September 14, 2023 • 18 mins
Hi This is Brad Weisman - Click Here to Send Me a Text Message
Pete Heim is back w/ Brad!! Ever wonder how the real estate market has evolved over the decades? Worry no more, because we're unraveling the intricacies of the current real estate trends with our regular guest and industry expert, Pete Heim. We're looking at figures that haven't been seen in over half a century: an astounding 68.7% of homeowners with mortgages have a minimum of 50% equity. Foreclosure rates are at an all-time low of 186,000, a steep decline from the 2010 peak of 1.7 million.
But there’s more! We’re examining the profound influence of home ownership on net worth, featuring the intriguing generational differences between renters and homeowners. Generation Z is shattering norms by immediately buying homes after leaving their parents' nest, unlike their predecessors who typically opted to rent first. It's an eye-opening discussion about the importance of financial acumen in home buying and how the rise in home ownership has impacted net worth over time. So, gear up for an episode packed with valuable insights to help you navigate the current real estate landscape! #GenZ #Millennials #bradweisman #peteheim #foreclosures
We know self tanners. We love self tanners. To us, self-tanner for men are a necessary part of life. You see a pale dude on the street and he looks like a fish out of water. It's a real problem, bro. But this exact passion for self-tanner is why Bro Glo is so rad.
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Welcome to The Brad Weisman Show, where we dive into the world of real estate, real life, and everything in between with your host, Brad Weisman! 🎙️ Join us for candid conversations, laughter, and a fresh take on the real world. Get ready to explore the ups and downs of life with a side of humor. From property to personality, we've got it all covered. Tune in, laugh along, and let's get real! 🏡🌟 #TheBradWeismanShow #RealEstateRealLife
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Brad Weisman (00:00):
Hello, this is Brad Wiseman.
You're listed to Real Estateand you we're back with one of
the guests that just just won'tstay away.
He comes back every singlemonth and you know we try to.
And, hugo, I thought we weregoing to change the locks down
here so that he couldn't get in.
He broke in.
It's amazing.
(00:21):
You know, here we have PeteHeim in the studio, so good to
see you.
Don't listen to any of thatstuff.
I said before that was youdidn't have your headphones on,
did you?
No, but Pete's back.
We're always, you know, talkingabout what's going on the
market.
You're always keeping us up todate on what's going on, and we
are starting to see some changes.
Pete Heim (00:38):
Yes, we are.
Brad Weisman (00:38):
Things are starting to change, but there's
there's a lot of good in thechange.
I mean, I don't think there'sany doom and gloom here, it's
just.
It's just there's good stuff.
The only thing that's a littlebad is the rate's going up.
Pete Heim (00:47):
That kind of sucks.
Brad Weisman (00:48):
Yeah, that is, but , but can't do anything about it
.
Yeah, what are you gonna do?
That's right.
So you had talked to me beforewe went live here about there's
some really good numbers on theequity that we have in our homes
today.
Let's talk about that first.
It's crazy.
Pete Heim (01:02):
I mean, this just came out not too long ago, but
68.7% of people out there thathave a mortgage or have paid off
their mortgage or at least have50% equity.
Brad Weisman (01:14):
That's amazing.
Is that the first time inhistory, or is that that has to
be breaking a record?
Pete Heim (01:18):
over 50 years.
So over 50 years, I guessthat's as long as they've been
keeping, okay, god.
So yeah, I'm going to saythat's the first time since
we've been keeping track of that.
Now, however, though, way backin the day, you'd have to pay
cash for your property, usuallymost of the time before 20% down
at least right yeah but thatwas before mortgages came out
and all that stuff, so we'retalking way long ago.
Brad Weisman (01:36):
This would be so.
Pete Heim (01:38):
that's good news, though it is so if you have a
mortgage right.
30% of those have over 50.
Brad Weisman (01:44):
Did you forget your?
Pete Heim (01:45):
glasses.
No actually you're squinting alot.
I didn't even see them.
Brad Weisman (01:50):
And I'm worried how I'm worried that your arms
are long enough to be able toread this thing that you're
having in front of you yeah,hold this for me.
Yeah, not to bring it up, I wastrying to be very subtle, but
yeah, you're squinting likecrazy.
I'm like is there something inhis eyes, or am I cutting an
onion or something, or good, sowhat do you?
See on your chart there, nowthat you can see.
Pete Heim (02:08):
Yes, now that we're here.
Yeah, now that you can see, oh,there was a chart here.
Mortgage homes yes, they have amortgage.
30% of those people are over50% equity Got it, got it.
Mortgage homes with less than50% there is 31% people, okay
say that again 31% of the peoplethat have a mortgage have less
than 50%.
Okay, okay, so it's about equal, got it.
But at 38.7% are free and clear.
(02:31):
That's amazing.
That's over 69% people eitherare free and clear, no mortgage
or fade off, or 50% more.
Brad Weisman (02:39):
So that's and that is a hedge against foreclosures
.
Yes, it is right, absolutely,because the market would have to
take a dive like unbelievabledive in pricing in order for
people not to be able to selland not have and get out of
their house.
And then the other part of thatis also we have the people that
want to buy it.
(02:59):
That's right.
Pete Heim (03:00):
Yeah, so that's a good, it's a good mix.
Well, that dive you're talkingabout would be like 3000 homes.
Come on on the market tomorrow.
Yeah right, and that'sunrealistic.
Brad Weisman (03:08):
No, it just wouldn't happen.
But it's.
That's incredible and thatactually makes you feel good
about the position we are in asa country for homeownership.
We're in a really good positionbecause we're not leveraged to
the hill.
Pete Heim (03:20):
No, we're not.
Brad Weisman (03:21):
You know what I mean?
We're actually not, which isgood.
Pete Heim (03:23):
Back before 2000,.
Let's see 1998.
Yeah, because 1998 was thelegislation that came out that
everyone needed to own a home,and they were going to loan you
103% of your equity of the price, right, yeah, and that that's
what bite us 10 years later.
Brad Weisman (03:37):
Yep 2008 was what happened it was 1998 when the
legislation started.
Yeah, Because as soon as youhave any kind of movement when
you own, when you don't own anyof your home, basically, and the
bank does, as soon as you loseyour five hours of overtime,
you're screwed.
There it is, that's it.
That's what happens.
How tight, I know, and that'snot like that.
Pete Heim (03:56):
No, you can't sleep, dude.
No, I mean what you said aboutthe foreclosures.
That's why it's not going.
Then next the one with the redbars the first six months of
this year.
Yeah 186,000 foreclosures.
Are you ready in the UnitedStates?
Brad Weisman (04:10):
That's, that's nothing.
Pete Heim (04:11):
I mean that's compared to 1.7 million at the
high in 2010.
Brad Weisman (04:15):
That's amazing 1.7 million Is that one is that 10%
.
Pete Heim (04:22):
Yeah, yeah Around 10% .
Brad Weisman (04:23):
Yeah, it's exactly right, gosh.
So that's good.
That's good it is climbing.
It did climb a tad from 2021,which was the lowest it was
65,000.
Pete Heim (04:32):
It climbed a little bit.
Brad Weisman (04:33):
You know what the news is going to say.
It tripled since 20.
It tripled since 2021.
Pete Heim (04:38):
Thank you for saying that, because that's what I
heard.
Brad Weisman (04:40):
They will say that yes, of course it's like.
Pete Heim (04:42):
Will you stop it?
Brad Weisman (04:43):
Yeah, I mean it's wrong.
It looks like we're going backto 2010.
You know, that's what's goingto happen.
Yeah, yeah, that was my WalterCronkite.
Pete Heim (04:51):
That was really good.
You liked that.
That was pretty good.
That was really good.
Brad Weisman (04:53):
Tomorrow's not like a bulldog or something.
I don't know what the hell thatwas, but yeah so but 2021 was
the start of the forbearanceprogram.
Pete Heim (04:59):
Yeah, yeah that's why there was only 65,000.
That's true.
That's true.
Yeah right, You're exactly.
It was false.
Brad Weisman (05:05):
It was false.
Yeah, right exactly.
I got put off a little bit sothings are good, things are good
, so what else?
What else you got there?
Pete Heim (05:10):
Well then, in on that same vein, looking at the
delinquencies, which is the nextchart, where it has those that
green and blue line going down,yeah, the Fannie and Freddie one
.
Look at those delinquencies,they're just going down through
the floor.
I mean, wow, in January of 22Fannie Mae had that at 1.2
million.
Right, we are down.
What is that blue line?
Brad Weisman (05:31):
Oh, I came under it's under point.
Pete Heim (05:33):
It's point five and a half.
Brad Weisman (05:35):
Yeah, that's, it looks like yeah that's where
it's gone from.
Pete Heim (05:38):
So, from January of 22, it's an all-time low.
Brad Weisman (05:40):
It's it means overall mortgage to the language
rate match the all-time low.
Pete Heim (05:43):
But and delinquencies is where someone's three months
or more behind.
Right, that's what.
That is right.
That's amazing I mean that'sless than a percent.
Brad Weisman (05:51):
Yeah, right, so things are good.
Pete Heim (05:52):
I mean, yeah, you're good.
Brad Weisman (05:53):
Yeah, let's keep it up with the good news.
Pete Heim (05:55):
Let's get the good news going.
I said a million, but that's apercentage.
Now I got you right.
We know you man, you know what,I know what you meant.
Brad Weisman (06:00):
So let's keep going with the good news so what
another thing we?
I looked at the numbers todayYep, yep, for how many houses on
the market?
Yes, and I always use the sameway that I do it.
So some people say you shouldtake new construction.
I should take, I don't.
So mine is always relative,though, to how I started it, To
where it is right now.
Okay, mm-hmm, but today was 405.
Over the weekend we hit 400.
(06:21):
If you look at my facebook pagemight have seen that hit 400.
That was a big deal, because wehadn't seen 400 homes in the
market Since, I believe, beforechristmas.
It was 2022, it was 2022, butit was like around november.
Pete Heim (06:34):
Out november, it was november.
Brad Weisman (06:36):
Yep, and then now and out.
Today, we're at 405 and whatwe're seeing is, instead of a
blip, I think this is a trendthat's actually starting to
happen.
We're seeing more, more comingsoon and active on on on the
market or active properties.
That's over.
Pete Heim (06:52):
It's overdoing the pendants a pending and before it
was always more pendants thanthere was houses coming.
Brad Weisman (06:56):
Yeah, and that was what kept us in that situation.
Yeah, so that's good.
So, if you're a buyer and youwere waiting or you got
discouraged, this might be thetime now.
Rates have gone up a little bit, come on back, so your buying
power might have changed alittle bit, right, but it
shouldn't change that much.
No, just get re-qualified.
Yeah, exactly.
Pete Heim (07:15):
Check it out, absolutely, did you get a raise?
It might have offset it.
Yeah, here's the thing.
Brad Weisman (07:18):
You know we talked about this before.
I'd forget if it was you and Italked about this or not, but oh
, you know it was Kelly spade.
She said you know what's whatwe need to tell our buyers if
you, until you find and win ahome, save more money.
Okay, save more money, do what,pay off credit cards, whatever
you have to do to become abetter buyer.
(07:41):
Yeah, so that if you start lastmonth looking for homes and you
lost two or three houses inthat month, you should be since
you didn't buy a house yetsaving up more money.
Because what will happen is if,if it takes five months for you
to finally get a house, you'rebecoming a better buyer the
whole time, which means youroffer is better, offers better.
Pete Heim (08:00):
Especially if you're still staying with your parents.
Yes, exactly, sock it away.
Brad Weisman (08:03):
That's right, sock it away, hey if you're in the
basement, stay there, that'sright.
Just keep, just stay there,just stay there.
Exactly, we're actually in thebasement at the studio here, so
we're gonna stay here.
We're gonna stay here, but no,I just thought that Kelly had
said that and I thought that wasa good point.
Pete Heim (08:19):
Yeah, become a better buyer, absolutely.
If you're gonna take that timeoff, just become a better buyer,
but you know don't wait long,because which point?
Let me talk about poisonRemember that one do you want?
You want the higher price,higher price house or higher
interest rate, yep, exactly, allright, make your poison so yeah
, you know.
Brad Weisman (08:34):
Also, I want to let everybody know that Hugo
found a house.
Yeah, hugo found a house.
He's under contract, yep.
And then he just went andbought a brand new car.
I don't know.
No, he didn't, because helistens to real estate and you,
he knows that you do not go buya new car until you settle in
the house.
Pete Heim (08:53):
That's one of the 10 commandments you got that right.
Brad Weisman (08:56):
Good job, good job , hugo.
He did try to kid me with thatthere.
Pete Heim (09:00):
He tried to.
He almost had me.
For a little bit he had me.
It was a split.
Brad Weisman (09:03):
He's like, oh yeah , I celebrated my wife and I
celebrated, brought it, bought abrand new car.
And I looked at him like, oh mygosh, you didn't and he so he
was kidding, he did not youshould have said a boat or
something.
Pete Heim (09:12):
Yeah, right.
Brad Weisman (09:15):
Well, you know it's funny, you will be living
in it.
Pete Heim (09:18):
That john burpee you have in the backyard.
Brad Weisman (09:20):
Oh man, that's funny.
So what else we got here?
What else do you?
Pete Heim (09:23):
know what do we got oh, equity equity, equity,
equity equity back to equity.
Let's talk about equity because, um, the homeowners in united
states, this is according toincome level.
Oh, this is kind of cool, right?
This is really mostly renterversus homeowner.
Oh, okay, and your net, well,uh, your net worth, um, if your
income level is between 46,074,your, uh, if you own a house,
(09:47):
your net worth of 191, if yourent, it's 11.
Wow, okay, wow, and this isjust.
These are just stats.
Brad Weisman (09:55):
Yeah right, this isn't pointy.
Say that again, so weunderstand.
Pete Heim (09:58):
Okay, if your income levels 46,000 to 74,000.
Okay, okay, got it.
And you own a house Yep, yournet worth is $191,000.
Yep, and if you're a renter?
Brad Weisman (10:10):
it's 11,000 dollars.
Yeah, that's your net worth,because you have nothing, which
is pretty you have.
You don't have any, you have noassets.
Pete Heim (10:15):
It's the, it's the balance left on your car and
their furniture.
Brad Weisman (10:18):
Yeah, yeah, it's amazing.
What else is it Wow?
Pete Heim (10:21):
a couple thousand savings, Wow.
And it goes up 74,000 if yourincome 74 to 127,000, your net
worth to 61 and Interesting andif you're a renter it's 34,000.
Brad Weisman (10:32):
Isn't that incredible?
And look at the income.
Now the income starts going up.
Yep, but you still don't haveanything.
Pete Heim (10:38):
No, some of those people probably have a 401k.
Brad Weisman (10:40):
Yeah, right, they start to build some wealth.
Pete Heim (10:42):
That's right yeah and then you have an income level
between 127 and 192.
If you own a house is, you know, you have a net worth of
433,000 and if you're a renteryou have 117.
Again, the difference is316,000 and that's more again,
probably 401k or whatever else,but this is a big one.
If you're over hard $192,000income, you know, your net worth
(11:02):
is 1.6.
Yeah, $1.6 million.
If you own a house and if yourent, it's 705.
Amazing.
And that's a go back to thatfirst one.
Brad Weisman (11:10):
That's an $895,000 , let's go back to that first
one, because I want to just like, when I just say something here
with it.
The income level, yeah, thefirst one 46 to 74.
Okay, and what was it?
It's the, the, the own house,your own house.
Pete Heim (11:21):
That's what.
Brad Weisman (11:21):
191 Okay and then it's 11 11 if you're at okay,
you know who the one night.
Who's getting the 191 when yourent, right?
Yeah right, I know who'slandlord, yeah, the owner,
because they're the owner.
And guess what?
And guess who's putting themoney towards that one ninety
one?
You, the renter.
Yeah, it's just funny, right,when you think you're basically
you're building the wealth ofsomebody else?
Oh, absolutely, yeah.
(11:41):
So if you have, you have tolive somewhere, right, yeah?
So obviously, why not buildyour own wealth, yeah, instead
of building somebody else?
Pete Heim (11:48):
Exactly.
You know, I teach first timehome buyers this philosophy, and
I know you do too.
Yeah, it says.
Or educators yeah, sure, I tellpeople how they can get a
tenant to pay for the kidscollege education.
Oh, absolutely, absolutely.
I train them every time.
Brad Weisman (12:01):
Yeah, and it's true, I mean you have a baby,
call me.
Pete Heim (12:04):
Yeah, let's talk before the kids three.
Brad Weisman (12:05):
Yeah, and then at that point.
Pete Heim (12:07):
That's the sweet spot .
Yeah, Right, yeah by the house.
Brad Weisman (12:09):
Then I coach them on what to do?
Absolutely.
There's your college fund, yep.
Pete Heim (12:12):
You can pay, get college, paid by a tenant,
absolutely.
So if you're a renter, how doyou feel now?
Yeah, sorry, I mean there is apurpose for renting, absolutely.
It's a time in your life Idon't want to slam renting
because I mean I've done it.
Brad Weisman (12:23):
Yep, you've done it.
I've never rented, you neverhave I've never, rented.
I was.
I was a Gen Zer before it waseven popular, or whatever it is.
Pete Heim (12:35):
I think it was a Gen Z Before you knew what you were.
Brad Weisman (12:37):
I didn't know what the hell I was.
That's right, no, but I didleave at home until it was 25.
Pete Heim (12:42):
So okay, so open your basement doesn't count.
Brad Weisman (12:46):
I don't know if I was smoking dope.
I was probably drinking prettyheavily.
I don't know if I was smokingdope, but no, when my parents
were, they were nice enough tolet me start my career in real
estate at 22.
So from 22, 25, I was buildingup my money and I did pay to
live there and not cutting yourhair.
And not cutting my hair.
That's right.
If you guys knew Brad back thenit was down, it was all the way
(13:07):
down.
We'll have to put a picture ofthat on the podcast of the album
cover.
Pete Heim (13:11):
It was before Star Search.
Yeah, it was it wasunbelievable, unbelievable.
Brad Weisman (13:15):
So, yeah, so so just interesting how what's
happening with that?
Right?
Let me go through.
There was one thing that I didthink was really interesting
about.
We just talked about Gen Z.
Generation Z I always likethese generation things as I'd
like to see what the ages are.
Yeah, yeah, generation Z is Ihave two of them pretty much at
home nine to 24 years old, yeah,and what it's saying here is
that they're actually putting,they're actually starting their
(13:38):
financial independence soonerthan the other generations by
purchasing a home.
They go right from theirparents.
When you call a basement,that's the term everybody uses.
They come from their parents'home and they're going right
into purchasing instead ofrenting.
Boy, that's cool, it's reallycool, yeah, and I think that's
another, that's probably anotherfactor of driving up cost of
(14:00):
housing.
I agree, because if they're notstaying at home as long as the
millennials did and if they'regoing right from living at home
to purchasing, that creates anissue for housing Right.
Pete Heim (14:15):
Think about it Right Creates an issue.
Well, that millennialgeneration where I think a
little more cautious and alittle bit more calculating with
saving enough money to do thisand when you're young it takes a
while yeah, it does, absolutely.
I think the millennials cameinto it like around the 30 mark,
where they were like 30 and go.
You know what I got to do this?
That's about right, Because youknow they're seeing the stats,
(14:36):
they're seeing the gainingwealth thing and where the new
generation now is seeing itfirsthand, Absolutely, and
they're going.
What do I got to do to buyhouses?
Brad Weisman (14:45):
Well, they're also seeing all over it.
They're seeing increases gocrazy.
Pete Heim (14:48):
Yes, exactly, think about it.
Brad Weisman (14:49):
Like the millennials didn't see that
happening.
They saw maybe a 4%appreciation every year.
Big deal.
Why would I get involved inthis?
It's not really doing it inthis morning, but now you're
seeing 10, 15, 20% or 10% atleast.
They grow Well.
It's 56% over five years.
That's what I'm saying.
So they're well and that's whatthey're seeing.
Because they turned 25 yearsago or 19.
(15:10):
So they're seeing this growthand going.
Holy crap, man, I need to jumpin on this they're the unicorns
man.
Pete Heim (15:16):
They saw the unicorn years you always see unicorns.
Brad Weisman (15:18):
There's a lot of times you bring up unicorns.
There goes one Exactly, yeah,but no Speaking of smoking
things.
Geez, he's always talking aboutunicorns.
Pete Heim (15:26):
Permanent damage?
Brad Weisman (15:27):
Yeah, I guess so I guess so.
So what else do you got?
Anything else?
Pete Heim (15:31):
Well, you know and the other two reasons why
sellers are maybe hesitant tosell their house and they're
fearful on two things, and Ithink one of them is interest
rates, and they don't want tomove because they want to get
rid of their 3% rate and thenget into a 7% rate.
But waiting might hurt you onthe price side.
Yeah, so I think it's the samething as where some buyers are
(15:52):
hesitant to get into the market.
Some sellers are scared aboutselling this sweet spot for the
equity, though we're not surehow long this is going to last.
We're slowing downappreciation-wise.
Brad Weisman (16:01):
Oh, absolutely.
Pete Heim (16:03):
So, sellers, we're not sure how long this
honeymoon's going to be, yetit's changing.
Brad Weisman (16:08):
It's changing.
It's slowing down, it'sdefinitely slowing down.
Pete Heim (16:10):
It's increasingly slower.
It's increasing slower,slowerly, more slow.
Brad Weisman (16:17):
The rate of appreciation is slowing down,
but it's appreciating, but it'sstill going, but slowly, yeah,
slowly.
Pete Heim (16:23):
And the other thing is a fear of not knowing where
they're going to go, if it's notgoing into an institution.
If you're not going into aninstitution, then where am I
going?
Well, hey, there's a lot ofother options out there on new
construction.
And have you considered a condo?
Brad Weisman (16:38):
maybe I have two people that are in that age
group of, let's just say, late60s, I'd say early 70s, and they
no longer need the two-storyhome or need the steps and stuff
.
Both of them went into a firstfloor rental.
Yeah, you know what I mean.
So that's where that's anotheroption.
Pete Heim (16:57):
And I think actually that's a good option.
You close the door, it'sexactly right.
You got the grassy ticker ofeverything, yeah, and it's like
this guy comes and fixes yourfaucet.
Brad Weisman (17:04):
You can budget All that stuff, yeah, no, it's good
.
Anything else you can think of,because we got to wrap this up.
Pete Heim (17:09):
Oh, I see.
Brad Weisman (17:09):
Yeah, believe it or not, man, we must have been
talking about a lot of stuffthat I don't do at real estate.
I'm thinking, I don't know,hugo bought a car.
I mean all kinds of stuff wenton this show, but no.
So thanks for the information.
Thanks, man, appreciate you.
If there's anything else youcan think of, let me know.
We'll be on again next month.
Next month, all right, soundsgreat.
Hugo, you're good.
I'm good.
You're good.
You'll be getting in that housesoon, buddy.
Pete Heim (17:30):
That's right.
I'm excited for you.
I'm excited for you, man.
It's awesome.
Thank you, that's awesome.
Brad Weisman (17:35):
All right, there you have it.
Hugo bought a house.
Pete is seeing unicornseverywhere.
I'm not sure what that's about,and I guess I was smoking to
open the basement when I wasyounger.
I don't know.
That's pretty much the wrap upof this show.
All right, that's about it.
There you have it.
We'll see you next Thursday at7 PM.
All right, take it easy.
Hello, this is Brad Wiseman.
You're listed to Real Estateand you we're back with one of
the guests that just just won'tstay away.
He comes back every singlemonth and you know we try to.
And, hugo, I thought we weregoing to change the locks down
here so that he couldn't get in.
He broke in.
It's amazing.
(00:21):
You know, here we have PeteHeim in the studio, so good to
see you.
Don't listen to any of thatstuff.
I said before that was youdidn't have your headphones on,
did you?
No, but Pete's back.
We're always, you know, talkingabout what's going on the
market.
You're always keeping us up todate on what's going on, and we
are starting to see some changes.
Pete Heim (00:38):
Yes, we are.
Brad Weisman (00:38):
Things are starting to change, but there's
there's a lot of good in thechange.
I mean, I don't think there'sany doom and gloom here, it's
just.
It's just there's good stuff.
The only thing that's a littlebad is the rate's going up.
Pete Heim (00:47):
That kind of sucks.
Brad Weisman (00:48):
Yeah, that is, but , but can't do anything about it
.
Yeah, what are you gonna do?
That's right.
So you had talked to me beforewe went live here about there's
some really good numbers on theequity that we have in our homes
today.
Let's talk about that first.
It's crazy.
Pete Heim (01:02):
I mean, this just came out not too long ago, but
68.7% of people out there thathave a mortgage or have paid off
their mortgage or at least have50% equity.
Brad Weisman (01:14):
That's amazing.
Is that the first time inhistory, or is that that has to
be breaking a record?
Pete Heim (01:18):
over 50 years.
So over 50 years, I guessthat's as long as they've been
keeping, okay, god.
So yeah, I'm going to saythat's the first time since
we've been keeping track of that.
Now, however, though, way backin the day, you'd have to pay
cash for your property, usuallymost of the time before 20% down
at least right yeah but thatwas before mortgages came out
and all that stuff, so we'retalking way long ago.
Brad Weisman (01:36):
This would be so.
Pete Heim (01:38):
that's good news, though it is so if you have a
mortgage right.
30% of those have over 50.
Brad Weisman (01:44):
Did you forget your?
Pete Heim (01:45):
glasses.
No actually you're squinting alot.
I didn't even see them.
Brad Weisman (01:50):
And I'm worried how I'm worried that your arms
are long enough to be able toread this thing that you're
having in front of you yeah,hold this for me.
Yeah, not to bring it up, I wastrying to be very subtle, but
yeah, you're squinting likecrazy.
I'm like is there something inhis eyes, or am I cutting an
onion or something, or good, sowhat do you?
See on your chart there, nowthat you can see.
Pete Heim (02:08):
Yes, now that we're here.
Yeah, now that you can see, oh,there was a chart here.
Mortgage homes yes, they have amortgage.
30% of those people are over50% equity Got it, got it.
Mortgage homes with less than50% there is 31% people, okay
say that again 31% of the peoplethat have a mortgage have less
than 50%.
Okay, okay, so it's about equal, got it.
But at 38.7% are free and clear.
(02:31):
That's amazing.
That's over 69% people eitherare free and clear, no mortgage
or fade off, or 50% more.
Brad Weisman (02:39):
So that's and that is a hedge against foreclosures
.
Yes, it is right, absolutely,because the market would have to
take a dive like unbelievabledive in pricing in order for
people not to be able to selland not have and get out of
their house.
And then the other part of thatis also we have the people that
want to buy it.
(02:59):
That's right.
Pete Heim (03:00):
Yeah, so that's a good, it's a good mix.
Well, that dive you're talkingabout would be like 3000 homes.
Come on on the market tomorrow.
Yeah right, and that'sunrealistic.
Brad Weisman (03:08):
No, it just wouldn't happen.
But it's.
That's incredible and thatactually makes you feel good
about the position we are in asa country for homeownership.
We're in a really good positionbecause we're not leveraged to
the hill.
Pete Heim (03:20):
No, we're not.
Brad Weisman (03:21):
You know what I mean?
We're actually not, which isgood.
Pete Heim (03:23):
Back before 2000,.
Let's see 1998.
Yeah, because 1998 was thelegislation that came out that
everyone needed to own a home,and they were going to loan you
103% of your equity of the price, right, yeah, and that that's
what bite us 10 years later.
Brad Weisman (03:37):
Yep 2008 was what happened it was 1998 when the
legislation started.
Yeah, Because as soon as youhave any kind of movement when
you own, when you don't own anyof your home, basically, and the
bank does, as soon as you loseyour five hours of overtime,
you're screwed.
There it is, that's it.
That's what happens.
How tight, I know, and that'snot like that.
Pete Heim (03:56):
No, you can't sleep, dude.
No, I mean what you said aboutthe foreclosures.
That's why it's not going.
Then next the one with the redbars the first six months of
this year.
Yeah 186,000 foreclosures.
Are you ready in the UnitedStates?
Brad Weisman (04:10):
That's, that's nothing.
Pete Heim (04:11):
I mean that's compared to 1.7 million at the
high in 2010.
Brad Weisman (04:15):
That's amazing 1.7 million Is that one is that 10%
.
Pete Heim (04:22):
Yeah, yeah Around 10% .
Brad Weisman (04:23):
Yeah, it's exactly right, gosh.
So that's good.
That's good it is climbing.
It did climb a tad from 2021,which was the lowest it was
65,000.
Pete Heim (04:32):
It climbed a little bit.
Brad Weisman (04:33):
You know what the news is going to say.
It tripled since 20.
It tripled since 2021.
Pete Heim (04:38):
Thank you for saying that, because that's what I
heard.
Brad Weisman (04:40):
They will say that yes, of course it's like.
Pete Heim (04:42):
Will you stop it?
Brad Weisman (04:43):
Yeah, I mean it's wrong.
It looks like we're going backto 2010.
You know, that's what's goingto happen.
Yeah, yeah, that was my WalterCronkite.
Pete Heim (04:51):
That was really good.
You liked that.
That was pretty good.
That was really good.
Brad Weisman (04:53):
Tomorrow's not like a bulldog or something.
I don't know what the hell thatwas, but yeah so but 2021 was
the start of the forbearanceprogram.
Pete Heim (04:59):
Yeah, yeah that's why there was only 65,000.
That's true.
That's true.
Yeah right, You're exactly.
It was false.
Brad Weisman (05:05):
It was false.
Yeah, right exactly.
I got put off a little bit sothings are good, things are good
, so what else?
What else you got there?
Pete Heim (05:10):
Well then, in on that same vein, looking at the
delinquencies, which is the nextchart, where it has those that
green and blue line going down,yeah, the Fannie and Freddie one
.
Look at those delinquencies,they're just going down through
the floor.
I mean, wow, in January of 22Fannie Mae had that at 1.2
million.
Right, we are down.
What is that blue line?
Brad Weisman (05:31):
Oh, I came under it's under point.
Pete Heim (05:33):
It's point five and a half.
Brad Weisman (05:35):
Yeah, that's, it looks like yeah that's where
it's gone from.
Pete Heim (05:38):
So, from January of 22, it's an all-time low.
Brad Weisman (05:40):
It's it means overall mortgage to the language
rate match the all-time low.
Pete Heim (05:43):
But and delinquencies is where someone's three months
or more behind.
Right, that's what.
That is right.
That's amazing I mean that'sless than a percent.
Brad Weisman (05:51):
Yeah, right, so things are good.
Pete Heim (05:52):
I mean, yeah, you're good.
Brad Weisman (05:53):
Yeah, let's keep it up with the good news.
Pete Heim (05:55):
Let's get the good news going.
I said a million, but that's apercentage.
Now I got you right.
We know you man, you know what,I know what you meant.
Brad Weisman (06:00):
So let's keep going with the good news so what
another thing we?
I looked at the numbers todayYep, yep, for how many houses on
the market?
Yes, and I always use the sameway that I do it.
So some people say you shouldtake new construction.
I should take, I don't.
So mine is always relative,though, to how I started it, To
where it is right now.
Okay, mm-hmm, but today was 405.
Over the weekend we hit 400.
(06:21):
If you look at my facebook pagemight have seen that hit 400.
That was a big deal, because wehadn't seen 400 homes in the
market Since, I believe, beforechristmas.
It was 2022, it was 2022, butit was like around november.
Pete Heim (06:34):
Out november, it was november.
Brad Weisman (06:36):
Yep, and then now and out.
Today, we're at 405 and whatwe're seeing is, instead of a
blip, I think this is a trendthat's actually starting to
happen.
We're seeing more, more comingsoon and active on on on the
market or active properties.
That's over.
Pete Heim (06:52):
It's overdoing the pendants a pending and before it
was always more pendants thanthere was houses coming.
Brad Weisman (06:56):
Yeah, and that was what kept us in that situation.
Yeah, so that's good.
So, if you're a buyer and youwere waiting or you got
discouraged, this might be thetime now.
Rates have gone up a little bit, come on back, so your buying
power might have changed alittle bit, right, but it
shouldn't change that much.
No, just get re-qualified.
Yeah, exactly.
Pete Heim (07:15):
Check it out, absolutely, did you get a raise?
It might have offset it.
Yeah, here's the thing.
Brad Weisman (07:18):
You know we talked about this before.
I'd forget if it was you and Italked about this or not, but oh
, you know it was Kelly spade.
She said you know what's whatwe need to tell our buyers if
you, until you find and win ahome, save more money.
Okay, save more money, do what,pay off credit cards, whatever
you have to do to become abetter buyer.
(07:41):
Yeah, so that if you start lastmonth looking for homes and you
lost two or three houses inthat month, you should be since
you didn't buy a house yetsaving up more money.
Because what will happen is if,if it takes five months for you
to finally get a house, you'rebecoming a better buyer the
whole time, which means youroffer is better, offers better.
Pete Heim (08:00):
Especially if you're still staying with your parents.
Yes, exactly, sock it away.
Brad Weisman (08:03):
That's right, sock it away, hey if you're in the
basement, stay there, that'sright.
Just keep, just stay there,just stay there.
Exactly, we're actually in thebasement at the studio here, so
we're gonna stay here.
We're gonna stay here, but no,I just thought that Kelly had
said that and I thought that wasa good point.
Pete Heim (08:19):
Yeah, become a better buyer, absolutely.
If you're gonna take that timeoff, just become a better buyer,
but you know don't wait long,because which point?
Let me talk about poisonRemember that one do you want?
You want the higher price,higher price house or higher
interest rate, yep, exactly, allright, make your poison so yeah
, you know.
Brad Weisman (08:34):
Also, I want to let everybody know that Hugo
found a house.
Yeah, hugo found a house.
He's under contract, yep.
And then he just went andbought a brand new car.
I don't know.
No, he didn't, because helistens to real estate and you,
he knows that you do not go buya new car until you settle in
the house.
Pete Heim (08:53):
That's one of the 10 commandments you got that right.
Brad Weisman (08:56):
Good job, good job , hugo.
He did try to kid me with thatthere.
Pete Heim (09:00):
He tried to.
He almost had me.
For a little bit he had me.
It was a split.
Brad Weisman (09:03):
He's like, oh yeah , I celebrated my wife and I
celebrated, brought it, bought abrand new car.
And I looked at him like, oh mygosh, you didn't and he so he
was kidding, he did not youshould have said a boat or
something.
Pete Heim (09:12):
Yeah, right.
Brad Weisman (09:15):
Well, you know it's funny, you will be living
in it.
Pete Heim (09:18):
That john burpee you have in the backyard.
Brad Weisman (09:20):
Oh man, that's funny.
So what else we got here?
What else do you?
Pete Heim (09:23):
know what do we got oh, equity equity, equity,
equity equity back to equity.
Let's talk about equity because, um, the homeowners in united
states, this is according toincome level.
Oh, this is kind of cool, right?
This is really mostly renterversus homeowner.
Oh, okay, and your net, well,uh, your net worth, um, if your
income level is between 46,074,your, uh, if you own a house,
(09:47):
your net worth of 191, if yourent, it's 11.
Wow, okay, wow, and this isjust.
These are just stats.
Brad Weisman (09:55):
Yeah right, this isn't pointy.
Say that again, so weunderstand.
Pete Heim (09:58):
Okay, if your income levels 46,000 to 74,000.
Okay, okay, got it.
And you own a house Yep, yournet worth is $191,000.
Yep, and if you're a renter?
Brad Weisman (10:10):
it's 11,000 dollars.
Yeah, that's your net worth,because you have nothing, which
is pretty you have.
You don't have any, you have noassets.
Pete Heim (10:15):
It's the, it's the balance left on your car and
their furniture.
Brad Weisman (10:18):
Yeah, yeah, it's amazing.
What else is it Wow?
Pete Heim (10:21):
a couple thousand savings, Wow.
And it goes up 74,000 if yourincome 74 to 127,000, your net
worth to 61 and Interesting andif you're a renter it's 34,000.
Brad Weisman (10:32):
Isn't that incredible?
And look at the income.
Now the income starts going up.
Yep, but you still don't haveanything.
Pete Heim (10:38):
No, some of those people probably have a 401k.
Brad Weisman (10:40):
Yeah, right, they start to build some wealth.
Pete Heim (10:42):
That's right yeah and then you have an income level
between 127 and 192.
If you own a house is, you know, you have a net worth of
433,000 and if you're a renteryou have 117.
Again, the difference is316,000 and that's more again,
probably 401k or whatever else,but this is a big one.
If you're over hard $192,000income, you know, your net worth
(11:02):
is 1.6.
Yeah, $1.6 million.
If you own a house and if yourent, it's 705.
Amazing.
And that's a go back to thatfirst one.
Brad Weisman (11:10):
That's an $895,000 , let's go back to that first
one, because I want to just like, when I just say something here
with it.
The income level, yeah, thefirst one 46 to 74.
Okay, and what was it?
It's the, the, the own house,your own house.
Pete Heim (11:21):
That's what.
Brad Weisman (11:21):
191 Okay and then it's 11 11 if you're at okay,
you know who the one night.
Who's getting the 191 when yourent, right?
Yeah right, I know who'slandlord, yeah, the owner,
because they're the owner.
And guess what?
And guess who's putting themoney towards that one ninety
one?
You, the renter.
Yeah, it's just funny, right,when you think you're basically
you're building the wealth ofsomebody else?
Oh, absolutely, yeah.
(11:41):
So if you have, you have tolive somewhere, right, yeah?
So obviously, why not buildyour own wealth, yeah, instead
of building somebody else?
Pete Heim (11:48):
Exactly.
You know, I teach first timehome buyers this philosophy, and
I know you do too.
Yeah, it says.
Or educators yeah, sure, I tellpeople how they can get a
tenant to pay for the kidscollege education.
Oh, absolutely, absolutely.
I train them every time.
Brad Weisman (12:01):
Yeah, and it's true, I mean you have a baby,
call me.
Pete Heim (12:04):
Yeah, let's talk before the kids three.
Brad Weisman (12:05):
Yeah, and then at that point.
Pete Heim (12:07):
That's the sweet spot .
Yeah, Right, yeah by the house.
Brad Weisman (12:09):
Then I coach them on what to do?
Absolutely.
There's your college fund, yep.
Pete Heim (12:12):
You can pay, get college, paid by a tenant,
absolutely.
So if you're a renter, how doyou feel now?
Yeah, sorry, I mean there is apurpose for renting, absolutely.
It's a time in your life Idon't want to slam renting
because I mean I've done it.
Brad Weisman (12:23):
Yep, you've done it.
I've never rented, you neverhave I've never, rented.
I was.
I was a Gen Zer before it waseven popular, or whatever it is.
Pete Heim (12:35):
I think it was a Gen Z Before you knew what you were.
Brad Weisman (12:37):
I didn't know what the hell I was.
That's right, no, but I didleave at home until it was 25.
Pete Heim (12:42):
So okay, so open your basement doesn't count.
Brad Weisman (12:46):
I don't know if I was smoking dope.
I was probably drinking prettyheavily.
I don't know if I was smokingdope, but no, when my parents
were, they were nice enough tolet me start my career in real
estate at 22.
So from 22, 25, I was buildingup my money and I did pay to
live there and not cutting yourhair.
And not cutting my hair.
That's right.
If you guys knew Brad back thenit was down, it was all the way
(13:07):
down.
We'll have to put a picture ofthat on the podcast of the album
cover.
Pete Heim (13:11):
It was before Star Search.
Yeah, it was it wasunbelievable, unbelievable.
Brad Weisman (13:15):
So, yeah, so so just interesting how what's
happening with that?
Right?
Let me go through.
There was one thing that I didthink was really interesting
about.
We just talked about Gen Z.
Generation Z I always likethese generation things as I'd
like to see what the ages are.
Yeah, yeah, generation Z is Ihave two of them pretty much at
home nine to 24 years old, yeah,and what it's saying here is
that they're actually putting,they're actually starting their
(13:38):
financial independence soonerthan the other generations by
purchasing a home.
They go right from theirparents.
When you call a basement,that's the term everybody uses.
They come from their parents'home and they're going right
into purchasing instead ofrenting.
Boy, that's cool, it's reallycool, yeah, and I think that's
another, that's probably anotherfactor of driving up cost of
(14:00):
housing.
I agree, because if they're notstaying at home as long as the
millennials did and if they'regoing right from living at home
to purchasing, that creates anissue for housing Right.
Pete Heim (14:15):
Think about it Right Creates an issue.
Well, that millennialgeneration where I think a
little more cautious and alittle bit more calculating with
saving enough money to do thisand when you're young it takes a
while yeah, it does, absolutely.
I think the millennials cameinto it like around the 30 mark,
where they were like 30 and go.
You know what I got to do this?
That's about right, Because youknow they're seeing the stats,
(14:36):
they're seeing the gainingwealth thing and where the new
generation now is seeing itfirsthand, Absolutely, and
they're going.
What do I got to do to buyhouses?
Brad Weisman (14:45):
Well, they're also seeing all over it.
They're seeing increases gocrazy.
Pete Heim (14:48):
Yes, exactly, think about it.
Brad Weisman (14:49):
Like the millennials didn't see that
happening.
They saw maybe a 4%appreciation every year.
Big deal.
Why would I get involved inthis?
It's not really doing it inthis morning, but now you're
seeing 10, 15, 20% or 10% atleast.
They grow Well.
It's 56% over five years.
That's what I'm saying.
So they're well and that's whatthey're seeing.
Because they turned 25 yearsago or 19.
(15:10):
So they're seeing this growthand going.
Holy crap, man, I need to jumpin on this they're the unicorns
man.
Pete Heim (15:16):
They saw the unicorn years you always see unicorns.
Brad Weisman (15:18):
There's a lot of times you bring up unicorns.
There goes one Exactly, yeah,but no Speaking of smoking
things.
Geez, he's always talking aboutunicorns.
Pete Heim (15:26):
Permanent damage?
Brad Weisman (15:27):
Yeah, I guess so I guess so.
So what else do you got?
Anything else?
Pete Heim (15:31):
Well, you know and the other two reasons why
sellers are maybe hesitant tosell their house and they're
fearful on two things, and Ithink one of them is interest
rates, and they don't want tomove because they want to get
rid of their 3% rate and thenget into a 7% rate.
But waiting might hurt you onthe price side.
Yeah, so I think it's the samething as where some buyers are
(15:52):
hesitant to get into the market.
Some sellers are scared aboutselling this sweet spot for the
equity, though we're not surehow long this is going to last.
We're slowing downappreciation-wise.
Brad Weisman (16:01):
Oh, absolutely.
Pete Heim (16:03):
So, sellers, we're not sure how long this
honeymoon's going to be, yetit's changing.
Brad Weisman (16:08):
It's changing.
It's slowing down, it'sdefinitely slowing down.
Pete Heim (16:10):
It's increasingly slower.
It's increasing slower,slowerly, more slow.
Brad Weisman (16:17):
The rate of appreciation is slowing down,
but it's appreciating, but it'sstill going, but slowly, yeah,
slowly.
Pete Heim (16:23):
And the other thing is a fear of not knowing where
they're going to go, if it's notgoing into an institution.
If you're not going into aninstitution, then where am I
going?
Well, hey, there's a lot ofother options out there on new
construction.
And have you considered a condo?
Brad Weisman (16:38):
maybe I have two people that are in that age
group of, let's just say, late60s, I'd say early 70s, and they
no longer need the two-storyhome or need the steps and stuff
.
Both of them went into a firstfloor rental.
Yeah, you know what I mean.
So that's where that's anotheroption.
Pete Heim (16:57):
And I think actually that's a good option.
You close the door, it'sexactly right.
You got the grassy ticker ofeverything, yeah, and it's like
this guy comes and fixes yourfaucet.
Brad Weisman (17:04):
You can budget All that stuff, yeah, no, it's good
.
Anything else you can think of,because we got to wrap this up.
Pete Heim (17:09):
Oh, I see.
Brad Weisman (17:09):
Yeah, believe it or not, man, we must have been
talking about a lot of stuffthat I don't do at real estate.
I'm thinking, I don't know,hugo bought a car.
I mean all kinds of stuff wenton this show, but no.
So thanks for the information.
Thanks, man, appreciate you.
If there's anything else youcan think of, let me know.
We'll be on again next month.
Next month, all right, soundsgreat.
Hugo, you're good.
I'm good.
You're good.
You'll be getting in that housesoon, buddy.
Pete Heim (17:30):
That's right.
I'm excited for you.
I'm excited for you, man.
It's awesome.
Thank you, that's awesome.
Brad Weisman (17:35):
All right, there you have it.
Hugo bought a house.
Pete is seeing unicornseverywhere.
I'm not sure what that's about,and I guess I was smoking to
open the basement when I wasyounger.
I don't know.
That's pretty much the wrap upof this show.
All right, that's about it.
There you have it.
We'll see you next Thursday at7 PM.
All right, take it easy.
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