Is Dave Ramsey Still Right About The Housing Market in 2023?
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- čas přidán 1. 06. 2024
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With our economy still a hot mess and inflation sticky, U.S. stocks ended Friday’s session in the red with all three major averages notching weekly losses as inflation and global crises intensifies.The Dow Jones Industrial average dropped 1.24%,The S&P 500 shed 1.46%, and the Nasdaq Composite declined 1.62%. Shares are extending a downtrend. I have over $320k in stocks. Currently, my portfolio is down by 15%. Wondering if there are any short term opportunities I can invest in.
I'd say the safest approach i feel to tackle it is to diversify investments. By spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown. its important to seek the guidance of an expert
A lot of folks downplay the importance of fiduciaries until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? I'm in dire need of proper portfolio allocation
Sonya lee Mitchell is her name. She is regarded as a genius in her area and works for Empower Financial Services. By looking her up online, you can quickly verify her level of experience. She is well knowledgeable about financial markets
Google Sonya Lee Mitchell and do your own research. She has portfolio management down to a science
More immediately than a collapse in the stock or real estate markets, inflation directly impacts people's standard of life. It is hardly surprising that the present market attitude is so negative. If we are to live in this economy, we are in dire need of assistance. ETF and stock markets are still unpredictably volatile, just like the housing market. My $350,000 portfolio has been reduced to rubble.
A lot of people are still making huge returns on investment this period. You just have to be very grounded or solicit the help of a professional.
Especially because their expertise is centred on short- and long-term holdings for profit realisation and because of their distinctive research, it is nearly impossible for them to underperform, I prefer to seek the advise of financial consultants when making my daily investment decisions. My consultant and I have been investing together for a little over two years and we have already produced sizeable net profits..
@@maiadazz I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?
In fact, I'm not sure whether I'm permitted to say this, but I'd suggest searching for “Margaret Johnson Arndt” as she gained a lot of attention in 2020. She is both my coach and the manager of my portfolio.
This information is valuable. I quickly searched her full name and her website appeared instantly, showcasing her impressive qualifications. Thank you for sharing.
It was 9% interest on dirt cheap homes. It then became 3% interest on more expensive homes. And now it's over 7% interest on astronomically priced homes. At some point Dave needs to address just how impossible it's becoming for some people to buy their first home.
During the 07 housing /Banking crisis i heard the same, House prices rise 10% on avg, well that was BS. Then we were told because of Dodd/Frank we wont have bank liquidity crisis and we are in one. Its the same, its just repetition housing will go down, we just don't know what will trigger it and when. In my neighbourhood prices are up 45-55% in 2 years and some houses are up 60%. Now the only way you can remotely justify if your salary increase was 20% or so per year. Then you should be able to afford these prices.
It kind of makes the whole 100% down idea a bit more likeable. I'd rather save money and earn interest at .next-to-nothing% than not save and pay 7%... Maybe it isn't the most feasible for everyone, but it may work for some.
@@OpenCourse556 huh? You think people who are struggling with high home prices and high interest rates somehow have hundreds of thousands of dollars lying around to pay cash for their homes?
@Conner Productions Only if they save their money. It is amazing how much money you can save with no car loans, student loans, or credit cards.
@@OpenCourse556 You're out of touch with reality. You sound like an AI bot who was forced to watch too much Dave Ramsey.
I think the point that they’re missing is that first time home buyers and young people desperately want a housing crash. The idea of home ownership is fading away for a lot. Those who already owned can’t believe their good luck and those who didn’t can’t believe their bad luck. Those who owned houses that three years ago were worth 200k but are now worth 400k+ likely could never afford their home at the current price but have no problem wanting a young family, young person, or first time home buyer to pay that price. If you don’t atleast feel a little sorry for young people who are forced to buy a house that is now twice as expensive or pay rent that is twice as expensive without a similar rise in their wages then you’ve lost the plot and need to atleast consider the terrible C.O.L. Conditions young people are having start life in.
Higher home prices are bad for everyone except real estate brokers and the government. When home prices go UP, property taxes go UP, property insurance goes UP, house repairs go UP and remodeling jobs go UP--all your expenses go UP. So, there is NO change in revenue but COSTS GO UP. And, if you want to sell your home and buy a more expensive home, sales commissions go UP. Your asset gains are only on paper but your expenses will only be higher until you no longer need a home.
@@kwatl777 bro that’s great and all
But people who don’t own homes are far more heavily disadvantaged
You don’t want to pay as much in sales commission? Sell it cheap. But you won’t, obviously. And guess who gets screwed? My generation
I get what you’re saying but you’re comparing apples to oranges. You’re talking about an extra couple of thousand a year and we’re talking about a sticker price of $200k-$300k more
@@Royerdylen It's not about generations. It's about the 2020 lockdowns and the interest rates.
The buyers (not the sellers) are responsible for the higher home prices.
Most homeowners don't want to sell now. The buyers greatly outnumber the homes available for sale. So, the buyers try to outbid each other, which is what's driving the prices up. Of course, the sellers will take the best offer.
The market is still crazy where I live. I owned a house that I never wanted to sell. But, I was forced to sell it during the lockdown. Now, I'll probably never own a home again.
Don’t get discouraged. American real estate is still the 7th most affordable real estate market in the world. There are some very expensive cities, but there are many places where a decent income can buy a nice home. In most parts of the world real estate is priced out of reach for almost everyone as incomes are so much lower.
Bro, PREACH! That's the reality 100%
In my opinion, a housing market crash is imminent due to the high number of individuals who purchased homes above the asking price despite the low interest rates. These buyers find themselves in precarious situations as housing prices decline, leaving them without any equity. If they become unable to afford their homes, foreclosure becomes a likely outcome. Even attempting to sell would not yield any profits. This scenario is expected to impact a significant number of people, particularly in light of the anticipated surge in layoffs and the rapid increase in the cost of living.
I started house hunting in Jan and the rates were as low as 2.5%...now I'm seeing as much as 7%. Also homes jumped 100k and up in the same time frame. I watched 2 houses double their price. Guess I'll wait for the collapse, in the meanwhile, I think I’ll have to re-channel my focus to the stock market seeing as everyone says it’s a good time to invest.
@@ron04 Yes it’s a good time to invest in the market, stocks are currently at a discount due to the market crash, so yea buy low and sell high when the market recovers. I understand buying low and selling high is what the average stock investor is used to, but there are still various methods to profit from the present market without having to hold stocks for eons, I’ve personally made over $580k this past 6months from stocks, it’s all boils down to strategy application.
That’s quite impressive, what strategies do you apply to your investment?
Believe it or not, but I’m still pretty new to investing and I’m more familiar with real estate as opposed to stocks, regardless, I still manage to pull off decent returns though by simply just following the guidance of my coach(Colleen Rose Mccaffery) and nothing more.
I've actually been wondering what to do to my portfolio, I almost sold off Friday, I'll be retiring soon so the anxiety is just too much, I searched-out Colleen rose mccaffery and she really checked out, thanks! I really needed this
I know it won't happen, human nature and all, but I'd love to see houses go back to being more about being a place to live and less about being an investment.
Money over people
@@ElectronicHypnotic Agreed. Have been telling people around me the same thing. If society all chose not to get a loan to purchase a home, the prices will drop. Problem is getting everyone on board because people do know how well real estate performs. People are wanting lifestyles they really can't afford. Clearly, we can see that with everyone wanting houses but are being priced out of buying a home especially in hot market areas.
I want to own a home too, but I am not as willing to risk as much as others to get one. Saving up cash and having no debts is not the worst thing.
Houses are still bought by people who just want to move in them and settle down. For people who see renting better than owning, well, they are for investors 😊
That’s a novel idea actually
Then people wouldn't take care of them, that's what renting is for.
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 $600k savings other than moving in to an RV with my two kids and wife.
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.
this is quite huge ! what have you invested in ? much more info needed please ...
excellent share, just inputted her full name on my computer and searched online, top-notch credentials. Ive seen commentaries about advisers, but not one looks this phenomenal
Just be thankful… I got out of prison 3 years ago… make 30k stuck on parole and barely eating…. Wish I had a family man.
My husband and I had a 7.74 mortgage rate when we purchased our home in 1993 that was considered pretty average after coming off of years of inflation where interest rates on mortgages were as high as 18 percent. But we did not buy a super expensive home we bought the typical starter home of 1650 square feet 3 bedroom 2 bath. After a few years we felt fortunate refinance it at 5.50 percent. These 1 and 2 percent mortgages were unheard of since the 1950s. 6.5 percent is more average and normal.
In 1992 the median household income was $30,636 and the median home price was $126,000. In 2023 the median household income is $70,784 and the median home price is $436,000. Incomes are up 2.3x and homes are up 3.5x. If all things were equal, today's median home price should be $361,000.
Also the above median income is a family's "combined" income, which has seen childcare costs, since the 1990s, up 214%.
Where did you get that info from on the median Income?
@@tsaunders4684 google it
The market trend can turn around very quickly. In fact, the indexes often switch from a bear market to a bull market when the news is at its worst and the mood of investors is at its lowest point. I read an article of people that grossed profits up to $150k during this crash, what are the best stocks to buy now or put on a watchlist?
Investors should be cautious about their exposure and be wary of new buys, especially during inflation. Such high yields in this recession is only possible under the supervision of a professional or trusted advisor.
True, initially I wasn't quite impressed with my gains, opposed to my previous performances, I was doing so badly, figured I needed to diverssify into better assets, I touched base with a portfolio-advisor and that same year, I pulled a net gain of $550k...that's like 7times more than I average on my own.
@@ThomasHeintz that's impressive!, I could really use the expertise of this advisors , my portfolio has been down bad....who’s the person guiding you.
@@DarleneMurphy774 Laura Marie Ray is my portfolio-coach, I found her on Bloomberg where she was featured, I looked up her name on the internet. Fortunately I came across her site and reached out to her, you can verify her yourself.
@@ThomasHeintz I curiously looked up Laura Marie Ray online and researched her accreditation. She seem very proficient, I wrote her detailing my Fin-market goals
The fact that there is already an excessive amount of demand awaiting its absorption, despite how everyone is frightened and calling the crash, is another reason why it is less likely to occur that way. 2008 saw no one, at least not the broad public, making this forecast, as I'll explain below. The ownership rate was noted to have peaked in 2004 in the other comment. Having previously peaked in the second quarter of 2020, we are currently at the median level. Between 2008 and 2012, it dropped by 3%, and by the second quarter of 2020, it had dropped from 68 to 65.
Investing in both real estate and stocks can be prudent choices, particularly when backed by a robust trading strategy that can navigate you through prosperous periods.
You're not doing anything wrong; the problem is that you 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 conditions.
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.
Actually, I'm not sure if I'm allowed to mention this, but I'd recommend looking up CATHERINE MORRISON EVANS because she was a big deal in 2020. She manages my portfolio and serves as both my coach and my manager.
CATHERINE MORRISON EVANS profile appears to be fairly knowledgeable, therefore I must say that I value the advice. After locating her online, I thoroughly read through her resume, educational background, and qualifications, and I must say that they were quite impressive. We have set up a meeting after she replied to my message.
The "2008 housing crash" took 5 years to play out from top to bottom.
Yea I say this all of the time! “Crash” that’s takes 5 years
In my area real estate prices hit bottom in late 2010. All of 2011 was a tremendous buying opportunity. By late 2012 there were other bidders driving prices up on foreclosures and estates. Prices climbed steadily until 2021 then spiked ridiculously and leveled off late 2022. They've been fairly stable this year.
Yes exactly. Real Housing prices when adjusted for inflation peaked last year and have started to come down. Nominal prices have come down marginally but as you said, these things take years to play out. When the recession hits and they drop rates back down to zero thats when you'll see nominal prices follow real prices and start to come down. No the shortage of housing will not keep housing prices up because the demand will be destroyed when the banks tighten lending during the recession and unemployment goes >10%. Cheap money at zero% does not mean loose money.
Can you make it 1 year? Asking for a friend
between population collapse and 70% of usa gdp being simple interest on househould debt only a fool would say there's no crash happening.
Remember when Dave was like a year late in acknowledging inflation? Genius.
He was still predicting it a year ahead of the government/feds. But you could say that they knew but never told us
@@BadBrad119I think anyone with a brain didn’t need the Fed to acknowledge anything for us to know.
Only broke people with debt need to acknowledge it.
He also said to not buy gold. This guy is a complete idiot.
Home prices increased by 40% in less than 48 months. Why are we acting like that is normal?
I started stacking to SAVE wealth. I've always been the type of person to spend my entire paycheck. I hate having money just sit in the bank. I am under pressure to grow my reserve of $950k. before I turn 60, I would appreciate any advice on potential investments.
I can feel your pains. New guys need to realize the risks that come with all of this. You could lose it all and you could win it all. It goes both ways. Second, what works for A may not necessarily work for B and you should not be a bandwagon investor. A good number of folks are raking in huge 6 figure gains in this downtrend, but such strategies are mostly successfully executed by folks with in depth market knowledge.
@@AUstinnesc Factos!! Since the market became extremely volatile and pressure increased (I should be retiring in 17 months), I took the decision to work closely with a financial advisor. It has already been 9 months and counting, and I have made approximately 600K net from all of my holdings.
@@corrySledd That's impressive, my portfolio have been tanking all year, tried learning new strategies to gain in the current market but all of that flew right over head, please would you mind recommending the Adviser you're using.
@@McElvinn My advisor is the quite famous NICOLE DESIREE SIMON She has been making a fortune online worth millions of dollars in digital assets for a select few for years. Lately, these types of services have appeared that allow you to copy the results of the experts. She demonstrates how to copy it automatically using that system.
@@corrySledd Thanks for the info, i found her website and sent a message hopefully she replies soon.
People are holding on to their low interest rate loans like they are an asset. That is keeping inventory levels very low as people just aren’t moving unless they absolutely have to.
Too many hot markets make it difficult to develop land. Cut the red tape and let some house get built.
@@diggernash1 I am waiting on 300 lots to finish up as we type. Everything takes longer than it used to for sure!
So ppl need to let go of their low payment so you can buy a house?
@@shinanguo4197 No, I was commenting on why there is so little available inventory. There is no way I am selling my home as I have a 2.6% rate. Most people are in the same boat.
It is an asset
6% interest is fine when houses are 3 times your yearly salary. 6% hurts a lot more when those same houses are 5 times your yearly salary now. This situation is the thing that Dave seems to ignore when he talks about "back in my day we did fine with rates higher than these" Cause the monthly payments for those houses at 9% were less burden than houses a year ago at 3% cause the base house price is so much higher now.
You can’t do ratios with the boomers They don’t get it. Anyone over sixty still says when I bought a home I paid 12 percent interest Ok you bought a new home, car and whatever else you needed for 50k and made 13 to 15 dollars per hour. Now a run down dump is 500k new cars are 60k and your making 18 an hour. People just can’t do ratios
Exactly, hes so wrong on that
You’re right. A 20 % mortgage on a 40,000 house isn’t as steep as a 5% mortgage on a 400,000 house
One of the few smart comments. I like Dave strategy in getting out of debt but he's out of touch with what's happening in housing market. Please keep this video for after it creates in 3 years. Last housing bubble took 5 years to crash. By the way, houses today are 8x your yearly salary. years ago it was 4x your yearly salary
Not everything Dave says applies. At the end of the day, it’s good to hear what people in his position have to say, because they do partake in the market itself. Maybe a “crash” isn’t coming, but a definite decline is here. It’s economical cycles.
The problem I am actively dealing with in the housing market- when a house is within’ my price range that is move in ready. I’m at a bidding war with other competitors. Hell, I tried booking a showing after a few hours of being on the market they stated they needed 24 hours in advance. We said okay, booked the following day. Got a call 15 mins prior to showing that the sellers accepted a cash offer above listing. THIS is the problem. Investors are buying up all these houses to renovate and then sell for double the price they bought. Younger generations do want to buy a home, but aren’t given the opportunity unless you pay an outrageous amount above what you are comfortable doing.
Holy I feel this on an emotional level :(
Keep at it and consider a slightly fixer upper home. My daughter finally found a fixer upper that no one else was interested in. She was able to negotiate the price down as no one else wanted a fixer upper. She had to replace carpet and fix a few holes in the wall and repaint. But overall the house was solid. She rented out one bedroom for several years to help with expenses. But she's now a homeowner with a place within her budget.
@@lyndahammel9502this is a great idea! But I will also say, being on the hunt for a house myself, there are many reasons to not get a fixer upper, too. It just depends. Good for your daughter though
Look for the ugliest home no one wants & make an offer. Then fix it & do landscaping over time. Don’t look for move in ready.
@@lyndahammel9502 Yes, my son & his wife (mid 30’s, near Boston) did the same. Problem is younger generation wants everything perfect. They don’t want to paint, scrape windowsills, yank out carpet. They grew up having everything done for them. Need to be realistic, not compete with those seeking higher priced perfect homes.
Feel bad for the hard core Dave Ramsey followers that got stuck saving money like crazy people to be able to afford a 15 year mortgage. If only they had taken out a 30 year mortgage prior to 2020.
Dave's advice isn't 100% financial, it's more like 50% finance and 50% psychology; looked at that way, it's damn good. If they were motivated to save more than otherwise, they probably still came out ahead.
LMAO.
@@oneeyedman99how so? If you were just simply saving in a savings account over the last 3 years there is no possible chance you covered for inflation, plus now your looking at an interest rate up to 7.5% instead of 2-3% a few years ago. How is that ahead?
Facts. I did first time homeowners program. Didn’t put down a dime. It was a moderate fixer (which I planned for) Did the kitchen. Moved right in. Big ranch-big land-I’m BIG HAPPY. Bought a year ago. 4.5% interest. I refused to sit and wait. When I heard it was a “Reset” I wasted no time. I had bad credit too. FIXXED it all during the pandemic and bought! Period. I think people must be independent thinkers and do what’s best for them and theirs.
@Eric Blair yeah but you have to look at the bigger picture and realize Daves 15 year mortgage advice is very delusional. For 5% of his audience that make well into the 6 figures they can afford to get a 15 year mortgage but for 95% of the population it will require downpayments between 30-50% to be able to afford the 15 year mortgage and keeping the payments under 25% of take home pay. Most people cannot move hundreds of miles to buy a $150k house in the middle of nowhere and even buying a torn down house in the $250k zone will require a very substantial downpayment even for good earners.
Average salary in US is 70k and average home in US is 350k. I don't know how long this will last but it can't be long before defaults starts.
It'll last until people's credit cards are maxed
And majority of people middle class are living together paying bills split
@@gibsonator4849 Of course. But do the math just in mortgage, that just about takes all your money. Now add groceries, fuel, electricity, water and sewer. If you have children even worse. Either this collapses again or like much of Europe a few will own everything and all of us will be renting.
It is completely unsustainable greed. The chickens will come home to roost soon, as they say.
@@Hades-in5jy
Heck I own two homes in Europe and my primary home is in Oklahoma.
Homes for sale in my area of Florida are declining rapidly. Some starting at $189,000.
I hate the 9% on a 80k home compared to the 3% on a 480k home argument. It feels deceptive and blind when Dave and his crew compare interest rates then to interest rates now. They’re not the same base number with which the rate is calculated on.
It's not deceptive, it's just plain stupid.
Your comment makes no sense. It's scary that 8 people gave thumbs up, too. Yikes.
@@robloxvids2233 how does it make no sense?
i get what you're saying.. but.. if you're going to do that you have to compare household incomes from then until now also
if you made 100k in 1990, you were the top 5%
if you make 100k now, you are average at best
Not only that, they don't consider how much less buying power we have now. the number of hours you had to work back then to afford a house versus how many hours you have to work is insane.
Houses have doubled in price in the span of 2 yrs. So 6% on $450,000 compared to 15yrs ago that same house being $200,000 is not even comparable.
Home prices didn’t double where I live.
Can buy a newly built home for $200k.
Food prices didn’t double.
Gas didn’t double and currently $2.95/gal.
@@blackworldtraveler3711 I want to know where the hell you live to get that. Sounds to me like your trolling. Everything went up for everyone in America.
@@mailmanjoe
Many areas of Midwest and south central U.S..
Look it up.
Gas is $2.86/gal today where I live.
New 3bed/2bath/2car construction starting at around $200k.
Nobody here is complaining about food,rent,gas,and home prices
Housing values and rates are absolutely ridiculous. The Feds saw to that during COVID. Buying a $350K house for $500K is not only infuriating but completely unacceptable.
That’s what happen when they print trillions of dollars and debase the dollar - hard assets seemingly “appreciate” in value. More printing in the near future
They are selling 400K houses here for 1M. 😩
@@debbie12346 buy Bitcoin and hold. Everything trends to zero against Bitcoin. You’ll then be able to buy pretty much whatever house you want in 1-2 decades
Short sighted, thinking about 5 years from now.
@Westley Williams why are they stupid? If they’re buying they can afford it. And in the process they trade garbage fiat money for a hard, scarce asset
My only issue is when real estate was 15% back in the day average homes weren’t $400,000
people weren't getting paid 87k per year to thumb through facebook all day in an office job either
You don’t need to buy a $400k home.
Buy/rent what you can afford.
@qwerty
All about choices.
I don’t live in areas like that.
Exactly they were only 75k to 150 k
@@Simon-talks sure, but there are tons of studies on how much further each of their dollars went than ours do now.
A bigger salary number today doesn’t = more buying power.
The reality is their buying power in relationship to real estate prices were still significantly better than our ratio today.
The house prices are unacceptable right now. Like it’s unattainable for most young adults now of days where, 5 years ago it was
Most people. Not just young adults.
Exactly what the pumpers were saying all of '06 and most of '07. People that are heavily invested in real estate are always going to say there is too little supply, current mortgage rates are low vs 1982, home prices always go up vs the most recent crash, you are missing out, blah, blah, blah. They are talking their book. Real estate cycles are very slow. Topping and bottoming takes many years to play out. It feels like early/mid '07 right now. Market didn't bottom until late '10 or early '11, about 3-4 years later. All along the way the Ramsey's of the world talked their book and tried to FOMO in as many people as possible on the way down. Lots of destroyed lives, divorces, suicides, etc., resulted. Unless you bought well before 2021 and locked in the lower principal, lower interest, lower property tax basis, etc., you are better off being a renter/live with parents right now. You will lose a heck of a lot less money that way. Save your coins and build your credit. Opportunity will come. I would say late 2025 at the soonest. In the meantime, enjoy not having to massively overpay for a new roof, painting, and all the other wonderful things that come with home ownership. Bad neighbors? Move away. Kitchen catch on fire? Move away.
I bought my first 3 family in 1997 at 8.25%. It was a good percent. The difference now is that same house value right now is 600k. I would never buy a house right now.
Choices now in my area: Put 15% down, and pay $3000 to $3500 per month on a mortage (not happening) OR continue to rent for about half of that and enjoy my life. I don't care if Dave is correct right now or, its not AFFORDABLE, especially by Dave's 25% of monthly income rule.
That makes no sense. Are you renting the equivalent of the space you would buy?
That 1/2 will be 2/3 in two years. & that’s $1750 for 24 months down the drain.. 42K
@@ElBadu Can you read?
@@CapPointer classic mistake. If he takes out a mortgage, most of his money will be interest. How do you still not understand this?
@@patty109109 & if he rents does he gain interest? Equity? Can you recoup that 42K? Does it boost your credit? What happens after the 2 years? Do you own a portion of the rental?
The inventory shortage is artificial. It’s created by investors buying up property not real families.
That has to end. Same for foreign entities, which notably occured in Vancouver, BC
Single family homes should be citizen and permanent resident owned only.
What goes up will always come down. What we have today has never happened so we should expect what we haven’t seen yet. I think being debt free, small monthly payment, a job and side hustle will get you through. Budgeting is very important.
My 25 year old realtor who got his license in 2021 told me real estate prices will never come down.
Haha does he even have a car note yet
I believe he is correct because we are heading into hyperinflation. Paying 7% on a fixed rate mortgage when the real inflation rate is north of 30% is a steal of a deal. It is a liquidity preference. People would rather own real estate than depreciating US currency in a bank.
Since my first home in the 90s and Florida beach condo in 2008 the real estate prices never came down. Slow and steady in Oklahoma but a little crazy in Florida which I ignored because I didn’t buy as investment and wasn’t interested in selling.
Same for my parents who bought their first home in the 50s.
and who would listen to a 25 year old??????
So I should buy a house even though I have 💯 k in debt 💸
For one solid year houses have dropped ---- 10% in some city from May 2022 to May 2023. but Dave said it would ONLY go up.
He did NOOOOOTTTT predict exactly happened. Pleeeeeease go back and watch it. he said it would only go up for the next five years!
Phx is down 8% since he said this....and it is gonna go down even more after the spring seasonal bump.
$80,000 in 1990 is worth about $180,000 today after inflation… Dave, good luck getting a decent house for that price today. Not a good comparison.
It all depends on where you chose to live.
@@rowdybush1nope that’s overall. Compare anything to 1960s. 😅😅
My wife and I are trying to get into our first property and the impact investors have has made it painful. The pressure they exert on the market pushes prices higher and trickles down to increased rental prices. My proposed solution: you shld be forced to disclose if your planning to live in a property or are an investor when offers are submitted. A seller should be incentives to sell to someone who's going to live there via substantial tax breaks. Conversely, investors should be heavily taxed. A home is primarily a necessity for human survival. If you are actively impeding someone from attaining necessities of life in the midst of a crisis, that's just wrong. We'd never allow it for any other vital commodity, yet we allow it with housing...
Your suggestion would raise rental prices further!
Out of the 82 Millions single family homes, Investors own 25% (20 Million).
Owning a rental property is a tax deductible.
Problem with this is the country hasn't seen bottom yet. People haven't lost their jobs and the ones who paid 100k too much for their houses and over sticker for their cars haven't tried to sell them yet. When that happens and they realize they can't dump them and they can't afford them then that's when the defaults happen. So no Dave you aren't right, not yet at least.
There is not enough houses in Houston. A house down the road from my in laws sold in less than 2 months. Idk about the rest of the country, but I don't see a house crash happening in my area
Maybe the bottom has come and gone already? The thing is, no one knows what exactly what is going to happen in the future. I’m in Canada, and everyone here expected the market to crash somewhat in tandem with the US back in 08/09. Some areas saw slight corrections yes, but as a whole, there was no crash. We bought our house around 2011, and technically overpaid by around $15k. People thought we were crazy, as everything was going to crash. Fast forward to today….the value of homes in our area hasn’t quite doubled since then, but they have not gone down. We have since paid off our house and seen our living expenses drop significantly at a time when most are rising. I’ve run the numbers, and including all interest paid, maintenance and improvements made….we are right around the break even point with the market value of the home. Our home was an investment in ourselves, and not a financial one, even though it ultimately became one.
I never followed Dave’s plan persay…although since most of it is simply common sense, we followed most of the principles. We are now completely debt free with a paid for house, and have absolutely no regrets about any of it. We bought what we were comfortable with, and said to hell with what society felt we should be doing based on our incomes. Sure, cost of items has increased quite a bit in the last while, but like has been said, it’s merely an inconvenience instead of a crisis when you have no other obligations. Extra $200 a month in fuel costs sucks….but it sucks a lot more when its coupled with an additional $200 a month vehicle payment, and an additional $500 in debt payments due to increased interest rates.
@@DatBoiLui Houston has come down quite a bit from what I’ve seen. I couldn’t find anything under 340,000 in 2022 now I’m seeing stuff for around 270,000
@@DatBoiLui In NY houses are selling in one weekend with 60 offers it is insanity
YET 😂
This feels more like the shift that has occurred in the automobile market within the past decade or the "buy now, pay later for just about anything" trend where consumers will ultimately end up in homes that should be considered out of their budget because lenders will create new "tools" to make housing seem more affordable. That scenario is way more likely to lead to the crash current homebuyers are hoping for than anything we're seeing now, albeit a reality we're still years away from.
Love it when Ramsey and company implore us to ignore social media ...and then do entire segments ranting about what they saw on social media 🙄.
And doing it all on social media!
All I see these days are condos and apartments being built. Almost no houses.
No room for houses here in CALIFORNIA
Probably because you’re not in the Midwest or south central.
@@blackworldtraveler3711 I live in Ohio. The condos are built so cheap it's disturbing. Selling for over 500K for tiny two bedroom.
@@elaine1743
Where the expensive cities are.
@@passive101
You must be talking about apartments.
Condos I’m familiar with don’t work that way. They are owned by the homeowner.
I have to give Dave credit. Two years ago I was apprehensive about the housing market but I took Dave's advice and went ahead and bought a house. Locked in 3% 30-year fixed and my home has appreciated almost $200k in market value. Thanks Dave.
You’re not debt free so you shouldn’t be buying houses
@@ImDahDudeenvy much?
@@ImDahDude stones in a glass house, cool dude!
Dave's advice is not taking a 30 year mortgage. However if you waited until you could afford it on a 15 year you may have missed out on $200k worth of appreciation.
Regardless...sell your car and eat some rice and beans!
Yea rates were 9% in 1990 but average price was under 80k. Nice one Dave
Well that’s because you didn’t factor in inflation lol prices are always less in the past because of inflation. Basic economics.
@@78town and? No one is disputing anything. Im just pointing out the stark diffence between rates being close to 30 years ago except prices are 5x higher. LoL
I purchased a brand new house 1800 sq ft, in 1995 for 96k at 8.0%.
@@kloften6792 that's awesome
@@JSM. - It wasn't awesome because I sold it way too early. I made 30 grand on it and thought I was rich. In stead of selling it, I should have rented in out until it was paid in full.
7% on 400k is drastically different than 9% on a 120k house 15 years ago
You can buy a $120k home now where I live.
All about choices,
@@blackworldtraveler3711 the only thing in that price range where I’m at are houses that have been condemned and are about to fall down
@@aaronfisher7159
It’s a 700 sq.ft. 1bed/1bath condo in a gated community with your own laundry room and fireplace here.
@@blackworldtraveler3711 If enough people make the "choice" to live in an area with cheap housing, the housing won't stay cheap. Your logic fails. People have to live where they can work.
@@hartsickdisciple
I’m talking about individual personal choices like education,career choice income,,debt,family planning,lifestyle,etc. not what other people are doing.
Choices are more than just living in cheap housing and worrying that it won’t stay cheap. It’s the choices and decisions that started in high school that gotten you to where you are in life now.
You have to live where you can work.
Not me.
I created my own path with choices to work where I wanted to live with growth and appreciation.
9% in 1992 is way better when the houses were 1/5th of what they are now
In the 60s you can get a crib for 6 grand. People think you can go back. Those days are gone 😅😅
Hot Tub Time Machine was just a movie.
Houses here in Cali start at 575K with 6% interest averages around $4K a month on for a 2 bed/1 bath/900 Sq ft. It's not the interest rate, it's' the inflated house prices nationwide. Dave is not talking about the job market which has soften, that's the issue, when folks can't afford their mortgages due to job loss.
I thank God every day that I escaped California 19 years ago. Idaho has been a blessing for me.
@@lisabaltzer4190 you were smart. I stayed too long.
Then leave California. Move away.! Northeast, Ohio (Cleveland) homes on average are 200k. My family lives in Cleveland, Ohio because of affordability. My parents live in Oregon and they even told me to move to Cleveland.
@@joshuaisrael2494 You missed my point. Job losses will affect the job market and that will happen which is something Dave is not talking about. Then I can move out of Cali once the housing market softens and it won't be Ohio or California. Good luck in Ohio snowbird.
@@lisabaltzer4190 I'm stuck here at least unit my son turns 18, might as well get my pension from current job a retire somewhere else.
Dave “just buy houses cash” Ramsey
😂😂😂😂😂 ain’t that the truth.
One thing they are not mentioning is salaries are not keeping up with housing and interest rates. Actually I never see anyone mention this. Eventually this will come in to play. Wont be a crash but houses will have to come back down, buyers will dry up and its starting. People cant afford the market right now especially new home buyers.
When the interest rate was 10%+ houses were like 100k, wake up dave
Yeah but minimum wages at 5.50😂
@@House_hacker_619 well it's been $7.25 since 2009 so it ain't changed in a long time.
@@firefly9838 That's a lie. The same jobs making $7.25 back then now make close to $20/hr. I see signs at Krogers (King Soopers/etc) STARTING jobs at $20/hr. Bus drivers earn the same but with a city employee's pension.
Just like House_Hacker_619 said, inflation happens. More money enters the money supply each year. If housing today cost the same it did decades ago, everyone would have about two to three housing due to how wages and money have increased. This is also what causes inflation. If everyone has more money to spend but there are only a few units of the item they want to buy, they will bid the price up and cause inflation. Housing is not going to get dramatically cheaper anytime soon. It would be better to decrease the house demand list.
Don’t compare apples to oranges. One example last crash was caused by PREDATORY LOAN and arm mortgages. A minimum wage worker can get approved for a 1M mortgage without lenders not doing Debt to income check or background checks as long you have a job your good to go. Builders were actively building and they stop building after the crash. Our population is growing from generation to generation, immigration and investor demand. In California there’s too many restrictions and regulations so it takes 2-3 years for builders to get permit approval. Also it takes 6-12 months to build.
About a year ago, I became less frustrated with the glacial slow rate of FOMC rate hikes when I realized an important part of their calculus was to avoid a repeat of the mortgage prices. This is not a statement about the morality and ethics of our federal reserve system.
Yeah… “I told you so”… all I’m going to say is that here is Ashland county Wisconsin. There is a HUGE number of foreclosures being added to the local sheriff sales. And NONE of the houses for sale that are not foreclosures are selling…
Anomaly, in Ohio we can't build then fast enough and not many listing to even choose from
Remember… dave was saying real estate was a great investment in 2007 lol. Those last buyers only had to wait till probably around 2015 to get from under the loan !
Dave became wealthy in 2009 by buying real estate for 10 cents on the dollar after the market collapse of 08.
@@dmbgator86exactly.
Exactly. I took how many years to hit bottom? 8-10 years?
I’m guessing right now we’re at about the 2005-2006 faze of the 2008 collapse.
@@dmbgator86
Dave was already wealthy in the 90s after late 80s bankruptcy with over 20 million net worth by 2000. His net worth was around 50 million about ten years ago and around 200 million now.
People with patience,cash, and/or little to no debt after 2008 were the ones who became wealthy.
Paid off my home in 2008 then bought two rentals close to half price and a $560k short sale beach condo for $240k with cash after crash.. Was actually teased and laughed at for doing it.
My 401K has also more than tripled since then.
@@blackworldtraveler3711 he said in 2008 he had 20 million to his name. That’s rich but certainly not wealthy. Now he’s worth 200 million which is wealthy.
Homeowners will be calling the show next year about buying too much house.
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
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.
Personally, I can connect to that. When I began working with a fiduciary financial counsellor, my advantages were certain. I got into the market early 2019 and the constant downtrends and losses discouraged me so I sold off, got back in Dec 2021 this time with guidance Long story short, its been 2years now and I’ve gained over $860k following guidance from my investment adviser.
@@MarkFreeman-xi3rk Interesting Mark. I've been thinking of going that route been holding on to a bunch of stocks that keeps tanking and I don't know if to keep holding or just dump them, do think your Inv-coach could guide me with portfolio-restructuring as i wouldn’t mind a recommendation.
Actually, I've shuffled through a few advisors in the past, and “ Margaret Johnson Arndt” remains the most resourceful thus far. Her strategy proves profitable, and sustainable both in a bull & bear market. Most likely, her deets can be found on the net, so you can confirm yourself.
Insightful... I curiously looked up her name on the internet and I found her site and i must say she seems proficient, wrote her an email outlining my objectives. Thanks for sharing.
But it’s not gonna be a housing crash, it’s gonna be a US dollar crash and deflation. As a result, prices of homes, relative to gold, will crash harder than ever. They just need to look one step beyond current home supply and demand.
Not necessarily. It's possible we inflate to keep kicking the can farther and trap ourselves in the inflationary feedback spiral until the dollar is meaningless. That's what we did for 08.
In my area houses have dropped in the past twelve months 15-20% and we still have very low inventory.
And what area is that?
Dave Ramsey is still dodging the issue. For first time home buyers, both spouses have to be making above six figures to afford a 15 year fixed rate mortgage where the payment is no more than 25% of take home pay. For a single person, they are priced out of the market unless they are making like $200k/yr. "Your expectations are too high." Yeah, you should live in that crime ridden neighborhood where the previous owners were shot through the window in a drive by shooting or live 5 hours away, in another state to commute to work. Dave Ramsey is so out of touch it is unbelievable.
He's not forcing you to meet his expectations. They are his and you can have yours and carry out yours. I've listened to Dave for almost 10 years and have never used a 15 yr mortgage nor EVER put down more than 3%.
@@jedispice8040 This is the thing. Like you said you can agree with 90% of someone says but you don't have to agree with them on everything. For a lot of people, it seems I either have to go no compromise 100% or nothing. Life rarely works that way and I can think of almost no one that I agree with 100% on everything.
And out of warranty used cars need $10,000 worth of repairs & maintenance every month. That's why everyone should finance a $50,000 Kia. We know, we know...
@@donhill1825I’m curious, what cars cost that much in repairs and maintenance a month? I have a 2015 Hyundai sonata with no warranty, a bunch of miles, and it costs me maybe 150$ a month in gas, and sometimes not even that. A year I can see, but a month? That just seems like a bad decision by that individual.
He has repeatedly said first time home buyers don't always apply with this rule and it is ok.
1992, when houses cost less than new cars do today.
I love Dave and all his advice. However, back in the day when interest rates were 9% houses were also cheaper.
Absolutely. Lower interest rates drives prices up. All of these people with their 2.5% loans bragging about their interest rate.....had interest rates stayed at a healthy equilibrium for both borrower's and lenders, (7%-8%) that expensive looking, cheaply built track house would have been $200k instead of $499k.
I was a builder and developer my whole career. Started building in 1996 and retired end of 2021. At my peak I had 38 units over 26 properties. I've watched the inverse relationship between interest rates and home prices for 25 years. What you say is true.
And salaries were smaller.
Exactly
Median family incomes were less than $30k as well.
I see a lot of CZcams realtors keep talking about a crash and prices crumbling and yet the data came out today and Year over Year prices are still up this month.
I am not expecting interest rates to drop. I am expecting prices to drop instead. If they don't than I must save a much larger down-payment 😮
Except in 4 or 5 areas in the country, prices are not going down if your are looking below the median home price
Whatever you say it will be right at some point. No one, I repeat, NO ONE can predict the housing market because it is local market and often neighborhood specific.
As a retired mortgage professional I agreed with Dave about this. I would only say that I don't think we'll see DOM at 90-120 (which is considered in balance) for a while yet, depending on where you live. I'm in NC and homes are selling in about 14 days, (vs.7 days last spring.) but prices haven't moderated yet.
Well if it is not a bubble then the average working family will no longer be able to buy. 70K a year gross income and the average house cost at 455,800, the math doesn't work. The only thing we can hope for is that large amount of these super high earners lose their jobs so the market can return to something people can afford. The one thing I don't get is if 200-300 percent increase in cost of a product over 3 years is not an abnormal increase then what is?
The average working family where I live can buy a home as low as $180k.
Maybe even less with 1-2 kids.
Housing prices are dropping.
“How did you go bankrupt?” Bill asked.
“Two ways,” Mike said. “Gradually and then suddenly.”
Mike Campbell in the 1926 novel by Ernest Hemingway “The Sun Also Rises”
The problem is that the cost of everything, including homes, is going up while incomes are not rising to match the cost of living. The gap is getting ever wider over time and eventually, the market will not be able to sustain this. I live in Colorado Springs and they are building expensive home here hand over fist. Vast areas that were once open prairie are filling up with homes here. There simply can't be that many people that make enough money to afford them.
Same thing here in the United Kingdom no bubble,.no bursts.
Thanks to the Ramsey team working on our baby steps
Is this truly why the WEF Slogan is " You'll own nothing,no home and you will be Happy". There actually may be some truth to that as houses are so expensive
Consumers control the price in the housing market, if we Americans STOP financing these over price homes! The price of these homes will go down over night!
Dave cant say this because he is in business with mortgage companies. I have nothing against Dave but i understand it's just business!
How are homes overpriced? The whole issue is that trillions and trillions of dollars were printed. Homes are literally worth more because dollars are worth less.
Houses in my neighborhood have gone up 50% since we moved in 10 years ago. Buyers in the same situation we were in 10 years ago can no longer afford to live here.
Don’t see your point.
No different than when my parents bought their first home in the 50s.
No different than when I bought my primary home in the 90s and Florida beach condo 15 years ago.
Meh. Houses have gone up 50% or more since Covid. My house I bought for 127k in 2017 would now sell for north of 240k based on my most current county estimate(and their estimates are usually lower than the actual market rate).
So has my salary gone up by 50% or more since Covid? Hell no.
We are going to have problems….
i said also interest rates are never going back down in seeable future because of increasing inflation AND history wise they've always been way up.
This is true however pushing interest rates up will push down the demand or another words it will disqualify some people from buying a home
Interest rates aren’t the problem, the problem is the price. I will never be able to afford a 5-700K home especially on a 15 yr mortgage lol
Then relocate to an area you can afford. Northeast Ohio is a great start. Cleveland, Ohio homes are on average 200k. Good luck to you.
@@joshuaisrael2494at the expense of safety and rust belt. Not worth it lol. We prefer great weather lol
All markets in a capitalist system exhibit a boom and bust cycle so the housing market will crash at some point. It's just very difficult to predict when.
Yea keep waiting 😅😅. They said it was going to happen in 2020.
I have nothing but respect and love for Dave Ramsey. I'm debt free because of him and am building a nice retirement. HOWEVER, the paid for house that I currently own, I could not afford to go onto the housing market and purchase the same house today! The high prices and the interest rates mean I must move down, way down, in home if I were buying today. And even though I am saving a significant portion of my income and have a large amount of cash set aside, even with the equity in my current home, the home I was hoping to buy 2-3 years ago is untouchable. Assuming nothing changes, and it always does for the good and bad, I will have to save for another 4-5 years before I could afford the payment on the house I've been wanting, in TODAY'S pricing. So yes, housing may not be collapsing, as of now, but people are definitely moving backward. And what I fear is that even though I have saved a huge portion of my income, I will be outpaced by inflation and spiking prices just as I was 2-3 years ago.
Housing is way too high. Renting is Cheaper in all states. The pricing isnt realistic unless you live at home until your 40
There are several problems with Dave's take on this. He's taking a victory lap when it's definitely not warranted. Here are the 2 main issues I have:
1) When interest rates were 10-11%, housing didn't cost nearly what it does now, relative to the median income. Interest rates matter, but not as much as purchase price. You can probably refinance and get a better interest rate later. You can't lower the purchase price once you've signed the contract.
2) The market data I've seen shows that the markets with the largest price increases are also the ones with the largest declines over the past 10-12 months. You can't look at a market like Austin, for example, and say there was no bubble. There was (and still is) a bubble. Prices in that market have already dropped 10-12% over the past year, and there's still a lot of new supply.
He taking a victory lap before the year is even over.
Even if he ends up being theoretically wrong: you still can't even do a victory lap. What strategical value did you gain "buying low"when you're literally paying an 11% rate?
@@jaybartgis5148 A person with a high interest rate can potentially refinance later to a lower rate. Once you agree to a purchase price, that's it. There's no changing it. This is why purchase price is more important than interest rate.
@hartsickdisciple then why arent you buying right now bro?
@@jaybartgis5148 Because I don't think prices have bottomed out yet. Right now prices are up slightly from earlier this year, and I think that's seasonal. Spring/summer are the hot months for the housing market. I'll wait until this winter to see what happens. I live in the Austin area, which is the #1 metro in the US for housing price decline over the past year. There's still a ton of new housing being built here right now. Some of that inventory will hit the market later this year.
Looking back at the 2008/2009 housing market crash, it took 4-5 years for the whole cycle to complete. Prices went down, then back up, then down, then up, then finally crashed. The same thing is happening right now. The recession hasn't broken the market completely yet.
The house market is still horrible. Still to high.
The only thing Dave is right about imo, is to get out of debt. His investing advice is blah. But he is 110% correct about getting out of debt. Get rid of the credit card debt, the auto loans and pay off that mortgage. Those out of debt sleep better.
Dave lives in a dream world for sure
Nope, he lives in reality. The rest of America does not.
Dave is a debt free multimillionaire and lives in a paid off home.
Dave has a cult like following. He’s not gods greatest gift to finance. When you ask him how he made his millions, he never tells you directly. The answer is he leveraged his money….
From this current video, he’s talking about a 2.5-3 year window from the economy. I’ve never thought houses would be affordable by 2023, or even 2024. The fact is home prices have gone up more than 50% in some places. Salaries have not. In terms of sustainability, it is not.
@@DontAtMe2k24 He gives an extremely direct answer, you're just hearing what you want to hear.
Dave still cannot admit he was wrong. He is only looking in areas that are going up, not down.
It's down like two percent across the whole country from a year ago.
People were saying prices were going to fall as a whole. And they were right.
Prices are still crazy high in my area and little inventory. People are out bidding you and foregoing inspections. Nope!
@@tduck828 I am not talking about just one part. As a whole. They are down.
What are you talking about. Dave was talking about the people predicting a crash where houses were selling 50% off and everyone’s life is ruined. Don’t change it now and say “see…prices went down a little in some places.” It’s like buying $20 shirt for $30 when it was priced at $40. Don’t act like all of a sudden prices are way down.
Prices haven't dropped in the UK at all
No ppl were saying that they would crash. They lowered from the crazy post pandemic numbers but no crash. Try again buddy
If the market is still hot and not going down why are the builders not building spec homes? Coming from somebody who just bought a house a month ago
Probably the same reason car makers are not making extra cars to sit on a lot. So they don't have to lower the price. Get used to inflation.
Until the builder sells the house, they have to pay the vig. Easy to do at 2%, not 7%. Only worth building rentals or houses under full contract
@@leechburglights then that means less need for workers and more layoffs.
Life won’t let people have everything. It will give you two out of the three you want but not all three.
@Leechburg Lights that's his point.
I recently saw an investor sale a FULLY furnished home! I mean completely furnished, beautiful home.
That never happen in a booming market.
Bought our first home at 21 % - so happy when it came down to 18%
Ramsey does not include substitutes/complements in the formula. When the interest rates go up, people start renting more, which is a substitute good for housing. He just keeps saying shortage, shortage, shortage…😅
Well according to latest Redfin data Nashville is down 6% from 1 year ago, so you were not right. Also active listings and months of supply double from a year earlier.
100%. I find it funny when people ignore basic info. It's incredibly obvious we are in the beginning of a downturn. Dave can only deny it for so long. Probably said the same thing in 2007/2008
Interest rates are high and home prices ridiculously high.
Well you were not right. You said it wouldn’t go down and in fact it did in a lot of places. And we aren’t even half way through the year.
Yeah! Doubling down, love to see it! We went from 15%+ appreciation per year to down nationaly at a super fast pace. This is more than likely just the infleciton point, after unemployement spikes probably starting this fall/winter. Then we will see more forced sellers who will have to accept the market rate. Also, when you consider the CPI inflation the past two years housing is down a concerning amount.
So for the record "not" going up 15% a year isn't a "crash". And housing is a historic hedge against inflation. Nothing "concerning" there.
@@WelcomeInc I'm just saying consider the forces at play to cause a red hot market to stop dead in it's tracks and actually go down in value. This is a faster initial decline than we saw in 07 08. My point more specifically was that if national housing is already down a few percent in median home sale value - in real terms you have to compound that on top of 10% to the current 4% CPI inflation. meaning in real terms housing is down 10%+ off the peak. If we avoid a resession and the FED wants to quicky go back to ZIRP than it might be time to get bullish on housing, but there are a lot of headwinds for the housing market that haven't existed for years. I don't see why the FED would lower rates anytime soon outside of trying to stimulate a slowing economy.
@@johnsospencer Um. Inflation doesn't "deflate" hosing value like it does dollars in the bank.
What are you talking about , dude ? Lol
No, he's not right. He is still trying to say he is right.
Some places are up, some are down. But as a whole, is it down.
Like he said supply and demand.
@Jimmy, maybe in your $h!thole, but where I am it is UP, way UP!
Source: trust me bro
@@jc5604 Or, "They said"
Dude hes right you are wrong man. He literally explained that homes would level out or go to a normalish market again. I own a home and what he said exactly happened. 2 years ago homes in our area were selling for around 250k now fast forward, they stabilized at around 225k-230k. Its just a correction not a crash.
People don't realize the more expensive a home is, the less profit your will make on renters. If your home cost 400k but you only charge 2000 a month. You're making 24000 a year minus whatever interesr you're paying on that loan. That like maybe 5% your profiting. Thats not including upkeep. So it will take you 20 years to break even on your home. So the only real money you'll gain is off the appreciation of the home. You better hope and pray the market don't crash on 20 years. If it crash in 10 years then rise again in 10. You basically made no profit. And good luck trying to charge 4000 a month rent to make a profit
He is my take. House price cannot be sustained with the income as it is. People rushed to buy overpriced houses followed by mass layoffs. Inventory will get to normal with surplus from people's foreclosure not to mention no less willing buyers.
Ramsey seems to forget that when people see prices coming down theyll often list their home to get their hands on equity before it goes away. Get a few million people doing that and you have a crash.
Pride comes before…
But not to the 1960 era. You can go by the history repeats it’s self lol
"They" are still building around here. The problem is that for every new (gigantic) house that goes up,another house comes down.
An un-liveable property in North Georgia is minimum 250k. Most basic properties 2 bed/2bath no yard starts at 320k. There is NOTHING that we can afford in Georgia.
And that's the problem he doesn't get.. people can't afford that bullshit, it's coming down
The nation as a whole is currently down roughly 3% in terms of the overall housing market, this dip from the peak in summer 2022 is the most since 2008. The average housing market change takes roughly 5 years, we are just now starting to see the start of the downfall.
It cost 100.000 more to buy the same square footage in my small town in Alabama , houses are selling in less than two weeks . We lost our home to a flood in 2022 and still renting because we can't get in a home .
Advice #1: Leave Alabama.
@@firefly9838 🤣🤣🤣🤣
Leave Alabama, move to Cleveland, Ohio.
The DAYtA as Dave proudly says still indicates shit is going to come crashing down. We’ve managed to prolong and stay afloat, but make no mistake this is not sustainable.
I’m just commenting and liking to help ramsey make more money.
Us supply is low demand is high
But?? How in the hell are people affording these homes. I think people are living well out of their means
That’s my thoughts on that
Contract Nurses by me are payed 130-$160 per hour. There is a Huge shortage of Skilled workers in many fields.
I mean that's easier than realizing others are outperforming you. Easier on ego anyhow
I love this channel, and all the good advices; however, this video is not going to age well.
Why does this video say "I told you so!" when Dave said price would go up and up and they have gone down since May 2022?
Thanks to him, we were able to separate between fear (driven by people making money on scaring people) and rational thinking. We ended up buying a house at the right time financially and it was the best decision!
We'll have fun with flat home values for a decade
Good for you but I doubt it was a great deal unless you paid cash or you got it at 1-2% interest rate. Houses are overpriced if you’re financing it.
It rational when only 10% of people can afford a home! They went up 153% while wages did not 😡
@@mattmasteringer4399 maybe they can afford it at 6-7% with 20% down?
It depends on the market, but where I live, the cost to rent is much less than the cost to buy. In fact sales prices per red f(I)n are down 12 percent year over year. Here, a person is much better off renting and putting their down payment money in a cd or treasury bill
Investors bought up scores of homes during the pandemic because record-low mortgage rates and skyrocketing housing demand created opportunities for hefty returns. Now they’re pulling back in response to the rise in interest rates, which is causing housing values to continue falling in much of the U.S. as homebuyer demand falters. While many investors buy homes with cash, they’re still impacted by high interest rates because they often take out non mortgage loans to cover renovations and other expenses.