Hey everyone me kevin here: oh my gosh. We just got a new report out that home sales are starting to plummet. There are two categories here: luxury and non-luxury. This is just feeding into all of the data corroborating all the data that we've been reporting over.

The last few days and here's yet another report ready for this in february march and april during that three month period, luxury home sales fell 17.8 percent. Now that's not prices. That's areas! The biggest drops are in places like long island, new york, oakland, california, dallas and austin, texas and west palm beach. These are the biggest drops now.

These are also the biggest declines that we have seen since the start of the covid lockdowns, which is crazy, because when we locked down, of course, sales plummeted sales plummeted because everyone was locked down. Now we have the biggest drop since then that's a bad comparison. Non-Luxury transactions, in that same time, frame are down 5.4 percent now, what's important to know is that even though luxury home sales are down like three times as much as non-luxury home sales, this only goes through the end of april may, i think, is going to be Even uglier, so when we do that three-month analysis between may june july, it's gon na be nasty. Why do i say that? Well, because of what we've been talking about in prior days, we've seen active listings, inflect up and we've also seen active listings with price drops skyrocket.

We can go to the redfin data center. You could see it nationally. You could type in your local market. Then we've got something else.

That's also hurting us which i'm going to talk about, but couple these three things really quickly together. So this is why you know: what's going on loss of purchasing power due to interest rates now you're seeing more price drops with more inventory. Coming on the market and fewer actual transactions, it's a recipe for disaster prices will probably end up going negative at this rate this year, we'll see, we've got some big gains in january and feb though so we'll see. If we can, if we end up going negative relative to those or we end the year positive, but we're on you know a declining trend for 2023 right, which is exactly what i'm preparing for i'm preparing for going shopping like crazy for real estate in 2023, because, Hopefully, by then the stock markets were covered a little bit.

I freed up as much cash from having sold. My real estate got some cash on the side and i'm going shopping and getting loans again in 2023, and that's another beautiful thing about see like i was maxed out personally like between us and nobody else. I was maxed out with loans. I had to get stupid commercial financing that sucked for single-family homes.

I was maxed out uh and now because i dumped a bunch of properties, i could go buy. Another 15 wedge deals with fannie freddie loans. Again, i'm like yeah, let's go but anyway i'll talk to you about all of this, in more detail, of course, in the programs link down below on building your wealth. But we got to talk about something else.

That's pretty ugly! That's happening in the market right now. Do keep in mind there's an expiring coupon code down below 50 off, it's the biggest coupon we've had, but when that expires, we'll have another price increase, because we've got new lectures coming up as soon as i'm back from canada. But anyway the big thing that's happening. Now is that inflation report that you, i know you've already heard about this morning - complete disaster 10-year treasury, real yields which link with mortgage yields.

They don't actually play together, but they tend to work in the market together. They correlate very well together, uh 10-year treasury yields. Just jumped 10 basis points. They were up as much as 15 basis points this morning, we're now sitting at 3.15, which is pretty spectacularly high.

We are higher than where we were at any point before during this uh. You know post pandemic recovery and we're now at the highest point uh and we're actually higher than where we got to in 2018, which is when donald trump threatened to fire jerome powell, because rates were getting so expensive. That's because this inflation report is leading a lot of people to expect that we're going to get a 75 bp hike that we're going to get either rug pulled by the fed with a surprise, meeting or they're going to move up all their rate hikes. That's going to do nothing other than push treasuries up in addition to pushing treasuries up.

If we end up sitting at 3.25 with treasuries up and then we actually get the quantitative tightening impact which we expect to really start feeling within the next six to 12 months. We're going to get another 25 to 50 basis, point hike on top of that 10-year yield, we'll be sitting at something like three and a half to maybe even four percent ten-year treasury yields, that'll skyrocket mortgage rates, and we could be looking at six and a half To seven percent so we're seeing the trend on the 10-year move up. At the same time, we just got this report on transactions starting to plummet. This is how it starts.

People keep saying and i'm tired of hearing it. Oh, but the housing market can't crash. If, if there's a lack of supply well, what happens the stuff people sell every month, let's say every month people sell put 100 homes on the market. How do you get new supply? Well, if you used to sell 100 homes for every 100 homes you put on the market, what happens if you only sell 50 homes? Well now, every time you add 100 you're adding to that base of the prior 50, and now you get big selection for buyers and people who want to sell, have to drop their prices and you get lower transactions combined with that and all of those things are What we're starting to see the slower prices are coming that part's coming, but the other indicators are lining up and i just want to be prepared and make sure i've got everything all my ducks in a row to make sure i can go shopping for real estate When these prices come down lower again, that's going to be getting educated in real estate, getting educated property management.

Getting my connections straightened out. I want to make sure i can get financing. What can i do now to bump my income to make sure i can qualify for all the homes that i want to buy all the fixers i want to buy? These are the, and you also want to start identifying. What areas do you want to buy in and what kind of property do you want to acquire if you're unfamiliar with any of these things, programs link down below on building your wealth check them out, use that coupon code and we'll see you soon, bye,.