The Housing Market Is About To Get More EXPENSIVE

House-buying costs are soaring! With buyers now responsible for covering Realtor fees amidst climbing prices and mortgage rates, the dilemma intensifies: buy now or wait? Dive into my latest video where I tackle the National Association of Realtors and the Department of Justice's recent settlement. Discover its impact on 2024's housing market, and why it could spell trouble for house prices and overall buying expenses. Get READY | Buying A House Is About To Be More EXPENSIVE
⏩ Buy Now or Wait? Should You Buy A House in 2024? - • Do NOT Buy A House
⏩ How to Buy a House in 2024 - • How to Buy a House in ...
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Jeb Smith (huntington beach Realtor/orange county real estate)
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[@JebSmith]

⏩ Buy Now or Wait? Should You Buy A House in 2024? -kzbin.info/www/bejne/rH6mcp6IoZVqapI ⏩ How to Buy a House in 2024 - kzbin.info/www/bejne/poHdfGidr9GCnZo ✅ - Work Directly with My Team (Mortgage and Real Estate Nationwide) - www.jebsmith.net/referral 🏠 - First Time Home Buyer Course - bit.ly/4clhsse ✅Subscribe to my local newsletter - bit.ly/48LJJp3

[@bernitup6492]

Thanks Jeb for the information. In short, it just became harder for first time home buyers. Makes me glad I listened to you and Josh in 2021.

[@JebSmith]

Agreed...........appreciate it and thanks for the well wishes!

[@tonynelson6269]

Jeb, thank you for explaining this to the public.

[@JebSmith]

Thanks Tony!

[@raulzavala4758]

Not only are there people on the sidelines, but also big corporations driving prices up. Until the government steps in and stops corporations from buying up entire neighborhoods, the future of homeownership looks grim for many Americans. Do you have a take on that jeb? I see you replying to other comments praising, but nothing when it comes to actual issues in the housing market. Just the same word salad about “supply and demand” in a market where there is less demand from the average American.

[@n0rbakn0rbak38]

For the best possible outcome, we’d first need to see inventories of homes for sale turn considerably higher and that will not happen with high interest rates. Forecasting something that we have never seen is following cookie furtune cookie analysis.

[@alexkrin6249]

Sellers wants more $$$$$$$!

[@JebSmith]

Every seller wants to maximize price..............right?

[@morrival98]

I have lost interest in the housing market because I have accepted that it will probably take 20 years to afford a home again (BIG IF)...I will rent and hope to hit some jackpot someday!

[@JebSmith]

Change your philosophy, Change your life!

[@morrival98]

@@JebSmith My life is amazing...Just stick to housing...I am NOT looking for your advice, here.

[@raulzavala4758]

Crickets after that 🤣 Jeb is such a cuck 🤣

[@alanalew]

Great that you regularly negotiate your sellers agent fee. But I think that is rare. Most of the time the fee is a fixed line item on the agreement forms for sellers and buyers. That's what the lawsuit was about and what the Justice Department is trying to change. But I kinda doubt anything will really change in the end.

[@allthingsdetroit]

They may not want to come down but if no one is buying because they can’t afford it… well it’s basically playing chicken at that point. Something has to give…

[@joeybakula308]

Can you make up a fictitious document on how it will be done now? Maybe even show us a side by side comparison of the way things were before vs now. Love the videos. Thank you 🙏

[@JebSmith]

Not sure I fully understand what you're asking but I'll see what I can come up with.

[@joeybakula308]

@@JebSmith the way the commission is going to be paid. Like the breakdown sheet you were talking about showing customers what things are going to cost.

[@jonathantaylor6926]

The 10 year about to hit 4.4%. At some point higher rates break housing. CI is still sitting at 3.75% and that is not a win. That is nearly 100% more than the FED's target rate of 2%. There is a good chance we eventually see the 10 year hit 5%+ and mortgage rates in the 8's. If the 10 year hits 6% housing fully implodes as investors sell rentals and roll that capital into bonds. It doesn't make sense to deal with tenants and rentals if bonds will pay you the same money with literally zero effort. And if RE investors start to see price softening while the 10 year is 6% they will absolutely rush to the exits trying to protect that capital. The only thing stopping RE investors from selling now is capital gains taxes especially if they have depreciated the building for years.. 4% on the 10 year isn't enough to justify the tax bill especially if RE prices are flat or slightly up.

[@JebSmith]

We've already seen what happens when rates hit 8%, the housing market stalls but prices stabiliizes............That said, there is chance that you see that again passed on the current trajectory but housing isn't going to break but rather slow to a halt like it did last year.

[@youngone1985]

Agreed, but affordiblity is the banks driving demand. Speculation is the banks driving demand.

[@jordanh4127]

I really enjoy your content! Not beating around the bush and just telling it how you see it. Thanks Jeb!

[@JebSmith]

Your affirmation truly means a lot. Thank you for your support!

[@user-xs9hs9ke5f]

The cost of house will go up because only Investor is running business after covid and middle class americans cant compete with them.

[@MSALL-co8bf]

I hate you are RIGHT ✅️

[@jayc4715]

Why not?

[@user-xs9hs9ke5f]

@@jayc4715 you tell me

[@AS-kw5hd]

Why do buyers agents think they can not show a house because he’s not happy with the commission ? If the buyer wants to see it, he should go see it.

[@bauttiet.h.u.g.5900]

Are buyer's agents supposed to work for free?

[@davidcaldwell6927]

I agree

[@wreckim]

Jeb is right on here. I hope people listen to the truth, wisdom, experience, knowledge...etc. On top of it all, the buyer usually needs an agent; the process is arduous, confusing, and at times very frustrating. That was my case with my last home purchase, and we have credit over 800; I thought it would be a breeze....NOT! All I wanted was that escrow to close, and I couldn't sleep knowing investors were waiting for me drop out, and they would come in with cash. My agent settled me down...I honestly thought I'd have a nervous breakdown honestly. I didn't care one bit about saving 3% on $700K....This home, two years later is worth almost $1M...and I knew that was my last chance. On top of this, your agent is going to protect you, if she's good, from fake renovations, hidden costs etc...by requiring inspections etc..

[@n0rbakn0rbak38]

You are very lucky if you didn't care about saving 21k . It is doubtful that the majority of people are like you. That's why the national realtor association settle with $418, 000,000

[@wreckim]

@@n0rbakn0rbak38 My dad wanted to buy a $50K house back in 1976 here in Ventura county, and my mom wanted the better value--they found one for $34K. That was a big deal back then. Immediately, they discovered the good deal was too small of a home, and they added to the house. Paying basically the same as they would have for the $50k one. That $50k home is now worth $1.2M, and the home that my mom still lives in is worth $700K. My dad was always sore about that decision, and would tell me to get the house you want; that's more important. Respectfully, for me, that's more important than saving money on a home that has lower commissions. I really feel that's what's going to happen, folks are going to make decisions based on commissions...and I'd advice against it.

[@joemomma707]

Man! Shit is crazy here in Cali!! I just put deposit on a 900k home. Thats how much it is with upgrades. Cali makes us get solar. It’s 3,170 sq foot. Backyard isn’t as big as I would like. It’s small actually. Driveway is so small that I’ll have to mod it to fit my raptor comfortably. And the only reason I got to lock this in is because my realtor is well connected with the builder. Builder doesn’t do contingency but they are making this exception for me. Only in Cali, are you paying this much for not that much land, and still lucky that you even get the shot to get it.😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂 Floor plan is insane!!! Just unreal for Cali how big it is.

[@wreckim]

New homes are amazing, but usually with smaller lots. Congratulations, enjoy your home!

[@joemomma707]

@@wreckim thank you!!! 30 feet x 60 feet backyard, all flat. Could be worse. But it does feel tiny coming from 8,000 sq foot yard.

[@MetalMike81]

It is insane! I get the weather and the beach but honestly, prices are inflated and yet the market keeps supporting them because there are buyers willing to go that high for not that much…

[@wreckim]

@@joemomma707 30by60 is pretty good. I used to complain about my small backyard. We bought that small home on a 3k lot, in 2000...we would often complain about the two stories (we wanted a single story as we got older), and the small yard....but it was big enough for a jolly bouncer, or parties etc...and our home was the hub for all families to get together, as we were the only ones with a home and not an apartment. Now we've upgraded, and have the much bigger yard...kids are grown, and man, that little yard has so many good memories. I'm glad we kept that home--my son wants it when he gets married, and honestly those were our best years. Enjoy what you have, it's probably the best thing you did for you and your fam. Peace.

[@joemomma707]

@@MetalMike81 if we wait, we will literally miss out on the opportunity to get the plan we want. For example, if I didn’t have connections, there would be absolutely no way that I would have been able to lock this floor plan in. Everyone wants this plan. It’s the biggest in the entire community and they won’t build a bigger one.

[@AustinF516]

More than 60% of current mortgages have a rate under 4%. Once the unemployment kicks up to even 4.5-5% forced selling will start to happen. Why? These people won't be able to afford to down size. They will become renters. Buying demand won't be able to keep up with this new supply due to affordability. This will drive prices down.

[@ShameenYakubu]

Silly idea. People under 4% won’t be forced to do anything. They can just stay put 😂

[@JebSmith]

Sure that could happen but understand that most that have rates in the low 3% range will pay less by keeping their home than by renting so it will make no sense to sell. People need shelter more than any other thing, therefore housing is the last thing to go. Another thing to keep in mind is that forced selling is what drives down prices……there is way TOO MUCH equity in housing right now for sellers to sell at a discount, therefore pricing will remain sticky to the upside.

[@McNelisG]

This is wishful thinking. Big corps are buying a large portion of the homes to rent them out. With most people having such low interest rates they are paying far less to own a home than if they were to rent. Especially if they want something equivalent. Good luck waiting for home prices to drop. You will watch them go up while sitting on the sidelines.

[@AustinF516]

If the people who have a low interest rate start losing their jobs. They will have no choice but to sell since they will not qualify for another home if they miss even a single mortgage payment! Downsizing will be nearly impossible for these folks as their buying power will be cut by over 30% just based on the interest rates alone! That's not even factoring in the individual household income problem since one of them Is out of a job. In the GFC we saw a peak shrinking of GDP of about 4.5%. Today deficit spending by the government alone accounts for over 7% of real GDP. Forget about the private sector jobs. If more than a marginal percent of the bloated government deficit spending jobs get cut, there will be serious problems. I don't think you realize how thin the ice is that this economy is on right now.

[@AustinF516]

@McNelisG you can read my prior comment to address your point. People said the same thing in 06-07. Then we bought homes at huge discounts in 2011, 12, 13

[@mikeca98]

Don't pay a buyer's agent commission. Watch your house will sit on the market like they do in Europe, especially when this bubble finally bursts.

[@JebSmith]

When is the burst happening?

[@Jack-pd4ps]

I’m seeing more homes in my neighborhood showing up for sale but at a higher price. They are going under contract within a month.

[@JebSmith]

which area?

[@yourdad4465]

So with the house I’m currently in bought at 155 done multiple updates and thinking of landscaping and fencing to finish things up , live in Texas in the panhandle . My questions are , should we do upgrades to yard that might cost 10k ? Or should we sit and wait for prices to go down along with interest rates ? Or just leave house as is and wait ?

[@JebSmith]

I don't see a world where both prices and rates decrease...........I'd recommend talking to a real estate professional in your area to see what they think about the upgrades and how it may or may not help value.

[@-John-Doe-]

It’s gotta be worth at least 10 million bro. You know what you’ve got. Everyone else buy buy buy you’ll never own a home and die alone if you don’t buy right now. It’s a guaranteed lottery and you’re all missing out if you don’t buy right now.

[@abc123fhdi]

My house price went up $100k in the past year. great if you're a homeowner I guess except that HELOC interest rate is high so maybe if I sell it and cash out

[@JebSmith]

Then do what? By selling you'll be paying more for the next home likely at a higher rate.

[@abc123fhdi]

@@JebSmith if I sell at todays price I can buy another home at the same price I sell and have no loan, property taxes would be grandfathered at the old rate.

[@Rocko1II]

Prices are going down 20% in New home construction and price cuts in existing homes as well with homes on market over 30 days...so....as jobs continue to erode and 401k withdrawals dry up? Plus rents going down and investors selling. So... unfortunately as jobs erode and air BNB sellers increase down.

[@PurpleFlorence-du5ke]

How do you see the market of short term rentals?

[@JebSmith]

You're not serious, right? Where are you getting your data?

[@user-zk6fc3dw9e]

Let me guess, you watch a lot of crash bro content?

[@bernardwade8096]

Bruh I'm seeing price reductions the biggest one was 400k them prices going down

[@JebSmith]

Sounds like it was 400k overpriced.

[@AS-kw5hd]

I would adjust my price a little lower , with the thinking that it would sell faster.

[@hectoravila6944]

You won't, you think you will, until you realize how much you're going to pay in closing costs.

[@AS-kw5hd]

@@hectoravila6944 I’ve sold four homes. Yes, I would.

[@bauttiet.h.u.g.5900]

Maybe they'll be more ppl like you but how do you think buyers will pay their agents, assuming they will have one?

[@McCarthy911]

They already did and keep dropping

[@kevinbarraza5821]

What about interest rates? Should I wait to buy for that reason alone? I can afford a house in my City but unsure if I should wait on interest

[@Jack-pd4ps]

Waiting isn’t a good idea. Take what you can afford while you still can afford it. A lot of people who can’t afford stuff now were the same ones who decided to wait a few years ago when they had the money and income.

[@bauttiet.h.u.g.5900]

It depends, do you think there will be more buyers ready to buy the home you want when the rates go down? If you can afford to buy now, will you still be able to buy later when it's more affordable for everyone else?

[@kkp4297]

hahaahaha jokes on them, they thought the NAR lawsuit would reduce prices

[@JebSmith]

It may at some point but I don't see it happening in the near term.

[@roddyrod583]

Commissions are in reality fixed.

[@JebSmith]

Not at all, definitely negotiable and even more so going forward.

[@-John-Doe-]

My swamp is worth at least 10 million. Right guys? Right?

[@JebSmith]

The value of a property is influenced by so many factors - location, size, condition, local market, and yes, even if it's a swamp! But hey, who knows? Maybe that swamp has unbeatable views and unique wildlife that could command a premium price.

[@dwbarcl]

It’s really sad that the normal person is priced out of the market.

[@kkp4297]

this whole lawsuit was a fucking scam

[@user-jw2cf9ip2u]

What about increase of unemployment? 👀

[@bauttiet.h.u.g.5900]

What exactly are you trying to get at? 🤔

[@JebSmith]

doesn't look like unemployment is increasing according to jobs numbers.

[@johnfromnewjerseyusa1369]

But if everyone *believes* that prices will go down, then that will *force* prices to go down. Because Buyers will say "that's too much." "We're not buying at that high price. Bye bye." And so Sellers will have to accept less. If they want an actual Sale. So... Real Estate KZbinrs need to mobilize with a Unified Message: Tell everyone that prices "won't" go down. To change that belief. And keep prices up. Oh, darn! *I just explained why RE KZbinrs are all frantically telling their audiences that prices "won't" go down.* It's really getting old. Hearing the same *Unified Message* from RE KZbinrs over and over and over. As they try to keep prices up. Good luck with that.

[@JebSmith]

if that were true pricing would already be lower..........just because someone wants something to happen doesn't mean it will. Case in point is housing over the last 3 years. Supply and demand drives housing, NOTHING else!

[@lyricalmaven]

What lol

[@johnfromnewjerseyusa1369]

@@JebSmith Supply & Demand are different than *predictions.*

[@bradwhitt6768]

OK boomer. Mr. realtor here is trying to tell people prices will stay elevated. Who the fuck is going to buy mr know it all?

[@JebSmith]

Prices have and will stay elavated in areas where supply continues to exceed demand which is most of the US. Sorry!

[@Ed_Okin]

@jebsmith Really appreciate the excellent videos. I have a buyer’s agent I am working with who has been so helpful, and when I finally find the right home I will gladly pay that commission, because of the great value that agent will add to the process. Real estate professionals, such as yourself, who are ethical, forthright, and generous to share information with those who are not even your clients deserve to be well compensated. I am obviously not a real estate professional, but have tremendous regarding respect for those of you who help individuals and families buy and sell in a very complex process. 😊

[@JebSmith]

Appreciate that...........Thank you.

[@JohnJohnCrusher]

If a seller doesn't lower his ask by 3%... some other seller will. And that home will sell while the other will linger on the market.