Are We In a Housing Bubble? (And Will It Burst?!)
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Work with a trusted real estate agent to buy or sell your home in this crazy housing market: bit.ly/3sZJYtb
When you look at median income compared to median home price you canât tell me this is sustainable.
same thing i've been saying. the math doesn't add up
Tourism and investors overseas flooding in đ€đ€
A small percentage of people with money will buy up all the houses and land. And everyone else will be renters with no dream to even afford a house. Happened in many European countries and now itâs coming here
Correct, the increases in median income do not support the increases in home prices. Add to that, rates are at historical lows and once they go up, housing prices will go down. As soon as the Gov. stops pumping huge amounts of $ into the system, prices will drop.
The median buyer won't be able to buy, there will be fewer people able to purchase but there are enough people with money who are willing to be landlords or own 2nd or 3rd homes
Houses are too expensive right now. If I sold my house right now and tried to move back into my exact same neighborhood, I could never afford it.
We're in the same boat. We could never afford our neighbourhood now days.
Same here, we want to go bigger but anything we make in profit would be overpayment for a new home. đ€ŠđŸââïž
@@brianal7143 I'm in the exact same situation in Raleigh, NC.
We are in a bubble.
Same
When we were settling probate for my inlawâs 600 acre estate the attorney gave us some great advice about selling the property. He saidâ you can make money anytime but you canât make property .â We kept the farm.
I wish I had that much land Iâd be camping, hunting and shooting stuff lol
Idk where you are, but 600 acres of mostly tillable ground in Iowa is millions in the plural. Nice.
@@rickm6076 Ohio
Now consider this. If your progeny are not squared away, you will have given away a certain lifestyle while you were alive. I am sure you love your children, but be very careful about the decision. Now consider this...... The Queen and her lands are secure, so long as she can afford the taxes i.e. bread and circuses. Ensure your progeny can cover the taxes, regardless of currency resets, etc.... make sure they are diversified.
@@youKnowWho3311 Good advice!
Unfortunately now we have financial institutions who are buying up houses so the average worker can no longer afford a home đ„Ž
I didn't know that. Where can I learn about this?
AND educational institutions too!!
@@fadedmonk1864 The Hill covers it on their video "The Next Housing CRISIS Is Here And The Villains Are Exactly Who You'd Expect." Basically, pension funds are buying houses in cash so it's very hard for people to compete. It's really good for those looking to sell, but not those looking to buy.
This sociopath named Ramsey is nothing but a mouth piece for the Banks. Who pays for his show? It can't be very profitable so who is financing it.
@@josephcarreon2341 Lol in that video, she says âIndividual Investorsâ are buying up a ton of properties, but financial institutions actually make up less than 20% of that. She wasnât exactly wrong, just kinda misleading
How does he keep a straight face and say itâs not a bubble?! Those with an interest in property will never talk it down, And the more insane the bubble becomes, the more imperative it is not to spook anybody.
He completely mocked everyone before 2007 who was saying there was a housing bubble. Mocked them endlessly on his show. He never apologized.
Right now is different than what happen in 2008. Right now thereâs a lot of money going around inflation will only make houses get more expensive
@@robpalac1603 Where is all the money coming from??
@@robpalac1603 history doesnât always repeat itself exactly but it will often echo. We are in a bubble thatâs different than 2000 and 2008 but itâs a bubble none the less.
@@Alwaysbeclosing1774 stimulus
As an expert and somebody who makes millions telling people to invest thereâs no way heâs going to tell people weâre in a bubble..
It's even worse he has a clear conflict of interest here.
He makes a bunch of his money recommending relators.
The fact is historically houses should be worth three quarters of what they cost now, inflation adjusted.
This is an awful time to buy up in housing.
@@kkknotcool Check back in 5-10 years, see how that plays out for you. Interesting.
@@mikehallrealestate it has to do with bank lending rates lol, this is day one principle.
People get mortgages, and if the interest rate is low, everyone gets a house. As soon as that goes up a little, it kills off the majority of people that now can't manage the rate. The fact he didn't mention that at all shows how financially invested he is. It actually makes me reevaluate his whole holier-than-thou/ better than we deserve attitude
We're not in a bubble. We're in a inflationary period.
@@herbiehusker1889 thatâs what I was thinking
I'm on my knees praying that it's a bubble, otherwise I have no chance of ever owning a home in my life at this rate.
I'm right there with you Andy. I'll be sure to pray for the both of us!
Be a truck driver, live in the truck for two years and you can save lots of money, I did that and saved $50k
My home only cost $150k
You can buy a home in a nice neighborhood at affordable prices
@@johnathanpessetti295 that may be a great option for some people, but definitely not great for those with a family.
@@johnathanpessetti295 I'm looking to drop about 300K right now lol.
THIS. I am really trying to figure out how Iâll ever be able to afford a home on my own.
Not a bubble... but the houses in the hood are 700k đ
Wealthy people and extremely wealthy investors/real estate corporations are buying a lot of properties including single family homes. They are making you a forever renter. This IS sustainable for them because your rent more than pays for their low interest rate mortgage. It's capitalism at is finest with a little dusting of arbitrage.
When the hood or projects are going up in value... itâs bad!
It's a bubble. This is far from sustainable. There has not been a SINGLE time in history that a huge surge in value that has not followed economic growth has not have a detrimental effect.
Lol.
It's not a bubble, it's a national emergency. MOST AMERICANS CAN'T AFFORD A HOUSE.
Heâs too invested in the problem to admit this thing relies purely on speculative corporate investment. Itâs not individual buyers buying every house for 100k over asking.
In many cases, it is.
No on spaying $100k over asking. Banks wonât even lend much over appraisal. No people are paying $10,$20,$25k over asking. Iâve yet to see one house sell for $100k over. Thatâs be stupid.
I will not pay over asking price for life not a house.
dave it's not the new value of a house -it's the lower value of your dollar
What standard are you measuring the dollar value against and what timeframe?
Bingo.
@@CrimeDoesNotPay the purchasing power of the dollar measured against its own purchasing power 50 years ago. Keep in mind the US has changed how it defines inflation because they mostly overshoot. Commodity prices can be manipulated & suppressed via derivatives. Combine outsourced labor with the above and that's why tvs and cars are relatively cheap while most people are experiancing a affordable housing crisis.
@@CrimeDoesNotPay
Cpi numbers and m2 money supply.
$DXY only measures against other debased fiat.
Perceived value of your dollar, not the actual value of your dollar. Big difference
If the average home is unaffordable to the average earning person....itâs a bubble!!!
Well stated.
@@jaunt3603 nice! đ
Bingo!
@@jaunt3603 Those are numbers WITHOUT kids. 1K a month in childcare puts a dent in income. And thats average.
Most people on here dont get this, but your numbers are correct. If a bank loans someone making 70K a 300K house... That IS predatory lending by its definition.
Your analysis is wrong. The very reason that housing prices are going up is because there are buyers who CAN afford them. Your views on peopleâs ability to afford homes is incorrect. If people could not afford them, they would not buy them. Yet, here we are, in a bidding war for the ages.
You know, if 30 year mortgages didn't exist, I bet the value of houses would be cut in half.
No doubt...and watch for longer terms to happen...mark my words.
@@dexterm1285 I remember when financing a car for five years was considered crazy long. Now eight years is becoming the norm. So stupid!
Exactly!!!!
Exactly!
And if zero percent or even 3.5 percent down payments didn't exist
Caller: We're looking to relocate to a better school district..
Dave: sell the kids
Sounds lucrative
đđđđđ
Sell your kids and your car
Live on beans and rice
So dumb
đ
I see houses selling 40-100k over asking , almost every one đ you canât tell me thatâs sustainable
That doesnât mean house prices will drop drastically.
I was looking at a few homes in Arizona. Just plain homes with nothing special that are $200k more than they should be.
@@Tennis214
Not looking at any indicators.
Iâm looking at the houses themselves and what they cost three years ago.
The new influx of buyers make more and are willing to pay more on top of banks loaning more. All of that means increase in housing prices in your area. Thatâs very likely here to stay.
@@Tennis214
This is the way I am judging it.
Not a buyer or seller.
Debt free and homes paid off so not concerned about any of that.
Dave literally just described a bubble...
Let a person talk long enough. đ
I am curious too see what happens when interest rates go back up. Itâs way to cheap to borrow money.
@@dr.vanhellsing negative rates incoming! lol
When there are so many people saying there is a bubble, there is no bubble. Bubbles happen when they is groupthink and everyone thinks the same.
@@adventuresinthebay8487 That's what's happening...
This guy is off his rocker.....no bubble? Yes prices go up slowly over time, not 10-15% year over year
Bubbles are tougher to time than you think. For that to work you need to get out at the top and have the guts to get back in at the bottom. A friend got out during a bubble two years too soon, leaving 30% on the table. When prices were down he didn't have the guts to get back in. He is out a lot of money.
You would be insane to buy a home now.
Yup I would never buy a home now. 10%+ increase a year in home price does not sound like any deal or normal. 10%+ every year in increase and we are going to have severe problems 10 years from now with more homeless people.
@@ipenguin3918 why do you say this?
it's 21% actually lol
Everyone is flocking to buy $400k sheds. Yea, I'm going to keep waiting. I'm patient--not desperate.
As long as interest rates are low and printing money like crazy those 400k sheds will become 500k+ sheds soon. Oh and in Florida 400k can still get you a nice place not a shed.
@@markg999 i remember people saying the same thing in 1986 and in 2006. Both times ended badly.
@@Corkfish1 Yea we had a correction but all these years later prices are much higher than then. I do think we will get one again I have no idea when.
@@markg999 well that depends. I can show you plenty of homes people bought in 2006 or 2007 that would still sell for less than what they paid. I bought my house in the real estate bubble of the 1980s and 13 years later it was worth less than I paid.
@@Corkfish1I guess depends on the area...not in my area I can say.
We bought for $140k in December of 2019. Under contract for sale right now at $211k. 50% increase in just over a year. Not a bubble. Okay....
Same but not selling. Bought for 140k in 2019 worth over 200k now and could sell it in a day.
Who bought your house? Someone with 10% down and requested that you pay closing costs?
Someone who paid in cash?
Someone who promised to pay you over the appraisal price?
It is not a bubble because the prices arenât being inflated by predatory mortgages. Buyers today can hold on to the property indefinitely.
You donât lose money until you sell.
In Australia I view the history of housesIâm demolishing, Most were $130k in late 1990âs and now they are $750k +. Itâs pure insanity. My own house built in the 70s cost $850k. He never mentioned the ridiculous tax as interest you would pay if you were to sell and buy again.
The price of many commodities have doubled in a year, inflation from money printing.
@@thomasreedy4751 thatâs what happens in a bubble. People pay more than they should...
Just because no âpredatory mortgagesâ does not mean no bubble. Thereâs different types of bubbles.
Bubble? Nahhh my house going up in value by 20% in 60 days is perfectly normal and stable lol
That doesnt mean youre in a bubble.
Wow really?!? đđ±
@@madzmadeit high tier troll comment
@@madzmadeit Start buying up real estate at these "low" prices then. It might go up 20% more in a few days.
Literally no one:
Dave Ramsey: Paying tens of thousands of dollars over asking price, waving rights to a home inspection, and being rushed into buying a home due to competition is chill.
Huh?
Dave is in the business of real estate so it doesn't surprise me. It's always the people trying to sell you a house or real estate that tell you it's a good "investment"
Predicting a crash isnât possible . Even saying it wonât happen isnât possible. Donât buy what you canât afford .
i remember there was a lot of experts saying the same thing in 07
I agree. We are in a bubble.
@@cpl8857 When you look up what a bubble is in financial terms. It's hard not to call it one.
@@cpl8857 can you be my new hero ? the mainstream is always insane
Ramsey is 100% wrong. We are absolutely in a bubble. Its not 2008 by any stretch but its going to pop.
You mean âexpertsâ
Never take advice about real estate from a real estate agent they are always going to support whatever helps them
Dave Ramsey tulips will never come down!!
I wouldn't think so. I've helped clients before and made sure that they had enough money left over for their next purchase. Past few years I've always been able to net sellers a lot of money.
That's an ignorant generalized statement. I make the clients who listen to my advise money on every transaction. The key is that they listen to my 20 years of experience in real estate. In your defense I actually got my license because I was tired of dealing with some of the agents I came across that did fit your description, but to lump all agents in together is ignorance on your part. Think before you speak or type. It will serve you well.
Then don't buy now and wait until prices have doubled and you can't afford to buy a house. Not our problem
Yes, It's just like asking a waitress at a restruant if the food is good.
Newsom... #1 U-Haul rental agent of the year. đ
He's about to be recalled
This deserves so many more likes but probably over the head of many.
Kudo's my friend
đ đ€Ł đ
Wrong...as CA resident, just as many are moving in as moving out. OTHERWISE HOUSING IN CA WOULD BE DIRT CHEAP!!!
Watch the Big Short to get a perspective on how so many professionals didnât think â07-08 was a bubble until it actually popped
Agreed. Good movie.
Thanks for the tip. I definitely would like to watch it.
Great movie!
The 07 and 08 bubble was based on predatory mortgages that people never had the ability to pay back. Stated loans, pick a pay loans etc... We are not lending like that now so if you are hoping for an 07 and 08 catastrophe it is not happening.
Not the same thing. All loans are qualified and on fixed rates. Go watch the big short again.
Me thinks Dave Ramsey has a booming reality business and would not call out an obvious bubble
When will prices drop? Will they go to 1950 levels? 1980? August 2019? And how do you know this?
@@cynthiagraham4046 2015-2017 levels were sustainable. Salaries don't match basic housing prices.
Yup
@@networth00 See you in 2027 when prices are higher. I am not saying 10% per year but definitely up since there is NO supply or any in the new build pipelineđ
this is a bubble... 1/3 of american's aren't paying for their mortage or rent, that's not sustainable.
Disappointing, I listened to him in the early 2000's. I was caught in the bubble in 2008 with his advice, took me 10 years to get out of that mess. I will sit out and wait for the bubble to burst and then pick up a couple of affordable rentals. I'm sure that's how he expanded his "Properties".
Take ownership of your decisions, don't blame a radio host who doesn't know you.
This time itâs different.
@@adventuresinthebay8487 lol!
@@BigDogBNB if you don't think this time is different you are wrong. Even if the bubble bursts it won't be for the same reasons as 2008. People aren't getting into houses they can't afford this time.
@@zuthorsup Iâm agreeing
"It ain't what you don't know that gets you into trouble. It's what you know for sure that just ain't so." -Mark Twain
Sounds exactly like what Dave is.
The Big Short
@@Motoguy94 Except that he's worth $200 MILLION and has plenty of reasonably priced rental properties where people are paying down his mortgages every single month. When you DO know what you're doing...and have been doing it for decades...and have plenty of margin for error to protect yourself...you're in good shape.
HIS properties are worth more today...but if they go down 20% next year...the renters are still paying for them. So it's not like it's money coming out of his pocket.
Stability, longevity and high incomes and ownerships of assets that get favorable tax treatments end up being a very simple way to continue to thrive even during downturns.
Good investors borrow; Great investors steal.
@@davidc2838 Just by the way, he doesn't do mortgages.
Everyone, stop asking Dave complex economic questions. He's good for personal finance coaching and motivation. That's it. This is not his area of expertise.
I thought he had a lot of experience in real estate.
@@Cookieboy70
Thirty years ago.
Even PHD economists canât tell you when the next recession is going to come.
And you are?
@@beatlesiracundos True, but at least some of them don't try to tell you that it won't come, like Dave is essentially doing.
There's no way that these rising home prices will continue for too long. No way. If they did we would have never had the Great Recession back in 2009.
Exactly
Interest rates never been so low. At some point, rates will have to go up. In the past, rates went down, which is why housing prices always went up, and now rates reached a limit. We never had that near zero interest rates in the past.
The entire nation is moving out of cities....prices now are low!đ There's actually a shortage of houses and those CDC rent holds ain't helping!
Billionaires are allowed to buy homes now. There was a reason we didn't allow or incentivize corporate landlords until 2008. Until we force Blackrock/Invitation Homes to give up their holdings to working America, most people will never get to own a home (and will pay half their income in rent).
He's the second real estate professional I've heard say there isn't a bubble. However the caller did ask about all the upcoming foreclosures which Dave didn't seem to address...?
He only answers questions that furthers his agenda. If they are against what he says, he won't address it directly.
There wonât be a wave of foreclosures. People who are falling behind have the option to sell.
@@davidjohnston3440 Same result, more inventory
Dave's show is now sponsored by the National Association of Realtors.
Dave speaks the truth, you just don't want to hear it.
Please ellaborate your point.
Dave says never get a mortgage & never go in debt. Dave advertises for mortgage companies. Look it up!
@@frankonoodll438 Dave Ramsey says never go in debt. He also says never get a mortgage. He also gets paid to make radio advertising for mortgage companies. Look it up!
@@dennyatkins3842 you would be incorrect, he says to get 15 year mortgage
Well let me tell you Ramsey youâve never been in a pandemic so you donât know whatâs gonna happen
Yup
Exactly. Dave keeps making assumptions. California is far more complex than he wants to accept.
Yup
Did someone say PLANDIMIC???đ±đđ€Łđđ€Łđđ€Ł
@@JosephDickson offcoarse. He is in the real estate. He gets richer when it goes up.
The reason why there is a shortage of houses in terms of putting a house up for sale and itâs gone in 2-3 days is and no one wants to talk about it. People are cashing out their 401kâs because for the first ever during the pandemic you were allowed to take out your contributions along with your companyâs contributions. Once people got wind of it they cashed out like crazy that is how everyone able to buy up these houses!
We all getting filthy rich as we print trillions of new dollars. Soon we will be as rich as the people of Zimbabwe.
my thoughts exactly bro.
Username and PFP checks out
Lol
Mike; are we on a housing bubble?
Dave: sell the car
Rice and beans, Mike. Rice and beans.
Lol!!!
and deliver a pizza baby
rofl
Lol
The long pause before he lies. And then the lady questioning it. đ this is THE WORST advice Iâve heard Dave Ramsey give. Poor caller.
The a lady next to him was like ,,,but Dave I get calls all the time asking this ...lol
Nah. Dave is spot on. We have a housing crises where there are not enough homes.
That's why New apartments buildings are popping up all over the place!
Its not a bubble, if that's what you thought he was lying about? So many people are buying houses, that can afford it. 2008 was a bubble because crazy loans and people couldn't afford it. Too many defaults.
@A M is it called that? Or speculation? :)
The guy is supposed to ask âis the US dollar heading towards a bubble?â
Yeeeesss!
Exactly!!!
Dave is thinking under the assumption that that interest rates will stay low, they wonât...
Anyone who doesnât see the dollar crashing isnât paying attention.
Rates wonât go up until 2024
@Arby 1611 as a wealthy person, why would I give you, someone who doesnt handle money with any sense of smart, any "help" which is code for money?
@Arby 1611 That is absolute nonsense. How selfish someone is and the overall level of morality have nothing to do with whether you are wealthy, poor, or middle class. People characterize the rich as selfish and greedy because it makes them feel better about their own lives.
The dollar crashing is inflationary in which case real estate is a good investment..lol
Iâd like to ask Chris hogans opinion đ
Houses are rediculously getting expensive!!!!.
Yeah here where I live in Canada it's not that bad yet but I feel that it's about to get worse and worse with time!
@@northinvestor where in Canada. I am in Toronto and prices have gone crazy.....
And cars, vacations, day care, auto repair, dinners out at a decent place for a family.
I just bought a house in Jan. It was a 4 month journey. I dont know how people making less can afford it. Im a single mother and blessed but its insane. Most decent homes are 500k -750k + here in CA
Itâs the same way here in texas, our homes in austin are now equal to those in some places in california , condos are now over 200k ..
I saved up for years just like Dave had said 15-20% and am finally ready and after looking at the prices itâs like I didnât save a dime. This is insane a home that I couldâve bought for 100k is now $150k and anything available at my price range is in the hood or a dump somewhere. Looks like itâs just not meant to be for a while
This is why I got a mortgage. Wait it out till I have it all saved and I will never be able to buy.
Got an awesome mortgage though!! 2.125 fixed rate... no closing costs... no pmi.. no required down payment. I am paying it off early as well... I hope to.
Good things come to those who wait.
@@sarahshanahan2222 Sarah got a grea rate but paid double what she should have paid. Good job Sarah.
@@networth00 how on earth did I pay double?
@@sarahshanahan2222 Your type never looks at PRICE, just the note. Most people don't stay 30 years so when you sell the price makes a difference.
"The Big Short" is a great movie
Especially the warning at the end. Looks like they are packaging the same bundles and calling it something else.
âBoomâ
100%.... get the vibe this is whatâs coming
2008 and today are not comparable. The entire mortgage industry, ratings services, wall st. were marketing products no one understood. Can someone point to that product today?
@@Dave-tz9zx banks just continue to do what they always have done just renaming. CDOâs came back in 2015
The interesting thing is that Dave would probably tell most people buying these homes that they are overpaying, based on income and the terms of the loan.
I just watched another segment of his where he says to RELAX and slow down during this home buying frenzy. And he said to never offer more than asking price.
Yes but if you wait you have a chance of never affording a house in an area with Good neighborhood and good schools ever again.
@@neilsmith9066 "ever again.." xD oh no! we MUST buy now! gotta look up those Ramsey recommended realtors right now!
@@neilsmith9066 fomo much? Increased in tax, insurance also if houses cost a lot because of material's you would be paying the same amount for repairs. House can go up all they want but people incomes won't.
@@neilsmith9066 In investing we call this mentality FOMO, it always ends well....
No bubble, says Dave, who's currently trying to sell his house in Franklin for 15 and a half million bucks. Okie dokie :)
I don't follow
@@stilliving me too. How does this prove that there is a bubble?
@@bucktedeal452 sell high and buy low obviously. Why bother selling now if he knows prices will keep going up?
The best way to tell thereâs a bubble is simple: when people who have no financial/real estate/investing background or experience start getting real estate licenses, start investing and talk about giving advice and tell others they are making money, itâs time to run. Just like now.
@@R3nat002 wow correct, why doesnât Dave just hold on and ride the wave, maybe because he knows itâs just a wave
The bigger question is how's it going to work out living with your in-laws lol. Oftentimes that can start off great but ends up coming with a lot of problems.
You don't go overspend 34% on housing because your in-laws are hard to live with.
@@kkknotcool ummm you and I might be blessed with great in laws but when people are desperate, they will do some stupid things
No kidding, that's a lot of good-will that this guy is expecting his in-laws to give up, especially when he already owns a home..
If it doesn't work out with the in laws rent a house for a couple of years until it cools down we are in a bubble Dave Ramsey just can't say that
Mother-law comes to mind!
It's very interesting that what is happening in California is also happening in Toronto's GTA area. Same exact thing, masses of people are selling at ridiculous prices, going out to the surrounding areas and buying up cheaper properties there, pricing out the struggling locals by overpaying 100-225K over asking price. I have seen about 15 home in my neighbouring streets sell for 125-193K over, and this is on smaller & medium size homes, with an avg of about 30 buyers per house. It's total insanity.
This sounds like realtor speak. Simply Query "Real Estate Cycle" and look at the graph. The numbers don't lie.
In my area they are saying housing is overpriced by 21%. There is also concern that this is going to kick out locals because average salary is $46k but average home price is now $375k
When the protections end and the foreclosures start, just like a decade ago, you want to be the guy buying houses.
There actually wont be as many home foreclosures as you think because people got so much unemployment. The houses that come available from foreclosure are not the houses people want
This is all fake, just like 2008. And this is all the same things people said in 2008.
Protections will end when employment rate goes up. So by that time people will have ability to make payments.
So I donât think prices are going to go down.
@@waterkeeper03 how do you know this?
Unemployment is low because everyone has two jobs
Folks aren't leaving California because of the Governor, it's because their cushy jobs are giving them the opportunity to work remotely, why not work from a lower cost of living area?
This is a disservice to the people who really listen to him. Itâs clearly a bubble and his advice will destroy good innocent peoples wealth.
When I think about the future my kids will inherit, I want to break down and cry....
Donât be silly.
True. Capitalism ruins everything.
Thatâs why you teach to to make their own wealth instead
Go where you are treated better đ
drama queen
Itâs not a bubble. As long as the stimulus checks keep coming in and mortgage forebearance ...prices will keep rising.
And so will the price of toilet paper, gas and food. That is called inflation. You got to accept that too.
?????????????????????
Once those are gone, it bursts
seems as if almost by design right?
I truly hope people aren't buying homes based on stimulus check coming in.
At this rate there's no way to buy a house following Ramseys plan of Πyour monthly take home pay.
Increase your income.
@@Stormorsheds1983 If only it were that simple
@@Stormorsheds1983 Wages have stagnated since 1973. Home ownership becomes further out of reach for many every year.
@@Stormorsheds1983 No one ever thought to just increase their income,! Itâs so simple, thank God you commented.
Dave lives in fantasy land
Smells like 2008 around here.
I know right.
2008 was subprime, they have tightened lending standards
@@richardhoffman5769 Things tightened, but look up "relaxed lending." It seems creeping back to how they were.
Difference here could be the printing...while it has been out of control for 30 years, it seems like the pedal is to the metal now with printing dollars. It's hard to tell if we're the weimar republic at this point.
Moral of the story it depends on your area. Here in Florida people are moving here like crazy, not much places to build, and cost to build very high. Even if inventory increased by 10x there will still be enough people to buy. Prices might stabilize but go down in my home state of FL canât see it happening anytime soon.
I said the same thing in 2008.
@@zoobrizz But that was from adjustable rate mortgages. Now we have fixed rate mortgages and most people owe less than their houses are worth.
So in FL u think prices will only go up?
@@slamandgo I think itâs safe to say based on what I said previously and FL is old people paradise lol
@@joseb1011 so people relocating is driving the prices up? Thats not sustainable, it will eventually stop.
With impending inflation I'm getting nervous about the price of rice and beans.
Beans are 25% more expensive where I live than a couple months ago.
Have you lost track of reality? Most people can't buy a house and we're not in a bubble? Wow.
I am not enjoying my property increase in value--property taxes.
Small price to pay compared to the huge increase in value if you sold or needed to sell. You'd make back tens or even hundreds multiple times the tax difference before and after.
Downsize. You can do it. Simple and small can make your life better.
at least you gain equity on your house but I understand that the taxes must be a little problematic
@@M340B58 suppose sheâs looking to settle, and no intentions of selling
In cali, the tax is fixed upon the purchase of the home.
Dave, 30 years as an Agent? Have you ever seen interest rates actually increase? Since the 80's rates have only gone down.
Like Charlie Munger said, "If something can't go forever, it will eventually stop."
To stop going up is different than to start going down.
Yes 2008 happened because everybody was thinking like Dave
@@henraphson1202 â08 was a debt bubble. Not a housing bubble.
@@Jbenderii mortgage backed securities
@@Jbenderii yeah but houses were overpriced thats why they crashed.
If interest go up , price of houses will go down, but your monthly payment will be pretty much the same .
Home affordability is home price and mortgage price . Unless you pay cash !
When the eviction restrictions are lifted, this mother is going to pop
In Cleveland, yes. In austin, no.
Two things to remember, donât believe salesman and realtors.
Why realtors?
@@deander7653 Because their cashflow is in direct correlation with people wanting to buy homes.
@@deander7653 because they get a % cut of the sale? Dave is in real estate, the higher he sells property, the more money he gets in return. simple math.
Realtors are probably worse than a car sales man.
@@kingsk23 i donât see how.
It's tough to turn around after a sale and buy. Inventory is very low in our area right now.
It's a bubble. You know it. He knows it. Everyone knows it.
I don't think everyone knows it. Many people are in blissful ignorance or they just aren't paying attention. The rising prices for homes is delaying people's abilities to buy them, so they continue renting, which drives up the price of rent. Overall every type of housing price is going up but only a few people can see that this is not sustainable and prices will have to drop when they have exceeded people's ability to pay.
@@ryankane9208 I live in NYC I don't see how the rent prices will ever drop; they may stay stable for a few years but thats about it. A mortgage is now cheaper than renting specifically in NYC I can't speak for other states.
You have made a claim with a single bit of support. If you look at the facts, inventory, household formation, rate of new construction building, this goes on for the forseeable future. In other words, the price increases are being driven by reality not by speculation. Hence it's not a bubble. Every time I see the phrase, "everyone knows it", it's a safe bet your dealing with someone who simply doesn't have a clue.
Low interest rates, more able people are buying up houses...supply and demand. Its not a bubble.
Unfortunately, there is a Huuuge bubble all around the world as the gvts printing money like crazy and throwing them at people + superlow mortgage rates, everybody who I know is getting a loan. Not thinking about their income.
If unemployment is so high whoâs buying all these houses
Foreign and out of state investors. People living in these places canât afford homes because you have all the imports driving prices up.
@@TheReapersSon what imports? Are you talking about the Japanese cars that are built in the US or the Ford's, GMs etc that are built in Mexico?
Landlords canât kick renters out and banks canât kick people out thatâs why thereâs not enough house simple
The federal reserve is buying by way of its proxies and MBSâs
Unemployment figures are misleading. Most of that is from unskilled labor who wouldn't be able to afford a house even during the best of times.
I bought my first house in 1988, it was a similar situation. Lots of buyers for every house and they went fast. Big difference is that I paid 10.5% interest.
My ex and I bought our 1st house around the same time, in 86 and we were thrilled the interest rates had gone DOWN to 10% LOL
Yeah, 10% interest on a house that was 75% cheaper than today....
Thing is, as time went on after the 80s, wages went up and interest rates went down. Now, interest rates are on the floor and wages are stagnant. The circumstances are complete polar opposites. Where is price growth going to come from?
@@rakeau those who can afford to buy. Happening here in Toronto.. đ
Yeah 10% on a house that costed 40k making an average of 25k a year, easy especially when refinancing to a lower rate. Compared to a 70k median household income and home prices are 280k for that same house. I know which situation would is better. Houses are now 4x income compared to 1.5x income back then.
When I first bought, I was told, by the hype online âwait there is crash coming, soonâ. I didnât wait, and glad I didnât wait.
When did you buy ?
@@Leavemebae Fall of 2018. Back then ALMOST every YT channel was telling me the sky was falling, instead the sky only got higher.
Same
Same.
Do you have an variable rate on your loans ?
Dave didnât see the 08 bubble come, same thing now. This is a complete repeat
Complete repeat? Doubt it lol. Banks are not handing out loans like theyâre candy for houses like they used to. I honestly wish that were true so I could buy at a low price hahah.
No, you are very wrong.
@@adambev9548 How can the cost of homes continue to increase when the peoples pay is not increasing? Lenders made a mistake and gave out too many loans in 2008 which is why people are less likely to be approved for a loan today. Not only are they less likely to be approved for a loan, but they have to apply for a BIGGER loan since the current cost of homes are so expensive and overpriced. The logic behind the situation is pretty simple... You either get approved for a loan and buy the home then find out it's possibly to expensive so you try selling but can't find a buyer then get the home foreclosed... Or you apply for a mortgage and get denied.
@@billb3414 Iâm asking myself the same question man lol. This is the world we live in now unfortunately. I pray that housing prices will go down, but I just donât see it happening. They may dip a little, but nothing drastic. Iâm not an expert on this subject so I could be wrong. I honestly hope Iâm wrong because then Iâll buy a house in 2-3 years for cheaper than I thought lol.
@@billb3414
The Federal Reserve is the largest home buyer by way of its proxies and theyâre buying with cash fresh off the printer.
BlackRock is a prime example of one of those proxies.
Home values won't go down- you just have to wait until the rate of cash buyers goes down. You can't compete with cash buyers.
And BlackRock is the biggest cash buyer using tax payer money.
They got this cash from refinancing and/or selling their house for the newly inflated value.
I'd also just mention that to those that say house prices can't keep going up. Kindly take a look at Vancouver, Toronto, Tokyo, NYC, SF, Hong Kong...house prices can go higher...much higher.
Doesnât sound like Christy is buying it David! Lol - itâs the âInterestingâ that is a total giveaway
Dave has SOLD lol as he said, he's enjoying all his real estate increasing in value đ
Dave thank you so much! This is what my husband and I needed to hear. We are part of that mass of people leaving NY to NC!
What part, east or western NC?
House prices are skyrocketing, but personal incomes are not keeping up. Also when do you think lumber prices will drop?
Commodity prices will drop when the money supply drops (never)
A year or two once things begin to stabilize.
Key points
Personal incomes dont matter. Its not average income people buying these houses. Its upper middle class and the rich
If you haven't watched the uneducated economist, he has great video on the lumber issues. He doesn't think its from inflation.
Not sure Iâd say this as an overall statement as real estate is local in nature. If we see massive inflation asset value will likely maintain. But uncertainty of forbearance, unemployment and other factors could lead to more inventory hitting the streets. It will be interesting times ahead.
The massive inflation is already here, check out the M1 money supply.
Soon that inflation will find its way into asset prices as it already did with commodities.
My husband and I just sold our tiny city condo and bought an RV lot in Colorado at Chateau Chaparral. We are so happy here itâs absolutely beautiful and surrounded by tons of outdoor activities. We work remotely and now we can step out our door and go kayaking or hiking. There are hot springs just down the road and itâs close to two cool towns. Being debt free and now so close to the outdoors has totally transformed our lives.
Basically hobos
That is kind of what I am thinking of doing too. I need good internet service though for my line of work.
Love it!
Prices are just so high everywhere right now. So much demand and so little supply.
I find that Dave has good content and gives some good advice .. However he was convinced that there was no bubble months before the GFC of 2007-2008. So take this video with a grain of salt.
Proof?
@@Nas_JO Google it Jamie. Facts are out there. Dave was saying no bubble in 2007-2008
"degree in real estate" made me laugh :)
Thank you! Iâm a realtor, and I chuckled myself.
Pay all your debt off including your house, and don't worry about it. Too difficult? I did it by listening to this man and doing what he says to do, and I never paid a penny on any of his programs. I just listened to him on the radio. He knows what he's talking about.
You are right. However, I needed to see some things in print (Baby Steps) before I really understood them.
We didn't follow the Baby Steps in order. Specifically, we paid off the house before setting up the 15% going into 401K. (I always thought I had to go to HR Dept & fill out a bunch of forms in order to set up the 401K payroll deduction. Only later did I figure out how to log in & adjust it any time, on my own.)
I totally agree with Dave. There are pockets in the US for a "Crash" in real estate prices, but places like Arizona are red hot with cash buyers, investors, and baby boomer generation retiring down here in droves usually paying cash from the sale of their house elsewhere.
I live in the Bay area Calif, I was watching some local news yesterday and they mentioned that more than 60% of people moving out were renting. The rented apartments are almost half empty in San Jose/Milpitas/Fremont. Meanwhile, I am planning to buy a house later this year, when I have my 5-6 months of backup money saved :)
Get out of cali it will not get better
Good for you man
Just live in a cardboard box for free, put it right in the best area of town. That's legal there in crazytown.
@@chuckdameron5626 What I don't get is if California is so bad, over priced, over taxed, with higher gas prices and cost of living, why can Californians take their money and pay way more than we are able to in other States? Why is their time worth more than my time? Guys in my field get 4x's more in California. Something doesn't add up. Are we doing it wrong?
@Precious Erving-Frimpong But there are many more average citizens than super rich living in California. Average citizens pay those high taxes and high cost of living as well. But yet they are still able to have enough money and resources to overpay in other States. Why are their wages so high compared to other States? I don't care that they pay more taxes if their net gains are still more than the rest of the nations. Sounds like it would be wise to make more money in California and be able to save up enough to move to any state you want and be able to Jack up their prices cause you have so much disposable income
I sure hope so. When the prices crash it's the perfect time to buy. I bought my house in 2006, then the crash came. In 2017 I sold for double what I paid. Can't wait for the next one!
In Toronto Canada houses have been going 100k-400k over asking price for years now
@I. S Same with USA. In Mexico you won't buy any prime property, only natives are allowed to buy those.
I. S Agree
I think Dave Ramsey does not know what he's talking about on this subject.
Exactly. When something only goes up for 35 years (as per Dave) and grows faster than overall inflation it's more likely it is overvalued than not.
Exactly!!
I hope not. Iâd like to be able to buy a home
Says the non-home owners
Ok sparky real estate only really crashed once ever in the history of life. I feel bad for two type of people. The millennials and the old people that choose not to purchase property when they had the chance.
You're right on the money Dave, Sell now and Buy now... Because up here in NY, I just offered 30k over asking to live In my preferred neighborhood...inventory is sparse...smh
It's been tough competition out here, but thankfully, I close June 1stđđœđ
Sell everything and buy a tent âșïž, then move under an overpass. Save until you can afford your dream trailer. Dream big brother.
So true!
Lol!
đđđđđđ
What should I deduct to figure out the net profit on my house. Interest ? Property taxes ? Inflation .. anything else ? Total spent on utilities ?
Sounds like every real-estate agent right. "NOWS THE TIME TO BUY AND SELL"
Dave didn't address rising mortgage rates nor did he address the gap between average wages and these prices.
Iâm not so sure. Iâm going stay now and fix up now. No worries about prices that way.
@@Faith-un7ns What location would this be? Not many houses going up 1000% in 10 years unless your house was half burnt down and theirs across the street is on the lake.
@@Faith-un7ns Very smart move. Good luck and go with spray foam insulation.
@@Faith-un7ns Crazy times my friend.
Inventory problem for sure.... they build so few houses here in CA. I hope this continues preventing overcrowding.
Correct! The âhousing shortageâ in California canât be solved by legislation that pushes âlow costâ apartments to be built in every neighborhood. Those will fill up, as more poor people pour into the state looking for handouts, and the problem will be worse than it is now. Nice suburban areas will deteriorate into slums, and the people who can leave, will leave. Paradise has already been lost. Only the nice weather will remain. By the way, HR1 will allow any homeowner to build an apartment on their lot = nationwide destruction of the American Dream
Thank You Dave & Christy
We have been in a bubble for awhile and all these people that raced to buy homes because of low rates way over paid for their house. There has been a supply demand issue that has contributed as well. At least in some areas.
Bought a hone Six months ago in SoCal and itâs already jumped 75k in equity.
I love how Dave explains things.