There are a few markets were prices have come down… but over all… it’s way to expensive everywhere. How can you pretend houses are below value if no one can afford to buy them?
I don't think it's way too expensive everywhere. I also think it's what you want to do with the property. I just bought in Bakersfield in November where you have cottage style homes at ~$325k on a good sized lot and detached 400 sq ft garage units behind them in good neighborhoods. This has been helpful especially since the city is very ADU friendly and costs to do garage conversions are very reasonable. There is a very strong traveling healthcare professional market and oil field worker market so that you can rent a furnished place For a good profit. also now in California you can sell the ADU separate from the home itself so that gives you 2 bites of the apple to make a profit. It's all about doing your research and deciding what it is you want the property to do for you.
@@siobhancyd9536 that all sounds good until your 20-30% underwater. All you have to do is look at income vs home pricing over time. It’s ok to be optimistic… but remember even if you can rent that home to professionals, it doesn’t mean you won’t suffer when all the other homes in that good neighborhood drop in price. I’m about to do just that, rent has dropped 200 here and even though I can afford my rent(I’m also healthcare professional), I’ll be moving in 3 months. Good luck to you.
I think it’s wrong opinion and bad advice.Home prices are falling in most places,transaction volume is low.A lot of people are under water.Median home sale price is down.Lots of new builds.I don’t know the future but I think lower prices are more realistic.
respectfully disagree simply because we have not built enough housing and behind by a decade even with the new builds. Once the interest rates drop at somepoint in 2024 prices will be going up. Majority of the county is not down, certain pockets are. Never in history "Long Term" are prices lower.. Long term
@@02nupe If it is a decade-long problem, How is it that the "shortage" of housing suddenly materialized in 2020....and simultaneously appeared in every mid-sized to major city in the Western world, all at precisely the same time? Still seems weird to me.
@@02nupepeople can only buy when they can afford the monthly payment. Don’t forget taxes and property insurance, that’s a cost too. Unless people start making more income, they won’t be able into increase there monthly expenses. So, can’t pay more
The ongoing cycle of the perpetually disgruntled home buyer... Phase 1 - "Home prices are way too Expensive. I'm not buying." Phase 2 - "Home prices are crashing. I'm not buying." Phase 3 - "Home prices will drop further. I'm not buying." Return to Phase 1 and repeat the cycle
Taken right from FORBES: Many house hunters grapple with whether to buy or build a home. The national average cost to build a house is about $329,000, not including land. So why would anyone ever think house prices are going to crash. Crash to what, below what it costs to build? Instead of waiting for a crash, look for distressed properties, forclosures, bank owned, etc.
go look at % of income to house payment and explain how that is maintainable? It's not, the market is over sold and will come back down. Typicaly it should be around 30% FYI
@@Vade1313 I just looked up the typical family income, which is 75k a year. that is $6,250 a month. 30% of that is 1,875.00 If you put 20% down on 330,000 house, that is 66k, the payment is $1756. SO WHAT ARE YOU TALKING ABOUT? By the way I'm a real estate investor started in 1982, when rates were 17-18% in NY where house prices were 200-300k. my income was about 25k
"Two in Three Americans Couldn't Cover $400 Emergency, Suze Orman Warns. Only one in three Americans can comfortably cover a $400 emergency expense, according to new survey data from Suze Orman's emergency savings startup as the personal finance expert warns of broadening financial insecurity.Jan 24, 2023"
Go look up a chart on credit debt(historic) in the US right now! With a rate of near 30% interest... in 2008 it was only around 18%. I could go on and on with charts and data. The truth is that regardless of what is shown on any chart or graph people will believe what they want to, and search out information that supports that. cognitive dissonance
I would love to own a home one day, but the numbers just aren't adding up for me. In this market, I'm much more comfortable renting a shared space and saving the difference in a CD or a money market account.
So glad I purchased my first 3 investment units at lower than 4% during the pandemic. They r cash flowing handsomely even with lower rents but rents will go up again soon
Nobody really know, I’m buying because I’m tired of waiting, the only problem we should think of how to keep it, IV been waiting years . If the rates goes up I’ll secure a good rate, and rent will go up. if they drop house value will increase and I will have an valuable asset
I don't think investors are worried about a 1/4 to 1/2 percentage point change on a $150k mortgage, but they sure are concerned about 1+ percentage point change on a $500k loan. For me to step up my investment to a higher price point, I would need a new $500k mortgage and give up a $390k 3.9% mortgage.
This seems to be the opposite do a quick search for Mike Maloney and learn what’s really going on. 50% market correction coming. Sure, new construction can offer discounts until they hit cost or a breakeven but what about when they go below that net negative point they will try to inflate somewhere else to get it back. However, cost of building, insurance, and property taxes are all going up for everyone. The cost to build or renovate real estate has increased dramatically. Be smart everyone! Do your research!
@@mep593they really think people are going to jump at the idea for paying 40-50% (in interest and price) more for the same house as their neighbor who owns the same house 😂
I’m seeing so many properties that need a ton of repair and still being listed at ARV. it’s ridiculous. Sellers are still living in 2021. Will seller expectations change (prices go down) or has the market changed (prices will stay high and go higher?)
The only regret I see in these times is not being logical. Housing prices have doubled in many cases in the last 4 years. The most unaffordable point in history. No logic involved in that whatsoever. If an individual truly believes it goes higher from here and sustains, you need help. If it sounds too good to be true, it is too good to be true. As soon as this downturn gets any momentum, it's all over. Get your POPcorn ready because it's gonna pop. A bubble is a bubble end of fantasy story.
It's Not "Waiting" to buy a home will cost you. Average people can no longer "Afford" a home. The interest rates are double what they were 3 years ago, large amount in closing costs ($10,000+), and ridiculous amount of property taxes have made owning a home a high risk bet. The greatest country in the world no longer offers "Affordable" shelter to its citizens. Homeless problem anybody? Just trying to survive problem anybody? How can people "save money" in this type of economy to buy a home?
The November home sale is nosedives!!! December will be worse and carrying on 2024!! The main reason to deter buyers is the high house price and it's not the mortgage rate!!!! Greedy Giant Corps are trying to raise the house price to make more money 💰🤑. Apparently, the housing affordability is all time low!!! No buyers, nobody wants to pay for an overpriced house!!!! In the meantime Zillow offers 1% down to attract buyers 😂😅. Home builders offer more incentives mortgage rate buydowns to trap buyers while maintaining the skyrocket house price!!!! Those are the old tricks as always!!! Don't let them fool you!!! Don't fall into their traps 😡🤢.
Agreed. mortgage applications at an all time low and buyers do not qualify. Remember people its not just the housing market, its financial sector. If Mike Maloney and the gurus are correct anything you buy today will be worth peanuts in the next 3-4 months with bailouts on the horizon by Q4 for big banks. Time to wake up folks.
Rents are going up because landlords are refinancing while they can. We all know that no investor will hold onto rental property with a negative cashflow for very long. So if they refi at a higher rate, for more money, rents will go up drastically.
It’s hard to believe that a channel like BiggerPockets could actually recommend for any person to buy a home in 2024. Truly unfortunate. But to be fair. I’m not surprised.
People arent lining up to get a 3500 dollar mortgage right now.. people living in vans and alot of people are gonna back off from the mcmansions (good chunk of the inventory) into much smaller 1800sqft setups just to qualify if people DO come back to the market.
I love affordable housing in high priced markets right now. First time homebuyers are always active, and not concerned about leaving their ‘golden rate’ behind. Pick a market with strong fundamentals and appreciation, and buy under the median price point. Your flips will have a solid audience. And small MFH make killer rentals right now because renters are getting priced out of full size homes.
Of course they are telling you to buy so you watch their videos. In fact Brian Burke, an actual smart guy with experience, said in a BP video 5 days ago that it's a good time to sit on the beach not buy! A lot of experts on here don't have the experience or smarts they are portraying. Beware.
Most of the content on here is geared towards residential real estate, with the corresponding lending products. I think there would be a lot of value in having an episode focused on multifamily (4+ Units) as well as the loan products that are available.
Just realtors talking their book like a Wall Street guy on CNBC. No way to tell. BP send to have jumped the shark. Losing its value as a source of actionable information.
Most of these people have been doing real estate for the past 15 years in a BULL market, everybody can make money in a BULL market. Now bring the e people that have their business for 25+ years and experienced the 1999 and 2008 crash.
Talking about a short memory…the lender spoken like a lender and forgetting that 2020 brought millions of lives lost, not to mention the tens of millions of jobs lost and people just won’t put up with the “historically” 6% mortgage rates. Get on with the times lady. $50/mo makes a huge difference for most, but I get if you don’t get it
Um, investors don't want the current joke prices. No one cares about rates lol. Btw, investors have other investment options. So, we put all of our available cash into an investment that generates cashflow. Look elsewhere guys, come back to real estate in couple of years.
There are a few markets were prices have come down… but over all… it’s way to expensive everywhere. How can you pretend houses are below value if no one can afford to buy them?
I don't think it's way too expensive everywhere. I also think it's what you want to do with the property. I just bought in Bakersfield in November where you have cottage style homes at ~$325k on a good sized lot and detached 400 sq ft garage units behind them in good neighborhoods. This has been helpful especially since the city is very ADU friendly and costs to do garage conversions are very reasonable. There is a very strong traveling healthcare professional market and oil field worker market so that you can rent a furnished place For a good profit. also now in California you can sell the ADU separate from the home itself so that gives you 2 bites of the apple to make a profit. It's all about doing your research and deciding what it is you want the property to do for you.
@@siobhancyd9536 that all sounds good until your 20-30% underwater. All you have to do is look at income vs home pricing over time. It’s ok to be optimistic… but remember even if you can rent that home to professionals, it doesn’t mean you won’t suffer when all the other homes in that good neighborhood drop in price. I’m about to do just that, rent has dropped 200 here and even though I can afford my rent(I’m also healthcare professional), I’ll be moving in 3 months. Good luck to you.
And layoffs are just starting to ramp up
I think it’s wrong opinion and bad advice.Home prices are falling in most places,transaction volume is low.A lot of people are under water.Median home sale price is down.Lots of new builds.I don’t know the future but I think lower prices are more realistic.
respectfully disagree simply because we have not built enough housing and behind by a decade even with the new builds. Once the interest rates drop at somepoint in 2024 prices will be going up. Majority of the county is not down, certain pockets are. Never in history "Long Term" are prices lower.. Long term
@@02nupe If it is a decade-long problem, How is it that the "shortage" of housing suddenly materialized in 2020....and simultaneously appeared in every mid-sized to major city in the Western world, all at precisely the same time? Still seems weird to me.
@@02nupepeople can only buy when they can afford the monthly payment. Don’t forget taxes and property insurance, that’s a cost too. Unless people start making more income, they won’t be able into increase there monthly expenses. So, can’t pay more
@@SalinasBMWyet decade over decade prices go up despite that exact same scenario you mentioned.
Keep renting
The ongoing cycle of the perpetually disgruntled home buyer...
Phase 1 - "Home prices are way too Expensive. I'm not buying."
Phase 2 - "Home prices are crashing. I'm not buying."
Phase 3 - "Home prices will drop further. I'm not buying."
Return to Phase 1 and repeat the cycle
BP shouldn't be pushing FOMO
Yup they just want to push people into their lending sources
Taken right from FORBES: Many house hunters grapple with whether to buy or build a home. The national average cost to build a house is about $329,000, not including land. So why would anyone ever think house prices are going to crash. Crash to what, below what it costs to build? Instead of waiting for a crash, look for distressed properties, forclosures, bank owned, etc.
go look at % of income to house payment and explain how that is maintainable? It's not, the market is over sold and will come back down. Typicaly it should be around 30% FYI
@@Vade1313 I just looked up the typical family income, which is 75k a year. that is $6,250 a month. 30% of that is 1,875.00 If you put 20% down on 330,000 house, that is 66k, the payment is $1756. SO WHAT ARE YOU TALKING ABOUT? By the way I'm a real estate investor started in 1982, when rates were 17-18% in NY where house prices were 200-300k. my income was about 25k
@@rickdunn3863 Median Annual Income US families in 2023 is 57,406.
"Two in Three Americans Couldn't Cover $400 Emergency, Suze Orman Warns. Only one in three Americans can comfortably cover a $400 emergency expense, according to new survey data from Suze Orman's emergency savings startup as the personal finance expert warns of broadening financial insecurity.Jan 24, 2023"
Go look up a chart on credit debt(historic) in the US right now! With a rate of near 30% interest... in 2008 it was only around 18%. I could go on and on with charts and data. The truth is that regardless of what is shown on any chart or graph people will believe what they want to, and search out information that supports that. cognitive dissonance
Avery is right. There was a housing crash last year. It was just in transactions.
Omg that means houses will go up again in 2024 😮
I would love to own a home one day, but the numbers just aren't adding up for me. In this market, I'm much more comfortable renting a shared space and saving the difference in a CD or a money market account.
So glad I purchased my first 3 investment units at lower than 4% during the pandemic. They r cash flowing handsomely even with lower rents but rents will go up again soon
Timing is everything
Nobody really know, I’m buying because I’m tired of waiting, the only problem we should think of how to keep it, IV been waiting years . If the rates goes up I’ll secure a good rate, and rent will go up. if they drop house value will increase and I will have an valuable asset
What matters to me if I were going to continue to be An investor is cash flow and cap rate first.
I don't think investors are worried about a 1/4 to 1/2 percentage point change on a $150k mortgage, but they sure are concerned about 1+ percentage point change on a $500k loan. For me to step up my investment to a higher price point, I would need a new $500k mortgage and give up a $390k 3.9% mortgage.
This seems to be the opposite do a quick search for Mike Maloney and learn what’s really going on. 50% market correction coming. Sure, new construction can offer discounts until they hit cost or a breakeven but what about when they go below that net negative point they will try to inflate somewhere else to get it back. However, cost of building, insurance, and property taxes are all going up for everyone. The cost to build or renovate real estate has increased dramatically. Be smart everyone! Do your research!
IMHO there’s still an imbalance between higher interest rates and price reduction.
@@mep593they really think people are going to jump at the idea for paying 40-50% (in interest and price) more for the same house as their neighbor who owns the same house 😂
I’m seeing so many properties that need a ton of repair and still being listed at ARV. it’s ridiculous. Sellers are still living in 2021. Will seller expectations
change (prices go down) or has the market changed (prices will stay high and go higher?)
No one knows. I’m buying.
The only regret I see in these times is not being logical. Housing prices have doubled in many cases in the last 4 years. The most unaffordable point in history. No logic involved in that whatsoever. If an individual truly believes it goes higher from here and sustains, you need help. If it sounds too good to be true, it is too good to be true. As soon as this downturn gets any momentum, it's all over. Get your POPcorn ready because it's gonna pop. A bubble is a bubble end of fantasy story.
It's Not "Waiting" to buy a home will cost you. Average people can no longer "Afford" a home. The interest rates are double what they were 3 years ago, large amount in closing costs ($10,000+), and ridiculous amount of property taxes have made owning a home a high risk bet. The greatest country in the world no longer offers "Affordable" shelter to its citizens. Homeless problem anybody? Just trying to survive problem anybody? How can people "save money" in this type of economy to buy a home?
"Also terrible listing photos are a favorite way of mine to find good deals" 32:30 😅
Mortgage rates are not dropping. Expect to pay 8% interest anyway. Under Trump mortgage rates were 3.5% - 4%.
Interest was14% when my Mother bought a house at foot of Hollywood Hills. I bought a house at 7%
I am a licensed Realtor here in Naples Florida. How can I get signed up for your referral program? To work with your Investors?
The November home sale is nosedives!!!
December will be worse and carrying on 2024!!
The main reason to deter buyers is the high house price and it's not the mortgage rate!!!!
Greedy Giant Corps are trying to raise the house price to make more money 💰🤑.
Apparently, the housing affordability is all time low!!!
No buyers, nobody wants to pay for an overpriced house!!!!
In the meantime Zillow offers 1% down to attract buyers 😂😅.
Home builders offer more incentives mortgage rate buydowns to trap buyers while maintaining the skyrocket house price!!!!
Those are the old tricks as always!!!
Don't let them fool you!!!
Don't fall into their traps 😡🤢.
😂😂
Agreed. mortgage applications at an all time low and buyers do not qualify. Remember people its not just the housing market, its financial sector. If Mike Maloney and the gurus are correct anything you buy today will be worth peanuts in the next 3-4 months with bailouts on the horizon by Q4 for big banks. Time to wake up folks.
rates are important but if the price is seen as too high rates aren't even taken into account.
Yet houses were hot as hell UNTIL rates went up drastically.. why do you think prices went up? Individuals were offering over asking!
Rents are going up because landlords are refinancing while they can. We all know that no investor will hold onto rental property with a negative cashflow for very long. So if they refi at a higher rate, for more money, rents will go up drastically.
It’s hard to believe that a channel like BiggerPockets could actually recommend for any person to buy a home in 2024. Truly unfortunate. But to be fair. I’m not surprised.
I live in the WNC and it's far from affordable due to how desirable it is. It's definitely a hot market here. There is low inventory here.
People arent lining up to get a 3500 dollar mortgage right now.. people living in vans and alot of people are gonna back off from the mcmansions (good chunk of the inventory) into much smaller 1800sqft setups just to qualify if people DO come back to the market.
What happen to David's left eye socket? Did he get clocked in a jiu-jitsu match?
Price over interest rate
The market is overvalued. A little slip in the economy and you will be underwater. Is not always fear, sometimes responsibility.
Yet things didn't slow down UNTIL rates jacked up...
The entire video was worth watching just for that sign off for Rob 😂😂😂
I love affordable housing in high priced markets right now. First time homebuyers are always active, and not concerned about leaving their ‘golden rate’ behind.
Pick a market with strong fundamentals and appreciation, and buy under the median price point. Your flips will have a solid audience. And small MFH make killer rentals right now because renters are getting priced out of full size homes.
That sounds like solid logic to me.
Of course they are telling you to buy so you watch their videos. In fact Brian Burke, an actual smart guy with experience, said in a BP video 5 days ago that it's a good time to sit on the beach not buy! A lot of experts on here don't have the experience or smarts they are portraying. Beware.
You have to make like 300k to live comfortably in a house.
So the lender is saying don't worry about the rates, buy now.
You can always refi if rates drop.
This was most true in early 2021. Why didn’t you tell us this then?
Bigger spring no way
Most of the content on here is geared towards residential real estate, with the corresponding lending products.
I think there would be a lot of value in having an episode focused on multifamily (4+ Units) as well as the loan products that are available.
The actual rates are expensive
Just realtors talking their book like a Wall Street guy on CNBC. No way to tell. BP send to have jumped the shark. Losing its value as a source of actionable information.
My thoughts 💯
Most of these people have been doing real estate for the past 15 years in a BULL market, everybody can make money in a BULL market. Now bring the e people that have their business for 25+ years and experienced the 1999 and 2008 crash.
I like turtles!!
I like tortoise.
Caelie is trying really hard to downplay the monthly cost of buying a home right
Talking about a short memory…the lender spoken like a lender and forgetting that 2020 brought millions of lives lost, not to mention the tens of millions of jobs lost and people just won’t put up with the “historically” 6% mortgage rates. Get on with the times lady. $50/mo makes a huge difference for most, but I get if you don’t get it
Think tank anyone?
Um, investors don't want the current joke prices. No one cares about rates lol. Btw, investors have other investment options. So, we put all of our available cash into an investment that generates cashflow. Look elsewhere guys, come back to real estate in couple of years.
Over priced real estate… over priced money…
This looks like a commercial
Do not buy a house in 2024! Invest your money!
😂 housing is in a massive bubble
No use trying to convince lifelong renters. That's why they're still renting in their 40s.
2008 is not going to happen again. Get over it.
I agree. There’s no crash coming to residential.
Must be pretty desperate 😂 horrible advice!
Normal people can't compete with you investors fucking shit up for the average person or couple looking to buy a house
Bruh a recession is coming, how is it the right time to buy? Lol
Very vague and generic comments from these 2.
Especially when David asked about what markets they see moving.