The Housing Market Is NOT Going To CRASH | Should You BUY A Home In Today's Market?

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The housing market is not going to crash, however there is a group of homebuyers we need to keep an eye on. The five reasons I do not believe the market will crash:

1. This is not the 2008 housing crisis.
2. 42% of homeowners do not have a mortgage.
3. 62% of homeowners that do have a mortgage, have a 4% interest rate or lower.
4. Institutional investors are buying up starter homes in the 300K - 500k range. These are typically the most sought after homes for first time home buyers, Millennials, Gen Z and Boomers who are looking to downsize.
5. Qualified buyers. Many folks who purchased a home in the past few years have high incomes and low debts.

The group we need to watch are the those folks who over extended themselves the past few years. I hope the economy turns around and people can alleviate some of this financial pressure.

Are there any other scenarios you think could create a potential crash in the market?

[DonaldMark-nese]

I’m a new dad, I moved to the Bay Area a few years ago and I’m thinking of purchasing a single family home, but with real estate prices currently through the roof, is it still a good idea to buy a home or should I invest in stocks for now and just wait for a housing market correction? I heard Nvidia and AMD are strong buys.

[AveryFossen]

People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Sure I'm not alone in my chain of thoughts.

[whitemakesright]

It's crazy that a "paid off" house that you "own" still costs you $600 - $800 a month. This country is a joke.

[BaileyJames-zvddd]

Most home owners don't have a mortgage and many home buyers don't need finance as far as I am aware.
I may be wrong.
If I am correct,
then the cash rate has less effect than the MSM suggests
on house prices
& the cash rate has less effect on house prices too.

[jfragz]

Wife and I (both younger millennials) bought an apartment in Brooklyn NY in 2020 for 565k with a 10% down payment locked in a 20 year fixed 2.625%. Needless to say we aren’t leaving until less we buy a new place in all cash.

Most people with good rates aren’t going anywhere.

[MyLifeInTheChi]

We also have an extra 25 million people in the country. Even if they can't afford to buy they are renting pushing rent prices up. Companies are now buying more houses to rent to them causing the price of homes to go up.

[brazildahl]

Corporations and hedge funds should never be allowed in our country to buy or own single family housing also that includes private independent parties/ people who do Real Estate portfolios hoarding houses, they should be taxed out of the ears to where it's not financially logical to keep all these houses that they buy and hoard for greed, if not ban it all together.
That was like when we were selling our house in Utah we had some people like that came and look at our house and farm, they were disgusting people regarding how they felt superior and acted it 🙄. It was a couple with their baby and they were just utter snobs and when we asked if they wanted to farm or what was their plans to raise what livestock, they looked at us like we were nuts and instead they said " god no, this is for maximus's (their baby) Real Estate portfolio".. the baby is only 4 months old and his real-estate portfolio has 30+ houses in it... needless to say we happily kicked them out the front door even though they wanted to buy the house for the price we wanted, we instead sold to our neighbor who enjoys using the home+ farm for her and her family.

[cashandraven]

The market is 100% going to crash, it won't be like it was in 2008 but the path we are on is simply unsustainable with the big corps buying housing and leaving them sitting empty at ridiculous prices. We have literally been through this exact same thing before, and guess what, the market experienced a harsh correction.

[jamesthelionheart]

The concept of a housing "market" to me is ridiculous. Like, bro, I just wanna buy a shelter for me and the fam. I ain't trying to gamble.

[jhouser]

Agreed. However, I see the housing market crashing, but not for another 10-15 years during the boomer die-off.

[tylermceachern]

I dunno, someone tried to approve me for a $500k loan ... which I in no way can afford. Tried to convince me to liquidate my 401k for it. Some people are going to listen to these folks.

[badass]

So we need to wait for another 10 years when the majority of loans will be at 7-8% and houses will cost 20x the median salary...

[nintha]

I’m one of those millennials who bought a house in 2022

We got lucky to lock in at 6.3% and do a 3.5 % down payment.

We didn’t overextend but the equity is at a stand still and we just had a baby causing us to just be in the line of comfortable and stretching our finances.

Rent in our area is atrocious and constantly going up each year hopefully we can sell in 10 years in a better market

[Imjusttryingtotellu]

That’s exactly my plan, stay in this starter for about 6-8 years and I’m looking in a desirable coastal town - begin renting it out and then when we are more established we get our dream home.

I’d like to get a point where I live in a home for 4-5 years and then rent them out over time.

A small house is all I need right now, so I can continue to build.

[turdmuffins]

The housing market probably isn't going anywhere, but consumer debt, inflation and the national debt are conspiring to create a whole bunch of misery for the middle class. Unless we are very vocal, it will be the same bailouts for the finance industry and everyone else can just accept what they get.

[joeybrown]

I have heard people saying dont buy the market is gonna crash for the past 6 years lol tbh If rates stay the same or go up. I can see a 10-15% correction in the housing market but nothing major like 2008. Honestly a 10-15% correction I think would be super healthy for the housing market

[jfree]

No market that the uber rich are heavily invested in is allowed to crash thanks to our government. A market crash is necessary to return to equilibrium pricing when the supply side has raised prices too high for too long. When it comes to the housing and car markets especially, they have hit this limit. Unfortunately, the government will bail them out with taxpayer-financed loans and tax breaks and credits. It's happened before, it'll happen again.

[CharityDiary]

Your 2nd point is key. People are buying while assuming that hybrid and remote work are here to stay — they're not. The economy has begun the downturn already, and in 5-10 years, businesses will be cutting almost ALL roles that are not on-site generating value directly. Huge chunk of the country will be forced to move for work, but won't be able to afford to, and this is what triggers the next crash.

[robertclark]

Buy the cheapest place you can afford and fix it yourself.

[tamara]

I love your videos, I find them quite informative even though I'm not a millennial or Gen Z. I thought I would share my conundrum as GenXer. I was super lucky, and got my house before everything went completely insane. was even lucky enough to refinance at a 2.9% interest rate. But when I bought the house (4 bedroom 2 bath, acre of land) I had a boyfriend, a roommate 2 cats and a dog. But now its just me, split with the boyfriend, roommate moved in with their significant other and I feel trapped with this house. I am totally overwhelmed trying to maintain it. I cant afford to pay for a handyman or a yard person. And its just too much for me to do myself. I've tried getting other roommates but things haven't been great and it's scary as a single older lady(49). Now, I could sell the house, and get a good price for it, but it seems insane to end up paying twice as much for a one bedroom apartment as I am for the mortgage + tax escrow on my current place. Like I know how super lucky I am and I shouldn't complain, but I'm honestly not sure where to go from here as none of the options are really seem good. This market is insane, I honestly don't know how the younger generations are going to make it. Are we moving to a nation of having to have roommates for the rest of our life just to get by?