"We Haven't Seen ANYTHING LIKE THIS SINCE 2009"
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- Опубликовано: 5 фев 2025
- The U.S. housing market is facing circumstances that we haven't seen since 2009 in terms of how many brand new homes are sitting on the market for sale and sales volumes sitting at 30 year lows. What is going on and what does this implicate about the broader economy?
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The NEW POOR! Americans LIVING OFF THEIR CREDIT CARDS ruclips.net/video/pb5g3nhfsWc/видео.html
Happy hump day Michael & Lisi 🙂
All I can say is you're in your tank top and it's still January 😳
Definitely not the winters like in New England area where I lived for years...
2009 was the first time housing prices declined. Every other crash, the houses didn't go down but went up very slowly or stayed flat. I've been selling a bunch of the houses I bought from 09-12. Plan is to be all done with rentals in a couple years. Had 27 at one point. Bought most for 10k-15k.
One thing I noticed when looking for my small "vacation" home is how racially segregated our country is. I got sidetracked and started searching various areas because I saw affordable decent looking homes that were not selling. And when I checked city data in those areas, the homes were not selling because they were located in a city or town that had an "undesirable" racial community.
Yea, sorry I didn't know how to phrase that more pleasantly, but you get the idea. Go look up the racial makeup of cities like "East St Louis, IL" and "Macron, GA" and "Ford City, IL" as just a few examples. You'll quickly learn why those homes sit on the market forever no matter how cheap and cute they look.
I guess the point I'm making is there are plenty of affordable decent looking homes out there, but our racist society chooses not to buy those homes.
@@MichaelBordenaro Michael, I love you but could you please have a happy show for once before I have to do terrible evil things to myself to end my suffering? 😂
The new houses are crap. Most of them are built so badly that in 20 years they’re gonna need so many repairs it’s not worth buying at all.
They are built to
Last only 50
Years
and the mortgage is for 30 years
Truth! My grand parents house was built in the 20’s and that house was built like a tank.
@acs9787 yep. My house built in 1910. They don't use the sturdy materials they used to.
Absolutely!! They are throwing them up!! Pure crap!!
Excuse me Michael, but new cardboard bulit homes for $450,000 plus on a tiny lot,builders are NOT giving them away,geez.
@@michaellarsen3629 your watching it wrong this is extremely dry unintentional comedy watch the monkey dance hear his mimicry of speech behold his nonsense
Right? The lots are so tiny
I know. What the hell is this guy talking about?
Exactly all of those new homes I’m seeing are $450,000 and over and the ones that were that price 4 years ago are close to $1Mil that’s not cheap at all market is still way overpriced
He's living in his own Johnny Cage delusional reality
When we moved to the Charlotte area, almost 6 yrs ago, our realtor took us around the area to look at houses. We stopped at a new development, and went into their "model", which typically has all the bells and whistles in it to get you interested in the upgrades. It was such shoddy workmanship, we were shocked. Obvious gaps where baseboards should have met, cheap flooring, etc. We didn't even bother looking around the 2nd floor, we just walked out. Realtor thought we were being too picky. No, just being cautious buyers. Ended up buying a 20 yr old house that had been built much better, and was on an acre, not a tiny lot. So glad we didn't rush into anything!
There's not much single-family being built in Mecklenburg county anymore. Every new development is townhomes. The eastern side of Gaston county, too.
@@Avo7bProjectmy daughter lives in South Charlotte and all the back yards are super small and houses are close to each other.
@@Avo7bProjectall the CA wannabes are just too much now
Yes ridiculous how close to each other these four and five hundred thousand dollar homes are and they all look alike!
@@Avo7bProjectthey're building here in Mooresville. Sections of cramped townhomes over by Walmart. And now our lovely neighbors farm is being turned into a lot of single story homes, real close to one another. Will be a traffic nightmare! They say they're for 50 yr. old plus, hopefully that's true as every typical family anymore has 3 or more cars. Ugh!!
One reason they cant sell the houses because theyre built like absolute shit.
YES! clap boxes.
👍🏼
It's all ticky-tacky. All value has been sucked out of them. sticks, cardboard, particle board, vinyl, pvc pipes, asphalt shingles, etc...
But let's get some stainless steel appliances from China to dress them up.
Yes! The prices/incentives are really good, but the houses are crap. Give me a well kept house from the 60s/70s any day.
Kind of what I was thinking. I would NEVER buy one of these crap new generic mc mansions for any amount of money - or interest rate ..
I will NOT pay HOA Fees to anyone. That's a Scam.
Yes, if you're buying a house, tell the agents, no HOAs!
My HOA includes cable and internet, and it's $300/quarter. I'd probably be paying close to $100/month for internet, so it's a wash. My CDD, on the other hand, is outrageous. I don't feel like we get any value out of the CDD as it's just going to pay off outstanding loans. We never fund anything that adds value to the community. I'm done with this place and just need to get out now.
@ Yes, other people managing your life.
For PROFIT ....
@@TheRealHeavyGmy HOA includes utilities and it’s $260 a month! For a one bedroom in a condo community with 100 units in it! Ridiculous
The builders think they are selling at a discount but the reality is that people are still priced out.
Because the houses are selling for 4 times value.
Huge Corporations and Investment groups are being allowed to destroy the American way of life by raiding every opportunity for financial stability in the average family Turning Shelter into a money grab should never have been allowed. They've been given way too much power. Vultures . power
I'm not priced out maybe those people should get real jobs
I’m a realtor in Orlando I have been saying for 2 years the core problem is the over inflated home prices not the rates! A rate drop will only make things worse in the long run. Very good point sir
Say it louder.
Prices have went up radically since the end of the pandemic, throw in hedge funds and private equity sucking up a lot of the lower priced homes and you end up with what we have today.
You are an honest agent. Most refuse to say that.
In 2021 I sold my Orlando home for $365k cash offer in 12 hours. Today the same homes in the neighborhood are going for $465k.
If I moved back I would never even buy my old home for $365k.
Glad you're not my realtor. Mine grosses $50k a month and has at least three rental properties. "The core problem is the over inflated home prices"? What makes you say that? Over inflated by whose standard? H"This will make things worse in the long run"? House prices go up in the long term. There's graphs of that you know, like the All-Transactions House Price Index on the St. Louis FED website. There were a lot of people interested in buying houses when rates were half what they are now. They would have to give up their low mortgage rates if they moved, limiting supply. I know lots of people who can afford to buy a house in Orlando. The rich self employed group of people are the main drivers of prices, and not the people making the average amount of money in the US. The housing market is neither fair nor equitable. The rich get richer.
Outlaw corporations from buying single family homes. Problem solved.
hear! hear!!🎯💯👈
Black Rock, Berkshire,-Hathaway, and other large corporations have cornered the market, and will budge very little on the prices. This is the New Normal!
Go the full stretch. Ban 2nd home ownershop
@@MikeAnderson-jd2rw and private equity firms. Also, if the home is not owner occupied or rented (sitting vacant to park money) double the property taxes. Viola.
@@firestarter1888 Some people rent houses out. And some people will not qualify to buy for many years.
I'm in WA and my insurance went up 50% in 2023. They DID explain that it was due to "the number of UNINSURED drivers in Washington." Meanwhile, my property tax TRIPLED in just FIVE YEARS. You are spot-on. If people want $379,000 for a two-bedroom, better start paying us ALL $50 and hour, yet NOBODY will give us that. We need $500 a day to pay today's prices on housing, food, cars, and goods.
i feel like i have jumped in a last car of deporting home buying train lol i have been investing in rentals and now making just that 450 per day and able to keep investing
Washington State is a woke, Marxist dystopia. Vote better.
If you want free home.
Move to CUBA
MAGA🙋♂️
Another dis-satisfied King County voter. I feel for you. I left years ago
@@SamuelClemente7718 why are boomers given homes on golden platters but we cant ask for the same conditions as them? im making 6 figures and still cant afford a home lol the place i live has had the value of houses almost triple in just the past 10 years... ill ship you to cuba instead if it makes america great again
100k a year is 1,300 take home a week. A 300k home at 7% is 2500-3000 depending on property tax. 100k CANNOT afford a 400k home
💯
Of course you can afford a home, it will have to be a shit box though. You can find them for 200K or less but they need another 400K in renovations. 😂
@@nano.joe.4851 you’re telling me. I make 100k and looking for a house for 300k. ALL of them are SMALL AND SHITTY
Kind of sudo math you doing?
100k a year is over 2k a week before tax
Yeah it’s crazy
I have a 4% rate and I feel like I’m getting ripped off
Last year I made 150 and I feel like a pauper
Taxes and insurance will take you out
Best wishes all 😊
Everything in the U.S. is just a thin veneer, with nothing underneath, especially these crappy new cardboard houses!
Pressboard
OSB trchically Its garbage yup
The same goes with our culture, just thin veneer, nothing underneath.
And the people themselves 😂
@@Tonyinthephilippines
But land whales cast a huuge shadow in Amerilardia
I am so thankful that I paid off my mortgage and became debt free before retiring.
That's what your supposed to do....👍👍
Now, if they could just end property taxes….
They will suck your retirement funds dry when you start needing more medical care as you get older.
The key is to leave the US and move to a country with a sane healthcare system instead of an extortion racket.
@@chrisweidner4768And how do you think utilities, roads, schools, police, and fire departments are funded?
@ Thinking they could be funded by the taxes we pay for everything we buy. How about not sending billions overseas to criminal entities.
My Son is an electrician and makes plenty of money to buy a new home. He bought land is gearing up to build a small sub 1ksqft house and buying sustainable gear. These new big homes are just a scam to enslave people forever.
This housing situation is unstoppable and inevitable because is made intentional on purpose by design
It's actually all over isn't it. It's time to make peace with God if that is one's thing because the road ahead gets far darker than overpriced homes and overpopulated cities.
@@dudemanismadcool Exactly
Ssme thing going on here in Turkey Crazy prices
Get rid of the Deeep State.
@@dudemanismadcoolWe are supposed to ascend.
A key factor often overlooked is that over 25% of new homes are being acquired by investors, rather than individuals seeking primary residences. Even if Baby Boomers decide to offload their properties or more housing stock enters the market, it won't alleviate the underlying issue. Wealthy investors will continue to absorb the available inventory, which will keep home prices elevated.
There's also a lack of discussion about the role that major financial institutions-banks, private equity firms, and giants like BlackRock-played by purchasing properties post-2008, treating them as investment assets. It's impossible to fully understand the current housing crisis without acknowledging this trend. Additionally, larger luxury properties are inherently more profitable than smaller, more affordable homes, leading developers to prioritize luxury developments for higher returns.
This sounds great! Do you have any professionals or advisors you could recommend? I could really use some guidance on proper portfolio allocation.
Thank you so much for the suggestion! I really needed it. I looked her up on Google and explored her website; she has an impressive background in investments. I've sent her an email, and I hope to hear back from her soon
She serves as my family’s personal broker, as well as a personal broker to many families in the United States. She is a licensed broker and a FINRA AGENT in the U.S.
She’s the best signal provider in the market. Knowledgeable, level headed (no loss like some other traders who recently jumped on the bandwagon).
We've been priced out of New England forever. 500k + for a house that'll at minimum need 50k in work. And this would be in an average area, not a "desirable area" probably looking at 650k bare minimum with high taxes.
that's simply too expensive
And the worst part is there is no way in a practical sense to reverse this. It has been allowed to escalate way past the rate of inflation year-over-year for last 35 years or so. To correct it would take stern anti-flipping legislation and even with that it would take decades to bring the real estate industry back to reality.
1 million here in San Jose ca and the bad part of town
@@djcesar7934 yeah 1 mil wont get you much in san jose
@@djcesar7934 It's heading that way in New England too.
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
I will be happy getting assistance and glad to get the help of one, but just how can one spot a reputable one?
There are advisors in cities around you but I needed services of one who can guide me irrespective of location. ‘Lisa Grace Myer’ comes highly recommended especially in times like this. I am hedging and haven't lost much to the recession. I found her in 2020 when the market was at an all time low. Look her up and thank me later.
I am on her website doing my due diligence. She seems proficient. I wrote her an email and scheduled a phone call. Thanks for sharing
House in my mom's neighborhood just listed for $450k. 5 years ago, this would have sold for $300k, had a 3.25% 30-year fixed mortgage, 20% down and T+I, payment would be $1450. A family earning $80k a year could afford it. Median income in town was $70k. Today, that $450k house won't sell. 7.2% mortgage. 20% down and T+I, payment is near $4000. Family earning almost $200,000 a year would be able to afford it. Median income in town is $78k. Prices must come down.
Or investors buy it and rent it
@@ColetteSpencer-k5o the cap rate is too low at those prices.
@rathelmmc3194 agreed but...where i live...they are buying up the entire coastline properties in imperial beach. It sucks
I'm selling my house in the spring. Let me sell first, and then they can come down :)
Excellent analysis.
I'm German and everybody knows that our income tax is higher, but when my mortgage is paid, my costs will be less than 1100 USD per year combined for homeowners insurance and property tax
That's great, but your economy is crashing, your nation is overrun by the Third World, your leadership sucks, and your green energy policy has failed. Why would you want to live there?
The U.S. is a big country. Florida is a big state. I have a 3% mortgage on a house
on a one quarter acre lot. If I decided to pay the mortgage (which I can), I would pay $300 per month taxes and insurance. The house is in a small town (Inverness) in Central Florida with a 125 mile bike trail network that goes through beautiful horse farms, parks, forests, etc. Warm all year round. The key is to be a bit contrarian and now follow the crowd. I bought away from beach, no HOA, low maintenance house. Not everyone in FLA is in the same situation. I go to Miami quite a bit. It would be very difficult to buy there. Ocala would be a better investment.
Germany has stayed with Keynesian economics, therefore its people have a much higher quality. Here in the USA, we adopted supply side economics in 1980 & transferred all the wealth to the top 1%...
yes, all the costs around housing here in Germany are a joke compared to the US; at least that is a benefit here
This is a really interesting take on the housing market. People are being impacted by the long-term decline in property prices and the housing market. I recently sold my house in the Sacramento area, and I want to invest my lump-sum profit in the stock market before prices start to rise again. Is now the right moment to buy or not?
Safest approach i feel to tackle it is to diversify investments. By spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown. its important to seek the guidance of an expert
It's true that many people underestimate the importance of advisers until their own feelings burn them out. A few summers ago, following an ongoing divorce, I needed a significant push to keep my company afloat. I looked for licensed advisors and found someone with outstanding qualifications. She has contributed to my reserve increasing from $275k to $850k regardless of inflation.
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
Her name is. ‘Melissa Terri Swayne’. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I just Googled her name and her website came up right away. It looks interesting so far. I'm going to send a mail to her and let you know how it goes.Thanks for sharing truly!
That $420k figure is a joke. Its over $500k for most fly over areas.
If your household income is under $200k you are priced out
No theyre around 420K here in Minnesota.
@joespinella7773 I don't want to live in Mogadishu that's also cold
@niciassmith1204-- "Fly over area" is used by smug and self-important people.
It’s term and we know what he meant. That’s the point he want being smug
And everybodies salaries are less than 200k
Thanks for bringing up the fact that it's the prices....not the interest rates.
Nationwide insurance just dumped us for no good reason. I can only find home insurance that is 67% more than what we’ve been paying for years. What a scam. You can’t trust anything anymore. I’m in Florida, Ron needs to put a stop to this nonsense.
Try Progressive.
Good luck getting the "greed is good" guys to care.
Nationwide is a private company- they don’t have to do business with you anymore than you have to do business with them. If you want the government to run your insurance, that can happen. In CA, we have the FAIR Plan, which is not a private company and is overseen by the state. Florida could probably set something up like that for you too.
Self-insure if you think insurance is a scam.
"Ron?" 🤣🤣🤣🤣🤣
The rent is too damn high!
move then
It is even too high for POS.
You said the thing!
Buy a house then and join in the fun.
Home prices went up too high too fast. I built my first brand-new home in 1989 in Florida and the interest rate was 10%. The price of the home was not even close to the price it costs today. And taxes and insurance were very affordable.
The prices for material to build a house has sky-rocketed in the past few years. It's part of the inflationary trend we in the U.S. are, and have been, experiencing. That trend is due to many things like COVID shut down for 2 years, and from the decliing value of the US$ due to our government spending like drunken sailors these past 5 years. If that spending continues, the devaluation of the dollar will continue and prices will continue to go higher and higher.
@@Hank520Tube Prices started soaring when corporations bought up all the residential homes when people were moving to Florida during COVID because corporations told them they could work from home.
Corp owned homes would release a home for sale like throwing a bread crumb out to a flock of birds one at a time and people from out of state were outbidding each other for a home. This whole scenario caused an artificial inflation of residential home prices because of corporations.
All of this was caused by corporate America and Florida government..
Existing homes do not need lumber, they are already built.
Those 1000.00 a month car notes are killer
Yeah, it is, mine is $988 a month…
@@Maynardd
You gave me a headache, Maynard
@@jimcrawford3185 🤣🤣🤣
I haven't had a car note for years and still can't afford a house. I make decent money too. No i don't go out and party every weekend nor spend money on dumb stuff.
@@Maynardd Why would you want that payment?
The cost of Mortgage, Hoa, taxes and insurance in Florida is criminal
You hit the nail on the head! Insurance should be optional to make it competitive.
Should you be labelling something as "criminal", just because you can't afford it? FL doesn't have an income tax, of course they have higher property taxes than some other states. I pay more than the FL state average for insurance in my area. The largest cost is cheap like borscht to me, compared to Orange County, CA. There's not a single city in that place, where the SF house average price isn't over a million. I know lots of people who live in FL and can afford to pay their mortgages, HOA, taxes and insurance.
1.5 million Citizens insurance policies at peak don’t lie in early 2024 just on the insurance affordability issue alone; good thing now the depopulation program has helped place those numbers under 1 million…and then the HOA hikes…its a bigger issue than my wallet
We moved back to Maine 5 weeks ago! We lived there for 5 years. Hurricanes, floods, HOA fees, insurance, and crime! Glad to be back home!!
You need to keep in mind that when the home value goes up so does the insurance and taxes. Last couple of years my home went up by 5 to 10 percent each year but my insurance rate and taxes went up by 15 to 20 percent. Today half of my monthly mortgage payment is for Insurance & property Taxes. Yes, I do live in the midwest so home value are going up as Michael said but not as fast as Insurance and Taxes!!!
My new house is a piece of crap. My previous house was a 3350 square foot custom built house. I miss it!
The Chubb CEO was on CNBC today screaming how they had their most profitable year ever last year.
Was he actually “screaming”?🙄
Problem is NOBODY CAN QUALIFY for a LOAN
no down payment money, cant make the payment because it is too high, Broke from buying groceries. just to name a few
The ability to payback the loan, because of job insecurity, makes it hard to qualify "
Not when homes are selling for 4 times value, no they can't.
If you can't qualify then you can't afford it the bank is doing you a favor.
@@jwill540 YUP....some people insist on buying right now and it is the best time to wait it out.
Housing prices are dropping in my area, and still nobody is buying, it's great!
There will get to a point where they will even pay you to get a house ! 😉
Don’t be the sucker who buys right now. Let them watch the value of their home evaporate into thin air and get fawked!
What area?
I live in Central Florida and prices are coming DOWN!!!
Car payments are same as mortgages used be. Wages have not shifted up in decades - in real terms they are lower. Home prices are insane. It's a home. It ought never be an investment product. It's a basic need. What's next? Food as "an investment.." My cheese went up 5% this week!!! Yay,.,, not.
Love those Trees, especially the Live Oaks"
I like Michael's channel because it is one of the VERY few where the person is not hawking some sponsors product or service. It is unfortunate that most RUclipsrs need to have or take on sponsors in order to generate income i e. monetize their channel as a side hustle. Often we have to listen to pitch after pitch to buy a product, service, subscription, membership, try out some system, program, or buy tickets to attend some conference or event. Michael gives you information without all the promotional pitches, he'll briefly mention links he provides to stories and to real estate people he knows as a referral. Keep it up Michael, good job, keep it simple. 🙂
That's how they make their mortgage payments, credit card etc.
Thanks for taking us on a lovely walk, Michael.
A Karen took a pic of him walking when getting outnof her car in the neighborhood. smh
No builder in WI is giving these hunks of crap away. 1400 sq ft shoe box vinyl siding on a 1/4 acre 500k.
These new homes built by corps out of Texas here in Santa Fe NM don’t make it 5 yrs! Without starting to fall apart! Foundational problems, roofs, stucco, plumbing! Then these new home buyers get stuck having to fix these crap homes out of pocket when they got assistance to buy the home in the first place!!
Sad. I love that area. My brother bought a place there.
they are not giving them away. the prices are way to high. i only want a small house, not 4-5 bedrooms and 3 bathrooms.
No no no, you need to aspire big to get big things in life !!!!
Don't settle for less than a mansion with its own plane strip, giant pool and tennis court !!! 😉
@@chicogozosodecabellosedoso john travolta has that but he is an hour away. maybe i could borrow his jet.
Seriously what is it with boomers and wanting a 4+ bed 2+ bath home when their kids are grown? Makes no sense!
@@Nick-ue7iw right, and half the time they have nothing to do with their kids, no one is visiting.
It’s like their egos can’t take the downsize.
Right? All I need is a small 800 sq ft house. 2 bed 1 bath (1 bedroom for an office, and 1 for sleeping in) and a small yard that I can fence in and grow some tomatoes, potatoes, and drop a couple fruit bushes in so I can make preserves.
When people with alot of money move to cheap areas and over pa, it ruins everything for the locals and makes it unbearable to afford to live there. Its sad that its continuing to happen for the past 4 years. Thanks for mentioning the trifecta. ( house price, insurance, and property taxes)
Work harder longer hours. Move
In the 1950's Dick Proeneke built a beautiful log cabin by himself( for no money just basic hand tools) in one of the most remote places in Alaska. Its still there in good condition and considered a national monument.
Did he pull a permit?
His videos are remarkable, on Utube.
I just love these feel good stories Michael brings us daily...
😅
🤣😭 now that I'm depressed I'll be going now 😂😂
I don't know about Florida, but here in Texas the value of my home increased well over 250% in less than 3 years!!! That massive increase is on display when pricing any homes in this area, new or resale.
A 5% reduction is nice but that's an absolute joke when you consider everything just increased 250%. They've got a long long way to go before housing prices are back to where people can actually afford them.
Where in Texas
Your work is inspiring, you're real, keep creating!
Homes are not worth buying.Cheaply constructed and cannot resell.Trapped
Another valid reason new built homes constructed by the listed companies are not selling is that because most of them are crap. Shodily built, ever corner that can be cut, cut; and, exorbitant insurance & property taxes in many jurisdictions. But Michael is right, we haven't seen the worst of it yet!
Prices are too high. With rates not subsidised in ’24 and mortgage still high , currently seeking alternatives to maximize savings without an RV move or taking a loan. I’m seriously contemplating the latter.
Affording our mortgage is tough as well. I have suggested cashing in, renting or relocating, and investing the rest in the stock market.
If you can afford to relocate, you should manage the mortgage.
if you are looking to invest in the stock market, I suggest you Consider a fiduciary with mortgage-backed securities knowledge for guidance. Prices today may look like dips tomorrow.
Working with a financial advisor has been a game-changer for me. They provided invaluable insights and tailored strategies that aligned perfectly with my risk tolerance and financial objectives. With their support, I've seen significant growth in my investments and gained confidence in my financial future.
@@PhilipDunk this is all new to me, where do I find a fiduciary, can you recommend any?
Thank you Michael for making me feel like my problems are NOT such a big deal at all.. Feel like a King watching your clips.. Thanks again
Did you notice the lady get out of her car and take a pic of you? “He’s walking with a camera and talking in my Niebor hood! Must be up no good” I can only imagine if you had long hair or god forbid a dark tan! G’s calm down lady!! Thankz for all your very good info keep it up!!
Karen alert LoL 😂
School and local tax are the killer
Yes, especially here in Texas.
I think the problem is that most people do not have confidence in the next thirty years and are trying to find a better quality of living rather than being bound to huge corrupt corporate institutions.
Just so every home owner is aware. There is someone who sued the state etc for property taxes basically being fraudulent, and they've proven it and won their case. This applies to literally all states and your property taxes. If you can find the story i highly suggest you look into it. Theres also a way to get your property taxes dropped through appeal
You are partially correct- you can contest the value of your house if you think it is not worth as much as the value that your property taxes are based off. You don’t need to sue- you can just talk to your local government about how to have it assessed for a lower value. If your house has been damaged or otherwise overpriced, you can get the assessed value lowered, and thus pay lower property taxes.
I don't see home prices ever come down. People still buying it😢😢😢😢😢
When people stop buying then the prices will plummet !
Prices absolutely do come down when the demand to purchase evaporates. I sure saw it in 2009. Good neighborhoods and get-O neighborhoods all fell in asking price as foreclosures became the comps.
@@Avo7bProjectnobody is going to sell and give up their 3% interest rate
@@nano.joe.4851 Don't say "nobody". Some people need to move for a new job. Some boomers will pass away, and the kids don't want to live there or don't like that style of home. Some people get divorced and sell the house in a settlement.
It's a strange market, because builders also seem to be desperate for land to build on. Anyone in my locality sitting on buildable land gets a cascade of inquiries. You'd think if homes are difficult to sell, that there would be little demand for lots.
If they stop building it looks bad for the economy.
Even in Bakersfield, and Fresno California you cannot get a newer house for under 310K
The national average is 400k +
I drove through Bakersfield many times - it's that expensive even there - wow
@ and the average income in Bakersfield is 32K
why not move out of state and make room for those who can actually afford to live here?
@@occupytosavetheworld The jobs in the area can't pay for the homes in the area. That's how we Know it's a Bubble. No out of Stater with a brain would move there.
I bought a house in Frederick Colorado in 04. It was only about 2 years old and it was a piece of sh!t. Owning that house was like having a second job. The foolish mistake was not holding onto it as it listed recently for about 3 times what I paid for it. Guess there is a butt for every seat.
Really tough market. Prices remain high due to low inventory. Millennials are staying put locked in at 3% interest rates. They're not moving. Add increasing property taxes ( due to inflated perceived value) and insurance rates skyrocketing( all the disasters) and they are staying put for sure! Tough situation for new buyers.
I pay almost as much for property taxes as my interest on the loan
Most insurance agents don’t know either. Carriers push volume, not quality.
Brace for impact, folks. It’ll get dirty…
In some areas there’s been over building. In others, there’s been very little or no new building due to limited land and the high cost of new construction. That’s why housing prices and demand vary from one location to another.
Thanks for your interesting overview. Same situation here in Germany, even mobile homes and caravans have doubled in price the last Years.
We have some new homes that have been for sale over 2 years. I would think they would discount them. $250,000.for a small tract home. Absurd! 😢😢😢😢.
Thanks for the walk n talk Mike, great to see the sunshine, beautiful surroundings, looking out on the grey skies of the uk…..
Thank you to our host for this walk around outdoor tour. Great topic. Everything in RE depends on interest rates and inflation rate. Obviously, cash is King.
In SDak, my home ins went up 46% this year, and 10-25% in previous 3 years. Sickening, almost ready to self insure my paid off home. Ended up with State Farm who cut our rates in half.
Why should interest rates exceed 3 percent for a median home anyway and younger buyers. Interest rates should adjust for the buyer and not the wealth of the lender. Also, no more Singal home flipping...!!! It just turns into a greed factory when times are economically favorable.
Say no to low interest rates
Say no to free money
One of the big factors in insurance claims is from plumbing leaks. It seems like better quality and reliability is needed. Both my mom’s and brother’s house had major floor damage from small water leaks.
Yep. In one of the states you mentioned. F**king unbelievable. My insurance company that I’ve had for 25 years stopped covering home insurance, causing the search for new coverage. And bang, cost increased.
In the Midwest by the way, Michael.
Need to emphasize a state and home area with no natural disaster issues. Just told that there was no profit for the company to insure homes. Total greed. Insurance is, and has always been a scam.
@@Smt37 Theres no state like that. Literally doesn't matter where you live in the country. Every single state has some type of extreme weather patterns that will inevitably cause damage to your property at some point. It's not a matter of 'if" only when. The extreme polarities in weather are 100% due to global warming and unregulated carbon dioxide emission. Unfortunately half the country seems to think that this is just some made up conspiracy instead of actually trying to solve the core issue.
Sure Steve. We believe you. Has nothing to sue with the climate is always changing.
Mike is right about one thing for sure ... it has to come to a head sooner or later
A new dawn in the free world, we should see alot of changes really soon, especially in the digital and financial markets.
Spot on. The market presents different opportunities to create passive Income, with the right skill and proper understanding you're good to go.
Facts 👏
You're right, the best time to buy in the market is when there's fear. A huge part of my growth has also come during the bear market. This last year alone, I have scaled from 180k to over 354k.
How were you able to make that much?
Seems like I'm not lucky enough.
It's crucial for individuals to diversify their portfolios, a lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications.
Fed did not cut rates today. Prices in most sub markets are still inflated.
I"ve seriously never seen so many commercial for lease signs. It's everywhere here in North Texas salt and peppering commercial strips and business areas. I've also noticed the neighbor see neighbor do starting to take effect in the residential neighborhoods. It's early, but already enough to notice for sale and or for lease signs popping up.
Where in North Texas are you?
I've noticed this too. Large lots are never "for sale". They have "available" signs. It seems like brokers/middlemen buy up the best parcels and have a hedgeonomy.
Home owners insurance is why I refuse to buy a cardboard built home.. 💯
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God bless 🙏
@@The_LION_Emperor
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🙏🏾
This has been posted for years. Scam.
Property taxes! We just got a notice that our mortgage is increasing. Over night, over $200 more a month.
$110,000 salary to own a $450,000 house? It’s closer to a $200,000 salary.
Isn’t it 3X of pretax salary? Then 110k can afford $330k house, not $400 one
I thought you should buy a house that was less than 10x your yearly salary. That way you can get a 30-year mortgage and pay 30% of your salary.
@@olhahoy6404the difference between 3% and 9% interest rate is a big deal when determining the price of the monthly payment you can afford.
Intelligent observation, as usual. You do a great job of illuminating the underlying currents in the housing market.
I wish we have those prices in LA. We can’t buy a small condo in the old building for the price of new construction house in Florida
I've also read that supply is going to be gradually but consistently increasing as the homes currently owned by baby boomers end up on the market, because they died, can't live alone, etc. I read that they disproportionately downsized less than prior generations when their kids moved out, so they are in larger homes than were traditionally needed by a single person or a couple, but eventually, all of that stuff will end up back in the housing supply.
Regarding housing prices in the Midwest, you have a point, but the salaries in the Midwest are also lower. So unless you have a job you can do anywhere or don't need a job at all, it's not necessarily more affordable. I live in the Los Angeles area but I grew up in central Illinois and my family is still there. I see the differences on both ends.
I am 100% convinced that nothing short of a massive increase in defaults, reminiscent of 2008 will bring the price down. People will continue to take loans that they cannot afford as long as the bank will keep giving them money.
Home buying has become the have’s and have not’s. Plenty of people still buying homes. Not many young folks anymore. The market will always be good for someone. I feel bad for the younger generations.
New homes are badly built and current homes for sale are priced too damn high. Sellers are holding onto the covid market prices. That matched with high interest rates do not add up for anyone to buy!
Insurance needs to fundamentally change. Every penny you pay, period that goes unused should go into a trust. The insurance company can make money on that justice banks, but you should never be denied coverage and that money should follow you and gain interest until you need it.
@cer2299-- That would be called a cooperative. That is not a bad idea. Start one up now.
That’s not insurance, that’s your own savings! You can do that if you want, and many people do. However, the point of insurance is that you pay a smaller amount than you would need to save on your own, so that if something bad does happen, you will get more money out than you potentially put in. You can’t just get a refund if you don’t use it. 😂
I live in Kansas city Kansas, a beautiful place to live in the Midwest , a growing city and the homes are still high and the low price homes are in terrible areas.
Palm Coast has a bunch of new ones just sitting on the market. Some have been sitting for over a year. I see a lot of new house resales, too. People who bought brand new homes just 1-2 years ago and are already selling.
Ouch. Selling an almost-new home in competition with truly new homes across the street.
yes...my sister‘s home in Sarasota worth few $Ms so they go bare on homeowners insurance.
Hi from Australia and glad to see things improve there.
If interest rates come down prices will go up. You'll have to borrow more at the lower rate so your monthly payment will be the same as the higher rate anyway.
First video I’ve seen of yours and I’m subscribed already. Been talking about this and somehow people don’t seem to understand.
Building garbage, I feel bad for the ppl who buy them. How are they passing inspection???😡
Because inspection is a joke
Biden is making the inspections in person.
Sheetrock and insulation will cover many sins.
Great video! You explain what is going on in the market so well, even my 7 year old can understand it.
I could pay cash for a house near Zepherhills but I’m not willing to pay for the high tax and insurance, I’ll continue to just pay my low camping fee and keep my $$$)😮
Price, Price, Price! Thank you! Nobody ever talks about the real problem other than you. That and the other carrying costs of insurance is the big problem.
It's pretty easy to avoid new houses since the majority being sold are existing homes.
Dont want to be that guy but the reason cheaper homes arent selling is because they have already been bought up to rent out. Builders need to build smaller qaulity starter homes. Not mcmansions. The people with that money already own homes
Yep!
Small homes don’t generate taxes and low income people don’t pay enough taxes and use more services and lower property values. So zoning/gov does not encourage that building bc it does not benefit. Not my opinion just reality
In Arizona, a good percentage of homes that are priced decently are zoned for 55+ communities. They’re definitely NOT incentivizing brand new homes to anywhere near affordable for the working middle-class.
I'm in Los Angeles. Home prices are not coming down here. Unlike previous down turns, there was not over-building in Southern CA.
Reason...no land.
I’m in Brentwood (west LA), and prices were coming down for the past year or so. Houses were on the market for twice as long and were selling under the list price. It was between 5-10% lower than 3 years ago. However, with the fires, I am assuming prices will rise quite a lot!
Who would want to live there?
The MSPUS came out.
We are still $419k houses and $2700 gold oz.
About a 160:1 gold to house ratio.
Under 240, houses have historically done better than gold will for the next 5 & 10 year periods.
Better means larger price increases coming.
Houses can double for the same gold price.