Realities of a Real Estate Crash It Ain’t Happening!
Hi, it’s Fred Glick, talking today about what everybody’s thinking. When will the crash occur? We’ve seen the stock market have a little issue, then Bitcoin up and down. And the real estate slowed down, started back up, COVID, blah-di-blah. You can go through the news and Twitter to see everything. But let me explain something. All real estate is local. For years, the three most important words in real estate were location, location, location. That is still the case. What you’re going to find is not a general economic slow down all across everywhere. You’re going to see it happen in places that are really localized.
So, there are going to be crashes, and the reason it’s going to be, and it’s always been jobs. Now, it’s a little weird now that you can work anywhere you want. So, you’ll see the places that are not that great, don’t have the jobs, and have no reason for people to live there be worse off than obvious places that you want to go like California, where it’s still nuts. San Diego, crazy. The Bay Area, crazy. Los Angeles, pretty crazy. Not as much as the other two. Seattle? Out of its mind. I mean, for the higher-end prices, and I’m talking everything over a million, there’s so much demand. And that’s a great thing.
We’ve educated people or people who were educated somewhere else have come to this country because they want to be here. This is still the gold standard, people. California is still number one in the country, and there’s a reason. It’s nice here. People don’t want to move, and that’s the problem with supply. So, you listen to a lot of experts, and they’ll say, “Oh, the rates are going to go up and blah-di-blah.” You know what? The rates don’t mean anything. What’ll happen is the five, seven, and 10-year adjustable mortgage will just become the norm as opposed to going for the 30 year fixed. Then eventually, it’ll cycle back down and you’ll get the 30 year fixed. But rates are not going higher. There’s so much pressure to keep them low there’s no reason ever for rates to go super high. So everybody chill out, look in the right market, and enjoy yourselves. Anyways, have a good one.