This article unfortunately continues to perpetuate the myth of the subprime crisis. As many studies about 2008 and the current bubble revealed, it's first and foremost cheap and easy credit fueling unsustainable high prices. The current bubble started in 2009 when the Fed turned on the liquidity spigot. Since then, the economy (and RE) has experienced several minor tantrums when the Fed unsuccessfully attempted to adjust down that spigot. All the while, housing costs had been outpacing income growth by a wide margin. Today, the economy, and the RE market, are facing a day of reckoning as the Fed can no longer afford to ignore the consequences (high overall consumer prices) of their actions.

What about Dallas market?

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I think a lot of people are putting down way more money.
There were 2 offers yesterday on a home my in laws were interested in one with 50% down and the other with 40% (on a almost 500k home) I don't think people are getting themselves into the same situation as years ago.

We had this happen a lot as we looked last year. I don't know if foreclosures will happen as often.

It's a lot different than 2008. The numbers are all doubled.

Dallas will crash. No way some of these homes that were 400k are suddenly worth 1 mil.

I don’t think you know what you’re talking about. Housing is high, but what’s low right now?

This is a great time to stay invested. One of the best strategies to remain calm and stay invested during periods of volatility is to treat investment contributions like a recurring subscription (dollar-cost averaging). Over the years l invested in several multi-family real estates and stock. That’s the best I did for myself. Lately, discovered crypto now and I feel reposed.

Funny, I am a homeowner in Texas and just want the crash. Because of such a high property tax. This year my house appraised 61% higher. So guess what, please crash, I don't care, I don't want to sell.

DJIA….1930 400 points, 1980 800 pts (100% increase over 50 years), 1981 401k goes into effect with djia at 800 pts., 2022 djia hits 37,000 (4,500% increase over 40 years)….bubble y'all…..mega, mega bubble

at first, i thought the real estate market is going through a hurdle, now i think we are going to be fine

Over the last five years, the market generated an average return above 19%. Even with 15% inflation, you come out with a 4% growth in real returns. On top of that, if you own properties, inflation pumps up your property value a lot which can make borrowing a lot cheaper.

I am going to scare you even more: the percentage of ARMs in relation to all mortgages, has gone from 3% in January, to over 11% now –the last time we saw 11% was in January of 2008. To make things worse, the VA and FHA now allow jumbo loans and credit scores as low as 580. Those loans are essentially subprime. So 20%+ of all outstanding loans will be high-default-risk going forward, and these are getting packaged into MBS. This is like a mini-2007-2008 crisis brewing

Things are worse than I thought. This morning they couldn't even find enough shenanigans to cook the CPI numbers to meet expectations (which was already an insane 8.1%). Seeing less and less real estate never goes down comments as reality (and their 401k) is starting to hit folks in the face.

I live north of San Fran, where many ppl moved to during the pandemic. They jacked up the prices in our area to the point where locals can’t afford houses anymore. I keep hoping that stay-at-home work will go away (I’m back in the office myself) and that these ppl will sell their houses and move back to the city

¡Gracias!

Very informative content. You have lost weight.

Good job!!

Plenty of economists since 2005 talking about how highly leveraged we were.

Too much government spending always leads to more debt and inflation in the long run. There is always an instant boost, like a coke addict getting that instant euphoria. But that high must come down. No one can ride the dragon forever. We all should be living within our means and not trying to keep up with the Joneses.Increase money supply artificially will lead to inflation. You can’t just print money out of thin air and not expect a repercussion.

I and others have been telling you to not get too drunk on the government’s alcohol. No one ever listens to not vote for politicians who will idiotically or nefariously spend your children’s future away. We have told you to not live like an entitled brat. Real estate agents won’t say “Hey, you know you really shouldn’t spend more than 25% of your monthly take home pay on a 15 year mortgage.”

Inflation will eat your lunch. Russia-Ukraine is certainly a factor, but the not the biggest contributor to inflation.

People are artificially propped up, and the housing market reflects this in behavior too.

When panic exists, buy.
When euphoria exists, hold or sell.

I keep waiting for prices to drop in my area (upstate NY), but the prices remain at all time highs. So, the price drops I keep hearing about are not happening in my area yet.

I’m broker and asset manager in NY. Lower Hudson valley only has 1000 sf homes for sale. Population is about 1million….

sounds like Florida is that buble prices on home buying websites of new home are up some 20 to 60k. As someone being a first time home buyer and getting out bidded from out of state migration and or those who sold their homes here. our best bet is Newly built and or Move in ready. I'm currently out of thr market due to APR. If I have to wait 2 years for lower APR and home inflation is down, I'll wait for thr bank for my buck

Market is very hot in bay area. all teck people buying the homes and renting to AirB. there is no way any one can see again 2007 or 2008 Again. simple 2 Bedroom home is 1.5 to 2 million

Washington is like casino, some houses in some areas are up 200% in 2 years. I could not share the link but I can share the address here so see the insanity.
I am amazed these corrupt politicians can pass a bill to send 40 B to Ukraine but they can not pass a bill to prevent hedge funds to buy single family house or come up with extra tax for house flippers if they sell less than 5 years or so. They can fix it or prevent it but they dont care

Question… when this all crashes..would it be smarter to buy a home with intentions to turn it into a rental after 2 years while saving for a home we would live in for 10 years? Or would it be smarter to buy the home you plan on staying in for 10 years first?

What sort of correction are we talking in terms of the housing market and are we talking months or years for this to happen?

THANK YOU FOR YOUR FINANCIAL ADVICE!!! 🙏🙏🙏

reading about people grabbing multi-figures monthly as incomes in investments even in this crazy days in the market, any pointers on how to make substantial progress in earning? would be appreciated.

Recession/Depression is beginning, so many indicators. I suspect massive job loss within the next 6 months. Does not matter how low your mortgage rate is if you do not have 1-2 years of savings to get you through, which most Americans do not. Without QE yet again, which the Fed cannot do this time, plus supply chain destruction, the economy will grind to a halt. Get out of debt and start saving. With all the other global storms brewing, going to be a tough Fall and Winter.

Hey im from NJ and i see houses starting to stay i the market a bit longer now and prices arent as crazy. You think I should continue to wait? The interest just hit5.1

The current political situation in the country is really disturbing, I am confused if i should sell or hold on to my stocks. please i need your honest suggestions on what to do to avoid losses.

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“Why can’t vegas stay out of trouble” one word….Californians 🙄

2008 or 2022 – there is still massive investment speculation + occupancy fraud – DTIs to 56.99 – IF rates keep moving up then something will break – IMO, rates are still not high enough to pop the bubble, rates must move higher than CPI at %8.00 – still too much pent up demand, especially in regions with cold weather – must buy during summer and fall before homes get pulled off market during winter – not a year round buying season like the sun belt

Thank you for your honest ideas. We had lost many chances and we are waiting a miracles. But I always enjoy watching your video with a great hope.

I'm curious what's going to happen when recession hits, the tech work at home companies need to cut their over head and outsource those jobs to cut their expenses to less than half. This is another catalyst

I like the stuff Ray Dalio says about debt. Something like the economy goes up when people are more productive and spending goes up, but it can be artificial because spending can go up with debt for a time but then at some point it needs to be payed back and spending goes down. There are long term and short term debt cycles and he says we are getting ready to end a long term debt cycle.

Yup I agree. Good video. Gonna be bonkers these next year

It's CRAZY in Phoenix!
The amount of building in mid to finished stage is off the hook!
I can totally see a 40% or better decline in this market in the near future.
Thanks again for your down-to-earth content.
Regards.

FYI… A thousand people move to Florida every day. And Florida as I keep saying….is going to see a housing correction at Best!! No crash!! Homes there are for the most part are 40-60 % over market value, especially in Naples, Tampa, Celebration, Delray Beach, Boca Raton and on and on. There is such a demand and no inventory along with so much money and buying power!! People want Florida now!! And they don’t care about price. Some homes are reduced by $5-$10K, that’s a Joke!!! Being they are so overpriced!! But that’s where we are with Florida. Not my wish that’s for sure!!!

I’ve been waiting my realtor told me I should look into a new build that I’m well qualified I could get a deal. Are new builds a bad idea

People also got free food, groceries…. For practically two long years. In NYC, there were lines everywhere and anyone could join it. Add that up $$$ to the stimulus check. People made money by not working too. Now groceries cost double as much for everyone. It's a disgrace!

The housing market has never crashed, and is so manipulated and controlled it can't crash.
Fake news for views.