Redfin CEO: Housing To See Major Price Cuts, ‘Soft Summer’ Ahead | Glenn Kelman
Video Transcript
Subscribe To Big Money almost every real estate broker is having conversations with home sellers about when you’re going to mark this property down so we can get it to move homeowners are emotionally committed to their property uh they have in mind a number and they’re loathed to give it up and so that makes home prices stickier uh but still I think it’s going to be a pretty soft summer for home prices we’re starting to see more home listings come online so expect to see more weakness ahead and softness for the residential real estate market says our next guest Glenn kelman CEO of Redfin one of America’s largest real estate brokerages and mortgage origination service companies Glenn has been on the show before check him out in the link down below or click here uh up here to see our last interview in December when he was calling for weakness in the real estate market in 2024 we’ll revisit that call see how that’s played out and get us updated views on what’s next Glenn welcome back to the show it’s great to be back your hair is looking better than ever and another Dapper suit well that’s more of a compliment to my barber than anything else but I I’ll let her know I’ll let her know what you think uh Glenn I played for you this clip offline we’ll play it again uh for the audience turns out Banks right now are building a bomb shelter just this quarter Canada’s big six banks have set $43 billion aside to cover bad loans that’s almost double what they set aside in the first quarter of last year and more than 11 times what they set aside in the first quarter before that banks are setting aside a larger amount of money than they ever have before not just now but in the previous quarter and in the quarter before that and the quarter before that the experts we spoke to say a big issue has to do with home ownership interest rates Rose uh fast and by a large amount in a way that’s never been done in Canada’s history mortgage rates are higher now than they have been in decades but that’s been true for a while right and they just dropped so what do the big Banks know that the rest of us don’t okay so Canadian banks are upping their uh portfolio for bat loans why do you think they’re doing this what are they worried about well interest rates are up and many people who bought houses with adjustable rate mortgages are in for one heck of an adjustment so some people are going to end up selling their home short where they don’t have enough money to pay back the principal on the loan or they could even go into foreclosure I think that’s more of an issue in Canada than it is in the United States where 30-year fixed rate loans are more popular so the people here who got a loan below 3% interest rate are going to sit on it for the next 30 years and it’s creating a real longterm long-term excuse me inventory crunch in the United States well I I know ref fin is based in the US so we’ll talk talk mostly about the US market today but just generally let’s address this principle because I’ve been getting this a lot in the last week so as you know the Bank of Canada this past week uh lowered their rates by uh by about 25 basis points down to 4.4 and 34 so the question I’ve been getting from people that I know is is this the time to buy a home home you’ve seen this on social media real estate agents are going online and saying hey now is the time to get a home because rates are coming down is there any truth to this logic can we just evaluate that how would you answer that question if I would ask you hey rates are down buy home now how would you answer that question mostly I tell people to date the rid and marry the house um whether that’s a high rate or a low rate so obviously you want to be opportunistic when Capital gets easier to find but the biggest mistake you can make in your personal finances is to buy something you don’t love and if you buy a house that don’t love just because rates are low you’re going to end up losing your shirt on all the transaction costs because you’re going to only hold it for two years or three years or four years and to make real money in real estate you want to buy and hold over longer time frames than that just because the transaction costs are so high so yes be opportunistic when rates come down but still be selective because the most important part of this process is buying a house you really love buying a house you really believe in whether you’re going to rent it out to somebody else or eliminate yourself okay well let’s talk about the US now uh the Federal Reserve has not cut rates uh let’s talk about whether or not the same risk that we talked about in Canada um is going to apply to Americans I guess next year or somewhere down the line eventually you’re going to have to refinance your 30-year fix right yeah well maybe not for 30 years um you move but many people are just staying put because they’re anxious to sell their house but very hesitant to sell their loan that loan is just a huge arbit opportunity for them most people here can afford to buy their own house at current rates and so the idea of upgrading is almost completely out of the question uh one advantage of the Canadian system where more people get adjustable rate mortgages is that the housing market is going to be more liquid but when the FED lowered rates in 2021 2022 um it really froze up the US housing market for possibly decades uh we’re now starting to see more new listings although that is decelerating in the last few weeks and then more stale listings where inventory is up about 16% in the United States so for the first time in probably 10 or 15 years there’s the possibility that home prices will significantly soften in the US and that is much needed because young people just can’t afford to buy a house right now wages have not kept up with home prices for a long time low rates subsidized the housing market and since that period ended we’ve been just at the absolute bottom of us home sales which bounced around between 4 and 6 million and actually went somehow below 4 million on an annualized basis um in the second half of 2023 we’re going to come back to uh rates in just a bit but since you brought up affordability this is an article from CBS Americans must earn roughly $106,000 in order to comfortably afford a typical home a significant increase from the roughly $59,000 of annual household income that put o home ownership Within Reach for families in 20 20 that’s nearly a doubling of affordability in four years right what’s the impact of this trend well it’s in an all-time low and sometimes people talk about a bad vibes economy where it’s just a bunch of zeners on Tik Tok complaining about the economy but the real issue is that young people are living in their parents basement and you can only be so optimistic about what’s happening in the larger economy if you yourself can’t afford to start a family to move out on your own to own your own home that’s the American dream and Americans are just obsessed with this idea that our well-being our sense of having arrived economically depends on our ability to buy a house and right now that dream is sort of stillborn for Americans and the millennial generation and younger those folks are just coming of home buying age it’s created a huge bulge in home buying demand but no real increase in Supply so home prices have shot through the roof and it used to be that you kind of had to win the lottery if you lived in San Francisco or New York but in the rest of the country you could have a workingclass job and still afford a home but because remote work let people leave San Francisco and New York and still keep those high-paying jobs it’s the rural parts of North America that have really seen home prices shoot through the roof and so now that anxiety that we once saw concentrated in the big city is everywhere and it means that you really have to do well to be able to afford a home does this affordability crisis if you want to call that affect the way home builders uh change their plans are they going to are they going to prioritize single family uh multif family condos does this change home builder priorities it has so we’ve seen that parts of the country where home builders can more easily build homes because there’s less regulation have had lower amounts of home price increases which is great news and in fact in places like Texas and Florida for the first time we’ve seen some evidence of they’re having overbuilt prices have significantly softened and as I said that’s unprecedented I haven’t talked about falling prices since 2010 um so it’s really been a long time coming that we are starting to get arounded on affordability in a few key places in America that have been pro-development where we’ve really been building a lot of houses uh but in most of the country there’s still a shortage and part of that is the country is so divided on whether we even want home prices to fall everybody’s already got a home has a panic attack if home prices fall um but the people who don’t really want the government to do something about it the 30-year mortgage is currently at around just under 7% it was at like 7.6 7.8 uh end of October uh 2023 so it’s come down a little bit since a couple months ago what’s next do you think where’s this headed it’s really hard to say because on one hand you still have strong inflationary pressure at least in the US where hiring has been strong um corporate earnings have been strong uh retailers have talked about some softness in the market but mostly the FED I think has felt very careful about lowering rates and there’s also just the pressure that government debt creates on interest rates where even if there’s not inflationary pressure just a larger proportion of dollars are going to uh the federal deficit so all of that is long-term inflation pressure but there’s also some indication that there’s a weakening in the overall economy in the United States so in the first quarter it was just booming the stock market was very high jobs were very strong the service sector was very strong but now the service sector has started to soften and that’s a major part of the US economy so there are really some mixed signals right now I think people are feeling anxious about the economy and anxious about inflation and usually those two work against each other usually when the economy start starts to soften inflation starts to ease and interest rates come down but right now there’s still some inflationary pressure and there’s also some economic anxiety so it’s a little bit of lions tigers and bears what generally moves the 30-year mortgage uh rate is it the Federal Reserve fed funds rate or is it economic factors is it demand and supply for housing what are the variables yeah really the most important variable right now is just uh the Consumer Price Index so that data comes comes out on the 15th of every month and then the FED responds to it a few weeks later but within 30 seconds the mortgage Market the mortgage back security Market has already priced in what they think the FED is going to do based on that inflation print so the date that is really important for mortgage rates here in the United States is just the 15th of every month because right now we all know that the FED isn’t going to back off um on its own that it’s going to have to see a significant indic that inflation is starting to ease and so far we haven’t seen that I think we’re able to shake it off January February March uh but then more inflation pressure came in April and that’s when the FED just said screw it um we don’t think there’s going to be a rate cut um anytime soon maybe one maybe two in the very back half of the year but that’s when rates went back from you know the mid sixes even low sixes back up to above 7% and that’s really where they are right now and what’s been remarkable to us because redfin.com sort of tracks not just what people are doing on the web but because we have our own agents what they’re doing when they tore houses and whether they write offers at the end of the weekend is how minutely sensitive the American Consumer is to rate increases so I can tell you right now what kind of weekend we’re going to have just based on whether rates came down Thursday or Friday so people are watching it more closely than ever I’ve never seen so many consumers who become trained as economists to look look at what’s happening with inflation and interest rates to make their own personal decisions about when they’re going to start a family or where to live yeah I mean we’re definitely seeing a shift so let’s talk about uh the shift uh today uh first a recap on the housing market so far you talk you told me in December when we when I had you on the show six months ago um I was reading an article uh by redin it says redin predicts 2024 will be the year home buyers catch a break with home prices falling and new listings Rising prediction number one house prices will fall about where home prices will fall about 1% on average to what extent has that played out so far Glenn Vindication baby I think that’s starting to happen right now so okay we really saw in the first three or four months of the year new listings accelerate now there’s just a large number of active listings the only reason those two metrics are different is because active listings also accounts for the fact that homes have started not to sell that they’re sitting on the market and so when homes sit on the market you start to see prices soften the parts of the United States that the hottest literally and in the market Texas and Florida now are seeing major price Cuts homes getting delisted because they can’t sell almost every real estate broker is having conversations with home sellers about when you’re going to mark this property down so we can get it to move and real estate is just really sticky it’s not like other consumer products where manufacturer is very rational about the pricing and immediately drops its price whenever it sees a lull in demand homeowners are emotionally committed to their property uh they have in mind a number and they’re loathed to give it up and so that makes home prices stickier uh but still I think it’s going to be a pretty soft summer for home prices luxury is holding up a little bit better um but the middle of the market which is actually been the hottest over the past three or four years that’s where home buying demand has significantly softened would you say luxury homes or higher end homes are a little more price uh in elas because I guess those people that can afford those homes they’re less susceptible to an economic downturn or recession yeah rich people are always gonna be rich they don’t give a crap is that true though I mean I’m just kind of walking through the logic is there data to support that I think right now that is definitely the case sometimes actually there’s a higher beta on luxury properties so uh typically there has been a real shortage of starter homes in America and that’s been compounded by the fact that investors have been so active in competing with firsttime home buyers for that inventory except now those investors who are using borrowed money have been squeezed by higher interest rates themselves so we’re seeing less speculation in the middle of the market and the luxury markets holding up better so actually the the middle end of the market or the middle part of the market not the end um that had been the hottest part of the market till about 6 months ago and and now that’s significantly softened and in general investor activity is really starting to decline and that had been a major change over the past three or four years where you’d seen sort of this Wall Street ification of Main Street where houses had become just another investable asset class um that all these major funds were just steam rolling into um and now they’re starting to recede and even put some of their inventory back into play well why do you think listings have been going up like you said I mean it’s expected that fed will cut rates at some point wouldn’t you want to hold well some people can’t hold because they’ve already been holding on for so long so a lot of our customers are folks who got a divorce last year and the husband and the wife are driving each other crazy or you know they own a townhouse and they’ve had a third child and they’re just bursting at the seam so they put it off as long as they could but housing is at the bottom of maso’s hierarchy it’s a basic human need and so at some point even though people don’t want to sell they have to sell and the big difference between the great financial crisis of 2008 and this massive housing correction of 2023 is pretty simple we ripped the Band-Aid off in 2008 lots of people didn’t want to sell then but there was a massive foreclosure crisis because loans were so low quality and employment went into the toilet here it’s kind of been a weird correction lless correction where yes home sales volume went way down but prices didn’t um and most people rather than putting their home up for sale when there was very little demand just held it off the market and now they’re starting to say wow I don’t know when it’s going to get better and I just have to move you mentioned earlier that you’re expecting um I guess more softness this year what particular is going to be soft multif family single family condos any any idea well condos are always more volatile than houses so uh you know if the housing market catches a cold it’s almost like the condo Market gets cancer or something it’s usually much much worse um that’s just the asset class that has a higher beta so I would expect uh condos to struggle more um I don’t think it’s going to be some catastrophic price drop what’s been catastrophic has been the decline in home sales so volume is lower than it ever has been before it’s lower than it was in 2008 but prices have held up mostly and now they’re only just beginning to soften and the issue is that there aren’t enough sellers there aren’t enough buyers um both sides are affected by interest rates almost equally the sellers don’t want to sell because they want to hold on to their mortgage the buyers don’t want to buy because they simply can’t afford a mortgage um so it’s been a real Jam um in the US housing market and the only source of relief has been the builders and they have been building like crazy that’s what’s kind of broken The Log Jam and started to drive prices down is that there’s just excess new inventory is there um housing shortage issue going on in the US let me give you some stats for Canada uh where I live so last last year 1.2 million people uh that was the population growth of Canada 1.2 million people in 2023 now 99 sorry 98% of that came from immigration okay housing starts in 2023 as reported by the Canada housing mortgage and housing Corporation only 222,000 units recorded uh actually down from the previous year so more immigrants are coming into the country than housing starts uh potentially a problem here is there a problem over there where you live we have a huge backlog even though the United States has been much more Draconian about immigration and population growth is somewhat slowed um we are just millions of unit shy so we could talk about price declines is some kind of Calamity but let’s just go back to the outside of the show where we said that affordability is the real Calamity so home prices need to come down by hundreds of thousands of dollars to meet workingclass people where they are and the only way that can happen is if we continue to increase the supply and so I see this correction in prices modest as it is as long overdue and absolutely welcome and the same thing I think will be uh the case in Canada um already I’ve seen and we’ talked about this I think on the last episode of the show that Canadians have a different attitude toward home prices where they are much more aligned behind this idea that bringing home prices down and letting more people afford that home is just fantastic and America needs to get that way too because otherwise people are going to vote with their feet and they’re going to keep going to Canada instead of to here well we do have uh moose and uh and Maple so if you’re into that welcome welcome North I guess uh you’ll be competing with the 1 million immigrants that come in every year through our borders uh Glen let’s talk about okay so let’s suppose the Federal Reserve the US Federal Reserve cuts at some point later this year or next year right now there’s currently a 45% chance of a rate cut by September there is now also a uh the CM F watch to us pricing in a yeah about a 46% chance of a cut by November September is that enough though to reignite the housing market to turn back this softness you’re talking about 25 basis points is that enough yeah maybe I think you just have to realize that that cut is already priced into the mortgage market so Traders trade on future information and so if there are two cuts mortgage rates will go down um if there’s only one cut uh mortgage rates will maybe come down down modestly because it’s still possible there won’t even be one at all but by the time the cut happens the Traders are already looking ahead to the next year and trying to factor in how the FED is going to respond to inflation so I think the real issue is will there be several rounds of cuts um in the first half of 2025 because right now I think there’s a pretty strong consensus that maybe we’ll get one cut and we’ll be lucky to get that um so if we get it fine rates come down a little bit but I think before you see significant refinancing activity you’d have to be somewhere in the low sixes um just coming down 50 basis points um would spur significant purchase activity um and one cut might be enough to do that uh it’s just a question of whether we can get a soft Landing if you can keep rates higher for longer and still have people feeling good about the economy good about their job uh right now maybe the other Factor I always sort of discount it but um you just hear it from too many home buyers is the American election has become such an incredible spectacle uh that it almost suspends all major forms of economic activity because we’re just glued to our screens trying to figure out if it’s going to be Biden or Trump so uh that spectacle um will probably lead many people to put off their home buying plans as we get toward the late summer they’re just going to say maybe the economy is going to change based on the election I’m going to put off this big decision until I see who’s in the White House well the unemployment rate has been ticking up let’s assume this trend continues which is to say that more people will I guess lose lose their jobs unfortunately well if you think that your job is at isn’t as is at risk would you would you be more incentivized to hold or sell H I think that you know people who are worried about losing their jobs definitely aren’t going to buy a house and at some level you can talk about well what if rates came down what if rates went up volatility itself is the enemy of people’s long-term plants and so the argument here is that if you’re going to buy a house and own it over 10 20 or 30 years the challenge you’re going to have is that you have to believe that the economy is basically going to be a stable system and right now because of the ups and downs and how violent they’ve been some people are just saying screw it I want off this marryg go round or whatever terrifying Disneyland ride this is it’s just been too bumpy for me well well you would think that with more people not buying homes and renting rent would be going up across the board but according to this report from rein that’s not the case the sun Bel is seeing some of the biggest rent declines in America so nine of the 10 metros facing the steepest drops and nasing brents are in the Sun Belt the exception of Seattle so we’re looking at Seattle Austin Nashville Jacksonville uh the national average is actually a 1% but these these the these cities these areas are down like 6 7% what’s going on there we’ve just built a lot of apartment buildings so there was a period when it was easier to build an apartment building it cash flowed better uh than building houses um the developers themselves were taking advantage of low rates and just thinking about how their Capital um their cap rate could be really good so we just got a lot of apartment buildings in the Sun Belt and now uh that trend is starting to lead to softness in rents but mostly rents are pretty darn High and they’re pretty stable so they’ve stopped increasing um but they aren’t really plummeting yet the uh the national asking rent uh Rose for the first time in a year according to this report from red fin uh so are you expecting rent to stay relatively strong especially in light of the fact that people aren’t buying as much I don’t expect any major changes in rent but you just have to think of the economy as somebody walking along a ridge and sometimes the ridge is really broad where there could be all sorts of wars and debt crisis and geopolitical events that aren’t really going to knock the economy off the side of the mountain but the ridge is getting narrower and narrower there’s a war in Ukraine there’s another war between Israel and Palestine there’s an election that seems to be higher Stakes than ever before there’s some political dysfunction and there’s General economic anxiety and so the idea that we’re going to be able to make predictions 6 12 months out I think there’s more beta in the overall economy than there usually is you know often times you can kind of take some points and just draw a straight line another six months ahead um but the line’s been pretty up and down lately and it’s anyone’s guess what’s going to happen so I think there’s just more volatility in the system than ever before and sometimes fortune favors the bold that people who want to invest into that and really know what they’re doing can do it um but you have to have a higher appetite for risk okay let’s talk about uh real estate agents in that industry now when I spoke with you six months ago uh I was reading this report hiring uh rather than hire their own agent many home buyers will work directly with a listing agent now this has been a long uh been common with the listing agent works for the Builder but with inventory low and competition amongst agents High more resells are now being handled entirely by the listing agent uh let’s talk about this trend and any developments here sure so on March 15th uh this class action lawsuit against the national Association Realtors here in the United States introduced a seismic change forcing buyers to pay their own agent historically in the United States as in Canada when you list a home you agree to pay not only the listing agent but you also set the fee that you’re going to pay the buyer agent and that’s kept fees somewhat High uh because when the buyer doesn’t pay her own agent she’s somewhat indifferent to the size of the fee and the seller pays a significant fee because she doesn’t want a buyer’s agent to skip showing her house um but now it’s possible that buyers will pay their own agent we have started to see more people listing homes where they don’t pay a buyer’s agent at all and that encourages buyers to go straight to the listing agent and say let’s just have one agent and not two involved in the sale and that way the fee will be closer to 3% rather than five or 6% and everyone will make more money so that is a trend that just came out of nowhere over the past 12 to 18 months the lawsuits had been pending for years before that but the industry really wasn’t paying attention and suddenly it’s gripped consumers Consciousness so I think there’s the possibility of structural change but there’s also just more awareness among people oh my gosh I didn’t know how much my real estate agent made and they’re going to be more aggressive about looking for a deal so we’ve seen a modest increase in direct sales the terms of the settlement where we’re going to see just how much the industry changes go into effect this August g g g g we’ll see what happens how has this trend affected red fin have you noticed any differences on the platform well red fin it exists to redefine real estate and consumers favor we want to give people a better deal we’ve already always charged a lower price and so for us um we initially thought hooray this is finally going to bring about massive change in the US real estate industry I have since become one step more skeptical about it I still think there’s the possibility of fundamental change but I’ve just seen how hard the other players in the industry have been at work to try to reconstitute the status quo in some other way so it’s really anybody’s guess how the industry is going to change but I do think a Savvy consumer is going to be able to get a better deal sometime in the second half of this year than any point over the last 20 years from the real estate agent do you think the government should subsidize more Home Building yes but before you subsidize it why not just deregulate it so I’m an environmental and yet still I think some of the environmental regulations actually prevent density and hurt the environment so there are parking set of sides where you can’t build a building unless you also have plenty of parking and that just prevents Builders from creating large buildings in places like Vancouver and Seattle actually if you look at the difference between the skyline behind you and the skyline behind me you have much more density in Vancouver because actually Seattle is a much more regulated housing market and we’ve started to say build baby build which means that if it’s near Transit you almost automatically get a permit if um you don’t have enough parking don’t worry it doesn’t matter we just want more density in American cities because that leads to more affordability and a more climate sustainable way uh final question Glenn uh rent control what’s your view there support it don’t support it uh I don’t support it I’m I think that it leads to really bizarre behavior avior maybe you can do it on a short-term basis but longterm um rent control discourages people from building properties and the real solution isn’t to prevent price increases when there’s a shortage but to address the shortage and to build more units so I used to be in favor of price controls um but I’ve just seen that Builders go to other cities where they can get Market rates and so I would prefer to be Builder friendly I know that sounds like I’m a sellout but really I’m just a pragmatist yeah all right makes sense thank you very much where can we follow you your work you can follow me at glenn. kelman or maybe Glen kelman at twitter.com and I’m also on threads which is sort of the hip thing to do right now well okay see you later thanks GlennHow Big Money Invests In Real Estate
Solving Common Challenges
Investing in real estate is a proven strategy for wealth generation. Yet, it is not without its challenges, especially for those new to the field or without the vast resources of big-money investors. Ever wondered how the big players overcome these obstacles and consistently succeed? Let’s dive into two common problems in real estate investing and explore effective solutions to tackle them.
Access to Capital and Financing
One of the biggest hurdles for real estate investors is accessing sufficient capital. Real estate investments often require significant upfront costs, which can be daunting. Have you found yourself struggling to secure funding for your investment projects? Without the deep pockets that institutional investors have, many potential investors hit a wall.
Challenges in Securing Financing
- High Down Payments: Traditional loans often require large down payments, which can be a barrier.
- Strict Lending Criteria: Banks and lenders have stringent criteria that can be difficult to meet.
- Risk Assessment: Lenders may view real estate investments as high-risk, leading to unfavorable loan terms.
Market Knowledge and Timing
Understanding the market and timing your investments are critical for success in real estate. How do big investors seem to always get it right? They possess extensive knowledge and resources to analyze market trends and make informed decisions. But what if you don’t have access to that level of expertise?
Challenges in Market Knowledge
- Lack of Data: Accessing comprehensive and reliable market data can be challenging.
- Understanding Trends: Interpreting market trends requires experience and expertise.
- Risk of Overpaying: Without proper market insight, there’s a risk of overpaying for properties or missing out on lucrative opportunities.
Solutions to Overcome These Challenges
Now that we’ve identified the problems, let’s explore how you can overcome them with strategies that even big-money investors use.
Leverage Partnerships and Syndications
Forming partnerships or joining real estate syndications can provide the capital and resources needed for larger investments.
- Step 1: Network with other investors and professionals in real estate forums and meetups.
- Step 2: Look for syndication deals where multiple investors pool their resources.
- Tip: Ensure all legal agreements are clear and protect your interests.
Utilize Creative Financing Options
Explore alternative financing options beyond traditional bank loans to raise the necessary capital.
- Step 1: Consider options like hard money loans, seller financing, or private money lenders.
- Step 2: Evaluate the terms and conditions carefully to ensure they align with your investment goals.
- Tip: Build strong relationships with these alternative financiers to secure better deals in the future.
Invest in Real Estate Education
Equip yourself with the knowledge needed to analyze markets and make informed investment decisions.
- Step 1: Enroll in real estate courses and attend industry seminars.
- Step 2: Subscribe to market analysis services and real estate journals.
- Tip: Stay updated with the latest trends and news in the real estate market.
Use Technology and Data Analytics
Leverage technology to gain insights and make data-driven decisions.
- Step 1: Use real estate analytics tools to evaluate market conditions and property values.
- Step 2: Employ software for financial modeling and risk assessment.
- Tip: Regularly review and analyze the data to stay ahead of market trends.
Diversify Your Investment Portfolio
Spread your investments across different types of properties and locations to mitigate risk.
- Step 1: Invest in a mix of residential, commercial, and rental properties.
- Step 2: Consider properties in various geographical locations to reduce market-specific risks.
- Tip: Rebalance your portfolio periodically based on market performance and trends.
Start Fixing These Problems Today
By leveraging partnerships, exploring creative financing, investing in education, using technology, and diversifying your portfolio, you can overcome the common hurdles in real estate investing. These strategies will help you secure capital, understand the market better, and make informed decisions.
At BigMoneyInvesting.com, we are here to guide you through these processes. Our resources and community support can help you take the first steps toward successful real estate investing.
Who Am I?
Hello, I’m Chris, the founder of BigMoneyInvesting.com. I’ve been where you are now—eager to invest in real estate but unsure how to navigate the challenges. I started this platform to help people like you who are passionate about investing, wealth creation, and understanding financial issues. At BigMoneyInvesting.com, we provide tips, strategies, and community support to help you solve these problems and achieve your investment goals. Join us, and let’s build wealth together!
Thank you for being a part of our amazing community.
We can’t wait to see you shine finanically!
#BigMoneyInvesting #big #money #investing #lifestyle #investors
Support Big Money Investing Sponsors
-
Book Sets, Books, How Big Money Investors Think About Money, How To Think Like A Big Money Millionaire
Big Money Financial Investment Management Book Set
$85.44 – $177.66Select options This product has multiple variants. The options may be chosen on the product pageQuick View -
Books, How To Think Like A Big Money Millionaire, Top Level Communication Skills
How to Talk to Anyone by Leil Lowndes 92 Little Tricks for Big Success in Relationships
Original price was: $18.24.$12.89Current price is: $12.89.Select options This product has multiple variants. The options may be chosen on the product pageQuick View -
Books, How To Think Like A Big Money Millionaire
Poor Economics By Abhijit V.Banerjee
Original price was: $18.09.$12.14Current price is: $12.14. -
Book Sets, Books, How Big Money Investors Think About Money, How To Think Like A Big Money Millionaire, Spiritual, Wealth Creation
7 Book Set – Master Your Time – Master Your Beliefs – Master Your Destiny – Master Your Thinking – Master Your Emotions – Master Your Motivation – Master Your Focus By Thibaut Meurisse
Original price was: $93.43.$67.33Current price is: $67.33.
Comments (36)
Are you selling your home this year? Comment below and don't forget to subscribe!
FOLLOW GLENN KELMAN:
Redfin: Website: https://www.redfin.com/
Twitter (@glennkelman): https://x.com/glennkelman
Home Prices Falling: https://www.redfin.com/news/housing-market-update-home-prices-decline-austin/
The Sun Belt Is Seeing Some of the Biggest Rent Declines in America: https://www.redfin.com/news/redfin-rental-report-april-2024/
Lack of inventory is the reason for these prices! Let’s not pretend these investment funds aren’t buying up all the inventory
Our economy is struggling with uncertainties, housing issues, foreclosures, global fluctuations, and the pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.
Everyone should listen to this to the end
"The american election is a spectacle." He is absolutely right. Since when did a crappy fantasy league get so much attention and cause so much tumult?
Even if prices go down 50% they'll still be unaffordable for the majority of people.
Prices in Markham and Stouffville will rise double digits this year. The temporary lull in housing will end June 25th this year.
Prices to the moon! get rdy for 10 million dollar condos!
Government regulations and zoning have done a lot to drive up home cost. Other things like material and labor cost of gone up, but I don’t know if they can be helped. But the government stuff certainly can And Zoning so people can have smaller houses like a micro house would certainly help. regulations that make development of lots more expensive is a problem also
lol Redfin CEO so real. "Rich people are always going to be rich, they don't give a crap." I like him.
Such rubbish…
Just closed on a house last week. The biggest hurdle was getting sellers to realize that the sentimental value they FEEL that their home has doesn't ACTUALLY exist in the real world. We literally had a homeowner tell us "my wife and I lived in this house for 42 years and raised our boys here. We cant imagine letting it go for less than X". People really think raising a family in a house makes it more valuable to a buyer. Makes zero sense. DON'T EVER OFFER LIST PRICE!
….a home & a condominium is a “liability” unless it “cash flows” to your bank account,corporations or LLC….until than it’s the banks/Lenders “Asset” (Mortgages)!!!!!
“Household incomes must be more than $106k annually because “Gross Pay” hit different than “Net Pay”!!!!😌😌😌😌😌#BalanceSheetsMatter#FinancialStatementsMatter
“Leave Emotions Out Of Financial Transactions!!!!”#FinancialLiteracy101#BuyAndHold#ExitStrategy
It perplexes me where home sellers are going after they sell?? They must have a bunch of cash from inheritence or something to buy a home for twice the price and interest rate twice probably what they have now. The only reason inwould give up my 3 percent rate is if i could be guaranteed nvidia stock would triple in a year. If that was the case i would live under a bridge for a year and give up my 3 percent.
David Lin to his random guest: hello, tell me more about the forthcoming collapse – part 4743899.
I'm always jealous of David's nice head of hair. Thank you for your work bringing us the facts sir!
I’m only here because David has fabulous hair— and because I’m worried the RE bubble will pop.
At least half of you voted for Boden. Did you see this being different?…sad. BTW rates at 9% before 5%
Denzel Washington once said, “If you don’t read the newspaper, you’re uninformed, if you do read the newspaper, you’re misinformed.”
#denzel #denzelwashington #quotes #quote #quoteoftheday
Draconian immigration? Wtf is this guy talking about? We take more LEGAL immigrants than any other country in the world. THEN you add all the ILLEGAL immigrants flooding for Mexican and Canada it’s ridiculous.
Home prices decreasing will mean builders would stop building because profit decreases. So negative relationship. If rates drop it’s because the economy is in the toilet (which it already is). The fact is that government overspent and us continuing to overspend causing inflation. The rest of the world is not absorbing our dollars anymore so asset prices have skyrocketed. Meanwhile wages haven’t increased. Everything comes down to our government has stolen our purchasing power through inflation
“Draconian about immigration”? WTF! You just let me know your politics and validate why I don’t use your service!
I realize Redfin has to push housing, but so much misinformation! The Fed DOESN'T set mortgage rates. Mortgages follow the 10 year treasury bond rate, which is a MARKET rate, influenced by multiple factors, including Fed policies and Treasury issuances.
There is no structural shortage of homes. There is a shortage of homes for sale.
What really makes the housing market break?
No one buying or selling bc if the economy
The percentages of foreclosures and no movement in the real estate market?
FedEx and BestBuy … more massive layoffs announced today.
It’s fooked!
Nothing new here
It’s a shit show
The banks are covered by the Federal Reserve from day one of the mortgage when the customer's signature pays for the entire loan and the bank is paid immediately plus interest with our promissory note. It is the homeowners who are suffering NOT the bankers. We have been so scammed
All the world agreed living expenses is triple some area quadruple who afford it the overpriced house prices!! Home sellers are under the illusion of COVID era . I think they will learn hard ways. When the housing market crashes which is very so……………….on. Wait and see. Reality is people are struggling to live 😢😢😢😢😢😢😢😢
IMMEDIATE RED FLAG. CPI is not always released on the 15th. It’s released today on the 12th. Please vet your people to interview better. Said many wrong things on mortgage interest rates. You must take your audiences for lDIOTS.
"The only way home prices can come down is if we increase supply." That's investor-side economics at its slimiest. We could have all the supply in the world, but as long as we allow that supply to be hoarded by investors, we will still have affordability problems. Take the investors out of the equation, and working people could easily afford homes again.
20:25 The answer is a resounding "NO!" not a "yyyyyyeah….". I thnk Glen knows this. I hope he knows this.
“Correcttionless correction….”