THIS Will Be Worse Than a Housing Market Crash
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- Опубліковано 3 чер 2024
- Everyone these days are wishing for the housing market to crash because they think that many will be able to afford a house when the prices come down. Does anyone realize how a crash in housing prices effects the economy? It will be worse than the crash itself. It won’t be pretty.
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Jacqueline "Jackie" Baker
NJ License 1541448
Coldwell Banker Realty
Allendale/Saddle River
#realestate #jackiebakerrealtor #jackiebakersellsnj #homebuyingtips #homesellingtips #realestateinvesting
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In the USA, individuals living in cars due to partial homelessness result from a complex interplay of factors. High housing costs relative to income, stagnant wages, and income inequality drive this issue. Job loss, weak social support, medical expenses, evictions, and lack of affordable housing also contribute, while systemic problems and inadequate policies further perpetuate the phenomenon.
I’m closing in on my retirement and I’d like to move from Minnesota to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways.
Considering the present situation, diversifying by shifting investments from real estate to financial markets or gold is recommended, despite potential future home price drops. Given prevailing mortgage rates and economic uncertainty, this move is prudent, particularly due to stricter mortgage regulations. Seeking advice from a knowledgeable independent financial advisor is advisable for those seeking guidance.
I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over 2.8million.
@@joshbarney114 I appreciate the implementation of ideas and strategies that result to unmeasurable progress. Being heavily liquid, I'd rather not reinvent the wheel, thus the search for a reputable advisor, mind sharing info of this person guiding you please?
Finding financial advisors like Marisa Breton Dollard who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
If prices drop, affordability and potential foreclosures may arise, worsened by future layoffs and rising living costs. I want to invest more than $300k, but I'm not sure on how to mitigate risk.
Consider reallocating from real estate to other reliable investments like stock, crypto or precious metals . Severe recessions offer market buying opportunities with caution, as volatility can yield short-term trading prospects. Not financial advice, but it may be wise to invest, as cash isn't ideal in this period.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
Please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch if you don't mind
I just Googled her name and her website came up right away. It looks interesting so far. I'm going to send a mail to her and let you know how it goes.Thanks for sharing truly!
The moment corporation took over rentals - its the reason for high cost of home ownership.
It's not just rentals. They bought up single-family dwellings as investments following the 2008 financial crisis.
Predatory lending led to predatory purchasing, predatory renting, and predatory selling. If you can control the supply and demand, you can literally print your own money. The practice of corporations owning homes will inevitably lead to the nightmare scenario in "It's a Wonderful Life", with Pottersvilles all over America, and multinational corporations putting the squeeze on us.
The ratio of people in units being owners versus renters is about the same as it has been for decades. The deeper issue is a lack of available housing inventory to meet the demand for both buyers and renters.
The giant companies buying single family homes are only real factors in a handful of mostly sunbelt markets which they target. In most parts of the country they’re a non-issue.
@@firefalcoln It's causing massive homelessness in AZ. Rents skyrocketed.
CA residents were willing to move in and pay the inflated rates, and price fixing ensued.
A studio apartment in a bad neighborhood is now $1000/mo.
The real estate agents were crooked, the mortgage bankers were crooked, the appraisers were crooked, everybody was crooked. Then the market crashed, and people were financially destroyed, and none of the guilty people ever went to prison. Does anybody see a problem with that picture?
Too big to jail
of course, but.. some people are clearly above the law. Should it be like that? Of course not, but we don’t live in a free and equal country. Ain’t that obvious?
I’d argue that the loose bank regulations really were bigger factors of the crash. Also the giant amount of lobbying and the open door of work between big banks and the government jobs responsible for regulating the banks was a major cause of the financial meltdown around 2007-2012. The credit rating agencies were also crooked which allowed banks to gamble way too aggressively. And then there’s also the fact that financial investors got bonuses and rewards which were based on short term sales with no regard to whether their actions were sustainable. The movie “inside job” does a great job of showing how much the corruption stemmed from the rich and connected people in politics and finance.
I was a real estate broker and got out and back into being a contractor…don’t blame the real estate agents, they can’t control the market. Blame the loose lending standards brought on by politicians. Actually, president Bush sent his people to testify before congress to reign in those crazy loans, but Barney Frank told them there was no problem.
What about the real estate speculators ?
Weren't they apart of the housing market crash as well ?
Asking a real estate agent about housing market crash is like asking at Chick-fil-A if we should eat more beef or chicken. Real estate agents will always say that it is a good time to buy a house because the prices are going up, because the prices are going down, and because the prices are stable.
Taking advice from a guy who lives in his moms basement, cuts his own hair and makes clickbait vids is like taking diet advice from a fat person
right, it's the industry they're in
@@Barbara-jn2gw real estate professionals know a lot more than some brokie who’s renting sitting on their couch acting like one of gods prophets.
Yep.
Exactly. Real estate agents are about on par with used car salemen-in other words, will lie and cheat just to make a sale.
I'm hoping there will be a housing crisis so I can buy cheaply when I sell a few houses in 2025. 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 witnessed the 2008 financial crisis can expect to generate a large wage.
Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.
My CFA, Desiree Ruth Hoffman, is a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Thank you for this tip. I must say, Desiree appears to be quite knowledgeable. After coming across her online page, I thoroughly went through her resume, and I must say, it was quite impressive. I reached out to her, and I have booked a session with her.
The reason for this low inventory and ridiculous prices is Wall Street. 40 percent of homes owned by this companies.
If the market crashes they will have to sell.
I'm for market crash
Do you have a reference for that 40% figure? It sounds awfully high to me. I also think context matters. If those financial institutions owned 39% of homes just before the pandemic, it doesn’t seem like a big deal to me for them to own 1% more now. If they owned 20% or 30% of homes in 2019, then we have a big problem.
Wall st only owns less than 3% of all residential rental real estate this is straight up bs. Most residential real estate (1-4 units) are owned by owner occupants (67%) and mom and pop investors who own less than 10 units(30%) you are straight up lying
@@ErnieBert-eg8kd This is heavily dependent on where you live. Some areas are hit a lot harder with this issue than others. If you are lucky, you might not see institutional investment in your market at all. If you are unlucky (me in NorCal, those in San Antonio, TX, etc) then you can see hundreds of SFHs sold to investors monthly in just your area.
I don't think it's anywhere near 40% but it doesn't really need to be... even 5 or 10% is significant. Home titles being owned like a stock creates a serious thereat to housing market that could spiral out of control. Normal people don't sell their house just because the price is falling because they are living in it.. its nominal value falling isn't a motivation to sell.. but investors could dump RE onto the market because of a 2 or 3% price decline especially if they fear its the beginning of a RE bear market. And RE investors could sell 10, 1000 or even 10,000 homes. Once RE became a huge corporate investment price stability (up or down) vanished.
@@jonathantaylor6926 Agreed. Not sure why people think it needs to be a huge percentage. When inventory is scarce, every home matters.
Our economy is struggling with uncertainties, housing issues, foreclosures, global fluctuations, and the pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.
With the US dollar losing value to inflation and other currencies gaining traction, uncertainty looms. Yet, many still trust in the dollar's perceived safety. Worried about my $420,000 retirement savings losing value, I seek alternative security for my money.
With my demanding job, I lack time for investment analysis. For seven years, a fiduciary has managed my portfolio, adapting to market conditions, enabling successful navigation and informed decisions. Consider a similar approach.
This is definitely considerable! Do you think you could suggest any professionals or advisors I can get on the phone with? I'm in dire need of proper portfolio allocation.
Just research the name Desiree Ruth Hoffman. You’d find necessary details to work with a correspondence to set up an appointment.
I appreciate it. After searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get. A call has been scheduled.
I'm 73. Bought my first home in 1977. The interest rate was 9.25%. I thought it was GREAT. Bank interest for home loans were soon over 12%. At one point, they went up to 16%. Interest rates on CDs now are 5%, more or less. During the time home loans were so high in the late 70's, interest on CDs went to 10% at the local bank, and elsewhere, and people who had money could lock in 10% interest for 10 years. I hear the younger generation (anybody under 50) always talking about historic highs in house loans and historic high CD rates and i just smile.😊 Life was HARD for me during those years. Just out of college with a masters degree and the world crumbling around me. People will say that prices were much lower back then. Yes, but my gross pay was $650 a month. But i made it. God has been much better to me than I deserve.
YES! We married/built during Carter’s administration. Brutal
How much was your house in 1977?
@@sadie3472 $45K ( family was contracting biz). Huge interest. $248.98 per mo. I was stay at home mom to 3. He worked at auto part/paint store. We were ecstatic the year(80s), he first earned $20,000! It was hard, but we managed & we were happy.
@sadie3472
Almost $40,000 for a older house, only 1700 sq ft. There was no garage. House located in a very rural Mississippi area where land was cheap and not very desirable, but it was somewhere to call home.
@@ronnywhite5602 The average salary in 1977 was $13,570 and at a 40k house, that was 3X your yearly salary. TODAY the average home is 400k while the average income is between $55k-65k (approaching 7X the income to afford a home). This means most people on average earn $5,500 a month and at the average home price, when you include taxes and interest, the monthly payment is on average $2,700 give or take $200… that’s nearly HALF of their income. NOT the same
You don't own a home if you have a mortgage. The bank 🏦 does. 😳
You don't own a home if you DON'T have a mortgage either. If you don't pay taxes the bank will take the home anyway.
@delandaedwards9133
That's totally different. Everybody pays property taxes.
I think most people would appreciate having only taxes to pay rather than a mortgage + taxes. 😳
@@alphaomega1351 It depends on where at. Cali? Sure, their taxes are fair. Texas? Yikes, no thanks.
Research the “Title theory” vs. “Lien theory” different states apply different theories.
Lien Theory:
In a Lien State, the deed stays with the borrower, and the lender places a lien on the property using the mortgage. The lien is extinguished when the loan is paid off in full. Meaning the borrower legally owns the home and holds title, not the bank.
Lien Theory States:
Arkansas
California
Connecticut
Delaware
Florida
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
New Mexico
New York
North Dakota
Ohio
New Jersey
Pennsylvania
Puerto Rico
South Carolina
Wisconsin
@@sunflowerlady2057 I think you got whooshed. Yes, people legally hold title. But you don't truly own something unless you are free of the payment for it. Try to stop paying your mortgage and you'll find out who really owns it fast. It doesn't matter what semantics you use. It is theirs until you pay it off. And it is always the governments as you will never pay off the property tax.
One of the main reasons there is so little actual inventory (approx 1.1 million) homes for sale.... is because investment corporations are buying up entire housing developments as soon as they are available, and some builders are given first dibs (so to speak) to these companies. Then these investment companies are jacking up rental prices. It's insane. Companies should not be allowed to do this. Family homes of all sizes should be offered to the average home buyer (to live in) not to these investment companies.
The housing market is grossly inflated.
Interesting! If i had that capital, i would have some flexibility. I would consider diversifying across different asset classes.
Absolutely. It's crucial to have a well-thought-out plan, especially considering the current state of the global economy.
I agree. Given the uncertainties, it might be wise to allocate a portion to safer options like bonds or fixed income securities.
But don't forget about growth potential. You'll want to balance safety with opportunities for higher returns, maybe through a mix of stocks and real estate.
The problem is that people don't have the knowledge needed to succeed in a challenging market. Only highly qualified professionals who had to experience the 2008 financial crisis could hope to earn a high salary in these challenging condition
Market conditions can change rapidly, impacting the performance of different asset classes.
Some people are just not market/math smart, Find it boring or don’t have the time to commit and learn. And at the end of the day, Investing comes with risk and a lot of people don’t want to deal with it.
proper research, good analysis and luck is what you need to make profit in this constant market decline.
Buy and hold.
Buy a little at first.
Buy with a purpose.
And for the love of all thing do not invest more than you can afford to lose. Always have other, safer monetary channels and backup funds.
it's all about finding the right moment to take advantage of and generate colossal profit, which is why you need to do your research
Even with the right technique and assets some investors would still make more than others, as an investor, you should’ve known that by now, nothing beats experience and that’s final, personally I had to reach out to a market analyst for guidance which is how I was able to grow my account close to a million, withdraw my profit right before the correction and now I’m buying again.
How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
I’m sitting on cash, so a crash would actually help me, but I don’t want to see people losing there jobs or homes either. Maybe I will just stop waiting for the “crash” and try to get a good deal on unrestricted land and build a smaller home. It may be a little more expensive, but at least I get what I want.
FOMO = Not good.
@@L.Fontein7 hind sight is always perfect. This is where we all wish we could peek into the future so we had some clue as to what to do now.
Other ppls suffering will be your time to buy like in a crash. You should not have to have half the house you earned.
I’m a little confused… pretty sure people with those low interest rates probably wouldn’t be able to upgrade since the value of homes skyrocketed. I’m no expert but why would someone sell their home just to spend double for probably the same type of house they currently have 🤷♀️… Florida market is just insane.
This country just needs prices to be average again.
if the economy is "good" but NO ONE can afford to buy or rent without burning up savings and over half or 3/4 of their income...then is the economy not really already wrecked?? what is the point of having houses if no one can afford them?
all the migration of people from states that have high home prices to states with lower home prices drove up home prices there. Corporations buying up a lot of housing stock and not renting them also constricts housing supply. real estate agents drive up housing prices too. Let's have a housing price reset.....requires a crash...painful....yes....bettwr than high prices keeping inflation higher
Just made a home sale sitting on $545K equity, not sure where to go from here. Is it a good time to buy into stocks or do I stay 100% cash?
I wouldn't stay 100% cash, banks are ruining us in real time with inflation, my best suggest is to employ the service of a portfolio advisr
True, despite having no prior investing knowledge, I got fully invested before the pandemic and pulled $150k in profits that same year. In reality, all I was doing was following professional guidance, and as of today, I'm only 10% shy of a million dollar portfolio.
@@speak2selwyn this is huge! i'm new to investing and seeking best possible ways or areas to invest for long term gains, figured its best to discuss with a proper advisor... mind sharing basic info please?
She goes by ‘’Karen Lynne Chess’’ I suggest you look her up yourself. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
curiously copied and pasted Karen Lynne Chess on my browser, easily spotted her site and was able to send my message across.. thank you for putting this out, it has rekindled the fire to my goal
It's all crooked from the top down. Stacked against the average person to buy a home.
I’m in Ohio and the housing market here over the last 7-8 years is unlike anything I’ve ever seen. Homes that were bought for $130K in 2015 are now being sold for $590k. I’m talking about tiny, disgusting, poorly built 950 square foot shit boxes in quiet mediocre neighbourhoods. Then you’ve got Better, average sized homes in nicer neighbourhoods that were $300K+ 10 years ago selling for $750k+ now. Wild times.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
Yeah, financial advisors could make a lot of difference, particularly in a market such as this. Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are a lot of wealth transfer in this downtime if you know where to look. I have been using an FA since 2019, and I return at least $121k ROI, and this does not include capital gain.
I'm pleased I found this conversation. If you're comfortable with it, could you share how I can get in touch with the advisor you rely on for your investments?
Vivian jean wilhelm is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I find this informative, curiously explored Vivian on the web, spotted her consulting page, and was able to schedule a call session with her, she shows quite a great deal of expertise from her resume.. very much appreciated
For about 120 years or so, house prices increased by roughly the rate of inflation. Around 30 years ago, the federal government went into full market-manipulation mode in which the central planners (including our beloved politicians) did everything possible to drive house prices upward faster than the rate of inflation. As a result, the house-price-to-income ratio increased from around 3.5 times to 7 times, making houses unaffordable for most people who don’t already own a house.
I’m definitely in the camp that wants house prices to collapse to fair market value as quickly as possible. First, I want to buy a house but not pay more than FMV. Second, we need to make the correction painful so that the central planners will never try this nonsense again. They are supposed to protect us from market manipulation by businesses, not engage in market manipulation to benefit themselves and their wealthy campaign donors. The correction will be most painful for those in the real estate industry who have unfairly benefited for years by the insane house-price appreciation. As I understand the facts, most homeowners own their home free and clear, so their loss will be a paper loss. On the other hand, they will pay lower property taxes, lower homeowners insurance premiums, and probably lower maintenance costs. People waiting on the sidelines will finally be able to buy a house for FMV. Yes, the correction process will be painful, but the current situation is extremely painful for most Americans who want to buy a house.
Fully agree with you. You know what is up.
You're blaming central planning for private equity ownership of single family housing stock just like every conservative blowhard.
Only 2 times in Americas history have home prices collapsed. Both were the result of an industry wide systemic banking collapse and massive unemployment. Until those two factors converge this conversation is pointless. A housing collapse cannot happen without an industry wide banking collapse. Most people will not be able to take advantage of a collapse either as credit will be very tight and 1/5 to 1/6 will lose their jobs rapidly.
The impending collapse of the pricing and chaos in the jobs and other segments of the economy = opportunity.
If you miss out or aren't ready this time, don't worry, the central planners are already gaming out the next ride up and down.
@@ErnieBert-eg8kd Try again, around every 28 years the economy, including housing, experience a major reset.
we are already in a recession.
My advice to everyone is this : if you want to grow big this year especially in your finances. Be willing to make investments. Saving is great but investing puts you on a pedestal where you wouldnt have to worry about savings as you do now. With Samantha Jack, my portolio is doing really great and im proud of the decisions i made last year.
Samantha Jack's strategy has normalized winning trades for me and it's a huge milestone for me looking back to how it all started.
She is all about simple technique that are highly profitable, I really admire her winning mentality.
Wow. I'm a bit perplexed seeing Samantha Jack being mentioned here also. Didn't know she has been good to so many people too, this is wonderful.
gram with her username
Fxsamanthaj, that's it
I’ve seen too many homes purchased by foreigners (not living in USA), decent homes purchased by “investors” and flipped for tens of thousands more, and other buyers paying way over asking. Doesn’t help I live in Silicon Valley
Yes! I was going to comment on this. But whenever I mention the country that shall not be named, (where all the “investors” are from) UA-cam automatically deletes my comment.
Wow, that makes complete sense. I was wondering if it wasn’t common knowledge because I don’t see it online(investor origin). Thanks for confirming it. I don’t like to think about it too much because that leads to a deeper rabbit hole.
I just left a comment but I think it got deleted
Wowww I just tried 5x to write the title of the video where they speak about this topic, but it automatically got deleted each time. I’m really shook right now. I reworded it different ways each time.
@@Anonymous0996no way…. That’s unbelievable. They don’t want us to say
2008 there were people that had unverified income , they couldnt affort the home.
now its wall street and greed mongers flippers big problem
Here in Atlanta there are SO many houses on market people are dropping prices like crazy and houses are on market 2-4 months! We’ve been trying to sell our house just south of Atlanta airport for 2 months have dropped price by $40k and still have had 0 offers. It’s nuts!
Texas too. especially houston area......
As terrible as the last crash was, that’s how we got a good deal on our house. Unfortunately, given the wealth income divide we have in this country, it’s also the only way for many people to buy an affordable home. The catch is that you need amazing credit and it will be a terrifying financial environment where you’re wondering if you’re going to keep your job or not.
I agree with you. The economic downturn is coming as we are in a state of inflation
Build good quality inexpensive RANCH homes. You will make money, no matter the economy.
Start early with diversified investments in stocks, bonds, and real estate. Maximize contributions to tax-advantaged accounts like 401(k)s and IRAs. Regularly review and adjust your strategy to ensure security.
Successful investment starts with clear goals and risk assessment, often best done with a financial advisor's help
James Clark's market insights have consistently led to profitable decisions.
I recently sold half my tech stock holdings due to all-time highs, leaving me with $400k. Should I invest in ETFs now or wait for a market correction considering potential inflation?
Celebrating a $30k stock portfolio today from a $6k start. Investing wisely has given me time for family and future plans.
From $37K to $45K that's the minimum range of profit return every week I thinks it's not a bad one for me, now I have enough to pay bills and take care of my family.
In 10 years a home building lot went from a market value of $7,500 to $90,000 adjacent to my residence, and I reside in a good neighborhood. A 3bed 2 bath 1800 sq. ft. home went from $120,000 to $439,000 in the same time span. So what's the problem? Please let me know 🤨🤫🙄.
Yep. Totally agree.
Thank you for your videos, Jackie !
You are so welcome! Thank you for always watching!
1.1 millon are for sale and 4.3 million homes are being held empty by corporations to create this demand. This is exactly what they are doing in NYC with Apts. Leaving them empty to create demands. How do they leave them empty? By over pricing them so only those that can afford to rent will rent. It's a joke what is going on in NYC.
Be for real 😮 How you gonna buy a house with NO job and No savings.
Buy it from a squatter? lol
You’re not. You’re doomed to rent forever.
I'm a flipper from Europe but still watch your channel for trends coming here in a few years
Very good video.
Bought my house in 2011, the most I could get a loan for was 108k, banks weren’t lending luckily I found a cheap house for 105k
I’m happy with my 4 bed 2.5 bath at $1300 a month.
Pretty sure the only reason we have low inventory isn't because of a lack of actual housing that is built, it's because there are people in it for the money who own multiple homes and aren't selling. Who buy up homes, apartments, etc. just to make more cash while already having enough money to do that in the first place, taking places off the market for real estate business.
Always helpful information. I like educating myself this way
Thank you for explaining this. I live in Huntsville, Alabama and for the past two and half years they have been building a new subdivision on every corner as well as apartment complexes everywhere. I have just wondered how long this can go on.
Good explanation. A few other things helped foment the 2008 housing crash. As mentioned, unqualified buyers with ARMs, then buying new vehicles also on credit, then gas spiked to $5.00 per gallon. So, driving new on credit vehicle with new high insurance bill, costing $$$ to fill up the tank; plus, insurance on overpriced home, utility bill on overpriced house…then no buyers for anything else resulting in businesses laying off people (who can then no longer make their mortgage and car payments). It all snowballed.
Today, certain things are snowballing like in ‘08. Tip: have savings, don’t over-extend credit. Try to help those less fortunate. :)
I live at the beach. Ridiculous prices. Even in a crash,I don’t think it’ll affect prices here.
I will never forgive unregulated banking for the crash of 2009, my family lost all our assets, stocks, homes we had rented, and no jobs we had to sell them all at a loss, we gave away lovely places at rock bottom and lost all equity, don't know why it was allowed to happen, 35 years of hard work and investing in RE and we lost it all. I will never forgive it or forget it.
Bought my house in 1989 with a 10.5% VA loan. Refinance later with a 7%, then housing market crash and the bankrupt mortgage lender didn’t clear the lien on it (Chase bought the mortgage and they were the responsible party to do it & found out during a title search when I tried to sell it). Please check your county recorders for your liens (original, 2nd or 3rd mortgages) after you paid them off. It doesn’t matter if you get a notice from your mortgage lender saying you have paid off the loan, if it’s not documented at the recorders office you can’t sell your property.
I was one year into my first post college job when the 2008 crash happened. Within months I was laid off and I was working in an industry that had absolutely nothing to do with the housing market. If the same thing were to happen now I would probably come out a bit better, but there definitely is no guarantee.
I don't see a problem with ant of this.. lower the cost of housing so I can purse a home .. and my kids.. how much does it cost to really build a house... low inventory..smh.. if corporations stopped buying single family homes and turn them into rental properties.. it's not all interest rates.. it's the builder markup... the greed is astounding
There is no political will to end corporate home investment or the construction of affordable homes.
If you have yours, great - if not, good luck.
There has been 11 years worth of inflation crammed into the last 3 years. House prices are going to go up higher but we all need to be making much more money
Crash happened, all the corporate LLC would buy them up 🥃🔥🤣💵🍋🟩
Maybe that’s the plan.
@@nokateno Wouldn’t be surprised 🫤
We don't even need a crash. We just need to pass laws to get institutional investors out of SFH.
Your videos are always informative and captivating. You don’t fill your videos with word salad. You get to the point with facts supported by data/evidence. Thank you. I enjoy your work.
For decades, over one million new homes were constructed annually in the United States, but this trend halted after the recession of 2009. In the last decade, the number of new homes built was roughly half that of the previous six decades. The situation has worsened in the 2020s, with builders focusing on fewer but larger homes, increasing the average size by 1,000 square feet compared to the first homes of the baby boomer generation. Local governments ought to devise plans for new affordable housing developments, including infrastructure like sewers, electricity, roads, and water. However, I remain skeptical about this happening. When I proposed the idea of using land for average-income housing to a government official, their immediate response was, "We're not going to do that."
I hate to wish for a crash.. it is going to be UGLY. And people with some cash saved will have a bargain shopping feeding frenzy while the poor get poorer. But the crash is inevitable and needed. Blame our corrupt politicians and monopolistic oligarchies.
Ugly
Literally missed the entire point of the video didnt ya?
An "economy" based on a bubble(a rapid apreciation in value), is really not helping anyone.
Or we could just have 90% of our income go to rent and mortgage
Can you do a video on NYC market specifically the 5 boroughs
Oh well. Hosing prices are out of control.
Absolutely, they expect citizens to “adjust” to higher prices…News Flash: LOANS ARE ALREADY DEFAULTING. They act like its not 2024 and we can’t find the stats for ourselves 🤣….its not the peoples fault that the real estate industry got high from the surge of free money. They were worried about getting more money, ok cool….now the population needs a market crash. It will sting in the beginning but be worth it in the end.
We have an interest rate below 3%, and my husband got our house at the end of 2012 for about 245k. Very nice house in a nice area in Arizona. I would love to sell and move more rural, but no way with the interest rates! I'm counting my blessings for what we do have🙏
The only way to wait out the increase in housing costs it to rent. But rent has increased so much that renting is just as unaffordable. Demand goes up, prices go up. Prices become more and more unaffordable which causes the demand to go higher and higher. I’m not hoping for the market to crash, I’m expecting it at this point.
So I would like to know about these corporations buying up a lot of houses?? How is that impacting the market?? There are so many empty homes out here. I have traveled quite a bit and see empty homes all over America??
Short term pain is needed for long term prosperity. Home prices fell in many markets in the early 90s despite better loans.
Pain like other people loosing jobs and homes and becoming homeless so you can get into a house?
@@plywood7894people are homeless because of the fake values driven by the flippers and investors. A crash avoids a lot of violence and harm to the scum hoarding homes
@@plywood7894 Well higher prices aren't helping either.
Lower prices lead to more savings and job growth.
When the mortgage rate was brought down to 3 percent, it created a mess that we haven't recovered from. People were buying houses that were over priced because the mortgage rate was under priced. Money became worthless. So, a market crash is nothing more than bringing the prices back down to where they should be. Flippers are trying to double their investment in 3 or 4 years.
Well yeah not to get political but that was trump's doing He did that and this is what happened I know plenty of people who have a 2-3% interest rate now no way they selling even if they bring it down to 5%.. its too much still. That being said NO WAY they bringing it down to 5%. certainly not from one day to the next..
The condo market crash happened in 1995 and we were able to buy a half duplex for less than $100, 000 a few months earlier it would have gone for $134,000.
What do you think about the apartment, condos, and townhouse construction going wild in the morris county area. Every little inch of open land is getting a multi floor complexes.
High supply. Low demand. Prices drop. Fed watch this. Stagnation-stability-strong economy. Lets do this people.
The official poverty rate in America 2022 was 11.5 percent, with 37.9 million people in poverty and its rising pretty quickly nowadays..many Americans don't even have 23$ a day(powery threshold in the Us)
For comparison: Thailand has a 6% poverty rate and its going down and Sweden/Norway/Finland/Denmark not even 1% poverty
Those European countries pay above 40% in taxes which wouldn't fly here 😂
@@ericg1149 nope evil things like free healthcare free dental care for young ppl up to 25 yr old, free education even at univeristy level with genererous goverment loans hel they even PAY ppl to study..yeah scandinavians get PAYED for study etc etc thats evil..and unamerican and they are the most happy countrys i the world too..and have the highest quality of life..
HELL NO!!
Living on the streets homeless with less than 23$ a day is the american way and american dream nowadays ..
🤣
@@ericg1149 Combined Federal, state and local taxation in the US greatly surpasses Europe.
I think it’s going to be a housing correction not a housing crash
Houses doubled in value overnight
Houses won’t go back to where they were before the spike but they’ll probably drop 10 to 15 percent
This. Can we please go back to 2019 prices please and thanks.
I live in a good town and schools are excellent. Builders start offering closings cost pay up to 10,000. We have alot house for sales and they start reducing prices.
Going up in the northeast but seems to be going down in florida
The biggest problem with the housing market now is the supply. At this time, it seems like rates will only have a minor impact. We need to see an influx of starter homes built. For millennials, gen Z, and even boomers. Many Millennials still cannot afford today’s prices and lots of boomers want to downsize if it makes sense. Until we get lots and lots of new builds, can’t see this problem going away.
If people sell their house, they will need a new house to live in. People selling OLD houses won't bring in new inventory. Jobs need to get lost and foreclosures need to skyrocket
regulations to make it so foreign investors and institutions can not purchase single family homes would lower pricing as it would bring more supply online. This can be achieved without job loss.
It won't happen.
We live in an era where everybody has a "right" to everything.
Hyperinflation is where this story ends. Nothing stops this train.
I know several people who have 3+ houses. So no, not everyone selling their house will have nowhere to live.
foreclosure won't happen. currently the number is way too low and people have way too much equity while having low fixed rate. 2008 happened because of bad loans like Ninja loan with ARM. And those people who aren't even qualified to buy one house bought 10-20 houses. Some people even bought houses in their dogs and cats name. It's not like that now. The crash will be from other sources.
Silver tsunami inevitable and will bring more inventory in next 15 years
With all the new developments scarring our landscapes, I don’t believe that the inventory is low. It’s just bad. The new houses are too big, too ugly, too expensive. Huge dumb cathedral ceilings. Cheap materials. Developers have a lot to answer for. Bring back the 50s size houses.
Seems like tax policy is exacerbating this. Bigger house means bigger mortgage and bigger tax deduction. Recent tax law changes reduced the cap somewhat and encouraged people to take the standard deduction, but the cap is set to revert back to $1m in 2026.
They should just eliminate the deduction, especially for new construction.
Even at 5%, I wouldn't be motivated to sell my house. The difference between 2.5% and 5% is huge. Couple a 5% rate with insane housing prices, and I would have to seriously downgrade in order to stay within my budget. I'm good right where I am and will remain here until rates get back to low 3% to high 2%, which will likely never happen again. I can't even rent a decent condo or apartment for what my mortgage payment, including escrowed tax and insurance, is now.
Illegals flooding in through the border and taking up tons of rentals is putting a lot more stress on this housing market.
I don’t even know what to say, I lost brain cells reading your comment.
@@goosinator6066 Okay, I’ll spell it out for you. In case you didn’t notice, there’s a shortage of housing in this country. When over 6.5 million illegals flood into a country within the past 3 and a half years, they need places to live. Houses are then purchased and rented out to them. This causes an increased demand for housing. It’s simple math. If you still can’t comprehend this then I don’t know what to tell you 🤦🏼♂️
@@GovtWatchdog Oof, I have a CS degree. I kinda have to know more than simple math.
@@goosinator6066CS degree?
@@L.Fontein7 Computer Science
My brother's home value is half million dollars and his mth in nj with taxes is only 2000 a month. There's no reason for him to move.
We have not only a generational housing shortage but also a migratory housing shortage. Over the past 3 years we had over 11 million immigrants come in to this country. Therefore take the 8 million homes we are short and add another 4 to 5 million at least, to account for migrants, and that’s why corporations buying homes like there’s no tomorrow, these companies are projecting a massive increase in the demand for rentals due to this shortage, which will result in perpetual generational tenants.
Are a lot of new-construction homes being withheld from official inventory counts? (Making availability look tighter than it is?)
So the problem with this video immediately out the gate is that the negative effects of a housing market crash are already upon us. Mortgage applications are at an all-time low home. Sales are at an all-time low. Realtors are struggling and so are lenders. Next is the continued suggestion that interest rates are incredibly high. No! No interest rates are not high!the way that everyone behaved post pandemic was absolutely disgusting and now we all have to pay for it. Even people like me that didn’t take advantage or make foolish decisions.
I wonder the reason foreclosures was not mentioned. Many layoffs are happening and regardless if they have a low interest rate, if they cannot make the payment they have to walk out.
or they could squat legally in their own house
Same here in Wisconsin. I live on Lake Michigan in a fairly cheap town. And all these Chicago investors are buying up all our houses. We saved up our 20% and can’t even buy a home for our family.
As long as loans can be bundled into securities instead of being held by the original loan companies loans are at risk. It’s always tempting to risk other people’s money
Maybe higher interest rates, but you can always refi later and change that. You can't change the price of an overpriced house.
Its crazy how so many people want other people to become unemployed so they can take their house. Its like saying to a co-worker or neighbor I hope you lose your job so I can take your house because a housing crash doesn't happen by itself with no other sectors getting destroyed
That is how bad the situation has become and government are doing nothing to take the pressure off. You cant expect any sympathy as a home owner when others cant even get a foothold into the market.
08 was exactly like that. Easy to hate those folks who bought a foreclosed home, but what about the person who made a very bad decision and got in over their head?
I foresaw the housing crisis and sold my property. I then put it in the market, about $200,000 of it. That was late February. I've lost more than 40% of my portfolio's value. It makes me really sad. How can I turn this situation around?
This is really sad. If you're not who understands strategies to invest in the market, why not seek a financial advisor to help you grow your portfolio?
I wholeheartedly concur; I'm 60 years old, just retired, and have about $1,250,000 in non-retirement assets. Compared to the whole value of my portfolio during the last three years, I have no debt and a very little amount of money in retirement accounts. To be completely honest, the information provided by invt-advisors can only be ignored but not neglected. Simply undertake research to choose a trustworthy one.
That's impressive! I could really use the expertise of your advisor. Could you recommend who you work with, please?
‘’Aileen Gertrude Tippy’’ is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
My best money was made by total luck - the market crashed in 2008, i sold my current house for even money and i found someone totally desperate and i bought at absolute bottom. You can make BANK but you must have a really good job to pull it off. There is a recession happening now you can totally feel it. Crash coming. Get in there don't fear - Crashes weed out the pretenders - everyone just not together enough to own a house. SCOOP THOSE UP!!!
They will get scooped up by corporations and evil silicon valley/tech chodes.
When mortgage interest rates are hovering around 5.75-6%, there won’t be nearly enough supply to meet demand and prices in the north east will continue to climb. But when they finally reach close to 5% after a while, I think we’ll finally see enough sellers return to the market.
But by then, the damage will already be done. So it doesn’t matter.
Support
Any connection in Rochester Minnesota
I appreciate you speaking truth. Although the news is discouraging. When will be the right time to buy on your opinion?
I can’t tell you that. One should decide to buy when their personal circumstances such as financial, life events allow them to be in a position to buy.
@@JackieBaker I hear you. What if someone has both however doesn't like to buy high? Sell high buy low. 😊
Something needs to happen. Houses /rent has went out of control. There is no reason to be seeing homes / rent this crazy.
Zillow estimate on my house was $167,200 about 2 weeks ago. Then jumped to $222,000 and now it's $227,200.
I suspect that the only way to fix this is to wrench land use control away from local governments who block housing development. This is likely constitutionally impossible but necessary because present homeowners have every incentive to block new housing developments.
I know this will seem silly, but does anyone know where to find houses with round windows or one round window in front? It's just a feature I REALLY like in home.
With interest rate cuts; supply will increase by a lot more than demand. Bringing prices down
Housing values dropped 20% in the last crash.
Drop in interest rate is not enough. Prices of every commodity out tgere needs to come down. The median income household can no longer afford a median priced home until prices and interest rates come way down.
House prices have hyper inflated because the US federal reserve does nt understand the relationship between zero bank rate and spiralling borrowing - everything gets expesive if you print money and give it away. The US econonomy will either boom or bust until fiscal order is restored across all fiat currencies.
Can you do a vid on building a new house - Jackie?
I am planning on that. Should be posted in 2 weeks.
actually a shift in taxation rate- raising taxes on higher income earners, and corporations, would be far more beneficial than a market crash. the lower and middle income earners would be better positioned for the inevitable bubble-burst, which would occur when this over-priced housing devalues. the ancillary effects of a crash would not be as far-ranging... so a crash is not so horrible if equitable taxation is in effect.