Let’s discuss The 2022 Housing Market, Rent Increases, The Federal Reserve, and Future Appreciation throughout real estate prices – Enjoy! Add me on Instagram: GPStephan
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INTEREST RATES:
Robert Shiller was quoted as saying: “There is not a tight fit at all between the two: high mortgage rates do not translate automatically into low home prices” – and then, he backed it up with this chart, here:
https://cdn.theatlantic.com/media/mt/business/assets_c/2011/07/interest%20rates%20and%20home%20prices%20shiller-thumb-550×376-56453.png
As you can see, even despite interest rates being increased…and, subsequently lowered…home prices continued to move higher…almost as though it ignored every conventional piece of advice that it SHOULD make a difference. As for WHY this happens, it was explained that increasing mortgage rates USUALLY occur due to improving economic conditions or rising inflation expectations….as a result, OTHER factors in the economy that generally accompany those rising interest rates usually prevent prices from crashing down.
Another study also seconds this, while confirming that “it’s hard to see any correlation for rising rates causing lower prices” – HOWEVER – it DOES appear that this is a FACTOR to price affordability, in addition to: Housing supply, The Economy, Lending guidelines, Population changes, New construction, and Home affordability.
NEW MORTGAGE OPTIONS
Beginning NOW – Fannie Mae and Freddie Mac INCREASED their loan sizes by 18%, resulting in a maximum loan of $1 MILLION DOLLARS throughout over 100 high cost of living areas. On the one hand, this gives buyers more room to purchase a home in these current conditions…and given how quickly prices have been rising, the new loan limits would simply “BUMP UP” to match where the market is selling.
But, on the other hand…”some housing experts say the expected jump in loan limits raises questions about the appropriate role of the government in housing… and whether taxpayers should effectively backstop sky-high housing prices, when Fannie and Freddie’s market share is already rising.”
RISING RENTS:
It’s common that RENTAL PRICES tend to lag HOUSING VALUES by as much as several years, since – when you sign a lease – you typically lock yourself into a scheduled price, during which – your rent stays the same. However, 1 to 2 years LATER – once that term is up – the landlord is free to raise rents, sometimes to market value, which is why we don’t often see rent increases until much, much later…or, in this case, TODAY.
For renters…if you’re worried about prices increasing…NOW would be a good time to negotiate with your landlord to lock in a longer lease term, or – consider seeing other options in the area to make sure you’re getting a fair price. Ultimately, the burden is going to fall on you to make sure you’re not getting ripped off…so, a little research absolutely goes a long way.
If you’re looking to buy a home – do your best to shop around, make yourself as strong of a buyer as possible, lock in a 30-year mortgage at the lowest rate you can find, and then…be patient.
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All the way from South Africa, we love your content Graham! I also sent you an email to your business email. I’m trying to get your attention!
Did he just say what’s up GRAHAM, it’s GUYS here ?!?!?!? In the intro? 😂🤣🤔
I don’t really see a good reason to get a new house. Rents are 50% lower than mortgage and I don’t plan to live forever in the and city.
Damn, those hand gestures are getting more and more outta control LOL. Scale it back dude, we already watching your vid.
Love the title” dont buy homes” meanwhile me living in the Netherlands… Buying a home? Is that even possible haha
Whats up Graham it’s guys here.
Greatest cleaner shrimp pic of all time
This whole covid thing has seemed to mess up the whole economy. We should have never shutdown the economy. And enforced all these restrictions. All of which has attributed to the lower labor, inflation, and the rise of material costs. Now we’re paying for it..
What are young people supposed to do in America today? Work full time, take home 1500 a month… After bills maybe 400 left to find a place to live… it’s impossible. Why doesn’t the government do anything? Do they want young people to be homeless and suicidal?
It’s the same everywhere, depressing af
Some cheaper countries will welcome highly qualified and educated US workers. And some Americans will happily go.
Thank you for the video Graham!
Kevin sold everything. Graham is selling a property. The world is ending.. (lol jk)
Hi mate can you review and share your thoughts on daos and forks? In particular Fino Dao which just launched and have very high, almost incredible APY, thanks.
Why not selling it and buy bitcoin and 10x in 10 years ?
My wife she I are really struggling on deciding what to do currently. We are looking to buy another home right now, and turn our current home into our first rental but prices are so high.
You’re flailing.
None of his reasons included MBS purchases by the Fed?! Come on. Without the Fed buying $1.2T in 2010, the housing markets in the US would not have recovered as it did. Then they cranked up buying in March, 2020 to $40B/mo. This guy, and every RE cheerleader, avoids accepting the proper classification of RE as future-financed, heavily subsidized industry. Without big mama Fed, RE is toast.
Remember…. as a noted economist stated so eloquently, _”A housing ‘recovery’ is falling prices to dramatically lower and more affordable levels by definition.”_
He’s right.
*Austin, TX Housing Prices Crater 19% YOY As Subprime Mortgage Implosion Accelerates Across Texas*
*Austin, TX Housing Prices Crater 19% YOY As Subprime Mortgage Implosion Accelerates Across Texas*
That 500K house a year ago cost is $2054 a month. That same house is now worth 575K and would cost $2745 a month. Wow!!
It is NOT popping this year. Not to mention the gas prices are higher which means more people are going to buy bigger homes, etc. I LOVE this because everything you said was 100% spot on. I am a broker in Colorado. It is ONLY going to get worse and the sales are going to get higher and bidding wars are still going on in what is supposed to be an almost dead time. Buy first….sell after you purchase. Smart planning. Dont get caught up in bidding wars. 🙂
This administration has been TERRIBLE.
My rent is renewing at a 35% price increase. Going from $2200 to $3000 … South Florida market
By “selling” and moving money to “buy” in Nevada, curious why not 1031 exchange?
What happened to the tenant of 10 years? Are they buying the house?
Ikr, can’t believe people are happy he’s doing this.
@Holly yeah I really wish he’d address it. I would really hope Graham had made a deal or what not with the tenant. If not, this is very unfortunate news.
I don’t think graham is gunna be invited to jason and brett’s parties anymore after that thumbnail
I fixed it. Turned it into a non-profit organization. Now im awaiting funding. Ill have housing paid for, for all. Rent free, mortgage free, and not relying on tax dollars. You will know who i am soon enough.
Landlord: makes tenant live through big renovations and then decides to haul that long term tenant’s ass out of there once the renovations are finished.
YouTube Audience: 👍
My wife and I moved this past summer. We found the home we’ve always wanted. The market is probably a bit inflated, but we felt we had to go for it.
If the deal’s right, the deal’s right. Congratulations!
The housing aspect of real estate is just as much or more important than the financial investment aspect.
I think if you do your math and can afford it then Congrats market burst no problem you buy a house to live not thinking on selling maybe not for a couple of year so yes congrats on your dream home
It’s guys here 💀💀💀
First dislike 👎 😁😈 jk
World Economic Forum “you will own nothing and be happy” agenda 2030
you should try doing your intro more backwards like a record being played backwards
I’m currently stuck in June my one bedroom apartment goes from 1400 to 1950 in the mean time I’ve been house hunting but with no luck due to ridiculous overpriced homes even ones made in the 80s. I might have to move to a more rural area for a longer commute to go to work.
Dont do it. Unless you can remote work. The cities will come back like last time.
@Bot Account the problem is once I get locked to rental agreement I’m screwed unless I fork the cash to break the lease
If Graham doesn’t respond to this comment then he didn’t read it. Prove me wrong.
Outstanding video, thanks for the information.
Wow. 72K for that house sounds like it was free
Thank you for these great videos. They’re packed with information in a fun and entertaining way. Thanks for your hard work. Smash the like button 👊🛎🖲
Interest rates going to the Moon 🌙
Actually huge help. My habitat being prohibitive, moving this year is almost inevitable. Thanks.
*Camarillo, CA Housing Prices Crater 15% YOY As A Flurry Of Mortgage Defaults Blanket Southern California*
Since you bought Shiba Inu I suggest a burn channel to help out with the supply
As long as housing prices continue cratering all is well.
*Camarillo, CA Housing Prices Crater 15% YOY As A Flurry Of Mortgage Defaults Blanket Southern California*
I really really hope another bubble burst like 2008-2009, so we new adults can finally afford a place where to live
Stop talking so fast….
Am I the only one who caught this: “What’s up Grams it’s guys here” lol
If you have to rent. Why not try a rent to own option? That is what I am looking to do in the future. Find a financial and mortgage professional in your area that deals with rent to own options.
We’re already at 4.2%
Currently splitting my land and selling my rental based off the same idea.. but buying modular to set on the land split, to continue my rental income without the mortgage..💪
you didn’t mention how companies are buying family homes at an alarming rate and offering up to 50% above the asking price for these properties. These companies raise the rents of these new homes overtime to recoup the costs associated with buying above the asking price. It would be nice if you covered that issue from an unbiased protective. Lots of people are not aware of this issue.
My rent was going to go from 1450 USD to 2150 USD so I had to move. It was just a one year lease.
Sorry. I hope things r better for u now.
If I had chosen to stay at my same apartment complex in Atlanta, I would have went from 1.3k a month (September 2020) to nearly 2k a month(nov 2021).
Hoping the housing market does crash this year. Prices are overinflated.
Not a genius here, but I don’t think the graph at 3:46 says what you claim it says.
I believe < that the inflation is already priced in crypto market since the end of last year. These manipulative rats are always 2 steps ahead of everybody because they are market makers. I hope I’m wrong and they won’t keep dumping it on retail investors as always. Those who hold the longest will profit the most, I trade and hold profits keep up the great work! and also Randy Douglas has been doing a great job reviewing all chart, trade and techniques on BTC which has enhance the growth of my portfolio to 20 BTC lately......
‘What’s up Graham, it’s guys here!’ Hehehe
Devaluation of this fiat currency. Audit the fed.
Large firms like Black Rock are buying the land right from under us. They’re offering over bid price and leasing/renting them out. Essentially leading us to the phrase “you will own nothing, and be happy”.
That 40% rent hike segment was appreciated. Gotta remember who’s putting these numbers out and what percentages can do to perception. Love your work!
Does a broken faucet and a plumber justify a 40% rental increase? My rent from 1462 to 1975. That’s a lot of new faucets.
Rent Is literally 50% more where I am so not debunked, I don’t trust any of these people saying this hot market is going to keep going everything is pointing to a big bubble burst. Once supply chains are unblocked new home construction will rise and supply and demand will level out and home builders will be forced to build which will push supply over demand. Builders are counting on selling fewer houses at higher prices right now once that’s over they will have to start pumping out more houses to compensate and don’t forget the taxes local tax rates will push people out of areas and gentrify everything.
Wasn’t gonna like but the cleaner shrimp won me over, liked.
Vegas? I thought you disliked it here?
I should’ve bought a place in 2020. Everything is highly priced, from rent to groceries to homes
Learn about Australia. Or canada. Their housing markets will become the us market.
@Graham what is your thought on building a house in this market?
Graham can you make a video on IUL investing?
Are you planning a 1031 exchange?
First it was supposed to be forbearance causing a crash, now its supposedly interest rates. Supply is a more powerful fundamental than you can imagine. Look at Australia or canadas housing market for a glimpse into the us future.
Have you realized your intro? You said: „what’s up Grahams it’s guys here…“ 😂😂🙊🤣🤣🤓
US housing will NEVER correct. investment Banks buy houses 0% and rent them out.. they don’t care how much they pay for the property because they still make money… . it’s all about free money given to investment Banks.. thanks for the video nice try..
My rent went up 35%
If the guy who’s always being bullish is finally admitting we’re in for a correction if not a crash you know something’s going on
He never said a correction. He said a slowdown. The sun is hot, a nuclear bomb isnt as hot. See how that works?
@Bot Account ok sure I’m sure he’s selling the property only because if a “slowdown” and all prices that doubled in the last year will just stay that way forever hmmmm ok
Fuq u graham don’t be acting like your fixing water faucets left and right to justify you ridiculous rent increases
Just bought a house in 2021 with a 3.5% rate. Not sure if I should considering refinancing this year if the rate will possibly be increased.
Would Your rather Have a low rate and a high Price , or a Low price and a high rate.
If both had the Same Payment?
I would much rather have the Lower price, because you can refinance when rates drop again in the future. And If you ever want to sell you can without losing your ass
The wisest thing that should be on everyone mind currently should be to invest in different streams of income that doesn’t depend on the govt.Especially with the current economic crisis around the world.this is still a good time to invest in Gold,silver and digital currencies (BTC,ETH…)
Thank you for smashing like button = mantis shrimp, not cleaner shrimp
Where are these numbers coming from? How do you get a $2200 month payment on a 500k home? I am trying to buy and for 340k home and its 2200 a month. I don’t get it. Is it 20% down? Which is 100k? The regular working man trying to buy his first home doesn’t have 100k to just give as a down payment.
nice
0:05 Mr Burns?
“Whats up Graham ? It Is guys here” 🤣🤣🤣 u
heh
Love your videos!!
@Graham Stephan first time commenting and I get highlighted haha I should comment more often 🙂 Really great stuff brother, you’re helping a lot of people!
If your selling Can I ask you why your selling and what is the upside? I’m going to get my real estate license and trying to learn from everyone who has been in this field.
I would like to know now it’s good time to buy a house 🏠?
I know in Brooklyn they are rising 40%
Buying a house now is the worst possible time. Prices will be down by 20% next year.
even a broken clock is right twice a day
1st time buyers, go for the gold from the get-go. I have a home that increased in value substantially. I’d love to move to another part of town but the fees (and stress) involved make it unwise. Realtor fees (x2 – sell, buy) alone are insane.
I don’t think this video is not going to age well.
Dr Evil: Buy more, buy Faster, Buy with other peoples money. Its not important to know why you should buy, but that you just buy more than you can afford! {insert evil laughter} /sarc
eventhough your content is good, I dont appreciate your own disingenuousness in using the same fear mongering techniques that you speak against, in your video titles to get more views. How about being honest ?
I regret selling my first house/duplex so much
I listen last year and not buy, house increases so yes I am buying a house I can afford market crash still ok you buy to live in it not to sell it at least for a couple of years just be carefull overpaying make sure do your math and go for your dream
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So house prices are going up with interest rates, you can no longer afford a house…. rents are going up higher…. what do you do? Get fucked?
OK, I keep asking this and never get an answer, so I assume I missed a video where this ongoing gag started?? He CONSTANTLY starts by saying “What’s up Graham it’s guys here.” What’s up with that?
Thanks!
Thanks for all your knowledge. I’m looking at living in my car since that’s much cheaper.
< Market makers like to do the complete opposite of what retail thinks is gonna happen, sure a fakeout looks possible, but what if that’s exactly what they want us to think. Imagine the big boys run with the money because we are simply too ‘scared’ to buy in because we expect a fakeout. All thanks to Alice Marcella as I have made over 14btc from nov till date. Her trading skills is exceptional.>>..
i like that, how can i meet alice ?.
No, comment sections elsewhere say rents are going up 30% to 50% or more. Tenants are refusing to pay rent.
Awesome breakdown!