The Housing Market is NOT like 2008. It's like 1980.

Most people are still convinced that the housing market today is going to end up being a repeat of 2008. The elements needed for that repeat to happen are not present right now. But experts from Bank of America are saying this market sure looks like a repeat of the early 1980’s. This week I talk about the latest article from Fortune.com latest article sharing their latest analysis.
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[@JackieBaker]

Check out this video next: kzbin.info/www/bejne/r16uhZZ7a5akbrM

[@bigwinmedia5100]

While it may not be the same as 2008 it’s different from the 1980’s in that the average mortgage is a much higher percentage of a household’s expenses. It’s unsustainable.

[@rathelmmc3194]

And unlike the 1980s you can't just send your wife into the workforce to help. Both people are already working full time jobs!

[@lowell5561]

Plus property taxes. I don't know how people do it. I live in Bergen County in the early 80's. It wasn't to bad then. Now? Forget about it.

[@nunyadambusiness3530]

Soon the, the kids, as soon as they're 16, are gonna have to start putting up their 1/3 or 1/4th of the bills.@@rathelmmc3194

[@JohnnyDouchbag-nr5yf]

Just make your lazy kids get jobs ti pay for the mortgage

[@nunyadambusiness3530]

Sounds like you'd be the lazy one by living off of your kids. @@JohnnyDouchbag-nr5yf

[@craiggoldstein5699]

This market is unsustainable period, housing prices have to come down in line with income, otherwise no one is buying.

[@CosmicLab167]

You forget institutional cash buyers. What this means is that only a few will own and rest will forever pay rent.

[@JackieBaker]

The thought of that scares me.@@CosmicLab167

[@misterogers9423]

@craigoldstein5699 Also you are forgetting markets like Hong Kong, Sydney, and Toronto exist, which has even less affordable housing.

[@Cyphlix]

there's a limit to productivity, theres no limit to borrowing & inflation

[@Timeisirrelevant]

That’s what they are punting on. They want to destroy our country and economy.

[@tanyaroberson9629]

I remember my boomer friends buying their houses in 1988 at too high of a price, and then economy crashed 1990, and they lost jobs, had to sell and lost money. Don't buy at the height of the market.

[@HowHingPau]

When my family bought our first house back in '89, mortgage rates were already trending down. We settled on a 15 year mortgage @ 10.5%. Then in '92, we refinanced to 7.75%. There were opportunities to refinance again, but we didn't want to reset the duration again, not to mention the refinancing fees.

[@JackieBaker]

Thanks for sharing!

[@donklee3514]

Do you understand how graduated interest rate loans work? If you recalculate your interest paid based on actual money you paid almost 99% interest only in the first year and gradually going down over the life of the loan. Each time you refinance you lock in a much higher rate than you initially contracted for. Because you have already paid the interest in advance when you finalize the "deal". Refinancing is a tax on the math impaired.

[@HowHingPau]

@@donklee3514 Yup, I do. Back then, I refinanced less than 3 years into the 15 year mortgage so I was still in the "mostly interest" phase of my payments. Due to the expected time to break even, the rule of thumb at that time (again, the '80s and '90s) was not to refinance for less than a 2.5% difference, and that's what I did. And as I said, while interest rates continued to trend down, I declined to refinance again.

[@user-lr4xe9xv2c]

I don’t know my mom’s interest rate when she bought her house in the 70’s. I do know she was able to pay it off by 1990! Then the house burned down and she needed a new loan in the early 1990’s and the rate was 7%. The house was paid off in 20 years because she got it in the late 70’s. She was in her early 40’s and paid off her house living off social security. Anyone making minimum wage could have bought a house and paid it off. Today is very different and I don’t see people paying off houses until they are in their 60s. Older people have wealth from just owning a house but the younger people are drowning in debt trying to survive.

[@HowHingPau]

@@user-lr4xe9xv2c Looking at historical charts, housing prices were just starting to increase in the 70s. During the early 70s, houses were selling for well $20-30K on average and didn't go over $50K until the late 70s. As for mortgage rates, they were low to mid 7%. People cry about the mortgage rates being "super high" at 7% nowadays just don't understand that 7% used to be the "normal" rate. The late 70s is when inflation started to rise and after the Fed made some mistakes trying to control it, mortgage rates were jacked to over 18% at the end of 81. I remember reading a Money magazine article around that time warning people off from getting ARM loans because ARMs can adjust every year. I believe it was +/- 2% max per year up to a total of 6%. So if your ARM loan adjusted up for 3 years straight, you could wind up with an mortgage rate of over 20%!

[@FranciszekPawal]

it’s hard to nail down specific predictions for the housing market is because it’s not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars.

[@simone_maya]

A lot of folks have been going on about the bull rally and said stocks that would be experiencing significant growth, any idea which stocks this may be? I just sold my home in the Boca Grande area and I’m looking to remunerate a lump sum into the stock market before stocks rebound, is this a good time to buy or no?

[@xavier_lucas]

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[@BenBak-wt7qi]

True, we’re only just an information away from amassing wealth, I know a lot of folks that made fortunes from the Dotcom crash as well as the 08’ crash and I’ve been looking into similar opportunities in this present market, could this coach that guides yo help?

[@xavier_lucas]

Having a fduciary is essential for proper portfolio diversification to make gains. My advisor is LOREN LENA WALKER who is easily searchable and has extensive knowledge of the financial markets.

[@BenBak-wt7qi]

Thank you for this tip. it was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.

[@biretta3000ify]

You're comparing current situation to 1980s? Yes rates are currently lower now than then, but youre totally discounting that current PE ratios of home prices are exponentially higher what they were in the 80s!

[@econ0003]

It seems like it was actually less affordable in the early 80s based solely on the cost of a mortgage in relation to income. Times aren't great right now but the early 80s are a fair comparison and might have actually been worse. As a child I remember candy doubling in price overnight in the early 80s. My mother having to move to different cities and states to find a job that would pay her enough to support her two kids. 1981 Median household income 22,390 Median home price 68900 Interest rate for 30 year FRM 16% Mortgage payment $1235 (no money down) 66% of gross income 2024 Median household income 77,345 Median home price 420,800 Interest rate for 30 year FRM 7% Mortgage payment $2800 (no money down) 43% of gross income

[@istvanpraha]

My fear is all of my peers (dual income, low six figure incomes for each person) who were the ones panic-buying houses in the NE during covid for $700K when they were $450K in 2019. They/we've all been making over $100K for what feels like five minutes, and for many of us, this is the peak in our careers around 40 (though some of us don't want to face that), but they are so sure they are 1) keeping those jobs and 2) going to grow those incomes and 3) not get laid off AND be willing and able to work until 70 and 4) not going to be buried by "unexpected" costs in this everything bubble, such as higher taxes, car, student loan, medical bill, huge repair bill on said house, etc. I think everyone is looking for subprime, not realizing that my peers may look solid today but could easily be considered subprime after 6 months of unemployment (which is not uncommon today considering most layoffs are for our sorts of jobs, not low-paying ones).

[@lizhoward9754]

With the lowest unemployment rate I have ever seen (I think it is at the lowest in the history of the US), I am sure these people would find jobs if they were laid off. We bought our first house in 1985 for 110K with a 19 percent interest rate. We both had to work second jobs to make that mortgage. I know this rate to hear these days, but people can also get second jobs.

[@istvanpraha]

@@lizhoward9754 My Lord, are you from earth? You don't read beyond the headline #s, the job reports are not good because it's not well paying jobs being created, they're actually on the decline. 2nd job....OK so payments went up by $2K in 5 years but a few extra hundred a month is the issue? What about the fact that you already work one "high paying" job? PEople your age convieniently left out that you did 2nd jobs early in your career where it makes sense. You weren't a corporate director and then working McDonalds on the side. Also revisionist history with the "but our rate was high." Yet everyone where I grew up around your age managed to pay off their houses early, having very average jobs. So where did the money come from? Couldn't possibly have been the steady wage increases we saw then but not now?

[@enthused7591]

Bingo. You've touched on everything. Homes today are 43% more expensive relative to median US income than 2007 peak bubble and EVERYONE paying 38-40% of their net income on shelter alone thought their jobs would be safe forever, so they had no money saved at all. This time is 43% worse mathematically so the unemployment and housing crash will be quite a bit worse than 2008-2010 as well. Sounds like the difference between you and your friends is that they're never going to save more than a few thousand dollars in cash (if they don't lose everything the own over the next 2 years) but you'll have a multi-million-dollar net worth in liquid assets and cash some day. Stay on that path, your gut is correct.

[@ErnieBert-eg8kd]

If you owe student loans you should not even be considering buying a home.

[@ErnieBert-eg8kd]

@@enthused7591can I ask you some questions. 1. Are you debt free?(no car payment, student loans, cc’s ect) 2. Do you own a home? 3. Are you making near the top of what your job should pay in your industry? 4. What is your age? If you answered no to the first three and the last one your answer is under 35 you don’t really have the experience to offer anything productive to the conversation and cannot be taken seriously.

[@davidwestwater2219]

My father bought houses and a sold them. He was in a real estate and I was alive in 1980 hours. 14, and this is not like 1980 in 1980 things for difficult. There were a lot of problems with inflation but people still bought houses. Young people were still able to buy houses. I don't remember anyone talking about the younger generation not being able to buy houses.

[@razorsharplifestyle101hard9]

Yeah they were buying homes at that high mortgage rate.And millenials are desperate just like them willing to accept the current mortgage high interest rate.Believe or not millenials are that desperate and just like the youtube lady mention millenials are really keeping the housing market alive.

[@LearnBDInstitute]

This historical perspective really helps to understand the current housing market trends better. Thanks for the insightful analysis! 🏡📈

[@FoodNerds]

Thank you for showing Airport one of my favorite movies!

[@robertroberts2795]

We are in the beginning of a liquidity problem. there is no predicting what will happen.

[@mjrisinsd6836]

Yes there is. One day, no one shows up to the Treasury auction and congratulations, we all learn that the Fed doesn’t control interest rates. I can’t wait for the John Stewart special where he explains purchasing power parity as if it was discovered just recently on a stone tablet from the Roman Empire.

[@robertroberts2795]

@@mjrisinsd6836 if that happens. The fed could keep monetizing the debt till we burn dollar in the fire place instead pay for heating fuel.

[@michaelm9621]

You are going to blow up and have a million sub, soon. Thanks for sharing.

[@JackieBaker]

I appreciate that! I sure hope so!

[@stukatz2445]

Canada "Hold my beer"!

[@stevekovacs4093]

I well remember the early 80s. Land contracts, high high interest, and sellers carrying back second mortgages and even third mortgages. Very hard to sell and tough to buy at 15, 17 %. But prices bounced back and sales rose by the mid 80s.

[@lawrencethompson127]

The original mission of the Federal Reserve Bank was to keep the currency stable. It has totally failed in that objective. Housing is the largest portion of an average family's expense. Why is the mission now to keep the housing prices high and out or reach for young families just starting out. The prices are now way overpriced because of the Fed's artificially low interest rate policy for the last 12 or so years. Speculators were gobbling up real estate and pushed housing prices up out of reach for working Americans. It is time for these speculators who capitalized to take their losses and spill their portfolios of houses onto the market at real market prices.

[@rabokarabekian409]

The actual mission of every central "national" "bank" is to ensure the entire country is permanently in debt to banks. Every Federal Reserve note says it is for debts.

[@bartsullivan4866]

This is why I enjoy watching Jackie's videos interesting information. I hope to be back in the market in about 1.5 to 2 years I doubt we will see a crash like 2008 anytime soon.

[@enthused7591]

So many things wrong with this lol. So, they rose interest rates to 18% in 1980, which is literally NOTHING when, as you read out loud, "the median home price sold rose from $64,700 to $69,400 in 1981" - which was only TWO times the median US income. That would be the equivalent to if the median home price sold TODAY after all this inflation had hit only $140,000! You seem really nice, but you HAVE to put the rest of the equation together. This is ALL about sheer unaffordable PURCHASE PRICE relative to the median income. The median home PRICE sold hit $479,500 in 2022! That's SEVEN TIMES the median HOUSEHOLD income! more than 43% worse than the 2007 peak bubble level. It is NOTHING like the 1980s, and actually 43% worse than 2007 NOT EVEN accounting for 40-75% rising homeowners' insurance and other costs of living.

[@ashamane]

Nailed it. It is blowing my mindthese boomers seriously still want to pretend life wasn't easy for them.

[@steveguillory7568]

Median household income in 1980 was $17k, not 32-35 as you stated. Furthermore, with rates as high as they were, it took 55% of median income to afford the median home. That’s far higher than today. So, maybe get off your soapbox and realize that other generations had challenges too.

[@dianaevans1357]

There is an over supply of new homes.They are being heavily underreported

[@JackieBaker]

Where?

[@andreaambrose8857]

@@JackieBaker sw florida

[@mattb383]

This market is like no other in history. Everyone looks for patterns and similarities but the fact is that rates have never been as low as they were in 2020-2022 coupled with the amount of rent, student loan, mortgage forgiveness, as well as other gov't stimulus. Demand is super low across the globe...supply is also super low. I would hate to be in the mortgage industry or a realtor now. Prices will need to come down along with interest rates and incomes will need to normalize the market. When the dust settles, get ready for tight lending, more down payment percentages required, and lower home prices. When people lose their jobs and cannot afford, they will be forced to sell and the market prices will fall dramatically. Real estate is a margin market where the latest price only represents a very small sliver of inventory matched with buyers. The only folks buying are boomers that are trading equity for another home and suckers that have bought into the hype of real estate prices never come down (renting is cheaper than owning in the majority of markets).

[@JackieBaker]

It’s been really challenging for us realtors and lenders. But I’m forging ahead. I honestly don’t know what to expect anymore. We thought prices would come down once rates went up. That’s not happening. I pray it gets somewhat affordable for people again.

[@mattb383]

@@JackieBaker When pendulums swing they slow towards the top and then stop before going the other direction. The gov't and Federal Reserve causes this chaos as they allowed wall street speculators cheap money looking for yield which drove up real estate 50% in 2 years and created a no win non competitive environment for folks trying to get a roof on their head. Folks cannot compete with wall street and air bnb investors. I am hopeful that folks will be able to take advantage of the pendulum swing once it occurs. It is a shame what happened to our economy the last few years. The fact is that we cannot have a perpetual bull market. I feel for you guys in the real estate selling and mortgage industries as it has all but dried up any chances at sustaining a living off of the market moves now.

[@TheSuperdodgy]

Problem is that when int rates come down prices don't come down. The inverse is true. To paraphrase what you're saying.. "The rich will get richer and the poor poorer"

[@mattb383]

@@TheSuperdodgy You cannot look at it from a one variable perspective. Long term, people will not want to be house poor. They will want to enjoy vacations, buy things, have retirement savings, etc. It is good for the economy for people to not be house poor as it will encourage job and economic growth in other industries. If housing continues to stay high and wages do not offset, then it is guaranteed to put the globe in a recession where prices will come down. People will lose their jobs in the industries that people used to support before becoming house poor (or just life poor via inflation). When people lose their jobs, they cannot support spending in the economy and a downward spiral happens. People forget that we have market cycles and are so confident that nothing like 08 could ever happen. IMO, this time it will be worse. The Fed and gov't had their foot floored on the gas pedal and the engine at redline for far too long and have painted themselves into a corner with no tools to fight another downturn without causing more inflation.

[@CroisMoi]

@@mattb383 that is a very concise explanation. You should be making videos. Those corporate creeps have worsened this problem. 2024 is going to be an interesting year.

[@ansheg]

The dollar is losing value due to the “money printing” policy. Technically, commodities (cars, gold, houses, land…) are relatively staying the same compared to each other, but gaining value vs paper money that is depreciating driven by too much supply.

[@JohnnyDouchbag-nr5yf]

80% will rent and 20% will own for Gen Z. 15% of the owners will be from inheritance

[@DebbieCA]

We bought our first starter home in 1985 for $102,000 in Pittsburg CA at 11% down. We qualified for a first time home buyer rate or else it would have been 14%. We lived there for 6 years, sold it for $165,000 and moved to Walnut Creek where we both grew up. That original high interest rate worked out for us. We were able to get our foot in the door in the market.

[@ashamane]

It's a bubble and it's goign to burst somehow. The prices ballooned way too fast, houses are NOT worth what they're "worth" right now, and it is completely unsustainable. Nobody can seriously believe nearly 100% growth in value in such a short span is natural and nothing bad will happen, right?

[@godembassyministries7603]

I’m saving this video let see what happen in 7 months from not

[@cjenkins79]

Good point here, although I don’t think Jackie or BOA is really understanding the gravity of how under supplied we are. The inventory referenced is about the number of homes available to purchase today. Would lower rates bring more inventory to the market? Sure. But this ignores the amount of stock we have going forward. From 2012 to 2022 we formed 15.6M new households but only built 11.9M new single family homes. We currently forming 1.75M to 2M households every year but building less than 1M single family homes. So the shortage of housing is getting worse. That’s not counting the larger demographic issues. People are living longer and staying in their homes longer. The median time spent in a home is 15 years now. You mentioned millennials moving into home buying age. So we will have 3 generations, essentially the largest amount of homeowners vying for houses. We would see boomers at this point turning over housing but again they are living longer and keeping these homes longer. Building cost are up along with now higher interest rates. It’s only profitable for homebuilders to build the larger luxury homes and make a profit. This means there will be no construction boom anytime soon. So we have a growing population all going after a smaller percentage of homes. This means the housing market will only need to be affordable to the top 60%, then top 55%, then top 50% and so on as this continues.

[@ErnieBert-eg8kd]

This is true. However 67% of Americans already own their home. 14% are living in poverty so they aren’t buying ever. If you are below the median you are out of game. Let’s look to who can afford it. 25% of households earn 140k plus. 20% of that 25% are between 35-45(prime first time buyer age) we don’t need homes to be affordable to average people to keep prices high. Let’s assume half of that 35-45 140k plus earners want to buy the other half own already that is a pool of 9.5 million buyers. There has only been from 4.5 to 5.5 million homes for sale each year nation wide. This is where supply meets demand and you have true price discovery. There are 129 million single family homes in America. 4-5 million are put up for sale a year. 40% are bought for cash from investors. The market only needs 2.5-3 million people a year who can afford it to buy. The crash bro argument is nonsense. If I heard a professional real estate investor saying this was coming he would be worth listening to. Some broke disgruntled millennial who chose to overpay for a degree with an over saturated job market with no potential to earn a significant wage not so much

[@cjenkins79]

@@ErnieBert-eg8kd the crash bros make money from KZbin views. Their goal isn’t to be correct, their goal is to get all the people envious that they can’t afford to watch in hopes that they’re right.

[@ErnieBert-eg8kd]

@@cjenkins79 🎯 exactly. They are a herd mentality cult. There is not reasoning with them. Travis and Nick Girli are clickbaiting their way to down payments for a house. Look at the ratio of subs to views. It’s around the 25-30% rate with hundreds of comments. I guarantee they are making 30-50k a month

[@Dispoflection5]

it's funny and slightly annoying when the older generation say, "oh, but its not as bad as when we had 18% mortgages", and completely disregard the maths. I'm in the UK, and back in the 1980's a 4 bedroom house in London was £90k. Now in 2024 the same 4 bedroom house is £700k. 18% of £90k is £16k Now the current UK interest rate is 5%. 5% of £700k is £35k That is more than double the annual cost of THE SAME property, and let me remind you, salaries HAVE NOT changed much since the 1980's. You older generations are totally gaslighting the younger generations and invalidating the financial pain they're going through. It's disgusting.

[@JackieBaker]

I don't think the older generations truly understand what's going on with the market right now.

[@sanhema7681]

​@@JackieBakercertainly, they're living in the 80s bubble, and are ignorant.

[@nole8923]

The difference between 1980 and today is that in 1980 inflation was caused by a booming middle class with much more disposable income than today. Today’s inflation is caused by Covid causing massive disruptions in the supply chain as well as boomers retiring en-masse causing further supply chain issues. Had Congress and the president focused on dealing with the supply chains issues the Fed might not have needed to raise interest rates. Americans were still much better off during the Fed imposed recession in 1980 than today. They still had more disposable income than today. Therefore I don’t believe that home prices will stay as high as they are now once the housing bubble bursts like it did in 1980. The strong middle class that existed in 1980 has been hollowed out and decimated.

[@gpeaceportville]

90% of households are paying less than current rates on their mortgage. 62% of homeowners have a mortgage rate that’s less than 4%, and 23.5% pay less than 3%. That is creating a big dam to availability, especially when coupled with higher mortgage rates and increased institutional acquisition and ownership of rentals. Look for an increase in ARM's, and even a push to 40 year mortgages. I feel sorry for first-time buyers; this may be a generation that simply doesn't get to own a house.

[@JackieBaker]

Right now there are hardly any ARM loans. Banks are getting away from them. 40 year mortgages won't solve anything because you're only saving a mere 100 bucks a month.

[@donklee3514]

Don't forget that permanent capital has staying power because they don't have to make monthly payments. So, houses sit vacant or get rented out. Then there are bond financed purchases that are interest only. They have staying power because their monthly payments are interest only. They dig in their heels and prices become so sticky that the market seizes up. People that over-paid are not able to sell at a price high enough to cover the loan and that puts the stag in stagflation.

[@deathinaction]

This guy gets it

[@rathelmmc3194]

@@donklee3514 except houses deteriorate over time and they deteriorate faster if unused. Housing is expensive to properly maintain and what's the point of having capital tied up in housing when you can buy T-Bills and get 5%?

[@rathelmmc3194]

Main issue is if there's an economic shock and housing falls even 10% from peak there's going to be underwater borrowers that are distressed sellers. All it takes is a few houses selling quite a bit below highs to recomp the area to the lower level making even more people underwater. Also if you're upside down you can't refinance and quite a few borrowers in the past few years did buydowns. That's another pressure on them as their rates tick up.

[@rondye9398]

No Air bnb in the 1980's. So many speculators jumped into this scheme to get rich only to find expenses out weighing income. More inventory from stressed borrowers will skew these predictions of a 1980 redo.

[@marcjones744]

Im glad u mentioned demand. I would point to low supply, specifically, because we greatly reduced building homes after 2008.

[@sanhema7681]

And there are more and more people as well, that's why the high demand.

[@tonkabeanpumpkin-fh4fz]

I'm a 70-year-old Boomer and I remember well when my then husband-to-be and I explored the idea of buying a home. The interest rate was 18%! An agent we innocently talked to dismissed us, snorting that we "didn't have any money." Of course, three or four years later when we DID have money we wouldn't touch that guy!! We had a new, "farmhouse style" (which was an innovative, very popular design idea back then,) home built in 1985 for about $85,000. Three years later, because we moved cities for my husband's schooling, we sold it for over $112,000. I still miss that house! Anyway, the housing market was insane. Also, in the late '80s and the '90s the overbuilding of "executive style" home communities was ridiculous.

[@robbooth8059]

The employment input wasn’t addressed in this discussion. It isn’t nearly as optimistic as it was in the eighties unless you’re listening to MSM. If people start having to sell and interest stays high the only way homes become affordable is if the capital cost drops……meaning falling home prices.

[@JackieBaker]

Good point.

[@deathinaction]

People are not going to sell, even if they lose their job. Where will they move to? Rents are at record highs, they already have locked in a super low interest rate that won't be seen again for years and years, then the more appealing option rather than selling their sub 3.5% interest rate home would be if all else fails... House hack! They will rent a room to some poor millennial or Gen z before they sell their freaking home! It's obvious.

[@razorsharplifestyle101hard9]

Indeed,And home prices are not dropping anytime soon.Thats what make current market somewhat different.

[@lancefarmer2508]

What's happening, not going to happen, is that homeowners are selling to people who will not be able to afford the taxes and homeowners insurance inside 3-5 years. Here in Florida, a new home built in 2017 sold for 530,000. Same home sold in 2021 for $1,027,000. Yeah a 99% increase. Now what takes time to catch up to increased home prices.....taxes and homeowners insurance. The taxes have been resetting here but only for about the last year. Many areas have homes like this that were flipped 2-3 times and had increases of >25% at least when sold. The tax man is coming in Florida and they are going to own a lot of homes before 2031. This insanity only works if low interest rates, < 3%, low property insurance, low taxes and relocation intersect. Those are all gone once the property taxes kick in. This same market used to have rentals listed less then a day. Now has at least 50+ and NO ONE is moving into the area to build a new, low interest home. Lots of people and shit bag investors are going to have their hands out to Uncle Sam again very fucking soon. Good luck to everybody!! : )

[@ashamane]

This is happening in MA too, my live in landlady is being forced to sell the home her FATHER BUILT that she owns outright because its "worth" ballooned. It's the same damned house. She owns it outright and always has but she's elderly and her income is fixed. She's being forced out of her family's home due to obscene taxes. I feel bad for the elderly being forced out, but man do I hope the "investors" that created this hellscape lose everything.

[@phx4closureman]

7:35 *TOP GUN!!! YAYYYYYYYYYYYY!!!*

[@Jdjdjfhehehd]

It feels like that price point will not drop, I’m in Montana, realtors are still claimed homes are selling 96% over asking, how does it in other parts of the country?

[@PatamaGomutbutra]

It is not the same with 1980s it is,a new situation that people learn to prevent some problem by create new problem. The current OVERVALUE home price create from speculative, emotional FOMO, and greed than ever before in history.

[@ashamane]

Amen. They are not worth what they're "worth" at all.

[@richardkut3976]

I had a 19% mortgage back then, Thanks.

[@donklee3514]

I got a second trust deed at 22% in 1982. It was ok, because my assumable first trust deed was at 8%.

[@russulpeter8724]

Price of the house must be under $100,000

[@richardkut3976]

@@russulpeter8724 Starter homes were about $75, 000 in Sonoma County Ca. during those times.

[@donklee3514]

@@russulpeter8724 Think about this, a market without lending is a place where houses would be depreciating assets and a lot more individual people would be able to buy sh*ty houses. You can see this in parts of Texas. These bubble markets are only possible because lenders are willing to lend at a higher price than an individual has cash. Once they do, that is the new market value until they do it again and depreciating assets become appreciating assets in the process. Then you have bureaucracies like HUD inflating rents above affordability because they are the only ones that can pay the over inflated rents. Section 8 is a landlord welfare system that provides rent stabilization on the down side and pricing pressure on the up side. If section 8 makes a decision to cut the rents they pay by 20% take it or leave it. Rental rates will go down instead of up all the time. There will be some takers and that will become the new market rate, but that never happens and prices are sticky on the up side. Partially due to the rent stabilization program known as section 8. Rental rates are a determinant of the feasibility of rental property at a given price. So exorbitant rental rates affect the price of single family homes and the number available for purchase. All this stuff is interrelated, but to the up side all the time? There is something wrong with the real estate market. Own nothing and be happy.

[@nolongeranurse3369]

@@russulpeter8724 you will never see that nationwide again...bit you can still guy fixer uppers in the deep south..the coal belt..rustbelt and flyover states for 125k or less even now

[@Timeisirrelevant]

People forget how high the interest rates were in the 70s. People were had just as hard a time qualifying as they do now. Ask your grandparents or parents, depending on your age.

[@chrissithlord4760]

And don’t call me Shirley..

[@JackieBaker]

😂

[@marcoprolo1488]

The demographic dynamics are totally different. There is no comparison between the 2 periods.

[@greentea111]

i appreciate all the videos on buying a house ... I am also in bergen county Jackie I need some assistance and woul dlike to buy a home for the 1st time

[@JackieBaker]

Hi, send me an email at [e-mail].

[@fredmcgough748]

What about the real estate investors. I thought they hold 1/4 of house inventory? Maybe their the ones depleting the inventory?

[@jimshoe402]

Sold one in 1982 13% then Got Rich in 1985 😁😁😁😁😁😁

[@richiehunt5097]

I think it's likely to be a new housing 'phenomenon' that could be a mix between what happened in the early 80's and the the '08 crash. BoA neglects some key issues in that unemployment went down in the early 80's, the debt-to-income ratio is at an all time high and this generation of the prime buying age isn't into owning homes like the generation of the prime buying age (boomers) were in the early 80's. And part of that is the debt as college loan debt. Currently the *student loan debt* to income ratio for graduates is 60-65%. It just wasn't a thing back in the early 1980's. I also wholly disagree with the idea that there's 'too much demand.' House transactions are at the lowest they've been since 1996. And inventory is still low in most areas because they simply don't have the demand to build and it's too risky (and builders are offering ways to fiance down to lower mortgage rates). To me, I think we are currently in a 'frozen' market. People aren't buying and people can't sell because it's not feasible to do so. Those that own are stuck. They can't downsize because owning a smaller home will likely be at too high of a rate AND too high of a price. Just doesn't make sense. But with the debt to income ratio being so high due to not only mortgages, but automobiles and credit cards, I see many of these homeowners, even those that bought pre-pandemic and have an interest rate below 4%, are hurting because they have so much debt. They are just allowed to borrow because they have jobs. The unemployment rate fell from 11% in 1979 to 5.7% by 1986. We also fixed the gas crisis by then. Right now unemployment is at the lowest it has been since 1945. Odds are very likely it's going to only go up and probably close to the more normal range of at best 6-7% and if we do hit an economic recession it could be closer to 9%. And those people won't be able to borrow anymore and will have to make some hard decisions. My prediction is that if the unemployment starts to rise substantially (say to 5.5%) we'll start to see a large exodus of people downsizing by going from owning a home to renting (instead of downsizing to owning a smaller home). The market for it to be feasible to downsize to owning a smaller house just isn't there and selling their house and going to renting will get them much needed liquidity. And the millenials who are more predisposed to renting anyway, will lead the way as they make less money and have far higher debt to income ratios. And with the Republicans having control of the House and it being an election year, they'll probably push policies to speed up the timing of a recession to get Biden out of office. The only thing that could hold this back is if they don't want Trump as President (I tend to think the House wants Trump as President more than the Senate).

[@richiehunt5097]

Also should be noted that from 1879 to 1984 household incomes rose about 37%. In that same time range to now, household incomes have only risen about 17%. From 2003 to 2008 household incomes also rose about 17%. So unless employers start paying a lot more there's going to be affordability issues unless house prices drop signficantly.

[@JackieBaker]

Very interesting thoughts. Thanks for sharing!

[@donklee3514]

@@richiehunt5097 Yes

[@CroisMoi]

Great analysis. But I am seeing so many people overprice their homes by $100k. They are sure they will find a buyer, and refuse to budge. They don’t seem to be motivated, so the house sits there for months. All we need is one sale in the neighborhood to set the Comp price, and we will be off to the races. They will have to reduce and they can’t justify the price. I’ve watched the Dallas and Fort Myers markets.

[@LiberatedMind1]

Cheap rates and easy loans caused rampant speculation in housing in 2003 - 08 as it has now. Then the FED corrected their mistake by raising rates causing the market to crash as mortgages became too expensive. We have a very similar situation and a the housing bubble percentage wise is roughly the same, only difference is the loans aren't sub prime, but that won't matter as re-financing is still too expensive and will cause defaults.

[@donklee3514]

We are not in an 08 type bubble right now. We are in late 70's early 80's stagflation. You are going to see a drop but it is not going to crash like the 80's. The market is going to seize up; stagflation. Too much permanent capital all in.

[@LiberatedMind1]

@@donklee3514 We have a real estate bubble just like 08, and an overbought market as well. The stock market wasn't elevated in the 80s, hence no crash. Stagflation is only temporary, and exists only in the interim, a full on recession is around the corner.

[@donklee3514]

@@LiberatedMind1 Stagflation is always temporary. The question is how long is temporary.

[@LiberatedMind1]

@@donklee3514 Few more months based on yield curve, tops.

[@donklee3514]

@@LiberatedMind1 Based on the yield curve? That is pretty optimistic. We are talking about the same yield curve inversion that wrongly predicted a recession at the beginning of this year? I suspect that you are off by at least a couple years. Time will tell. Let's test your hypothesis. I have a model that predicted over 12% mortgages two years ago. It doesn't say when, but does seem on course for next year? 12% is the first inflection point and it could go to 22% the next inflection point if the fed backs off too soon. Time will tell.

[@raystarky3896]

Yes i know i remember the very high interest rates back in 1984. We bought a home Mid Apr 1984 and the interest rate was about 14%, Our 2nd but bigger home and lot we bought the end of July 1987 and even though the price was higher we paid almost the same as the smaller place that had a higher interest rate

[@JackieBaker]

Those were crazy times! Thanks for watching!

[@davidthomas8113]

I think demand is very low and affordability is extremely low. If unemployment and supply increase there will be downward pressure on home prices. Not sure if correction will be as severe as 2008

[@nole8923]

You cut out the “and don’t call me Shirley” part. That’s the best part.

[@JMSouchak]

But prices are a lot higher now.

[@Gromitdog1]

Wages would be one difference from the early 1980's and i think international capital flows would be another. Throw into the mix institutional buyers and i don't think we have any kind of precedent of where prices are headed but most likely not up. If stocks keep outperforming housing you could see a huge sentiment shift away from housing and its game over for the housing market which wouldn't necessarily be a bad thing.

[@JackieBaker]

It’s very possible

[@NotShowingOff]

The issue is was 18 percent bad? Well, it depends. Wages were steadier and purchasing power was better. And the homes were less expensive compared to median income. But today, 7 percent is similar to the 18 percent. But ppl have lower wages proportionally and jobs aren’t as steady. Plus homes are more complicated to build and insure. They are probably right that times are similar. I don’t know if we can just ride this out without policy changes

[@xman7688]

The words "experts" and "bank of america" should never be in the same sentence...EVER

[@enthused7591]

You're making the same mistake as everyone else - 2008 wasn't a "collapse of subprime mortgages" or even a collapse of adjustable-rate mortgages, as everyone with only an entry level of economic knowledge has been saying. Rather, in 2004-2007, both subprime loans and adjustable-rate loans fueled a bubble that will ALWAYS be defined as an imbalance of median home sold price vs the median income. It will always be that simple, and that ratio will be all you ever need to define whether we're in a housing bubble. Sure, subprime loans and ARMs kicked off the recession, the uptick in unemployment, and the initial foreclosure starts, but it was the SHEER selling price relative to what 90% of mortgage recipients were earning annually that caused the crash and ultimately 3-year recession and 2009 10% peak unemployment. In other words, too many people with too small of savings took on too much debt and assumed their jobs would be safe for an indefinite time period. Look at 1920-2003 where the median home price sold averaged 1.9x to 2.8x the median income. In 2007 that number peaked at 4.9x - nearly DOUBLE the average ratio of home price sold to median income, then is crashed to 2.5x the median income by 2010, well within the historical trend. Today - and since late 2022 - we've been at SEVEN TIMES the median income. 7.0x the median income is mathematically a 43% larger bubble than 2007 peak. Interest rates have almost 0 to do with it. From 2021-2023 we had over 10 million individuals sign up for a mortgage that equals more than 40% their net income annually, which again, is more than 40% worse than 2004-2007. Over half of those individuals wouldn't be able to afford their mortgage payment for 4 months if they lost their job. It will be a repeat of 2008, only a lot worse. Every single last piece of math shows it. This time around, everyone's homeowners' insurance, utilities and other costs of living are up 35-90% simultaneously, which did NOT happen in 2007 as well. Homes WILL be half price again, and unemployment will see 11+% by 2026. There are ZERO shortages of building materials or labor, and new home prices sold nationally are already down 13% since 2022 and falling.

[@nellof1244]

It doesn't matter if it's like 08 or not the reality is the cost of ownership on a home in ratio to the income of the people buying them is not good

[@lisatowe778]

lol lot of people commenting didn’t live as an adult in the 80s. My husband at the time made less than $5/hr and we had a baby and rent was well over $300. Then went over $400. Food was fairly consistent though some like meat maybe less however folks don’t realize they have kept some things lower than one would expect. Get a job. Get married. Stay married. Pay for your home. Be frugal. That’s the way it’s been done for human history. You can’t have it all folks. But having a home is possible. Just don’t dream bigger than your ability to commit to several years in a job etc.

[@PrestigeWorldWide777]

If you bought in 2019, you’re fine. Locked in low interest rate, great equity, and mortgage cheaper than rent.

[@connor_flanigan]

the deal is in the price, NEVER in the terms. people overpaying for homes are the same morons buying $90k trucks they can't afford, just because they can make a payment.

[@msms4659]

You cant ignore the fact that Corporations are buying up 1 of 4 single family homes in order to rent. This keeps the market artificially inflated and because they can pay cash, it crouds families out of the competition for homes. This is another form of monopoly and non compete.

[@rogerbartlet5720]

I remember a guy with a $30,000 mortgage paying $1000 a month. He paid 20% down (which was mandatory then) and told me it was the best deal he could get.

[@dalepetersen1166]

Back to the 80s I like it will we get some good music like flock of seagulls and Duran Duran

[@CJCochran0201]

… just like vehicles, houses cost too much, regardless of interest rates … I doubt I’ll ever be able to afford downsizing …

[@marknewton6984]

I would like to downsize but can't afford it!

[@kernelab]

got 0:25 seconds in and now distracted watching leslie Neilson videos

[@JackieBaker]

Awesome 😂

[@misterogers9423]

If this turns out to be true, it would be good to buy now since rates may double or more, but I am not sure. I do agree a 2008 crash is unlikely due to housing supply and the lack of the toxic debt for mortgages.

[@misterogers9423]

The big losers with an 80s scenario woold be the people with the arms or the people who were counting on rates to go down to comfortably afford their houses.

[@hollylucas6969]

She forgot to factor in the amount of speculation which is very 2007, investors can flee the market at any time, in some cities they bought up 25 to 35 percent of all SFH, rents thanks to AI have been skyrocketing but with DOJ on the trail, lowering rents plus lowering house prices equals investors getting out equals a lot of available inventory, and recession is coming because of AI related job losses which will force an unfreeze of the market . I think this is completely new territory and nothing like either.

[@hi.9133]

Thank you Jackie, I can die in peace now

[@Jcakiiiii]

The big difference is the pandemic (ie remote)and the influx of investors. Supply is there but it's bought up!

[@dougiep2769]

Its gonna be like 1929. I would be surprised if it doesnt takecout the world reserve currency ie the usd. Interest will need to go to like 15-20 percent to protect the dollar

[@JackieBaker]

I don't think you're too far off with you thoughts here

[@robertscheinost179]

You may be surprised to know that the USD is stronger than most other currencies. Most countries are increasing the money supply faster than the USA is. The USD as the world reserve currency will remain for lack of a better currency to replace it. As far as being like 1929? I think that is a distinct possibility and that was a worldwide Depression. It was 1953 before the 1929 Stock Market hit 1929 highs, a 25 year span. That's the scary part.

[@dougiep2769]

@@robertscheinost179 Jackie I'm not surprised. I'm Canadian so I'm well aware of currency issues as I suffered from currency issues. Bottom line is the usd is as we said the world reserve currency. Your about to have competition called the brics. It all depends on whether 10 larger economies can trust each other to make it work. I personally think they won't be able to. I suggest Jackie if your american you pray as well. If America loses this privilege it will be devastating to life as we know it.

[@bowwm0912]

so, it's gonna be like " less buyers and less sellers " ..

[@nitroneonicman]

The early 1980s were setting up for one of the biggest market corrections in history...sooooooo.....

[@user-ne1ql1rc1g]

Just make an all cash offer on a home at a substantial discount to current asking price. If they say no, just move on to a different house and do the same. Eventually, you will find a good house with a seller desperate to sell. Since you are the only buyer in the market, you will get a good deal eventually.

[@JackieBaker]

Right now, there are many buyers in the market competing. So low ball cash offers will not get accepted.

[@user-ne1ql1rc1g]

​@@JackieBaker They wont be accepted until they are. One has to be patient and persistent.

[@miker1414]

Are you factoring in AI or WFH at all? A lot of these jobs are going to be eliminated or even completely shifted from high-cost area's to very low-cost areas which may really impact middle class housing. That combined with the amount of debt the avg American has doesn't seem like a good combination.

[@tkordik]

I hate comparisons to the 1908's and "historical averages" why on earth would a 28 year old trying to buy their first home care about what things were like 40 YEARS ago? They only care about right NOW.

[@davidwilliams4498]

Ill be 66 this summer i remember all of the 70s an 1980. Everything except interest rates are much worse now then those days thsts a fact i clearly remember

[@Reymundo65]

I live through 2008 I remember saying to myself in 2006 when I was 30 that I will never be able to to buy a house in California in 2008 I bought my house I think people are hopping were in 2008.. I don’t blame them, but we are not. We cannot ever be in that kind of housing recession like that again because of all the laws that were changed the same reasons we can never be in a great depression again because of all the laws that change in regard to insider trading. But have hope young people for sure as the sun will rise a bubble will burst. We don’t know which one and it will not be housing, but something will give.

[@asmithh2697]

I must be in the wrong JOB. Since 3 years ago I brought this up time and time again. !

[@gabell727]

New construction was much higher and inventory was higher in the 1980's. Many millenials are not savi enough to know that the price of the home is more important than the payment when it comes to building wealth. HIstory may rhyme, but my crystal ball is nebulous.

[@donklee3514]

We are in stagflation just like the late 70's early 80's. We are going to see 12% mortgages soon. Maybe even 22% or higher. Every asset class is in bubble range and permanent money has nowhere to go. So, they stay where they are at. Prices become so sticky that it takes decades for prices to come down enough to free up the market again. The RE market freezes up in an unaffordable range. Just like the last time this happened. Stagflation is a free market failure that the free market fundamentalists believe cannot happen. The invisible magic hand of god goes on vacation. Supply and demand are meaningless. The market simply seizes up and fails.

[@JackieBaker]

Thanks for you input!

[@mattb383]

There is nothing free market with the gov't and central planning manipulation of all markets. Wealth theft occurs through inflation, inflation is caused by gov't deficit spending. I think you mean distorted market not free market.

[@donklee3514]

@@mattb383 I've been studying economics for dam near 50 years. I started out as a free market fundamentalist preacher with a full indoctrination. Praise the all mighty dollar and god's invisible magic hand. However, the science of economics asserted itself and the economic religions lost their luster. The force was strong in me. I started testing the theory against current events and very quickly I realized I was sold a bill of goods and excuses. Natural free markets are a fantasy concocted by merchants wanting to sell spoiled food to peasants who couldn't afford anything else without government interventions back in the days of Adam Smith. All markets have to be regulated to prevent the big players from consuming everyone else like the game of monopoly. Which like so much in economics is mislabeled and distorted. It should have been called Oligopoly. Oligarchy is a natural consequence of unregulated markets combined with the natural tendencies of men. The natural free markets in the libertarian and free market fundamentalist sense are a fantasy. They only exist in the world of rainbows and unicorn farts. There are no functioning natural free markets in existence anywhere on this planet and central markets are the worst at distorting prices. They are a fantasy. Inflation is a general increase in prices that perpetuates more price increases (an inflationary spiral). Inflation by definition is purely a pricing phenomenon. One of the components feeding an inflationary spiral is increases in the money supply that exceeds output (in theory). The notion of inflation as purely a monetary phenomenon was introduced in the late 70's as a power play by the monetarist and neo-con-artist as part of the monetarists blitzkrieg. It was later reinforced by the gold bug business model propaganda mills/useful idiots and morphed into what we have now. So the battle continues between the two ideologies. Inflation is purely a pricing phenomenon vs Inflation is purely a monetary phenomenon. The monetarists have been in power for 43 years and what a mess they made. Market failure after market failure. Their theories don't hold up to current events and there is now 40 years of evidence to the contrary. The central planners as you put it are just guessing. Their data driven approach is just smoke and mirrors. Their theory is a failure. I don't even think they believe it anymore. They are just trying to hold on to control. Inflation is purely a pricing phenomenon. Prices go up because they can. Prices are not determined by supply and demand. They are determined by peoples decisions and as we moved to a more oligarchic economy a much smaller group of people are making the decisions. The new feudalism.

[@mattb383]

@@donklee3514 There are no solutions, only compromises. I appreciate the in depth post and info. I agree with most of what you are stating. However, the Gov't is controlled by the interested so the regulatory function is also a fallacy. The Refs in the game are told how to make the calls by the owners of the teams. There are no right or wrong answers but a bunch of theories. We are all wrong with good intentions.

[@donklee3514]

​@@mattb383 Some of the theories test out better than others. The monetarists are pretty consistently wrong because they have no solid analytical foundation. A negative barometer at times. Take what they say and do the opposite. They can talk about a soft landing all they want, but if that is the case then what they did so far, didn't have much of an effect. Inflation has been pretty much running its own course. Interest rates didn't get high enough to slow down price increases. Inflation just keeps spiraling around and they are reacting with higher rates with small increments (25 to 50 bases points). They haven't even come close to politically unacceptable levels of employment. In 1976, in the Scottish Journal of Political Economy, "R. F. Kahn objected to Friedman’s dictum that inflation is always and everywhere a monetary phenomenon; he argues that it is rather the outcome of the growth of money wages in excess of productivity and increases in the price of imported commodities. It follows that the proposed monetarist “cure” of reducing the growth of the money supply misses the point, since it has neither a direct nor an indirect impact on prices unless unemployment reaches politically unacceptable levels. In this context, the monetarist notion of a natural unemployment rate and the idea that public budget deficits always cause inflation have no solid analytical foundation." Back in 1976, there were experts calling bull sh*t on monetarists and they just blitzkrieg around them taking over most of the US economic departments at universities. Who knew back then that for fifty years Edward Bernays would be more influential in economics than John Maynard Keynes. The last 50 years in economics has really been quite sad when you think about where we could have been. The advances we could have made. I was in the wrong place at the wrong time in history. Oh well, at least I lived long enough to see an economic renaissance. History is going to look back at the monetarist blitzkrieg as a dark age in economics. So much potential lost.

[@lisatowe778]

I have owned homes through the years. Almost always on a single income but not always the only person being sustained on that income. I was spread thin. I may have two cheap lawn chairs in my living room and outdated bathrooms. I may buy my cars second hand and drive them forever. Many years I made far less than $50K while never taking vacations or buying things I wanted. Certainly I didn’t party, drink, or go out. Choices, folks, choices.

[@sanhema7681]

Where were those homes located, and when did you buy them?

[@lisatowe778]

@@sanhema7681 Three in the upstate of SC where lot of rich folks move to, from 1985-2007 and three in Florida from late 2000s. Most of the time I had other people I was supporting and most of the time I didn't come close to or break $50K a year, I mean some years I didn't break $25K. It's doable, but your mindset has to be the home is the focus not an accessory. It is an investment. No shopping sprees, no vacations, no new cars, no fancy clothes. No eating out and what you do eat is simple and healthy with a good clean lifestyle so you don't spend money on doctors and sick care. No vices. Everyone wants to think "aha! gotcha" when someone like me comments, but if you are one like me then you know what I am saying is true, and you have what it takes, If you want life to be about bitching and moaning then what I am saying is over your head

[@rabokarabekian409]

Ny fellow Muricans. This is the case all over Earth., So be sure to vote foe right "front men" "Who run Bartertown?"

[@ralphjessee2688]

This is aging, okay. But, just like '80 it was jobs falling off a cliff that sank things. On the heels of a major war and heavy government expansion spending and the consequent inflation. When the rate shock came, the jobs evaporated, and it didn't matter what your debt ratio was. You were hurting and on the sidelines. People did a lot of owner financing and mortgages, like today, in some cases are assumable, if you want to assume the high purchase price.

[@TheNanoNinja]

Cut the scene short. I wanted that punch line :(

[@Reymundo65]

I’ve been telling people that I felt like the economy and the housing market was worse in 2006 and seven then it is right now homes were probably about 20% less than they are right now believe it or not and we were making like 50% less. Millennials are going to buy their homes at 9% and in five years refinance it to 5% and then five more years refinance it to 3% and they will be sitting where I’m sitting right now with a mortgage 1/4 of everyone else around me hang tough it will happen

[@ashamane]

I just don't know how man. I am trying so hard but I can't afford any of these payments and I only have one voluntary debt that I could sell off to gain 35k liquid. Even if I did that it's unaffordable I'm not putting 3/4 of my monthly income into housing. I'm trying to build instead since all that seems to be available are giant homes. When a small home hits the market it's gone within 3 days. Nobody can afford these 3k square foot homes anymore.

[@Reymundo65]

@@ashamane i feel you i do I may be wrong but I remember 2000 to 2007 that’s exactly what I was saying i will never be able to buy a house I was making $12 an hour with a family homes were $330,000 for a small studio condo and 600,000 for a house at 8% then the housing market crashed and I bought my condo that went from 330 to 80 i was 33. Now, yes homes are 800,000 and a condo is 500,000 but minimum wage is $16 an hour and it was seven then. I dont think we will have another housing crash but something will it has to. Yes the dynamics are different but I’m just saying people forget how effing bad it was and it was bad.

[@skate1]

I feel like 2020 was worse than 2008. Because the whole world was affected they had to give stimulus checks. They never done that in history. Unless you look at the Great Depression in the 1930s

[@1Skeptik1]

I bought a house in 1983 and paid 11.5% fixed rate for 30. It you believe housing was more affordable 40 years ago you are mistaken.

[@ashamane]

You are literally this stupid. Jesus christ.

[@ronbown3836]

I remember the Carter days. My dad didn't have too much work. The automakers were slow and nothing was selling. I hope Donald is going to stop that.

[@donklee3514]

Yes, the oil embargo caused inflation and Carter's response was a price freeze that caused gas rationing. Odd and even days. A recession (relatively high unemployment) with stagnant growth.

[@houseonthehill8485]

B of A falls way short in analysis. Factors to consider: Jobs consistently vanishing Dollar competition worldwide Out of control government spending of the diminished dollars. Loan rates have little to do with a person without a job having the resources to repay a loan.

[@user-ob4em4ge6c]

Home values are declining, nationally.. this is good news.

[@ViceCoin]

There was a recession in 1982.

[@JackieBaker]

Yes there was

[@pamcornelius9122]

And there’s a recession in 2024.

[@RobertMOdell]

It's gonna be worse than 2008.

[@JackieBaker]

Hope not.

[@lawrencethompson127]

I agree Robert and I believe that it will not rebound like it did then either.

[@donklee3514]

One man's disaster is another man's treat. Good time on my horizon. 22% second trust deeds. Now that is what I'm talking about. 5.5% percent dividends vs 22% second trust deeds? Moving on up to the east side. A deluxe apartment in the sky.

[@deathinaction]

Explain to me HOW There's no new flush of inventory going to hit the market, from any source. Even if there's a recession... People are not going to sell, even if they lose their job. Where will they move to? Rents are at record highs, they already have locked in a super low interest rate that won't be seen again for years and years - the more appealing option rather than selling their sub 3.5% interest rate home for some overpriced poop apartment or smaller but equally expensive home would be if all else fails... House hack! They will rent a room in their home to some poor millennial or Gen z before they sell their freaking house. It's obvious.

[@user-ob4em4ge6c]

Why do you think there's no inventory? Thats simply untrue. Your in denial. Inventory levels are healthy, and climbing, heading into winter. Inventory is not a problem.

[@BillySBC]

Completely ignores the hysteria buying price spike of the coronavirus period.

[@ROKKANS]

This didn’t age well

[@666THEMARK666]

Trust what BoA says lol

[@stevenap4594]

This housing market is nothing like the 1980’s lol

[@hectorrodriguez2686]

Easy holes poked on this self-serving propaganda piece from BAC. Inventories are the key. If locally you see inventories rising prices are coming down.

[@t-bone3657]

What a shock…democrats in office and the economy falls apart….😮 All by design btw

[@davidthomas8113]

Do your homework. The video makes references to two recessions 1980 and 2008. In 1980 Ronald Reagan was the president. 2008 George Bush left the office with the economy in a mess. Obama cleaned it up.

[@xnetgeek]

if you had a dime for every every...~ you'd have a few dollars.. let's not exaggerate.

[@JackieBaker]

😂

[@sew_gal7340]

dude reduce the memes it is so distracting and very annoying

[@flauze]

If there is no housing crash or return to affordability Jackie is gonna be out of a job

[@super8punk]

You ever talk about Gen X you boomer!