Housing Market Crash Coming? | The Whole Truth & What We Can Do!
You need to be dynamic as the market is dynamic. If you aren’t thinking creatively, it might be a challenge for you. Whether it’s creatively marketing creatively doing deals with your network making offers on the MLS, cold calling Pay Per Click advertising, you name it, making sure you stay dynamic as the market stays dynamic or is dynamic is going to be a huge thing for your level of success.
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Yo, yo, what is up? What is up everybody? Welcome back to the science of flipping and before I even get started into the market crash, and what is happening in the real estate space, I want to make sure you know, to get your tickets at thereimasterclass.com for the upcoming live event, June 24, 25th. In Scottsdale, Arizona again, this shirt, thereimasterclass.com. To get your tickets, we are going to be reviewing all of the main subject matters that matter to you. In this dynamic real estate economy, as I just mentioned, the market crash? Was it going to really crash hard? Is it just going to rectify? Or is it just going to adjust? You, me and all investors need to be dynamic, we need to be fluid in this dynamic real estate space. So I encourage you from best practices to marketing strategies, finding the right deals, building a rental portfolio in this type of economy, how to raise private money in this type of economy, what lists to pull how to actually get into different spaces like luxury flips, how does that actually work? This is really going to be in the trenches tactical for this economy, creative financing sub to innovations, we are going to be going over it all. So you can stay up to date with what’s going to work right now as this real estate economy is changing real time. So if you have not got your tickets, I implore you to be there. In fact, if you really want to spend some good time, it’s three days for the VIP ticket two days for the general admission ticket, thereimasterclass.com. Get your tickets.
All right. With that said, let’s talk about this market crash. If you’re watching this, you’re seeing I’m doing rabbit fingers. The reason being is I know there’s a lot of people out there saying it’s absolutely crashing. Well, I talked to a lot of people, and I’m a part of several different masterminds. And some of my best friends in the space are doing, you know, multiple hundreds of deals a year, multimillionaires. And so we’re all talking about the same thing. And that’s how to navigate what’s happening. What’s the actual reality? Or is it just news being news and trying to scare people? Well, I think it’s a little combination of both. There’s no doubt news is trying to create sex appeal by saying everything’s falling apart and interest rates are going up and no one can afford anything. But if you do a little deeper dive and you actually Google some of this stuff. Some very important companies that actually create and track this data I will show you a little bit of otherwise, one of the most important points I want to bring up to you guys right now is the market of Phoenix. You guys know that this is my Market. Now. It is now known that, you know, the Phoenix market has went from 3,000 active listings just about 45, 60 days ago, to just about 10,000. That’s a 3x fold in terms of active listings on the market. Now most people will say, Oh my god, this is it. This is the start of it. The markets crashing there’s going to be a bunch of new listings. It’s going downhill. That’s the sensationalism of the news. That’s what the news is doing. What’s really happening is if you track the real data, is the same amount of listings in the last 45 or 60 days have hit the market over the last year meaning there has been no percentage increase of more listings hitting the market than there was a year ago when the market is on fire. Right? I’m not gonna say was because is on fire. The main difference is the buyers. The buyers aren’t buying as fast it is taking more time for them to potentially get the loan, the market or the listings are sitting a little while longer. So it looks as if everyone is trying to sell their home now it’s going to be a sell off you know fire sale is actually just not the case.
Now in combination with that my personal theory is some of this has to do with FOMO Yes, FOMO fear of missing out. I think there’s a lot of people that were trying to kind of time the top of the market and said okay, maybe I should wait until whatever number before I’m willing to sell and now that They’re seeing some level of correction, right? And I’m not even certain that’s the right word yet. They’re like, well, I don’t want to miss this incredible time to sell my home because I have 200, 300, $400,000 worth of equity in my home. I’m going to sell. So there is a level of homeowners actually putting their home on the market because of this fear of missing out. Now, the interesting thing about all this is there’s still a mass volume of deals being sold each and every month on the MLS. And again, if you go back and look at some of the articles, whether it be by Redfin or Zillow, or Inman, or you name it Cromford Report, you’ll actually see there’s not a big discrepancy right now on how many homes are being sold month in and month out. So my personal opinion regarding all this kind of stuff is the market isn’t coming to a massive crash. Now, you should still be very dynamic in what is actually happening. Meaning if you’re a real estate investor, should you be thinking more creatively, when going and talking to a homeowner? Should you be finding more resources and being more dynamic to find these deals than just being a one trick pony? My answer is yes. To the point that I’ve actually found the MLS is one of a new resource that I’ve actually now bought into this philosophy after years and years and years of saying, you can’t get good deals on the MLS. Some of my personal students have been crushing it. Others are crushing in the space. And I said, Okay, Justin, get out in your own way, start adding the MLS to your acquisition strategy, but you need to be dynamic, when the market is dynamic. Meaning there are real time things changing interest rates are going up. There is not necessarily an influx of listings, percentage basis, but because buyers are becoming a little more gun shy and or can’t afford the payment. They’re not buying as frequently. Now that’s a big issue. Right? I’ve said this from the beginning, if you followed me for years, that I don’t believe people are buying houses for the right reasons. In fact, if it wasn’t for me, moving to Miami and my wife asking to buy a home, I probably would actually still be renting because I actually buy homes as an investor, right? A lot of people are buying homes for the mortgage payment, right? They’re buying the payment, not the home in that way they can afford the payment. But when things get a little tricky, or interest rates rise, they might not be able to afford that home, which is a good thing. They probably shouldn’t be buying it in general. Right. So I actually think this could be a good thing for a lot of people now, could this caused some damage over the last year or two people that were buying a mortgage payment not buying an actual home? Maybe could there be some sell off moments where people are going to have to sell maybe they’re going to be caught underwater? Maybe they’re going to not be able to afford because they got an adjustable rate. All those things absolutely could happen. That’s why this market is dynamic. Do I believe we’re going to go through a big real estate recession? The answer is going to be no for one simple, easy reason. It is still a supply and demand issue. No matter how we cut this, there is still not enough homes for the demand that is out there. The builders took too much time off from building after the recession. There is not enough new builds. In fact, some reports are mentioning right now that the builders are slowing down production. And some are even halting production right now to kind of navigate what is going on in this dynamic market. Now the good news here is, hey, lumber is cutting prices dramatically. Well, that’s great. But as a time being that’s not hyper affecting most of us investors, unless you’re doing remodeling at scale. So while some of that news sounds great, and again, is in the news, it doesn’t really, really help right now, because while lumber was way too expensive for the last little while, that’s not going to make a builder all sudden change their mind about building a massive, you know, community out in Mesa, Arizona, or wherever they might be building it, that comes down to are they going to be able to sell or the buyer is going to be there. And that’s why I brought up the first point is in Phoenix, just as that one market. It’s not that there’s been an influx of more listings than ever before, it is just that buyers aren’t buying as fast as they have been because of this interest rates.
So now if interest rates continue to rise, which they will I think they’re going to rise a little slower than they have been that is what’s gonna affect it. Now. It’s actually okay if the market adjust quite frankly, again, in my opinion, it needs to happen. The last two to three years has been insane. And it’s just not healthy to have that much of a spike. Because what goes up must come down in the faster and harder we go up potentially the faster and harder we go down. Now the game has changed. There are hedge fund buyers, there are AI buyers, there are institutional investors in general that are going out and buying properties and taking them off the market forever. Right? There are people that not people, but usually institutions that literally are buying things, and you will never see that home listed again, right? Because they’re going to just keep it forever. So a lot has changed since the recession. But I’ll tell you, you need to be dynamic as the market is dynamic. If you aren’t thinking creatively, it might be a challenge for you. Whether it’s creatively marketing, creatively, doing deals with your network, making offers on the MLS, cold calling Pay Per Click advertising, you name it, making sure you stay dynamic as the market stays dynamic, or is dynamic is going to be a huge thing for your level of success. Now, again, last quick little promotion, if you’re not actually at this event, you’re doing yourself injustice, because we are going to be teaching exactly how you can be dynamic. It’s really important in this fluid nature of the real estate economy that you know what to do and what not to do. So where a lot of people take some big swings of the bat in potentially miss. I don’t want you to do that. I want you to be in Scottsdale, June 24, 25th at thereimasterclass.com. Get your tickets if you want even extra hand holding and assistance. There’s a three day VIP option. I would encourage that for you guys to spend more time with yours truly. So this is not likely going to be a market crash. This is likely going to be some level of an adjustment. And that’s actually okay, but it means you need to be as dynamic as the real estate market is being dynamic. Cool? Alright. If you like this, make sure you give it a like and make sure you subscribe to the YouTube channel. I’ll see you guys on the next episode. Peace