This Is Breaking The Housing Market...

"home builders are having to make a decision what do we do because building a home doesn't happen in 2 days it could take 6 months 12 months 18 months even 24 months to build a home depending on how big it is or if a home builder is building a whole neighborhood or a subdivision or an apartment complex it could take a long time and so not only do they have to look at where the housing market in the economy is today but now they're having to project out where is it going to be in 12 to 18 months"

"well in 12 to 18 months they could be sitting on this huge neighborhood that they're hoping they could sell the homes for less just say half a million dollar each but nobody's willing to pay more than $450 $450,000 per unit when now the home builder could potentially be underwater on the unit that they built"

"the sentiment right now is essentially that the federal bank will not raise interest rates this time around we'll see what they actually do but the sentiment is essentially that they will not raise interest rates this time around but they might raise them next meeting"

"if the Federal Reserve Bank continues to raise interest rates what is that going to do to mortgage rates that's going to continue to push mortgage rates higher and not only that that also means that mortgage rates will continue to stay high higher for longer"

"if that continues to have a lasting impact on the broader economy obviously that means that mortgage rates are expensive but that also means that it has impacts on the economy which means slowdowns in the economy which could also mean layoffs"

"nearly onethird or 32% of home builders had to reduce prices to boost sales in September that's higher than the 25% that had to cut their prices in August and this is the highest share of home builders cutting prices since December of 2022"

"almost 60% 59% of home builders had to offer some sort of incentive in September to incentivize a home buyer to go out and buy a home in 2023"

"Supply is low people don't want to sell their homes because if you bought your home and you got a 3% mortgage you don't want to go out and get a 75% mortgage today so you just want to stay in your home"

"home owners don't really want to sell and now home builders are getting a little bit more cautious on building which means the supply could potentially stay slower or lower"

"in the last few months we've been seeing inflation not fall but inflation has been rising in fact what we have been seeing recently is that inflation has been rising faster than expected"

"you're starting to see now the shifting tides in the economy you're starting to see the economy start to slow down you're starting to see unemployment start to go up you're starting to see the struggle on trying to bring inflation down and interest rates don't look like they will be falling anytime soon unless you see a major break happen in the economy"

"2023 is not the year for you to go out and finance a new truck 2023 is the year for you to go out and get financially smart this is the year for you to work to put some cash aside this is the year for you to work on your financial education"