The Housing Market Is About To Go Wild | DO THIS NOW

Zillow and other Tech Firms are now racing to buy as much US real estate as they can, also called iBuyers - here's what this means, how it impacts the housing market, why stocks hit all time highs, and how you can use this information to make money - Enjoy! Add me on Instagram: GPStephan

The YouTube Creator Academy:

“Zillow, Other Tech Firms Are in an ‘Arms Race’ To Buy Up American Homes.”

Vice reports that “the race is ON among tech firms to gobble up U.S. housing stock and dominate the increasingly competitive high-tech house-flipping market, otherwise known as the fast-growing “iBuyer” industry”…and, if you’re confused, here’s what you need to know:

Websites like Zillow, RedFin, Offerpad, and OpenDoor are doing ANYTHING they can to expand their marketshare and gain dominance as the go-to real estate mega-hub…and, to do that…they need inventory…at whatever cost it takes.

HOWEVER…the piece of information VERY few people talk about and acknowledge isn’t so much the LOSS of buying and selling a home on their platform…but, instead..how much they can charge for the DATA, knowing that a seller is eagerly trying to list their home.

It’s no surprise, Zillow generates a SIGNIFICANT amount of their revenue from advertising…and, now that they can better identify the sellers who are on the edge of their seat looking to sell…they can SELL that information to third parties…at a hefty cost.

The DOWNSIDE, for YOU - is that, beyond competition with every day buyers, investors, and pension funds…you could now be competing with iBuyers, who don’t mind overpaying because they’re funded by Venture Capital, and any loss THEY take is simply the cost of doing business. But, I have a feeling they’re not so much doing this to make money flipping homes - but, instead, pay the cost of gaining marketshare.

Second: THE STOCK MARKET HIT ANOTHER ALL TIME HIGH
This also coincidences with The Hindenburg Omen, which is technical analysis that was designed to signal the increased probability of a stock market crash, by comparing the ratio of new 52-week highs against 52 week lows. HOWEVER…even though there has ALWAYS been a Hindenburg Omen before a crash, there has not ALWAYS been a crash after every Hindenburg Omen”…and, because of that…it’s only been accurate…25% of the time since 1987.

So, needless to say…it’s certainly NOT a reason to panic…BUT, if it makes you feel better investing near or at an all time high - just consider this:

Since 1950…the market has hit an all time high 7.5% of ALL TRADING DAYS…and, If we include the time the market spent within 1% of its all-time highs for the same time period, the market was at or near all-time highs 1 out of every 5 trading days.

In addition to that…from 1988 through 2020…investing cash at all-time highs paid higher returns for all 3 time periods when compared to investing on a random day…basically pointing at the fact that, it’s still better to be invested in the markets…than it is to be holding on to too much cash, waiting for the market to drop because The Hindenburg Omen surfaced on Yahoo Finance.

My ENTIRE Camera and Recording Equipment:

[willb]

My grandparents told me 40 years ago, put your $$$ in land, they arent making any more of it.... Glad I listened

[MichelleMarki]

Just call us rent-ennials and Gen Zillow

[ZacharyBuhler]

I watched my parents lose everything they had because they weren’t smart with their money. I decided to stop that cycle and I purchased their home and built them a studio apartment so they can live there for the rest of their lives not having to worry about money anymore.

[GrowthMindsetChannel]

“Money does not buy you happiness, but lack of money certainly buys you misery.” ~ Daniel Kahneman 💪🏻🚀

[DapperDividends]

I think a bear market is now defined as when there aren’t two new highs in a week.

[drathen]

I read an article a few years ago about companies or investment funds that were buying up properties like crazy. One owned, I believe, 70k SFRs and another owned 50k which is insane. The article mentioned that in some cities these companies owned entire subdivisions or neighborhoods and were able to control rent to the detriment of the residents. It sounds like nowadays there are more and more companies buying homes which greatly reduces the supply and increases prices for normal peeps.

[stephen-finance]

Definitely a difficult and frustrating time to be a hopeful first time home buyer, or to try to get into real estate investing.

[kurichai]

I’m flabbergasted how much my home is “worth” currently. It feels WRONG. It’s a tiny patio home in the southeast. I paid 116k when I bought it in 2005. In this current market, I could list it for $174k at least. It’s not even 1300sqft. Insane!

[stephen-finance]

This video covers everything anyone could hope for: real estate, stocks, and Spongebob!
Way to cover your bases Graham! 😂

[A.M..]

I left his channel months ago and graham is still at it.. this guys work ethic is scary.. and the quality of his videos hasn't changed much. The info is still news to me

[ShiningSakura]

I can attest to graham not exaggerating on ALL CASH, ABOVE ASKING, SIGHT UNSEEN, ETC.... got beaten out by several of these offers. IT SUCKS to be a first time buyer in utah right now. 20% downpayment is meaningless these

[ShawnLH]

I’m here in Las Vegas the same as graham. The real estate market here is absolutely insane. Houses on market 2-4 days MAX

Cali buyers buy houses cash only no matter what it costs. Muscling out newbs like me. It’s such a nightmare

ABSOLUTE DUMPS of a house are twice the price they should be because of the housing frenzy

I have about $60-70k for a down payment. But I don’t even know that’s enough

[MAGICSIX]

The market is insane, even getting of New York seems a challenge for the middle class. My rent used to be more than some mortgages, but now it seems everything is unaffordable.

[ChrisW]

I must have found the elusive “bubble”. Middle class and bought our current home in 2015. I had to stop working in 2017 (medical) and we’re still doing fine, living pretty much the same. Good friends just bought and sold a home pretty normally this summer. We have always been financially responsible, lived below our means, own older cars, don’t go on expensive vacations, etc. I don’t know how much things like that have to do with things, but even though my husband lost his job due to COVID just like everyone else, we stayed in the black even with huge medical bills.

We pay with credit cards because we get such great cash back, and then pay off the balances every month, avoiding interest.

We won’t be millionaires - aren’t trying to be - but we also never had anything foreclosed, repo’d, etc., and never got close to worrying about it happening.

Trust me when I say we are NOT lucky people. I really think realistic expectations, smart decisions, and caring more about experience than possessions is how we naturally maintain a very nice life regardless what the rest of the country is doing.

[mikehallrealestate]

zillow/opendoor are generally really bad at selling their homes. So their losses per house are exacerbated. You can immediately tell an ibuyer home when you walk in it, junk repairs and presentation. This isn't something that's talked about.

[alecbailey]

Next video intro, "What's up inflation, its the lost middle class"

[buzztrucker]

They are leveraging the time value of money. When they get their little cut (Zillow, Offerpads, etc.) from listing and selling your house for whatever little markup and they are investing that money somewhere else with a quicker return.

[Ericliaoo]

Poor Spongebob about to get devoured by his best bud Patrick

[alaski]

I shall now forever watch your videos at half speed

[practicalgigabit]

What he is trying to say is... its good to be a home seller, since ibuyer users are purchasing homes at a higher price.