When Will Overbidding on Houses End?

She is an example of the failed education system not teaching basic economics

Paid all cash for my home in 2021. Worst decision ever.

Good chat. It isn’t just a matter of demand in terms of number of buyers. It’s the obscene wealth that enables people to pay way over asking price, cash. It’s happening in Australia, too.

Dave's still blaming Fauci for the pandemic?!?!

It’ll stop when people/buyers stop paying more than what something is worth. As long as there’s someone, anyone that’ll pay more, then the prices (for everything and anything) will always remain stupidly high. We’re all just hurting ourselves and it’s never going to stop till we stop.

Dave mailing it in and giving a condescending, lazy, stock answer. This is similar to the car market. There is no shortage, they just want you to believe that, to justify the overinflated prices. Dave gives no statistics on inventory vs buyers. Houses and car prices will eventually come back down . The government may need to step in to stop all the price gouging though.

Print 30 trilion and then wonder?

"Fauci Pandemic"? Get real. Try living in it as a healthcare professional. Your comment is part of th problem with the division in our country. You can give great advice and guidance in what you specialize in. But how about humbly staying in you lane.
Sometimes your insensitive ego is a real turn off.

I'm seeing many houses in Nashville sitting on the market for more than a month, many of them getting price reductions. Mostly in Madison where I'm looking, but likely in other areas. Maybe Dave hasn't looked lately but things seem to shifting back into a buyers market because no one wants to take out a 8 percent mortgage.

It's not migration. Housing costs are through the roof in Illinois too, which is supposedly losing population.

The issues are construction costs and interest rates preventing people from moving out of starter homes.

Do not forget the biggest thing is that housing is a commodity! Air BNBs etc... are buying up houses en-mass! This is preventing a lot of families from purchasing houses!

"The Fauci pandemic?" No mention of private equity buying up residential home stock? Lol good luck to those who listen to this guy

When mass immigration ends..... it's simple supply and demand.

I live in California the housing market here is crazy. We just put our house on the market and they only had 11 houses on the market like ours. If interest rate was lower the price would be higher.

It's so good to hear that we are not alone in this house buying struggle

What we have now is renters market lol.

Dave Ramsey is a fraud.

ive lived though many a housing downturn. in my opinion when you need three or more average incomes to buy the place the place is to much.. Its to much for you or its or just to high over all


.We are at that point once again.

down she goes.

Worst advice I ever got was to not buy my home on a 30 year mortgage, I saved and am now priced out of the market. Thanks Dave

Overbidding on homes is the dumbest thing to ever happen to a homebuyer.
You're digging yourself deeper into debt, especially when the mortgage is time to renew.
The only winners in this are the lawyers, the real estate agent and the municipality.

Philly is a sh*thole like every other major DemocRAT run city. Get out of the city!

But these are not homebuyers but investment buyers that are driving the price up
I don’t believe there’s a shortage of real estate. I believe there’s an overage of investors.
Problem is real estate inflation is performing much better than the stock market

Biggest
Bubble
Along with
Biggest bank
Fraud
Bad loans sincen2008

This guys still talking about FAUCI? Brainworms

If someone can afford to outbid you and they want the house bad enough, you lose. Plain and simple. Who is the seller going to choose? Right.

Maybe I missed this in the comments and in the video, but don’t realtors price it lower to gain interest and create a bidding war? It was never going to sell for the listed price. Is that just in the area I live in???

Realtor in the Philly suburbs here, you gotta be ready for bidding wars in the suburbs. In the city, you can buy more easily.

Currently the national debt is the third largest expense in the national "budget". At the current interest rates it will be the largest expense in about four more years. If the Fed trades higher rate chaos for lower rate chaos, get ready. Either way all this insanity will end soon and new and larger problems will begin.

When they BUYERS are big corporations, they buy it all up and set the prices as high as they want. Where is the anti trust suits against these greedy CEO’s. There’s a ton of homes being held hostage as rental properties and the average American can’t afford their right piece of the pie. We need regulation!

The housing market in Australia is terrible as well not sure how to compare it with the US but basically the current situation if trends continue majority of Aussies will not afford to buy a home even with the average income and getting a loan, part of the problem is we have a small minority of people who already own a few properties but also wealthy foreigners are allowed to bid, and 9/10 people will be outbidded at an auction, I believe a combination of more homes need to be built but also a 5 year temporary halt on illegal immigration would help in this case.

Corporations

On top of that includes inflation boosting cost of building materials, and in a shortage of skilled building labor will equate to much higher prices. Self build construction loans could help this but that’ll never happen.

In most cities, you now need to earn double or triple the average household income just to afford an entry-level home.

It has in AZ. Lowest sales rate since 95. I’m sure Dave will have this delivered like other comments

Blackrock is driving up housing prices. It will all eventually crash

Dave, it's "exacerbated" not "exasperated". You're welcome 😊

Location could drive the bidding up.

There are so many bots in this comment section its unreal

Sellers need to refuse corporate money and sell to families even if they are bidding 80k less than corporate money. I would. Support American people.

Stop letting people into this country would be a great start.

Faucci pandemic

California’s building apartments and rental houses only

It's all just bs.

You would be absolutely stupid to buy a home now. Unless you can buy it straight up with cash, its stupid. You will get burned.

Should talk about the rising foreclosures in America.

I think 50-60% of these homebuyers should really be renters. Its all gonna crash in the end. I think before 2030.

I think the ridiculous state / local barriers to entry to building impacts the problem as well. I'm not sure the appraisal is relevant to the current market right now.

to answer the header, no.
it will ALWAYS be an emotional decider.

This is incorrect. The housing market is insane because there are a few companies buying all of the single family homes in the county. Think Blackrock, Berkshire Hathaway, etc. They are the cause

I wonder how many of these buyers Dave.Ramsey accounts for.