"American's Can't Afford To Buy a House Today!"- Mortgage Debate With Barry Habib
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- Опубліковано 13 бер 2023
- In this short clip, Patrick Bet-David, Barry Habib, Adam Sosnick, Tom Ellsworth talk about mortgage rates and how they will affect Americans.
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I think the retirement crisis will get even worse. A lot of people can’t save because of low paying jobs, inflation, and insane rental rates. And now that home ownership is out of reach for middle class Americans, they won’t have a house to retire with either.
Rising prices have affected my intention of retiring at 62, working part-time, and building my savings. I'm worried about whether individuals who weathered the 2008 financial crisis found it less challenging than my current situation. The stock market's volatility, coupled with a reduced income, is making me anxious about having enough for retirement.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
Mind if I ask you to recommend this particular coach you using their service?
"Carol Vivian Constable " maintains an online presence. Just make a simple search for her name online.
'Carol Vivian Constable, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
Asking a real estate agent whether you should buy a home right now is like to asking an alcoholic whether they think you should have a drink lol. Homes in my neighborhood that cost around $450k in sales in 2019 are now going for $800 to $950k. Every seller in my neighborhood is currently making a $350k profit. Simply unreal. In all honesty, deflation is what we require. The only other option is for many people to go bankrupt, which would also be bad for the economy. That is the only way to return to normal.
Home prices will come down eventually, but for now; its best to offset some of your real estate investments 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
Personally, I can connect to that. When I began working with "Christine Jane Mclean," a fiduciary financial counsellor, my advantages were certain. In these circumstances, I would always advise getting professional help so they can steer you through choppy markets and just give you indicators and strategies for knowing when to enter and exit the market.
@@DavidRiggs-dc7jk I'd be glad to get the help of one, but just how can one spot a reputable one? How did you spot this Christine ?
Christine Jane Mclean maintains an online presence that can be easily found through a simple search of her name on the internet.
@@DavidRiggs-dc7jk Interesting. I am on her page now doing my due diligence. She seems proficient. I wrote her an email and scheduled a phone call. How long do you think it will take before she replies?
The American dream died with the single-income middle class.
Fact....single income making $60k a year can barely afford an appartment (at least in my area)
@@meyou4923 good ole globalism lol
@@meyou4923 They is a hell of a lot more to it then that! Instead of our government choosing fiscal responsibility, they figure out new ways to milk the population. Every increasing regulations that have more to do with sending you a bill instead of fixing a real problem. It's the bureaucracy and political greed that is killing america right now.
@@meyou4923 yes and remember the Dems and the GOP both benefit from this. We need better representation and freaking age limits!
I disagree. I think the American Dream is still alive. The idea that you can buy a single family property, have a family, and retire with dignity still exists.
Being able to do that with 1 income, or doing it in the city you wish to live in, may not be possible if you aren’t willing to work a lot of hours and have a dual income household.
You’ve got to grind. It may mean you have to retool to find a job that pays $100k or more. It will most likely mean you have to drive used cars and delay vacations.
But the American Dream is still alive. I’m living it.
The American dream died with the dollar menu
lmao 2 for $5.50 sausage eggs now talk about inflation
@@Striker50_ Carls Jr advertises pick 2 for $10!
It’s all poison anyway, stop eating it
THE HASHBROWNS ARE $3 NOW!!!
I remember when all day breakfast at McDonald's stopped in 2020... But yes, the dollar menu was iconic and I have so many memories as young 20s just smashing dollar menus. Shame
The banks said I can’t afford a 1300 mortgage so instead I pay 1500 a month in rent to my landlord
The banks are saying we don’t think you can sustain the ongoing expense long term over 30 years and 360 payments. There is much more than just a mortgage when buying property all which a typical renter pays zero. And yes there are exceptions, nevertheless, the vast overwhelming majority don’t.
@@d1986ben ok
@@d1986ben well if he saved that $200 a month to start with. Unless something big like the oil burner goes or the roof he’d prob be fine.
@@d1986ben Thats bs logic, you have a greater time frame to get your shit together with a mortgage, can refinance, can take out a HELOC, etc to continue to pay the mortgage. Plus on average peoples income increases over time.
The mortgage is the least you will ever spend on your house. That 1300 doesnt include repairs. Rent is the max youll spend.
I'm putting off taking out a mortgage for now and just focus on the stock market until the economic storm subsides, and since there is a bull run, the 100k I might have used for a down payment could make more some money in the stock market, but I'm not very familiar with stocks.
If you're not one who understands strategies to invest in the market, why not seek a financial advisor to help you grow your portfolio? You could make a lot from the market, but you may not grow, or even make a loss, if you're not well versed.
Having an investment advisor is the best way to go about the stock market right now. I’ve been in touch with a coach for a while now mostly and I made over 95% profit within a short time.
That's impressive! I could really use the expertise of your advisor. Could you recommend who you work with, please?
It's good you make your own research. I personally work with *Sharon Louise Count* because she handles both beginners and people who have portfolios very well.
Thank you for this. I think I might take similar steps.
I'm hoping there will be a housing crisis so I can buy cheaply when I sell a few houses in 2024. As a backup plan, I've been thinking about purchasing stocks. What advice do you have for choosing the best buying time? On the one hand, I continue to read and see trading earnings of over $500k each week. On the other side, I keep hearing that the market is out of control and experiencing a dead cat bounce. Why does this happen?
Investing in real estate and stocks might be a wise choice, particularly if you have a sound trading plan that can get you through profitable days.
You're not doing anything wrong; you simply lack the expertise necessary to make money in a bad market. In these difficult circumstances, only really skilled experts who were forced to witness the 2008 financial crisis could expect to generate a large wage. I've made over $350k since I started working with a financial expert.
@@mariaguerrero08Mind if I ask you to recommend how to reach this particular coach you using their service? Seems you've figured it all out unlike the rest of us.
"Camille Alicia Garcia" maintains an online presence. Just make a simple search for her name online.
Thanks a lot for this recommendation. I just looked her up, and I have sent her an email. I hope she gets back to me soon.
Until property prices allow the average full time worker to afford a starter home on a 30 year mortgage at no more than 1/3 take home pay, they are overpriced. Period.
All The financial instruments or adjustments mean nothing unless this happens.
You got it most people can't seem to grasp this
Exactly. The treasury can print all the dollars it likes, but the value the public places on the dollars circulating in the citizenry detemines the value of the dollars held back in treasury. That's what lets you 'sell' those dollars into the public by procuring services.
Money that doesn't actually buy you much does not have value. People won't chase it.
These COVID era, upward transfers of wealth made dollars scarce but to the point of undercutting peoples belief in the value of chasing them, especially when employers tries to get people into the office during the height of the pandemic.
That was a wake-up call to the worker how expendable they were because of their need/will to chase dollars. Now they have to fake BLS stats to make everything seem normal.
🇺🇸 Housing is very affordable. Just get a 60-year mortgage!
avg monthly take home pay 2300. 1/3 of that is 759. Can u even rent a studio in any city with a pro football and/or basketball team for that or nah?
@@newsarticlereviewskid6630 exactly my point
When rent is equivalent to a mortgage payment you know things are fucked up
Here in Canada, a mortage is much much cheaper than paying rent. Has been for a long time. And yeah it's pretty bad.
@@chrisjansen1943 ya I watched a video on YT by Laura’s southern talking about Canada’s housing situation. It was abysmal to say the least. The only place worse than America
You ain’t lying
Rent will always be slightly higher than a mortgage. The owner of your rented property has a mortgage. The mortgage plus the cost of maintenance will always be figured into the the price of rent. If not, the landlord will take a monthly loss. Business doesn't work this way. Rent on single family homes is always higher than a 30 year mortgage payment. It's basic math.
A friend just bought a house near phoenix and the mortgage was $40 more than the rent of a 1 bedroom apartment. $1700 a month.
Bottom line: Just because you “qualify” for the loan does not mean you can AFFORD IT
In 2023, if you qualify for a loan then you can afford it. Do you how many financial docs I had to submit for my loan? They asked for my third testicle.
@@randymillhouse791 umm they did that when interest rates were low too. Again qualifying DOES NOT EQUAL AFFORDABILITY no matter how much paperwork is involved
Every family can own a home in America as long as everybody in the family has a freaking job, and that's including the children.
So your solution to the US housing crisis is to make child labor legal and profitable? That’s funny man.
The Great Reset is kicking in. Destruction by design. You will own nothing and be happy.
Troll
@@Buggu3 well, hes not wrong. The American dream is still attainable but it requires a team. That team needs to have motivated team players as well. The reality, not many of our families today are team players. In fact, theyre more inspired in starting their own families and living their own lives rather than working together for a common goal.
@@ccredo true. 100 years ago, you would commonly see 3 generations of family under one roof, all paying bills or, if unable to work, doing labor around the property. Beyond that, 100 years ago, most people grew their own produce and had food producing animals in their backyard (chickens, goats, cows, bees, etc).
Pat made perfect sense at the end. The market moving up on Monday and Tuesday after banks collapsing on Friday makes no sense.
Market only cares about the fed cocaine....
It makes sense. Cash is trash. Spend it or lose it. The government is printing money that was lost in a Ponzi.
Whatever the counterfeit paper is spent on goes up.
Stop being so hyperbolic. Two banks with bad practices went under, which happens in a capitalist environment. The world isn't ending mate.
Cuz the banking system is a scam
Yes. That last part just tells us how much the stock market is a terrible gauge of everyday Americans' situation.
Pat thank you for understanding and advocating for the 90 %. I am a RN making 6 figures, Unless prices come down I am locked out of the housing market. 100k used to be an upper middle class salary.. Today you would need 200k to buy the same lifestyle. Laughing my ass off at comment about wages are going up. We have a severe RN shortage, I work for a large, profitable HMO, we had to threaten a strike to get a 3 % raise last year.
Yeah, he's advocating for the 90% alright...the 90% of big business owners. He's against unions, workers rights, collective bargaining, and he's 100% against workers striking for higher wages. He's also against 4-day work week even though it's been proven to be more productive than the 5-day.
Bro, I finally made it to the level you’re talking about but had to move to a new area to do it. I still can’t afford a home! This area is still considered the cheaper area too!
If your making over 100k a year and can't afford to buy a house you are managing your money horribly
We can celebrate my 2% and your 3% raise together lol 😂🎉😅
@@randallpoole5292 exactly
Canadian here. It isn’t just Americans who can’t afford homes.
Getting hard in Germany too unless you want to live in the nowhere.
I'm a Software Engineer for a fortune 20 company and at $80K buying a house seem rough. Am I a slave?
I love how Barry has all this data and talking points when the fact remains that the home I grew up in was $380,000 and now well over a million dollars. There is no way in hell I can afford a lifestyle that my father provided despite being much more successful than he was at my age. Economy needs a full reset and we need to build from scratch and end this free money addiction.
This is the same sentiment our parents had when they purchased a home in 1974 for almost $50,000. And the federal income tax at that time for someone making $50,000 per year was over 60%.
@@mikeelledge9904 The title of the video is "Americans Can't Afford To Buy a House Today!" I guess you disagree, should have been titled "American's complain too much, nothing has changed since 1974"
Barry working for the mortgage industry, he has to please his client base.
Legislation needs to be passed to prevent non-owner occupied foreign purchases, and to stop companies like Blackrock et al. from accumulating SFHs. Hopefully these companies begin to offload as their risk analysis adapts to rising bond yields.
if americans dont allow chiinese to buy houses, they wont take our tiolet paper currency and send real goods. wallmart would be empty.
The folks that are in charge of passing those laws are paid by Blackstone group. They’re paid not to change those laws
No that's a really bad idea. We don't need to legislate you into a home. We need you to get your skills up, open a business, make more money, work more hours, and earn it. Be a man Dan and get that income up. You can do it.
We’ll said
@@BossItUp911 absolutely poisonous ideology.
Yeah, be a man Dan and financially out compete the hedge funds swallowing housing stocks. Stop being so lazy dan.you just need to work more hours.you're only a few billion dollars behind ,stop sleeping!
Dude lives in a different world than a majority of people in the world.
He is no lightweight. He really isn't wrong though.
“Everything is going according to plan.” -WEF
Exactly
Own nothing, be 😊
@@thisisfine4388 and still work just to eat. Erase the middle class. They want only poor and rich.
You are fools! This isn't anything new. Most people don't own anything anyway. They are in debt slavery. 🤣
Most people pay 45% to 50% income for rent and mortgage now days
That's because renters are paying off a mortgage for someone else... Plus "a little extra profit."
Average of 70% in Ireland - scary stuff!
And most financial advisers say to never pay more than 25% of takehome for rent or mortgage. Prices NEED to come down.
Then most people are not trying hard enough.
@@markpitchford7375 Yeah, wait for that! Bye.
Great topic and video too. I buy stocks for different reasons. Some to hold onto forever. Others for a quick profit or just to hedge against inflation, spread my money across. I'd appreciate tips on best stocks for dividend income amidst a crash/recession, thanks.
with limited exposure to worldwide trade tensions could shine in the coming months with investors reallocating capital out of growth plays and into safe havens. I'm getting nothing less than $50k per month from my investments and i'm in safe hands of diversification when it comes to risk management.
@@anniezeng4587 this is massive! your handler must be a guru, mind shedding info on this professional aiding you please?
@@selenajack2036 I've shuffled through portfolio coaches and personally, ELEANOR ANNETTE ECKHAUS turned out to be best, you must have come across her before on the blog. I haven't met anyone with as much conviction and her fees in comparison to my portfolio outcome is very cheap.
thanks for clearing that up. I curiously searched for ELEANOR ANNETTE ECKHAUS on the internet and thankfully, I came across her website, my goal is to retire in 5 years.
JEPI is a high dividend ETF, check it out
Home prices are 75 to 80% overpriced across the board
One need's to make $107,000 roughly gross in order to afford a home! Roughly 10-15% of the country makes that much! Owning a home is a luxury now!
More like $300k to afford a starter home in my city. 7 grand a month for a 2 bedroom with 20% down 😂
Don't worry Black Rock will offer you "living as a service". Then your home is as proprietary as your iPhone.
"I'm sorry but you've exceeded your amount of monthly toilet flushes, you may purchase additional flushes in packages of 10 for $19.99"
@James Pungello damn. Mine is 19.99 for 5. Which toilet you using?
Home prices are sky high! They need to fix this problem they caused! Not all income as gone up either!
the only income that's gone up is STARTING pay and people close to the money printer. Everyone else is making what they made back in 2003.
@@markpitchford7375 Correct!
Can't afford to buy a house , a car , go to college . People need a minimum of 25 % in income increase to even start to catch up
Meanwhile the Federal Reserve is saying that wages are too hot so their goal is not our goal. They want wages down and they want a recession. SMH
Get a student loan. Unless you don't have a clue what you kind of carrier you want, it's your best path to that increase in pay - or get a certification/journeyman in something. Sure you will have some debt to pay off but as long as you get a worthwhile degree, the increase in pay should more than cover the loan. Just a suggestion from someone paying off student loans who doesn't regret it one bit.
Cant raise wages or youll have a wage price spiral which will destroy the economy
Nor healthycare.
That 25 percent increase isn't coming.
Once was shooting the breeze with a person in a diner, he said the only reason he was able to buy his house in the 2000s was because he was moving drugs.
sounds about right.
100% correct as far as affordability goes. Joe does any of the younger generation even come up with $50k for a 10% down payment on $500k house in metro area? The sellers have been dropping price but still not reality for the current environment.
And at 10% down, you still have PMI. And property values are so high which affect property tax. Who can afford this
@@debralondon4295 why would you have PMI with 10%?
@@codykruies3414 Mortgage insurance on anything less than 20% down payment is what he's saying.
@@codykruies3414 anything below 20% of the loan includes PMI
@@israelgonzalez7335 shit i thought it was 10% Thanks!
Let me explain what Barry is missing or not stating.
Inventory is tight because we have now allowed companies to treat residential homes like a stock. They came into the market in a big way when money was cheap. They are not going to let their 'investment' depreciate in price as they can control it better than a stock. Instead, they will turn them into rental units, which they are doing, and waiting for conditions to improve. They bought at peak market and are refusing to take a loss. Get the investors out of the residential market and inventory will improve. Until you do that the affordability issue will NEVER get fixed.
PS: We are not even at positive real interest rates yet. Get use to these rates at 7% and 8% or higher. Which means prices MUST come down, a lot. To homeowners today: Your equity for the last half decade+ was always fake wealth. Time you lost the pretty number on your balance sheet.
100% AGREE!!! That's why we need some banks that bank the rich to fail.. we need them to be forced to sell
For sure. Homes went from 150K in 2020 to 350-400K in 2023. Like get fucking real. That most certainly is fake wealth and it’s time to get back to reality
Most homeowner don’t care enjoying low interest rate! 😊 locked in. They not want to sell then go get another home at higher interest rate.
Someone missed out on buying past few years 😬
@@CaveManOogaBoogaI agree and believe that is the biggest factor.
WEF wants this. House prices will never come down
Defund WEF. Defund Biden Admin.
You know it. 👍
That makes no sense! Because if you believe that, you should buy one. 😆
@@anti-emo4721 well duh!
Waiting on the sidelines for that perfect moment… trying to “time” the market, is a horrible idea. Imagine all the wealthy investors waiting on the sidelines with cash in hand. They stay up on their market research daily. There’s honestly no competing with that. This is the sad day and age that we live in. When greedy investors and conglomerates gobble up 25-40% of single family homes, the only people who win are the investors. Try to get your own slice of the American Dream if you can.
I don't want him to be right. I want him to be wrong and have the prices collapse. Thats when it's a GREAT time to buy. I own a house but i bought when the market was depressed, and have made a lot on it.
This time is different. They will replace the dollar w/ their one world govt currency.
🇺🇸 Housing is very affordable. Just get a 60-year mortgage!
Just a little reminder and not trying to sound like a "sky is falling" type of person but you "made" nothing, until you cash all in. Equity is nice and all but that is not "made".
@@robryan751 I'm moving to the Philippines. I'll live like a king with my social security. 5 ladies every night.
@@seymorefact4333 hookers and blow baby!
Barry's property portfolio is taking a big hit I hope
You know it. Dude was hating on the Fed for curtailing inflation. Biased AF.
This guy is talking nonsense, it's good to see Pat push back
more affordable and appreciate 3%, talking out of both sides
Pat is pushing back in his price range. In my area price range for an average 3B 2b home is 250-280 we can’t keep them on the market long enough. I just sold a home for 380 above asking price in 3 days.
On the other hand luxury real estate in my market is taking a hit. Your average joe is still having a hard time finding a home. Affordability is not our issue.
Lack of inventory keeps my market strong
@@Gio-bz8rz mate... 50 years back people could buy a home at 21 in a single income household...
The interest rates aren’t keeping my wife and I off the market. A house that sold for $175k 3 years ago is now $350k. That’s what’s wrong. Not interest rates.
Idk if it can go back down to 175. How low can it get before you get comfortable to go look again?
Historic low 2-3% interest rates set by the Fed during COVID is what caused housing and all prices to balloon. Cheap money for people to borrow
@@atorres11720 I earn a six figure salary (Glory be to God) and cannot afford any of the houses near me. I don't know what'll take to look again, but it is soul crushingly hopeless.
I think people in the real estate industry evaluate affordability based on the ability to borrow. To them, low interest rates are considered affordable even if the house is expensive. Unfortunately this creates a scenario where anyone can sorta buy anything, but they will be in debt for the rest of their lives, and the economy will always be on the brink. Affordability should instead be evaluated based on what you can buy with money in hand. As much as it hurts to say it, in the long term we will be FAR better off, if we suffer now, keep interest rates high, and bring the value of things down to a truly affordable rate. Home values need to drop by approximately 50% for the American dream of home ownership to be restored... that is a huge amount, but it is necessary!
Very few people in the WORLD can buy a home with cash on hand. That's not even just a USA problem...you're asking for a god like miracle to occur on earth to be honest, and that will never be allowed by the ones who tell us that we will own nothing and be happy.
We are all slaves to our employers. Mutual mean nothing to these big companies they are leaches that run the world. Government for the big companies not be people it’s so sad that it has come this far. Monopolies are the lobbyist’s. You have to obey everything your employer tells you to do you have to obey everything the government tells you to do or they will both use force. We are being tracked by the government and by the companies to the point where if you step out of line you will find out social credit is right here and now
So basically, if you grew up poor and you work a blue collar job, you're fucked? What's the difference in 1500 rent and 1500 mortgage? Might as well have some security for your family
@@dgage1776 the difference is that you aren’t responsible for maintaining it when you rent. If your mortgage is the same as your rent, then you are paying more because of property taxes and HOA fees. People also forget to mention that repairs over 30 years even out in cost as if you rented. If you barely put anything down and borrow 90% at todays rate, you will be paying 2.5x what it’s worth at the end of 30 years making your equity that you accumulated worthless because you threw it all plus more away in all of that interest.
Unless you can at least put 20+% down and pay 1.5x the minimum each month, you don’t stand a chance.
@@Kurplode so I should resign to renting and leaving my family's security up to chance?
My grandparents bought their home in the 50's..they paid $15,000 for it. In 2018 we sold that home for $110,000. The thing is, we didn't sell it direct to a retirement home..but all of their payments and costs still wiped most of that out in 2 years. Its crazy! I am struggling to pay $1200 a month on rent (which is cheap in my area..especially since it has a bathroom and a half). I think the people that figure out pricing for real estate are just unhinged..
The rates don't need to come down, prices do!
I guess you are mathematically challenged. Rates do need to come down. And fast. A 400k house at 4.5% rate is cheaper than a house for 315k at 7% rate. Genius
@@lifeisgreat1718 I'd rather buy a house at $315k at 7% interest rate that can later be refinanced at a lower rate. Always go for the price.
@@JC.LC. or just paid off entirely as you find new income.
The housing shortage, at least in Orange County CA, is a developer's myth. Homes are just too expensive. Too many investor-owned homes, not enough public housing options.
As an OC native born and raised, I concur! Luckily I bought my condo in 2019 but looking to upgrade to a single family home is very discouraging.
I’m from Orange County too and I wonder how many new housing is occupied. Especially when you look at how many new apartment complex have been built in the last 10-12 years and the population of Orange County has only increased by 100k people in the last 10-12 years.
Got a roof over my head . Grateful
@@alvarotorres9057 yes. Actually the population is down since 2019. Talk with your City Council. It sure seems like a scam, all this new housing that no one can afford.
I was paying $1250 in rent. My entire mortgage payment, all in, is $1550. Buying a house made sense on that basis.
But that was a 195K house. It's now appraised 6 years later at 235K. I couldn't have afforded this house at this price 6 years ago.
Letting investment banks purchase private property, while I'm a capitalist, seems like we're about to go off a cliff.
Checking in for California. Houses we were looking at before COVID were ~450k. Those houses are now close to $1M.
Most of the homes are owned by foreign investors or on the Federal reserve balance sheet. End the fed and tax foreign
@@IIIEPINEPHRINE avg houses low ranch house in Long Island NY were around 300K in 2020. Now they are 500K for the same house in less than three years. Sad
Texas enter the chat:
An NAR report found North Texas was a focus for investors. 52% of homes bought in Tarrant County and 43% of homes in Dallas County went to institutional investors. The other targeted counties were Johnson County (48%), Rockwall County (45%), Denton County (39%) and Kaufman County (38%).
The homes aren’t always being flipped, they’re being rented out instead.
@@sevensages5279 The "you'll own nothing and like it" group is winning.
Fucking homeless for the last 6 months trying to finish my college degree! Can't find anywhere reasonable to rent that doesn't require the same information to get the apartment that I could use to get the house!!! I can literally decide to rent or decide to buy. The same things will be required so why not buy? because rates and mortgages are to exspensive, house prices are jacked the fuck up to the moon! our country doesn't benefit the small guy anymore! Or has it ever???
It was a hell of lot better from 2016 to 2020. Just saying but I know it’s cool to hate the orange man. His policies were a million times better than Biden and his leftist admin.
It benefited the little guy during the Post-War Era and to a lesser extent over the following decades...but other than during that period of time, America has always been about lining the pockets of the rich at the expense of the poor. We're just getting back to our roots.
@@larrytate1657 just so you know, you are the one who brought up the “orange man”. But yeah its all bidens fault if thats what your saying. 🤦🏻♂️
Also i vote republican and if you would wake up. You would know that Trump printed money also!!
Neither can Canadians. Million dollar teardown homes. Ridiculous.
The ratio of home price to income level has to change drastically. Our grandparents had a 1:1 ratio. Where I an its over 20:1 based on median income. Society is literally sowing the seeds of collapse one more renter at a time.
My mortgage is fixed. The rent I used to pay has gone up $400.00 in the past year. Don't live in the past wishing for your grandparents' reality. They struggled too. But they were frugal. Capiche?
@@randymillhouse791 Is your mortgage 33% of your take home or less? Sure, there are areas that are lower cost, yet they are few and far between. The average home price in my region is 1.2 million. A 20% down payment is ....240k. With a monthly mortgage payment of around 6000 to start if you have a decent rate. Math says you have to net 18k a month to afford that. That is 300k per annum. I will keep struggling then.
@@wildtwindad First of all, thank you for the reply and info. Second, where do you live? Third, why not consider moving away from the volcano?
@@randymillhouse791that just sounds like california to me. God i need to move out of this state
@@DylanJo123 Interesting. I don't define take home pay that includes 401k contribution or automatic savings deposit per paycheck. I don't count that money at all. So just given take home versus what I OVERPAY on my mortgage (always put some to principal) I am sitting at 30%. I don't even fell like doing the calculation with the $X savings or $X 401k contribution. I'm comfortable. Besides, renting = death because there is no equity ever and a renter will never enjoy a rise in property value or paid-in equity. I have a 5 year plan then it's bye-bye USA and retirement to South America spending pesos which will more than double my USD buying power. Retirement in the USA is out of reach even for those doing pretty damn well.
You have companies like Blackstone buying up residential property to rent out is destroying affordability. They're intentionally preventing the real estate bubble from bursting.
The problem really is that in western countries the housing market has been manipulated to be used as a vehicle to generate ginormous riches for the individual but mostly this benefits the banks, other influential institutions etc. if we really want to fix society we need to shift mindset to seeing a house as a place to raise a family/live rather than a method of money creation and until then we are going to be in an endless cycle of stagnation in the economy due to people unable to afford housing/ raise families etc
It's like these corporations are valued above citizens, that they must make a profit year over year no matter what.
If houses will be eventually affordable again (as Barry here says) then WEF are doing a really bad job with their - you own nothing. I am afraid I will go with trillionaires and say that houses will become out of reach for average people.
Inventory is NOT tight and/or rare.
Let the foreclosures take their course.
Let evictions proceed and ban foreign buyers ( it is NOT fair to sell to foreigners ,when their nations do not let Americans buy there).
Then there will be a wave air bnb's and 2nd and 3rd homes flooding the market.
I was very fortunate to purchase my first property in 2018. 150k 3 bedroom 3 bathroom 2 car garage. Now currently worth 240k... locked in 2.99% for 30 years.
Should’ve waited till 2024, could’ve got that house for 100 K
@@gregmatthew5704 I doubt the value of the home will drop below that.
Where do you get a get a 3 bedroom house with a 2 car garage for 150k?
@@kobebryant5255 you're dead you dont need a house
@Kobe Bryant go look at fly over country or rural places. You can buy cheap properties in the middle of nowhere but you better have a reliable job lined up.
I'm closing on a home right now 409k at 6.0% 2,1 buydown. At three years looking at 2800.00 a month. In Vancouver Washington. The property availability is super low here. Probably over paying by 50k but we need a home and I'm tired of paying someone else's mortgage.
Ya if that’s your only choice than yes over paying for a home IS better than paying off someone else home. Renting is such a horrible financial decision, idc what ANYONE says. Even if owning a home takes away most of your income and leaves u with little free cash to spend each month, who cares. Still beats pissing away 1000-XXXX each month
You probably made a wise decision. Try to remind yourself that your monthly mortgage payment is not an investment. It’s your home. Your freedom. Enjoy that sweet freedom and try to live in the moment. There’s no better feeling than being your own landlord. You make the rules. Savor the sweet freedom.
Congrats John, I live in Seattle don't worry rates can't stay this high for to long. I never thought I'd have this hard of a time affording a house.
@@TheRedPersian you never own it lol, the bank owns it and when your mortgage is paid off you still owe property taxes or else they’ll take it from you lol
@@Itsdjsigi You benefit from the equity upside plus a portion of what you pay goes into equity. Still a far superior wealth tool than renting.
“Wages went up” hahahah for who!?!?!?
STARTING wages increased some, but the mid level wages have been flat for 20 years.
If rates go down demand rises and then prices will go up. It's simple.
Pat is right guest is wrong. the problem is buyers are trying to double their money on one year. buy for 120,000 in 2021and want 250,000 now. no way people should pay for the greed
I'm looking at houses that were listed $70k cheaper in 2020 in my area... There's no way I could bring myself to buy something that was 40% cheaper 24 months ago. Looking at small 2br to rent out
Facts. It’s fake wealth and it needs to be erased
I was making 89.k a year back in 2006 and I basically making the same now. But everything costs 3 times more then it did back in 06. So 89k a year isn’t really great money anymore. So how does anybody making less then that afford the cost of daily life??!!
A lot of Americans would be very happy to make 89k a year right now
@@mph5896 That's not the question.
Pat doesn’t like to allow anyone to explain their point if he disagrees
It was pretty obnoxious for him to keep saying "tell me how" and then immediately talk over Barry when he tries to explain how 😆
@@tolinpeterson2670 I wanted to hear him explain and see the chart
I cannot afford a home...... I'm waiting for the crash
The government won’t let housing prices go down because property tax is based on value. If the value goes down, so does their revenue.
Good point. Govt will be incompetent on many things but robbing ppl is not one of them.
2008 begs to differ! 📉
We have entered a new era. Prices are NOT coming down. Society is transitioning from a home owner society into a renter society.
More like air bnb where i live. Nearly all the affordable homes get snatched away
Society is not willingly making this transition. Companies like black rock are forcing it down our throats and our law makers refuse to protect us from this predatory action.
A lot of people in the housing industry fixate on the interest rate when talking about affordability, which is secondary to the main issue. Home prices have outpaced income growth, which is what is making homes unaffordable. We need to focus on bringing more housing supply to the market so that the cost to purchase shelter moves down. However, we have become obsessed with prolonged house price appreciation and now expect to generate a return on a home like it's a corporate stock. If the price of gas comes down, it's good news. If the price of housing comes down, it's terrifying. Expecting to sell a consumption item consistently for a profit defies economics, and interference in the free market is what has allowed it to perpetuate for so long.
🤔If a house costs $500k....
Who can afford that??? That’s $5k per MONTH!!!
You get a loan ….. like everyone else lmfao and no your mortgage would be like 2k a month
Get a better job that pays more like the rest of us
The rich can afford
@@mdawinibeast518 my house was 350k and I make like 60 a year lol. You mf just aren’t very smart.
@@BobbyHiII only if you put a ton down. But if not you’re way over 2k a month for a 30 year
The rates have gone up but prices haven’t dropped. The real issue is inventory. There needs to be more houses built. Otherwise another rate drop will just inflate the prices even more.
I am trying to avoid making any new buys at this point in other not to get sucked into a bear market trap.It's tough making money in stocks when institutional investors are the driving force behind the selling.. although I read an article of people that grossed profits up to $150k during this crash, what are the best stocks to buy now or put on a watchlist?
@@shawcohbam I have been investing over 10 years and I can say I saw more profit since 2020 till date than all my years investing. my wife and I consult with a fiduciary, by name Isabel Linda Dueri. I am 43 with a 1.3M portfolio that has only been down 14% since all this hullabaloo began in Oct 2021. She is very defensive and can salvage the best out of a perishing IRA
@@andreasleonard0 We are having the hardest time getting ANY cpa to answer some questions in my area, I am skeptical about taking advice from YT finance videos as they may not be peculiar to us or have been called out as shills, how did you find the person you work with?
@@ellamezoOh you should look up her name
@@andreasleonard0 I merely looked her up on Google and was highly impressed by her credentials; I got in touch with her because I need all the help I can get. I just set up a phone call.
Finally people are getting to recognize the brilliance of this lady
Income isn't going up 7%. Today cpi report says income is going up 3.2%. less then half of what is quoted in this discussion.
Glad I got my home when I did. 2019 in a nice area of Louisville KY, small house 3 bed 2 bath, on a third of an acre for $165k
I'm a single parent of one child who works fulltime making $18.50 an hour ($31,000/year), in Wisconsin, and yet I am struggling to find any homes in my price range. Everything is $180,000 and over. And this is for 2-bedroom houses, with no basement and a 50-50 chance of a yard. My parents bought their 2 story, 5 bedroom, 2 bath, 4 car 2-story garage, house 20 years ago for $64,999. They were making about $45,000 together back when they bought their house, now about $85,000/year. A house with similar comps to theirs is selling for significantly higher. About $350,000-$400,000. So, the price of houses has gone up 6x while wages have maybe gone up 1.5x. I'm not trying to find anything crazy. Just a first-time home. But good luck finding a house for $90k-$150k. Surely not a 3 bedroom with a yard, basement, and a kitchen. There's not a lot of first-time homes. I think a big reason for this is how people have blitzed the neighborhoods with flipping intentions. All the decent homes going for this price 5-10 year ago were bought up and flipped to raise the base level of the neighborhood. When we were enjoying these shows on TV, we didn't recognize the effect this has on first time home buyers. On top of it all, rent has skyrocketed too. 1 bedrooms going for $850/month at cheapest. It's insane. We live in a dinky and cruddy apartment but it's a 2 bedroom for $350/month. There's nothing out there like it at the moment, but at the same time I'm just ready to give my daughter a real home. I just don't see a way to do so. I make 2x minimum wage. I'm not just a burger flipper. I have saved our tax money for the last three years, accumulating about $30,000 but I just can't take on a $200,000 mortgage. Nor would I even get approved for one lol. Any suggestions?
Not to be a dick but I would advice constantly looking for a better job with better wages. 18.50$ is not sustainable for you and your child. There is government and entry positions these days that offer a lot more than that. Get better pay, save and wait for the markets to adjust.
@@ipods87 not in rural Wisconsin. Average pay is $12-$15/hr.
Patrick wouldn’t let the man talk!
I think Barry is right. Houses below the median are getting multiple offers. Patrick only looks at expensive housing. Those prices are coming down because there’s no demand. Single family homes have tons of demand.
I agree. We are looking to buy in the suburbs of Chicago and we have been in two multiple offer situations in the past couple months. Both houses had 10+ offers.
100% agree! 60% of the homes in out area are selling above asking!
We can go back and forth about this all day. But the bottom line is that there aren't enough homes out there. So demand will always be high. Home prices are determined by supply and demand.
There are, people are just locked out.
It's crazy how much hopium I hear from people in the professional real estate business. They always need transactions NOW or they go broke. It's like an internal speech code or something.
Pat’s personal experience as a buyer in the very high home price range is vastly different than the median buyer…
sounds about the same really.
Yah, the only way I'm affording a house is going quite far out of the city.
Inventory is down because people don’t want to sell with a 2.7% interest rate just to pay an inflated asking price for something else while adding a 7% interest rate mortgage
no way I'm giving up my 2.75% 30 year rate on a moderately priced house to overpay for a more expensive house at 7%. That's INSANE. And that's why there's no inventory.
Biggest problem seems to be property taxes increasing like crazy! They tried quadrupling my property taxes this year even though I am homesteaded and it shouldn’t be able to raise more than 10% a year! They’re trying to tell me it doesn’t matter that i homestead and did all the proper things - they can just jack the price regardless which is BS! It’s raising my monthly mortgage more than 50% in cost per month. I’m probably going to have to sell because it’s unsustainable
In 2000, a truck driver earned $100k, this purchasing power would be equivalent to $175k today. These wages are around $40k today. This is a crude example, but there are 1000s of jobs like that today. A second reason is that there are fewer home builders who limit buildings because of self-interest. A third reason is that banks have a much easier time lending money. There is a downward trend in wages and an upward trend in prices.
Dude what😂😂starting pay for truckers is 75k if you have your own truck and trailer gross is close to 150-200k
@@skyline9789 check out the national data and in my example, it's referring to wages. Not owner operators, which has seen sales decrease. Back in the 2000's. Those operators were clearing 250k profit, today is what ? And don't forget to mention the 1000's of blue collar jobs that affected primarily due to globalization.
@@skyline9789 after tax, tags, insurance, personal income tax, maintenance, etc, the O/O make just over what a company driver does. I'm almost 23 years in the industry with a spotless safety record and a beautiful work history and it almost impossible to find a job as a company driver making 100k a year. And the owners of the trucks make easily quadruple that off the driver.
The shortage of homes is not due to “builders self interest”. Most of the time property investors and builders are building too much in too little of space: ie “affordable homes” meaning a shoebox condo in a multi unit complex. However, it is tons of politics and bureaucracy that ties up most of the money and limit the ways we can build homes and where we are allowed to do it. (Im a contractor)
What do we do to stop it? How do we stop the leftist democrats? I don’t think they’re going to let us win an election with mail in voting in place.
I have just mentioned to a few neighbors that I'm about to sell. Out of those 2 mentions, I've had offers already, questions about price and time frame, and people showing up wanting to see the property. No wonder realtors are suffering. Home sale has become self-checkout!!! I have told people to return when the sign is in the yard. I feel invaded.
Realtors still making 3% to buy or sell and giving 6% is a joke. Realtors should not be making a percentage of sales. Make it a fix fee.
@@kevinhicks9447 Agree with you... many agents out there today are worth way less and they should charge 1%. However you have to remember... you get what you pay for.
That's the future plan , why etherium is a thing no need for realtors fees you will use blockchain to sell
I live in Jacksonville Florida. And I got to disagree with people not being able to afford homes here. Zillow has over 800 houses for sale in Duval County for less than 250k. And the payment would be less than the average rent. Even with today's interest rates. And unlike what people have gotten used to. History shows that a 7% interest is a normal low interest rate. But people don't think they should humble themselves. And not live in home they can afford
Everyone can own a home if they are willing to disperse. Homes go for 50-100k with no down payment in Rural areas.
Exactly
Here's the funny thing people can get into a expensive mortgage right now and be house poor. Yet if that keeps happening and a lot of thier salary goes toward the mortgage guess what that's less money getting spent elsewhere. Less money for local retail or restaurants and so on which in turn causes job losses and business closing due to less people spending money especially once they max their credit cards out. My point is mortgages can't take up too much of your take home pay otherwise it takes money out of other sections of our economy which in turn will put us in a worse downturn. Prices have to come back down atleast to 2020 levels
My sister paid 400k for a 2 bedroom town house in Salt Lake City. It’s a rock throws distance from the freeway and her mortgage is 3,940k a month. She just graduated college. This is not sustainable for young kids just starting out. Trust me, I’m one of them haha.
She’s goofy af
Really dumb move to buy in SLC right now. SLC had the largest price increase during the pandemic of just about any metro area and it also has the farthest to fall. Average salary in Utah is 65k. These prices are not sustainable.
My girls grandfather bought like 5 houses by himself in the 50s. Now we can’t even buy 1.
Loan brokers & realtors -"it's a good time to sell AND A it's a good time to buy" 😂
Realtor here. The right time to buy is when you can afford to buy the house you want and your income is secure. It’s an individual thing. It’s not a good time to sell when it’s a buyers market. However, certain situations such as divorce or relocation means that some sellers have to sell.
What people don’t understand is that interest rates DO NOT MATTER when buying a home ITS THE PRICE OF THE HOME THAT MATTERS. If it’s too overvalued I don’t care if I got a .01% interest rate on the house it is not a good investment because when the market stabilizes and that artificial value comes down you are going to be stuck in that house. I’ll take an 8% all day long if the price is valued correctly
How can you say interest rates don’t matter? 5% difference in rates can cost you $200,000 for a $400,000 house.
Interest rates 100% matter, not sure if you have ever bought a home.
Countless number of people who bought a house at good value refied to rates below 3%. Homeowners who over payed are at rates below 3% and are going to live in them until they pass away, or rent them out for passive income. Never going to see those rates that low again.
Nobody mentions that the size of the homes being built would be considered mansions 40 years ago. The cost of materials has gone up, so the cost to build these large homes is insane. I have been told my 4 bedroom 2 bath 3 level split is a "starter home". I call it my mortgage free home!
A necessary result of rising land value. If the plot costs you an arm and a leg, building a shed on it won't make sense.
The homes are bigger. The cars are bigger. The people are bigger. It's almost as if they think that bigger is better hmm.
We are short 3.7 million houses from:
- lack of building the last 12 years
- rise real estate investors buying up supply (corporations, foreign investment, etc)
- rise of short term rentals and airbnb
- NIMBYs voting out new developments
- ridiculous regulations around building
Basic supply and demand. We need builders to BUILD our way out of this. Don't wish bad on anyone personally, but I hope the people who contributed to the above fall on their face.
Let's put housing back in the hands of people who actually plan on living in the house they bought.
Bet-David being 10000% realistic and always explains it in a great way!
The real problem is on most markets the cost of homes have significantly jumped over the past 10 years while wages have remained mostly the same. Houses in my area that are selling for 250k now were last sold in 2012 for 105k.
10 years? Mid career wages have been the same for 20 years. House prices since 2003? Quadruple at the least.
10 years? Bahahahaha is that propaganda? I bought my 3000sq ft home for 169k in 2018. It's worth 325k now.
@G Burn nope, just most people don't sell their home that often where I live and so i have to compare the previous sale dates, which are on average (eye test) around 10 years ago. I've seen several homes back on the market that sold in 2019 and are now selling for almost double the sale price in 2019 without any upgrades or modifications
10 years ago I was making $35K salary. Today it is $120K with 20% bonus. Have you considered making a company or career change?
@@markpitchford7375 Comfortable in finding your excuse to stop trying?
Just like in 2010 when it became more difficult to get a home loan. They need to make getting a car loan more difficult. $920 a month for a loan, repo companies not being able to keep up with the default of the loans…. It’s getting out of control.
Buy what you need, not what you want!
Nah they shouldnt make getting a loan for anything difficult. It puts smart people like me at a disadvantage.
My truck note is $811 a month at 0% interest. I got a horrible deal. I got three years left to pay. Once I pay it off I will never make such a bad deal again.
This guy has good info I wish they would let him finish his point lol, the 10 year got beat up these past few days and this is the yield most closely associated with mortgage rates. The guy wasn’t trying to say we going into economic prosperity but there is truth in those numbers he was laying out
Agreed! Pat was a little aggressive towards this guy. Like you got an expert on your show but don’t believe anything he says. His response was emotional in my opinion and not based on the data like his guest.
Prices won’t collapse because people are holding on to their homes because of interest rates. Market is tight.
You should be right Patrick, but, in a world where FDIC limits are not enforced there is the perception that the fed will always keep asset values from falling no matter the inflationary cost.
5:38 "I hope Jerome Powell doesn't break" *Shows picture of a 2004 Range Rover*
I love Pats analogies.
Thats literally his worst characteristic. Everything is a hour long drawn out analogy
@@davidtejeda4323 EXACTLY! his analogies are fucking horrible. And then he asks a question of the "expert" and then continually cuts him off. Why do you keep cutting people off? Let them talk. That's the point of having them on the damn show. It makes no sense. PBD just spews off over and over again with platitudes and "no nonsense" talk. Unfortunately, complicated topics can't just be explained by analogies...
@@iansane1928 This is how I feel watching Tim Pool on Timcast IRL most nights, but I’ve never felt that way with this content 🤷♂️
@@RyanAndAirwaves I mean you may never feel that way but it literally happened 20 times during this clip.
From all the books he's claimed to have read, you would think he could understand what's going on in the market w/o using the most idiotic analogies! 🫣
Where I live in Chicago, the entire metro area from the city to every suburb has a ridiculously low inventory of houses being sold. This has jacked up the prices of homes and it’s fucking tough to get an accepted offer because every house on the market has a minimum of 8 different bidders
Yup. I've been looking for properly priced homes for a couple years now. I'm ready to move, but the prices are way too high
If homes are affordable then I'm a goldfish
I attended that Twitter call and was happy Patrick asked the hard questions.
Oh, and yes, home prices are coming down, not mortgage rates. 💸💸
Median houses are too big. Affordability isn't as bad as it sounds. In 1940s the median home sq foot was like 900 square feet. Today it's probably about 2000 square feet, and 2500 in many locations. And to top it off families have like 1 child. So houses are bigger and families are smaller. Not as bad as it sounds
It's about the massive price appreciation that occurred over the past few years that was fueled by record low mortgage rates. Most people who bought a house 3 years ago could no longer afford to buy it today. That's what affordability means.
99% of ppl around the world can’t afford a house anymore!
Great challenge Pat - the rate challenge to Barry being so confident rates are coming down soon.
I’m with you on that stance 100%. This is one of the least affordable times ever to buy a home.
PS - I’ll do your next refinance Pat.
Connect Loans got you & Vinny covered. 🤠🏡
. . . you too Adam - you too. 🙌🏻
It’s sickening. My wife and I do okay - about $220-250k between us depending on how bonuses and stuff go - and we can’t afford a decent house. Half a million gets you a 70 year old home that needs close to a complete revamped.
@@gregorypalmer4909 It really is like that, combined with inflation everywhere else, its once of the least affordable / toughest times to raise a family (financially)
I am a mortgage broker in florida and i focus primary on the miami market . I can attest that demand is still up here. Inventory is way to low in the range of 400-700k. The real estate market above $1m is being crushed though.
Your in an outlier area right now.
You are correct, in the St. Louis area, these homes at 200 - 350 are flying as soon as they hit the MLS listing. I just put in a bid in one house and it already has multiple offers.
Well that’s cause recently a hedge fund moved there for prices will soar a lot with time 😅
🇺🇸 Housing is very affordable. Just get a 60-year mortgage!
@@chrissithlord4760 All Cash or Financing type offers?
Housing prices NEED TO COME DOWN!