Housing: What Fed rate hikes mean for the real estate and rental markets

#Housing #fed
Marcus & Millichap CEO Hessam Nadji joins Yahoo Finance Live's Rachelle Akuffo to talk about the outlook on the real estate market, housing sales growth, anticipating the Fed's interest rate hikes for renting and homebuying, and the most sought after real estate markets.
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[@ericagilvin1859]

We worked for five years to own a home, but prices got crazy and we cannot afford the mortgage payment. Heartbreaking for me; good news for others. A fixer upper is over 300k.

[@elizabethboothe2774]

It may be a good time to wait for the interest rate increases to set in.

[@robertlambert1786]

I bought my first rental recently and still yet to grab my head around the real estate market coming from a background of aerospace engineering. have around $110k in balance. not enough for the 25% down i need for a choice property mortgage. so it's lying around doing nothing in a savings account. don't really wanna get my hands dirty due to my job so I am thinking of buying and flipping or stocks.. maybe REITs

[@joshh6078]

Thinking of it as a small business is a good way to look at it. A lot of my coworkers are similar to you, with degrees in management / engineers / comp sci. A few of them have purchased houses and then moved away. Because our field simply just moves around a lot. Even last month, someone took a higher paying job at Facebook and now has to sell their house, which he's trying to do remotely. my take will be to try something called algorithmic trading. it's a hands off approach to investing in stocks and can get substantially more profitable than RE if you do it right and it's a trending wave now

[@robertlambert1786]

@@joshh6078 interesting. how does that work?

[@joshh6078]

@@robertlambert1786 it's about translating someone else's trades into your own account. trick is knowing who to mirror. i've had bad luck doing it with some etoro traders and stayed in the red. these days I've stuck with Josephine Guevara Laporte. she seems to know what she's doing seeing as my account has done some ten percent in growth monthly. been with her for over two years now and have not seen any reason to complain. would highly recommend her to you

[@jimcolsby8465]

You really don't sound like you have the drive to do all that it takes in RE. i will go with the algo trading guy. it's quite popular these days for most people who cannot get into the nitty and gritty of the various markets owing to full time jobs

[@robertlambert1786]

@@joshh6078 I am interested in this. what is Josephine's fee structure like and is there a minimum amount required to use her services

[@arodriguez2707]

What's happening is the we've allowed investment companies to buy all our inventory.

[@jesse_-]

Investment companies don’t pay as much as people. I am selling my home soon, and investment companies don’t pay as well.

[@arodriguez2707]

@@jesse_- ever situation is different, when you say investment company I hope you mean a wall street fund like a REIT not some Jo Blow investment guy. We know Wall Street funds have been buying up inventory since 2012 when Fannie offered then foreclosures, this has escalated since then. These companies are putting more demand into the mkt and that increases prices, this is basic common knowledge.

[@jesse_-]

@@arodriguez2707 wish I knew which places are paying top dollar, because Zillow, black rock, and all the other big companies are not offering as much on my home. Private buyers paying cash seem to winning the bids in Massachusetts.

[@arodriguez2707]

@@jesse_- I'm in South Florida, prices here are stupid, but we've also had a lot of Mortgage Fraud.

[@jd1671]

Limit investment and foreign real estate home purchasing. Homes should not be an investment commodity. I’m not asking for elimination, just some rules. People don’t really want to be home renters. This ceo is wrong and only has his interest in mind.

[@kikitaberrios8071]

True! I am disgustet with USA goberment, why they dont do anything about this.

[@haydar378]

Buy before you priced out

[@GlobalPenguin2012]

This dude is definitely not very objective

[@kwaishiu6460]

Everything nice and handy dandy until Everything is not, that's how financial reporting is now, like watching weather report 🙄

[@BrandonClark-StocksPassports]

Life is like that Life is fine until it isn't. That is how the world works Plan accordingly. No guarantees in this world and no one owes you anything

[@analienfromouterspace]

Too many big houses that will fit over 6 people with large useless yards. The pricing also irrational too in some areas, Here in Olympia WA, you will need to pray for the Gods to see a single family home under 200k with 1ksqft.

[@ceisarsrepair7958]

This is just an advertisement for an investment company that wants your money

[@vforvendettaMA]

This is a good example of a fundamental flaw of the current system. These people are salivating over the “good future performance” of the apartment investment market because of middle class Americans no longer being able to afford building their own wealth through the major vehicle they have historically been able to do it through - owning a home.

[@elizabethboothe2774]

Much of this is due to corporation buying large numbers of individual houses to flip or rent. If we want to promote home ownership, it would seem worth investigating what allowing this has done to the overall health of the economy.

[@johnkingangimwithiga]

hodl up transitioning from yolo plays to more quantative outlook towards the market just for the sake of keep the profits 📚

[@malcolmjames1161]

Real estate will go up over the long term.

[@AR-rn8ok]

Unless a tight immigration policy or new pandemic shrinks the population.

[@brewswillis7294]

Deep Recession.

[@BrandonClark-StocksPassports]

Wrong

[@FiveBangers]

@@BrandonClark-StocksPassports If the Fed fights inflation they most definitely will cause a recession, which we should of had during the pandemic. If they don't fight it, there will be a recession as prices will be so high that people stop buying leading to lower revenue and layoffs. No way around it bud

[@kutterboy2116]

how many times do you need to blink

[@drbassface]

How many years of these rent increases are sustainable?

[@jesse_-]

Well, part of the issue now is landlords making up for lost rent during the moratoriums. Most of the people that did not pay their rent were perfectly capable of paying, but they refused to, because they could. It screwed everyone that rented. Landlords do need to make up their loses, and now they also have to build in larger reserves in case something like that happens again.

[@drbassface]

@@jesse_- They shouldn’t be screwing a tenant that payed their rent on time for 12 years.

[@shanewooll8654]

@@drbassface they're not trying to screw people. Their rental is an investment for them. If real estate prices increase, rents do too, because rentals are housing too. If they don't increase rents, they're leaving money on the table. Afterall, if buying is too expensive, someone will pay the higher rent.

[@drbassface]

@@shanewooll8654 It’s off balance. Just because people are cashing out of California, NY, Colorado, etc and coming to Florida with buckets of cash…it’s screwing the residents of Florida. Especially those on a fixed income. Those rent increases are unaffordable. Other people haven’t got a dime in increased wages…like musicians. ;)

[@shanewooll8654]

@@drbassface I agree with everything that you replied. My point is that rental prices will follow the purchase prices. I'm not making a philosophical argument, nor am I saying that it's right or wrong. It's simply what happens.

[@kimberlyhill3359]

Great news!

[@callumsangster7280]

*Now should be the best time to buy and hold Cryptocurrency because it will soon come up to a standard rate which enough profits will be granted*

[@chrisgarrick6243]

I'm so happy I just got into bitcoin and I made my first profit

[@Glennyoung-uy2nm]

Generally the world is now aware of bitcoin trade

[@elieva4702]

Yes Investing in bitcoin is good

[@mariamike4159]

I tried so much to trade on my own and also looking for a proffesional to start my trade with

[@rosalieutley5420]

As for me I work with a trusted and sincere broker expert Dr George Louis

[@momos8166]

EXTRM GOOD TIME FOR BUYING ETHERUM AND BITCOIN AND HODL!!!!!!!

[@landmark22]

Market stable for who?

[@es9382]

What do they mean? Two words: Housing crash

[@koblongata]

Rent should be the biggest factor for inflation, even more so than energy prices, could use a bit of correction really

[@honor4thoseb471]

Why would it crash?

[@FiveBangers]

Also good to look at the construction starts within last 2 yrs in your area as supply must increase, but a recession causing job loss and rising mortgage rates will cause headwinds for RE

[@Johnsonsr4]

She’s good👌

[@landmark22]

Never trust Wall Street

[@donelpatterson9036]

29 % Gain Week. ALPP... Alpine 4. U.S. Manuf. Electronics/ Drones/ EV Parts / EV Battery / High tech RCA Batteries

[@endrebagdi6665]

Hope for a recession! It would be fun.

[@socalguy24]

This will not age well....

[@nohopeequalsnofear3242]

Wrong, wrong and wrong. We are crashing.

[@jesse_-]

No crash. There's record low supply, record high demand. People that want to buy homes want a crash, but emotions do not dictate logic.

[@barrycalvert8219]

Thus guy is BS, 6 month behind and this sounds like a yearold video. Things are falling apart and he sounds like all is well

[@shanewooll8654]

Real question... What things are falling apart?

[@PacoRobbins]

And I'm just over here hoping for a crash so that I can actually afford a house.

[@natjason1853]

My life has totally changed since I started with $7,000 and now I make $ 29,450 every 11 days.

[@durgakhopkar3335]

I'm new to investing, how do I do it

[@natjason1853]

@@durgakhopkar3335 I've been profit-oriented ever since i started my first trading with Mrs Renee Lynne Baggay.

[@rosed.vogelsang2989]

after watching so many KZbin tutorial videos about trading I was still making losses until Mrs Renee Lynne Baggay started managing my investments now I make $21,560 weekly. God bless Mrs Renee she has been a blessing to my family.

[@samantharichards7934]

@@rosed.vogelsang2989 I have really heard a lot about her,how can I contact Mrs Renee Lynne Baggay

[@rosed.vogelsang2989]

@@samantharichards7934 Her availability is sure and faster on SMS and wat's.. Apk..

[@nohopeequalsnofear3242]

This guy is needs a reality check. Its worse than 1929

[@cpgone]

More the fed hikes , the more RE tanks. HOWEVER its all local. Some areas are harder hit than others.

[@jesse_-]

Depends on just how much the feds raise the rates. The lenders already raised the rate, anticipating the feds to raise it, so that has already been built in, and home values are still going up.

[@kikitaberrios8071]

Evil guy😈😈😈😈😈

[@junyongpark3606]

연준은 당장 모든 통화정책을 중단하고 금융회사들은 알아서 각자도생해야한다 그게 맞다

[@ShibaSoftware]

He seems incredibly smug as as he states “affordability is becoming an issue, less and less people will be able to afford a home.” For those investing in real estate, consider that your profit is somebody’s loss.

[@mrgmahon]

That's not true. Profit does not equate to be someone else's loss. It's a market seeking balance.

[@shanewooll8654]

@@mrgmahon agreed 👍

[@blueskyloo]

He knows too much to know nothing.

[@michaelc1063]

Crypto going down the drain 😥

[@BrandonClark-StocksPassports]

Not really if you plan to be in crypto for about 15 years or more If your plan was to make a quick buck and get out in 2 years then yes.....you will lose money But that's your fault. You are a gambler...you are not a investor

[@cpgone]

@@BrandonClark-StocksPassports sure , dude , crypto will cure all. Put all your money in BTC NOW

[@jesse_-]

Good time to buy !