Economists warn potential housing bubble is brewing
Vložit
- čas přidán 10. 09. 2024
- The Federal Reserve Bank of Dallas released a report outlining how the housing market is showing signs of a brewing housing bubble. Enrique Martínez-García, senior research economist and adviser with the Dallas Fed, joins "CBS News Mornings" with the details.
#News #Economy
CBS News Streaming Network is the premier 24/7 anchored streaming news service from CBS News and Stations, available free to everyone with access to the Internet. The CBS News Streaming Network is your destination for breaking news, live events and original reporting locally, nationally and around the globe. Launched in November 2014 as CBSN, the CBS News Streaming Network is available live in 91 countries and on 30 digital platforms and apps, as well as on CBSNews.com and Paramount+.
Subscribe to the CBS News CZcams channel: / cbsnews
Watch CBS News: cbsn.ws/1PlLpZ7c
Download the CBS News app: cbsn.ws/1Xb1WC8
Follow CBS News on Instagram: / cbsnews
Like CBS News on Facebook: / cbsnews
Follow CBS News on Twitter: / cbsnews
Subscribe to our newsletters: cbsn.ws/1RqHw7T
Try Paramount+ free: bit.ly/2OiW1kZ
For video licensing inquiries, contact: licensing@veritone.com
Click here for more news from MoneyWatch: czcams.com/play/PLEb3ThbkPrFYgDkeTDyUZHDFkNV1hErBj.html
How long till half the us population is homeless? Gonna be wild times
Horrible pronunciation of his name. Great job.
Why don't we stop corporations/banks from buying and owning residential property??? Wouldn't that solve the housing bubbles that always occur? Wouldn't that stabilize the housing market and keep residential homes/apt/condos prices low so actually people can afford them to live their lives without going bankrupt?? Seems like that could work!?!
They want ppl in apts not homes
Illegals come First !!!!
yes we will be rental nation at mercy of greed
Because then the average American would have a shot at passing wealth to their future generations thru home ownership, if that occurs we not longer have to beg the gov for help, and they will be rendered useless.
lol, and ppl joke about the US being seen in parallel with the Roman Empire. this happened there too: land that was meant to be sold to civilians at an affordable price was bought by senators and aristocrats under fake names or so, while the civilians had no land to farm. thus the middle class was diminished, while the high aristocracy did not want to pay taxes while it got richer and richer. ring a bell?
It’s absurd that more people haven’t figured this out. Private equity is outbidding first-time home buyers.
that's insane. due to a great location, we actually put an offer for $20,000 more than the asking price, not including the closing cost. And probably will be outbid by another disparate first time home buyer. these investors are ruining the housing market and now we have to compete for an overprice house.
@@gheerock4077 why would you ever overpay for something?
They HAVE figured it out. The great reset is here buddy. "You will own nothing and be happy about it". And if you voted for the left then you caused this.
@@BillyBob-op6lg if you don’t get in the game you get left behind
@@ApriliaRacer14 mhmmm sure ok let’s see what happens
If they are saying its a "potential" housing bubble that means that it was a bubble long ago and its about to pop
It was a bubble about 3 years ago when they kept telling us that "Everything's fine. There's no bubble, things are different now."
people would start to find the root cause after they feel the pain and it’s always too late
They've been printing money and suppressing rates since 2007! These "economists" are pretty clueless....
Exactly...
There's a lot of money to be made in that span of time. They don't want to ruin the fun too early.
Is this a joke? We have been in a housing bubble for years now.
LETS GOOO!!!
Pop baby pop!
Sincerely, an intelligent consumer who won’t pay insane amounts and void inspections and get on bidding wars (cash only incentives) over a POS home with a small lot and crap amenities.
Bring reason back. Lets go! pop!
Not in a bubble. Inventory is garbage. Housing market crashes are extremely rare, as we’ve only had 5 crashes in a little less then 200 years. I understand people want to get into a home, but a crash in unlikely. Much more likely that the market will level our, possibly dip a little bit, but no crash. We need millions of more homes built, to meet buyer demand, and that takes time to happen, especially with the crazy supply chain issues and massive inflation keeping new home building very expensive.
@@jesse_-
Lmao Jesse stop it
In my market at NOVA, I still seeing houses sold over asking price. Crazy time right now, no one can predict what’s going to happen. However, interest rates will continue to move up this year for sure.
@@AnonYmous-vm5ls you love me! You’re obsessed with me! Instead of TDS, you suffer from JDS.
@@jesse_- The bigger issue is that rising inflation making it harder to afford a home. But with new construction, prices will level out.
Been saving up for this one. Let the market crash. Can't wait to buy low.
How are you saving? If it is in the bank they are using it against you while it is getting devalued by inflation. If it is in crypto or stock market they are using it against you. If it is in ETF's it is being used against you.
Hope you have all cash.... the banks don’t play that, oh you’re turn, lucky you, here’s a cheaper house.
Buy low, sell high. I like it
@@marcusavila2961You’re welcome.
One prices start to crash, they will fall in price for a decade.
Start penalizing corporations that buy up single family homes to rent and individuals who buy multiple homes for their rental income. Tax them in addition for every home they have to incentivize reasonable numbers of home ownership, stabilize the market, and lower prices and interest rates. Also deal with the issue that is AirBnB and other rental schemes that keep people unhoused.
You might not have a hundred million dollars to invest, but that doesn’t mean your money can’t share in the same opportunities available to others. You work hard for your money; make sure your money works hard for you.
The wealth you pass to the next generation can have a profound impact on your heirs, providing educational opportunities, the capital to start a business, or financial support to your grandchildren.
To manage investment risk, consider maintaining a broad diversification of your investments that reflects your personal risk tolerance, time horizon, and the nature of your financial goal. Remember, diversification is an approach to help manage investment risk. It does not eliminate the risk of loss if security prices decline. Because investing can be complicated, consider working with a financial professional to help guide you on your wealth-building journey.
can you endorse any ?
TERESA JENSEN WHITE does a perfect job. look her up on the web
thanks a lot . Found her website and it really impressive
Brewing ? it's about to blow the damn lid off the pot house prices are ridiculous it can't keep going like this
"How is the housing market impacting Millennial home buying?" - There's Millennial home buying?
For the top 10% of us, or the ones that were lucky to get something before 2020, yeah.
COULD be in a "potential" housing bubble? You mean we are in the biggest housing bubble in history. Today.
Bubble burst? Try nuclear explosion
Investors dont care about rates, because they pay cash. Supply is low, so homes will command high prices for the foreseeable future. This fed crony is trying to speak a crash into existence.
Investors are using mostly borrowed money to pay cash for those homes. When the fed raises the federal funds rate, it makes it much less lucrative to buy homes as investments. Property taxes for homes in most major cities are going up this year and 2023, some as much as 50%. Long term home owners are mostly sheltered from that rise in property taxes. But first time home buyers and investors will take a hit. A crash is coming, and it's going to be glorious.
You have zero clue. Ya investors pay cash. But if the interest rates go up. Buyers will be pushed out . A lot.
You mean "cash" that came from debt? Right. Look at what's happening in China with Evergrande.
@@galaxy439 nice to see others who analyze all aspects of the bigger picture.
I hope it all crashes around their ears. The big companies and out of Towner's are pricing out locals. All the houses in my city seem to be owned by open door or Zillow. With Californians and out of staters willing to pay the 2k rent for a home. Or buy a house for double what its worth. We are fortunate to be able to downsize and wait but so many are becoming hotel livers or couch hoppers. It's crazy.
Tech workers are increasingly mobile and can move anywhere. They can also work multiple jobs and bring in insane amount of money for bidding wars.
what city are u in sounds like Atlanta
The unregulated real estate industry is greed driven and they are making a killing, as normal people struggle to pay the rent, or mortgage. Now, the record profits oil industry is screwing us all good too!
@@jeretso Yep, techies and the unregulated real estate industry. Two peas in a pod who feed off each other for their profit.
Nawww , it's fine . Just ask any Real Estate Agent .
He is brilliant but very hard to understand. By the time I figured out what hesaid he was 3 sentences ahead. I got nothing out of this.
How could this be? A 30% increase in housing prices over a 2 year period while rates are also increasing? That’s totally sustainable.
Lol right?! Reports of a bubble? Who would have thought??! Rent went up 50% in some places in the last 2 years
It went up over 30%
@@mmatheust in Miami 60%
A true inflation rate of over 20%, due to significantly devaluing the dollar by printing half of our money in two years will do that to prices, especially since the value of housing hasn’t been devalued. A weaker dollar causes prices to rise. Basic economics. Supply and demand is also basic economics, and we have a record low inventory, with a record high demand. Over 5 million houses short, and growing. It’s more likely that wages will eventually catch up, but we are going to need a strong economy to get there sooner than later. Think of it more in terms that everyone took a major pay cut, rather than prices going up. We will either need deflation, which is unlikely, or higher wages, but that doesn’t happen until companies gradually increase their prices so they can make enough profit to give raises, so takes a while. If you want a big raise, the best way to do that is get a new job, as people are moving around to new jobs like crazy, and giving themselves 20%-30% increases. Companies that do well, and that are positioning themselves against their competition, are paying higher salaries now. I have a few friend that made close to 100% increases by building more marketable skills, then finding new jobs, and all those people were able to secure 100% remote jobs, so they don’t have to move.
It will pop. No one has the income.
How is it "potential" bubble when the average price of new homes is now $500K+? That's about a 100% increase since January 2021.
Pretty sure we are already in one
If a 500k house went up to 1m, then a 50% fall would put you right back at 500k. Will home prices fall more than 50%? That's tough.
2 years and 30%+ later is not prolonged and inflated enough for these guys? The bubble is not starting, it's fully fledged!
Has the housing market inflated or the dollar devalued? Have you noticed anything else go up in price?
@@bluenwhite2009paychecks beg to differ with you
@@sinforoso2000 I’m talking about products and services that you commonly use
@@bluenwhite2009 Products and services have gone up, some due to scarcity, others due to cost, others due to opportunists. Currency devaluation would entail wages reflecting the devaluation. Up to this point, wages have failed to keep up with the majority of products and services. With consumers in a purchasing power crunch, discretionary spending is taking a hit, and credit card debt is also on the rise. Home prices have surged 35% in two years while wages after payroll, have maybe gone up 5% (basically at a 7:1 ratio). Many will soon be faced with the choice of what to pay. Unless "this time is different", food and energy win that battle.
Although currency devaluation may be part of the equation, unless salaries come up 30% this year, it's a bubble...
@@sinforoso2000 I understand. The consumer is getting squeezed. I only ask the question because between 40-80% of US dollars in existence were put into circulation since 2020. More money compounded by less things being produced (lockdowns, resignations etc) = inflation. Just something to thing about
I do not believe we are at the beginning of the increasing housing costs. We have been house-hunting since the beginning of 2020 and I have personally watched home prices nearly double in some locations.
We are definitely at the top of the crest, about to go over the hill and take the plunge. I've been shopping in the same time period, and can vouch for what you say about prices. Completely out of control.
Get ready to buy on the dip. I’ve stocked my cash up in an MMA and ready to pounce when this bubble pops.
@@alvarezgamers You probably have $5000 saved and now "ready to pounce".
It’ll happen when least expected, not when everyone is expecting it…
This one is easy to see a mile off. Not everything is unexpected
You're spot-on! It will definitely unfold in an unexpected way. Home prices has increased and has taken the renters along unwillingly for a 20-30% increased ride. This will unfold in the form of rental inflation and I'm not sure exactly how but a lot of people I know are feeling the pain. SMH!!
@clot shots Incomprehensible!
BURST BABY BURST!!! Make it fair for first time buyers again!!!
When inflation drys up disposable income some people won’t be able to afford their mortgages
Bingo
👍
Federal reserve is saying buying homes at these inflated prices and you’ll soon owe more on the house than the house is worth because the prices will start to go down due to high prices, higher rates, more homes being built, less homes being sold because so many people are priced out of the market.
I’m no expert. But if they thought all of these stocks would continue exploding in value forever (Netflix and other tech stocks) and now they’ve all crashed 50% + and reached pre pandemic levels, I think it’s pretty reasonable to predict the same thing has a high chance of happening to housing. And if it doesn’t we’re all fked. People were already complaining it was hard to save for a house in the years after the recession . It’s insane now. I’m 26 and way ahead of most my age just by RENTING. Most other people have never left home or pay the rent with student loan money. The only people I know who have bought clearly had help from family.
Yeah, they don't tell you that.
IF middle income people had a honest and reliable route to investment, they would not chase or create these bubbles. When the only way to "save" is to put your money in the giant slot machine in New York, ANYTHING else looks stable, legitimate, and honest.
The worst part about Capitalism is the croniness of it. Include Low income people in your assessment too. How are people to attain the American Dream when they're priced out by insurmountable generational wealth stored in corporations / wall street?
Slot machine brilliant
The value of property is going to fall it always do they blow it up like a balloon and then when enough people have payed for those houses at inflated prices the bubble pop and properties come down to it originally value but the property taxes don’t come down and people will have under water mortgage with no equity for 25 years
Wonder why so many have been tricked into thinking that it's about enslaving everyone to rent for the rest of their lives? When it's actually about tricking them into taking out inflated mortgages that they'll pay for the rest of their lives. They just see it cheaper than rent, of which for a time it seems that way.
When the property value comes down you have the right to apply in county tax assessor for a new property value assessment and therefore a recalculation of your taxes. Don’t over pay.
@@chely3487 yes, that takes care of the taxes, at least. Though many are still having to fight for that, and end up paying inflated tax bills before reassessment take place. The increased debt load, as I point out, will be a whole other beast once again.
@@chely3487 yes that’s right
yay housing bubble, so now people can buy
That’s what I was thinking! Goodie goodie😁
We've been in a housing bubble since mid 2021... economists must have been sheltering in place still lol.
What will happen when the bubble pop
@@Elii_why When it pops, there will be another housing crash like we saw in 2008 when the economy tanked. Home and property values will drop significantly and mortgage loans will flop; leaving people having to do a quick sell on their homes and properties for half the value. At the same time, the housing market will be flooded with foreclosures and homes that won't sell like hotcakes like they have been recently but instead homes and properties will sit on the market for months and months.
@@fadmap9676 damn the ppl can’t afford that again
@@Elii_why Well it can go both ways, homes will be much cheaper during a housing crash so people who can't afford the WAY over priced homes now will be able to, that is so long as they can get a loan still.
Incomes don't warrant the prices
More homes are being built but are bought out by investors/foreigners to rent leaving them mostly empty because they can’t find people who’d want to rent a home at such high prices. There should be a cap on that
People are so afraid of not be able to buy a house, that they are just buying any house on the market regardless of the price. This worsens the real estate market situation and delays a bubble that must be burst.
You should see australia's housing market. It's freaking nut's.
Don’t buy a house don’t sell a house just that easy.
Basically
Your taxes and insurance will still triple, now what?
I could have told you this months ago, looking around and seeing all the unaffordable condominiums going up here in Minneapolis. Pretty much every street corner has a new set of condominiums going up.
Same here in Salt Lake City. Rental homes are already half the monthly cost of a mortgage and they will get even cheaper once all these empty units hit the market this spring. Clearly far cheaper to rent and wait for the correction before buying.
That's what happens when everyone artificially jacks up thier prices, I'm all for it.
He's using a lot of hope. To hopefully it doesn't continue like this. He won't officially say it, but the only way this market ever becomes affordable again is for it to crash.
As an economist myself you chose someone sayin 6 months ago sayin we are fine. Lol. As an economist we are suppose to predict the future and yet this fool is projecting whets happening now. Rates will be at 8.5%, mortgage companies are closing, real estate agents are and brokers are filing BK. Layoffs will continue in real estate, mortgages, tech, banking, construction and travel. This will all happen in 6 months.
The market will not correct until the consumers get what they want. Tech workers for example can work anywhere. They will move back to their hometowns, college towns and vacation areas. Tech workers also have the ability to work multiple jobs and will drive prices up until builders catch up. Build it and they will come.
What brewing? It’s already brewed because of builders greediness and some stupid government and lending policies. It became a nightmare to new buyers already breaking their backs and their kids future.
Brewing ? This is past brewed houses are extremely over priced to expensive
So everybody knows buying a house near a major city nowadays is dumb...
Good. Let everything crash. Crime rates have an absolute correlation to high costs of living.
They’ve BEEN saying this for years😒
Wrong - It's bursting, not brewing.
Is another bubble created by big banks like 2008.
Its not big banks but private investors buying property. Big banks dont go out of their way to purchase homes for investment purposes. I know bc Ive worked for big banks.
@@youssefhamidi8152 that's insane. due to a great location, we actually put an offer for $20,000 more than the asking price, not including the closing cost. And probably will be outbid by another disparate first time home buyer. these investors are ruining the housing market and now we have to compete for an overprice house. My realtor keeps telling me, its a sellers' market rightnow.
Its private investors buying houses in cash.
@@gheerock4077 I know people who offered 200k over asking, 20k over asking is normal right now, no big deal.
Too many greedy wannabe landlords & house flippers just trying to squeeze more profits
Whether the big institutional investors are playing a role or not depends on where you are in the country. These institutional investors tend to be concentrated in the south and sunbelt where the average age of the home is younger and the analysis of such deals are more apt to be analyzed using an algorithm. Where the housing stock is older, more difficult to manage, and requires more expensive upkeep, like the in northeast US, the big institutional investors aren't significant players in the single family or small multifamily market. Where seeing huge price increases everywhere and the root cause is a lot of ordinary Americans and institutions both have a lot more money to spend and the reason for this is pandemic era policies were overdone. But back to the institutional money for a second, why would investors pay cash for real estate? It's not FOMO as the Fed asserts. Investing in real estate is a lot more difficult than say investing in paper, like a stock or bond. You have to manage it, pay high local taxes, maintain it, put money into capital improvements, take on liability and the potential to get sued. The reason for investors moving into real estate is the stock market is overvalued without more QE, the bond market crashing without QE, inflation is surging, and real estate is both an inflation hedge and a cash producing real asset that can produce cash-on-cash returns similar to what bonds used to provide. All things being equal, if you could get the same return by owning a bond or stock as you could real estate, it would be a no-brainer to shun real estate to own a piece of paper. I would encourage everyone to read the blog post where the Fed asserts the housing market is "unhinged from fundamentals". They choose only two stats, price to income and price to rent, but ignore supply and demand, the demographic boom of millennial and gen Z'ers moving into home buying age, people moving from high-cost to low-cost areas, work from home, etc. Basically they're building a favorable narrative where their QE and ultra low interest rate policies are not to blame. But these home price increases can keep going up until consumers exhaust all their disposable income (as housing gets paid first), and by many metrics that is only just starting to happen, as we are now seeing a large decline in wages when adjusted for inflation. Basically the only thing becoming "unhinged" in the economy is inflation expectations. I'm not saying this as a political statement, I myself am a lifelong democrat and have voted progressive. But I can't see any reason to think that the Fed is right here or that we don't have a huge policy error on our hands. The Fed still doesn't get it, but if there is a bubble, it's probably starting with US treasury bonds, not the housing market.
..and it is the fact that the value of what money homeowners have left, to buy anything other than housing, will inevitably stand to put many into foreclosure. You are right, wages are not rising when adjusted for inflation, and that is why inflation will have to be reigned in. The only way to do that, especially with how high it has grown in such a short time, will be to do what Volcker did back in the early 80s. The Fed has no choice there. Again, you are right, the problem is a lot more entrenched than what excuses have been thrown around lately. QE and low rates only amplified a previously unchecked problem.
I see others are paying attention to what is really going on👏👍
Why are companies allowed to buy homes?! This is outrageous that a family cant buy a home because a company wants to buy it. Its residential property not commercial
Don't worry. Institutional investors are morons like individuals. Once housing starts crashing theyll pull out.
Driven much more by demographics (people consolidating to urban metropolitan areas and older people aging in place). Institutional investment was only 18% last quarter. The fact is there is more 'funny money' floating around thanks to the last administration and the current administration that just print print print money and cause inflation. Compounded by a global supply chain crisis. I'm not saying corporations and foreign entities owning SFHs shouldn't be a focus point, but it certainly isn't THE focus point.
Companies are not the main cause although they are a factor. It's mostly private seller's wanting top dollar because of demand. Low interest rates cause bubbles and is fiscally unresponsible
The boom is already set to burst. Too late. Anytime mortgages grow at 30 percent and income growth is only at 3 percent. You have a big big big problem. Beware.
Everyone listen up! The housing market is going to tank. If you own a home you're not happy with, or you don't want to live in it for another 10 years, or you're a home landlord, SELL NOW or forever hold your peace. All the analysts and advisors and banks giving the warning. The bell tolls in the distance amongst smoke and mirrors of naysayers. The rise in inventory will cause apartment complexes to reduce rents. Home landlords will be competing with apartment complexes with amenities like gyms and swimming pools. Consequently this will make it difficult, if not impossible, for home landlords to charge enough to cover their mortgage and expenses. Many home landlords will foreclose. Don't let it be you. Sell now while you still have equity. The hardest hit states will be in the sunbelt (CA, AZ, NV, UT). The writing on the wall is clear folks. SELL!
Comments like these show the housing market isn’t going to tank. When everyone writes the housing market can’t tank, then it’ll tank…
While I agree housing in AZ is insane we have a shortage of 250k houses. I don’t see that crashing anytime soon. Leveling out? Yes.
@@adventuresinthebay8487 90% of you say "the housing market can't tank, there's no enough inventory". Now what?
I need the bubble to bust. So I can buy a home.
Well the economy tends to crash sometimes.. low interest won’t do you any good if you don’t have a job
It’s not a bubble. Very soon we’re going to have millions of Ukrainian refugees not to mention millions of other migrants once Title 42 is canceled. Where will they live? Already 4-5 million homes deficit.
This means don't purchase their paying customers target real estate property until the investor sells it on media's platforms
Not enough homes. People who have homes… have a LOT of equity. No bubble.
Lol
Shhh… u cant go exposing the flaw in this theory. Let them expect a huge price drop.
Lots of baby boomers aging and starting to pass on
So if they sell they will lose it all in a bidding war to replace it.
That equity is about to be gone. Go look at your 401k, that's down about 30-40% just since January. You'll see.
Blame the lack of inventory into the behaviors for country allows concerning multi billion dollar companies getting into real estate business. Companies like progress residential are purchasing homes at high rates, and tagging that property with a high rental expectation. Driving up the costs of the surrounding community.
200-300k to live in the ghetto geeze and still getting min wage thats the american dream for ya
Inflated prices is the equity of the property taken away at the point of selling
There is no where to live. That's why it keeps rising. There won't be a crash unless supply exceeds demands quickly.
We are turning into a rental market ran by corporations. That's it. Need supply.
You are right on the first point. I'll debate with you on the second point. Only 18% of properties bought in 2021's 4Q were by corporations.
@@10PercentForTheBigGuy I read 30 percent
@@10PercentForTheBigGuy I read 30 percent
You'll get your supply when prices go down. People will walk away.
If it takes 30 years to pay off for something, you clearly can not afford it.
There are a few very important factors working AGAINST a burst in the housing bubble. Firstly, demand is still here for housing, and it doesn't seemed to have waned at all. Secondly, rents are actually soaring faster than home prices, which means that real estate investment will cost nothing after rents are collected, and it may likely provide cash flow in most cases. Most importantly, the costs of new home construction has gone absolutely through the roof (no pun intended). Labor and materials costs make brand new homes prohibitively expensive right now. Developers are reluctant to start new projects due to the rising construction costs which doesn't bode well for the long term supply situation.
Let's see what 10%+ interest rates due to that picture. Hahahaha
demand happens before a crash, and in this case, its artificial scarcity. it will crash.
Simple solutions - restrict ownership of homes to people, restrict people to owning one or two homes max, restrict or prohibit foreign ownership of homes.
Government restrictions on what you can own? Big time unconstitutional lol
@@edgarjacc796 government restricts ownership of illegal drugs, guns, explosives, glassware, stills,
How about we restrict the right to bear arms while we’re at it, restrict Jew rights, and restrict colored people from shopping at the same stores us whites shop at. The more you restrict, the less opportunity and freedom you have.
Why doesn't anyone in the government see this?
What happens when the Bubble pops?????? What happens when the house is just toooo old and disgusting????
then itll go for pennies on the dollar
@@LincolnLog that's insane. due to a great location, we actually put an offer for $20,000 more than the asking price, not including the closing cost. And probably will be outbid by another disparate first time home buyer. these investors are ruining the housing market and now we have to compete for an overprice crappy old house. My realtor keeps telling me, its the sellers' market rightnow.
2008 here we go again.🤦🤦♀️🤦♂️🤦♀️🤦🤦♀️🤦♀️🤦🤦🤦♀️🤦♂️🤦🤦
Even worse
@@AnonYmous-vm5ls 👍
I wonder if the next house bubble pop will also occur with people losing their jobs. I see a lot of people excited for the housing market to crash but no one talking about what if any increase in unemployment will happen. When the 2008 crash happened it took the majority of people 1.5 years to find another job.
That’s what’s not being discussed..!housing bubble then unemployment rising . Jobs will take a hit we will be in a crises
@@davidammonds2011 Housing falls apart, then no jobs, then no food, no gas, etc.
Oh It’s Coming! These Homes Are All Over Priced & Banks Have Insurance On All Homes In Case Of Default! All A Game!
I think any idea of a soft landing is a myth in these types of snowball situations. Just not possible.
Back To 2008 or Farther Nobody Learned Nothing But To Be Greedier! Have To Pay For It Now Not Shocked Been Wondering How Long They Thought It Was Going To Go On.
I’m waiting for that housing bubble to pop so I can afford a house
They’ve been saying that since 2020. I waited and waited… then could wait no more and had to buy. :(
0:08 you know it’s serious when the glasses get adjusted
I do think that the housing market is in deep dodoo. Need money? The best asset to sell right now is an extra home just when record building starts and repos hit the market in waves. Has no place to go but down like stair steps. Already happening in many areas of the country. Sell now or you will regret it later.
The bubble is endless. The bubble will only grow.
Shhhh. Stop telling the industry secret
It's been a bubble for several years. The question is when it will pop. Fix your headline.
At some point we'll realize that there should be limits on personal and corporate wealth and ownership at which point a break up is legally triggered
Sounds like the scary socialism the rich are trying to avoid. It makes sense though. Put a limit. People don’t hoard and devalue currency. But the rich will never allow it
Maybe folks just have to face the thought of moving to another area where homes are more reasonable. Hint: Try OLD Bullhead City, Arizona. Seriously, you have the Colorado River a mere walking distance away, with nine gambling casinos on the river bank across the river in Laughlin, Nevada, you have four-wheeling in the Black mts. (where gold mines are STILL being mined to this day). Fireworks over the river on the 4th of July is a sight to see. And we’re only 90 miles south of Vegas. Water taxi’s move people from one casino to the other, for those who don’t drive. There’s plenty of water sports (fishing, jet skies, etc.), night entertainment, and the best Springtime in the nation. Most important, PRICES ARE STILL REASONABLE.
that is just the problem there almost isn't a single area where prices of houses haven't shot up to unattainable prices.
Tell us something we don't know lol I feel like the majority of Americans want it to crash.
WTF!?!?! A bubble/boom is brewing now?!?! Folks, the bubble has been here for well over a year now!
Mainstream media is late to the reporting party.
So when prices go up due to the Federal Reserve’s crazy loose monetary policy, there “might” a housing bubble? Noooooooooo waaaaaaaaaay!
Housing bubble?!🤣 you corporate real estate companies $ banks buying up all the homes driving up the rents and setting their own “market” prices .. ok
Heard this so many times, a lot of hot air. Market correction yes. Crash no. The Fed won't let this happen.
Their tool is to increase liquidity and print more money. This time THAT IS the problem! Be careful! They've been inflating this bubble since the 2008 financial crisis. Most people can't even imagine in their wildest dreams what's about to happen...Either the market crashes or the dollar does, it's that simple.
Fed is actually trying to crash the housing market to tame inflation…They already did so with the stock market…
Too much money chasing too few goods, real estate is the best hedge against inflation.
ive actually had to turn down job offers because the salary wasn't enough to live off for the area. I cant live in the area because the rent is so high..because the housing market is so high...these prices wont go down anytime soon if ever
I'm a senior citizen in a condo overlooking a lake in a highly desirable community. I am not a professional investor; this is my only property and where I live. I admit I did purchase a high-end property so that I can make some money when the day comes that I must sell. I'm divorced; raised and educated two sons so eventually my savings is going to run out and likely before I die. My plan is to sell my condo, hopefully for a profit and live on that cash for the rest of my life. That is how climbing the property ladder works.
That is speculation, and all you are doing is gambling. The ladder you speak of, is other's backs that you're standing on while you wait to secure your own future.
People like you are making housing unaffordable for your son or grandchildren. Congrats.
how about renting out that apartment and living in thailand / bali ? the rent alone will cover your housing + food + healthcare and then leave you some.
@@Matthew-rp3jf Not always true. I raised and educated my two sons both of whom have degrees and found and kept good jobs making more than I (have made) or will ever make. Fron a young age on, I taught them how to budget, how to manage a check book, to plan and save and to spend wisely and how to get and manage their FICA scores. They both already have homes that they bought 100% on their own. They both worked hard from age 12 on with paper routes, then high school baggers and cashiers at the local grocery store; both supporting an old shared vehicle while saving for college. In college they worked summers jobs as well as part-time jobs in college to pay for their books and out-of-pocket expenses while I covered their room and board and classes that I worked hard and save for from their babyhood on. One works for Intel in IT and the other works in IT for a bank. They are both smart and fiscally responsible men with no debts except a home mortage and are doing well. I don't think you can generalize for all people...It is not me that is making housing unaffordable. That is COVID, big banking, mortage companies, inflation and others that are way beyond my high school English teachers and mom's pay grade. I worked hard, sacrificed and saved years for a down payment. My father only had a 9th grade education. I left home at age 17, and from that point forward I was 100% financially responsible for myself. I worked full time and went to school fulltime and put myself through college. I earned one $2,000 scholarship for high grades and the rest I paid for myself. In my children's early through high school years we did without Cable TV, new vehicles, vacations (we camped) new clothing or eating out. I kept my "eyes on the prize" which was to help my sons get a decent head-start.
@@fwefhwe4232 I know some do this, one of my single friends did- she lived in Thailand for years; house sitting and traveling. However, I take care of my 76 year old husband (who no longer drives.) I am age 71 and want to be near my son and 13 year-old-grand daughter, my doctors, my friends and my senior center classes. My husband is still working as well and we have a dog that depends on us. In our condo community we cannot rent out our condo without a LOT of hassle as well as costs. And not only that, I am unwilling to rent and come home to a trashed condo, ruined carpets and flooring, broken down/filthy appliances or mechanicals because they were not maintained or taken care of properly. This is my fulltime home and when I run out of savings, I will be selling it to live on the rest of my years. Renting it out would be too much of a risk for me to take - I have had friend who have rented and came home to ruined carpet by a renters cats/dogs and had to have their homes totally repainted, new carpets or flooring etc. put in which cost them as much as they received in rent.
u mean its already a bubble and the risk is when it pops
The late 1970s 2000s?
IMO, if the Fed had lowered rates even further, to say negative rates, instead of raising them, we'd be in a huge bubble right now. Prices would have risen way more; more than another 20% rise in prices. The Fed has caused mortgage rates to react, since the Fed doesn't directly control those rates, but they have done some good already. You have to look beyond the normal news, there will be good home purchase deals over the next few months IMO. Renting for life is certainly a loser deal for just about every family.
Let's it pop so I can buy a house lol xD
Faaaaxxxxxx
🤣🤣🤣🤣 Zillow says expect a slow down. So if the housing market is starting to bubble than the Fed has no plan to stop inflation. I notice they didn’t mention a recession, more economists believe we will be heading into a recession by next year.
Ah yes, finally agreeing with what's blatantly obvious. The housing market is going to crash hard. Houses are about to be dirt cheap.
I feel bad for those about to retire who are counting on the value of their home though.
Houses won’t be “dirt” cheap… there’s still a huge supply & demand curve. House may moderately drop in value but nothing will ever be cheap again.
Prices aren’t going to come down like in the recession. Corporations still have tons of cash to buy these houses. It’s just the little guy who will suffer.
We won’t see anything like we did in 2008. The main reason 2008 happened is because we created an artificial secondary market for mortgage backed securities. The saying was if you had a pulse you qualified. And when people started defaulting, the secondary market got risky and a lot of investors pulled out because of the risk. That causes higher rates and less business. Similar to what’s happening now, however for different reasons. Feds are pulling out leaving the GSE’s as the main player. Then private investors will jump back in as the market stabilizes and life will go on. I expect around 10-15% as a healthy recession.
Exactly, there're no NINJA loans and the people that have had loans approved are highly qualified and vetted by the banks. Even if there is a crash/soft landing people have a lot of equity in their homes now if they choose to sell and walk away.
No one knows the future. No matter how it's analyzed, it's not certain. That's just the way it is, you can plan, prepare, have all your ducks in a row and that's when it hits you(what you least expect). Just the way it is
If you think about what people are paying for homes with what their income is most are getting into homes that they can’t afford over the length of a 30 year mortgage and many are short sighted and don’t account for inflation and increase in property taxes. Most just look and say I can afford this now if everything works perfectly and very rarely does everything work perfectly for 30 years. Just my prediction I think 3-5 years is the time it will take when foreclosures start going through the roof and I hope they aren’t bundling mortgages like they were before when the crash happened because guess who will be bailing out Wall Street and the banks the tax payers.
Wages have always outpaced things like inflation, prop taxes and insurance.
Potential? You mispronounced Inevitable.
There will be many folks with buyer’s remorse in the coming years.
"You will own nothing and be happy"
What if there is no "bubble" because of demand and things just level off?
Demand will be gone once people start losing jobs and government stops giving free money out. There will be no "level off", just a major drop. You'll see.
@@networth00 guess only time will tell. Keep in mind, people gotta live somewhere and the population is growing by the day, housing isn't on pace with even current needs. Hundreds of thousands migrating into us on a monthly basis. Pretty complex things but I hear you, things can't go up forever...