Two common questions I get: When will the real estate market drop in price, and should I wait for the market to drop before I buy? So this is my perspective from both a real estate agent and investor. Feel free to add me on Snapchat/Instagram: GPStephan
The way I see it:
People have too much equity in their homes to let them go into foreclosure. Banks are strict about who they’re lending to, and want people with higher down payments and strong income. In order to qualify, a buyer must pass a rigorous approval process reviewing their financials, income, credit score and history, assets, and debt. They do not let just anyone buy a home now. I don’t see anything that leads me to think we’re in a bubble.
In addition to this, we have low interest rates which are holding prices fairly steady. If this climb too fast, yes, it could have a short term impact on pricing - but there’s no way they’d raise interest rates that quickly to disrupt housing prices. It’ll be done slow and steady over many, many years.
Realistically, we’ll see many more homes in construction coming on that market. This will lead to an over supply of homes which means buyers will have more leverage and more to chose from. This won’t cause housing to crash, but it could take longer for a seller to sell a house because they’re facing more competition.
This, combined with slowly rising interest rates, I believe that housing is safe and won’t see any type of large price drop. Realistically, there won’t be any price drop, but we won’t be seeing huge appreciation like we were over the last 7 years - which is not sustainable to begin with. I think we’ll enter a period where normal, slow appreciation is the norm as more homes come on the market and interest rates slowly get higher. No reason to panic and nothing out of the ordinary.
*Just my pure opinion, of course. Do your own research and come to your own conclusions. This is only from my perspective.
Thanks so much for watching!
For business or consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
Suggested reading:
The Millionaire Real Estate Agent: http://goo.gl/TPTSVC
Your money or your life: https://goo.gl/fmlaJR
The Millionaire Real Estate Investor: https://goo.gl/sV9xtl
How to Win Friends and Influence People: https://goo.gl/1f3Meq
Think and grow rich: https://goo.gl/SSKlyu
Awaken the giant within: https://goo.gl/niIAEI
The Book on Rental Property Investing: https://goo.gl/qtJqFq
The way I see it:
People have too much equity in their homes to let them go into foreclosure. Banks are strict about who they’re lending to, and want people with higher down payments and strong income. In order to qualify, a buyer must pass a rigorous approval process reviewing their financials, income, credit score and history, assets, and debt. They do not let just anyone buy a home now. I don’t see anything that leads me to think we’re in a bubble.
In addition to this, we have low interest rates which are holding prices fairly steady. If this climb too fast, yes, it could have a short term impact on pricing - but there’s no way they’d raise interest rates that quickly to disrupt housing prices. It’ll be done slow and steady over many, many years.
Realistically, we’ll see many more homes in construction coming on that market. This will lead to an over supply of homes which means buyers will have more leverage and more to chose from. This won’t cause housing to crash, but it could take longer for a seller to sell a house because they’re facing more competition.
This, combined with slowly rising interest rates, I believe that housing is safe and won’t see any type of large price drop. Realistically, there won’t be any price drop, but we won’t be seeing huge appreciation like we were over the last 7 years - which is not sustainable to begin with. I think we’ll enter a period where normal, slow appreciation is the norm as more homes come on the market and interest rates slowly get higher. No reason to panic and nothing out of the ordinary.
*Just my pure opinion, of course. Do your own research and come to your own conclusions. This is only from my perspective.
Thanks so much for watching!
For business or consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
Suggested reading:
The Millionaire Real Estate Agent: http://goo.gl/TPTSVC
Your money or your life: https://goo.gl/fmlaJR
The Millionaire Real Estate Investor: https://goo.gl/sV9xtl
How to Win Friends and Influence People: https://goo.gl/1f3Meq
Think and grow rich: https://goo.gl/SSKlyu
Awaken the giant within: https://goo.gl/niIAEI
The Book on Rental Property Investing: https://goo.gl/qtJqFq
Create videos on cheap travelling which cards to use.. air miles or cash back travelling guide
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Global crisis 😂😂😂
Welcome covid is here now and market is crashing. Your words are coming back to haunt you
Graham, how would you say your predictions have turned out from this video?
Graham: "The only thing that I can see that would cause real estate to totally crash is any sort of war or like any sort of global crisis."
2020: WW3 memes
crazy! i wore the same crew neck from TH in my first youtube video lol
Can you do an update on this video? 2019/2020 version posting this exactly two years later
I predict you’re not wearing pants at all.
Thank you.
I sold out on Feb 11th.
Underwear and sox?
Looking at the current climate do you still think the bubble isn't going to burst? Statistics are saying that home buying is slowing down and interest is rising.. just like the last bubble. Any thoughts?
I see hosing prices coming down a minimum 20% by 2021. Lets see who is right. I am seeing 10% price cuts now (1st quarter 2019).
looks like household debt is now at an all time high (March 2019).
And now 2 years fast forward. Nov 2019. Looks like a super cool down in housing. Now lets look 2 more years ahead, extreme cooling in 2019 hmmm?
Bs im still gonna wait to buy
Just saw this in Nov 2018. Well done Graham!
Hi Graham. Just found your channel and love it. If you have a 150 k downpayment and only need to finance 50 k to buy your own first house, should the 50 k be financed by your own bank or by a loan officer which you never dealt with before?
The housing will burst because the tech bubble will burst everyone will start going to school for the same job and would make the tech market less profatable so the question is when will the tech bubble and silicon valley come down to earth
Hi Graham, would passing Proposition 10 and 20% import tax increase from China cause a real estate or economy crash?
We have literally been at war since 2003. 😂😂
2020 is when the bubble will burst
I can’t wait for the crash 👏🏼 housing prices are absolutely ridiculous in Canada right now.
Is it true banks can call a note on a morgage to pay in full when real estate market crashes? ??
Enjoy your videos but I have to say, I think you are wrong about the downturn. There is a lot more in play here other than the real estate market. That includes the stock market, politics, egos, Etc.
For the 1st time in many years the realestate market will not drop the economy is completely different than it was before the people that are waiting for the realestate market to drop may have to wait 10 to 20 years
Ask any mortgage broker and you will see that a lot of bad loan products from 2005 are back (subprimes, stated income loans).
That makes me believe that there is a crash coming soon.
What do you guys think?
Nigga you got shit in your head houses are collapsing already lmao 😂
Hey Graham, I have a quick question. I make around $80-100k a year with great benefits (5 weeks vacation, 5% company match tsp, great medical, dental, vision and most holidays off with pay). I have no debt and a nice saving. My question is how do I get myself to quit my job and pursue real estate full time?