I still blame the FEDs for this, because in the end they benefit by either buying off the failed banks cheaper or something. The fed can print credit as long as someone will borrow it into existence, but they cannot print product (or production).
People are going through real life crisis, think now isn't a time to point fingers. Everyone should always be prepared for the unexpected to happen. That is how randomness works.
You're right! Now that the market is in decline, I know what I want to do, but I'm not sure which stocks to buy, which investments would yield the best profits, etc. The potential gain is greater due to the risk, and professionals are better at negotiating such exact contracts. Right?
Very true, I started investing in 2018 with no prior knowledge or expertise, and by the end of 2019 I had earned a profit of approximately $750k. I had simply been following the guidance provided to me by my financial adviser. This shows that you don't even need to be a great investor or put in a lot of effort; all you actually need is a professional to help you.
My Financial adviser is ‘’JULIE ANNE HOOVER’’ she’s highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market
I remember in 2007 when I was working in real estate seeing people buy homes new from builders with the intention of selling before close of escrow to a new buyer for profit. The crash was so brutal and fast that I remember seeing a lot of these units foreclosed on with the builder plastic still on the carpet.
Because they are accustomed to bull markets, most people find it difficult to handle a decline, but if you know where to search and how to manoeuvre, you may earn handsomely. Yes, depending on how you want to enter and leave.
Using a portfolio adviser for a well-defined plan, the long-running US stock market bull run has produced $780k in returns over the last ten months, a combination of exhilaration and dread.
Do your due diligence and opt for one that has tactics to help your portfolio continue consistent and steady growth. “Vivian Carol Gioia” is accountable for the success of my portfolio, and I believe she has the qualifications and expertise to accomplish your objectives.
11 years ago we qualified for $400k+ , we made sure we didn’t go over $265,000 when we built our home because we wanted to keep our expense ratio below 30%. This was the best financial decision we have ever made. Just because you qualify for X amount doesn’t mean you should borrow it! The loan brokers and realtors don’t care if you go bankrupt in 2-3 years because they got their money and know they will never deal with most of their clients again.
It’s up to YOU to take on the amount of debt you think you need. It’s like a wrench. You are using leverage. Get it. No one WANTS you to fail. That’s not the best case scenario. Best case is you take about 6-7 maybe 8 years of to pay the note the refinance or buy a new place so you stay at the front of the payment which is all interest.
They actually benefit when you dont make your payment and wind up selling the place. they get a commission nearly every time a transaction takes place these days. Even on the buyers end of things. they want to flip that house in the system as many times as possible.
Financial literacy should be taught to everyone at some place in their lives. I don’t expect universities to do it they’re too obsessed with pronouns and victimhood
@@pmscalisi This goes way beyond the current political climate in the universities. Financial literacy has intentionally NOT been a priority for decades. If people learned that borrowing money … especially for instant gratification was bad… then who is going to buy all that unnecessary stuff! I’m not saying people should not buy anything but essential goods, but buying stuff you don’t “need”… but want on credit is a terrible habit and the vast majority of people do it every day.
The fed literally said they want home prices to decrease back to reasonable levels. If we just cut rates, all the investors will snatch up all the inventory again
Higher rates will continue for longer. If you’ve been paying attention to what the fed is actually doing, you’ll see that they don’t care about squeezing literally everyone. They want it to all crumble like a house of cards ..
So you put a cap on how much a home can be sold or bought, and the real estate parasites will go elsewhere having no profit to be made off of a house(s)...
@@SAMSON12321 price fixing never solved anything. Tax regulations on the other hand greatly favor investing in real estate. Adjust the tax laws and the rest will resolve.
@@coconutwater4531 No, but it needs to be done, or everyone will quickly be right back into the same situation of houses being valued way more than they should with people being unable to afford and sellers unable to sell. Your house is where you live, so it has zero monetary value and yet is priceless at the same time. No one wants to be homeless. No more of a house/homes being like a block of gold to try and make the most profit off of.
I bought my house in 2018 and at that time I made roughly 40k a year (single dad) with no debt and was able to qualify for a 225k dollar house. Of course the house was 225k so I was a bit stretched. If those low interest rates hadn’t come in fall of 21 I was getting priced out due to Taxes. The house payment had gone from 1320,00 to over 1500 in those 3 years due to property taxes so that was about to price me out, that was about half my take home pay at that time. After I refinanced in 21 I got my payment down to 1013.00 but it’s already gone over 1100 in the last two years due to constant raises of my property taxes. So when you buy a house and you get your payment price a month remember even with a locked in rate it’s going up every year. In my case it was rapid and still is because of the area I live in. I am right next-door to Westport Crown center and the plaza here in Kansas City but I’m in the first line of suburbs next to those so this is a very attractive area with very low crime. Great talk as usual!
I hate that in 2018 someone only making 40k could buy a house and now days someone making 40k can’t rent a 1 bedroom apartment. Now it’s 60k to rent an apartment and 90-100k minimum to buy a house
Kansas City has become unaffordable so quickly, your very average Northeast Johnson County/West Plaza/Brookside/Waldo house is a luxury for the wealthy now. I am looking at Wyandotte County, not the area by KU Med either, while earning 60k. Gotta keep, renting the madness can't keep up. 500k for a 3/2 at 63rd and Holmes where you hear gunshots every night. 20 years ago you couldn't give away houses in Waldo. Who's paying these prices?
@@Natl.Acrobat It is insane I live in Roeland Park just over the hill from KU Med/Westport area and even that area is starting to look nicer so I’m sure they aren’t even that affordable anymore. I don’t know what’s happened to cause these spikes but I hope they self correct. The sad part is even if the prices reset to be more affordable you know they won’t lower the property taxes. Or I should say I’d be shocked if they did. I’m 49 so I’m rounding the corner of life and I can’t imagine what it feels like to be in your 20s or 30s and trying to start a family and live the dream and you can’t find a place to live without giving away 50% of your take home. My daughter is 13 and I worry for her all the time and how will she afford to ever buy a place? I guess that’s where I can hopefully help out. Even if you happen to find a place and it’s somewhat affordable that’s still not good enough because the minute you move in the HVAC or the roof or the plumbing is gonna fail and you better be able to tap into some savings (not retirement) but saving is nearly impossible when like you said rent is as high as it is. I swallowed my pride after I divorced and moved in with my parents with my 2 year old daughter and was able to save a lot over the 6 years I lived there. I have a few nieces and nephews that are doing what I did and are staying with family and banking their checks for as long as possible. If I had not had that option I wouldn’t be living in this house I’m in I’d be renting. Yea it was a blow to the ego but I knew long term if I was going to buy a house it was the only way. Best of luck friend!
I agree completely, when I bought my house in 2018, I had no clue that all of the prices would keep going up. Fortunately my late wife and I bought based off of only my income, and far below what we could afford, but still with a yard for our young son. It worked out, praise God. don't get greedy.
Jeez these entitlement minded Realtors and RE industry... They got used to slaying it and now they're whining when the door swings a little bit the other way?? They got addicted to an unsustainable market. And now can't take the withdrawal symptoms
The realtors thought that those 3% rates would last and they didn't see a bubble coming . They were to busy getting buyers to over bid the list price so they could get accepted contract. I hope they put money back for rainy days because they are going to see alot of them .
The fact that there is already an excessive amount of demand awaiting its absorption, despite how everyone is frightened and calling the crash, is another reason why it is less likely to occur that way. 2008 saw no one, at least not the broad public, making this forecast, as I'll explain below. The ownership rate was noted to have peaked in 2004 in the other comment. Having previously peaked in the second quarter of 2020, we are currently at the median level. Between 2008 and 2012, it dropped by 3%, and by the second quarter of 2020, it had dropped from 68 to 65.
"They" are agents, brokers, under writers, lenders and appraisers. Each group promotes the business of buying overvalued houses in order to steal money from buyers.
@@internetshopping1063he’s probably fed up being a realtor and venting that his job is impossible. He probably makes a good living on RUclips and he’s able to speak the truth because his incentives aren’t being dependent on selling houses all the time. Doesn’t have kids and invested all his money, funny how having money can break your chains and live free.
many of these realtors have had 10-15 years to rake in $. my cousin is a multimillionaire from being a loan officer/realtor. theyve made 10’s of thousands from us for very little work. i dont feel bad for them.
You need to become a realtor or mortgage broker to know that you have to work very hard to be successful. Your a independent contractor it takes a lot to sell a home people do not take the first house they see. It can take a few months of out of pocket expenses maybe a year. Plus my daughter was a mortgage broker you do your due diligent to help plus you need to feed your family but what happens when you can get through qualifying due to to much upside credit issues.
@@sandrahintz2617i know more than one realtor who told me when they started they just couldnt believe how much they got paid for basically a few hours of work. I guess eventually people like you will tell yourselves they deserve to get paid like that for whatever reasons or basically lies they tell themselves
I was a loan processor for big known banks. The loan agents did make good income but they did have to make a name for themselves especially customer service. The back end processors/underwriters work hard behind the scenes making the loan agents look good as well. You need a good team.
There is a newly built mcmansion near me. It sold for 900k as a new house in March 23’. It is October 23’ and they want 1.4 million for it. 900k is too much for the house. I hope it goes down to 400k and they loose 500k on it instead of gaining 500k from the sale 😒. It’s one of those nicely finished homes but not impressively large or large lot homes. Your typical 4 bed 4.5 bath homes with a 2 bay they’ve shoved onto a measly 6000 sqft lot. It’s worth 550k at most
My father's waterfall work traversed SD, southland and LA. Ventura to Riverside Palmdale and one in Santa Clara, Vegas Houston, Des Moines. Most those waterfalls are still running despite his 2000 yr exit. DOB 1912.
Interesting the National home builders are lobbying the Fed to not increase rates, but they refuse to lower their asking prices on new homes in Florida. As a 35-year Florida resident and homeowner I see what is going on here.
@@eattherich9215 there was no high cost of construction before that. There were just millions of assholes moving here that paid double of whatever the asking price was.
I'm sending letters to the feds BEGGING them to raise interest rates. I need home prices to drop back down to 1990's prices so that I can afford one. In 1995 I was trying to buy a nice 2 bedroom house for $39,000. I was making $45k back then. I'm making not much more than that now, so the feds are doing me a favor. I need a foreclosure crisis 5x worse than 2008. PLEASE FEDS! RAISE THE RATES!!! I AM BEGGING YOU! CRASH THIS MARKET HARD!!!!!! Get these prices down so $40k income earners can afford a home!!!!!
@@JohnJohnCrusher I'm with you man, I'm rooting for a huge crash. We really need massive deflation and a depression to makes things affordable again. The people mad about rooting for that are just selfish A-holes. It'll only hurt the bigs.
I'm making more than double your 40k and I'm waiting for a crash too. The prices are insane. I'd like to get a house with some land. As soon as you add two acres, it's hard to find anything nice under 400k or 500k. 300k is my limit. Mostly junky houses come up under 300k. Missing drywall. Roof leaks. Completely gutted. Stuff like that. I look at whole states too. Not just near cities. Michigan and New Hampshire
Great video, Michael. My neighbor is a realtor of 30 years and gives me frequent updates on the market. Last week she said "home prices are dropping and no one is buying, everywhere." For the past 7 years she's been saying housing prices are going up, you won't be able to buy if you wait, etc. Now I am wondering why this change? The majority of people I know who are way too overleveraged in real estate, in my opinion, have been saying the same thing: housing prices only go up. But the I think, who buys them? Me? No. Do they hope they only go up because of their investments? Interesting how people will tell you one thing, especially when they have something to gain from it, until they can't and it's obviously not true. Here we are. I had to tell my wife what my neighbor said about the housing market. I said this one social media and many people said it was a lie, realtors. I wonder what they have to gain.
because small and regional lenders understand that their potential mortgage holder needs to actually earn twice as much as three years ago to afford the same home, and they arent lending.
Being someone who has purchased well over 30 different kinds of properties I just have to say that THIS IS THE WORST TIME TO BUY A HOUSE 🏡. Be patient and there will be some amazing deals in the next year and a half. Blessings, Carlos ✝️🙏😊❤️🇺🇸
I've been hearing that for years now and all prices do is keep going up. They are up year over year still too and it's not the property appreciation either like people think but inflation in general.
@@ilyana503 both work, but unless the market is going to crash catastrophically, it's safer to get in early and rent out rooms to help with the mortgage. Once interest rates lower and houses stabilize, it won't just stabilize. It will jump up and you'll feel huge pressure to compete with others. You'll end up not saving as much as you hoped to just by timing the market and waiting. What a lot of people aren't factoring in is the huge wealth disparity in the US right now. Just because there are a lot of poor or middle class people complaining about unaffordability, doesn't mean there aren't plenty of fairly wealthy families that can buy dozens of properties to make up for those who can't afford it. Hell, even my family is able to buy several properties now.
End of the day, when people are sufficiently upside down on their mortgage/house, they'll walk. Jingle Mail (mailing the keys back to the bank). If I learned anything from the 08-09' GFC it's that for a certain number of "homeowners" housing is just another asset class, not a homestead where you want to live and raise a family.
THANK-YOU for calling it like it is! The real estate industry helped to push the home price to unaffordable levels; now the prices are simply too high to be within most family budgets. Agree the only way to fix this is for real estate prices to fall to levels affordable within family budgets. It is unfortunate that the economy will have to see a downturn for this to happen, but this is only in keeping with "this is what the market will bear" slogan sellers quote when asking high prices. We also need to keep in perspective the role investment realtors have played in outbidding potential homeowner/occupants... I hope the real estate investors will realize what they have done to the American dream, and reverse their aggressive purchasing. Otherwise, we need to start implementing negative economic pressures, like higher taxes on nonoccupant owners..
California only has 2 months' worth of supply. I need home prices to go down. I'm just not paying $3,000 a month for a 3 bedroom and an out-of-date kitchen.
There is something else going on in the real estate market, at least here in the North East. A lot of homes are selling above the asking price. That seemed odd to me. I looked into it a bit to see and I found several homes listed for say 400k and then selling for 440k. But if you look at the history in a lot of these cases, the home was listed, quickly, an offer was made starting the process and then BAM! someone comes in an offers a higher price. In most cases, that "someone" isn't a person but rather an "LLC", Limited Liability Corporation. So one has to ask, why are Corporations buying up single family homes above the asking price?
'... why are Corporations buying up single family homes above the asking price?' To turn them into rental machines and drive down supply as their bulging corporate wallet can vacuum up what comes to market.
Those l.l.c. Will be sorry later on . They are buying the hype , it happened in 2008 and we know what happened then . High rents and high prices won't last and those investors will be losing money because they think prices and rents are going up . Trust what Michael is saying he has laid it out there and those companies don't know something we don't know , they are greedy and suffering from fomo .
There has always been greed, but the greed now is ten fold. Real estate companies have become greedy and they are to blame also for the inflated home prices. They brag about how much money they made in one year but the middle class and under, can not compete or be a part of this market. They get wealthy and the middle class and under struggle. It’s not good.
Yup and that's part of the reason why inflation isn't going down and won't go down. The interest rate hikes are being countered by government over spending.
You are absolutely correct so many people have been capitalizing on totally unrealistic gains. Young average incoming or modest incoming citizens, really don’t belong in four bedroom four bathroom houses with granite countertops and stainless steel appliances and pools and everything else. For some weird reason they seem to think that this is a right of passage, prior generation settled for far far less because they were realistic in regards to their earning potential. It’s called being way over your head.We’re going to a readjustment whether we like it or not.
The real estate agents should have been saving up for the boom we've had over the last few years. They should all be filthy rich if they didn't spend it all.
In this day and age the only way to buy a home is having the ability to pay cash for it. I have done so in my last two purchases. Interest rates are too high and somehow home values have doubled where I live. I don't understand why in a years time home values have increased so much other than a lack of inventory or other purchasers that managed to get 2% interest rates. Other then that everyone else is screwed...
I don’t know. There’s no inventory because everybody’s sitting on 2 to 3% mortgages, so why would they sell? Which just leaves new construction or wildly expensive homes over 600,000 in our area. But nobody can afford the new construction with 8% mortgages so that’s another reason nobody’s selling their house. But then if you were able to make the Fed reduce the interest rates back down to 2 to 3%, would all of the investors start jumping in again and snatching up all the affordable houses.?
What drives me nuts is when people say that property taxes, insurance, maintenance, and whatever else comes with home ownership is built into the rent price. I agree that it is but in Boise Idaho, it is still way cheaper to rent than to buy. It would cost me $1000 more per month to buy than to rent in the same area I live. It's just crazy out there.
Right, what if the person I'm renting from bought the house 20 years ago and has a super low payment... It's also MUCH cheaper to rent currently in Seattle
I have always owned a home…sold my last residence about a year ago. I am really reconsidering buying again or just renting without the headache. Seeing the changes In the weather patterns and the insurance companies dishing their responsibilities home ownership is not looking good 😢.
@gb3776 I totally agree. Home insurance is a big deal right now, and I don't see an end. Costs are increasing everywhere you turn, which is a direct hit for maintenance issues. Also, renting is much cheaper.
Prices will take an ugly turn! You can only hang onto a 3% mortgage if you can afford the ever rising property taxes, homeowners insurance, rising utility costs, and you have a job! Didn't you say foreclosures were up over 20% last month?
Being fiscally responsible means, buying a house lower than you were approved for, having well over $100K in savings in case something happens with the house. People bought houses they couldn't afford, did not factor in property tax and that is why they are housepoor now and struggling. Add in a job loss and they are done.
Phew! Good thing only the most qualified buyers have been approved for mortgages over the last 15 years. Must be why foreclosures have remained at or near all time historic lows. Hey how much is your rent now , just curious?
It's not just a matter of buying a house and refinancing later, it's also about being forced to buy something you don't even like. Like marrying the ugliest girl in town.
I married the "ugliest girl in town" in Florida back in 2009 for 139k when I bought a property. That property is now appraised at around 395k. Still with her!!
@@MichaelGiordano777 I did the same thing in Naples, bought a foreclosure for 99K, and similar condos are now going for 330K. The price will probably drop, but I don't care, it is paid for and my carrying cost with property tax, condo fees, and insurance is 6K a year.
This is simply great advice. if you are a first time buyer, this guy’s knowledge will help you. I wish i would’ve had a resource like this when i was buying. Good talk! your mortgage goes up every year, pretty much, and by more than you think. There will be a lot of upkeep and work related to owning a home, that’s the cherry on top. America is a debt factory, once you sign you are officially working for that american dream, good luck!
We've all seen everything more than double in price the last couple of years and we know a pickup truck cost $100,000.... So what is everybody making $50 an hour they'd have to just to survive ..,. There must be a lot of old money and must be people have a lot of money saved.... I can't believe that things are still holding on
@@DavidM-h7c well to be fair, anybody who buys an investment property can do that… the thing is while they can take the write off sure, that only helps if they have other things making money, which they probably do for now… but if the market takes a down turn…
You hit the nail on the head, home prices arbitrarily went up 1/3 in the last 3 years while wages did not go up a third and most of the homes are priced out of affordability for the masses.
You are absolutely correct in your discussion of mortgage payment going up. Most people do not realize that when you buy a home the vultures are just waiting to reassess you at the new higher purchase price. Especially school districts. The majority of realtors do not tell the buyers about this, and most are blindsided by these increases. This especially hurts those that extend to the top of their affordability to buy a house in a specific area.
My realtor actually said to me, with a straight face, “date the rate and love the house”. I couldn’t believe it. I said will you pay my mortgage if rates don’t go down for an extended period of time? You can guess the answer. 🤦♂️
I'm just going to give an example area of up here in this coroner of the state to show you how outrageous it has become. Look up Rexford, MT. Those are all double what they should be, all of them. The person trying to get $1.3 mil for 13 acres is on some serious drugs. Hope you don't need anything in a timely manner either. Yes it's beautiful up here but people are not prepared for the winter. When it's -18 Fahrenheit it feels like all the water in your skin is going to freeze. We get a couple weeks of that. Last December we had a -32 Fahrenheit day. I'm not joking when I say it gets brutal in the winter.
Agree. When looking at homes last summer and asking about the insurance crisis in Florida I was told insurance goes up and down all the time, nothing to worry about. I stopped looking and rent. I did my homework and it was absolutely horrendous on how much the insurance is going up, people losing their homes because of not being able to afford insurance, insurance companies dropping their customers….. I feel all experiencing these insurance hikes. I have family, friends, coworkers who’ve had hikes of 800-1,500 a month and going up a 2nd time this year in Nov.. . Rent was the better option even though the rents have also skyrocketed.
insurance in these areas never goes down. They are begging FEMA every season to come in and spend a billion dollars restoring regions of this state. construction costs are over double their historical range in florida. do the math.
Michael, it seems to me that the pandemic has something to do with the housing market being so upside down. But as usual, the normal person working 9-5 m-f isn't able to afford a mortgage and homeowners insurance and property taxes which are rising exponentially every other day plus the basics of the cost of living.
They intend to withhold inventory no matter what. What fed should do is lower the interest rate only AFTER supply is increased enough to bring homes prices lower then what is needed for affordability to be achieved.
There are 10s of millions of available homes... Inventory is sky high. This is all about real estate greed and treating the buying of a home as though it is a commodity to swap/sell/profit from... IT IS NOT!!!!
@@FreedomTalkMedia I live in NYC and there are THOUSANDS of apartments, brownstones etc available that have had FORSALE/LEASE signs for a couple of years now and still no one wants to rent/buy them. In the meantime landords are crying SHORTAGES of housing for the sake of leeping rents/leases/mortgages high. Well guess what? Now those Brownstones, Houses are being foreclosed on and apartment buildings are begging for rfinancial relief as all of those empty apartments are not bringing in rent, but the property taxes continue to increase and costs of maintaining apartment complexes continue to rise. Won't be long before they lose everything and regret ever playing into this GREED GAME.
They control the flow of all of it. Foreclosures used to sit for years. The properties fall apart while waiting for another family. The list is long of suspicious control of this market.
1/2 of all buyers are 1st time buyers because people who otherwise would have sold a current property to buy bigger or relocate, arent doing it because of 3% locked in rates and who would trade that in!?
The current fed gov has caused the dreaded stagflation to darken our door. The absolutely spikes oil prices with anti oil pro ev policy and they spurred hyper inflation with cheap money and debt funded cash giveaways.
I bought a house in December 2007 at the time I was shopping every house I went to I had holes in the walls and my real estate agent would always have an excuse such as there was domestic violence. You have to find an agent who is either a family member or someone you can really trust because they will lie. Because we all know the truth was people were leaving angry because the housing market was crashing. Luckily I bought a fixed rate mortgage at the time and could afford the payments and I ended up making money on the house but not until 10 years later
@@nickc3856 Because the people leaving the house were upset about being forced to move out!!! They did things like putting powdered concrete in the toilets and flushing it down. Stripping the house of anything and everything they can sell - wiring, plumbing, appliances. So much more and so little space to share.
@@nickc3856 Could've been a rental and got evicted. A bunch of drug dealers rented a house in my old neighborhood. A few months later moved in the middle of the night and trashed every wall, switches, lights stolen, copper gone, the whole shebang. The older couple was so sad to see when coming out after seeing the damage done.
I had a realtor that I’ve never seen before. I think he was in Iowa saying what a good time and was justifying why he said it was a good time to buy a house and that you could refinance later. And I replied that he was full of SHI tea, and he was going to hurt people, I went back to show my wife what he said, and I think he deleted his video as I couldn’t find it
I'm from Little Rock....that's not Little Rock That's Sherwood...which is not to far outside of Little Rock...but definitely NOT Little Rock. Love the vids!
I wish they would stop calling them rate hikes. Ending inflation isn't a battle. It doesn't require "rate hikes." All it requires is for the Fed to stop inflating (digitally printing money). They did that. They called it a rate hike.
I have a home on wheels and pay 25$ a month utilities 😂, when the housing will go 50/60% less has well insurances and taxes I will think about to buy this pain on ass call "house" 😂
Great Observation. 👍. It is all manipulation. Inflation is. not going away as I went to the grocery store for a box of cookies selling at $8.98 from old price of $5.00. That is almost $10 for a box cookie that used to be $5.00 and “they” are telling us inflation has gone down from 9% to 3.7%. My wallet is the true inflation meter and not from any old tricksters. 😄. Great Observations. 👍
Who the F signed off on 3% interest rates? It was fun while it lasted, but anyone with any knowledge of economics should have known it would end in disaster. No one seems to care about the financial stability of our country. I worry for future generations.
Interest rates are not likely to go down for a while. Housing prices are also not likely to go down for a while. In my area, prices haven't moved. Things aren't selling, though.
I refinanced years ago and my fixed mortgage is $640 a month and property taxes are $3,700 a year, goes up about $100 a year, and home insurance is $1,800 a year, just got that $80 dollar increase balance due yesterday, my yearly cost of living increases go to these increases, Garbage and water goes up too, Kaiser hospital goes up too, but I'm still living middle class with a $60,000 salary, strange the only thing not going up is Gas and Electricity.
I read an article with a similar thing, but it said people would feel comfortable with 3 times the household income of $75k. So, they would like to be at $233,000 HouseHold income to feel comfortable, also in the article it said retirement accounts at 1.3 million is comfortable for most people in America.
10:20 wow, this house would rent for $2200-$2400 in OKC metro area. Every rental house here is basically $1 per sqft. And it sold for under $190k in 2018? Damn, little rock is definitely more affordable than here and i thought this was about as affordable as it gets.
If you consider the actual cost of living including housing, I’ll bet you could make 30% less and be personally better off. When all these “cool and trendy” places where housing takes up 60% of your income, it’s moot.
Shame on (greedy) realtors, not all but those who failed to plan, blew their commissions frivolously and are now begging! That industry has always been feast followed by famine, a cycle. Live during this famine off the assets you accumulated during the last very long cyclical feast!
I’m a First Time Hime Buyer. What’s enticing me to buy are lots of grants available such as the HFA California Dream for All where they’re giving 20% for down payment assistance. Also home builders (kb homes) are offering Seller rate buy down to 5.85% which is the only reason i am even entertaining the idea
I still blame the FEDs for this, because in the end they benefit by either buying off the failed banks cheaper or something. The fed can print credit as long as someone will borrow it into existence, but they cannot print product (or production).
People are going through real life crisis, think now isn't a time to point fingers. Everyone should always be prepared for the unexpected to happen. That is how randomness works.
You're right! Now that the market is in decline, I know what I want to do, but I'm not sure which stocks to buy, which investments would yield the best profits, etc. The potential gain is greater due to the risk, and professionals are better at negotiating such exact contracts. Right?
Very true, I started investing in 2018 with no prior knowledge or expertise, and by the end of 2019 I had earned a profit of approximately $750k. I had simply been following the guidance provided to me by my financial adviser. This shows that you don't even need to be a great investor or put in a lot of effort; all you actually need is a professional to help you.
@@jeffery_AutomotiveThat's fascinating. How can I contact your Asset-coach as my portfolio is dwindling?
My Financial adviser is ‘’JULIE ANNE HOOVER’’ she’s highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market
I remember in 2007 when I was working in real estate seeing people buy homes new from builders with the intention of selling before close of escrow to a new buyer for profit. The crash was so brutal and fast that I remember seeing a lot of these units foreclosed on with the builder plastic still on the carpet.
Because they are accustomed to bull markets, most people find it difficult to handle a decline, but if you know where to search and how to manoeuvre, you may earn handsomely. Yes, depending on how you want to enter and leave.
Using a portfolio adviser for a well-defined plan, the long-running US stock market bull run has produced $780k in returns over the last ten months, a combination of exhilaration and dread.
Do you mind sharing info on the adviser who assisted you?
Do your due diligence and opt for one that has tactics to help your portfolio continue consistent and steady growth. “Vivian Carol Gioia” is accountable for the success of my portfolio, and I believe she has the qualifications and expertise to accomplish your objectives.
Thank you for this amazing tip. I verified her and booked a call session with her. She seems Proficient.
11 years ago we qualified for $400k+ , we made sure we didn’t go over $265,000 when we built our home because we wanted to keep our expense ratio below 30%. This was the best financial decision we have ever made. Just because you qualify for X amount doesn’t mean you should borrow it! The loan brokers and realtors don’t care if you go bankrupt in 2-3 years because they got their money and know they will never deal with most of their clients again.
It’s up to YOU to take on the amount of debt you think you need. It’s like a wrench. You are using leverage. Get it. No one WANTS you to fail. That’s not the best case scenario. Best case is you take about 6-7 maybe 8 years of to pay the note the refinance or buy a new place so you stay at the front of the payment which is all interest.
me too kid..😁😁😁😁😁😁😁
They actually benefit when you dont make your payment and wind up selling the place. they get a commission nearly every time a transaction takes place these days. Even on the buyers end of things. they want to flip that house in the system as many times as possible.
Financial literacy should be taught to everyone at some place in their lives. I don’t expect universities to do it they’re too obsessed with pronouns and victimhood
@@pmscalisi This goes way beyond the current political climate in the universities. Financial literacy has intentionally NOT been a priority for decades. If people learned that borrowing money … especially for instant gratification was bad… then who is going to buy all that unnecessary stuff! I’m not saying people should not buy anything but essential goods, but buying stuff you don’t “need”… but want on credit is a terrible habit and the vast majority of people do it every day.
The fed literally said they want home prices to decrease back to reasonable levels. If we just cut rates, all the investors will snatch up all the inventory again
Higher rates will continue for longer. If you’ve been paying attention to what the fed is actually doing, you’ll see that they don’t care about squeezing literally everyone. They want it to all crumble like a house of cards ..
So you put a cap on how much a home can be sold or bought, and the real estate parasites will go elsewhere having no profit to be made off of a house(s)...
@@SAMSON12321does the fed have the authority to do that?
@@SAMSON12321 price fixing never solved anything. Tax regulations on the other hand greatly favor investing in real estate. Adjust the tax laws and the rest will resolve.
@@coconutwater4531
No, but it needs to be done, or everyone will quickly be right back into the same situation of houses being valued way more than they should with people being unable to afford and sellers unable to sell.
Your house is where you live, so it has zero monetary value and yet is priceless at the same time. No one wants to be homeless.
No more of a house/homes being like a block of gold to try and make the most profit off of.
It's always best to assume that everything real estate related is a scam.
@@internetshopping1063 why are you here then?
It’s almost like the whole industry is a scam now from top down
Last house that I sold, didn't use relators to sell home, just a closing attorney. Saved money for both seller and buyer.
Joe Biden is intentionally destroying the economy
You never own your home ever.
We’re a nation of renters.
I bought my house in 2018 and at that time I made roughly 40k a year (single dad) with no debt and was able to qualify for a 225k dollar house. Of course the house was 225k so I was a bit stretched. If those low interest rates hadn’t come in fall of 21 I was getting priced out due to Taxes. The house payment had gone from 1320,00 to over 1500 in those 3 years due to property taxes so that was about to price me out, that was about half my take home pay at that time. After I refinanced in 21 I got my payment down to 1013.00 but it’s already gone over 1100 in the last two years due to constant raises of my property taxes. So when you buy a house and you get your payment price a month remember even with a locked in rate it’s going up every year. In my case it was rapid and still is because of the area I live in. I am right next-door to Westport Crown center and the plaza here in Kansas City but I’m in the first line of suburbs next to those so this is a very attractive area with very low crime. Great talk as usual!
I hate that in 2018 someone only making 40k could buy a house and now days someone making 40k can’t rent a 1 bedroom apartment. Now it’s 60k to rent an apartment and 90-100k minimum to buy a house
A rule of thumb is with 0 debts you get approved $200k for every $30k that you earn. I feel that’s fair.
Kansas City has become unaffordable so quickly, your very average Northeast Johnson County/West Plaza/Brookside/Waldo house is a luxury for the wealthy now. I am looking at Wyandotte County, not the area by KU Med either, while earning 60k. Gotta keep, renting the madness can't keep up. 500k for a 3/2 at 63rd and Holmes where you hear gunshots every night. 20 years ago you couldn't give away houses in Waldo. Who's paying these prices?
Dude I just bought a BMW and my monthly payment is $2,500. 😅
@@Natl.Acrobat
It is insane I live in Roeland Park just over the hill from KU Med/Westport area and even that area is starting to look nicer so I’m sure they aren’t even that affordable anymore. I don’t know what’s happened to cause these spikes but I hope they self correct. The sad part is even if the prices reset to be more affordable you know they won’t lower the property taxes. Or I should say I’d be shocked if they did. I’m 49 so I’m rounding the corner of life and I can’t imagine what it feels like to be in your 20s or 30s and trying to start a family and live the dream and you can’t find a place to live without giving away 50% of your take home. My daughter is 13 and I worry for her all the time and how will she afford to ever buy a place? I guess that’s where I can hopefully help out. Even if you happen to find a place and it’s somewhat affordable that’s still not good enough because the minute you move in the HVAC or the roof or the plumbing is gonna fail and you better be able to tap into some savings (not retirement) but saving is nearly impossible when like you said rent is as high as it is. I swallowed my pride after I divorced and moved in with my parents with my 2 year old daughter and was able to save a lot over the 6 years I lived there. I have a few nieces and nephews that are doing what I did and are staying with family and banking their checks for as long as possible. If I had not had that option I wouldn’t be living in this house I’m in I’d be renting. Yea it was a blow to the ego but I knew long term if I was going to buy a house it was the only way. Best of luck friend!
I agree completely, when I bought my house in 2018, I had no clue that all of the prices would keep going up. Fortunately my late wife and I bought based off of only my income, and far below what we could afford, but still with a yard for our young son. It worked out, praise God. don't get greedy.
Me too. Bought in 1998. Only what I could afford, 118k house. Now I’m doing fine.
Correct I'm OLD what happens is One passes so Half income. I was Shocked buddy wanted to sell house . Be We figured it out he Passed there 😁😁😁😁
Jeez these entitlement minded Realtors and RE industry... They got used to slaying it and now they're whining when the door swings a little bit the other way??
They got addicted to an unsustainable market. And now can't take the withdrawal symptoms
Realtors are freakin' LAZY! All the have to do is show up and sometimes they can't even do that.
The realtors thought that those 3% rates would last and they didn't see a bubble coming . They were to busy getting buyers to over bid the list price so they could get accepted contract. I hope they put money back for rainy days because they are going to see alot of them .
The fact that there is already an excessive amount of demand awaiting its absorption, despite how everyone is frightened and calling the crash, is another reason why it is less likely to occur that way. 2008 saw no one, at least not the broad public, making this forecast, as I'll explain below. The ownership rate was noted to have peaked in 2004 in the other comment. Having previously peaked in the second quarter of 2020, we are currently at the median level. Between 2008 and 2012, it dropped by 3%, and by the second quarter of 2020, it had dropped from 68 to 65.
"They" are agents, brokers, under writers, lenders and appraisers. Each group promotes the business of buying overvalued houses in order to steal money from buyers.
@@internetshopping1063he’s probably fed up being a realtor and venting that his job is impossible. He probably makes a good living on RUclips and he’s able to speak the truth because his incentives aren’t being dependent on selling houses all the time. Doesn’t have kids and invested all his money, funny how having money can break your chains and live free.
many of these realtors have had 10-15 years to rake in $. my cousin is a multimillionaire from being a loan officer/realtor. theyve made 10’s of thousands from us for very little work. i dont feel bad for them.
You need to become a realtor or mortgage broker to know that you have to work very hard to be successful. Your a independent contractor it takes a lot to sell a home people do not take the first house they see. It can take a few months of out of pocket expenses maybe a year. Plus my daughter was a mortgage broker you do your due diligent to help plus you need to feed your family but what happens when you can get through qualifying due to to much upside credit issues.
@@sandrahintz2617i know more than one realtor who told me when they started they just couldnt believe how much they got paid for basically a few hours of work. I guess eventually people like you will tell yourselves they deserve to get paid like that for whatever reasons or basically lies they tell themselves
@@internetshopping1063yep. He makes money from Adsense on his doom videos.
@@internetshopping1063Are you a general troll or just in this channel?
I was a loan processor for big known banks. The loan agents did make good income but they did have to make a name for themselves especially customer service. The back end processors/underwriters work hard behind the scenes making the loan agents look good as well. You need a good team.
People have made allot of money doing nothing the last few years. It’s time everyone gets back to reality.
Truly... doing NOTHING.
There is a newly built mcmansion near me. It sold for 900k as a new house in March 23’. It is October 23’ and they want 1.4 million for it. 900k is too much for the house. I hope it goes down to 400k and they loose 500k on it instead of gaining 500k from the sale 😒. It’s one of those nicely finished homes but not impressively large or large lot homes. Your typical 4 bed 4.5 bath homes with a 2 bay they’ve shoved onto a measly 6000 sqft lot. It’s worth 550k at most
My father's waterfall work traversed SD, southland and LA. Ventura to Riverside Palmdale and one in Santa Clara, Vegas Houston, Des Moines. Most those waterfalls are still running despite his 2000 yr exit. DOB 1912.
Interesting the National home builders are lobbying the Fed to not increase rates, but they refuse to lower their asking prices on new homes in Florida. As a 35-year Florida resident and homeowner I see what is going on here.
Building materials prices have not come downs AT ALL since they skyrocketed
Until the cost of materials and labor come down for builders then prices will stay. It’s that simple.
@@davedavid7061: what was the homebuilders' excuse for the high cost of construction before material prices and labour shortages queered the pitch?
@@eattherich9215 there was no high cost of construction before that. There were just millions of assholes moving here that paid double of whatever the asking price was.
Greed greed greed......leads to sorrow.....GREAT sorrow
I'm sending letters to the feds BEGGING them to raise interest rates. I need home prices to drop back down to 1990's prices so that I can afford one. In 1995 I was trying to buy a nice 2 bedroom house for $39,000. I was making $45k back then. I'm making not much more than that now, so the feds are doing me a favor. I need a foreclosure crisis 5x worse than 2008. PLEASE FEDS! RAISE THE RATES!!! I AM BEGGING YOU! CRASH THIS MARKET HARD!!!!!! Get these prices down so $40k income earners can afford a home!!!!!
Hear hear!
@@JohnJohnCrusher I'm with you man, I'm rooting for a huge crash. We really need massive deflation and a depression to makes things affordable again. The people mad about rooting for that are just selfish A-holes. It'll only hurt the bigs.
I gotts an old empty huge TV box you can fold into a little tent house in a Super Rich LA hood, my price is in your range $39,000 for the Box.
I don't think it would help. They like living with Mom rent free too much
I'm making more than double your 40k and I'm waiting for a crash too. The prices are insane.
I'd like to get a house with some land. As soon as you add two acres, it's hard to find anything nice under 400k or 500k. 300k is my limit. Mostly junky houses come up under 300k. Missing drywall. Roof leaks. Completely gutted. Stuff like that.
I look at whole states too. Not just near cities. Michigan and New Hampshire
Great video, Michael.
My neighbor is a realtor of 30 years and gives me frequent updates on the market. Last week she said "home prices are dropping and no one is buying, everywhere." For the past 7 years she's been saying housing prices are going up, you won't be able to buy if you wait, etc. Now I am wondering why this change?
The majority of people I know who are way too overleveraged in real estate, in my opinion, have been saying the same thing: housing prices only go up. But the I think, who buys them? Me? No. Do they hope they only go up because of their investments?
Interesting how people will tell you one thing, especially when they have something to gain from it, until they can't and it's obviously not true. Here we are. I had to tell my wife what my neighbor said about the housing market. I said this one social media and many people said it was a lie, realtors. I wonder what they have to gain.
because small and regional lenders understand that their potential mortgage holder needs to actually earn twice as much as three years ago to afford the same home, and they arent lending.
Being someone who has purchased well over 30 different kinds of properties I just have to say that THIS IS THE WORST TIME TO BUY A HOUSE 🏡.
Be patient and there will be some amazing deals in the next year and a half. Blessings, Carlos ✝️🙏😊❤️🇺🇸
I've been hearing that for years now and all prices do is keep going up. They are up year over year still too and it's not the property appreciation either like people think but inflation in general.
Do you think it's make more sense to pay off the mortgage or save money for down payment and wait for the market crash?
@@ilyana503 both work, but unless the market is going to crash catastrophically, it's safer to get in early and rent out rooms to help with the mortgage.
Once interest rates lower and houses stabilize, it won't just stabilize. It will jump up and you'll feel huge pressure to compete with others. You'll end up not saving as much as you hoped to just by timing the market and waiting.
What a lot of people aren't factoring in is the huge wealth disparity in the US right now. Just because there are a lot of poor or middle class people complaining about unaffordability, doesn't mean there aren't plenty of fairly wealthy families that can buy dozens of properties to make up for those who can't afford it. Hell, even my family is able to buy several properties now.
@@thetapheonix so- you believe that as inflation goes up- as well as lay offs from work- that people will buy conflated housing?
End of the day, when people are sufficiently upside down on their mortgage/house, they'll walk. Jingle Mail (mailing the keys back to the bank). If I learned anything from the 08-09' GFC it's that for a certain number of "homeowners" housing is just another asset class, not a homestead where you want to live and raise a family.
THANK-YOU for calling it like it is! The real estate industry helped to push the home price to unaffordable levels; now the prices are simply too high to be within most family budgets. Agree the only way to fix this is for real estate prices to fall to levels affordable within family budgets. It is unfortunate that the economy will have to see a downturn for this to happen, but this is only in keeping with "this is what the market will bear" slogan sellers quote when asking high prices. We also need to keep in perspective the role investment realtors have played in outbidding potential homeowner/occupants... I hope the real estate investors will realize what they have done to the American dream, and reverse their aggressive purchasing. Otherwise, we need to start implementing negative economic pressures, like higher taxes on nonoccupant owners..
When two paycheck households first started, they were two college graduates. The first result of this was that real estate prices started to climb.
Invitation Homes purchased over 100 homes in the Orlando area in July this year. Investors will keep buying for the RENTERS Nation!!
Yep. Huge businesses are the landlords.
No rent when we have socialism
California only has 2 months' worth of supply. I need home prices to go down. I'm just not paying $3,000 a month for a 3 bedroom and an out-of-date kitchen.
Dealing with a kitchen remodel right now. Going on a month living off a hot plate. It's painful and expensive.
There is something else going on in the real estate market, at least here in the North East. A lot of homes are selling above the asking price. That seemed odd to me. I looked into it a bit to see and I found several homes listed for say 400k and then selling for 440k. But if you look at the history in a lot of these cases, the home was listed, quickly, an offer was made starting the process and then BAM! someone comes in an offers a higher price. In most cases, that "someone" isn't a person but rather an "LLC", Limited Liability Corporation. So one has to ask, why are Corporations buying up single family homes above the asking price?
'... why are Corporations buying up single family homes above the asking price?' To turn them into rental machines and drive down supply as their bulging corporate wallet can vacuum up what comes to market.
Those l.l.c. Will be sorry later on . They are buying the hype , it happened in 2008 and we know what happened then . High rents and high prices won't last and those investors will be losing money because they think prices and rents are going up . Trust what Michael is saying he has laid it out there and those companies don't know something we don't know , they are greedy and suffering from fomo .
I live in flyover America and thankfully we don’t have that problem.
@@pmscalisi: 'I live in flyover America and ...' you are welcome to it.
Ever heard of Blackstone
A friend of mine in Phoenix was writing mortgages for years. Now he has a job at a collection agency…
There has always been greed, but the greed now is ten fold. Real estate companies have become greedy and they are to blame also for the inflated home prices. They brag about how much money they made in one year but the middle class and under, can not compete or be a part of this market. They get wealthy and the middle class and under struggle. It’s not good.
Down payment assistance is playing a big role in purchases right now. Big role.
Yup and that's part of the reason why inflation isn't going down and won't go down. The interest rate hikes are being countered by government over spending.
You are absolutely correct so many people have been capitalizing on totally unrealistic gains. Young average incoming or modest incoming citizens, really don’t belong in four bedroom four bathroom houses with granite countertops and stainless steel appliances and pools and everything else. For some weird reason they seem to think that this is a right of passage, prior generation settled for far far less because they were realistic in regards to their earning potential. It’s called being way over your head.We’re going to a readjustment whether we like it or not.
Market requires a 40+% correction...
The real estate agents should have been saving up for the boom we've had over the last few years. They should all be filthy rich if they didn't spend it all.
Oh, they spent it all.
Depends on the realtor. Many joined recently. Many realtors aren’t that good at it etc 🤷♂️
That Realtor cope is insane...they can't understand that the current price of homes regardless of interest rates is a huge problem.
The renter cope is what's insane. Lol
In this day and age the only way to buy a home is having the ability to pay cash for it. I have done so in my last two purchases. Interest rates are too high and somehow home values have doubled where I live. I don't understand why in a years time home values have increased so much other than a lack of inventory or other purchasers that managed to get 2% interest rates. Other then that everyone else is screwed...
I don’t know. There’s no inventory because everybody’s sitting on 2 to 3% mortgages, so why would they sell? Which just leaves new construction or wildly expensive homes over 600,000 in our area. But nobody can afford the new construction with 8% mortgages so that’s another reason nobody’s selling their house. But then if you were able to make the Fed reduce the interest rates back down to 2 to 3%, would all of the investors start jumping in again and snatching up all the affordable houses.?
Big investors usually pay with cash. It would only benefit them if the house prices went down
What drives me nuts is when people say that property taxes, insurance, maintenance, and whatever else comes with home ownership is built into the rent price. I agree that it is but in Boise Idaho, it is still way cheaper to rent than to buy. It would cost me $1000 more per month to buy than to rent in the same area I live. It's just crazy out there.
Right, what if the person I'm renting from bought the house 20 years ago and has a super low payment... It's also MUCH cheaper to rent currently in Seattle
I have always owned a home…sold my last residence about a year ago. I am really reconsidering buying again or just renting without the headache. Seeing the changes In the weather patterns and the insurance companies dishing their responsibilities home ownership is not looking good 😢.
@gb3776 I totally agree. Home insurance is a big deal right now, and I don't see an end. Costs are increasing everywhere you turn, which is a direct hit for maintenance issues. Also, renting is much cheaper.
Prices will take an ugly turn! You can only hang onto a 3% mortgage if you can afford the ever rising property taxes, homeowners insurance, rising utility costs, and you have a job! Didn't you say foreclosures were up over 20% last month?
Being fiscally responsible means, buying a house lower than you were approved for, having well over $100K in savings in case something happens with the house. People bought houses they couldn't afford, did not factor in property tax and that is why they are housepoor now and struggling. Add in a job loss and they are done.
@@DIVISIONINCISIONwho the fuck has 100k in savings for an emergency?
@@billwilliams699no shit
@@billwilliams699 I do, William.
Phew! Good thing only the most qualified buyers have been approved for mortgages over the last 15 years. Must be why foreclosures have remained at or near all time historic lows.
Hey how much is your rent now , just curious?
I never knew of Bank of Mom and Dad until I lived in Cali. I mean, how else can you buy a crappy never updated 60s ranch for $1M?
We’ve been delaying buying a house for 2 years. Not getting trapped in this bs
So you've chosen to waste about 50k on rent instead ? Good job.
I say this all the time. Can’t change the price. The price is what I’m most focused on lowering more than the interest rate. 🙂
Give them a low ball offer. They can take it or leave it. You could be only person even offering anything
If you need assistance with a down payment you probably don't need to buy a house
It's not just a matter of buying a house and refinancing later, it's also about being forced to buy something you don't even like. Like marrying the ugliest girl in town.
I married the "ugliest girl in town" in Florida back in 2009 for 139k when I bought a property. That property is now appraised at around 395k. Still with her!!
@@MichaelGiordano777 because 2009 is just like now. Smh
@@MichaelGiordano777 I did the same thing in Naples, bought a foreclosure for 99K, and similar condos are now going for 330K. The price will probably drop, but I don't care, it is paid for and my carrying cost with property tax, condo fees, and insurance is 6K a year.
@Corkfish1 or like settling for the ugliest dude in town
@@MichaelGiordano777ditto 👍 Cept mines a husband. 🤣
This is simply great advice. if you are a first time buyer, this guy’s knowledge will help you. I wish i would’ve had a resource like this when i was buying. Good talk! your mortgage goes up every year, pretty much, and by more than you think. There will be a lot of upkeep and work related to owning a home, that’s the cherry on top. America is a debt factory, once you sign you are officially working for that american dream, good luck!
Well said
Low interest rates cause damage to the market. Look at the insane price of housing. Interest rates should be 100% to force people to pay cash
I'm loving these cross-country walks!
We've all seen everything more than double in price the last couple of years and we know a pickup truck cost $100,000.... So what is everybody making $50 an hour they'd have to just to survive ..,. There must be a lot of old money and must be people have a lot of money saved.... I can't believe that things are still holding on
I make $71.50 per hour and can’t afford a home and expensive vehicle. 😢I can pay the bills though.
@@ca6317is this California?
Wtf? Seriously? Damn!
71.50 an hour still isn't much at 40 hrs a week.
Give me 110 hrs weeks at 40 and I will take home more
No one forces anyone to buy.
Whats interesting is, why aren’t the blackrocks of the world unloading their single family homes before it drops?
@@DavidM-h7c well to be fair, anybody who buys an investment property can do that… the thing is while they can take the write off sure, that only helps if they have other things making money, which they probably do for now… but if the market takes a down turn…
Smart boomers investing in real estate for their kids. Better than losing it in the bank.
If you have cash
My boomer parents booted and scooted 😂
Kids just will just cash out of them. None of them want to own rentals even when a management company is doing everything.
Neighborhood house I bought was empty. Ask them to sell. They said 50k. Showed them why I'll only be giving them $15k. Closing this week..
Home values are declining in every state.
You hit the nail on the head, home prices arbitrarily went up 1/3 in the last 3 years while wages did not go up a third and most of the homes are priced out of affordability for the masses.
My home is paid off now the sad part. In today's market i couldn't afford my home. 😢
I couldn’t afford mine if I bought it now either. However, there are plenty of other people who can afford it
I just paid off my mortgage in August.
That's the American dream.
You are absolutely correct in your discussion of mortgage payment going up. Most people do not realize that when you buy a home the vultures are just waiting to reassess you at the new higher purchase price. Especially school districts. The majority of realtors do not tell the buyers about this, and most are blindsided by these increases. This especially hurts those that extend to the top of their affordability to buy a house in a specific area.
My realtor actually said to me, with a straight face, “date the rate and love the house”. I couldn’t believe it. I said will you pay my mortgage if rates don’t go down for an extended period of time? You can guess the answer. 🤦♂️
No agent told you that and that didn't happen. 🙄
BS
The expression is you date the rate not Marry it. And that’s absolutely true.
All they have to do is “lower the prices of these inflated homes!!”…..that 95% of America can’t afford!!!!!!!!!
I'm just going to give an example area of up here in this coroner of the state to show you how outrageous it has become. Look up Rexford, MT. Those are all double what they should be, all of them. The person trying to get $1.3 mil for 13 acres is on some serious drugs. Hope you don't need anything in a timely manner either.
Yes it's beautiful up here but people are not prepared for the winter. When it's -18 Fahrenheit it feels like all the water in your skin is going to freeze. We get a couple weeks of that. Last December we had a -32 Fahrenheit day. I'm not joking when I say it gets brutal in the winter.
Agree. When looking at homes last summer and asking about the insurance crisis in Florida I was told insurance goes up and down all the time, nothing to worry about. I stopped looking and rent. I did my homework and it was absolutely horrendous on how much the insurance is going up, people losing their homes because of not being able to afford insurance, insurance companies dropping their customers….. I feel all experiencing these insurance hikes.
I have family, friends, coworkers who’ve had hikes of 800-1,500 a month and going up a 2nd time this year in Nov.. . Rent was the better option even though the rents have also skyrocketed.
insurance in these areas never goes down. They are begging FEMA every season to come in and spend a billion dollars restoring regions of this state. construction costs are over double their historical range in florida. do the math.
Also property taxes are included in your rent. You’re paying it anyway. Why do you think rent has skyrocketed? Taxes are a part of it.
Michael, it seems to me that the pandemic has something to do with the housing market being so upside down.
But as usual, the normal person working 9-5 m-f isn't able to afford a mortgage and homeowners insurance and property taxes which are rising exponentially every other day plus the basics of the cost of living.
We just need more hikes eventually it will force prices down
They intend to withhold inventory no matter what. What fed should do is lower the interest rate only AFTER supply is increased enough to bring homes prices lower then what is needed for affordability to be achieved.
There are 10s of millions of available homes... Inventory is sky high. This is all about real estate greed and treating the buying of a home as though it is a commodity to swap/sell/profit from... IT IS NOT!!!!
Inventory is not sky high.
@@FreedomTalkMedia
I live in NYC and there are THOUSANDS of apartments, brownstones etc available that have had FORSALE/LEASE signs for a couple of years now and still no one wants to rent/buy them.
In the meantime landords are crying SHORTAGES of housing for the sake of leeping rents/leases/mortgages high.
Well guess what? Now those Brownstones, Houses are being foreclosed on and apartment buildings are begging for rfinancial relief as all of those empty apartments are not bringing in rent, but the property taxes continue to increase and costs of maintaining apartment complexes continue to rise.
Won't be long before they lose everything and regret ever playing into this GREED GAME.
I was in Charlotte NC last week and saw lots of building projects being built and it looked like it has been going on for years.
They control the flow of all of it. Foreclosures used to sit for years. The properties fall apart while waiting for another family. The list is long of suspicious control of this market.
1/2 of all buyers are 1st time buyers because people who otherwise would have sold a current property to buy bigger or relocate, arent doing it because of 3% locked in rates and who would trade that in!?
The current fed gov has caused the dreaded stagflation to darken our door. The absolutely spikes oil prices with anti oil pro ev policy and they spurred hyper inflation with cheap money and debt funded cash giveaways.
I bought a house in December 2007 at the time I was shopping every house I went to I had holes in the walls and my real estate agent would always have an excuse such as there was domestic violence. You have to find an agent who is either a family member or someone you can really trust because they will lie. Because we all know the truth was people were leaving angry because the housing market was crashing. Luckily I bought a fixed rate mortgage at the time and could afford the payments and I ended up making money on the house but not until 10 years later
so why were there holes in the wall?
I looked at about 100. Amazing how many trash houses then have the guts to ask way too much. Cousin is a real estate agent too.
@@nickc3856 Because the people leaving the house were upset about being forced to move out!!! They did things like putting powdered concrete in the toilets and flushing it down. Stripping the house of anything and everything they can sell - wiring, plumbing, appliances. So much more and so little space to share.
You could have fired the realtor and found one you trusted. That's what I did. Went with a new build, eventually.
@@nickc3856 Could've been a rental and got evicted. A bunch of drug dealers rented a house in my old neighborhood. A few months later moved in the middle of the night and trashed every wall, switches, lights stolen, copper gone, the whole shebang. The older couple was so sad to see when coming out after seeing the damage done.
I had a realtor that I’ve never seen before. I think he was in Iowa saying what a good time and was justifying why he said it was a good time to buy a house and that you could refinance later. And I replied that he was full of SHI tea, and he was going to hurt people, I went back to show my wife what he said, and I think he deleted his video as I couldn’t find it
Michael what you’re describing to get into a home is plenty of gymnastics. I still can’t believe how high home prices are.
8:32 that search by monthly payment hasn’t been working right. I can’t say for certain why, but when you crunch the numbers lightly it doesn’t match.
In my little town in mid Pa houses are selling in an average of 30 days.
Yh im single 27 make 40k a year before taxes. I'm gonna be in the parents basement for the next decade at this rate
Jajajajajajajaja you made me laugh. I hope in the near future you find a beautiful property that you can afford. Just wait it out.
Cut prices. Cut commissions. Build starter homes.
I'm from Little Rock....that's not Little Rock That's Sherwood...which is not to far outside of Little Rock...but definitely NOT Little Rock.
Love the vids!
We need rate hikes and they are absolutely coming. More rate hikes is necessary and painful medicine we must endure, to battle inflation.
Absolutely. Piggies just don't want to accept that.
Yessir bring on more hikes!
I wish they would stop calling them rate hikes. Ending inflation isn't a battle. It doesn't require "rate hikes." All it requires is for the Fed to stop inflating (digitally printing money). They did that. They called it a rate hike.
@@FreedomTalkMediaI’ll take I don’t know what I’m talking about for $100
Thank You for your common sense comments amid all this real estate insanity.
Salaries are NOT "$75K" in Arkansas.
Sure there are. Go on Indeed. There’s over 1500 job openings over $75K in the Little Rock area.
I have a home on wheels and pay 25$ a month utilities 😂, when the housing will go 50/60% less has well insurances and taxes I will think about to buy this pain on ass call "house" 😂
Great Observation. 👍. It is all manipulation. Inflation is. not going away as I went to the grocery store for a box of cookies selling at $8.98 from old price of $5.00. That is almost $10 for a box cookie that used to be $5.00 and “they” are telling us inflation has gone down from 9% to 3.7%. My wallet is the true inflation meter and not from any old tricksters. 😄. Great Observations. 👍
"THEY" are the principalities and rulers of high places. The prince of the power and the air.
This dude is going to be walking with a cane telling everyone, "The crash is coming". Bro, where are you walking? Careful not to step on the BS.
🤣
I appreciate you and all of your hard work! Thank you for keep us informed.
Who the F signed off on 3% interest rates? It was fun while it lasted, but anyone with any knowledge of economics should have known it would end in disaster. No one seems to care about the financial stability of our country. I worry for future generations.
Realtors are untrustworthy, colour me surprised.
I don’t see prices falling with inflation being what it is.
I love your reporting. God bless you.
Interest rates are not likely to go down for a while. Housing prices are also not likely to go down for a while. In my area, prices haven't moved. Things aren't selling, though.
I refinanced years ago and my fixed mortgage is $640 a month and property taxes are $3,700 a year, goes up about $100 a year, and home insurance is $1,800 a year, just got that $80 dollar increase balance due yesterday, my yearly cost of living increases go to these increases, Garbage and water goes up too, Kaiser hospital goes up too, but I'm still living middle class with a $60,000 salary, strange the only thing not going up is Gas and Electricity.
I read an article with a similar thing, but it said people would feel comfortable with 3 times the household income of $75k. So, they would like to be at $233,000 HouseHold income to feel comfortable, also in the article it said retirement accounts at 1.3 million is comfortable for most people in America.
And they produce what?
Loving your cross country videos! Safe travels!!
Can't wait until you do Memphis, TN's market!
I think there are more issues going on than buying or selling right now...🙏🙏🙏
My aunt was a realtor back in the day, she saved her money during good times, then when the “cycle “ run its course she was fine. Just saying.
Yep, that’s what you should be doing in realtor land. It’s always kind of boomer or bust.
10:20 wow, this house would rent for $2200-$2400 in OKC metro area. Every rental house here is basically $1 per sqft. And it sold for under $190k in 2018? Damn, little rock is definitely more affordable than here and i thought this was about as affordable as it gets.
There’s not much here to trigger your trendy tingles, however
LOL-while you're telling the truth, it cuts to an ad that tells you buy a house!
Thank you Michael!🌻🌼
We won’t see any more rate hikes this year. The Fed’s next move will be lowering rates around spring if next year
Consumers overpriced groceries and utilities are more important than a few commissions.
What if you dont need a loan?
Cost of homes are too high we can live with high interest rates
Great advice for retirees…
But what does a job in Arkansas pay me?
If you consider the actual cost of living including housing, I’ll bet you could make 30% less and be personally better off.
When all these “cool and trendy” places where housing takes up 60% of your income, it’s moot.
Shame on (greedy) realtors, not all but those who failed to plan, blew their commissions frivolously and are now begging! That industry has always been feast followed by famine, a cycle. Live during this famine off the assets you accumulated during the last very long cyclical feast!
Focusing on the payment is something that car salesmen do, and as we know, car salesmen are honest....
Don't do an ARM. Just wait it out. Times and dollars always change.
Yes of course they are and have been lying.
I’m a First Time Hime Buyer. What’s enticing me to buy are lots of grants available such as the HFA California Dream for All where they’re giving 20% for down payment assistance. Also home builders (kb homes) are offering Seller rate buy down to 5.85% which is the only reason i am even entertaining the idea
We bought a new home in July due to relocation and even earning $175k a year it was a stretch. Such a change from buying our last home in 2020.
If prices drop enough, foreclosures and short sales will boom again, sellers will be upside down