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greed on every level in all asset classes, Everyone is playing hot potato right now, trying not to be the last one holding the bag when the time is up. btw according to my realtor, now is a great time to buy.....
With rates climbing like never before in ’23 coupled with uncontrollable inflation, and our own mortgage at now 7.5% what are the best alternatives/strategies for avoiding a crunch and maximize my savings other than moving in to an RV with my two kids and wife.
@@PurvisTwiggs You are not alone we can no longer afford our mortgage, husband wants us to travel or relocate/I am proposing cashing in, walking away and renting while putting the rest in the stock market.
All these numbers are based on family incomes. Think what is like for a single person like myself. And I’m just a normal working American. And yes before anyone says it in the comments. About moving to the Midwest or making more money, I make plenty of money. I shouldn’t have to make more money than I make. Because I’m 43 years old, and I’ve never had a problem in the last couple years and I think that’s the reason that most people are complaining. All of a sudden things are super unaffordable. And I’m not moving to the Midwest. The weather is gross, and due to the unaffordability of carownership.. I live somewhere that I can bike. So there’s a lot of things that go into where we live and why we live there. Just moving to the Midwest is not an option for 90% of Americans.
Yes exactly! We truly shouldn’t have to make more. We make plenty. And really only can get into the same house we could 12 years ago when we didn’t make much money. Like there’s no move up. There’s life improvement with the new money we are making. It’s been eaten up by house inflation
Not to mention prices aren't much better in the Midwest. Trust me, I've looked. Can't always keep that same job, either. If you make less in the Midwest than you make now but houses are slightly cheaper, turns out you're right back where you started.
My wife and I have been saving for the few years. We're so disappointed, it feels like we will never get our own house. If we do get a house in the next 5 years we would never pay it off before we die of old age.
You have the choice to move to the Midwest... or make more money. People in US have to learn from outside world how to handle high priced residential property judged by US price to income ratio. US housing are cheapest among all major countries. As the golden standard for housing affordability, price to income ratio, US 4.2, UK 8.4, German, France, Italy, Japan, Canada, Australia and New Zealand are all around 10.
I love the MANY articles I am reading blaming the interest rate only as the reason for housing affordability. Like the overvalue of homes, investor speculation, flippers, Wall Street owners, the tax laws, the loop holes, the ppp covid fraud money didn’t matter. Such a scam housing has become. If houses didn’t cost so much the interest rate would matter less since it’s on par with historical average
I got three sold notices today. 2 of the 3 sold for over asking and the third sold at asking. There is simply not enough inventory, or at least good inventory, to handle the number of people with the means to buy.
@3:40 Jason, your reflections on the current market are evidence of your good nature. I'm proud to be a subscriber to your channel. Its unfortunate more people don't seem to share the philosophy that the best policy is the policy that benefits the most people. This is not a partisan comment, just kudos to you. Its obvious the intent of your videos is really about trying to help people. Thanks.
And as you can see the fed is not "raising" these rates. They are going up on their own. The fed only sets interbank lending rates and follow the market in their announcement of longer term rate changes. The fun is just beginning...........
It’s disheartening to see the quality of house someone can purchase if you compare the house that cost $400K in 2020/2021 vs now. It’s complete garbage, so even if you can afford a house, why would anyone want to purchase a lower quality house with a higher interest rate in this market??? I will continue to rent and air for this to balance out again.
Exactly! You are spending $2700 a month on garbage. I think that’s what’s hard for those who remember what the market was like and what you could get. We finally have the money to afford the 2012 homes we dreamt of and now it’s like all we can get is the same house we got in 2012 😂 sold in 2019 😢
we are beginning to see the equity of our home for what it truly is, its becoming hard for us seniors not to ask the obvious question: Should we cash in, invest the money, and rent/relocate? or take more loans.
You are not to blame, besides homeowner equity now stands at 69.6%; that’s off slightly from its peak in Q2-2022, but higher than at any other point since the late 1980s. homeowners seem to be increasingly dipping their toes into home equity.
Hey don't worry about us renters. When foreclosures and short sales start flooding the market after enough laid off people run out of savings and HELOC credit. A lot of properties will be forced to go to rent especially Airbnbs and the competition will allow us to move and follow incentives. I did after the 2008 crash. I saved the minimum of $500 in rent with every single move in Silicon Valley. Feel sorry for the homeowners warmly enjoying their 2% mortgage rates while watching their home value sink further and further below the outstanding mortgage and face the realization that it can be 10 years before their value gets back to the level of the mortgage as it did for many people the last time. The difference between them and the renters is that they won't be able to just pack up and move they are literally chained to the house. Watched friends go through that the last bubble and I wouldn't wish that torture on anyone.
Unless realtors become real with sellers and educate their clients about affordability* and encourage to drop prices to where people can afford them, the market will be frozen.
Hi Jason, thanks again for all your videos. With inventory at all time lows, and people with mortgages under 5% feeling "locked in", do you have any data that shows the single family rental inventory increasing? Im curious if there is a good data set that would show this increasing overtime in CA since rates crept above 5%.
If you look at text book bubbles we are just past the second hump before prices crater over a 1.5 year duration. Fed will hold rates until hosung is normalized. I think we sadly will feel this pain through next june.
Your comment section is nuts. Everyone seems to be rooting so so so hard for you to be wrong about how this is unsustainable. Maybe they are right, housing is just now perm unaffordable for the average American now. At that point why keep the society the same, why take the risk of having absolutely no safety net and going full bore into neo liberal capitalism if it can't even afford you a home unless you are in the C suite at your company? Why not vote in things like single payer healthcare, affordable education etc like the other countries some commenters mention that have even more unaffordable housing markets? You may as well get something for working your fingers to the bone.
Some of the regulars in his comment sections are really freaking toxic lmao. They contradict themselves all the time though when you examine their arguments; they're just here to scare people and it's lowkey sad 😂
With rates climbing like never before in ’23 coupled with uncontrollable inflation, and our own mortgage at now 7.5% what are the best alternatives/strategies for avoiding a crunch and maximize my savings other than moving in to an RV with my two kids and wife.
Yes, we can have higher home prices with higher interest rates and less affordability IF the housing supply remains minuscule. You should always address demand AND SUPPLY when you give your thoughts about home prices. Housing IS affordable to those actually buying homes because so few are buying.
Get Connected To a GREAT Real Estate Agent Here: www.realestateteamfinder.com
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My car insurance was just increased by 40% due to a “statewide increase”. I am mind blow at what we are all dealing with right now.
Dangggg mine went up 9%, VA
@@kalef1234 NC here!
Same! I argued I haven’t had an accident because it shouldn’t go up because others are always at fault but it’s just Bs out here
This housing market is a joke. I can’t fathom why people bid these houses up like they did. Sheep rushing into financial ruin. 😂 🤷♂️
greed on every level in all asset classes, Everyone is playing hot potato right now, trying not to be the last one holding the bag when the time is up. btw according to my realtor, now is a great time to buy.....
Because rent is higher than a mortgage, which forces people to buy
With rates climbing like never before in ’23 coupled with uncontrollable inflation, and our own mortgage at now 7.5% what are the best alternatives/strategies for avoiding a crunch and maximize my savings other than moving in to an RV with my two kids and wife.
@@PurvisTwiggs You are not alone we can no longer afford our mortgage, husband wants us to travel or relocate/I am proposing cashing in, walking away and renting while putting the rest in the stock market.
irenatrulove Buy gold. If you have the funds to travel you should be able to afford the mortgage.
Thanks for the empathy in this episode!
All these numbers are based on family incomes. Think what is like for a single person like myself. And I’m just a normal working American. And yes before anyone says it in the comments. About moving to the Midwest or making more money, I make plenty of money. I shouldn’t have to make more money than I make. Because I’m 43 years old, and I’ve never had a problem in the last couple years and I think that’s the reason that most people are complaining. All of a sudden things are super unaffordable. And I’m not moving to the Midwest. The weather is gross, and due to the unaffordability of carownership.. I live somewhere that I can bike. So there’s a lot of things that go into where we live and why we live there. Just moving to the Midwest is not an option for 90% of Americans.
Yes exactly! We truly shouldn’t have to make more. We make plenty. And really only can get into the same house we could 12 years ago when we didn’t make much money. Like there’s no move up. There’s life improvement with the new money we are making. It’s been eaten up by house inflation
Not to mention prices aren't much better in the Midwest. Trust me, I've looked. Can't always keep that same job, either. If you make less in the Midwest than you make now but houses are slightly cheaper, turns out you're right back where you started.
My wife and I have been saving for the few years. We're so disappointed, it feels like we will never get our own house. If we do get a house in the next 5 years we would never pay it off before we die of old age.
You have the choice to move to the Midwest... or make more money. People in US have to learn from outside world how to handle high priced residential property judged by US price to income ratio. US housing are cheapest among all major countries. As the golden standard for housing affordability, price to income ratio, US 4.2, UK 8.4, German, France, Italy, Japan, Canada, Australia and New Zealand are all around 10.
At these prices it’s not worth “buying a house”. Better off to rent.
Buy land and build your own
Buy a cash home
@@roseyk7677 this too.
I love the MANY articles I am reading blaming the interest rate only as the reason for housing affordability. Like the overvalue of homes, investor speculation, flippers, Wall Street owners, the tax laws, the loop holes, the ppp covid fraud money didn’t matter. Such a scam housing has become. If houses didn’t cost so much the interest rate would matter less since it’s on par with historical average
this seems like a perfectly reasonable time for houses to jump another 40 percent
Markets correct two ways with price and time. Time is what’s needed here. Ten years of price increases occurred over two year span.
Yup. If my home was worth the same as it is today, 4-5 years from now, I wouldn’t be surprised.
Thanks Jason!! Thank you and appreciate you!
My pleasure! I appreciate you too, Matt!
I got three sold notices today. 2 of the 3 sold for over asking and the third sold at asking.
There is simply not enough inventory, or at least good inventory, to handle the number of people with the means to buy.
Well Millennials, we’ve been screwed since birth, would you expect anything less?
Don’t worry, you might be able to buy a house when you’re 50.
No doubt that generation drew the short stick.
I appreciate pausing and providing some empathy ❤
@3:40 Jason, your reflections on the current market are evidence of your good nature. I'm proud to be a subscriber to your channel. Its unfortunate more people don't seem to share the philosophy that the best policy is the policy that benefits the most people. This is not a partisan comment, just kudos to you. Its obvious the intent of your videos is really about trying to help people. Thanks.
I greatly appreciate your kind words, Gorman! Thank you
12:00 when you show "Median Family Income", this is for the entire household aka dual income?
And as you can see the fed is not "raising" these rates. They are going up on their own. The fed only sets interbank lending rates and follow the market in their announcement of longer term rate changes. The fun is just beginning...........
It’s disheartening to see the quality of house someone can purchase if you compare the house that cost $400K in 2020/2021 vs now. It’s complete garbage, so even if you can afford a house, why would anyone want to purchase a lower quality house with a higher interest rate in this market??? I will continue to rent and air for this to balance out again.
Exactly! You are spending $2700 a month on garbage. I think that’s what’s hard for those who remember what the market was like and what you could get. We finally have the money to afford the 2012 homes we dreamt of and now it’s like all we can get is the same house we got in 2012 😂 sold in 2019 😢
This is bizarre pricing and interest rates it’s like a double whammy…….hopefully prices adjust since they are pushing the interest rate up 🤷♂️
I hope to too, but I worry I just missed my boomer moment due to covid and inflation lol.
The problem is: if you’ve followed the advice of the “UA-cam Crash Bros” since 2020, you’ve lost many thousands of dollars and you’re still renting.
It’s us 😂
On a 7.5%(ish) mortgage rate you be paying approximately 125k of interest in the first five years.
we are beginning to see the equity of our home for what it truly is, its becoming hard for us seniors not to ask the obvious question: Should we cash in, invest the money, and rent/relocate? or take more loans.
You are not to blame, besides homeowner equity now stands at 69.6%; that’s off slightly from its peak in Q2-2022, but higher than at any other point since the late 1980s. homeowners seem to be increasingly dipping their toes into home equity.
If the need is critical and the choice is between borrowing from credit cards and home equity, the latter is undoubtedly better.
My rent is 385 a month. Cant afford a house, a wife, relationship, gf, a date, but i at least live very frugal and banking Money.
Hey don't worry about us renters. When foreclosures and short sales start flooding the market after enough laid off people run out of savings and HELOC credit. A lot of properties will be forced to go to rent especially Airbnbs and the competition will allow us to move and follow incentives. I did after the 2008 crash. I saved the minimum of $500 in rent with every single move in Silicon Valley. Feel sorry for the homeowners warmly enjoying their 2% mortgage rates while watching their home value sink further and further below the outstanding mortgage and face the realization that it can be 10 years before their value gets back to the level of the mortgage as it did for many people the last time. The difference between them and the renters is that they won't be able to just pack up and move they are literally chained to the house. Watched friends go through that the last bubble and I wouldn't wish that torture on anyone.
Unless realtors become real with sellers and educate their clients about affordability* and encourage to drop prices to where people can afford them, the market will be frozen.
Ever think about making a webpage with 2 calculators side by side to show the numbers all at once for a shock and awe effect?
I'm glad I bought it at 4.1% rate.
Same! I work from home and drive my truck once or twice over the weekend.
8 gals this year on both.😁😁😁
A 2 for humpday Jason? Let’s GO!!!!😂
Good afternoon!
@@JasonWalter1 nothing but the fact from @JasonWalter1
Hi Jason, thanks again for all your videos. With inventory at all time lows, and people with mortgages under 5% feeling "locked in", do you have any data that shows the single family rental inventory increasing? Im curious if there is a good data set that would show this increasing overtime in CA since rates crept above 5%.
"I'll be Back " terminator Voice
Great movie
If you look at text book bubbles we are just past the second hump before prices crater over a 1.5 year duration. Fed will hold rates until hosung is normalized. I think we sadly will feel this pain through next june.
I agree with most of your info, but not a single family I know makes 90k a year!
Old news. Price of housing doubled 2 years ago in my area.
Your comment section is nuts. Everyone seems to be rooting so so so hard for you to be wrong about how this is unsustainable.
Maybe they are right, housing is just now perm unaffordable for the average American now. At that point why keep the society the same, why take the risk of having absolutely no safety net and going full bore into neo liberal capitalism if it can't even afford you a home unless you are in the C suite at your company?
Why not vote in things like single payer healthcare, affordable education etc like the other countries some commenters mention that have even more unaffordable housing markets? You may as well get something for working your fingers to the bone.
Some of the regulars in his comment sections are really freaking toxic lmao. They contradict themselves all the time though when you examine their arguments; they're just here to scare people and it's lowkey sad 😂
Remember this is w/o taxes eacrow insurance and PMI
Thanks Jason this was an eye opener. The videos on finance say things won’t get better all around only worse. Maybe mid 2025. Hope and a prayer.
You would be wise to purchase now if you can peak won’t be til around 2028-2031 housing will most likely double again from now til then
Gl to all y’all buying in this environment. I’ll be on the sidelines watching. 😊
Good. The only way prices come down is hugher rates and patience. Its a good thing.
With rates climbing like never before in ’23 coupled with uncontrollable inflation, and our own mortgage at now 7.5% what are the best alternatives/strategies for avoiding a crunch and maximize my savings other than moving in to an RV with my two kids and wife.
Cash only or forget it
I'm supposed to wait 31 minutes 😅
haha
The homes are overpriced and interest rates are way too high! Not buying!
Mahalo👍🏽🤙🏽🌴😮🇺🇸🇺🇸BOOM
GM!
no matter what, we won’t have a housing market crash😂😂😂😂
Yes, we can have higher home prices with higher interest rates and less affordability IF the housing supply remains minuscule.
You should always address demand AND SUPPLY when you give your thoughts about home prices.
Housing IS affordable to those actually buying homes because so few are buying.
Housing market will crash!
Not in your lifetime.