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In this short clip, Patrick Bet-David, Tom Ellsworth, Adam Sosnick and Vincent Oshana talk about the housing crash.
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Time I'm going to go to you first four And ten consumers expect housing market Will crash survey finds four in ten Consumers believe uh housing market will Crash economists and real estate in this By the way that's a uh Economist and Real estate industry leaders generally Agree that the U.S housing market has Slowed and will continue to in 2023 but Have tended to use words like temper Modest correction when referring to Declining sales and price ahead crash is A word that has been almost universally Avoided consumers may have gloomier Expectations a recent Lending Tree Survey of 2033 Americans ages 18 to 76 Found 41 believe the housing market will Crash in the next 12 months crash as Defined as a significant drop in home Values in a short period of time of Those expecting to crash three out of Four think it will be as bad as worse of 2008 housing crash home prices posted The third straight monthly decline in September Tom thoughts which really Interesting I dug into this and there's You say to yourself well why do people Think this why do they think it and so I Back up and say what are they thinking And I looked in here and right now the Days that listings are on is is is Extending I saw Redfin I saw Zillow Stats so the number of days are on the Market are getting longer and longer and
Longer and the number of showings is is Is like way off and it's because Interest rates are high people can Afford to buy houses so if Vinnie's Selling his house Vinnie's my friend I Said how's it going it's going nowhere Man I had a good realtor it's been on The market nobody came here open house Was like three couples and you know it's Just sitting it's just sitting there we And she told me to drop at forty nine Thousand dollars so I dropped it forty Nine thousand dollars and it's still Sitting so Americans number one they Know that things are sitting on the Market number two they know that the Mortgage rates are higher and it's Making them all worried those are the Two facts that you get you dive into the Consumer sentiment that's what they say Man nobody can sell a house in our in Our street and boy look at the mortgage Rates the average person that doesn't Read The Wall Street Journal who's just Aware of their own Community that's what They're seeing what's also interesting Is how Regional this is right now California Washington Oregon and Nevada It is in crash mode whereas South Florida buoyed by a huge influx of People called demand the market has only Moved about three four percent so Depending on where you live is also Connected to this but consumers are not
Dumb and they're they're seeing what's Out there and suddenly it feels pretty Bleak and you survive survey them and They said oh this thing's going to crash In your expert opinion we can all agree That the 2008 financial crisis were Spurned by the mortgage-backed Securities and the what was the Nina no Income no assets and basically the loose Lending right I mean that's Essentially the reason that the economy Almost tumbled all these mortgage-backed Securities and all this uh loose Underwriting so yeah yeah We were default and inventory so there Was a lot of Bad actors there was a lot Of you know loose underwriting there was Whether it was a legal fraudulent you Know I don't know how many people went To jail for it I don't know but people Were sort of calling it Michael burry so There were some definite reasons for That in your expert opinion what are the The one or two bullet point reasons why This crash would happen now is it Interest rates is it is it supply and Demand what would it be well first of All what goes up must come down and Because we printed all that money we Artificially inflated asset prices we've Talked about this on the podcast but Before from cards if sports cards Collectors to artwork and employees to Use used cars popped up remember and so
What goes up must come down and right Now what you've got is this crash is not Going to be the structural disaster Where you had all of those Um adjustees popped because remember What happened wasn't that they had bad Loans it's that they all adjusted and Once the adjustment started it was this Horrible downhill storm of people Defaulting because the interest rate Came up and they're like sorry I can't Pay that I have to default what you have Right now is you had artificially Inflated prices that have to come back Down and they're coming back down in the Face of two things interest rates are Really high and you you've got you know The affordability in terms of the Individual consumer so the demand side So I don't see a structural disaster the Way there was that the adjustable Mortgages that suddenly adjusted and Squeezed everybody and they defaulted I Do see that the prices were artificially Inflated and now you've got oh Interesting the areas that have low Demand like California Washington where People are moving out of those blue States reducing the demand for houses And that's where you see it coming down First but Americans are not dumb uh They're out there right now and they're They're feeling this and for a lot of People average means this is sad so what
All the craziness taking place I believe Future looks bright if you believe Future looks bright get your latest Future looks bright hat of valuetainment It says future looks bright here future Looks bright here we got them in white We got them in Black we got them in red Our black on black sold out these are About to sell out if you haven't ordered One yet we had a person in Michigan but One then he bought three then when those Three people wore it in the office they Had to order 58 of them because people Wanted the few future looks bright hat Especially during times like this Because ain't nobody's saying future Looks spread toward your future looks Bright hat click over here and to watch The entire podcast click here take care Everybody