is winning this crazy high price race
I bought early 2021 before the increases (studio apt in Downtown Miami) and just sold it, not happy with HOA and unffordavility of everything. Originally bought for $176k from an incestor who just wanted to get rid of it and just sold it of $290k, 42nd floor ocean view. Mine was the best I would say and cheapest out of the whole building, there's so many people asking over 330k 20 floors down without a good view, just sitting there, studios as well...
With all the low paying jobs that exist today. … Home prices have no way to go but down ! Unfortunately
Normally I would say "a year ago" is a benchmark for this year. But the last two years was absolute bananas. That was a fluke that was actually terrible for the longevity for the housing market. The next two years will be all about market correction.
It all seems planned…do you see it yet?
That house literally went up 10X in price in 23 years.
Something very wrong with that.
Cheap money creates asset bubbles. It's been that way since the days of the Roman Empire.
money printing
Cheap money plus a momentary demand spike, the two largest generations in American history, the boomers and the millennials, being in the housing market at the same time, this was bound to happen. As the boomers start to exit in mass, about 30% of them already have, real estate prices will begin a very long decline.
There is only 1 zoomer for every 2 boomers. There just wont be enough demand. Not at least until Gen Alpha hits the stage, but that is about 25 years from now. And we dont know the size of their cohort yet.
@@Falconlibrary It's just Miami being Miami
@@drscopeify Yeah, parts of California are like that--they're an international real estate market, which distorts things.
Things in North Jersey are still crazy. Extremely low inventory with most homes going 5-10% over asking if not more. EVERYTHING is getting a long list of multiple offers.
Who wants house in NJ , fuck noooo, you just stay there.
@@dennynisevic7848 ? You don’t even know me! Anyway….
Thanks Mich
You are so right that most of the people who inherit these wonderful homes will probably sell them and move into a smaller, more manageable place. Beautiful neighborhood. Love that pastel colored bridge and the causeway. So peaceful!
Love these sunny walks and talks. Thank you for your videos!
They should watch your videos, and learn..I sold my house in New Jersey in 11 days on Christmas week..because I listened to my realtor.😊
Please tell me you did NOT move to Florida??
@@ricksmith4736 🤣🤣🤣
I just sold a home in St Pete. I started high to test the market, reduced after 3 months, and finally was under contract with 2 offers. The house was staged and looked great. I made another concessions after the inspection, and I still feel fine about it. I'm officially a hobo, visiting all the people who came to see me in Florida. 🤣 I'm going to keep doing it or rent until the market corrects.
I think most everyone likes to be in their homes till they go. But when you get to a point that everything becomes a burden and you won’t be able to even pay bills or write checks then you just want a simple room with no responsibility. Oh well. Life goes on. 🙏🏼😊
I bought my house during a bubble and a year and half later it had dropped 25%
Bahahahaha
the fastest month over month declines i believe are 1% in during the 2008 crash
@@wormhole-r3l bought my house in 1987 for $190k. Two years later it was worth $140k. And that doesn't include the realtor commissions if I wanted to sell. Had a friend who bought his house in 2005 for a little over a million dollars. Sold it 14 years later for $835k. Again, that doesn't include commissions and all the money he put into it. Remember that when it comes to real estate national statistics are pretty much useless.
@@Corkfish1 yeah but if you just held through it, you could've still doubled your money. Although I realize that's a long time but that's what real estate is, a long game. But yeah anything is possible.
@@wormhole-r3l no doubt about it. But it does affect the annualized return. I owned the house for 32 years and eventually it did recover. But because the first 15 years it did nothing if you annualize the return it comes out to about 1% a year. Since I bought near the top it didn't even keep pace with inflation. That wasn't the worst part. The part that bothered me was that in the face of bidding wars I bought something I didn't even like. I settled and was then stuck there for over a decade while I saw nicer properties starting to sell for less than what I paid for mine!
I was at a housing center in NE Florida last week and the realtor there also deals with existing homes and she said sellers were delusional about home values. The housing center was a ghost town and the builder was offering various specials. I live in Palm Beach seeking alternatives but I have to see much more than what I am seeing.
There is only one reason that any properly marketed asset does not sell in a timely manner. And that is because it is over priced.
100%!
There's a "decent" home in Ashland, Ohio where I'm from. 3 beds, 1 bath 2-story with 2.5 acres and the asking price is 429,000. I looked up the auditor information and it was purchased for 72,000 dollars about 8 years back. It's insanity
Instead of a pushy seller, we had the opposite experience. It wasn't until we moved in that we met the seller and discovered that ... he lived next door. They had lived in or had family members living in our house for more than 50 years, but they assured us that they weren't going to glare at us if we cut down an old tree, or whatever. They've actually been great neighbors. No complaints, at all.
I remember 5 years ago when I purchased my home I went trough 4 realtors and even tho I explained to them what I was looking for, NONE of them got the message, they kept sending me a big list of MLSs that did not fit my budget or what I asked. Until I sat down for a couple of days, did my own research, found the house and in a month period purchased it. These Realtors lost that commission and yes the house sold itself cus it was what I wanted and needed no realtor required.
Sales seem to be continuing by me but we do have what I consider a limited supply of homes. On the other side of the coin, I'm starting to see a number of price reductions starting to populate the listings. Those price reductions were rare three months ago.
My brother is a real estate appraiser. He is still in denial that home prices are falling.
What is happening now is what happened in 2007-2008. Market froze because sellers were asking too much and Fed finally rose rates after 9/11 low interest rates. Then the housing decline of 2008 occurred, when layoffs started.
Not true. 2007 and 2008 was a credit crunch where nobody wanted to lend money to invest, because the banks no longer trusted what they were being offered in collateral by the mortgage companies was worth what they were told. So they stopped lending money for mortgages. That's why interest rates went up, and that why it was called the Credit Crunch. You see, mortgage companies and banks actually sell on their mortgages by bundling them up in securities and sell them on to investors. In 2007, the investors were told that the bundled mortgages were low risk AAA, but in reality, subprime mortgages were inside those so called low risk securities. And when the economy slowed, the subprime mortgages defaulted, and only then did the investors find our that they were sold a pig in a poke. That meant they could no longer use those bundled mortgages as collateral for loans in the capital markets. There were so many poop sandwiches of bad loans wrapped in bundles with low risk loans, that the capital lenders stopped taking mortgage securities, and only wanted Treasury Bills. So basically investment banks stopped lending to each other. That meant a shortage of credit and higher interest rates, until the credit ran out. Basically Uncle Sam and every other central bank had to cosign the banking system, to persuade those with money to start lending again.
Mileage may vary. What I saw a lot of in 08-09 was the ARM meltdown. More specifically, banks were raising interest rates on people that couldn't afford it. Which lead to a mass number of foreclosures. Then came mass layoffs to finish off the survivors. Then came the snowball effect.
@@77jaycube69 ARMs and Flippers. Bank of America giving reverse ARM loans to illegals didnt help. After two to three years they just skipped back to Mexico with their buckets of cash they saved paying a 200 buck mortgage.
My neighbors across the street from where I lived then did this in 2004. Hardest working people. Two brothers and a sister.
@Adventure West Why refinance an asset that is worth only half of what you bought it for? For most people it made financial sense to just walk away from it, considering some people but zero down. And thats what many did. Adding to jay cube's snowball effect.
@@worndown8280 yes and you can't refinance in that case. refinance is a new mortgage that the bank actually has to want to take on
That home I bought sat on the market for 2 years .. like thousands did .. again we are coming back to a time home prices are way out of line and a lot will have to sell well below appraisal price .
Michael you are sooo right ! We live in an affluent area and the inventory was always lower here because of the high demand for the school district…. There were these little carriage homes for 280 ! That when prices started going up people were willing to over bid for this community and in no time they sold for 450k 480k because in this area people were like ok I want a house and 480k is cheap compared to the 600k and up that people want. We tried to buy one and people were waiving inspections and buying above appraised values it was crazy. There are a lot of elderly people who live back there too so I am thinking when some pass away and I wonder if those who inherit the homes will sell lower in this market and drop the values of the other homes….
I could buy now. I won't just to spite builders and sellers.
Same:) the builder won’t budge. I’ll wait.
I've lived thru 3 housing crashes but in general, housing prices do go up. Issues are you have to sell at the correct market time. Pretty basic money concept! The young need to learn the #1 secret to success, SAVING!
That's boomer logic though, while saving is needed for success, proper investing wins, what's going on now is crazy and I feel for the folks that have been waiting for years, everyone who "saved" has been punished severely including myself
Man, you’re spot on, love you’re insight!
Oh that was the appraisal price 17 years ago .. but. Your right. The home is only worth what a buyer is willing to pay …. Never be afraid of a little work .
Great vid. Nice shades too. The pulse of the market.
these sunny walks are soulfood bro
My kids don't stand a chance. They'll have to wait until I kick the bucket and inherit my house. Out of control.
We looked at a house where the seller stayed for our tour. She was very unwelcoming and short with us. Found out later that her husband was divorcing her and she was being forced to sell in the settlement so she was mad. I’ll never forget….she called this room “the safari room”. And because there were a couple of additions, it was hard to know what was what. So I said….what else would u call this? Living room? Den? Family? She snapped…..it’s a safari room.
😂 that’s funny!
I don't know why agents are still playing with the price and relisting. Anyone can see the old sales and price history.
It's probably due to pain in the ass clients that are suffering from a mental problem...
It’s all about timing with the market…..I bought and sold 5 properties….bought at the bottom of the market and sold at the top of the market….never lost any money and sold two properties on my own…
Yep, declining rapidly
It amazes me how people are selling during a time like this. The best thing to do is hold on to the property especially if you have a cheap payment. Cheap payment means you don’t have to work hard.
My mortgage is 620 bucks a month only 3 more years until I pay it off. Loads of equity in my home that I hope I never have to tap into it.
@@zzbudzz You have loads of equity in your home. And you're not using that to gain more Money. . Shameful
There's a lot of people in their 20s that think because they have equity in their home, then the bank cannot foreclose on them when they go into default. Sadly they will be in for a rude awakening.
That's what makes it interesting for the bank - do people have that misconception.?
You might get to live out some of that equity and stay for a short time but they will take it if you default.
I thought that someone told me that you could miss a payment if you had made extra principal payments in the past. So I missed a month one time. The bank let me know quick that I owed a penalty fee and back interest. Doesn't matter how much you have in equity, they'll take it away first chance.
@@Chubbycat747 it's actually better for the bank if they know that they will get all their money + fees back than if they they can expect 80% on a 90% loan.
SUNDAY GREETINGS MICHAEL 😃🌴
Nice to see you Johnny!
For people with no knowledge of real estate and what is happening this Chanel would help them greatly.
Hi Michael I have 3 friends who have 15 properties between them they have had enough of tenants and the stress and when the leases are up for renewal they are going to quit the market stress,, repairs and paperwork is getting worse. One Tennent had a large fish tank that leaked and water went into Flat below and the tenants insurance void the claim legal cost so far over $8,000 and repairs $15,000.
OK, Michael. I have a confession. Along with real estate, my guilty pleasure are cars. While you walk and talk, I'm obsessed with the cars. I find myself guessing make, model, and year. Then I realize I drifted from the engagement of your message that I slap myself 😆. 👍
You'd love Beverly Hills. Lot of exotic supercars, vintage cars there. I once saw the car from Back to the Future (the prop car) as it was going to an event (the driver was dressed like Doc Brown).
Boy, in S. FL, homeowners sure love to close in the original single-car garage and park the $60K Lexus in the driveway. I stopped counting, but the first 8 houses you walked by all had the garage closed in. I would never buy a house w/o a garage.
Thanks for the video, very informative.
So I saw Florida beach land lots drop a lot but the drop is like 650,000 for 2 acres to 350,000 or 200,000 to 185,000 when I check the past history of the lot it sold for only 35,000 in 2017 or 48,000 in 2014
So greedy! What makes someone feel so entitled to appreciation like that?
@@JohnJohnCrusher it’s not just those listings the entire Melbourne beach Cape Canaveral Merritt island Satellite beach area is 90% similar listings and histories while Palm Bay is like 25K to 50K now but bought for 5 or 10K a few years ago or longer I wanted to check out all of Brevard county. Saint Augustine is even worse
@@JohnJohnCrusher I even saw someone expecting 90,000 for a 1 acre lot in Palatka Florida you couldn’t pay me to live in Palatka 🤣
Wee have sold 4 homes in the last 6 years and your right we left the house when showing the house, but people and the agent take advantage and sit at my house talking for 20- 50 minutes while driving around waiting for them to leave, we had to throw a young agent out after 55 minutes, but staying in the house don't work.
Went to open houses in Wellington and royal palm beach, fl yesterday and there was multiple families looking at the same properties. I even counted FOUR separate families visiting the same property within 30 minutes of one another. The south Florida market is still very hot.
"A house is only worth what someone is willing to pay for it"
let me correct that for you:
"A house is only worth what someone is willing AND ABLE to pay for it"
It's important not to leave the ABLE part out of it. The reason prices went up so much is because of the abnormal low rates and stimulus that temporarily made people ABLE to pay those high prices due to the lower monthly payment. Now that rates are closer to NORMAL (not abnormal 3%), monthly payments on those previous abnormal prices make buyers UNABLE to pay; thus nothing is selling. The only thing that needs to change is the prices. Of course it will take some time before sellers absorb this fact. Those who are serious about selling MUST reduce their price.
Um, that actually what he said. Listen again
@Shutdown News Did you post this reply to the wrong comment? I'm scratching my head because I read it 3 times and I just can't see what it has to do with my comment.
@@JohnJohnCrusher He did earlier, but then he said at 5:01 "A home is never going to be worth more than what someone is willing to pay"
That was the statement I was referring to.
Agreed. Rates of 3% are not normal snd shouldn't be normal.
My parents bought the house they lived in for 425,000$, it was sold in August 2022 for 1,200,000$. Now it's up on the market AGAIN for 870,000$.
I will not buy a house in Canada or the United States. Cyprus, Bulgaria, Portugal, Malta - these places are beautiful, affordable, modern, friendly and REASONABLE.
You were the first person I heard the buzz word Denial that was epic statement last year
That's tough love Mike.
I've seen people bring over market money to closing (even when financing). They wanted "that" property. I'd be interested to see how often that happens.
NAILED IT ON ELDERLY. RESPECT YOUR HONESTY!
This is so true ! Now what will happen is that person who has to sell for family reasons will lower the price to get it sold and then it will become a comp for similar homes near by and they will have a drop in value and if those people bought homes a year ago they may have over bid to “win” the buy and if they want to move or sell for any reason they will very likely be under water now . ….
People working remotely are also more likely to get axed. It's all going to backfire.
I usually just sit on the couch and eat potato chips in my underwear when I have a house showing.
😆😆
You sound like a motivated seller👍
These days, you would get more people interested if you wore the opposite gender's underwear...
@@RealCptHammonds 😂😂
O that's the definition of " motivated seller"@@SithBladez
People often buy in for the wrong reason, namely fear of being "left out."
FOMO
Good insights. Followed.
You are absolutely right here in Central FL homes are sitting on the market for over 100+ days because they are over price and the sellers are not budging, the realtors are not far behind either they still drinking that Kool-Aid
I agree with you
Another good tip for sellers. If you can move half of your stuff out when you stage. A less cluttered home looks better, looks bigger and sells faster.
You are a beacon of enlightenment is a world where everything is a line of "malarkey".
Love your videos!
The old real estate adage is “If you price a property properly at the start, you’ll make more than if you price it too high to start and have to lower it in order to sell” applies.
Even in Pinellas county, the prices are due for a 35-40% adjustment downward. It’s completely absurd. 500k gets you a Fred Flintstone concrete block house with maybe a one car garage and 1400sqft. Don’t forget, you get to pay 2% in taxes which is 10k a year and 800 or so a month. How many working people can pay that let alone the 20% down?
Sold our house in metro Philadelphia for 92% of bubble high and 96% of listing price. We were NOT the norm and were extremely LUCKY.
Mind boggling to me as well why people are moving here in droves. What they won't be paying in state taxes they will make up in homeowners and auto insurance....not to mention property taxes.
It seems like homes in million dollar neighborhoods would at least have curbed streets? Or is there something I am not aware of? Thanks.
yep and no security or gated entry ways...there are apartment complexes more secure
People don't understand that realtors are not magicians. They can't sell your house over the market price.
Sooner or later, the real estate agent will come back to the seller, telling him or her that the house price must be reduced if the sale is to happen. In the end it comes down to: ''Do you want to sell or not''?
Hi Michael. South Florida as you well know is not affordable any longer, but yet condos are selling at a rapid pace. Well at least the ones in the 250k-350k price range. Most are all cash purchases.
THIS is just the beginning ... wait till next year
Dude please let it be so!
I'm still concerned, however, something will derail this derailment. Fed cutting rates prematurely for example
there's absolutely no inventory in the NE, and everything under 500k in Florida is selling just fine
Sold my house +76K over asking (with NO contingencies other than inspection - which was done 2 days after offer acceptance) in one day in a bidding war 2 weeks ago (one offer came in +101K - but they had contingencies). BUT - Inventory is low in my range, and with all the people fleeing NYC who don't want their kids to get mugged at school (and don't want to pay 60K a year for private school per kid) presents limited choices if they want to stay within 30 miles of NYC.
thanks for good english lessons :-) Greetings from Poland.
Price em right , was looking at homes on a lake in SC as a second home to move to in few years as retirement . I have seen exact home back on market that two years ago was 350k , there asking 525k after having on VBRO 2 years . No thanks
Pasadena and San Marino, CA
Man check the market in Tampa, everything is selling fast. What’s happening? Should I wait or buy now?
I paid for a new fridge by renting the box as a single family home.
I have an efficiency apartments I made out of a copier boxes available starting at $999 per month. Don't complain about the raccoons or I'll charge a pet deposit.
Is that cardboard box in a good school district?
Shut up and take my money!
That stock for home purchase opinion is so right on. It is for the stupid almost like getting a reverse mortgage and running out of RM money.
Are you familiar with the HECM line of credit growth feature?
Yes the industry is playing games. In Phoenix new home builders were doing 2-1 buy downs of the rate to sell homes, instead of lowering the price of homes. Those buyers will be in trouble in 2 years! I'm sure they were told the story that they can refinance in 2 years. Yeah, nobody told them about equity!🤔
Aww you have 70k subscribers now 🎉
Another great video Michael. Interesting and informative.
Everything was flying off the shelfs till now… they we’re buying in a hurry before interest hitting 7%. Sellers, brace yourself now