'Housing Hurricane Coming' - 8% Interest Rates Threaten To COLLAPSE U.S. Housing Market

Perhaps now isn't the most opportune moment to purchase a house in America. Patrick and Tom delve into the real estate market, offering their insights on when the optimal time to buy a home might be.
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Patrick Bet-David is the founder and CEO of Valuetainment Media. He is the author of the #1 Wall Street Journal Bestseller “Your Next Five Moves” (Simon & Schuster) and a father of 2 boys and 2 girls. He currently resides in Ft. Lauderdale, Florida.

[OnlySteven]

I’m in San Jose and the housing market here over the last 7-8 years is unlike anything I’ve ever seen. Homes that were bought for $130K in 2015 are now being sold for $590k. I’m talking about tiny, disgusting, poorly built 950 square foot shit boxes in quiet mediocre neighbourhoods. Then you’ve got Better, average sized homes in nicer neighbourhoods that were $300K+ 10 years ago selling for $750k+ now. Wild times.

[kortyEdna]

Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. 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. Pretty sure I'm not alone in my chain of thoughts.

[Riggsnic_co]

I’m in Ohio and the housing market here over the last 7-8 years is unlike anything I’ve ever seen. Homes that were bought for $130K in 2015 are now being sold for $590k. I’m talking about tiny, disgusting, poorly built 950 square foot shit boxes in quiet mediocre neighborhoods. Then you’ve got Better, average sized homes in nicer neighborhoods that were $300K+ 10 years ago selling for $750k+ now. Wild times.

[Mrshuster]

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.

[Susanhartman.]

Keep in mind that during the 80’s people were encouraged to save due to the interest rates. Right now there’s very little incentive to save because those who are saving are watching those who are reckless taking it in. I’ve been trying to save for a home and it’s been discouraging to watch prices continue to not budge because there’s people willing to get into a mortgage where they’re paying 40% of their income. It’s insane.

[vikingraiders]

Some states are starting to do the right thing and pass laws to ban investment firms from buying houses

[tonysilke]

Mortgage rates are currently at an all time high since 2000(23 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market

[Patriciacraig]

I foresee a recession lasting 2-3 years, and if inflation continues to surge, the Federal Reserve will likely raise interest rates soon. Inflation is causing various issues worldwide, such as food shortages, scarcities of diesel and heating fuel, and significant spikes in housing prices, leading to a potential financial market crash. This global downturn could have long-lasting repercussions. Given the current inflation rate of approximately 9%, my main worry is how to optimize my savings and retirement fund, which has remained stagnant at around $300, 000, yielding almost no gains for quite some time.

[matturner]

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.

[bernadofelix]

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?

[jeremybaldwin]

Buying a house right now is a 100% scam.

[jerroldbates]

Average working people can't afford homes.

[lucasm]

We need to stop allowing non-citizens to purchase real estate. That is such an insane thing that who the fuck knows why it's been allowed to go on for so long. Just absolutely ridiculous that people from all around the globe can own property here but yet it's practically impossible for my generation to own a home.

[russelllowry]

my first mortgage rate was 10.5 percent, but the 1700 sq ft. house cost me 63, 000. Artificially low rates for two decades are responsible for these home prices. It will be painful, but if there is not a drop in housing prices, they are unaffordable for the middle class. That is not a good thing for future social issues. Higher interest rates, encourage savings and discourage debt. America has been on a debt binge. Government spending needs to stop, and entire agencies eliminated, and debt paid down. We all know this won't happen, so the collapse in near.

[leecanon]

You’re forgetting that Corporations have been buying up the inventory. They don’t care what the interest rates are.

[_davidturner]

I’m a new dad, I moved from Tampa to Santa Clara a few years ago and I’m thinking of purchasing a single family home there, 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? Looks like NVDA, TSM and AMD are still strong buys.

[same]

Blackrock outbids every buyer with cash offers. No way the average buyer can compete.

[bighock]

I laughed when I took out a mortgage and they asked if I wanted a fixed rate or a lower variable apr. Im like, who would opt for a variable rate? They said, oh a lot of people, since the rates never really change... It was 3% back then. I think if you assume the worst can happen, you tend to make smarter decisions and take more defensive positions.

[zmcdaniel]

Interest rates AND higher prices make it unaffordable for most Americans to purchase. Renting isnt any more affordable either. Where I live, a 1 bedroom apartment is $1200/month. 5 years ago it was $700/month

[arby]

There’s no more home ownership for the upcoming generations, get over it. Don’t even think of retiring, just work, eat, sleep, repeat until death.