my neighbors actually because we're on vacation were calling me and texting me saying
what is going on in your house there's people in a line down the block i feel bad for the
people that bought homes over the past year because they're the ones that paid the very
elevated prices so for someone i mean housing more broadly do you believe it's in a bubble
absolutely look i think we're in a harmony bubble i mean the u.s home prices is forcing thousands
of aspiring buyers into grueling often risking bidding wars raising questions about whether
the torrid housing market could so folks why did the market crash why all these gurus were talking
about market crashing are all of a sudden wrong they've been talking about it for the past nine
months and so is the media so in this video i'm going to break down and show you why and what are
the factors that cause the real estate market to go down or go up in this case and secondly what
you should look for when you actually are ready to buy a house this is the worst market to buy
a house and why because this is a seller's market folks it's a seller's market so if you're looking
for get a deal in this market good luck to you you're not going to find any deals in this market
and i guarantee that if you look at the stats from redfin and zillow you will realize they're all
saying that the highest price of the houses have already toppled right so it's not going to keep
going higher but that's not to say you may not see an increase at all you know these people from
zillow and redfin have a lot of data so they're very smart people and they're telling you that we
can see the data we can see the trends millennials are buying houses who's else is buying houses so
they can see the strands and they're telling you guys calm down market is not going anywhere okay
if you want me to summarize the entire video in one word i will tell you this is the worst time
to buy a house right now if i was a realtor or someone i would tell you this is a great time
to buy buy right now the prices will keep going higher and blah blah blah blah and the rates will
rates are lower which is all kind of true rates are lower but that's not to say that the rates
will increase and the prices may come down so if i were you i would wait but in this video i'm gonna
convince you why you should not buy a house now or in the next six months you should wait till 2022
now if you are desperate to buy a house if you have to have your kids move in a certain location
or a schooling and vice versa and you just can't wait i will also give you some of the very handy
basic tips that you can follow to make sure that you are covered in case the economy goes
down south in case the housing market goes down south if that interests you stick around for more
if you like the content smash the like button show some love prayer boy okay so to understand what
brings down a real estate market or what causes it to go up which is recently the factors of lumber
prices going up materials going up inflation is is going up so all those factors are contributing too
and the demand is high right demand is high because millennials are buying houses they're
in their 30s all those factors but to understand really what causes the real estate market or the
house prices to go up and high you have to look at more than real estate okay economic factors
all over the world for example we have forbearance in factor moratorium you know obviously ended
recently so that's a factor uh everything is is is expensive now gas is expensive eggs are expensive
walnuts are expensive that's gonna have an impact right the builders can't build fast enough because
guess what the price of building a house is doubled if you look at that factory let's also
look at the stock market is the stock market doing well you know are people spending money
there versus in the real estate market okay are investors pouring their money in the real estate
market or not you have to also look at what the government is doing are they spending in housing
are they causing people to buy houses or they have incentives and programs to promote housing
or purchase of housing which i think biden is kind of doing i think barton has also promised fifteen
thousand dollars for first-time home buyers if you look at all those factors and more to understand
you know how real estate market will pan out there's a shortage of labor if you notice you
call chase bank or you know wells fargo or anyone there is poor customer service because there's
shortage of labor you know if you look at my video and i talked about the great resignation
why people are not working or going back to work so that is also a factor in real estate prices
being higher right now now why do i think that the real estate prices will not continue to go higher
is because i follow that data the federal reserve keeps buying mortgage-backed securities but they
can't do it forever they have finite amount of money okay so that's going to stop soon now
what's going to happen is also there's actually a graph that i want to show you which shows that
if the rates keep trickling up in future and near future they're not doing right now but if they do
then house prices will topple down house prices will slowly start to readjust there will be no
market crash let me say it again okay read my lips no market crash but there will be a market
adjustment when that adjustment happens you know people may falter on their moratoriums people may
not be able to pay their mortgages some people may lose jobs if the economy goes down south
right now the economy is great so nobody's going to sell you their house for any price cheaper than
the market rate but in future within the next six to nine months that may change drastically and you
want to capitalize on that folks you want to buy a property that is a good deal like pennies on the
dollar and those deals will be had in future once the interest rate starts to go up so you want to
follow the graph of interest rates you want to look at if there any foreclosure increasing in
your property in your in your area in your city you want to follow those trends if people are
falling behind in their taxes you want to follow that you want to look at inflation then inflation
keeps increasing or decreasing or is contained those factors also affect housing prices in the
good neighborhoods the market is is hot right now and will continue to be hot it will be
hard to find a good deal but in the not so good neighborhood you can still find deals right now
that will not be the case when interest rates start to trickle up and believe me federal reserve
cannot wait to increase the interest rate because the investors who have invested that money and
bought those securities i used to work for freddie mac and fannie mae as a consultant and i know how
the how the pools of funds will go from bank to bank and all the way to the federal reserve
and how they back up the loans and guarantee the loans so all that to say is this is a bad time
to buy do not buy a property right now then make your move i promise you you can find a great deal
in future if you do these things and you figure these things out another thing to keep in mind
folks is that americans are spending money like crazy why because they're getting covert checks
they're getting you know these extra pp ppi loans and and vice versa and the market is thriving
right now people are investing in crypto and other markets and people are making money
americans have spent 900 900 more billion dollars since last year okay this is post covert folks so
you think market is going to crash anytime soon i don't think so market's going to crash it will
never crash anytime soon because people have so much money so much buying power and that buying
power will continue so look at those factors as well are people spending money are people not
spending money when people stop spending money that's when the prices also go down so keep
that in mind now if somebody has a house right now and you want to sell and you're compelled to sell
where are you gonna go because the moment you think you're gonna make a few hundred thousand
more in your house guess what somebody else is gonna tag that price and then give it back to you
that means you will not save any money you're p you're paying 200 000 more for your house
that that you sold your house for so there is no way to get out of this i am buying a 10 package
investment deal of 10 properties up in maryland but that's a whole different set why am i buying
that because those properties are giving really good rents okay that's for cash flow purposes
that's not for me building another million dollar house if you want a good deal this is not the
market to be had folks and i keep saying that because i wanted to get in your head right now
and the reason being you know that rents are going up prices are still high people
have spending power there's no chance of crash happening and the crash will not happen anyways
market will self-correct that may happen now if you are adamant at buying a house if you have to
buy a house for whatever reason you may have to have your kids go to certain school you may have
some other financial constraints you may have some money sitting in the bank and you want to use it
and vice versa could be or maybe you may have moved here from a different country and you
must buy a house right now if you do i can show you some ways and some best practices you can
use to buy a house so number one make sure that you have at least some reserve money for the next
six months so live your lifestyle for the next six months before you buy a house especially if you're
a first-time buyer number two okay if you want to buy a house in this market it's a seller's market
be ready to pay top dollars for it okay make sure that your total mortgage including taxes including
insurance and all that is 30 of your total income so if you're making 10 000 a month you can afford
a 3 000 mortgage payment okay number three also make sure you set aside some money for
reserves for a few thousand dollars for anything that's going to break in your house for example
toilet plumbing heating electrical pipe might burst that's where it may break down what are
you going to do and those things break down every 10 to 15 years they have a life cycle so keep that
in mind also home maintenance costs keep that in mind especially if you're a first time home buyer
you know home maintenance is not easy you have to do cleaning okay you have to do gardening and
those are extra costs that add up every month another thing you want to keep in mind is that
you should and i recommend highly put at least 20 percent down when you're buying a house why 20 you
might ask because you could do 10 or 15 but then you're putting yourself in a financial constraint
owning a house that you really can't afford a good formula is 20 another tip is to stay in the house
as long as you can so you can offset the cost of losing money in case the house prices go down and
be ready that your house that you may buy for 500 000 right now may be worth 475 next year
aha so i forgot one more important thing be ready to pay hefty property taxes because the prices are
higher and they keep going up guess what you're gonna have to pay more more property taxes because
the county is very smart they're gonna charge you a lot of money for property taxes and you better
be ready to pay that taxes so that's an extra cost so if you're if you're adam and buying a house
if you can't wait and don't want to take my advice that's totally fine with me be ready
to make sure that you can pay all these extra expenses in addition to your mortgage payment
if you like the content smash the like button show some love for your boy ak and subscribe and
like if you like the content again i'm giving you honest unbiased opinion this is not influenced by
anybody but the facts and the data and the trends in the market which i love to study and read
and i i want to present that information to you so you guys can also be knowledgeable and not
fall for these you know burning houses thumbnails and people are clicking on and somebody's saying
yesterday stiff and stephen graham was saying the market is crashing you know we're all going to
hell and today is saying oh why is the market crashing now so they keep making these videos
just to fool you and basically you know have you click on their thumbnails because they know that
the public is infected by what they watch on tv or on youtube so be careful where you get your advice
from another strategy you can also think about is maybe you can rent sell your house right now the
top dollar price maybe rent for a year or so you know and see where the market goes and then make
your move because there will be a time folks and and real estate is very cyclical okay it's very
cyclical there will be a time that foreclosures start to happen short sales will happen and
you can then snatch a deal so you want to be in that position in a striking distance right
where you can strike when the iron is hot and and the iron is hot as i mentioned to you is when
their weights start to climb so you want to catch you don't want to catch a falling knife right now
that's where we're at right now you don't want to catch a falling knife you want to cash
you know the market when the rates are climbing and the house prices start to
trickle down a little bit okay with that thank you very much for your support again and uh
much love for you guys i will see in my next video thank you so much have a nice day bye