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Summary

The speaker confidently discusses the real estate market, refuting the idea that it will crash despite rising interest rates. He explains the basic economics of supply and demand, emphasizing the current shortage of homes for sale and the high demand from buyers, which is driving up prices. The speaker, experienced in real estate, advises against waiting for a market crash, suggesting that it's a good time to buy or sell, and mocks those who wait for prices to drop, asserting that they are misguided.

Takeaways

• 📈 Interest rates have risen, causing a slowdown in the real estate market about 15-18 months ago, but a crash was not predicted by the speaker.
• 🏠 The speaker confidently stated that real estate values would not plummet, basing this on economic principles of supply and demand.
• 📊 There is currently a shortage of homes for sale compared to the number of buyers, which is the lowest inventory in 25 years.
• 📉 Despite concerns, the housing prices have not crashed; they have reached an all-time high of $379,000 median home price in America as of February.
• 🔜 Homes are selling faster, with an average time of 17 days to go under contract, down from 27 days.
• 📉 Interest rates for 15-year fixed-rate mortgages have recently decreased from over 7% to 6.16%.
• 📈 The total housing inventory has increased by 2% at the end of January and is up by 3% from a year ago, indicating more supply entering the market.
• 🛑 The speaker advises against waiting for a market crash or lower interest rates to buy a house, as the demand still exceeds supply.
• 🏡 It's a good time to sell a house due to the current market dynamics and high demand.
• 💬 The speaker emphasizes that his predictions about the real estate market have generally been accurate and advises to disregard fear-mongering narratives.

Q & A

What happened to the real estate market about 15 to 18 months ago?

The real estate market experienced a slowdown due to rising interest rates, which led to concerns about a potential crash in property values.

What did the speaker predict during the live stream 18 months ago?

The speaker predicted that the real estate market would not crash and property values would not tank, despite the rise in interest rates and people's concerns.

How did the speaker explain the stability of real estate market values?

The speaker used the economic principle of supply and demand, explaining that a shortage of an item (in this case, homes) leads to higher prices, and since there is a shortage of housing, prices would remain high.

What is the current state of housing inventory compared to 25 years ago?

There is less inventory of homes for sale now than there has been in the past 25 years, indicating a significant shortage of housing compared to the demand.

What is the current average interest rate for a 15-year fixed-rate mortgage?

The average interest rate for a 15-year fixed-rate mortgage is at 6.16%, which is down from over 7% a few weeks prior.

How has the unsold inventory and new listings impacted the market?

Although unsold inventory is still at a 3-month supply, the number of new listings is increasing, which is starting to bring more supply back into the market.

What trend is observed in the median home price in the United States?

The median home price has reached an all-time high of $379,000 in February, driven by low inventory and continued demand.

How quickly are homes selling compared to a month ago?

Homes are selling faster, going from being listed to under contract in 17 days, down from 27 days a month ago.

What advice does the speaker give to those considering buying or selling a house?

The speaker advises that it is an excellent time to buy or sell a house, and those who are financially ready should not wait for prices or interest rates to come down, as prices are unlikely to decrease.

What was the speaker's stance on Bitcoin when it was gaining popularity?

The speaker was critical of Bitcoin, calling it a scam from the start and comparing it to a multi-level marketing scheme.

How can someone find a trusted real estate agent according to the speaker?

The speaker suggests visiting ramsey solutions.com to find a Ramsey trusted agent for buying or selling a house.

Outlines

00:00

📈 Real Estate Market Analysis and Predictions

The speaker discusses the state of the real estate market, arguing against the idea of a market crash despite rising interest rates. They reference a previous live stream where they used data to support their claim that property values would not plummet. The speaker explains the basic economic principle of supply and demand, emphasizing the shortage of homes for sale compared to buyer demand, which leads to increased prices. They confidently assert that their prediction of a stable market has been validated, and they challenge those who doubted their analysis. The speaker also provides current data on interest rates and housing inventory, noting a trend of declining interest rates and an increase in housing supply, yet maintaining that demand exceeds supply and prices continue to rise.

05:02

🏠 Navigating the Real Estate Market in 2023

The speaker reflects on their experience in real estate since 1978, highlighting the unusual market activity during and after the COVID-19 pandemic, which saw a surge in home buying and bidding wars. They describe the slowdown in market volume but note that demand still outstrips supply, leading to record-high median home prices. The speaker advises against waiting for prices or interest rates to decrease, suggesting that potential buyers should act now and homeowners should sell while the market is favorable. They dismiss the idea of waiting for a market correction as misguided and encourage viewers to seek professional advice for buying or selling homes, promoting their platform for trusted agents.

Keywords

💡Interest Rates

Interest rates are the percentage costs paid by borrowers for the use of money lent by lenders. In the context of the video, the speaker discusses how rising interest rates initially slowed down the real estate market, but they have since started trending down, which is expected to re-energize the market. The speaker emphasizes that despite fluctuations, interest rates are a temporary factor compared to the long-term value of a house.

💡Supply and Demand

Supply and demand is a fundamental economic principle that describes how the availability of a product (supply) and the desire for that product among consumers (demand) interact to determine its price. In the video, the speaker argues that due to a shortage of homes for sale (low supply) compared to the number of buyers (high demand), housing prices will not crash but instead continue to rise.

💡Real Estate Market

The real estate market refers to the segment of the economy concerned with the buying, selling, and renting of properties like houses and apartments. The video focuses on the dynamics of the real estate market, particularly the speaker's prediction that the market will not crash and the importance of understanding the market's trends when buying or selling property.

💡Housing Inventory

Housing inventory refers to the total number of homes available for sale at a given time. A low inventory indicates a shortage of homes on the market, which can lead to higher prices due to increased competition among buyers. The video discusses how the current low inventory has contributed to rising home prices.

💡Median Home Price

The median home price is the middle value of all home prices in a given area or market, representing a typical market price. In the video, the speaker highlights that the median home price has reached an all-time high, reflecting the strong seller's market and the impact of supply and demand on pricing.

💡Market Correction

A market correction in real estate refers to a decrease in property prices following a period of significant increase, often due to market forces adjusting to overvalued assets. The speaker argues against the expectation of a market correction, stating that the demand for housing will continue to exceed supply, preventing a crash in property values.

💡Multiple Offers

Multiple offers occur when more than one buyer competes to purchase a property, often leading to higher final sale prices. The video describes a return of multiple offers in the real estate market, signaling a competitive environment for buyers and a seller's market.

💡Refinancing

Refinancing refers to the process of obtaining a new mortgage to replace the original one, typically to take advantage of lower interest rates. In the video, the speaker suggests that instead of waiting for property prices to decrease, buyers could refinance if interest rates drop, allowing them to lock in a lower rate on their mortgage.

💡Fear-Mongering

Fear-mongering is the act of deliberately creating fear or anxiety in people to influence their opinions or actions. The speaker criticizes those who spread fear about the real estate market, encouraging viewers to focus on facts and data rather than succumbing to unfounded concerns.

💡Ramsey Solutions

Ramsey Solutions is an organization founded by the speaker, offering various financial services and advice. In the video, the speaker promotes Ramsey Solutions as a trusted source for real estate services, encouraging viewers to visit the website to buy or sell a house.

💡Every Dollar App

The Every Dollar App is a budgeting tool designed to help users manage their finances. Mentioned at the beginning of the video, it represents the sponsor of the content and is used as an example of the speaker's broader financial advice services.

Highlights

Interest rates started going up and the market slowed down about 15-18 months ago.

The speaker confidently stated that the real estate market would not crash, providing data points to support this claim.

Basic economics principle of supply and demand was explained, relating to the real estate market's resilience.

There is less inventory of homes for sale compared to the number of buyers, creating a shortage and driving prices up.

The speaker predicted that the video would not age well, but instead, they were proven correct in their assessment.

Average interest rates for 15-year fixed rate mortgages have decreased from over 7% to 6.16%.

Total housing inventory has increased by 2% from the end of January and by 3% from a year ago.

Unsold inventory sits at a 3-month supply, and new listings are coming to the market.

Buyers are returning to the market, leading to a resurgence in multiple offers and an active real estate market.

The median home price has reached an all-time high of $379,000 in February.

Homes are selling faster, going from listed to under contract in 17 days compared to 27 days previously.

The speaker advises that it is an excellent time to sell a house, with demand exceeding supply and driving up prices.

For buyers, the speaker recommends not waiting for prices or interest rates to decrease, but to buy when ready as prices are unlikely to drop.

The speaker reflects on the rarity of multiple offers prior to 2020, and the surge in demand following the pandemic.

Despite a slow market volume, demand has continued to exceed supply, resulting in rising prices.

The speaker emphasizes that the real estate market is heating up again, with more demand than supply and multiple offers becoming common.

The speaker predicts that in five years, people will look back and confirm the accuracy of his current real estate market analysis.

The speaker advises against waiting for market corrections and dismisses the idea as 'hilariously stupid'.

The market's slow pace is attributed to demand still exceeding supply, leading to an all-time high median price for houses.

Transcripts

[Music]

brought to you by the every dollar app

start budgeting for free today the

interest rates started going up and the

market started slowing down

dramatically uh about 15 or 18 months

ago and we did a live stream where I

very emphatically said the real estate

market is not going to crash values are

not going to tank and here's how I know

that and I went through several data

points on the air and we had several

hundred thousand of you watch that live

stream and we covered some of that on

the air here to let you know that the

real estate market values were not going

to tank because a whole bunch of people

were really upset that interest rates

had gone up they felt that they that the

system had cheated them and they were

not going to be able to buy a home they

were frozen out of the Home Market and

they would sit on the sidelines and wait

on the real estate market to crash and

go down in value and I explain to you

why was not going to go down in value

and it was a very simple proposition

except I went into great detail I'm not

going to do right now but basically it

works like this when there is a shortage

of an item it's called Supply demand

curve in economics if you had a decent

economics class in the seventh grade you

learned this okay the supply demand

curve works like this when there is an

over supply of an item versus the

demand more more if you got a glut in

the market if the if you can get them

anywhere easily there's not a shortage

prices go

down when there's a shortage of an item

or a service in the market a scarcity

prices versus demand prices go up that's

basic economics

okay so items that are scarce go

up more often than not items that are

easily available readily available

widely available there's to many of them

produced go down in

value does that make sense everybody

kind of knows that that's kind of common

sense if you think about it so here's

the

deal the there is less inventory of

homes for sale versus the number of

buyers today than there has been in 25

years there's a shortage of

housing versus the

demand zero chance prices are going to

go down on houses during that time I

said that 18 months ago told everybody

that Dave that that video is not going

to age well after the crash you're going

to have to come back and tell people you

were wrong well instead I'm here going

na na na na N I freaking know what I'm

talking about okay there's a difference

all right I know a little about that

stuff I've got a degree in real estate

I've been buying real estate since

before any of you were born so hardly

any of you so spring is upon us it's

predicted to be another busy time for

Real Estate this is some stuff we just

picked up out of the press average

interest rates for 15year fixed rate

mortgages are at 6 16% right now down

from seven and some change just a few

weeks ago so interest rates are trending

down total housing inventory at the end

of January was up 2% and up 3% from a

year ago unsold inventory still sits at

a 3mon

supply and there is a tremendous number

of new listings coming so we're starting

to see some Supply come back into the

market that's what we're seeing but

we're also seeing buyers come back into

the market that were sidelined waiting

on interest rates to go down or waiting

on the crash and for people who don't

believe that I bid on a house uh a week

and a half ago two weeks ago and I got

out bid by four different buyers that's

there's a lot of multiple contracts are

coming back that's what the National

Association of Realtors is reporting

this okay low inventory has driven the

median home price up to an all-time

high prices went up they didn't crash

you were

wrong they went up to an all-time high

of 379,000 that's the median home priced

America in February homes went from

being listed to going under contract in

17 days um and they were at 27 days so

they're selling faster the market is

heating back up and uh this light move

an interest rate down the grass getting

green in some of the markets we're

seeing the real estate market heat back

back up we're seeing multiple offers in

big markets like Nashville

again and um let me tell you I got my

real estate license in 1978 the number

of years during that between 1978 and

now that you put a home on the market

and you got multiple offers was it's

been a very rare time but prior to 2020

we were seeing some of it and then of

course after Fouch pandemic we saw

people go

crazy and

they came out of their homes they were

quarantined and came out looking for new

houses like a Baptist looking for a

casserole they were everywhere man they

were running around like crazy and and

drove prices ridiculously up in 20 and

uh out of control I mean like TW like 89

offers on a weekend that kind of stuff

all right that y'all remember that

that's just a 20 that's just like two

two and a half years ago okay um and

then it chilled it just stopped and the

market has gone has continued to move

but it's very slow the volume has been

very slow but still demand has exceeded

Supply and we've seen prices go up and

now that the Market's heating back up a

little bit now we've yet again got even

more demand than Supply and we're seeing

multiple offers again so if you are

thinking about selling a house this is

an excellent time to sell a house as a

guy who's trying to buy one please sell

your house if you're thinking about

buying a house today you're out of debt

you have your down payment you're ready

to

go and the only thing you're waiting on

is you're waiting on the real estate

prices to come down or the interest

rates to come down don't wait go buy a

house right now if you're ready because

the prices aren't going to come down and

if the interest rates come down you can

just

refinance so you marry the house you

date the

rate that's how that works rate is

temporary the house is dead G so here's

the thing median house price alltime

high in history right

now interesting and you thought 2020 was

crazy and you thought 2021 was crazy all

right I'm telling you I'm not predicting

it to go nuts again but the idea that

some of you are still sitting around

waiting on this Market to correct is

hilariously

stupid you're that wrong and and David

it's not going to age well hey I've aged

pretty well in general there's a couple

things I've missed it on but I I pretty

much call it on a lot of these things I

told you Bitcoin was a scam I told you

from the start even when all of you

people that joined Bitcoin like some

people join Mary Kay y'all were driving

me nuts yelling and screaming at me like

like I insulted your Jesus or something

is crazy and it was a dadgum scam and we

knew it was a scam from the we know was

a horrible idea and yet you walked

around acting like you're sophisticated

and Dave rims you just doesn't

understand let me tell you guys this is

what's happening with real estate I

promise you you can look up this

particular YouTube five years from now

and you're going to go yeah that old

fart was right

again that's what you're going to do

it's exactly what you're going to do so

prices are going to go up rates are

going to go up and down up and down up

and down they always have and they

always will the only rate that that you

cannot adjust is mine my interest rate

on my mortgage is zero because I don't

have a mortgage that's the only one you

can

control so get the house get the house

paid off go to ramsy solutions.com get

you a Ramsey trusted agent to buy a

house or to sell a house right now and

quit believing all this fear-mongering

bull crap that's out there it's listen

the market is slow but demand still

exceeds Supply and it is still driven us

to an alltime High median price on house

those are facts that's called Data if

you don't agree with that you're what's

known as wrong

seriously so if you're going to buy a

house or sell a house best times right

now I told you that same thing 18 months

ago and I was right then too create your

free every dooll budget today the

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