My Thoughts On The 2020 Real Estate Crash
Here are my thoughts on the 2020 real estate market, where prices are heading in the future, and how I'm investing in real estate moving forward - Enjoy! Add me on Instagram: GPStephan
LIMITED TIME: Get 2 FREE STOCKS ON WEBULL when you deposit $100 (Valued up to $1400): https://act.webull.com/k/Vowbik9Tm5he/main
JOIN THE WEEKLY MENTORSHIP - https://the-real-estate-agent-academy.teachable.com/p/graham-stephan-mentorship-program/
THE NEW PODCAST: https://www.youtube.com/channel/UCMSYZVlQmyG8_2MkIKzg0kw
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: https://bit.ly/2STxofv $100 OFF WITH CODE 100OFF
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
Here’s what’s going on right now: mortgage rates have continued hitting historic low after historic low, and that bodes REALLY, REALLY well for real estate. But even though record low rates means there has NEVER been a better time to buy real estate and get a mortgage, fewer sellers want to list their homes for sale, and that’s creating a housing SHORTAGE.
Marketwatch included a graph showing the trailing 12 month returns of real estate versus the stock market - and the great financial crisis of 2008 was the ONLY time where real estate experienced a 12-month trailing loss of more than 2%. That means, that - over the long term - real estate as an investment is going to be fairly stable and uneventful, despite what happens with our overall economy.
https://www.marketwatch.com/story/look-what-happened-to-home-prices-when-the-coronavirus-sent-stocks-into-a-bear-market-2020-07-21
Real estate is also proving to be a good hedge against inflation, and that could also be driving higher than normal demand with rates as low as they are.
Even for myself, I’m a firm believer in getting a low interest, fixed rate mortgages on cash flowing rental properties as a hedge against inflation - and then, just take 30 years to pay them off in full while the home goes up in value. I think that’s a sound investment strategy when you do this correctly…but the problem, at this point…is that home prices are skyrocketing, and there’s NOTHING to buy.
As a real estate investor, it’s paramount that you get a good deal on a property with some upside so that you can fix it up and make repairs…but, everything I’m seeing is selling a premium because there aren’t many other choices on the market, and prices are increasing faster than I expected because other people are willing to pay whatever it takes just to get the home.
There’s nothing wrong with doing that if your intention is to buy something for yourself…BUT, from an investment standpoint, it makes it VERY difficult to come out profitable.
Despite all of that, though…the future of what’s going to happen with housing prices is hard to determine. Right now, yes - prices have been going up - a lot, whereas - seasonally, they would be going down. Sellers area also getting closer to their asking price, on average, than usual - but, how long can this hold up for?
https://www.redfin.com/blog/home-sales-and-prices-keep-climbing/
Well, the tech company Haus predicts that real estate will see about a 1% decline into 2021…but then predict, after that, growth could continue as high as 4-5% once our economy begins recovering.
https://haus.com/resources/june-2020-hausing-market-forecast
CoreLogic, one of the largest data analytics companies, found that - even though prices have risen 4.8% year over year…they expect that, over the next year, will see a drop of 6.6% in real estate prices…
https://www.corelogic.com/insights-download/home-price-index.aspx
I have a feeling, as long as consumer spending is low and our economy is shut down - interest rates will stay low, and demand for real estate will stay high. But, if that changes, after about 6-12 months or so, I would expect rates to slowly go back up - and that might begin to change the pace of real estate, especially if more sellers begin to list their homes for sale.
I’m still actively looking to buy something else for myself…BUT, I want to make sure whatever I buy is somewhat of a good deal, and I’m not going to overpay just for the sake of buying something.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness@gmail.com
*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.
Видео My Thoughts On The 2020 Real Estate Crash канала Graham Stephan
LIMITED TIME: Get 2 FREE STOCKS ON WEBULL when you deposit $100 (Valued up to $1400): https://act.webull.com/k/Vowbik9Tm5he/main
JOIN THE WEEKLY MENTORSHIP - https://the-real-estate-agent-academy.teachable.com/p/graham-stephan-mentorship-program/
THE NEW PODCAST: https://www.youtube.com/channel/UCMSYZVlQmyG8_2MkIKzg0kw
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: https://bit.ly/2STxofv $100 OFF WITH CODE 100OFF
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
Here’s what’s going on right now: mortgage rates have continued hitting historic low after historic low, and that bodes REALLY, REALLY well for real estate. But even though record low rates means there has NEVER been a better time to buy real estate and get a mortgage, fewer sellers want to list their homes for sale, and that’s creating a housing SHORTAGE.
Marketwatch included a graph showing the trailing 12 month returns of real estate versus the stock market - and the great financial crisis of 2008 was the ONLY time where real estate experienced a 12-month trailing loss of more than 2%. That means, that - over the long term - real estate as an investment is going to be fairly stable and uneventful, despite what happens with our overall economy.
https://www.marketwatch.com/story/look-what-happened-to-home-prices-when-the-coronavirus-sent-stocks-into-a-bear-market-2020-07-21
Real estate is also proving to be a good hedge against inflation, and that could also be driving higher than normal demand with rates as low as they are.
Even for myself, I’m a firm believer in getting a low interest, fixed rate mortgages on cash flowing rental properties as a hedge against inflation - and then, just take 30 years to pay them off in full while the home goes up in value. I think that’s a sound investment strategy when you do this correctly…but the problem, at this point…is that home prices are skyrocketing, and there’s NOTHING to buy.
As a real estate investor, it’s paramount that you get a good deal on a property with some upside so that you can fix it up and make repairs…but, everything I’m seeing is selling a premium because there aren’t many other choices on the market, and prices are increasing faster than I expected because other people are willing to pay whatever it takes just to get the home.
There’s nothing wrong with doing that if your intention is to buy something for yourself…BUT, from an investment standpoint, it makes it VERY difficult to come out profitable.
Despite all of that, though…the future of what’s going to happen with housing prices is hard to determine. Right now, yes - prices have been going up - a lot, whereas - seasonally, they would be going down. Sellers area also getting closer to their asking price, on average, than usual - but, how long can this hold up for?
https://www.redfin.com/blog/home-sales-and-prices-keep-climbing/
Well, the tech company Haus predicts that real estate will see about a 1% decline into 2021…but then predict, after that, growth could continue as high as 4-5% once our economy begins recovering.
https://haus.com/resources/june-2020-hausing-market-forecast
CoreLogic, one of the largest data analytics companies, found that - even though prices have risen 4.8% year over year…they expect that, over the next year, will see a drop of 6.6% in real estate prices…
https://www.corelogic.com/insights-download/home-price-index.aspx
I have a feeling, as long as consumer spending is low and our economy is shut down - interest rates will stay low, and demand for real estate will stay high. But, if that changes, after about 6-12 months or so, I would expect rates to slowly go back up - and that might begin to change the pace of real estate, especially if more sellers begin to list their homes for sale.
I’m still actively looking to buy something else for myself…BUT, I want to make sure whatever I buy is somewhat of a good deal, and I’m not going to overpay just for the sake of buying something.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness@gmail.com
*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.
Видео My Thoughts On The 2020 Real Estate Crash канала Graham Stephan
Показать
Комментарии отсутствуют
Информация о видео
Другие видео канала
The 2021 Housing CrashHow Much Money You Need To Save By EVERY AGEThe 5 Dumbest Purchases I’ve Made In My 20’sREVEALING MY BRAND NEW HOME TOUR!How To Get A PERFECT Credit Score For $0Evicting Tenants - My ThoughtsREAL ESTATE MARKET PREDICTION 2020 POST-CORONAVIRUS - KEVIN WARDRevealing The INSANE Perks of The $10 Million Dollar Credit CardBecoming a Millionaire: Roth IRA vs 401K (What makes the MOST PROFIT)I FOUND THE BEST BANK ACCOUNTS OF 2020Responding To CRINGE Investment Advice | BEST and WORSTMillionaire Exposes The Jake Paul Financial Freedom ScamThe Coming 2021 Housing Crash | Here’s How BadPSA: Why you SHOULDN’T get a 15-year MortgageHow To Make Passive Income with $500Why you SHOULDN'T rent a homeThe Stock Market Is About To Drop - AgainHow To Buy Your First Rental Property (Step by Step)How To Save 99% Of Your IncomeWait for the Post-Stimulus Market CRASH to Buy a Home?