Why Are Home Prices In These Cities Crashing?
Вставка
- Опубліковано 25 чер 2024
- Logan Mohtashami, a renowned expert in the mortgage and housing ecosystem, explains his position on regional disparities within the U.S housing market.
Watch the full episode here - • The Housing Expert: "W...
Follow Logan:
X - x.com/LoganMohtashami
Instagram - / logan_mohtashami
Follow Eric
X - x.com/EPBResearch
Substack - epbresearch.substack.com/
No home owner ever sells their house because prices declined by 3%. But investors do, especially if they fear -3% is the start of a RE bear market. When a normal home owner sells a house they really do not add inventory because they add corresponding demand when they buy their next house. But investors can sell 1 house or 10 or even 10,000, but buy zero. I think RE could easily see an aggressive negative feedback loop as prices decline (from 7% mortgage rates), the smart money investors sell, spiking inventory, which will put additional downward pressure on prices encouraging even more investors selling.. and on and on that could go until the dumb money with no equity gets foreclosed. Or RE doubles over the next two years because we live in a clown world.
This is good logic. But what I’ve learned over the years is how aggressively the monetary/fiscal authorities will step in to stop the decline… reversing the negative mind set. Can’t always work but they’ll try
I understand your logic, but respectfully disagree. The topic is ironic for me as I just completed a workup of The Michaels Organization yesterday. They are a $5.7 Billion company that is the largest Section-8 Landlord in America. There are at least 100 other companies like them, and growing. Today's "Investors" are not the investor class of yore. This fallacy of the modern investor _Syndicate,_ being subject to "Traditional" buy/sell economic strategies is rooted in nostalgia, the sentimental longing for a supposedly better, simpler time.
The modern investor Syndicate has a no-lose, no-downside advantage. There is no scenario that would require them to mitigate losses, as there can be no losses for them now. Thus, no need to sell assets. Ever.
@@eskayp101that’s what’s kept the decline from being widespread so far.
It can raise the floor, but it can’t start a new bull market
@@shotelcowhat investors are you talking about who have no downside risk
@@shotelcoin my market prices are certainly dropping
NO one who got a 3% mortgage is selling their house unless they absolutely have to OR they get a huge number.
Im in Vegas and new home prices have skyrocketed. I would say existing homes have stagnated or slightly increased. But new homes have been going up since the start of the calendar year
It happened in 2008, specific cities in the nation like Phoenix, Miami, etc.
I got a condo towards the end of 2022, and it has already increased in value roughly 25%. It's crazy where I live, and the demand is incredibly high so it appears that prices are going to keep going up. Glad I got in when I did, but I'm worried for my friends and younger people.
fear a housing crash due to people buying homes above asking prices with little equity. If prices drop, affordability and potential foreclosures may arise, worsened by future layoffs and rising living costs. I want to invest more than $300k, but I'm not sure on how to mitigate risk.
Consider reallocating from real estate to other reliable investments like stock, crypto or precious metals . Severe recessions offer market buying opportunities with caution, as volatility can yield short-term trading prospects. Not financial advice, but it may be wise to invest, as cash isn't ideal in this period.
Due to my demanding job, I lack the time to thoroughly assess my investments and analyze individual stocks. Consequently, for the past seven years, I have enlisted the services of a fiduciary who actively manages my portfolio to adapt to the current market conditions. This strategy has allowed me to navigate the financial landscape successfully, making informed decisions on when to buy and sell. Perhaps you should consider a similar approach.
nice! once you hit a big milestone, the next comes easier.. who is your advisor please, if you don't mind me asking?
Finding financial advisors like Melissa Terri Swayne who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
I just looked her up on the internet and found her webpage with her credentials. I wrote her a outlining my financial objectives and planned a call with her.
Love it!
This interview is way too quiet. I need some suspenseful music to set the mood.