Hey everyone me kevin here boy, oh boy, one of the biggest things i always talk about when it comes to real estate is that you can see changes literally happening before your eyes and especially if you are a local expert, because you're constantly investing in or looking At your local real estate, you can really see the changes happen quickly, but the beautiful thing about real estate is, you can combine changes happening in your local market with what's happening in the national market or in other areas to see if your feelings and suspicions are Similar so, for example, earlier this year in january, i said, i'm highly concerned that the real estate market is going to slow down as real estate. Interest rates rise substantially and then we create the fear that oh no real estate prices are starting to go down and then guess what more people start dumping properties on the market? That's how it starts. You start seeing interest rates, go up, more properties, stagnate, price drops increase, then, all of a sudden we see prices start declining. Closing prices decline two to three to four months later, then you potentially get a wave of fear of more people selling.

These are usually your investors or people who can go to renting or downsizing or they move into an rv and they get rid of their homes. They don't necessarily need a replacement home right. There are plenty of those people and you don't need that. Much of a delta to really affect the real estate market - that is, you, don't need that many more homes for sale or home city on the market to really affect the market, and so i've been noticing these trends and we're going to look at some crazy charts.

Here and numbers in just a moment, because we've got a big update here, but i've been noticing these trends since january, at least in my local market. I decided to sell almost all of my rental properties. In fact, i'm honored to say that, as of today, we have absolutely zero tenants. That means we went from over 20 million dollars in real estate to still having some real estate left, but no tenants we're still in escrow and some properties and we've still got some properties under construction.

But no tenants kind of feels weird to say. But we don't worry, we'll be getting back to tenants very soon because that's how we made our first millions and highly encourage you getting into real estate as well, because you can do the same thing. But i want you to see some of these charts. So, let's pull up these charts here this first we're going to look at austin texas.

Now you might be saying to yourself: why are we looking at austin, texas, well, austin texas, is where i'm first noticing an inflection point they're the first ones to really have started showcasing an increase in inventory when i started noticing them right here and inventory, starting to Increase i'm like oh austin, which is by many accounts, considered one of the best places to live at least that's what magazines say and a lot of people are moving to austin people like oh austin's, not going to slow down it's boom town. Well, i'm starting to notice an inflection point in austin, one of the big things i talk about in my courses on building your long-term wealth is paying attention to inflection points, in fact, if you're clueless about real estate, but you want to take advantage of the opportunities Coming out, take a look at the programs on building your wealth down below, including the zero to millionaire real estate course best way to get started. A lot of people bundle that, with the rental, renovations and do-it-yourself property management course and make sure to use that coupon code expiring at the end of next week, it's 50 off and then the prices will be going up again. But take a look at this and you'll learn everything that you need to know about real estate more than you ever thought you could even know even real estate agents and lenders join and they're, like oh, my gosh.

This is like incredible how in-depth this is, but anyway and there's even a quick start section too. So that way you don't get overwhelmed, but you see this inflection point here that we saw in austin right, okay, so active listings with price drops in austin, texas, okay, cool kevin, but what happens after you get active listings with price drops in austin texas? Well, you get the following: pending sales in austin texas. Oh look at that our first stage two decline. First, you see active price, drops, skyrocket, inventory, stagnate and at the same time you actually see pending sales go down and then, when these sales actually start closing, you tend to see sales prices go down, you're, not seeing that yet in the united states, you're already seeing That in canada, which happens to be where i'm sitting right now, but as of last week, we did not have this chart.

Yet. Look at this one percent of active listings with price drops in the entire united states skyrocketing uh. Oh, this just updated on the redfin data center, since it's a rolling four week period and we just got an update on it and boom. Do we have a national inflection point but folks, it's not just here, take a look at this percent of active listings.

Oops. That's the same screenshot here yo, look at this. We got seattle folks, boom explosion in seattle in active listings, with price drops now you're, seeing it in los angeles. When i first looked at this data, we were not yet seeing an increase in price drops in los angeles.

Now you are miami florida also getting hit. You've got boise, idaho. Also, now getting hit, you've got new york. Getting hit.

You've got san diego getting hit. Folks, you have atlanta, georgia getting hit and you've got tampa florida getting hit. People are like epic heaven. Oh real estate is local yeah.

Well, when the entire nation moves together, you tend to see no matter whether or not you got these little like wiggles between different markets. It all kind of moves together like the hand versus the fingers, the fingers being your individual markets, the hand being the national overall market right. So this is a problem, so we're seeing the same trends that we saw in all of these other areas. That is the same trend that we saw start in austin, followed by a decline in pending sales.

The same trends are happening in all of these other areas. Folks, you can go to the redfin data center and see this yourself, but you might be wondering why is this happening? Kevin come on folks. Look at this. This is your 30-year mortgage right now.

It is sitting at 5.97, which means most people are probably getting qualified for 6.25 to 4. Sorry 6.5, which it represents a 40 decrease in purchasing power. But what's really bad about this line? Is the inflection point that we got over here at this uh green arrow, so see this green arrow first follow the screen arrow down over here. This has been the rate of uh of interest rates going up over the last uh.

You know well, this goes back to january right, so year-to-date increase in interest rates back here is where i warned you that there were going to be problems coming to real estate and i'm already finding it harder to sell real estate today than here. That should be obvious, especially as you're seeing those price drops increase like crazy uh. So this was this was so obvious to see and and that's why i've been taking advantage of it, and i dumped my real estate over in this region here, and i got a couple escrow still closing here, but that's just the way it works. Sometimes things take a little bit longer, but hey honestly for dumping over 20 properties in the span of six months, not bad people like oh real estate, liquid uh yeah, it can be but anyway so uh take a look at this.

This was the rate of interest rates going up over the last six months. Then we got some really bad inflationary numbers last week and look at the rate at which now mortgage rates are going up see this red line represents a substantial increase in in the rate at which rates are going up right. The acceleration is now stronger. It's kind of like you've got your foot on the gas at.

You know 40 miles an hour right here and then all of a sudden you're like uh, wait. We need to pass somebody going from 40 to 60 right and that's now the speed that we're driving at it's a problem. Folks, it's a big problem. It's going to create some massive opportunities in real estate.

You better be ready, but i wanted to give you this update, because folks, this is not not looking like a good trajectory so far and if austin will pay attention to my opinion to austin first, because i think austin is the canary in the coal mine and Everybody else is following, and so far everything we've been talking about has been coming true in real estate. Let's see how it ends up going so far. We still have depressed inventory and i understand that all the real estate agents on tech talk are like. The inventory is still low, just wait: it'll change,.

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