Welcome back to real estate mindset Today's video is going to be absolutely Bonkers now the data is in has the Housing market got so unaffordable for The normal everyday US citizen that the Housing market can now be categorized as Feudalism and if you don't know what That means let me give us a little Refresher on what feudalism is it's Basically the dominant social system in Mideval Europe in which the Nobility held lands from the crown in Exchange for military service and Vessels were intern tenants of the Nobles while the peasants were obligated To live on their Lord's land and give Them homage labor a share of their Produce nationally in exchange for Military protection so my question is is Is the housing market so un affordable That only the top 1% of Americans will Be okay and the rest of us 99% of Citizens will be renting forever well That's exactly what we're going to talk About today and seriously guys don't Forget I am not a financial adviser even Though my bio is as a licensed realtor a Licensed loan officer a licensed CE Continuing education instructor for the State of Texas and my bio is as someone That lives living and renting in a mold House that is forced to move and either Rent or Buy in June all right that's Super duper horrible so that's my bio if
You guys have any empathy for my very Frustrating situation as I have empathy For you do me a favor guys like the Video really helps out the channel share This information comment below let us Know what metro area you're sharing your Intel from in essence guys this video is Going to be about how much longer is America going to take this the level of Unaffordability and inflation right now Is is strangling Us in essence guys it's Not American it's greed corruption fraud That's what's going on right now and What the system wants to do is normalize This the prices the high prices on the Backs of its citizens especially when it Comes to our homes so pay attention to This report let me know how you feel About it at the end and don't forget if If you have any issues with commercial Financing I have an application form in My description fill that bad boy out and Send it to me and if you need help I Will try to help you let's get started So we'll start by reading this Fortune Article titled impossible high home Prices are utilizing California as Unaffordable housing markets pose Exential threat to middle class study Says and what better state to talk about About this than California you guys are About to see some wild stuff regarding California I mean this stuff that this Article is going to go in I mean you
Know I hear a lot of you know war and Civil unrest and all these types of Things and honestly when I sit back and Think about it if we can't own a home a Roof over our head and that is the American dream then yeah there's going To be a lot of people that get upset About the politicians the corporations And all of the elite I mean I'm sick and Tired of them getting rich off our backs Most of us just want a balanced happy Healthy life that's it we don't want to Take over the world they do and it's Costing us there are unaffordable Housing markets and then there are Impossibly unaffordable markets four of The 10 markets are in California so this Is a study basically telling us what Housing markets are the most Unaffordable and this is across the World and out of the top 10 four four of Them are in California that's why California always crashes usually it's The first to crash it's because the Level of unaffordability is basically Impossible to be a local to live there And to purchase a home unless your Family does it for you unless you're Filthy Rich a king a queen from across The country from across the world you're Not going to buy a house in California At least unless it's in the desert where No one wants to live the house in crisis Represents an obstacle to Upward
Mobility and the Golden State risks Suffering from a especially acute Stratification this goes on high housing Prices relative to incomes are having a Distinctively ftiz impact on our home State of California where the primary Victims are young people minorities and Immigrants restrictive housing policies May be packaged as Progressive but in Social terms their impact could be Better characterized as regressive and That means that what they're doing is Not working there's too many loopholes And all of these laws that they're Passing and grants and and this Legislation monetary policies fiscal Policies I mean it's all designed to Keep the rich rich and to keep the poor A little less poor but yet at the same Time we get even more poor so actually It's like this we get a little less poor But it gets a lot harder to get UNP poor Do youall know what I'm saying like We're more permanently poor but it's a Little bit more comfortable but we've Just lost our freedom we lost our Ability to buy a home I'm gonna think About it how long did this take four Years you you sit here telling me in Four years I'm supposed to accept Everything that has happened when again We have another hundred years that says The opposite I don't think so the Housing market is going to reset it has
To it actually happens regularly Especially when we have this lack of Income growth at the same time as the Prices and values go up there's nothing New here guys there's absolutely nothing New there's nothing new here the report Points to Urban containment policies That are meant to limit sprawl and Increase density very interesting Interesting those have resulted in Higher land prices which have translated To dramatically higher home prices so They put aside parks and sidewalks and All of these types of things but what They're saying here is by doing that You're making land way more expensive in These highly dense areas and what they Are suggesting guys and let me know if You agree and you'll see that here in a Minute they're suggesting that these High density areas eliminate Parks Sidewalks amenities and just put a whole Bunch of buildings and houses there Probably high-rise condos so I Understand that they're trying to fix Something but the cost is a lack of Socialness is a lack of being able to go Outside play basketball go ride a bike Be social with other human beings they Continue to dissolve that again when I Was born when I was a child what we did We didn't even play video games we Didn't even have set phones we went Outside rode our bikes played soccer
Played basketball played baseball you Guys here's the thing there's stealing That from our children and what we need To do as parents first of all we need to Do a lot of things but I'm going to just Say this one thing we need to eliminate We need to minimize the screen time our Children have on their tablets cell Phones or whatever and I have a lot of Parents that say it's okay if it's Educational that's not exactly true They're doing it too much but anyways That's a little bit of a rant let's get Back into this article the trend toward Increasing density was geared towards Reducing Reliance on cars and freeways Improving gridlock and making Neighborhoods more walkable But the report said while such policies Were well intended they resulted in land Prices being 8 to 20 times higher in Urban containment boundaries rather than Outside of them and this brings up a Very important thing that I really want You guys to understand if you guys are Having trouble finding a house that you Can afford it's because it's 2024 okay But let's fast forward in into time Let's say it's 2025 and you're still Having trouble purchasing a home now Remember a lot of times you can go to The outskirts of downtown Metro areas And find homes that are way more Affordable but I get it and I'm included
Into this box a lot of people put Themselves in a very tiny box and say I Want to live in that neighborhood Understand that you're limiting yourself As a homeowner if you refuse to go Outside of those boundaries again you Could go 15 maybe 20 miles away find a Similar house for 50% less Hypothetically right hypothetically you Got to do your research but my point is Who cares if you have to drive an extra 15 20 minutes to work I'm used to Driving an hour to work since I was 18 Years old it's just a part of what we do Do you guys agree with me on that I mean People want to walk to work I've never Had that happen in my I could honestly Guys if frustrates me I mean get up go To work and make money stop spending Money as well recklessly now take a look At this guys this is insane and and Honestly California I don't know you Know again people are saying there's Going to be riots and stuff I mean what Other state would there be probably New York and California right those probably Going to be the top two states because Again the locals the people that were Born there the natives they are dead in The water they're dead in the I'm from California I know this they're dead in The water let's read this a price to Income ratio okay of three and Below was Deemed
Affordable you guys right now we're in The sevens by the way as a as a country We're in the sevens and they're saying Three is Affordable all right so how is This normal this isn't normal with Higher ratios corresponding to worsening Levels of of unaffordability a ratio of Nine or above was labeled impossibly Unaffordable again we're at like 7.4 as A country we are so close to Impossible And let's change unaffordable impossible Home ownership okay we are this close Right now as a country to having Impossible home ownership but I have Good news at the end of this and and Don't for I forgot to tell you guys that By the way stay tuned because again this Is horrible stuff right but I'm Explaining this because understand what Inflation really does to Citizens Understand what inflation really does to Society it kills us it kills the values It kills our mindset it kills our Relationships because we're paying for Money that's not even ours and it's not Being used to help us they're saying That it's helping us but it's not all That's happening right now is things are Getting worse and again I have good news Because I'm going to show you how prices Are actually going down but in the Meantime we got to go through a lot of Pain to get through this but let me go Back into this for you guys so the
Number one in the entire world number One most unaffordable place is Hong Kong At 16.7 PE ratio that means it takes almost 17 years of the average person's salary To pay for the average home Hong Kong Got it real real bad number two oh my Gosh this is crazy Sydney Sydney I don't Know how that's possible but you know What Sydney's 13.8 that's that's just Man that's hard to Fathom Vancouver as Well Vancouver 12.3 and then we start Getting into United States number four San Jose I mean San Jose didn't learn From what happened in March of 2023 with Those Bank runs and how basically the Entire market like that can start going Down and completely unravel it took the Federal Reserve to meet over the weekend Behind the backs of citizens to save San Jose and now look at it I mean it's Still it's still flourishing right but I Don't think it's real I think it's fake And I think it's coming to A fast end Now number five is Los Angeles Poor Los Angeles sitting at 10.9 and then Honolulu actually we have that's crazy So number six is Honolulu we actually Have one two three four we have five US Cities in here that's crazy so five of 10 of the most unaffordable places to Live are in the US so again six is Honolulu sitting at 10.5 my heart really Goes out to those locals the Islanders
Right there imagine being an Islander And seeing your Island basically ripped Apart from touris ISM I mean that's kind Of what's going on in the housing market Right now we're basically kind of Feeling what you know some of those Islanders have felt over the course of Hundreds of years I'm not saying it's Anywhere near the same but think about Them now number seven is Melbourne at 9.8 number eight is San Francisco at 9.7 San Francisco is right next to San Jose So that whole area right there is super Bad now number 10 is actually San Diego At 9.5 so again the natives the locals The people that were born and raised in Those areas how are they going to buy a House how explain to me in the comment Section below how can they buy a house They will have to make what $23 million A year to afford a house in those areas That's insane guys the report also Warned that housing crisis poses an Existential threat to the middle class Noting that high housing costs have Reduced standards of living and Increased poverty thank you Federal Reserve I'm telling you guys a lot of This is the fed I'm telling you right Now if they would have stopped I'm just Going to put this on record if they Would have stopped purchasing mortgage Back Securities back in 2012 we would Have a lot less problems right now I'm
Telling you those mortgage back security Purchases real bad I understood the need For it from the end of 2008 to 2012 to Save the mortgage industry but after That I mean why do they keep doing it The middle class is under siege due to The escalation of land costs it said as Land has been rationed in an effort to Curb urban sprawl the excess of demand Over supply has driven prices up the Report pointed out all of the impossibly Unaffordable cities follow urban Planning policies favoring more density And recommended that cities open up the Availability of land to reduce housing Costs and again the availability of land I'm not sure that I think that's the Solution and you kind of see that in Irvine California they're now basically Destroying that park or a portion of the Park and they're building like half Million dollar to million dollar Townhouse and condos so this is Basically what that's saying let me know If you think that's a solution do you Think a solution to the unaffordability Crisis is to take away our sidewalks and Parks I don't think so I think one of The better Solutions is is stop the Investing even mom and popop investors I Own one house right now before I die I Want to own three to four houses but I Have to Forfeit that dream so that Everyone has a fair opportunity to buy a
House I will happily do it I told you Guys I don't want to take over the world I'm like you I just want to roof over my Head I want my family to be safe and Happy and balanced and I just want to be Left alone how many people are there That are just like me I want to know in The comment section are you going Through something like I'm going through Right now let me hear from you guys Please so I want to put this in Perspective on just how Out Of Reach Home ownership is for most normal Citizens now you guys can come to this Website this is called long-term trends This is a great website it's free the Public can access it and it can actually Go back a hundred years or more on some Of the data so it's very very helpful But what we're looking at is only the Last 50 years we're looking at case Schiller home prices it's an index to Create home values which is in red and We're also looking at CPI which is in Black and really what I want to show you Guys is really when that black line and The red line kind of separate we can Kind of look at that as a wage Gap Forming we can kind of look at that as a Lack of fundamentals and a lack of Sustainability now the reason I say that Is is we saw that happen right here in The GFC starting about in the 2000s home Prices really kind of got out of hand
When it pertains to you know consumer Purchasing power or rather income and You can see once we had the crash that Kind of narrowed down and that was a Recession now we were actually due for Something to happen right now you guys Can see how that has kind of like Separated going into 2020 but remember About 2017 to 2019 the Federal Reserve Stopped buying mortgage back Securities And raised the federal funds rate so They were trying to handle this right Before it went completely out of control Again go back in history look at 2017 to A 2019 mortgage back Securities were Being sold and the federal funds rate Was being raised to stop this from Happening but again instead of that Because you see that separating right There you see that but instead of that Happening look it it went absolutely out Of control it became unhinged and that's Really what I'm trying to show you guys And this is not good citizens are only Going to put up up with this for so long At least in my opinion and y'all it's a Double whammy because it's not just the Prices the prices are the major problem But the other issue is the payment now The payment is calculated from both Price and interest rate and you can see Here that home buying housing payments Right now are up 88.6% and it's 2024 Remember 2023 and 2022 homes were
Already unaffordable so the fact that Two years later they're even more Unaffordable should tell us they broke Us they broke the housing market and It's really important that we don't fall Victim to losing hope and giving up like So many people are but look at how Unhinged this is when it was 2021 just 3 Years ago the average mortgage payment Was about $1,700 in just three years It's over $1,100 more on average and That's probably not counting your taxes And insurance to buy a house you guys That only is sustainable if income goes Up with it because pretty sure you guys Know by now even you Jeff you get this The biggest thing here as far as the Economy consumers stop paying every Falls apart and that's why I keep Constantly saying if you're going to Have these asset prices go up if all This unaffordability is going to go up And sustain it's can only sustain if an Overwhelming amount of us like way more Than half of us can keep up with the Unaffordability but when citizens cannot Keep up with the unaffordability we Start to have what's called a crash a Recession deflation a drop in asset Prices and here's the good news you guys It's already happening now it's very Hard to see that because these people Keep manipulating the data this is Proven but this article was June 18th
2024 this is a recent article from redin Us home prices are rising at the slowest Pace in nearly a year and a half and I'm Going to tell you guys right now the Leading indicators if you want to know What's going to happen in the housing Market there's two primary things you Want to watch in addition to inventory Number one price drops okay I mean this Is exploded the only time we've had Price drops like this was in 2022 which Was the last time we had prices go down And it was not seasonality from any Index that you look at Brian from Clear Tax value prices went down in 2022 it Was not seasonality and so these Trends These leading indicators being worse Than 2022 should indicate to us that This will be a worse year for prices as Far as going down than 2022 and the Crazy thing is is we're in a Presidential election so they're doing Everything they can to stop the housing Market from crashing and yet they can't Hide all the data and this is one again 6.5% of listings and this is a four-week Rolling average had price Cuts look at This trajectory guys the trajectory is Insane we don't see these price Cuts in The data yet because the median is not An accurate way to determine value okay It's not but look at this we are well Ahead we're two months ahead roughly of 2022 when it comes to price cuts the red
Line is 2022 and I like to bring Attention to the red line because again When it reach this this level where We're at right now okay but it reached It around here that's when prices Started going down on a nationwide level So very important leading indicator so That's great news another set of great News is the days on market right now I Mean it's insane it's 31 days on Market Why is no one talking about 31 days on Market I mean look at guys in 2022 it Was only 19 days on Market in 2022 Remember we had decline in prices in This time in 2022 19 days on the market Right now again 31 days on the market These two leading indicator alone should Suggest a high probability of continued Price decline so the good news is guys Is again if we look back in history the Market resets things get more back to Fundamentals the price growth generally Comes back to matching income growth the Biggest problem here is is generally That happens because no one's paying Attention people lose their jobs and we Have a complete crisis what I'm trying To tell you is is right now is the time To be patient in fact you can still find Houses right now that are a great deal It's just extremely rare and you Shouldn't hold your breath and when the Market starts correcting and they can't Control it because they're trying to
Control it right now and they're Effectively doing that somewhat right I Don't know if effectively is the right Word but the thing is guys you got to Prepare right now if you prepare right Now you're going to be better off in the Future all right you don't have to learn The hard way like I learned the hard way And I lost everything bankruptcy Foreclosure repot I lost everything out Of tax Lane I mean my God I made some Horrible decisions because I wanted to Keep my head in the sand and I did did Not want my life to change I wanted to Stay comfortable even though I was never Comfortable in my bubble I was sold a Lie that I bought I mean I bought that I Bought that lie why did I do that right It was a clear lie why I didn't need all These fancy things anyways guys I mean a Lot of mistakes hopefully you don't have To learn the hard way you know and all Of said and done things are so Unaffordable right now is shocking to me I mean we don't see even more Bankruptcies delinquencies but we will You guys people right now are barely Hanging on and if that's you please okay Just watch your spending habits I'm Talking subscriptions and food those two Things alone you're going to save a lot Of money all right just look at that get Yourself in a better position stay Hopeful and remember one of the most
Important things of Life the Relationships that you have protect and Harness those relationships go out and Help some people calm some people down If they have fear of missing out either Way I appreciate you I hope you're Growing for my videos I really hope you Guys have a great weekend and other than That if you're out there investing in Real estate you guys already know I wish You luck and I hope you win
