A Grim Warning to Home Buyers (It's Getting Worse)

Рет қаралды 96,176

Ай бұрын

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Ken and Danille McElroy discuss the current economic landscape related to the skyrocketing US home prices and the worsening supply and demand crisis. Learn why the housing market is becoming increasingly challenging for buyers.
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Пікірлер: 337

@okaydamian Ай бұрын

People will have to accept reality that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. I now look towards the stock market to fuel my millionaire goal. Sure I'm not alone in my chain of thoughts.

@Charlesman_T Ай бұрын

U.S. stocks have historically been the best investment. Treat it like real estate, don't panic sell and impulse buy.

@LupeBaptista Ай бұрын

I like both. But in my experience, most of the millionaires that I know have gained their wealth through diversified investments and they all had a sort of advisor helping out with informed decisions.

@fromthebirchwood Ай бұрын

Agreed, advisors are the ideal reps for investing jobs, and straight up! that's how I’ve stayed afloat for 5 years now, accruing nearly $1m in ROI, after 100s of thousands invested. IMO, home prices will need to fall at least 40% before the market normalizes.

@MAnderson5 Ай бұрын

@@fromthebirchwood real estate prices exploded, interest rates exploded, but my wage the same, i'm screwed! who is your advisor please, if you dont mind me asking? in dire need of proper asset allocation

@fromthebirchwood Ай бұрын

She goes by ‘’KAREN LYNNE CHESS’’ I suggest you look her up. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.

@jasonfuller1001 Ай бұрын

Home prices are not hitting record highs. The average home selling price is showing increases because of the $1M+ home sales. Only rich people are buying houses right now. Here's how an average gets screwed up. 100 guys drinking in a bar. Warren Buffet walks in. On average, the bar is now filled with millionaires. The truth, there is one billionaire and 100 regular dudes.

@michaelm1573 Ай бұрын

Say what you want but you can't get three bedroom two bath dump in Broward county for less than $400,000... And if you don't want it to have to have anything done to it you're looking at $550k

@noname-mm9of Ай бұрын

Thanks for explaining to the world how greed and money works

@michaelm1573 Ай бұрын

@@AshkanAbedian-qg2ni you grossly misunderstood me.

@jasonfuller1001 Ай бұрын

@@passiveaction But, on average, everyone is still a millionaire. 😆

@firstjohn26 Ай бұрын

Certainly this is happening in some areas but not in areas that I follow, and I don't think it is happening nationally. In my areas, it's actually the opposite - the $1M houses are sitting longer and anything under 500k has several offers over ask.

@apple1231230 Ай бұрын

Crashing in Nashville. Inventory is skyrocketing at record rates, price cuts are skyrocketing, sales volume has plummeted, and delisting are skyrocketing. Finally, according to the MLS in Davidson count (I’m a realtor) price per square foot sold has dropped about 10% from 2022 highs. Looks like we’re maybe 1/3 to 1/4 into this 2-3 season crash before we trough at I’m guessing 20-30% lower than we are now. It will be a great opportunity for buyers as I’m sure interest rates will have lowered to 4.5-5.5% by then. Not sure if we’ll have a full blown recession, but I imagine at least one weak year after the election either way it goes. I’ve got a lot of money saved and actually could’ve bought a house for over a year now but I wouldn’t touch the market with a 6 foot pole. The bubbles just beginning to pop and I’d rather not economically ruin my life by buying such an inflated asset right now.

@nickvolz4442 Ай бұрын

Sounds like another form of 2008.

@waltersobchak7759 Ай бұрын

Crashing in Texas too. Don’t listen to these false numbers. When the only homes selling are 1+ million dollars the average is going to rise. I’m seeing price drops every single day and Fort Worth is back to highest inventory in 10 years.

@5harkbyte460 Ай бұрын

@@KennyCronin-wq8xq The economy will trend in the direction of its favor, regardless of who is elected. Moreover, this genie is already out of the bottle.

@02nupe Ай бұрын

It’s correcting at most , it’s definitely not crashing. This is not 2008 by any means.

@ajchafetz1460 Ай бұрын

No guarantee that rates come down that low. We could be entering a new era of higher inflation expectations. 10 yr could easily climb from here and keep us in the 7-8 range for next couple of years. Not the base case, but could happen.

@xpicklepie Ай бұрын

Back in 2011, I saw the low rates and bought some rent houses just to get the mortgages. I didn't even graduate H.S. and even a dummy like me could see it. The banks were barely in business in the wake of the mortgage debacle, but if you could meet the air-tight standards to qualify for a purchase, it was shooting fish in a barrel. To say that it's worked out well is more than an understatement. So many people were asleep!

@jdmjdm2094 Ай бұрын

Same, I bought a place for $100,000 in 2012 and sold it in 2016 for $215,000. Wish I could have bought more.

@edwardsanchez3708 Ай бұрын

Stop acting like your Dustin Hoffman In the rain man and your playing realestate like he plays/counts cards 😂

@besnkinic Ай бұрын

2021-2022 are the polar opposite of 2011-2012. neither of those eras will repeat again, and whatever strategy or mindset paid off then would not apply moving forward

@xpicklepie Ай бұрын

@@besnkinic Yup. I haven't bought a cash-flowing deal since 2015. The window closed then and it's now bolted shut for at least a generation.

@joshfgfg Ай бұрын

@@xpicklepieopposite for me. It was difficult to make yields (Cap rates) work in the uk in the 2010s as rents had barely risen. Then they jumped up and now, property works even with higher rates. Plus the future looks brighter now for capital growth than it did in 2016 (rates were already rock bottom then).

@artisanguild8997 Ай бұрын

In our area, it’s really high interest rates, home prices, and consumer concerns on the economy. , not supply of housing. There are so many homes that are in the market for months and have to reduce their price now to at least garner attention

@TaggeGust 29 күн бұрын

I will be forever grateful to you, you changed my entire life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Charlotte Miller.

@jadewashington7 29 күн бұрын

I'm surprised that you just mentioned and recommended Charlotte Miller, I met her at a conference in 2018 and we have been working together ever since.

@mikesnoek 29 күн бұрын

She is my family's personal broker and also a personal broker in many families I'm United States, she's a licensed broker and a FINRA AGENT in United states

@bennettross1 29 күн бұрын

The very first time we tried, we invested $1000 and after a week, we received $5500. That really helped us a lot to pay up our bills.

@aarizphilip 29 күн бұрын

I'm new at this, please how can I reach her?

@TaggeGust 29 күн бұрын

she's mostly on Instagrams, using the user name

@mike125520002000 Ай бұрын

Hey Ken, I have a lot of respect for you and will thank you in every opportunity. You opened my eyes to building assets so I pulled an equity loan (during what I call the home equity interest loan crash)to build an adu. Rented the front house for 2500. (Peak of rents) and my mortgage payment is at 586, home insurance at 1034 yr, property taxes at about 3000yr. So I build on what I had worked so hard for which was paying off my house (bought it in 2011 crash). After being debt free 10.5 years after, which it felt like a blessing but I no income, found myself as a stay home dad and no assets). Now I have an asset (renting the front house) to keep putting a roof over my family and a warm meal. We made it religious to save 25 percent of my wife’s income to save for the next opportunity to invest on(the next crash) stocks, building another ADU since we have the space and city allows it because buying another house is not creating cash flow opportunity in my area.

@ericmartin70287 Ай бұрын

With inventory rising, this has got to be the peak of pricing, unless rates drop suddenly. Seems like this bubble will never end.

@firstjohn26 Ай бұрын

So many areas are at or below replacement cost - it's not a housing bubble, it's a fiat money bubble. Values measured in terms of fiat money are likely pretty solid.

@besnkinic Ай бұрын

@firstjohn26 that's a good point, but doesn't it look like the powers that be will prevent USD from being devalued further? IE not printing trillions more and zirp any time soon. the fiat devaluation was basically done in 21-22

@firstjohn26 Ай бұрын

@@besnkinic I mean devaluation in real terms. Against other fiat currencies, I believe the USD will remain strong. We are living through a great devaluation of all fiat currencies. So much bloat, inefficiency, and red tape are becoming entrenched in all developed economies, and globally we are just printing money to obscure that. The amount of labor and effort connected to actual production of anything useful is falling, and the total global amount of labor and effort available per capita is falling.

@CherylScottino99 Ай бұрын

Thanks for the update and keep doing what you do. My journey in the current market has taught me a lot of lessons, at the top of that list is that it never pays to live above one's means. I have managed to grow a nest egg of around $600k to a decent 7 figures in the space of a few months. Sad to say but a lot of us have poor money management skills. My 2 cents -get an advisor to keep you accountable and aid you make better decisions, Linda Wilburn has been helping me a lot, all through my journey. I find it better to pay a little bit more for peace of mind than worry about money or market trends and still get >burned.

@CherylScottino99 Ай бұрын

She's often interacts on Telegrams, using the user-name.

@CherylScottino99 Ай бұрын

@Lindawilburn

@Mikeygrady Ай бұрын

Trading with an expert is the best strategy for beginners and busy investor s who have little or no time to monitor their trades.

@georgigeorgiev6521 Ай бұрын

The key to financial stability is having the right investment suggestions for a diverse portfolio. Many investment failures and losses happen when you invest without proper guidance.

@79AdventureBaby Ай бұрын

It was quite challenging to understand the different trends on my own until i found out about Wilburn. Trading made easy.

@Ace-qy5vz Ай бұрын

Ken, Fed is not going to lower rates in September. They are not going to give up on correcting inflation. If they do, the country will go under sooner rather than later. Inflation cannot be allowed to run wild. They will keep rates high until enough companies go bankrupt, enough people loose jobs, so that enough mortgages foreclose to bring residential real estate down. It will just take another 6-12 months.

@erickillian313 Ай бұрын

We'll see! I would say you're making a bold claim considering 1) the fed flipping in the past 2) considering how good even one 25 bp drop looks with an election coming up 3) how inflation helps inflate the debt away. I think one small and barely consequential rate drop in Sept, then one more in first half of 2025 unless something breaks. But agreed probably 12 months until it would be considered a softening cycle, but that doesn't mean they won't ease rates a little for appearances. Only time will tell. Happy prognosticating.

@Gio-ue8ps Ай бұрын

I disagree with both of you, the people at the fed are liars. They also hate Trump. I think they might start cutting in July. Initially the market will sell off when they start cutting rates, that will make the fed cut rates even more. They’re not going to let Trump win.

@SupremeMotorsUSA Ай бұрын

They will lower rates before the election. Guaranteed.

@SupremeMotorsUSA Ай бұрын

And it will be a quarter point. That will only be for optics.

@irishman3375 Ай бұрын

They know Trump will win, so they want to collapse the housing market, and let their friends on WallSt buy them all up, remember, "you will own nothing" and be happy.

@slickrick2704 Ай бұрын

In Arizona Maricopa county there were 900+ forclosures. I checked today and there is only 198 somthing funky is going on 🤔

@ChazLuce Ай бұрын

Herndon and Reston VA is great for wealth preservation in a downturn. And amazing places to live. Northern Virginia didn’t shoot up in price much after COVID like other areas in the US. Homes here are still a discount relative to high incomes in NoVa

@chrisspear3551 28 күн бұрын

When I bought my frist house in 1999 it was 8 1/4 percent but the difference here is that it was on $130.000 mortgage not 400.000 plus mortgage.

@Bankerguy 18 күн бұрын

@@chrisspear3551 and what was the income difference? The value of the dollar matters.

@texlad04 Ай бұрын

In my moderately upscale urban Houston neighborhood that's still gentrifying, there are 64 residences of any type with a 3/2 configuration and at least 2000 sq ft listed and not under contract. 47 of those 64 are under 1M. 31 are under 750K. 18 are under 600K. I'm under contract for a house in fair condition (but needing some repairs and appliances) around 500K and getting a decent for market interest rate. But I had 3 viable for me options under 600K. 3. You're right - the problem is supply but specifically at a more affordable price point.

@jdmjdm2094 Ай бұрын

Prices in the Midwest have been coming down for the past few months. Lot's of houses sitting on the market and I see the prices coming down.

@dustinmarquand5301 Ай бұрын

You all do realize there is still inflation right?! Materials are still ridiculous and the tax point is very valid. My real estate taxes went $800 last year alone. Building is VERY expensive now.

@joegibson6041 Ай бұрын

A pvc pipe that was 1.98 three years ago is now near 7 bucks at Home Depot. Prices will never come down.

@ladycactus110 29 күн бұрын

We need to know the previous tax amount for your statement to be meaningful.

@dustinmarquand5301 29 күн бұрын

@@ladycactus110 not really. But from just over $4k to now $5 k a year for no changes on our 3 bedroom house.. that's a lot of money a month..plus ins is going up. I literally couldn't afford our house now if we hadn't built 5 yrs ago.. taxes were mid $3k 4 years ago after we built.

@moviehipster Ай бұрын

Always a pleasure to sit in this audience! I listened twice! Recommended to 10 others

@MA-id1hr Ай бұрын

This is all by design. And I won't participate even in speculating. This is all intentional.

@frankmarsh1159 Ай бұрын

Careful, your tin foil hat is slipping.

@hp7639 Ай бұрын

you are right. Black rock buying up is the clear indicator.

@Bankerguy Ай бұрын

Which market? Which housing sector? There’s like 500+ markets and there not all the same.

@dougg4633 24 күн бұрын

Design by who ?

@agrxdrowflow958 Ай бұрын

Swiss Franc left the gold standard in 2000.

@Jen_Tam Ай бұрын

Thank you both! Great information. Hopefully you all can talk with Zuber soon! He believes in smaller homes as well to help with the housing issue.

@GusAlarconn Ай бұрын

Great video, could you please explain what you mean by "Fannie Mae is coming for your equity"? How so and what does it mean for investors/home owners?

@TheTrailmeister Ай бұрын

People are NOT struggling to purchase homes! This is why the price of homes keeps going up because buyers are bidding up the prices. If they were struggling they wouldn’t be buying homes and the prices would fall, NOT increase.

@arboradvising6291 29 күн бұрын

Thank you Ken, Danille, and team for another great video on the housing market. Agree we need more inventory of properties for sale to slow the rate of price growth but interest rates and regulation will slow that progress and people with low interest rate mortgages who don't want to sell. Affordability will remain a challenge and owning real estate of any kind, especially cash flowing real estate, will benefit from the low inventory and high inflation.

@eliam.caputo6634 29 күн бұрын

Thank you for all you do. I lear a lot feom you guys. Question for you. I want to sell my house in tucson. By A mountain. 3500sf overlooking the city but some people are telling me it will be hard and it may go fir very low price. What do you think? Is been a rental for the past 8 years or so

@9xqspx6 14 күн бұрын

Love to listen to these episodes. So much to learn.

@KaayJaay Ай бұрын

The goat. Greatest of all time. Thanks Kenny. AZ!!!! Phx!!!

@wattasay2370 Ай бұрын

Great content guys!!! You are amazing!!! Ken I hear WA states now allows for multiple ADU’s why not invest into it???

@roncedad7032 Ай бұрын

Because the libs of seattle and wa state want to over regulate landlords. Tough to invest in homes tenants can stay in without paying rent.

@ronie6773 Ай бұрын

Love you guys!! great content

@Jdjdjfhehehd 28 күн бұрын

In my area, rentals are $2500 to $4000 for 2 and 3 bedroom apartments, not including monthly fees for pets, parking storage or utilities, homes are additional $500-1000 above rental units. I will probably will have to live out of my car starting august…average home for sale in the county is $950,000.

@landunlocked2423 Ай бұрын

You’re the single most helpful voice on KZfaq about investing and real estate and the economy

@cheryllewis590 17 күн бұрын

I’m from Austin and those adu are horrible 😤 they need more homes and the people hiking up the prices need to stop

@TheJoshheart90 Ай бұрын

This is a stupid question but what do be mean when you say get involved with underwriting these deals? I thought this was something that insurance companies and think banks do in order to understand the risk factors? I guess I’m just not understanding what underwriting means when it comes to investing in cash flow deals, I thought it was a job lol.

@timsmith8391 Ай бұрын

Inventory is up in Orlando and Tampa

@rathelmmc3194 Ай бұрын

If tiny homes are the solution you can just kiss the species goodbye. We know that when living space falls below a certain level the birthrate outright collapses. It would behoove the government to figure out how to get young families to have SFH.

@michaelward9201 Ай бұрын

Looking to government is the issue that led us here. The more efficient we make the market and remove regulation, the faster we allow price to fall to the marginal cost of production and removing the investor monetary premium.

@rathelmmc3194 Ай бұрын

@@michaelward9201 in other words to look to the government? Because who else is going to remove the regulations?

@monkeyfinger7949 Ай бұрын

@@michaelward9201 B.S. The markets are price fixing at every opportunity. It's a play of maximum extraction from the middle class. And they are getting away with it because of an impotent government.

@billscott6819 Ай бұрын

Rent is going down in areas where houses sat on market 500 days. I'm talking brand new construction that can't sell, going for 1700/mo for a 3 BR house brand new. These people are trying to scare you into buying high.

@brady_morgan Ай бұрын

I do not believe the Fed is concerned with home prices. They look at inflation from a macro level, not focused on one specific sector such as housing. Honestly, the Fed cant do anything to help housing inflation and they know it, so they choose not to focus on it. If they raise rates, homes are more unaffordable due to mortgage interest, but if they lower rates, that will raise home prices because you will see increased demand with no real change in supply. Even if builders were to increase activity based on a small decrease in rates, it takes time to get product to market once you have made the decision to build more.

@ming6856 23 күн бұрын

Thanks for sharing.

@karenjackson358 Ай бұрын

What do advise for first time real estate investors given the current market for flips and rental properties?

@Bankerguy 18 күн бұрын

@@karenjackson358 keep saving and keep running numbers until a property makes sense. They’re just harder to find now. I had to start looking into other markets not where I’m from. But I find them still. Some of the best ones I have, have been in the last year.

@jasonschneider5293 Ай бұрын

Wait, you guys are married? I had no idea

@buildingsfunnels5867 Ай бұрын

I thought she is the guys daughter..... money talks.

@zehuazhou3390 25 күн бұрын

@@buildingsfunnels5867 Wait I thought so as well..... They had the same last name. Where did you say they are married?

@leeroach3381 Ай бұрын

Very helpful Thank you for sharing

@Theextremepessimist 29 күн бұрын

We had a buyers market from 2008 up until pretty much now. Wait till the next buying market arrives.

@jamiehead3879 Ай бұрын

I remember a recent stream you talked about how rent should be coming down. What changed your forecast?

@DanilleAZRealEstate Ай бұрын

It still will bc so much supply hit the market, but after this supply nothing is being built so we will have a sharp increase in 2-3 years

@Bilbo383 Ай бұрын

Median home prices are only up because more new homes are sold vs existing. With so many builder incentives, builders can close at top dollar

@Bankerguy Ай бұрын

Nobody is leaving their existing low rate

@mike2959 Ай бұрын

Crashing in many markets. Most of Florida. Half of Texas. The new high is driven off of 1+m homes getting sold. But I do agree that higher and higher interest do nothing to inflation. We have seen this before. There’s many charts showing interest rates in comparison to inflation.

@Gadfly2025 Ай бұрын

Study WM Levittown and look for cheap farmland to build on . My Dad ran some of the development builds

@WholeFoodPlantPeople Ай бұрын

Love your show, but I end up wishing I had more plain English, slower explanation of what's happening in the market. I got most of it, but sometimes I feel as if you're speaking to industry professionals. I'm just a guy trying to make a few good money moves. Thanks for your insight 👍

@mervcharles8365 Ай бұрын

Increasing interest rates wasn’t designed to slow down one market. And to say it isn’t working is somewhat misleading. The growth in housing sales has slowed down like crazy. Are houses still expensive? Yes! But lower rates wouldn’t make these homes any less expensive.

@therealmarcindrozdz 29 күн бұрын

Great perspective!

@chrollifanboy28 28 күн бұрын

Not in Texas. We have an oversupply issue here. No one is buying. Lots of homes are sitting on the market for 6 months.

@dougg4633 24 күн бұрын

Just the opposite here in Massachusetts. There hasn't been any real housing development in the past 16 years. Not much land available, to many regulations, not much of a labor force.

@kennethrobinson7647 Ай бұрын

WOW! Could you IMAGINE, free floating interest rates in a capitalist society based on price discovery and NOT the FED setting Rates! OH MY!!!

@nathanielkam8019 Ай бұрын

If you get 10% in one year and then go back to 2% immediately after.... you are still 8% off forever. You need to get below target to catch up. But it is way out of proportion, ex going down to 1% (never gonna happen), would mean you get back to long term target in 8 years as you get 1 year back every year. So chances of pricing going anywhere near back to normal with a "soft" landing arr basically nil in any appreciable timeline

@kata7742 29 күн бұрын

What about becoming a lender? Would you recommend needing a real estate agent over being a lender?

@tsuipingho8946 Ай бұрын

Home prices may skyrocket as much as they want, but the low rate of sold units shows market has softened.

@davidb2142 29 күн бұрын

Real estate is local. There are many parts of the country where prices are coming down. One of those is Phoenix. Am I incorrect?

@timber-rider Ай бұрын

Unemployment is the missing element. But, it's coming. People are listing their homes at prices they themselves could not afford. Who do they expect will buy it?

@ashdav9980 Ай бұрын

In my area, all the northerners and Californians fleeing their high cost of living areas to displace natives in the areas they are moving too, all while incessantly complaining the new places aren’t just like NY or California.

@besnkinic Ай бұрын

They're just measuring it differently. 2x crappy part time jobs makes stats look better than 1 career level job that pays a mortgage

@anutkaschannel2478 27 күн бұрын

Big corporations will buy these houses and rent them out

@timber-rider 27 күн бұрын

@@anutkaschannel2478 Nope, it would be a bad investment. By the way, by 2035 15k boomers/day will be dying. And no, immigration won't backfill. Look to Japan to see what will happen to real estate outside of big cities.

@anutkaschannel2478 27 күн бұрын

Japan doesn’t have nearly as much immigrants as USA, I would rather look at Germany or other EU countries with massive immigration increase

@tjsokkerplayer Ай бұрын

I think home prices are a bit more complex than just increasing inventory. There has to be an environment where homeowners are willing to take a steep loss to sell their home. Once prices go up and are sustained, you have essentially accumulated a higher amount of homeowners at a new higher price level. These buyers aren't going to sell at a loss unlessed they are forced to as a last resort. You have to squeeze out some of these investors who bought at an overleveraged price. Increase occupance tax. Force commercial zoning for Airbnb. Design and implement a threshold for the amount of affordable housing each county must meet per capita.

@yonmoore 28 күн бұрын

Yea, everybody talks about ADUs but they have so many other legal stipulations that it gets pretty discouraging

@peterwilson9327 25 күн бұрын

The problem with ADUs is that you can't sell them individually. They are part of one large parcel and sold as such😮

@ahanv.8035 Ай бұрын

Sales have slowed Ken. Median price maybe going up, number of sales have dropped off a cliff.

@DanilleAZRealEstate Ай бұрын

Sales are still pretty strong in Phoenix. Seeing some seller concessions, but not many

@joeywharton5662 Ай бұрын

I have a strong feeling they will drop rates in Sept to spur a housing and economic boom in time for the election. If they lower the rates too soon, then inflation will also skyrocket. If rheg time it right, inflation will skyrocket after the election.

@inflationsux 29 күн бұрын

Think about what is different now vs. then. Is there still pent up demand, revenge spending, supply chain issues, free money from the government, record low unemployment. Most of that is gone or has moderated. I don't see a major driver of inflation other than too much government spending. The Fed could cut rates now but they don't want to or have to. A small customary rate decrease going into the election is possible but could be viewed as Powell weakening his stance in the fight against inflation. I think it will depend on the monthly data. Soft retail spending by the consumer this Christmas season would be the most likely cause of a rate cut and a cut before the election could give consumers confidence more cuts are coming and spend more this winter. I think the safe approach is wait to see what winter spending indicates and do nothing to alter the current course election or no election but the Fed chair being an appointed position may factor into the decision not only for the Fed chair but other fed members with ambitious goals. Politics whaddya gonna do?

@PaceMorby Ай бұрын

Thank you the shout out guys!!!

@Goldmouthperspective Ай бұрын

And more inventory isn't dropping anything. Places with a lot of new inventory still aren't at pre pandemic prices - not even close. And that's rent too.

@kentr.1391 28 күн бұрын

My mom and dad bought a house in 1967 for 25,000 and I took over mortgage in 1993 and I sold it in 2005 for 197,000 ,I built a new house in 2006 and started the new mortgage, the principal at the time was 417,000 it's now almost 18 years old and it's value is appraised at 378,000 ,so what I'm saying is look at how much the value of homes increased in40 years, versus now, by that that same increase my home should technically be valued at 2,000,000 so the actual housing bubble literally did pop in 2009

@tomcat8662 Ай бұрын

So what’s going on with home production? Are builders still expanding?

@DanilleAZRealEstate Ай бұрын

no bc interest rates are too high and uncertain to build

@onedropontv8863 Ай бұрын

This problem actually has an easy solution. Increase unemployment. Keep interest rates unchanged for another year. Europe cannot afford a recession the US can

@elizabethcostello8299 Ай бұрын

Have you watched vdo of Reventure consulting. He always lists homes with price crash

@JD_and_TheBanned Ай бұрын

You can’t add 10 million people to those looking for housing and expect demand to fall. Having said that - on the other side - more houses are available here but expensive.

@ayumu583 Ай бұрын

In my opinion the FED/Finance System needs to shake the speculators out of the market for a while. My guess this will create the needed supply.

@timharbert7145 Ай бұрын

Rates werent hiked enough and taxes on folks owning more than one home, whether for pleasure or business, is too low. Rates are going back to normal. Not higher. No more eb5 programs!

@1powerequalsgod 19 күн бұрын

The other things with inflation employers can not hire and raise wages just because rents go up or home prices go up. Unaffordable housing is an employer problem more than just for employees.

@jakobausterlitz8102 29 күн бұрын

Psst: the federal reserve has been lowering rates by buying debt and driving yields down. Esteemed colleagues should know this and communicate it to their listeners.

@timkozlow5258 29 күн бұрын

Just sold a small 3 bedroom house . Had 42 bids

@danw7864 Ай бұрын

Is it actually tho? Or are we just saying it for fun?

@TT-ei8es 28 күн бұрын

Ken the Fed’s mandate is to keep Inflation at 2% or lower. They don’t have to do anything regarding rates. They could care less about housing and the impact raising rates has on mortgages. If they did they would have lowered rates already. Fed decisions revolve around the inflation number and little else

@Seanpfree 26 күн бұрын

First-time home ownership is OVER. "Starter home" are over 400k average income is 58k. We've put in 77 bids in middle TN on first home and were outbid by cash investors EVERY TIME. Now, we're priced out due to price and mortgage rates. Wonder why Millenials and Gen Z are doom spending? Not getting married? Not starting families? Why is civil unrest growing while the wealth gap is larger than it ever has been in history? It's because this economy is not for us, it never has been since we've been around. It priced us out and left us behind before we got here. This doesn't end well for society at every socioeconomic level..

@Bankerguy 18 күн бұрын

@@Seanpfree it’s not over. Everyone’s been spoiled for the past decade. Buying million dollar homes in your 20s is what wasn’t normal. We’re just getting back to reality. People need to save more and plan more. Back to reality.

@sallyannmilavec990 27 күн бұрын

We have more and more for lease and many new multi family finally finished-so where are all the leasors? Oh, I mean, the illegal leasors

@momoxiaoshizi 23 күн бұрын

It’s totally working, just don’t work for certain sector of the market, aka the cash buyers or mostly cash buyers. But nothing from the government would affect these ppl anyways. Buyers always have the option to rent but sellers will have to sell at some point, divorce, death, unemployment or simply outgrown. It’s just a matter of time, inventories will come, as for how much, it’s based on the areas.

@grilledxcheeze Ай бұрын

everything you discuss indicates a large wave of unemployment is on the horizon. how are homes going to increase, or even maintain value when so much buyer income will be lost? i understand your incentive for wanting high prices but i don't think you should just be skimming over unemployment. what will you do when your tenants cant afford to pay you anymore because they lost their jobs?

@julietpotrykus9075 Ай бұрын

Danille you should run for office. You would be an excellent candidate and you have a good broad grasp of things.

@craigslist8011 Ай бұрын

What did he mean when he said the government was coming after the equity in real estate?

@xpicklepie Ай бұрын

Possibly the proposed "wealth tax" that will tax anyone with big real estate or stock market assets.

@wealthintruth6227 Ай бұрын

Unrealized gains in real estate property values, will be taxed

@QuonWill Ай бұрын

Love your show but prices are going to come down. It’s only a matter of time, even with fed keeping rates constant prime and mortgage rates continue to climb as expenses for financing institutions increase with inflation and book losses. What you see with increased listings , decreased sales yet constant prices, is equity money being stubborn which begins to tumble once banks come knocking on the door for liquidation. Once this happens listings blow up more (some in the form of foreclosure) and prices drop with desperate attempts to mitigate guaranteed losses. Just my take, it’s playing exactly how it’s suppose to.

@DanilleAZRealEstate Ай бұрын

We believe housing prices will cool slightly, but not anything like 2008. However we do expect an decrease in rates in septemeber so that actually could spike buying. It is hard to tell

@masoncnc 29 күн бұрын

Headphones for the speakers would be amazing on the ear shock

@jasonrod77 Ай бұрын

If they lower interest rates will that make the price of the houses go up in value?

@Bankerguy Ай бұрын

Depends on the specific market and inventory. If a market is already short on inventory it will only push the price up. It’s really location drive.

@boosthit811 27 күн бұрын

Shelter is the slowest to respond to intrest rates. Lagging indicator

@BinLiutrianglehomes 23 күн бұрын

so it is all about the interest rate

@anthonygood1335 28 күн бұрын

I don't think we need more building to see price declines. I've seen significant building in the past 10 years, and a few foreclosures should be enough to tip the market into a decline. My conclusion is that the higher rates will at least not lead to higher prices.

@Urgurl514 Ай бұрын

No one is addressing the implications of that. Every expert is totally ignoring this. The cost of living is unattainable for everyone.

@bobsmith1841 Ай бұрын

No one mentioned the possibility of rates increasing 😮

@kathleens7131 Ай бұрын

They need to refine their measure. Home prices are increasing because the wealthy and investors are not deterred by interest rates or the price. They need to look at the price points that are selling and use their education to tell them this is pulling the average price upward. Regular everyday people are not buying 350K and up homes. The FED needs some help here with Fiscal Policy. There needs to be regulation of investors in this market. Nothing else will fix it.

@DanilleAZRealEstate Ай бұрын

We need investors in order to build supply. There isnt enough housing.

@kathleens7131 29 күн бұрын

@@DanilleAZRealEstate We do not need investors to build house to only to rent them out at outrageous prices. No not what the American public needs.

@DONKALLSONG Ай бұрын

30y locked in mortgage is saving people, in Sweden 90%+ is floating (3month)

@codacoda565 Ай бұрын

It's hard to increase the supply. I can't find anybody to Work for us

@MelissaHobbs-qm8wi 29 күн бұрын

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?

@j5555785 Ай бұрын

Black Rock handles things like retirement funds. Real estate profits feed black rocks retirement fund capacity. The market crashing puts retirements in jeopardy. They can not let it crash

@AllinOne-fw9yx Ай бұрын

I I heard the government is thinking about paying some portion someone's mortgage. Thoughts?

@triforcelink Ай бұрын

That still wouldn’t solve the supply issue.

@AllinOne-fw9yx Ай бұрын

Fed wouldn't need to lower rates. Affordable housing is a problem for alot of reasons.

@mattyb1624 Ай бұрын

Raising rates, raises rent, which raises values.

@jmooch59 Ай бұрын

Canada has 5 year mortgages. This is not a similar comparison.

@duncanwallace7241 29 күн бұрын

The huge flaw is that QE is permanent because those U.S. debt interest payments are injected into the U.S. economy at $250 billion a month. Lowering rates does the same. Fiscal dominance has put the Fed in a no win situation.

@bluestarcesium 29 күн бұрын

Tariffs will eventually cause inflation, because businesses will raise prices to match tariffs. This is why the Fed has to keep interest rates higher for longer to prevent wage inflation from the tariffs.

@sallyannmilavec990 27 күн бұрын

Well, the home prices are coming down in TX