Boy, oh boy, moody's says the housing correction will now reach quote coast to coast and says that areas specifically that should be worried are the southeast and mountain west regions which could really expect the biggest swing backs, including locations like phoenix, tucson, arizona, the carolinas northeast florida And boise boise of which they call the quote most overvalued market in the country. But it's no surprise, folks that when interest rates skyrockets sapping about 40 percent of buyers, purchasing power of evaluations are already substantially higher than they have been in the prior few years. Thanks to the pandemic and stimulus infused craziness that we've seen in the market, it's no surprise that we're starting to see some forms of cracks. Just a few days ago we talked about lennar's earnings report and how, when lennar reported earnings, they told us about three categories of significant market degradation happening in the real estate market, but we finally have a new update from the redfin data center.

So the last update we had from the redfin data center was june 12th and it was price drops for all markets within the united states, and i've been waiting for this new update. That just came out because if we see a spike in price drops and then we see a flattening or an inflection point down, it means okay. Maybe we just had a temporary like quick adjustment with price drops, interest rates did their damage, and now we're done with price drops right. Well, what inspired me to look at the redfin data center was.

I was just in a course member live stream with the course members and one of the course members asked hey kevin. You know. I've got a million dollar property paid about 450 000 for it back in 16, and it's in arizona and uh we're. You know we're trying to sell it.

It's been on the market for two weeks. We just did a forty thousand dollar price reduction and uh. I looked at where they were and i started getting a little nervous because there were a lot of properties for sale and the sales that had been occurring were probably escrows from april. So it didn't look like we were necessarily seeing a big ramp of recent sales and a lot of active competition, and almost all of the active competition was cutting their prices, and this is where i said: hey.

You might be in a place where you let the market make the decision, for you go crazy drop. The price 90 000 bucks go to 849, try to get multiple offers that way. At least you can get out with multiple offers, and hopefully you still multiple offer up to like 900, 910, 920 or whatever, which is kind of close to what you're listed for now right. But now after i heard about this story and that strategy by the way is a strategy that i've personally undertaken, because i like to have a low day on the market, a factor - this is something we talk about in the real estate agents course that i have, As well because the first question every buyer asks you is how many days has this property had been in the market right but anyway, so this inspired me to look at the redfin data center and see okay like what's the latest data.

Are price drops inflecting down? Are they flattening what's happening on national basis right? So it got me really excited, do keep in mind. That course coupon code does expire tonight and the prices go up again. They go up about every three weeks. You always lock in the cheapest pricing.

When you join now, uh, that is, pricing will never go down in the future. It just goes up, as we add more value. Okay, take a look at this, so june 12th is where the little dot here is. This is for all metros in the united states on average right look at where it went it didn't flatten, it didn't go down, no folks boom, it went up again.

Let me show you that here this is where the dot is the top. One is a percentage of listings with active price drops. You can see that percentage popping moving very quickly here and at the bottom you see that year-over-year change and if we kind of move from where that dot is all the way to the tippy top, we can see that we've now moved between 612 and 619. Just a week later, we've moved a substantial chunk to the upside here.

I really think that in about three months time, rather than seeing six percent of homes with active, uh price drops compared to two percent, we've already tripled the number of homes with price drops right. Uh - and this is across every market in the united states, rather than seeing it around, six percent will probably be around 20 to 30 percent. Like this, this line will be going off. The charts, in my opinion, cool thing about the redfin data center.

Remember this as well is you could go in here and you could type in any market that you want. You want to type in seattle. You can see the same thing happening here. What about los angeles, los angeles was one of the last places to show it, but look you can see it here now as well.

You go to austin texas, an area where we're starting to see inventory pile up as well. Look at this we're almost at what are we at nine percent, now 9.3 of listings have active price drops out in austin right now, that's above average right you go to san diego. Let's try tampa after that san diego. Now, almost at eight percent and uh tampa thereafter, then we got to talk about canada too, which is just crazy.

Oh whoa, look at that tampa is over 10. 10.8 percent. So you see that very clear inflection point. Folks.

Changes are happening in the real estate market. You better get yourself prepared for these changes in the real estate market and, if there's any example of potentially what's to come, it might be what's happening in canada. Now canada kind of shrugged off the great financial crisis they their home values, have tripled since 2020.. In the united states, our home values have really only gone up about 60 percent since uh since 2020.

We had that great financial crisis reset well so far home prices in toronto, major capital city, obviously in in canada, uh for the the ontario region. Down about three months in a row, the median price for a home is now 10 times the median household income. This is the highest ratio we've seen in canada since 1980, and we are expecting that now the median mortgage takes 75 percent of your household income to afford and we're starting to see what they're calling a transition. The economists refer to this as a transition from housing.

Fomo to that is fear of missing out to fear of getting screwed, and so what we're seeing is an increase in price, drops we're seeing actual closings down we're, seeing cancellations up and we're seeing fewer speculators now get into the housing market, as they see uncertainty in The market ahead, which means less competition for those homes that do come available now, economists, the economists sites, so that oxford is predicting a 25 decline in the next two years for real estate 25. That's a pretty substantial correction in canada. Now we're not too sure. If the united states is going to follow in these footsteps, but boy - oh boy, that's a big warning shot coming from our neighbors in the north here in canada.

Now, keep in mind we're going to keep watching this redfin data center sentiment, uh in markets, we're going to watch that 10-year treasury yield, which did come down about 3 30 basis points actually from about 3.4 to 3.1 today, which is good that actually helps lid mortgage Rates but usually over the long term, you tend to see the federal reserve's fund rate at the fed funds rate and the 10-year treasuries converge. So if we get a 4 terminal fed funds rate, we might get that 4 terminal 10-year treasury as well, though jp morgan thinks the 10-year treasury might be going down not up we'll see. That's speculative jp morgan also doesn't think that there's going to be a recession, they only see a 35 chance of a recession over the next 12 months, which is like one of the lowest on wall street, so maybe take their info with a grain of salt. But in my opinion, it's exciting because it creates the opportunity potentially for getting into a less competitive housing market buying fixer-uppers getting wedge deals, learning how to buy deals below market value and fix them up appropriately, whether it's single families or multi-families and getting out there making Money because that's the whole point of a recession is we have an opportunity, those of us who have the the mind, the willpower to invest and the incomes, and hopefully, some savings to support that we can take advantage of these sorts of opportunities that get presented to Us in the marketplace, and if, for whatever reason, you need help identifying those or you want a massive discount uh program that we have with lowe's, you want access to our daily live streams where we review real estate or stock analysis on a daily basis.

In our live streams, plus all the recorded lectures and you can watch the live streams on replay as well, we got over 5000 people that usually do regularly watch our live streams on replay folks check it out down below there's a coupon code that expires tonight, which Just means the price is going to be going up and you should take advantage of that coupon before the price goes up, so you lock in the best price thanks so much for watching and folks, we'll see in the next one bye.