The 2022 Housing Crisis Just Got Worse

Let’s talk about declining home sales, and what this means for the 2022 Housing Market – Enjoy! Trade Bitcoin, Doge, and other crypto with low fees on FTX. Use my referral code GRAHAM and get up to $100 FOR FREE: – Add me on Instagram: GPStephan

GET YOUR FREE STOCK WORTH UP TO $1000 ON PUBLIC & READ MY THOUGHTS ON THE MARKET – USE CODE GRAHAM:

CHECK OUT THE CALCULATED RISK BLOG:

GET MY WEEKLY EMAIL MARKET RECAP NEWSLETTER:

The YouTube Creator Academy:
Learn EXACTLY how to get your first 1000 subscribers on YouTube, rank videos on the front page of searches, grow your following, and turn that into another income source: – $100 OFF WITH CODE 100OFF

Every month, the National Association Of Realtors publishes their data on the latest market updates, home pricing, and mortgage trends, to give their insights as to the direction of our economy:

Most recently, mortgage Demand Plummets 22%, new applications for a mortgage fell 19% lower than the same week in 2021, and refinance saw an 80% drop year over year…but, the most surprising is that: Home Prices are now 13.4% HIGHER than they were, one year ago.

Even though more inventory IS being listed, the record low pace of “days on the market” implies that, homes priced RIGHT are selling quickly – and, homes priced TOO HIGH are simply deterring prospective buyers.

The blog, CalculatedRisk, points out that – in terms of what could happen in the future, look no further than 1978: We’ve seen a similar uptick in year-over-year mortgage increases…with rates rising by more than 50% – and, even though mortgage rates are lower today than in the past…there are some striking similarities.

As Bill points out, from 1978 to 1982…NOMINAL HOME PRICES CONTINUED GOING HIGHER…but, REAL RETURNS – when accounting for inflation – FELL by 11% over three years…meaning, home prices went UP in terms of DOLLARS…but, because of inflation…the NET VALUE declined…even though people’s net worths were going up.

The thing is, since homeowners are able to lock low interest, fixed rate loans…home values tend to remain STICKY, in the sense that, people who aren’t FORCED to sell – won’t sell. That’s why, we could very well have prices continuing to go UP…even though, REAL VALUES might decline.

So, OVERALL…these reports are telling us that – higher prices ARE discouraging buyers from making an offer…BUT, there’s still enough demand to keep the market relatively stable.

In my own, very unprofessional opinion…I would NOT be surprised if NOMINAL VALUES GO UP…while REAL VALUES stay flat, or even see a slight drop…so, that means: if you’re in the market for a home…simply buy what you can comfortably afford and plan to keep for the next 7-10 years…but, what do I know…I’m just a talking head on YouTube.

Are you actually reading this? If so, comment “I’m still reading this.” No one else will know what you mean, but we will – our secret. Thanks!

My ENTIRE Camera and Recording Equipment:

For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at [email protected]

*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. This is not investment advice. Public Offer valid for U.S. residents 18+ and subject to account approval. There may be other fees associated with trading. See Public.com/disclosures/