A job is not a job is not a job. I’m not sure single metric captures this but the income distribution is what we should be talking about.
@KarrinaTaylorBrown Says:
This person knows nothing. Interest rates here in Northern Virginia never got near to 8%. 6.5-7% yes. We are trying to accommodate the next generation bulge after a derth of building in the last 10-15 years. Consequently, everyone that I know is seeing 3-7 contract offers on each listing that they put on the market for any house listed in the desirable suburbs of Fairfax County, Alexandria and Arlington and surrounding areas. He is correct that sellers are not selling because nearly all people with a mortgage are holding 3% mortgage and don't want to sell their house. However, there are many more new households forming than we have houses to sell them. All the local jurisdictions are making changes to the zoning code to accommodate people legally making rental units in their owner-occupied homes.
This really does not feel like 2007, when prices had climbed to the previous peak in real estate prices. At that time, buyers were using adjustable rate mortgages and "option payment ARMS" which they did not understand. Consequently, once people bought a home, then they realized that they could not afford it. Now, nearly all the loans are fixed-rate loans which people have to be able to afford to close on the loan. And, with the employment market being so tight, we are not going to see a quick fall in prices. If (the idiots) lower the mortgage interest rates, then the housing prices will go even higher. Not good.
I am seeing older, single-family homes come on the market - thank goodness. Many of these older homes are owned by old people who are leaving the homes - either their lives are ending, or they are downsizing and going to live in relative's homes, retirement homes, or nursing homes. So, we are seeing some homes come on the market in this section of the market.
Budget condo prices are starting to come down a little. The budget part of the market is always more susceptible to monthly payments. And monthly payments are high right now, and so the prices of these properties are falling, slightly.
Also, there are a lot of luxury homes, priced over $2M. The builders have been making money taking down smaller older homes and then renovating or building new homes. So, there seems to be an oversupply in this segment.
Rents are unbelievably high too. So, there is no relief in the rental market.
I do see a few more foreclosures than I have seen since 2009-2013, and I am helping people out to sell their homes who are under financial stress. So, there are a few more cracks in the market than we have seen recently.
Some salaries are really high. I can't believe it, but there are over 20 Fairfax County government workers making over $200,000/year. I just learned from a head-hunter that executives for non-profits, think tanks, and associations are being hired at $300,000-$400,000/year. Defense contractors are making a fortune, and with the recent "aid' packages, these salaries are going to go up.
So, folks are going to continue to have to pay a LOT of money, and beat out the competition to buy a home here outside Washington DC.
@NicholasBall130 Says:
I sold a couple properties in 2020 and I'm waiting for a house crash to happen so I buy cheap. In the meantime, I've been looking at stocks as an alt., any idea if it's a good time to buy? I hear people say it's a madhouse and a dead cat bounce right now but on the other hand, I still see and read articles of people pulling over $225k by the weeks in trades, how come?
@albinothug Says:
Morgan is dead wrong when he says “the stimulus helped the poorest Americans the most.” The stimulus caused inflation, which hurts people who own zero assets… aka the stimulus checks hurt (in the long run) the poorest the most.
@albinothug Says:
“Strong job market”/“low unemployment” is a joke. People are working 8 different part time jobs/driving for Uber, etc. Job market is weak asf overall… it’s a k-shaped job market just like the k-shaped recovery after Covid. Our overlords want us to own nothing, be dependent on government handouts for survival, and to vote for/accept communism. They want us all dead or enslaved 🫳
@daevdel2993 Says:
good economy? bro are u blind, deaf, numb? or u probably just live in another planet. bruhhhh. thafuk
@Memes-du3fp Says:
FJB!
@beablos Says:
The market isn't going drop because of increased interest. people already own their homes and wont give up a 2.5% interest rate to move to a 7%. all the increased rates did was reduce supply by limiting forward mobility. New home building is also subject to the same rate increases as well as being directly impacted by inflation. when inflation drops we will see a huge increase in housing costs across the board. Big cities with $1,000,000 starter homes has more to do with the cities them no longer being sustainable. If you want to get ahead you have to leave the city and buy a home now and eat the interest then refinance the loan when the rates improve.
@MissBabalu102 Says:
The thousands of jobs found on INDEED are crap jobs, either $20/hour or just nonsense at a higher level.
@olivia_jane13 Says:
Sorry, but, no. The covid stimulus checks we got are a broken down used car. They amount to nothing.
@fpm8338 Says:
Look at those BIG ass ears
@mrsvenvath Says:
These people that speak, like only America exists, make me laugh, housing has never been cheaper in a lot of countries at the moment.
@user-gy3vf9le1u Says:
Boomer Delusion is about to end with them.
@corbinwalker7543 Says:
"Households in general are in better financial shape right now than they've been in a very long period of time" biggest crock of shit ever I cannot stand yuppies.
@SuperSattwik Says:
houses are selling well over asking prices.
@Mr-sweeny Says:
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.
@edmonddantes1761 Says:
Low unemployment? OK then why are all tech companies laying people off in the 10s of thousands.... better financial shape??? Is this dude smoking crack???
You don't have record high recession rates and mass firings with a 4% unemployment rate I dint carr what the gov wants to put out there for better PR.... trillions in stimulus???? Na man that all went to ukraine
@milenkovskim9939 Says:
😅😅This dude fell in love with Presidential candidate Kennedy 😅😅, people for attention will imitate even monkeys 🙈 😂😂😂😂
@michaels2502 Says:
Love Morgan’s books.
@sixbat282 Says:
Ever time you here you shouldn't buy a house now, you probably should. When interest rates go down late this year early next, the market is shooting up again. Get in now.
@Navak_ Says:
wait by this logic shouldn't home prices have gone down CONSIDERABLY in the late 70s/early 80s when inflation was really high? you say a 3% to 8% jump should cause a "30-50% drop" so surely the 18-20% rates we saw back then should have caused equal if not greater damage, no? but home prices did not decline in that era, did they?
@Calidastas Says:
What a clown. The market is very spotty. Whenever I see someone talk about “real estate” or “home prices” I know they’re a clown. I’ve developed real estate since the ‘08 meltdown. Every market is different. Even between different sized homes in the same market. Even within different neighborhoods in the same city. You talk about things at too macro of a level.
@opuadaabusi7354 Says:
The argument that rates and home prices cannot be high at the same time because it hasn't happened before is weak. Demand, population growth, education levels, employment opportunities, and an army of home owners with <3% mortgages is the perfect recipe for the current situation to continue indefinitely.
@valeriejacovides6246 Says:
Who gets a yearly 8% rate?
@bmoreblondie6301 Says:
We are waiting but for how much longer can we wait for idk
@sne47 Says:
I got out of touch, wolf of Wall Street ‘vibes’ with this hustler that’s got plenty of money in the bank and all smiles… yuck
@thanks4that261 Says:
Bad guest. He sucks.
@ChopperChad Says:
Been looking all my life for a backwards hat but every one I find is front facing. I don’t get it.
@BD-xi1tv Says:
People are in big financial trouble today, economic trouble is here.
@OOCASHFLOW Says:
Interesting but no idea who either of you are. This could really use a show description
@oliverallen5324 Says:
Imagine remembering the world before the Federal Reserve, and before the petro-dollar. The world existed before 2001. Boom busts are a Keynesian phenomena, and not inherent to capitalism or representative democracies.
@bellmattwebb Says:
It seems like the overarching system is the actual problem. 🤔
@danieldillon6436 Says:
Not true, I bought a house in 1992 and the interest rates were 9.5 % and the house was very over priced.
@factchecker1980 Says:
The BEST TIME to buy a house is always NOW. Don't use your hard earned money to pay off your landlords mortgage and investment.
@TheMountainBeyondTheWoods Says:
He's right about the housing market and recessions, but outstandingly wrong about the job market, the economy, the covid money, the mood of the people, and how everything is so good.
@mmtaraval Says:
lol, poorest people gained the most? This dude is smoking crack. Yeah, if I went from having 0 to $1500, that's a crazy high percent increase. Joker
@puddintame7794 Says:
If the government says the unemployment rate is zero... and cities are being gutted.
Is it racist to notice?
@thefutureisplaid3346 Says:
This dude clearly has no idea what he’s talking about.
@JC-nl3nh Says:
HUH? the poorest got way poorer
@user-pu2ho4ip3d Says:
You're going to live in 15 minutes cities.
There's your picture.
You have no say in it..so you might
as well get used to it.
You can talk till your blue in the face about it.
It won't change anything.
You're not in the same room, at the same table, with the people making these decisions.
We're the outsiders.. And you could not make yourself heard, no matter what.
@BS-vr6gz Says:
Morgan Housel is full of crap.
@jorgefitnessroad8302 Says:
In Portugal they raised debt to income ratio to keep this bs going, plus trying to take out the downpayment to 0 to increase demand lol
@PatamaGomutbutra Says:
There is nothing be like that forever esp the mania in any asset. At one pount if the housing is unaffordable - the cost in paper could not turn to a real food - that is a crashing point. With out correction, it will be crash instead.
@lextan7844 Says:
Look in around. Business closed and still you see you can find job. Open your eyes.
@rdahl1000 Says:
Bro has no idea what he is talking about. I’m 1 minute in and he quotes unemployment rate hahahahah
@ireneg1735 Says:
Be ye DOERS OF THE WORD and not hearers only deceiving your ownselves James 1:22
@bravura9.807 Says:
Morgan clearly hasn't taken a closer look at unemployment stats or the housing market.
@zacharyduguay3772 Says:
This makes sense, yet the Federal government is assuring me climate change will end the world so I guess I'll just hand over every cent I have to them now so our highly intelligent non captured politicians can save us from certain doom.
@RStone23 Says:
I bought a fully bricked nice new home on a quarter acre lot for $179k here in the state of Arkansas. I'm glad I bought it.
@cannaclubchicago2476 Says:
this guys a tool bag, Tom your show as of late has been getting worse with all these quasi capitalist selling the same doom n gloom, just copied from CNBC...
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