The Largest Housing Crash Is Coming | Why I Sold
Published: 2022-08-03
Status:
Available
|
Analyzed
Published: 2022-08-03
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
Housing prices are expected to stabilize over the next one to two years, neither significantly declining nor increasing.
"I think we're going to see just complacency in the marketplace for the next year or two so prices will have stabilized I think they'll just continue to stabilize I don't think they'll go down but I I also don't really don't think they'll go up"
Pending
The current housing market may follow a trajectory similar to the 1970s, where nominal prices increased but real returns, adjusted for inflation, declined over a three-year period.
"the calculated Risk blog pointed out that we could be following a very similar trajectory to real estate prices in the 1970s which were also plagued by Rising prices skyrocketing mortgage rates and high inflation but here's where things get interesting during that time home prices continued going higher in terms of a dollar amount but real returns when accounting for inflation fell by 11 over three years meaning home prices went up but the net value declined"
Pending
Home prices have increased by 1.8% above inflation, aligning with historical averages.
"median home prices are up 10.9 percent year over year but inflation was 9.1 meaning home prices only increased by 1.8 percent above inflation which is completely in line with the historic average"
Pending
Home values are expected to normalize and stop their indefinite rise.
"most likely home values are going to begin to normalize from here on out without prices just continuing to rise up indefinitely without Merit"
Pending
Rental prices have started to stabilize, though they remain significantly higher than two years prior.
"rental prices have begun to stabilize even though there's significantly higher than they were just two years ago"
Pending
Rent increases in metropolitan areas are slowing down, and in some cases reversing, due to subsiding demand.
"metropolitan cities run increases have finally begun to slow down and in some locations even reverse as demand begins to subside"
Pending
Average rents for two-bedroom apartments have decreased by 2.9% after a prior 12% year-over-year increase.
"after rents went up 12 percent year over year on the average two-bedroom apartment they've begun to come back down with a decrease of 2.9 percent"
Pending
There is significant investor interest in multi-family real estate as a hedge against inflation, utilizing low-interest mortgages and tax advantages.
"there is no shortage of investors out there with Deep Pockets looking to buy multi-family real estate to hedge against Rising inflation by leveraging Cheap mortgages with large tax deductions"
Pending
The current year is the last opportunity for 100% bonus depreciation, which is expected to drive investor activity in the market.
"this is the last year for 100 bonus depreciation so that's going to prompt a lot of people to enter the market knowing that this opportunity is only going to last another few months"
Pending
Home buyers are now in a position to negotiate lower prices and have more options available due to increased property listings.
"as a home buyer today fortunately you'll be in a position where you can finally begin to negotiate on deals you could offer a lower price and if you miss out on something no worries because most likely there's going to be another property listed shortly"
Pending
Sellers are adopting more aggressive pricing strategies and are more willing to consider offers below the asking price, rather than expecting multiple bids.
"I think they're pricing more aggressively now I think they're not as emboldened uh to come on the market and expect multiple offers I think they're considering their first offers now and considering offers that are under the asking price"
Pending
The housing market may be mirroring the 1970s, characterized by rising prices, high mortgage rates, and inflation.
"the calculated Risk blog pointed out that we could be following a very similar trajectory to real estate prices in the 1970s which were also plagued by Rising prices skyrocketing mortgage rates and high inflation"
Pending
Mortgage rates have stabilized and are even showing a decline to 5%.
"mortgage rates have begun to hold firm and even declined to five percent"
Pending
Demand has slowed due to interest rates, leading to a considerable drop in transaction volume. A return to normalcy is anticipated within the next six months.
"interest rates have slowed demand certainly especially in the lower price points I've seen and I think we're Homeland probably 20 escrows at a time or probably in like five or six escrows right now so uh volume has dropped considerably you know this is like kind of that nervous period for the next six months and then I think we'll get back to like a a normalcy"
Pending