Are Houses Becoming Affordable Again?

Let's break down and see if homes are becoming cheaper again!

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[nicolasbenson]

This happened with the 2004 housing boom - home prices were greatly inflated, meaning people couldn't sell later because they owed more on the house than they could sell for. I know quite a few people who bought then, thinking they were making a good investment to sell later, but it's taken until the COVID housing boom for the prices to come back to those original amounts.

[Dave_East]

I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?

[civicsport]

"If rates drop, people will enter the market" new home builders are offering interest rates way under market value, but those house are still on the market. People are not going to enter the market, because they want to see how low will prices go. They dont want to catch a falling knife

[Prophezora]

Its not just the mortgage its the insurance and taxes, heating/cooling etc...its crazy high prices.

[Mad-i]

Inland Empire área crapy house 1, 200 square feet one story, 2-3 bedroom 1-2 bath $400k-$425k just doesn’t make sense to buy with payments of $2, 500-$2, 700 ugly yard, need work, etc.

[mayra]

Here in the Fort Worth, Texas area, house prices are dropping and/or homes are staying longer on the market

[joseCalderon]

Nothing is more affordable, including all these overpriced homes. They need to go 30% lower. And then that 30% might not be much in some areas 😢

[luck]

In my area Builders are offering full closing costs and a 4% fixed rate and nobody is buying, lower rates will do nothing at least in my area

[angelavelazquez]

Downtown Prescott, AZ prices of homes under $500, 000 are not budging. Fixer upper homes originally listed over $800, 000 are selling for $500, 000.

[kosmiccandie]

We put our house for sale and we sold it in 11 days overasking. It just depends where you are buying.

[kristen]

So interesting…in my area (Fort Collins, CO) condo prices have dropped significantly and HOA fees have increased significantly. So it’s still looking more expensive overall than last year

[johnycane]

Where I'm at in DFW the list prices have dropped, but that causes bidding wars that drive up the cost past where the higher list prices were a few months ago

[lyannastark]

I've been obsessively tracking the MLS in areas I'd want to live for the past 8 months. Only looking at houses I'd actually want to buy primarily so I can get a realistic sense of whether or not I can get what I want in my price range. I had thought our market had stabilized, but I am seeing this month, that for the first time, almost every house I'm tracking is having significant price reductions. The only ones that are selling really quickly are the ones that are essentially perfect and also decently priced. I'm still probably going to wait until next year but it's been an interesting process to track.

[bayarearob]

Bay area and tri valley has always been crazy, but damn

[grumpyschnauzer]

Just as I'm listening to you I had to lay on my horn because some driver was being totally irratic... and so that leads me to an observation I've notice. A lot of for sale signs and lease signs are going up... multiples on a block. The prices are about $100k higher than what was comparable last August for the same type of place in a better area. The only thing is there really isn't much going up in the desirable areas abd more going up in the ghetto areas... so just something I've noticed in my metropolitan suburb.

[asns]

Hey Javier. Great videos. One idea for a video that would be interesting to hear your perspective on is when is it the right time to refinance? Say you bought a year ago at 7%, and now you can get a rate closer to 5%. Should you refinance? My perspective is coming from Canada which is a little different from the US in that we have different options for mortgages. Variable and fixed, and fixed rates are usually for 3 or 5 year terms. Usually terminating a mortgage before the end of that term will result in a pretty significant penalty (usually known as the interest rate differential). This is added complexity that you don't need to address in your video, but curious to hear what you think on when someone should consider refinancing when interest rates seem to be coming down.

[AlVelasquezDrums]

This resembles 2008, but with 1 major difference… corporate & Airbnb’s home investors didn’t exist. Many of my friends currently have mortgages at 2.5%. The only way they say they will consider selling is if they receive huge offers and then buy smaller homes with cash. I’m concerned that lowering the interest rate will add fuel to Home price inflation fire. Only distressed home owners will sell.. and since so many are locked into low interest rate homes… I’m sorry to say I feel the Fed will need to keep the interest rate where it’s at until Dec.
if that occurs, I’m convinced prices will drop but many will be out of work. That’s what the Fed meant by “pain” last year. Move slowly and with caution. PS. Buy Down @ least 1 point on your mortgage & make sure the mortgage agreement DOES NOT have an early pay off penalty. Knowing just this will save you thousands.

[Shaimun]

Not in South FL. ugly ass houses are still being sold for 400k and the decent priced home have a stupid high amount of HOA per month. South FL sucks. Palm beach county area still has these absurd prices.

[Sparklesme]

In NYC and NJ prices are down max 10k but still expensive and property taxes are ridiculous high

[leosotelo]

A house around my block in oc was listed for $840k and sold for 930k this week. maybe in bad areas we will see prices go down.