U.S. housing prices are likely to enter a long period of decline, advisory firm CEO says
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- čas přidán 31. 03. 2024
- Meredith Whitney, founder and CEO of Meredith Whitney Advisory Group, says supply-demand dynamics will probably "invert," with supply set to exceed demand.
Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.
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Sounds like you’ve got a lot of opinions but no clue about how the market is currently operating. Guess you haven’t made more than $5M from your keen market observations.
Because American people want what they want and they want it now never thinking of the consequences that's the American way people didn't learn from 2005 to 2008 🤔
Is she ever going to mention the inventory of homes being consumed by investor rentals and corporations buying up huge swatches of inventory? The individual home buyer is constantly being priced and bid right out of the market.
This is because institutional investors only own 1% of the total single family homes in this country. 600,000 or so. They own homes in certain pockets of the country so maybe in your area it feels worse than the numbers suggest. The news likes to sensationalize this and blame them. The reality is however, the low historical home prices prevented builders from building at a profit and so we are at 5+ million home deficit. Simple supply and demand problem. We need to build. Period.
@@yOnKiNaToRhome prices have never been low you goofy
@@yOnKiNaToRthat is not true. Investment residential ownership is likely in the 75% range, including over 60% of sfr. How many are "institutionally owned" is nearly impossible to calculate. I personally work with home offices that own 1,000s of SFRs under LLCs that make them appear to be small mom and pop investors.
No, she was hired to relay propaganda
Inventory doubled the last two years
I don’t see it unless companies, investment groups are barred from buying both domestically and international.
This is so
Stupid, what percent of home are actually owned by companies?? It’s all Biden printing moneys fault.
Why she sounded not confident at all with the results she was talking about? I wanted to believe her, but there is no solid explanation about the dynamics, other than some numbers.
Amen!!
Dont trust people who seem insecure and keep mumbling "uhm" and "ah"
The biggest myth was that seniors would downsize. Granny still wants to live out her remaining golden years in her 5BR, 3,300sqft house.
I disagree. My in-laws have plans to downsize when My wife and I leave.
@@sheepman6291 Props to your in-laws, but a whopping 78% of Boomers are deciding to 'age in place' in their current homes, according to recent survey from Redfin.
No one is going to downsize if the interest rate remains elevated as the senior would not want to pay the higher rate to live in a smaller house. If the house is already paid for, then there is no reason to downsize. People need a room for caretakers to live in as they cannot afford to live in full service assistant living facilities. Investors are converting hotels into assistant living facilities for high margin business.
You're forgetting the high property taxes that no one can afford with low social security payments. @@olliet6325
Exactly why would you pay the same amount with more interest and not towards a principal for a smaller house? The government with printing too much money and then the Fed with screwing with interest rates created this debacle.
How much does CNBC pay its anchors? Im beginning to think I could excel at this job...
Anyone can do better than this, not to mention she doesn't seem to understand most of what she's talking about
Meredith Whitney? Boy was she right on Municipal bond debacle:)
Yes, they're all worthless. She is such a stunning genius, if you don't believe her just ask her. Even a broken clock is right twice a day.
Blackrock and private equity will buy most of the supply.
Ever heard of "renters' nation" and "you'll own nothing and be happy" aka The American Nightmare?
My thought exactly. Vulture capitalism at its worst.
exactly
Wonder if they will stay alive for crimes against humanity
kanye west vulture album@@bradleybowden1131
Just outlaw corporations from owning more more than X NUMBER OF SINGLE FAMILY HOMES
Seriously, this is the kind of analysis she does? Gaming is leasing young men to live at home? It couldn’t be because the young men aren’t able to compete and afford their own place so they’re back at home and can’t do anything except gaming.
45 year veteran of residential construction in CT.
No one seems to remember the times when you couldn't give away a house , specifically when the PR was 21 percent. There is an inevitable crash coming that will surprise the uninitiated .
I remember! My husband and I were house hunting in 2010. So many houses on thr market and a ton of them trashed by angry former homeowners that were foreclosed on.
@@comp.eng.student2055 You weren't born 13 years ago?
The problem is that THIS TIME when interest rates go really high, corporations will have all the money and own most of the real estate. So it won't matter as much to them. Renters will be screwed tho more than those that own, but it's not good for any normal person.
holy shit, she drove me nuts listening to her!! 🙄😬
Yeah, ummm, well, ummm, but ummm, I agree ummm with you ummm
Right!!! 😂😂😂😂
Me too uh uh
Staying home with your parents is better than staying home with partner that doesn't exist. lmao
Remember how she disappeared after the her terrible call on muni bonds back in the day?!?
Now she's resurfaced with another sad attempt to gain notoriety.
I mentor a few young men and my recommendation has been for them to live at home and pay their parents a flat rent. Build up savings, add more/new skills, and then in time venture out on their own. Adapt to the market conditions.
We need to pass laws to keep big corporations out of residential housing
And how would you like to go about that?
Not taking into account
1. Real chance of homes now becoming generational and will never be back on market
2 legal and all kind of immigration (which will also require housing and some can get money from back home)
3. Millennial generation left on the sidelines without housing is piling up.
Immigration will reverse
The stats show less generational housing, not more.
And the stats also show it's about the AFFORDABILITY of homes MUCH MORE than it is about the QUANTITY. They're building a ton of apartment units and people keep spreading out more and more. That's the majority of the shortage. They could start moving back in with each other. But the affordability will continue to get worse and worse, so demand will be less and less for those that can't afford it, which will become a larger and larger portion of the population. And that will likely cause more people to live in the same dwelling again, decreasing the need for quantity further.
So, it's really not a stagnant situation.
Multi year decline ? Goodness - What the heck has she been smoking ? Until corporations stop buying up the housing supply and supply exceeds the demand, there will NOT be a another 2009. People own multiple homes which they use as their vacation homes and also convert them to short term rentals. We may see the cyclical 5-10 % decline seasonal adjustment but there is no sign of any long term drastic declines. Listening to her was enough.
Some market is in decline but in NC and CO, it is going up up up. Like you said, LLC buying up everything and renting them out. Biden doesn't do anything.
Wow, that was painful to watch.
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April Fools
You cant have supply when over 70 percent of mortgages are fixed below 4 percent
Those folks are not selling into a high interest rate environment
You
Gotta get below 5 percent for them to sell
Plain and simple
However the strategy is offer 70 percent of list as buyers are fewer and far between given rates even though supply is low
People couldn't afford the houses anyway. That's the problem. If they could AFFORD it then builders would build more. They aren't building that much more in most places because people can't afford it. And that's likely to get worse, not better.
People think that if the supply increases, prices will fall. No, they won't. There's no where for them to fall because the value of the dollar is getting weaker and weaker over the longer trend with continuously more and more debt spending for military.
Americans think there's a short cut. There isn't. Get the US Government in line and housing will eventually come into a more reasonable range. Allow the constant theft of wealth and it'll just continue to get worse and worse as it has for the last 55+ years.
This lady has no clue what she is talking about!
Propaganda...she's paid to read the script
Where do they find these people? She definitely lied on her resume. Doesn’t know what she is talking about.
I don't comment frequently on youtube videos, but this narrative is ridiculous and totally disconnected from the inventory challenges that are readily apparent to anyone with any exposure to housing data and the market. Where is the data to back up this story she is telling? I and our firm do not see this at all in the data.
In my city San Jose, my zipcode, house listed $1.5 M. Sold last week at $2.05M. Over asking price $500,000.
The simple fact that both illegal and legal immigration out paces home new home construction by and order of maginitude seems to invalidate her argument.
Too many live in crowded places
It's a guarantee, home prices in many areas are already declining.
Absolutely incorrect.
Places even in hellifornia (where people are fleeing at massive rates) still hold a strong median value. 😅
@@76ersALLDAYCalifornia is almost like another country. What I said is a 100% fact for the majority of the country and metros.
@@nickvin7447 where?
Compare homes today to the exact same homes 5 years ago..... even 3 years ago.... they're up 12-22% nationwide.
@@76ersALLDAYD u m b a s s, 3 years ago is not a factor. Look at year over year. Places like CA, and NY prices may be up 5%, but in most metros prices are flat or down a few points.
Look at Boise, Austin, Orlando, Miami, Little Rock, Phoenix, Eugene, Memphis, Owensboro, Myrtle Beach, New Orleans, Provo, Akron, Cleveland, Jackson MS, the list goes on and on. Some of these places have crashed by as much as 15% in a little over a year. Demand is nowhere near what it was.
Where in ohio? Where theres nothing to do but remote work lmao..
not sure how this is possible, especially in good markets, considering the large conglomerate banks will make sure house prices are unaffordable so they can keep scooping up property. this is a new variable thst easnt always present in residential real estate.
Income inequality has been a huge and growing problem for decades.
I’m old enough to see how problems exist and we talk about them, and how problems exist and we ignore them essentially.
For 20 or more years, even the Left didn’t speak on inequality, besides Sanders and his ilk, and now, this issue is popping up more and more. There’s always a reason for that.
But the more important issue is jobs, not tax policy, which is always subordinate to jobs in maintaining a healthy economy for all so to speak.
It appears that the politicians have for now at least given up on the issue of creating good jobs and focused on the discussion point of spreading around the wealth while the opportunities to get wealthy are in decline.
That says a lot.
Again, unequal taxation and military spending are 80% of where this income inequality comes from. You can't be pro egalitarianism and meritocracy and be ok with the US government.
If I lived in Rochester NY your thesis would make sense, but I live in a Sunbelt Bubble State.....so not so much.
Economic investigator Frank G Melbourne Australia is still watching this very informative content cheers Frank 😊
I'm worried for her. She doesn't sound coherent. She doesn't look well.
There's 63 million adult men who are single and only 16 million homes available even if every man purchased a home to start a family you would still have a shortage of homes available so there won't even be such a thing as declining demand with those numbers can you also got to remember that older adults are living longer and keeping their homes which still keeps the price very high to qualify for mortgage
That is completely incorrect. The number of housing units in the United States has been growing year-on-year and in 2022, there were approximately 144 million housing units for an adult population of about 260 million people. What does that mean? You can't have 1 person per 1 housing unit and have enough, but most housing units were not make for 1 adult. And the industry won't build SFR for 1 adult because it's not affordable FOR THE PERSON. There are a ton of apartments managed by and being built by corporations and that is the future of American housing.
Americans did this by allow the US government to spend so much on the military.
@@s.gharavi1614 ok but why is the woman in the video blaming men for a "supposed" decline in housing prices.
As for as you bring the rule second home buyer either institution or individual need to double or triple the registration cost alike singapore, housing price won't fall.
She gave no reasons, except more inventory on the market. Did not even explain how that could happen.
She is only crying for her investments company she owns,a lot young Americans can barley afford apartment..but you are complaining about why house value is dropping.
Hmm. The math does not add up. She starts of saying 90% of the homes are owned by over 40 and then goes on to say 30% is owned by 30 and below. Shouldn't it be 10%? It looks like she is lacking confidence. While being in front of TV Camera could do that, this mistake in her stats should be clarified. I am not willing to tryst her stats yet.
Exactly what I thought.... The math wasn't mathing at all ... She was trying to regurgitate what was mentioned to her by some poor analyst who may have used half baked numbers
This is BS. 😂
Rent is sky rocketing, unless she thinks people will be sleeping in their cars, home ownership is STILL the goal for the people who actually matter. 😆
Huh??? We are missing 1 million housing units!
7.2M according to Fannie Mae
I'm not an expert. I"m just a lowly retiree in my 40's, part of my income is houses - I own a whopping 3 townhomes. Prices going down? Ok I'd like to add one. Trouble is - and I know this is now - in a metro area like Kennesaw GA - it seems stuff under 400k is under contract ....one after an other. Flip rehab house? 15 offers in 3 months, can't touch one. Lemme know when the prices go down I could use help to buy one.
Unfortunately building has slowed during high interest rates. So inventory has slowed also. Home prices will remain unaffordable indefinitely. Take a look at Australia 🇦🇺 home prices. It makes America 🇺🇸 look attractive.
Would my property tax go down
No
@@enhancedutility266 yeah I kinda figured. I'm good for a shake down every year.
That analysis seems a little far-fetched
No houses being built and she think population will collapse or smth??
Professional speaker how many ams and uhs
Thanks for this news 🤔😢😢🙏
Recommend raising rates 1%.
Young men are not "Choosing" to be at home. They can't afford anything else. Rent in my city of Napa is $1900 for a 1 bedroom apartment in a bad neighborhood. Or I can live in the straight ghettos of Vallejo for 1400.
90% of homes owned by 60 yo
70% of homes owned by 50 yo
40% of homes owned by 40 yo
.....that is a total of 200% of home ownership.....
I think the data is off....
Many homeowners buy more than one home and rent out the additional properties bought.....I see the market of housing cooling during winter months and becoming a hot market in the warmer months....in California
You've got the percentages backwards and adding all the percentages to get 100 is not correct in this instance.
@@TrevorKeenanRalph even so, the point is, TrevorKeenanRalph, the data is wacky, three times ... At least
@user-gg4of8kj6y you're basing that on what? Feelings?
I don't think it's strange that people 40 and older own 90% of homes. How many people in their 20s and 30s have the 20% saved for a $400k home?
More government prints the more home prices get support in dollar terms
not in a systemic event its deflationary for assets
OMG! This is not stating the obvious at all. Housing has a huuuuuuuge runup and of course there might be a correction. How much does she get paid?
We have people sleeping in the streets and the White House is letting people in the country by the thousands every day and this lady thinks demand for housing is going to go down. I’m going to respectfully disagree…
I’m not sure what either one of these means for the housing market neither one of them are buying houses lol
@@chrisw8663You can have up to six people on a mortgage I've seen it happen so he's not far off that's what foreigners do when they buy a home in the United States they group up to buy the house and wants the lonel is paid off they move on to the next home
@@chrisw8663 I’m not sure what u don’t understand? If there’s more demand for anything the price goes up
she sure knows a lot about young men....
Demand will always be there
no one wants to sell their house. people would rather making straight cash from airbnb
America's monopoly game is officially over.....
Oh my hell, who can even understand what they are talking about.
Extremely u likely. There are multiple easy solutions to the housing crisis, our issue is leadership and nothing else.
Should have decline in prices. Multiple Listing Real Estate Services have been lying about inventories to get higher commissions, hence the redfin, opendoor, and realtors lawsuit billions in settlements.
The price of insurance and taxes, I feel sorry all the people who live on a fixed income.. the old American dream of being strapped and never having enough, why would anyone want this, take the same money and invest in something that will not depreciate
Lol what is this math
Housing prices will keep going up! Buy now! Don't buy now, housing prices will plummet! The interest rate will stay the same! The interest rate will be going up! Interest rates coming! Glad I'm staying informed with multiple news sources...
Banks are too stupid. They have nerds who sit behind desk and don’t lend. Banks lend to people who don’t need money.
Straight outta kindergarten :D
Was painful to watch ……
Prime candidate for Toastmasters .... you really need to work on it, honey.
From a very very smart
Economist
Greedy Acehole for the past +20yrs have increased the homes to unaffordable and unacceptable rates ONLY the Wealthy can afford.
Now if this Country Increased wages like they increase every F'n' thing else including the salaries of Corporate individuals but can't do the same for its employees
This country wouldn't be facing the Situation that We are in today
And
It's NOT exclusive to Brown Skin People but
Caucasoid men and women are facing the same thing.
And
More so are Hispanic families.
It's NOT pretty
Wages during the 70's matched that of house prices
Greed is the cause
😔🇺🇸
First time home buyers age 25-24. Interesting.
2 weeks later "hey get a second mortgage and blow the money on crap you don't need"
Ugh. Ugh. Ugh. Ugh. Practice this prior to delivering live on TV please.
Nobody took this lady seriously
wtf
It’s all just guesses.
Dont blame men
She um er is wrong again um. It will be years until um supply catches up with uh demand um.
lol
That’s really mean dude
@@wizeguy2603 thanks 🥰
No. The last couple of years, most people that I know buying homes are the ones paying cash. They're not gonna sell with a loss. They don't need to.
Blame the woke workplaces for so many single men not being able to get promoted.
Wut? That was the most convoluted explanation I’ve heard in a long time. We have all been made dumber by it.
She's very smart. You're just dumb because you cannot think.
@@KK-pm7udif every single man bought a home it would still be a shortage of homes for the rest at 47 million
Not gonna happen. There are so many first time buyers waiting in the wings for rates to drop. And most can't compete with investment firms paying cash for as many single family homes as they can buy to turn around and rent out. Ban foreign investors and large investment groups from buying up homes and land and you fix the housing crisis. Let them build apartments, but the signel family homes should be for family's to buy.
Rates dropping floods the market with inventory. Prices go down, the end.
@@nickvin7447Inventory that will be bought off just like the start of the pandemic? Not gonna happen. Too many potential buyers, still not enough housing.
@@055BIGTHUNDERThat is one of the biggest myths in the history of the economy. Rates dropping will send a flood of sellers to the market that are dying to sell right now but cannot. If you think otherwise, you don't make money in the real estate market.
Always blaming men
I would have no problem with my sons living at home with me. Why is that a problem? Sure beats getting married and having children.
0:54 All this age group analytics is bs. What about 10 million immigrants that have entered the nation? More will enter in next decade. Where do you think they are going to live? Most desirable state is CA, because of lovely ennviromentalists and crazy regulatory issues builders will never be able to catch up to demand
Fat chance.
Nope...only in your dreams
Almost preposterous. She’s not in command of the facts. Numbers are easy. Reality isn’t.
😂😂😂
We still have lowest supplies, don't know from where these analysts come.
They need to limit corporations buying single family homes
90% owned by people over 40, 74% by people over 50, then 56% by people over 60… got it….smallest % owned by people under 30.. well DUH! So many of them still live home with their parents or have only been out of college what, 6 years or so? And they should own houses while many of them are paying off student loans! Additionally, many don’t want the responsibility according to most I talk to. I think this video makes zero sense when put it all together…. Yes, houses get expensive, have you looked at rent lately??
Boomers need to build up the next generation instead of shitting on everything and everyone.
???
How are they going to sell the house if Beavis is still sleeping on the couch?
Translation = supply may be stickier in response to demographics than in the past = don’t bet the house (pun intended) on the long secular fall iin house prices.
Ok bye
Says the only analyst ever to say this. She is on the top of the mountain with that one
Her mind is a mess!!!
Your wishful thoughts 😅
She has problem expressing herself. Does she have a medical condition?
How in the world did you get hired for your job? You can’t stop stumbling over simple words I presume you are reading.
This woman makes no sense and cant get to the point
She is difficult to follow, she’s all over the place, and needs a public speaking class. Uh
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