The 2024 Real Estate Crash Is About To Get Worse (Homeowners are completely FROZEN in their homes)

The Existing Home Market is now essentially illiquid and many homeowners are frozen into place with no mobility. Rates are set to be higher for longer, and with new construction homes and apartments coming online, the new game in town will be New Home Sales while the Existing Home Sales market languishes. Share your thoughts in the comments below. Please subscribe, turn on the notification bell 🔔, and share this video with your network.

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[LarryCheungCFA]

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[scottarmstrong]

I remember in 2007 when I was working in real estate seeing people buy homes new from builders with the intention of selling before close of escrow to a new buyer for profit. The crash was so brutal and fast that I remember seeing a lot of these units foreclosed on with the builder plastic still on the carpet.

[DanieleAsch]

More immediately than a collapse in the stock or real estate markets, inflation directly impacts people's standard of life. It is hardly surprising that the present market attitude is so negative. If we are to live in this economy, we are in dire need of assistance. ETF and stock markets are still unpredictably volatile, just like the housing market. My $370, 000 portfolio has been reduced to rubble.

[censorshipagainstthemiddle]

Rather be frozen in my home than frozen in an apartment

[MarkLeonard-xnzs]

I predict a housing crash due to people buying homes over asking price, lacking equity if prices decline further. Foreclosure becomes likely if they can't afford the house, and selling won't yield profits. With anticipated layoffs and rising living costs, many individuals may face this situation.

[codeblue]

We can't ignore the potential impact on portfolios. Bonds are often considered a safe haven, and if they crumble, investors like me might scramble. I’ve been investing for 11 yrs and my $1m portfolio has never been this depleted, how i do hedge this?

[FrederickBlein]

Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. A trader made over $350k in this recession influenced market

[slymzqn]

Yeah but in Southern California, new 500 square-foot apartments are going for 500k minimum. I'd gladly take an 'older house' but they're going for 800k. I get paid 65k, have a college degree. I can't afford anything. What's going to need to happen to be able to afford anything? The home/rent prices need to go down. They've almost doubled in the past few years. Please do a deep dive on Southern California.

[Sandpaint]

Housing is not going to crash. Only new buyers will face high prices and interest rate making housing unaffordable for them.

[kevin]

My sister-in-law asked me about refinancing her mortgage, to lower the payment. She only owes about $55k and 15 years, but is now on a single income. I did some quick math and told her that if she refinanced for 30 years, the payment would actually go up. Totally not the answer she wanted...

And that is what is going to keep people in their current house! You would pretty much be forced to downsize unless you had massive amounts of equity now.

$375k at 30 years 4% = $2300/mo.
$250K at 30 years now = $2300/mo.
You just lost a lot of buying power... assuming you can't afford a much higher mortgage.

The sale prices don't reflect this quite yet, but they will. Everything works in a lead/lag kind of way.

[thedetective]

My SoCal house estimated value went up 25% on real estate websites and appears most SoCal houses did the same. There’s a house on my street that was purchased last year for $850k, and buyer made $30k in improvements and now selling for a firm $1.3 million.

[creativeconnectionU]

I definitely disagree with "the older the home the more the appeal fades for younger generations." everyone I know in my 30s wants a home with charm and character (old home) not a sanitized sterile new build.

[kaitlyncranwick]

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.

[whiskerjones]

Great content Larry! Keep up the great work.

[Dantursi]

In the current economic climate, a home is not the best investment. I've already sold my Boca Grande area home, but I want to invest roughly $200, 000 in stocks since I've heard that even in challenging times, investors may turn a profit. Any excellent ideas for stocks?

[rfs]

No one takes into account the rent that we pay while waiting for real estate prices to come down. Rent is about $30k a year. Real estate prices are not decreasing even that much per year!

[Grace.h-to]

A crash in the real estate markets has less of an immediate impact on people's standard of living than inflation or currency devaluation. That the market is so negative at the moment shouldn't be shocking. If we are to survive in this economy, we need assistance right away. The ETF and stock markets are still quite volatile, just like the property market. Now all that's left of my $370K portfolio is ruins.

[AB-fqmr]

In my town theyre now building 4 subdivisions next to each other on the same street. Its interesting to see the spec homes get cut $50, 000 (down to $499, 000) and still not sell four months later. The other subdivision is now selling the same homes for $450, 000 and offering 5% fixed rates for 30 years. It will be a clown show for sure.

[lesliejones]

I don't know about waiting until 2025... Our current tax code expires in 2025. Depending on what party is in office it could turn into a nightmare.

[maidiep]

Love your presentation ! It has echoed my thought that the interest rate will not go down soon, given such a big employment report for January, 2024 !