#realestatemarket #realestateinvestors #housingbubble
Yahoo Finance’s Seana Smith and Adam Shapiro spoke with Chris Rupkey, FWDBONDS Chief Economist about rising home prices and housing bubble fears.
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Yes, the USA is in a housing bubble.
Just reading the title, YES.
We’re in an everything bubble and when that bubble pops it’s global anarchy. Fyi i bought my house 4 months ago paid cash $9,900 and there’s a house down the road for $20,000 another is free and going to cost the city $4,000 to tear it down. In the”heartland” of America? Or is that California now?
I hope house price goes down 👎
Yes
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What goes up must come down. Takes a few years.
To bad your I.Q. has never had a chance to go up.
When did that ever happen for long in the real estate market?
This analysis you can get from the local Starbux old goober … the guy that sits in the corner with 5 newspaper at your local starbucks …. Greenspan said about bubble ::::))))))))) r u kiddinnnnn meee maaaan ::)))))
In Philadelphia ,Pa for sale signs everywhere for weeks now. Fools ran out of borrowed money .
It’s philly
Wait ’till the drought and fires scorch the WEST ! I am giddy at the expectation of the plots that will open up. I hope to get a couple acres and build my tiny home for less than 100K
I wish that was the case here in florida. Apartment was listed on saturday, i had viewing scheduled for thursday, just got a call that they received 6 offers, including 2 cash offers. All of the offers from people out of town who didnt even care about going to see it
Not in my neighborhood. Houses sell within weeks. They are great starter homes at reasonable prices, so young home buyers are eager to snatch them up, fueled by city incentives.
No one in their mind would buy a house in P.A. my great grandfather left it and never looked back.
We’re in a bubble that could burst due to external events, nothing happening locally to pop the market.
China game
Of course we are. But it’s more global than ever. Higher indebted citizens and speculators are going to be hit the worst.
Variable interested citizens
Omg there won’t be a housing crash get over it. If you want a house start small in a undesirable area and work your way up. Get married and actually stay together and build savings. Stop being whores, stop spending money on luxury garbage, and stop studying BS degrees.
These are the best analysts that Yahoo Finance has?
They are anyway paid by lobbies. How does it matter. They are going to say all is well, as govt is pumping in packages to keep the prices artificially inflated.
I hear often from people every time one of these videos comes out that once prices drop, say 10%, they are buying in. Problem is prices may dump 50% and take years and years to fully bottom out.
The Japanese housing market finally reached 1990 levels last year. Took them 30 years to recover. Homes and the Stock market are in a massive bubble. When they pop the Depression may begin.
The woman in the ad is very annoying.
I don’t even know you and I am already annoyed and repulsed by you.
Hahahha its media fault .. I saw it coming but thanks to mainstream media making people believe that prices are only gonna keep soaring, even before the pandemic i saw this coming
There was a higher appreciation in 2003 or 2004 ,more than 20% .
Yes in 2004, I sold a property in Soda Springs appraised at $35,000 for $129,000 they had till 2008 to secure water rights, it still sitting undeveloped today.
Yes but the Feds didn’t print all this money into oblivion, lower rates to zero and we didn’t have people quitting their jobs left and right leaving us with super high unemployment numbers. I blame them for making things worse than ever. Jerome Powell and Janet Yellen are a disgrace. No one seems to be talking about this!
Economic rule: real estate inflation destroys all the other industries in the country.
Yep, real estate still isn’t an efficient market. We should be doing things to make it so…
Actually no.
Good analysis, however, one thing I disagree with is the notion that if prices drop, say 10%, people who are employed will continue to pay their mortgage and hold on. We are in a NEW WORLD, the WILD, WILD WEST where there is no moral hazard and there will be PLENTY of STRATEGIC DEFAULTS if there are big value drops.
In Australia, home mortgage loans have a fixed charge against the home. In addition, home loans are recourse loans. So no one willingly defaults because that would mean foreclosure on your home, and providers would hound you into the ground seeking repayment and destroy your credit rating in the process.
Only a dummy would buy an overpriced item. Why is it that corporations are buying tons on homes cash. Why are real estate agents constantly trying to sell u a home.
I bought my home in 2010 for 135k it’s worth 550k now. I don’t t believe it’s worth that much. I wouldn’t sell it it’s paid for. I’m waiting for the interest rates to rise, more foreclosure, the economy to tank so I can buy for a cheap price, and maybe more shut downs because of covid. The government is not going to pass anymore free money bills because we’re at max debt.
Institutional investors being funded by the Central banks to buy up everything for agenda 21 great reset where they own everything while you own nothing is happening. It’s not about the price. Our money is worthless.
I think inflation can be determined by cost of (building a home + marketing + 10 percent profit) = base price. Anything over the base price can be considered a bubble. Like physical bubbles, the water and soap input is only a fraction of the air being encapsulated in it. At some point the water and soap wall is so thin that it can no longer support the air inside. I think China, 52 trillions dollar debts, is that physical force that can prick our housing bubble.
Good lord! Ridiculous lies. Bullshitters!! Don’t buy
This guy is CLUELESS about the job market — there are way more than 10 million unemployed in the US, easily. Federal Pandemic Unemployment was CANCELED by Republicans right as the virus was ramping UP. To suggest we are at Full Employment is Insane.
Stop letting corporations buy residential homes and sit on it.
Stop letting governments collect property taxes it’s theft
I really hope these corporations get the short end of the stick and this crappy market pops…theyll be left with the bag
@Hirday Dhillon what’s next, stop selling to white people?
@Hirday Dhillon sellers only sell to those who can afford it
why?? isnt it how capitalism and private ownership work?
Supply and demand is what drives prices up. So many uneducated people I know think it’s a bubble, that tells me there is no bubble. If we get 6% rates and 12 months supply then i would be worried, until then everything will be fine.
Rising rates will end this speculative housing, and this time there will be no government bailout. Be prepared to lose 25 to 30 percent on your investment.
@RR I think the fed will move quickly near the spring or start of homebuying season.
I don’t think so
@Christopher T I’ve timed a top before in 2004, then it dead cat bounced and we all know what happened with the subprime mortgage fiasco in 2006-2007.
The Fed has no plans to raise rates, not by choice anyway. They will only raise rates if they are forced to and have no choice, but I don’t see rates rising for at least next 3 years or so unless we experience hyperinflation.
Lol comments like this age real fast.
“Accellerated a little”? It would be intrested to see a lot..
Being of age and how to manage the sequence of returns in those early periods is what seems quite scary in the current market. The market is never a loser in a twenty year cycle, but the 2000s decade scenario scares me and could really disrupt my retirement. When you are no longer accumulating but withdrawing its hard to be anything but cautious.
Have you considered Series I bonds as part of your portfolio. You will always get your principal back and get a inflation-protected return. Only drawback is that you can only buy $10,000 per annum. But it can diversify your portfolio.
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Good comment. But God this thread is a cesspool of shills
@O SL
Why not hit her up with a message
If you have to ask, The answer is yes.
home prices are rising faster than incomes once rates go up you’ll see prices plummet people who bought now and within the last year. If they try to sell will be screwed with a home they can’t sell at or more what they got it for. they’ll be underwater. Sure you could hold onto that home but if rates go up it’ll take you awhile to recoup the value in your house at the rate incomes rise. if another economic recession comes in later years then you’ll be holding the bag with no one who wants it.
This is one of the most incoherent things I’ve ever attempted to read.
@Travess Wolford indeed I’m better explaining it in meetings on Zoom lol
@Travess Wolford The reason I didn’t major in English lol.
compare income vs price
Im Shocked that people don’t understand basic 3rd grade math!!
A 1 to 1.5% drop in mortgage interest rates does not justify paying 30-50% more for a home. Wake up people before it’s too late!
Your comprehension skills are worse than Joe Biden’s.
You do understand the math isn’t that simple lmao. It’s an annual interest over 30 years (most likely people getting 30 years). So with a 3.5% APY on a 300k loan, total P+I is around 485k. Drop that to a 2% APY on a 300k and you’re looking at 400k. So that is 85k savings on home purchase over the same period which let’s say home value is 300k. That’s around a 28% savings based on the 1.5% decrease in interest rate or if you want to be more fair 17.5% for (P+I @ 3.5% – P+I @ 2%)/ P+I@ 3.5%
It is not gone cost less in a few years.
Clueless guy
Bankers spread FUD so they can buy it off us and have their “reset”
I am gonna sale my home this week. I can’t take the risk.
Just make sure you sell to an actual family, not an investor.
Definitely a good time to sell
@GoneViral but is it a good time to buy once you sell? Or are you going to fork your proceeds over to some shitty landlord the rest of your life?
I hope you use the money from the sale to buy yourself a brain.
The U.N. told the World, you will own nothing and be happy about it. This will be the Beginning.
People didn’t realize that Schwab meant “You won’t even own a can of soup, and you will be happy.”
Hedge funds are buying up homes. Why don’t they say that. Wall St. fucking America again.
Fake money, artificial money, non earned money is being injected into the market. Government programs are now coming to an end plus we had -200,000 jobs created last month. Business are closing by the day go drive around…..about the businesses not being able to find people that is there excuse or finger point to explain there business not making any money. So many employers are promising so much and delivering so little to there employees. Employers make up numbers/compensation based on a good year 10 years ago and pump up the labor market which at the end is a major disappointment to many employees. If you want to get my opinion there is a fundamental problem right now, employers gotta get there heads out of the clouds and get real.
If a major recession happens I think I will be a big natural disaster on multiple areas in a short period of time
It’s hilarious how people say this is not 2008 again. People put in make their payment in 2008 and they won’t be able to do it in 2022, so there is no difference every time there’s a hardship people will default and leave their homes
NINJA loans were stopped in 2008-9. A recession in other sectors will slow the market, so not 2008.
@everything4004 16 trillion to banks and company
For too big to fail and QE for years . They said 15 trillion in home value lost and 6 million jobs lost it they and a bunch of other stuff on bill to raise Debt ceiling and avert
Default ,for now . 7 days ago oct 7 2021 and
COVID – 19 wiped out the whole world
1,5 % drop in interest rate does indeed justify 30% rising prices. Why…because it’s 1,5 % on a yearly basis. A morgage is mostly for an average of 20 years these days. 1,5×20 is exactly 30%. However a yearly rise of 20% is abnormal but still justified with housingshortages and no good alternatives for your money at this moment.
Tbh he’s not really saying anything informative
No. Banks will just buy more.
Housing prices are so crazy that I saw a $1 million for sale sign on a cardboard shanty in Stockton California! 😀😃😄😁😆😅🤣😂
I saw a $700,000 ghetto house for sale in Palmdale. Good lord!
@Peralta Israel big facts!!! It’s ridiculous
Don’t know how to break to everyone who thinks they’ll be a “bubble burst” but you’re dreaming. There’s no way any major market correction will happen. Prices will continue to climb until interest rates rise and then most likely we’ll see flat growth of prices.
Why don’t you talk about the big real estate companies buying all the houses up for over asking price with cash and renting them out for more than a mortgage would be for a buyer. It is becoming impossible to get into a home now. Something needs to be done about this. I really feel for anyone looking to buy.
I read an article that stated HOA is now starting to incorporate bylaws that prevent Investor companies from purchasing houses within the community.
It’s like the end of the monopoly game when you l ow you will lose more and more each move until you are broke
That does not apply, to most markets.
That is literally the definition of capitalism!!!! Those with the capital get to own everything…. Marx was right about a few things. HE predicted this.
@Regina Young yeah because they can rent to anyone and that could eventually bring the price in the community down. It’s going to be interesting how everything plays out.
People way over paying millennials living beyond their means.
Uh lol 😂
Blah blah blah….
Florida is a big bubble ready to pop. If Desantis doesn’t get a second term, the pop is assured.
Oh yes
I think you should remove your finger before you pop your hemorrhoids.
Yup
Its become a tax hike on homeowners
Pop,pop,pop, popcorn machine🤣
🤔
South Florida has a special ability to do more real estate fraud than an other place in the country, and yes the real estate fraud here is rampant.
Money laundering.
This⬆️ is why people are quitting in masses. Even at 60k most people are priced out. Imagine someone making less than 40k. They want you to go to these crappy jobs but still be homeless.
I think you are right. During this covid crisis, everyone can clearly see how Uber-wealthy became more wealthy ….. it’s enough pressure and stress that will cause millions to give up hope. Give up hope for a better life for them selves. Why work till you become exhausted when you can’t even buy a small house or afford rent in a decent place.
Hopelessness is a nation killer. That’s my opinion anyway.
Govt just printed fiat currency to help the rich and government employees to cover the debt bubble and NPAs. The working class is hopeless now.
We are now at full employment due to the fact what workers are left are not real workers. Higher wages will irritate inflation.
Im suprised wall street hasn’t bought all the houses in Ridgecrest California. Its in the desert and there are many houses that are empty/people that are renting them/people that have mortgages.
It all depends on location, supply and demand.
Gheeze you must have graduated first grade.
So it’s not location, location, location?
Welp ,doesn’t look like I’m buying a house 🏠 this year or the next 😔
*Orlando, FL Housing Prices Crater 17% As Subprime Mortgage Implosion Accelerates*
Consumer: Are we in a house bubble? Yahoo finance: Anything can happen. Btw: this video doesn’t provide any helpful information
I disagree – this video generated revenue for youtube and yahoo, which they would certainly say is helpful information
Anything can happen is actually useful. It means we shouldn’t try to be so sure of a certain outcome and be prepared for all outcomes.
We ain’t.
Is that rhetorical?
Also, The pandemic took out a lot of the labor market and there are a lot of new independent individual business owners.
Idaho will blow up first.
Yup, I’m a 25-year-old cop raised in Florida who can’t afford a house at this point!! Housing is up 100% n most houses that are currently on the market was just sold last year and are being sold again for profit.
Have you considered an outhouse in your mother’s backyard?
In few months a 3 bedrooms in Florida will cost 500k and north of $1 million dollars.
Have you considered night school? Please do.
The goal should be to be able to to ride out the crash via sustainable income to pay the inflated value based loan. After a correction, prices always go up to balance out everything.
There’s 3.8 million less jobs since COVID started
No one buying real estate and holding for 30 years, ever loses money. Unless you buy in Democrat-run areas that are losing population and jobs
Like the anchor guy said: “One good hurricane.” They don’t even use the term “climate change” in this report, and South Floridians have a lot to worry about. It won’t matter if you have a job if your house is flooded constantly, if it blows away in a hurricane, or if it collapses due to salt water intrusion and/or poor maintenance (cf: Surfside).
@JSch917 If you buy a home in a flood zone, without flood insurance, then you’re an idiot. In fact, if you have a mortgage you are required to have said insurance. The same goes if you have a mortgage out in say, San Diego, you are required to have earthquake insurance. Nothing about what I said isn’t true if you are in a flood zone. If your house is a total loss, you take the insurance money and go buy something else (you are still holding real estate). Don’t be obtuse and bring up Surfside, which has nothing to do with what I said. All condo owners who lost their condos were made whole b/c of the insurance they pay for annually
Relieved I bought my place last year. Mortgage, interest, property tax and insurance is far less than market rent. I feel for buyers now. And.. my mortgage is 2.76% fixed 30 yrs.
Homes are up at least 100% over the past decade and wages up 10% hmmmm i wonder ????
Why isn’t the public demanding national housing policies to increase housing stock? Demanding higher wages causes inflation, and unless housing stock is increased the increase in wages goes to taxes and inflated housing and rental price increases.
The housing market is foreign money laundering and Corporate land grabbing. Joe Sixpack better decide if he prefers living in a box, or if a tent is more his style.
Realtor’s are saying that it is a great time to buy.
Buyers are super dumb lol
Very genuine of y’all to wait till the peak to “warn” home buyers. Never ceases to amaze me how everyone sees the bubble after retail points it out.
Where are these millions of jobs ?? Smh.
Summary: I don’t know this, I don’t know that, bababa…
If monopoly and squid game had a baby, that is the reality we are living through.
Can’t buy a house. Gas prices out of control, inflation. This is crazy.
I know you need to make $100K now to be middle class
When you can’t buy a house know you couldn’t buy a house last year either.
@CoreyNitro People just didn’t want to believe this the last 3 decades.
This guy’s beard looks like a baby’s head.
Thats not true. You can call bubble years in advance.
This is the biggest bubble of all time
Makes me wonder, what does it take for this gentleman to say its a bubble?
Selling houses/apartments that he bought as investment?
What goes UP WILL come down…
Why don’t these investors and ultra wealthy buy up abandoned areas and re-do them? Quit taking over lower and mid-lower income level communities. There’s a lot of abandoned property across the country with loads of potential – take that.
Food prices going up when people only have a $few hundred is saving.. sooner or later the people will have to make a decision to abandon their homes because rent is cheaper and no maintenance bills!
Rent is NOT cheaper. Anyone buying a home RIGHT NOW to cashflow will have to charge higher rent in order to make a profit.
Then the individual loses the mortgage tax deduction, which often is worth 10K or more. (At least in California.)
Florida Crocodiles don’t care about your Tax advantages.
I was looking to sell my home after a long divorce paid her off and after losing my parents and three siblings I thought I would sell start somewhere new fresh I looked at other homes before putting mine on the market oh yeah I know I’d get top dollar for my house but I would also be paying top dollar for another one anyone buying better look at the property tax what it’s going to be when you purchase it it’s going to go up up up
I’m in the real estate business and I just tell everyone that Joe Biden isn’t going anywhere so neither are these insane prices. Homes are still cheaper than 2008, with inflation since 2008 I dont see a housing crash till home prices increase at least another $100k..
There will be full housing nuclear fallout. A single family home with a small backyard should not ever be worth $500k When it was built for $50k or less.
@losPeb100 Not always. It would appear my city will tax based on buildings that aren’t even attached. That can include a greenhouse or a storage shed. Not only that some may try to tax you if you have solar panels to. I wish property tax was based on household burden. For example no kids no school tax levies.
I see what you’re saying (and I’m wanting to buy now, unfortunately, too) but the problem is the inflation of our currency. 500k now is worth the same as 50k then because our currency has been so inflated.
@Mark Park I have heard people claim stimulus money increases inflation. I call that not true at all. If we have any inflation in the housing market it is because of ever increasing greed by sellers, middlemen, and taxing entities. The act of shill bidding on houses doesn’t help either. Even innocent bidding to get a house far over what rational thinking would dictate realistic house values is a problem. I personally don’t see money being worth less than before, but instead on some things costing more due to higher wages and expected standards of living. As well as the demand and available supply of goods.
It is not the house it is the land that has the highest value.
@losPeb100 location location location.
It is the lot not the house.
Doesn’t matter if it crashes. Most people buy homes for 7-15+ years.
So what. Ride it out.
If someone is dumb enough to buy a house that’s overpriced, what could anyone do? The real estate agent wins.
FOMO Baby Boomers are buying everything! Hope they get burned! Baaaad
nah…its never a bubble….couldnt be that lmao. Man this is going to be an ugly few years…
Is there a housing bubble?? is the Pope Catholic?? Wages are constantly flat and housing prices are being artificially manipulated by Hedge Funds through Redfin and Zillow.. and Zillow is hemorrhaging money like a river of blood.. will they declare bankruptcy and send thousands of homes they bought up into foreclosure?
People are paying 30% to 40% more then a house is worth ! food and gas prices at record highs its will crash ! tent city’s like the 1920s in year
Yup if you buy a house in the next year your gonna wish you didnt. Zillo stopped buying home’s an there’s a reason
I am happy to pay 6% interest rate on 200K principle amount rather than 3% on 600K because I know the principle amount is forever while the interest rate is changes. With higher housing prices, I end up paying high property taxes as well. It’s a simple math.
People are thinking houses are a good investment, but guess what? Houses are not generating the same rental value as their monthly mortgage value and the investors have to pay the delta from their pocket. Even if they make money in the long run, the continuous bleeding in terms on large monthly mortgage payments, combined with the higher property taxes neutralize the gains (if any at all) in the future. Also, population is shrinking, the housing market is going to collapse for sure. There is no logical reasoning behind such higher home prices. The supply-demand games won’t fool the people forever.
Inflation is the logical reason. The price of homes didn’t go up. They value of the dollars people buy homes with went down.
@Mark Park you said it right. Do you think whatever we lost in dollar value is the loss forever? Meaning does the prices ever come to normal? Or are you suggesting the higher prices are the new normal? Fed printed lots of money and people were spending less due to pandemic, from past few months, things are getting normal and people started spending more again. Question now is are the higher prices a new normal or will there be any decrease in house prices ever. If the high prices are new normal, our salaries must increase accordingly otherwise it is hard to survive for a commoner at these higher prices.
is it a bubble? gee i don’t know
thanks guys
Is the sun a ball of fire we orbit
Just be patient, everyone that are standing by to buy a home. 1 to 2 yrs wait can save you 25% – 40% in saving. Although, the federal government had given $3.5T welfare to the country during the pandemic. The market was corrected and save by the bill out. Remember that interest rate increased near 4% and the housing prices fall flat before the pandemic in 18′ – 19′. If it wasn’t for the bill out during the pandemic the stock market and etc would have been tremendously worst. Now, inflation and the housing market will be the main driver when interest rate have to be increase to combat with inflation.
We ain’t! Stopp watching the video.
20% gain in one year is because many people relocated and moved to another city with big money in hands. 1. Typically west or east coast people leaving the city for a bigger house with a decent lot.
2. Many sold homes due to jobloss or tenants not paying rent this both contributes that many lower income neighborhood and entry level housing is getting bought up.
High demand = higher prices.
Supply can’t shift fast enough