The 2022 Housing Market Crash.

if you want deals make sure to check out

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link down below we analyze real estate

deals almost every time we go live in

addition to stock of fundamental

analysis and the reason we do this is to

teach you how to make money in real

estate as well use that coupon code

fireworks to get in before the price

goes up hey everyone meet kevin here

wouldn't you think going into a crash it

would be smart to deleverage to take on

less debt especially if housing is going

to have or face a correction wouldn't

you think that maybe people would want

less

risk well folks that's not what's

happening

in a chart that's quite reminiscent of

the great financial crisis of 2008 take

a look at this

we've got mortgage equity withdrawal now

at the highest level in q1 of 2022

since the great recession folks i don't

want to compare anything to the great

recession let alone people taking on

more debt especially since even the

federal reserve

is telling us that it looks like there's

a growing concern that u.s housing

prices are again becoming unhinged from

fundamentals

and at the same time homebuilder lennar

the second home builder second largest

home builder in the united states tells

us that they're seeing three categories

of pain in their markets

from flattening purchasing power as

category 1 to targeted price reductions

and aggressive financing programs great

another 2008 reference in category 2 and

of course more significant market

softening and correction as a category 3

of market declines occurring

all of this at the same time as home

sales are falling and we're seeing a

substantial decrease in the number of

buyers on the market folks the housing

market is beginning to shift

but don't take all of what i just said

for a sign that the housing market is

beginning to shift let's take a look at

two very important things

two important things start with this

here

this is a chart that shows us the number

of buyers that backed out of deals or

cancelled deals and if we compare this

to the last

five years we can see the buyer

cancellation rate right now

is as

is nearly as high as what we saw in

april of 2020 and we're at the highest

point of cancellations since then this

is a sign that home buyers are starting

to get potentially get cold feet that oh

my gosh maybe prices will stagnate and

maybe prices will come down now why do

we think that prices will stagnate well

it's mostly because of interest rates

this is the chart of the 10-year

treasury and it shows us interest rates

skyrocketing

year to date this is the year to date

chart and as long as the 10-year

treasury remains in this range over here

which is between three to four percent

three to three and a half percent

we could really be expecting average

mortgage rates in the neighborhood of

5.75 to six and a half percent and the

problem with that range

is it is

three to three point seven five percent

higher

than what we saw in december and

unfortunately that could lead to a

reduction buyer purchasing power of

between 30

to 37 and a half percent now that

doesn't mean that real estate will fall

that much because we still have an

excessive amount of demand and a lack of

inventory but folks we are starting to

see a shift in active listings and a

lack of that demand

but quick note if you want help

analyzing real estate deals or you want

to learn how to properly renovate your

properties you want to actually learn

how to build real wealth and long-term

investments in real estate you want to

go from zero to millionaire then come

join the programs on building your

wealth with real estate these aren't get

rich quick programs these are my ability

to educate you in absolutely everything

that not only i know but my family knows

about real estate investing from over 35

years in property management investing

in single families multi-families you

name it we've got experience in all

sorts of different aspects of real

estate and we could teach you a way to

not only save thousands of dollars on

real estate but to potentially make

hundreds of thousands of dollars in

investing appropriately in real estate

we've got a great opportunity to buy

real estate coming up in our opinion

towards the end of this year and

beginning of next year you just want to

be educated so make sure you use that

expiring coupon code linked down below

and take advantage of joining the

programs on building your wealth so

what's the latest redfin is telling us

well it's not great in terms of all

markets throughout the united states the

percentage of active listings with price

drops has again inflected up and if we

go into some individual markets we could

see austin texas is now above 10 price

drops seattle's above 10 price drops

tampa is above 10 price drops boise

idaho is above 16

folks the inflection points are

here

the recipe for price drops leading to

lower sales prices is here

this is the time to be cautious about

real estate if you can negotiate a great

deal do it but my suggestion is clear

right now you should be focused on

paying down debt

pay this down so that way you decrease

your debt to income one of the things

that we talk about in the real estate

investing courses is that every

dollar of monthly debt you have reduces

your purchasing power by a monthly

figure of two dollars and 34 cents so

for example if you have a thousand

dollars in debts you lose purchasing

power worth two thousand three hundred

and forty dollars per month for a home

this is a pretty decent mortgage here

that could afford a very nice home but a

thousand dollars of debt could make that

almost impossible

after you pay down debt make sure you

are saving save what you can if you're

going to ride the market in the stock

market hoping for an upswing

fine but no matter what you do whether

it's riding the stock market or writing

in cash

get your wealth set put aside a war

chest so that way you can get prepared

to buy deals but also remember to get

yourself educated you got to build the

connections you got to know how to build

the connections in real estate you got

to know where the deals are going to

come from and you got to prepare

and once you're educated and you're

prepared and you know how to invest in

real estate you'll be able to strike on

those wedge deals

you'll be able to build your wealth

become that millionaire check out the

programs linked down below