The Housing Bubble Is OVERDUE To POP!

Real estate experts who witnessed the subprime mortgage meltdown, are concerned about today's "unsustainably hot" housing bubble with median home prices skyrocketing from $278,200 in August 2019 to $407,100 in August 2023. They describe this as a classic supply-demand imbalance, indicating a housing bubble similar to the mid-2000s crisis but less speculative due to stricter mortgage lending standards. Despite high mortgage rates, certain cities still see rapid home price gains. Unlike the previous housing bubble, homeowners now have more equity, reducing the risk of widespread underwater mortgages. Experts like warn of a global real estate bubble, while others like Goldman Sachs predict continued price growth. The main issue driving high prices is a significant housing shortage, with experts not expecting a major price crash but acknowledging the need for increased housing supply shortage to address social inequity and market imbalances.
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[@dantedepiro5677]

Investors should not be allowed to gobble up houses and drive the prices up. Everyone needs a place to live. Find something else to invest in besides essential human needs. Wall Street would buy the air and rent it to us if they could. Must every aspect of life be commodified?

[@grandpa5508]

And they should be vetted seriously to prevent money laundering.

[@scubasteve3800]

Its almost like we'll own nothing and we're expected to be happy.

[@stevenchen6752]

Black Rock and Vanguard

[@Itslilmoist]

It’s funny you say this, in March the congress people claimed that they couldn’t afford to get by, they tried to give themselves a raise. Here are some interesting facts about the congress: 1. They all make 3x more than the median American income based off of their salary alone 2. 50% of the congress have a networth of over 1 million, this puts them in the top 5% of the country in terms of wealth 3. The Average age of the 118th congress (current) is 58 years old, the median American age is 38 years old, that is a 20 year disconnect, (think of how much someone 20 years in the future can teach you) 4. The last time the Federal minimum wage was increased was 2009 5. Ever since 2017 the Congress has introduced a “raise the wage act” that would increase federal minimum wage and it never gets passed. Never. 2017,2021,2023. Each time it is Introduced it is quickly pushed to the back burner.

[@ryanwilliams989]

In the USA, individuals living in cars due to partial homelessness result from a complex interplay of factors. High housing costs relative to income, stagnant wages, and income inequality drive this issue. Job loss, weak social support, medical expenses, evictions, and lack of affordable housing also contribute, while systemic problems and inadequate policies further perpetuate the phenomenon.

[@BiancaSherly-qt6sb]

Considering the present situation, diversifying by shifting investments from real estate to financial markets or gold is recommended, despite potential future home price drops. Given prevailing mortgage rates and economic uncertainty, this move is prudent, particularly due to stricter mortgage regulations. Seeking advice from a knowledgeable independent financial advisor is advisable for those seeking guidance.

[@maryHenokNft]

I've remained in touch with a financial analyst since the start of my business. Amid today's dynamic market, the key difficulty is pinpointing the right time to buy or sell when dealing with trending stocks - a seemingly simple task but challenging in reality. My portfolio has grown by more than $600k within just a year, and I've entrusted my advisor with the task of determining entry and exit points.

[@SherlyDavis-ek4qz]

@@maryHenokNft My main concern now is how can we generate more revenue during quantitative times? I can't afford to see my savings crumble to dust.

[@maryHenokNft]

I personally work with *Camille Alicia Garcia* she covers things like investing, insurance, making sure retirement is well funded, going over tax benefits, ways to have a volatility buffer for investment risk. many things like that. Just take a look at her full name on the internet. She is well known so it shouldn't be hard to find her.

[@grandpa5508]

Also, as some said, people coming into localities flooding the housing market with foreign money and there by artificially blowing up prices.

[@mkshffr4936]

I think this market is more manipulated than other bubbles.

[@ronron2312]

In what way is it being manipulated?

[@vespaman101]

@@ronron2312 real estate companies buying a large portion of the inventory compared to previously for one. The amount of rentals, corporate flips, and short term rentals are at all time highs. They control the prices. If enough of them don't give in the prices don't drop. At least not as fast.

[@mkshffr4936]

@@ronron2312 Corporate investors bidding up prices primarily.

[@RH-lg9uc]

I agree, which is why the crash is not likely

[@common_c3nts]

Not at all. Houses under $500k are in demand with multiple offers. Houses over $500k are not selling because the rates.

[@oleeshanorris5343]

Greedy want us to excuse them for being greedy....

[@belkyhernandez8281]

A house in the 400ks would be a bargain comparatively. But even then, median income is between 30kand 60k. So at best, median housing prices should be 180k.

[@gregmasters8558]

Prices ain't coming down. Most immigrants in USA live together in one house all 10 of them to afford house prices. This is the new system.

[@jf8461]

They will. It's called a CRASH @@gregmasters8558

[@janlundberg5924]

Don't forget insurance and taxes. It's brutal.

[@kevinstrong7520]

Funny how people cheerlead no crash as though the housing market has experienced "organic growth." Government intervention on mortgage forbearance, Fed manipulating the yield curve..etc. The bond market is signaling deflation in 2024 and beyond. Talking about equity and saying there's an affordability crisis is like saying "jumbo shrimp." It is amazing how so many people "ignore" all time consumer debt but talk about people having low interest rates and equity. You keep your home with disposable income, not by having a low interest rate or equity. Time will tell!

[@laurayoung9883]

My husband and I bought a manufactured home (in excellent condition) in 2017 with 8 acres. Several family members said we were buying trash, but it has worked out well for us. We are now finishing construction on a new stick built home on our property. My sister and her boys will move into our current manufactured home because rent prices are so unreasonable. We'll also have an independent space for a family friend-more family than friend-also rent from us. We're also making sure we can cover the mortgage on our own in case they ever run into money problems.

[@EmilyGloeggler7984]

There are others who have made the mistake of buying manufactured or tiny houses and admitted that they were subpar and deeply regretted doing so, and understandably upscaled. Bottom line - Do what works best for you individually or for your individual family. What works for one, doesn’t work for others. We don’t need a broadstroke bad solution.

[@aspitofmud6257]

The dream is dead.

[@AJourneyOfYourSoul]

The USA is just catching up with the rest of the world with respect to real estate. Buying a sfh, with respect to affordability, incomes vs cost, is still very cheap in the USA compared to the rest of the world.

[@furthereast6775]

@@user-mo4zf1rl2qvery true, nationwide statistics not useful. That 410k will get you nothing in cali metropolis, a starter house in PAC NW, or two houses in Nebraska.

[@shanerogers9386]

Homes that were 500K in 2020 are now listed for 2.4MM in boca Raton. Of course they have been flipped 2-3 times since 2020. There are plenty available at the new 400 percent increase. Every time they sell, no one ever seems to move in. Guess it’s not a bubble.

[@sarahlysobey2917]

I think the lack of affordable home insurance may be the leading cause to foreclosures. This is especially true for forced escrow mortgages.

[@conceicaod]

If this is true stock like ASPS which own hubzu that deals with foreclosures would be going up.

[@icarussisyphus5201]

We need to have legislation or higher property taxes of 25% on each house >5 properties in state to stop institutional investors by making too expensive to bulk buy homes unless you are a builder. Florida counties could implement this higher tax criteria and force the institutional investors to dump their holdings to lower real estate prices. Nationally, there can be a $20K tax credit for home remodeling so provide a soft landing for homebuilding industry move to a remodeling business structure. This would also allow people to buy older or "less curb appeal" in poor neighborhood houses to update and flip to put these houses on the market. This may lead to revitalization of down ridden neighborhoods.

[@Yupthereitism]

>2 properties

[@loh1870]

There are rules but because our leaders wanted to break them they created loopholes..greed and shortsighted thinking have never worked in history but our leaders think they are special.. or they don't care because they won't be alive 🤷 when the house of cards eventually collapses. 🇺🇸 Goodluck

[@icarussisyphus5201]

@@Yupthereitism I agree to some extent. The reason 5 houses would stay under the 25% higher property taxes is to incentivize mom and pop investors to buy down trodden houses to remodel and flip or rent. You need small investors with the remodeling skills to revitalize communities and put houses that would not sell on the market.

[@GenerationX1984]

​@@loh1870They won't be alive. Exactly why there should be an age limit on how old you can be to run for office. Biden and Trump are both too old. The median age in Congress is 65.3 years. No more old people in government.

[@Landrar]

An outright ban on single family home rentals period.

[@dianneyung111]

My siblings and I, all retierment age, share a large house. From a financial and support standpoint this works out great. The house belonged to our parents and is long paid for. All of our cars are paid for and none of us support kids. Since we are all single and we get along you cannot beat this situation with the amount of disposable income we all have.

[@morganhill2586]

W very much respect.. it sounds like a nightmare.. Please, Enlighten me on not being able to push children forward, IF PROVED to be able to be helped

[@dianneyung111]

​@@morganhill2586 What the heck are you talking about? Your reply makes no sense.

[@wueats9149]

I think he's saying that what would it be if you all had kids to support? Nightmare referring to die old with no generations to pass on?? IDK?? Personally, its awesome that the assets are paid off, but its sad that there will be no next gen to carry on.

[@dirtybastardlittle7485]

You guys are way ahead of the game…multi-generational living will rise in the coming years!

[@eattherich9215]

There is no hard and fast rule that says you help your children or to have children in the first place. We all have choices that don't suit others.

[@bcope8501]

I don’t think this bubble is a bubble. There isn’t enough housing for all the people who want one. Of course it is a catch-22, “affordable housing” vs “available housing” they can’t co-exist with outsize demand.

[@cb5516]

And for builders, there's little incentive to build to increase supply. There's more margin if there's lower inventory.

[@tobyk5149]

You must be too young to have experienced this the last time

[@Peanut-sam-tha-nut]

Look at the history of home appreciation year over year for the last 30 years. Notice that normal home appreciation is between 2-4% per year. Total these last 4 years its been more like 30-60%. The difference in cost between a 400k house and a 500k house 1 year later is staggering and feels unearned. (Now imagine 300k home in 2020 now going for 580k in 2024..... it's a joke).

[@cb5516]

@@Peanut-sam-tha-nut Take almost everything learned before 2008 and throw it away. 2008 was a hard reset and changed housing forever. Housing is now a Wall Street commodity, and prior to 08 wasn't in any real way. What you're witnessing is the extraction of wealth from the lower middle class changing the dynamic between housing and generational wealth for families forever. I saw this coming a long time ago, and it's not going to get better.

[@andy-ti9zf]

raising a family in an apartment seems sad.

[@savinghistory642]

free housing through section 8 is sad. but it is also a choice dictated by other bad choices.

[@Mrooooweee]

Bro, when talking about family living in one home, you're basically describing how we lived for thousands of years until the last 100 or so when some people realized separating everyone is more money in their pockets..

[@jf8461]

You are absolutely right! It is simple math; most people cannot afford these prices (and throw food and gas prices into the mix).

[@ljmac64]

To whole system has to change. We shouldn’t be waiting/hoping for crashes or bubbles bursting to be able to afford a home. What’s clear is doing the way we always have done isn’t working.

[@dawnliphard9591]

We have a ridiculous amount of going on in our area, all(most)of it is apartment complexes with starting rent prices at $1250 plus utilities. Honestly, that is a relatively high amount. I have a full time job and that is close to 50% of my income, which will only go down when I retire. We own,but still it seem very high for the area and locall industry

[@Raziel6523]

@15:44 nothing has to give… Investment firms are going to buy the homes at current prices and rent them. They can afford to… most likely only upper middle class wage earners will be able to afford a home. We are practically there now

[@Iamonepercent]

"You will own nothing and be happy."

[@Shannon_Stamm]

You got that right. The blood of Jesus is enough!😃

[@lizturner9380]

My husband and i have been saying this for the last several years that more and more people will live in homes together for everyone to save and get ahead.

[@James-xf4pc]

We didn't have Airbnb in 2008.

[@somethingsomethingsomethingdar]

lol. Yeah this bubble isn’t a homeowner bubble. It’s an institutional investor bubble. My prediction is that this bubble is going to pop faster than any correction in history. Because while homeowners have a huge incentive to fight to stay in their home and institutional investor has zero incentive. The moment they don’t get their expected ROI they sell and cut their losses. What I am seeing in my area is rental prices plunging due to a TON of new rentals coming into the market and staying vacant. Rents for a single bedroom have dropped from $1700 to $1200 a month and some even lower. Existing apartments are slashing their prices because they cannot charge 15-1700 for an apartment that is 20 years old when a brand new one is listed at that same price. There is an OVER supply now in rentals which in 6 months to 12 months is going to lead to a house rental price collapse. That’s when these institutional investors are going to drop all of their inventory on the housing market as they sell to find “growth” somewhere else. The real scary part is, what happens when that flight coincides with a worldwide economic decline or collapse? Investors lose which means banks lose which means…..a depression. But hey maybe you are right. Maybe a national housing market can support itself on the income of JUST the top 10% of American households. 😂

[@beths9232]

Where area are you in?

[@jc1979af]

I also think a crash in the Air B&B market will also speed things up. Hotels are building more suites in my town. There is nothing exceptional about the town...but the fact that hotel chains are building more on a street that already has 6 hotels means they know something is coming soon that will drive demand. Just like how more apartments are affecting the rental market. More and better hotels will lead to a decline in the air b&bs resulting in investors dumping that inventory too

[@MortgageHowDoI]

Great video with great explanation!

[@kaceykelly7222]

There are some communities/counties that actually require 75% of SFRs to be Owner-Occupied. The other 25% can be rentals and must have owner that lives in the same county. No AirB&Bs (nightly) are allowed in SFR. This works! A home is too important to be "used" by the wealthy and the greedy.

[@jun_1248]

Hi @Kristina, what do you think of Assumable mortgage for a buyer (pros and cons)? Thanks

[@LammyHowl]

Myself, a Millennial, and my dog live with my parents, who are Gen X. So do my younger sister, her husband, and their 2 young children. If we didn't all agree to this, my sister's family and I would be homeless. We live in Washington State. Unless you have access to generational wealth or win the lottery, this trend is only going to continue.

[@savinghistory642]

how many illegals will you take in. you did vote for that, right?

[@criticalthinker9829]

we don’t need another housing cheerleader, we have enough

[@James-xf4pc]

I remember 2007,8,9. I guess a lot of people don't. I'm saving to get in at the bottom.

[@zeroceiling]

This woman has clearly not seen Florida….it is not going to be 2008..it will be worse. Employment figures are being completely obfuscated. If you are layed off…your company is instructed to report you still on the payroll for a period of 3 months after your last day..to alleviate concerns about unemployment…but for many people the wolf is at the door aleardy. This not withstanding, never mind the fact that your home insurance has just gone up by 100%..200% or more…if you are lucky to even get it.

[@robertamaral2349]

Agreed!@@zeroceiling

[@cb5516]

​@@James-xf4pc I saw this coming since 2010. Literally 1/2 the builders went bankrupt in 08, and we've underbuilt ever since. It will not change much because it benefits builders, local communities (taxes), current owners, and investors to keep things the way they are. 08 changed the game forever!

[@masterdecats6418]

@@cb5516More like, in 2008, people lost their houses, corpo investors bought them up. As people tried to recover, corpos forced prices up will equally buying housing to increase their already owned asset prices. They forced supply down, to increase their asset value. It inflates the US gdp so the gov is totally okay with it.

[@RandomJane104]

Like you, I see a future with more people living in multi-family households. The way people in other countries always have. My mother will probably sell her home in the next 6 to 8 years to move in with us. She currently lives alone in a small 3 bedroom house in my hometown. She's in her mid-70's. We will need to sell our 2 bedroom condo and move to a minimum 3 bedroom house to have room for her and a more suitable layout for an elderly person. I just hope the sale of both mortgage free properties will give us enough to do it without taking on a new mortgage.

[@gojiberry5619]

Kristina, FED will not drop rates, unemployment will rise. In the next 2-3 years the home prices will drop 40%

[@cb5516]

I'll take that bet, many, many times over. The influx of investors, both large and small will never allow that to happen. Everything will get gobbled up faster than you could ever imagine. Additionally, building will stop, on a dime. There will be no additional inventory. Affordable housing is done, forever.

[@scottandrews947]

They might. The government has crazy amounts of debt. Higher interest rates makes this debt more expensive. We're entering into an election year. Plus, they've shown themselves to be extremely incompetent/corrupt over the past few years. I think there's a reasonable chance they start to decrease rates in 2024.

[@scottandrews947]

@@cb5516 Agreed. Our system is too corrupt now to ever allow for the kind of living standards we had in the past.

[@gojiberry5619]

@@scottandrews947 they can not lower the rates. Biden's administration will send more stimulus checks to buy more votes. Their goal is to make a hyperinflation to devaluate the currency and then to pay the US national debt. After that will bring the new digital dollar/tokens

[@cb5516]

@@scottandrews947 I don't know if it's too corrupt so much as the perfect storm was created with the 08 crash and recovery. The different entities from builders, to local communities, to banks, to investors, to current homeowners all benefit from keeping housing unattainable.

[@tomjohnston3601]

I appreciate that this video strives to be more balanced rather than most. I would suggest using a 20% down payment for calculations because that's what well prepared buyers should aim for. If one buys with a dp less than 20%, then the bank requires a monthly PMI fee which increases the monthly payment and doesn't benefit the buyer.

[@joshgato7853]

How can you say "Keep going up", when they are going down?

[@nobodynever7884]

There is a huge difference between this crash and 2008. In 2008 people could not afford to pay the mortgage because they lost their job and then their mortgage shot up to unaffordable levels. This time, the mortgage shot up to unaffordable levels first, and then people lost their jobs. Huge difference of course.

[@RH-lg9uc]

This is actually wrong. Those who bought prior to 2022 have very affordable home mortgages. Many other refinanced to cheaper payments. on top of that wall street has close to $1 trillion dollars waiting to buy. This will make year 4 of the housing crash. the prices will like rise again in the spring time like it did last year.

[@costak7679]

I would love to see more FOR SALE BY OWNER homes where a real estate agent is not involved but every seller has it in their mind that they need one. They don't!

[@faerydae29]

Exactly!!! Let’s go back to buying and selling directly with other people. Realtors are horrible middleman’s that are not needed.

[@morganhill2586]

Bc of being able to by MLS agents will be obsolete

[@common_c3nts]

You can't get listed on the MLS without a realtor. Someone needs to make an eBay for houses to be able to get away from realtors.

[@faerydae29]

@@common_c3nts That could be arranged.

[@Justyouraveragegal]

My husband and I have to move in with family soon to save money. I know my mother is excited to have us! No shame about our age either - 40 and 45. We had owned homes before (MA - east coast), but it was very expensive for us then and now our rent is creeping up to the same price as our mortgages we tried to escape! Time to save our money and reorganize by going home to the midwest for awhile. Who knows. Since I'll inherit my mother's house anyway, we may just stay and never have a mortgage or rent payment again.

[@jasonweikert1922]

In the area where I want to go. The houses that sell fast are well priced. And the ones that sit are over priced and they have been lowering the prices. If it is less than 150,000 The sell in 24 hours or less. if it is above they typically sit. Especially the ones over 200,000.

[@rigohurtado8575]

bro 2 bedroom trailers go for 200,000 plus

[@univercle]

I live my dad never left, didnt have a job in the early 2010s so i miss a chance at buying a home. I have over 150k in cash and stocks i would never buy a house right now as i see house prices are 50% to high for me.

[@canyonero2050]

Your videos provide a lot of useful information and truth. Thank you for that. Typically, what you said about owning a home for a minimum of 7 years would be true. As a testament to how over inflated and wonky current prices are I'd share a short story. I bought a house in 2019 and sold it in 2022 (just over 3 years) than I walked away with a 60% profit. When covid hit months after I bought that home, I was terrified the value would be flattened, but thanks to 3 more years of quantitative easing, the value skyrocketed.

[@thomasmorrison3279]

Probably better to rent now. I have a rental property that rents for $3100 per month. The same house would sell for about $600k, and the mortgage would be about $4000 per month. Why not just rent? Equity is only captured when you sell. Also, the $4000 per month does not include repairs, regular maintenance, etc. on top of mortgage and property tax. I know multi-millionaires who rent, because they don't want to deal with repairs. They invest in the stock market and make higher returns than real estate. Over the long term, real estate only increases about 3-4% per year on average over 10 or 20 years.

[@jc1979af]

You say you own both your house and a rental.....but recommend other people rent? They want to buy and own for the same reasons you do. Are you willing to sell your assets to be a renter?

[@TheFredfredburger09]

This housing bubble is designed to continue inflating and never pop.

[@melissahouse3488]

What about the fact that sellers pay both agents for a sale!?! This is also a major conflict. Buyer's should pay their agent, seller should pay theirs. i was not represented fairly by my own agent as a buyer and then i realized why after finding out they were paid from the seller. Total conflict of interest. How come a seller is automatically expected to fund both agents in a sale!?! A process designed for failure!

[@grandpa5508]

You need to add the HOA Fees and insurance to that 2k+ mortgage.

[@heathercontois4501]

Goodness, the house flippers!!....we almost bought a house 7 years ago from flippers, it failed (to us) the home inspection so we pulled out. My husband did some digging after the home inspection also, and guess how much they paid for the house---5K!! They did not do the $$$ of work on that building to warrant the cost. 3 months later we saw it listed for 25K less and they were telling the homebuyer they were going to have to put in the health department mandated septic wetland.

[@hans5821]

Less individualism, more community?There are worse things.

[@AJourneyOfYourSoul]

Lots of American families don’t play well together. People will just have to change, they won’t have a choice.

[@ronron2312]

In 2006-2007 there were over 4,000 homes for in our area, which was about a 20 to 25 month supply. Back then the average sale price of $400k. This year there are ~650 homes for sale, which is only a 4 month supply. The average sale price is currently ~$800k. 🎉

[@DemzWon1]

They raised home values to tax more.

[@hopehowell4338]

NO! Do not get a manufactured home that's the kind without a fountain. Especially if it's on land you don't own. Those houses depreciate faster then a car and the modern ones can't handle the shifting that happens. They fall apart so fast.

[@breannemartin4764]

I know people/ families that have banned together or turned a two story into a duplex to afford the house.

[@markh.6687]

I've seen local investors sub-dividing big houses into apartments.

[@leonaowen9234]

Can you please address is all the ads for title home lock a real thing???

[@mkshffr4936]

Absolutely. I am skeptical but would love to see Kristina's take!

[@ChristopherHayles]

Re: institutional investors They don't own that many homes comparatively. Only 3% of investor owned homes are owned by big wall street companies. Second, the rental market is also declining. Making owning those homes far less lucrative.

[@pleskbruce]

Implosions in real estate are very slow. Sales volume is so low it's really not a valid indicator. Many buyers have been taken out of the market by high rates that disqualified them on income. Bottom line -- pent-up supply probably exceeds pent-up demand. When things change, prices may initially go up but then will go down!

[@Ladybrite1]

I am living in a 3 generation household. We are selling our smaller home and moving to a larger one because we are burning at the seems. Works well for us. I am the granny and am very happy to do my part. I so wish that I had the help when I was working, going to school and had 2 elementary school age kids. I am worth my weight in gold and loving it.

[@justwhistlinpixie]

What you are saying towards the end of the video is exactly what I am doing with my sister. My husband and I are buying a once-in-a-lifetime house right now to give our kids a bigger house to grow up in, and there is a master suite on the far end of the house that she is going to live in. We will share a kitchen, but she is a bit of a recluse so I think it will work out great. I have lived with her in the past so I know we can get along. There is also a great daylight basement that we could convert into a totally private suite for her.

[@shannondavis5728]

It’s so sad that all the experts ,a lot of content creators & our government is not in touch with reality!!!……this debt crisis,price gouging & greedy profit margin run ups is not going to end well!!….not even for wealthy folks!!!!!

[@masterdecats6418]

Don’t think for a moment they aren’t doing this on purpose. They know what they’re doing.

[@travislemley6042]

“You will own nothing and be happy….”

[@savinghistory642]

if you keep voting blue

[@stevo728822]

London has a large minority of international buyers from places like Hong Kong and the Middle East. Some high end properties are simply a place to park money.

[@dianesnyder6061]

I like the idea of families living in larger houses but altogether. The problem is that if you want to have two kitchens, most zoning laws will not allow. that. Also many zoning laws will not allow ADU’s on properties. I think this has to change so that families can come together live under one roof, but have their separate spaces. It really is the most economical way to go.

[@masterdecats6418]

In most other countries, they’ve been doing that. We don’t do this in the US because of racism and hate for the poor.

[@EmilyGloeggler7984]

There are others who have made the mistake of buying manufactured or tiny houses and admitted that they were subpar and deeply regretted doing so, and understandably upscaled. Bottom line - Do what works best for you individually or for your individual family. What works for one, doesn’t work for others. We don’t need a broadstroke bad solution.

[@dadora73]

My rent is $1350.00 for a two bedroom duplex home with one bathroom and carport. 30% of my income for rent should be $1043.00, but pay $307.00 over. For the past three years my rent has only gone up.

[@Maxxmentum]

Um solent green, spot on a deluxe staircase? The family living with you....um..…I don't see unrest there lol 😅

[@scottpickel1282]

My prediction is rates stay relatively high from now on … prices stagnate or relax and ownership changes a bit - while new modular / manufactured / and alt listings increase as zoning laws relax - the future is modular

[@joseCalderon1976]

$410k is a ridiculous price. The median salary cannot afford that house. It's not just the house payment. There's ALWAYS something else that you have to spend on while being a homeowner. I know because I have a mortgage since 2012 ($165k at 3.5% interest). My payment is $1200 per month, and for my base salary at $72k per year, that's about 25% of my take home pay. There's no way I afford a $410k home. Not even with my wife working. 😢. Now a home comparable to mine in 2023, in my area in San Antonio TX is $340k plus!

[@AndersonMarcus-pl9rv]

The whole talk about "reverse" market crash (real estate and stock market) basically argues that we are nowhere near done with inflation and that we might actually experience "hyperinflation" in the near future combined with accelerating poverty levels across the nation or going thru a historical economic depression...those are the extreme conditions that have produced the reverse market crashes in most examples I seen. I personally don't see anything that extreme coming, but who knows.

[@GustavoBosco-mp9te]

It will happen if we stop QT and lower interest rates. we have printed more money than inflation so there is room for things to continue inflating. we need to reduce the money supply and the only way to do that is deflation.

[@JamesNull-et1nz]

And that would be a terrible situation that no one should root for.

[@RuthWard-wz9mn]

With rates climbing like never before in ’23 coupled with uncontrollable inflation, and our own mortgage at now 7.5% what are the best alternatives/strategies for avoiding a crunch and maximize my $600k savings other than moving in to an RV with my two kids and wife.

[@AnthonyWells-dq3ro]

@@RuthWard-wz9mn You are not alone we can no longer afford our mortgage, husband wants us to travel or relocate/I am proposing cashing in, walking away and renting while putting the rest in the stock market.

[@AndersonMarcus-pl9rv]

Consider reallocating from real estate to stocks. Severe recessions offer market buying opportunities with caution, as volatility can yield short-term trading prospects. Not financial advice but it may be wise to invest, as cash isn't ideal in this period. I simply adopted the service of an advisor early 2020 amid covid-outbreak, and so far, I've attained my most measurable financial milestone of over $900k after subsequent investments.

[@urbanbakked3501]

The real problem is those average Americans that have a home are going to lose equity but the key is how much equity will they lose will it be what it should actually be and or the bubble equity...we just need to get home prices down to reality not to this fake prices because taxes and insurance are getting unaffordable also..and seniors can not afford this.

[@savinghistory642]

and i am sitting here like a vulture salivating at the thought. i started my real estate 2000. bought big time during last bubble and will use the money i have made from those 20 houses (all rentals that have been paid for several times over)to add to my holdings. keep living beyond your means so i can scoop it up when you lose it.

[@nspencer257]

My prediction is that rent is going to become more common. I could be wrong, it's just what I see as a possibility. So many say that housing needs to come down because people need a place to live but buying isn't the only way to have a place to live and I fear many will be stuck renting. Although, I hope that doesn't happen. I hate of some government program that they want to start to 'create more affordable rent options'

[@eleonorabartoli2225]

Do you know the percentage of homes that are empty? It seems to me a lot are kept empty on purpose. I think the next tipping point will be the number of homeless people, it has already grown to disturbing levels in just the last few years.

[@LaroonDynasty]

Can’t have people owing more than the house is worth if nobody is buying

[@chhive]

Equity is there when only the home value stays high, what if the home value go down? Would that cause everyone to panic sell their home before it sinks further?

[@already.selected]

Try the prices here in Canada. I live in the most expensive area where a house in the suburbs doesn't sell for under a million. The rental housing is insanely expensive too, a one bedroom basement suite will be around $1500 a month, a hole house would be around $4000 a month. We're lucky boomers who live in a house we paid for years ago. One of our kids has done well, buying an hour drive away from work out in the boonies. The other one can't even afford a new vehicle and has lost housing, he'll be moving in with us in Jan as he can't find anything to rent for the 1100. he was paying.

[@renaelynn6376]

They won't be able to find the loan....

[@momof4121]

I have to disagree that unemployment is would make this bubble pop. People overstretched themselves buying overpriced homes. Remember you are qualified for your home based off of gross not net so you actually don’t qualify for the price they said you can buy but people stretched themselves thin purchasing the past year. Living off of credit cards until they are maxed out push people over the edge. Some will be forced to sell and along with less spending in a way unemployment will rise because consumers will be purchasing less but it won’t be the start of the bubble burst.

[@fgjf1079]

@@amuseherOnly something like 25% of homes are owned mortgage free. The 75% is a large number, and can easily tank the market. Paid off rental properties will also be sold by landlords, as rents have softened in many areas.

[@pickpac1]

Yeah, in Florida, wages and unemployment benefits have not changed in 25 years !

[@Love4puppies]

I am noticing a lot of new construction ftom the mid to end of 2022 that are listed for resale. The problem is they are asking close to what you can get for new construction and the builders are also offering crazy incentives so the payment is less than resale. I wonder if it is property taxes that kicked in, and they did not know you pay taxes on more than the land when it gets assessed or the home insurance went up or they have a job relocation or loss. I don't see how, in the communities that are still building specs and have new builds that are move in ready, they can compete with the builder. It would be more expensive to buy a year old resale than a new build. I think they are trying to cover their cost to sell. But for a buyer it is cheaper to buy new in those communities.

[@AJourneyOfYourSoul]

It is definitely a major issue if you own one of those resells next to new builds. Almost impossible to compete. You have to wait until all the new builds are built and sold. Also, buyers expect your house to be in new condition, like the new builds. It is a very tough situation to be in. This is why I like to own in older neighborhoods with zero new builds close. Buyers have no choice but to take what they can get if they want to live in that location, which is usually very desirable, closer to metro areas etc. You aren’t competing with all the new builds on the outskirts.

[@James-xf4pc]

Isn't this a major " the market is going down" indication? Think about it. A few years back people would buy the first new home in the new neighborhood and 2 years later sell for a handsome profit! I think we're past the peak, and maybe 2-3 years from the bottom. What say you?

[@Love4puppies]

@@James-xf4pc Yes. Now you don't know if buying early in the community and have to deal with construction but get the best price and instant equity or wait until close out and end of year incentives. It is crazy especially in the big master planned communities:)

[@donsergio2406]

My numbers differ from yours: $364K for the median home in the USA, the highest ever at the start of 2024. And the FED is going to lower US treasuries, which will make mortgages lower... Make your bets! (and remember the house always wins 🙂)

[@coreyschneider4041]

$410,000 is so so cheap. That’s Toronto prices 15 years ago lol

[@eddieunlocked2201]

Was thinking the same thing. Here in California it's more like 710k for a starter home 😂

[@teestanmintiendo7842]

look at california. “unaffordability” doesnt seem to place a limit on home values.

[@bradsimpson6667]

It's greedy real-estate agents and an unmanaged market. Our mayor is also an greedy real-estate owner/agent!

[@shannondavis5728]

Dual representation is a conflict of interest clause!!!!!!

[@igotatestimony7092]

Thank you Kristina for always creating GREAT and HONEST content, instead of clickbait stuff...

[@gardenparty3288]

✔

[@candycoatedcyanide3267]

All the new construction I see is for “LEASING” huge complexes. They really don’t want you to buy.

[@warningsigns4526]

Generations used to live and help one another thru life - the tax collectors, controllers want two in debt to tax two instead of one family - get back to helping and living with one another instead of working for a bank and criminal cartel.

[@Chew5219]

The only crash in housing is a crash in affordability, not prices.

[@FoundLamb]

Gfc 2.0 needs a dash (er ocean amount) of unemployment to get us there.

[@fgjf1079]

6:21 there could also be a backlog of sellers who are waiting for rates to go down before they list. This could flood the market with inventory, and cause prices to crash.

[@Yankeegiant2]

Where do those sellers go? To the street? Any supply uptick is absorbed by those same people either upsizing or downsizing.

[@fgjf1079]

@@Yankeegiant2 There are many vacant rentals. Some will rent. Others will move out of the country, especially those who are here on work visas. As soon as mass layoffs come, they will have to go back to their countries, freeing up inventory.

[@mikeh66]

This is "forcing" potential home buyers too.....RENT!!! THINK ABOUT IT!

[@anakarina1011]

There has been large layoffs though and companies say they’re hiring but really aren’t…

[@manduja75]

greed is all greed. There is a time wherein a man ruleth over another to his own hurt.

[@discorabbit]

This was a 20 year plan

[@HughMac]

Nice lady and smart, too, but the title "The Housing Bubble Is OVERDUE To POP!" is misleading since she predicts that home prices are going to continue to rise.

[@KristinaSmallhorn]

It’s still overdue to pop. These prices are unsustainable.

[@anthony-L.A.6946]

@@KristinaSmallhornsustainable for investors.

[@xavierrodriguez1455]

This a debt bubble , credit crisis, and liquidity crisis.

[@joebullwinkle5099]

How about that there is only one agent representing then seller and then buyer relies on the Title company for their side of the paperwork! In this day and age there should be no requirement for a buyer to engage an Agent, people should be able to quite successfully find a home and make a bid through the sellers agent. This works very well in other Western countries.

[@mike7972]

Every realtors channel, in total base their argument why the housing market will not or has not crashed because of supply. No one talks about the demand, If a majority can’t afford these homes and aren’t buying them what’s the numbers for that side. One channel said sales are lower than the Great Depression. If supply dropped by 50% as well as demand doesn’t that eliminate the argument of supply? All reports show slow increases in supply and slow decrease in demand. It would seem that time will be the judge as in 08 it wasn’t till 2012 till we saw a major change. You said it these prices aren’t sustainable so why would a major change in jobs be the only way a crash could happen? Just staying on the current path may break the back of this market.

[@oleeshanorris5343]

Not having my husband in the making whoopie with my dad in next room that's disrespectful and gross

[@Aksteelheader86]

So reluctant to say 2019-2022 was a FOMO run up. Now it’s time to get back to market fundamentals

[@moreanimals6889]

I think people willl organize as squatters and squat their way into home ownership.

[@nspencer257]

My parents are baby boomers and combined have 15 siblings. Out of all those, I think one or two of them sold their house to downsize. Most of them are staying in the same house into old age that they've been in for years, even since I was a kid. Edited to add: we have a 5 bedroom house with kids in a new neighborhood. Both people who moved in on either side of us are older couples, one has grandkids and the other are retired. I was surprised since the houses aren't small!