May 9, 2024 • 18 mins
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Discover the resurgence of FHA buyers and the powerhouse moves you can make with your tax refund in the realm of real estate—it's all in our latest lively discussion. As your host, Brad Weisman, alongside the ever-insightful Pete Heim, we take a deep dive into the market's current ebbs and flows. You'll hear firsthand experiences of how FHA buyers are making a strong comeback, challenging the conventional loan dominance. We also brainstorm innovative ways to leverage that tax refund you might be sitting on, whether it's bolstering your down payment or lowering mortgage rates, amidst the ever-changing economic landscape.
While mortgage rates and housing market trends may seem daunting, we bring clarity to the topic, discussing the long-term benefits of homeownership and dissecting the latest predictions with our characteristic blend of expertise and entertainment. Tune in and get equipped with the knowledge you need to navigate the housing market like a pro, thanks to the engaging banter and insights from me and Pete.
"Always an entertaining look at the latest in the real estate market, both local and national. Pete brings the Stats Every Month and we both share our opinions on what it means and where we think we are going in the market! Other than that, we just have a lot of fun!" - Brad Weisman
Brad Weisman has been a Realtor since 1992 and proudly sponsors this podcast!
Disclaimer: This post contains affiliate links. If you make a purchase, I may receive a commission at no extra cost to you.
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Welcome to The Brad Weisman Show (formerly known as Real Estate and YOU), 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 #realestateandyou
Credits - The music for my podcast was written and performed by Jeff Miller.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
from real estate to real life and everything in
between the brad weisman showand now your host brad weisman.
Speaker 2 (00:12):
All right, we are back, and you know what?
I am freshly shaven too.
I I got rid of my beardcompletely and I'm now back to a
goatee.
And speaking of things that areback, um pete heim is back in
the in the office.
I always say in the office inthe studio but it is in the
office so I can say that yeahyou know, it's always good to
(00:34):
have you back but you knowwhat's funny too, this morning I
was brushing my teeth and forsome reason I thought about you.
I don't know why.
That's flat weird.
Speaker 1 (00:39):
It's better than in the shower right, um, but uh,
I'm brushing my teeth.
Speaker 2 (00:43):
Yeah, exactly, I'm brushing my teeth and I'm like
you know what Pete's coming intoday and I'm like it's a month
already, like these months goquick.
Speaker 1 (00:52):
I felt like yesterday .
Yeah, I thought the same thing.
I'm like is this real?
What the hell?
Speaker 2 (01:00):
Because I rely on your little notification no,
it's four weeks.
Speaker 1 (01:02):
It's four weeks.
Speaker 2 (01:03):
See, we always use him because he's younger, he can
keep track of time a lot betterthan we can.
Speaker 1 (01:07):
Much younger, yeah, much younger, but you know what?
Well, it has nothing to do withwhen it is in the month.
It's the same every month.
No, it's the same every month.
Speaker 2 (01:13):
It just felt quicker, it did it really did Really now
, which is pretty awesome.
Uh, it's, it's up 331 man.
Yeah, that's a good sign.
It is a great sign.
Anything not close to balance,but no, anything that's going
like this we're happy with.
Speaker 1 (01:30):
Yeah, absolutely, it's going the right way.
Very cool, very cool.
Yeah, I mean.
Diesel market's still around 20and, yep, that's all the same.
Absorption is still around amonth yeah, it's all the same
yeah, nothing has really changedthat.
Speaker 2 (01:40):
That too much, um.
So that's the end of the show.
Speaker 1 (01:42):
Uh, thanks for coming in, no just kidding.
Speaker 2 (01:43):
Good to see you all.
No, but one of the things I didwant to bring up, which is
really interesting I'm seeing alot more FHA buyers in the
market.
Oh yeah, yep, I really am.
I'm seeing a lot and I thinkit's good.
So if you're an FHA buyer andyou're out there and you were on
the market before Come backinto the market, it's good.
A lot of those people decidedto wait.
Yes, yeah, so it's good.
Speaker 1 (02:07):
But now they're back.
Speaker 2 (02:08):
Yeah, I have a listing.
Right now I got four offers onit that just came in today.
They're all FHA, all of them,all of them, wow, yeah.
So that's good.
Yeah, to buy FHA, becausethere's nothing wrong with FHA.
There's nothing wrong with it.
It's just that the perceptionof that would be that, oh well,
conventional is always going tobe better.
Speaker 1 (02:28):
But not always that's right and it's really it's not
always better for the buyer.
Speaker 2 (02:31):
It's the thing because FHA rates are lower.
Speaker 1 (02:34):
They're lower.
Yes, that's right.
And for a seller, if the houseis, oh, the FHA appraisals
Peeling paint handrails, thosekind of things.
Yeah, it's not big stuff.
Speaker 2 (02:47):
And a lot of times the buyers agree to pay for it
anyway.
That's right, yeah, yeah, allright, yeah, moving on.
Speaker 1 (02:52):
So what do you got for me?
Speaker 2 (02:52):
there, now the tax season's over.
Speaker 1 (03:03):
Yeah, sort of yeah, let's do that.
Speaker 2 (03:04):
Oh, now we're going to get audited.
Way to go.
See, here we go, we're going toget audited now.
Speaker 1 (03:08):
Sorry, IRS, Just don't you know.
Just shut the volume down.
No, no, People get refundsright.
Yeah, of course, and somethingto do with refunds we don't.
Speaker 2 (03:16):
No, we're abnormal, we're Abby normal when we're
self-employed.
You pay in all the time, that'sright.
Speaker 1 (03:25):
We always pay, Anyway , but you know.
Speaker 2 (03:27):
I'm not going to go there.
Speaker 1 (03:28):
Anyway, but what you can do with the IRS tax refund
that you got, you know you gotwhat you got.
You got down payment, yeah, andif you're saving for to buy a
house, I mean that gives you alittle bit of a boost.
The average one is a littleover 3,000 bucks.
The average refund.
That's amazing.
This past year, right, so yougot down payment, you got
closing costs right and you canbuy your rate down.
(03:50):
So if you don't like that 7%rate that's happening, you can
buy it down and in fact, 3,000would average out probably get
you a good what?
Half a percent, maybe, yeah,maybe, yeah.
Absolutely Depends on thelender.
Speaker 2 (04:03):
And that's a great thing to do, especially if you
think rates are going to staywhere they are and we're
starting to see a little bitmore of a staying where they are
type of pattern.
Yes, we are.
Yes, we are right.
Yeah, that's what?
Well, I was looking at themoons last night, the three
moons that lined up over aroundSaturn.
And that said, about the rates.
It did on saturn and that saidabout the rates.
(04:25):
It did, yeah, it did say it.
I don't even know if saturn hasthree moons.
I'm just gonna you know and youknow what's gonna happen.
Hugo, I'm gonna get emails.
He is so stupid that doesn'teven have three moons.
Speaker 1 (04:32):
It's like none on that only on star wars yeah,
only in star, that's right sowhat else you got?
Speaker 2 (04:36):
what other numbers do you?
Speaker 1 (04:37):
well.
So in in related to that,should I wait, uh, for mortgage
rates to come down before I move?
Moving meaning buyers andsellers moving both.
So basically, buyer demandright.
Based on interest rate,movement or environment, the
demand is weak, right?
(04:57):
So statistically now this is anew survey that just came out
between 7% and 7.5%, if buyersare only concerned about
interest rates, it's going to beweak.
Between 6.5% and 7%, it'slimited.
Then if it goes down to 6% to6.5%, it's good, and between
5.5% and 6% it's strong, no, Ithink it's mayhem.
Speaker 2 (05:18):
Mayhem is the word.
I think you looked at the wrongone.
Speaker 1 (05:20):
It's mayhem is the word.
I think you looked at the wrongone.
It's mayhem.
Yes, strong equals chaos.
Strong equals chaos, mayhem,mayhem Riding.
Speaker 2 (05:26):
We already got that.
Speaker 1 (05:27):
But no, the fence jumpers apparently come off the
fence right now between six andsix and a half is what the
article said.
So you were just talking aboutthe FHA fence riders?
Yeah, we were just talkingabout them and they're starting
to come in.
If you take your tax refund andget that seven down to six and
a half, there you are.
Yeah absolutely.
And that's right where you are?
Speaker 2 (05:46):
Yeah, it's incredible , and I think and what did we
say before, If the rates don'tcome down, people are going to
get used to them.
Speaker 1 (05:53):
They're going to get used to them.
Yeah, exactly, and I thinkthey're starting to get used to
it.
Speaker 2 (05:57):
I think if it drops down into the low sixes again,
people are going to go.
Oh man, I'm taking advantage ofthis because now we know it can
go from six and a quarter backup to seven a quarter in a very
short period of time, Absolutely.
Speaker 1 (06:09):
And if you're a seller, don't wait.
Why, well, what does that meanfor a seller?
Why would it be good to waitand not wait?
Yeah Right, it's not.
It has nothing to do with morebuyers for your house, right?
It has to do with more houses,competition-wise, absolutely,
which is where we're in, we'recoming into.
Speaker 2 (06:25):
So 331 on the market, which is awesome you know it's
an interesting quote I heard.
I don't remember where I heardit, so I can't give credit.
It was interesting because itsaid you know interest rates
right now are at 7.5%.
You know what they are when yourent 100%.
100% Isn't that great.
Isn't that great?
Can I use that?
You can?
Speaker 1 (06:44):
use it, it's not mine .
Speaker 2 (06:45):
I forget whose it is, but I'm just going to take it.
Speaker 1 (06:47):
I'm just I'm stealing that, yeah, Wow.
Speaker 2 (06:49):
That's awesome.
It was like the easiest quotein the world.
Yeah, yeah.
Speaker 1 (06:56):
Rates are 70% for purchase you principle.
Speaker 2 (06:57):
Yeah, it's all.
It's all interest, it's allinterest.
It's just that it's not yourinterest.
It's in the best interest ofthe person who owns the property
, different kind of interest.
Yeah, different kind of interest.
Absolutely, that's funny.
Yes, it is so.
So, yeah, so that was a goodquote and it just shows you that
once again, if you're, ifyou're renting and you can
purchase, cause some of theserents are just out of control.
We looked at a number that,over the past half, from 1969
(07:20):
until today, rents went from uh,what was it?
Down at like one 50 or $200 amonth to like $1,300 a month
today.
And everybody's like, yeah,okay, but the mortgage payments
were up too.
Yeah, but guess what, that rentdidn't go towards anything.
Right, and I'm not busting onpeople that have to rent?
Speaker 1 (07:37):
No, absolutely that's not it.
Speaker 2 (07:38):
But if you have a choice, don't throw your money
into the renting thing.
No.
I hear you and years ago itused to be because it was
cheaper.
It was cheaper to rent than itwas to buy.
That's right and that's notreally the case anymore.
Speaker 1 (07:53):
Not really the case.
You just need the down paymentand all that and monthly
payment-wise you're good.
Speaker 2 (07:58):
Yeah, exactly All right.
So what else you got there?
Speaker 1 (08:01):
And with affordability rates are expected
.
Okay, they're saying, here wego, they're expected to drop and
they're pushing it off a littlebit because the inflation
Inflation isn't budging.
It's actually going up a littlebit.
Yeah, it's going up a littlebit.
So the Fed's not going to dotheir thing?
Speaker 2 (08:16):
Yep, so they were going to lower it.
They were going to lower it andit's not going to happen.
Speaker 1 (08:20):
No.
So they're saying now, towardsthe end of the year, it's going
to happen.
So we'll see.
But if that, if that, hell,that'll help.
Right Price?
But prices, all the averagesbetween M, nba, nar, freddie,
fannie, right, yeah, goldmanSachs, they're all saying it's.
It ranges between 1.4% and 5%.
Wow, this year it's going to be3.2%.
(08:41):
That's a big span, Well that'sbecause they don't know what
they're doing Exactly.
Speaker 2 (08:44):
We do, though, we do, we do yeah.
Speaker 1 (08:46):
Yeah, we predicted 7% .
Speaker 2 (08:48):
I got to say it and we were right on.
Last year we were on it.
Yes, exactly, we were off lastnight.
Speaker 1 (09:03):
I'll tell you the moon and wages Wages are up 15
points over the normal increasedtread line.
The wage increased tread line,the normal increase that you see
, it's the dotted line, it's 15points ahead of that.
Speaker 2 (09:18):
Wow.
Speaker 1 (09:19):
Which means wages are up.
Speaker 2 (09:20):
That's good for affordability.
It's very good foraffordability.
Speaker 1 (09:22):
So it's still pretty affordable.
Speaker 2 (09:24):
It is very affordable .
Also, it's the best investmentand investment vehicle that
you're going to get.
Yeah, because it's a forcedsavings.
It's a forced savings account.
Speaker 1 (09:33):
Forced savings account.
Speaker 2 (09:39):
Yeah, man, you could sit there and say you know,
there's a vacation, you want togo on and you don't pay the a
hundred bucks.
And then you do this you buy anew car and you don't pay the a
hundred bucks a month.
So this is for you.
Have a beer emergency?
You?
Speaker 1 (09:49):
have a beer Holy crap .
Speaker 2 (09:50):
How much are you buying?
Where did you buy your beer andwhat?
How much are you buying my gosh?
I drink Tito's and it's notthat expensive.
It's an emergency.
So you spend more because it'sat midnight or what.
Yeah, that's it Exactly.
Speaker 1 (10:04):
More people with you, more people with you.
Speaker 2 (10:06):
The other thing that we saw, too, was 66% of the
people today are saying this isas of March 24, that it's a good
time to sell.
That's a fanny thing.
They did a survey, that's a goodsurvey, which is not in March,
but last February.
We were down under 50%, yeah,we were.
So if you look at the graph,there was a little dip.
It makes sense.
There's a little dip inDecember, okay, and then it's
(10:29):
been gone.
It's kind of on a trajectorygoing up, yep.
So I think some of your, soyou're going to see hopefully
more listings hitting the marketbecause of that kind of
response.
Speaker 1 (10:38):
That's right.
And response that's right.
And in that similar survey, oneout of four people said that
they think prices are going tocome down.
Oh, wow, that's 25% of thepopulation.
Okay, that's interesting.
So that's really not.
I mean, it's surprising thatthere's even that high, in my
opinion, but that's incredible,isn't that funny?
Yeah, it is.
Yeah so well, and I.
Speaker 2 (10:57):
I, you know, and I hear everybody talking about
what is the reason and I'm notgoing to get into everything,
but everybody's saying what'sthe reason for the prices going
up?
What's the reason?
Is it this I hear a lot oftimes that hedge fund people are
buying up single family homesand that's the reason the price
is going up.
I have to tell you, have youhad one hedge fund company?
(11:18):
Yeah, that's these hedge funds.
Yeah, hedge fund.
Have you seen one company?
No, or one thing in thatsituation?
Not here.
I haven't seen that only everin my life.
Yeah, um, so I don't know wherethat information is coming from
.
It was, it was the investmentsproperty side.
Speaker 1 (11:34):
It was the, it was the reeds, it was a.
No, it was the um.
What's the s?
It was the single family rentalhomes, gotcha.
Single family rental homes,gotcha.
Single family rental homes,gotcha.
80% are mom and pops.
Yeah, right, okay.
There's these other percentagesof regional investors and then
there's national investors.
And then it went into the hedgeguys, the big ones, it was 3%.
Speaker 2 (11:55):
Yeah.
Speaker 1 (11:55):
And and most of them.
Well, they're blaming it onthem.
They're saying because they ownso many homes.
Speaker 2 (11:59):
That's wrong.
But, here's the argument I cameback with that.
Somebody said this to me andthey couldn't answer the
question.
I said okay, that's great,let's just say they bought 20%
of them.
Yeah, who's living in them?
People?
Speaker 1 (12:11):
right.
Speaker 2 (12:12):
People.
Okay, so where are you going toput those people if the hedge
fund people sell those homes toother people?
Exactly Like there's.
Here's the thing it's in India.
Exactly Silence, silence.
It's like as though, likebecause they bought them,
there's nobody living in them.
Exactly what?
Do you think?
They're just vacant?
No, they're not vacant.
I'm sorry, I'm getting on likea tangent but it's like it just
(12:33):
pisses me off.
And between those 100 homes youeither are renting you're
renting some and there's peoplethat are owner-occupied.
Yeah, no matter what, no matterhow you put those 100 homes,
who you put in them, there'sstill 100 homes.
(12:53):
Oh, yes, they are Right.
Speaker 1 (12:56):
Am I not right?
Your math is perfect.
Speaker 2 (12:59):
You know I am a very swell mathematician.
Speaker 1 (13:03):
You are yes.
Speaker 2 (13:03):
You impress me yes.
Speaker 1 (13:06):
Yeah, I impressed no one the three moon thing really
got you Exactly.
So let's keep going back tothat.
It's inventory, it's inventory,it's all inventory, it's all
inventory.
But listen to this media thing.
This same article said it wasabout there were two decreases.
No, this is national guys.
Yeah, this is national.
Two decreases last year,january of 23 and January of 24,
(13:30):
had slight drops In the values.
It was under 0.02.
Speaker 2 (13:36):
And that's seasonal.
Speaker 1 (13:37):
And the media said real estate values are going
down, but the other 11 monthsaveraged between 0.2 and 0.9 per
month.
Now, yeah, if increased guys.
Yeah, the largest was Augustlast year 0.9 in one month.
Do you know what that is?
I mean, we averaged 7.39 here.
Speaker 2 (13:57):
That's 12%.
Yeah, if you keep going, if youkeep going, right Of course.
Yeah, that's pretty easy math.
Speaker 1 (14:01):
But the media said oh , here we go, said, oh, here we
go.
And guess what?
January is the slowest month ofthe year because it's winter.
Speaker 2 (14:08):
Yeah, nobody's doing anything.
Yeah, it's nobody doinganything.
I know it's crazy.
Speaker 1 (14:11):
It's crazy.
It gives us a headache.
Now I'm all worked up.
Speaker 2 (14:13):
Yeah, where's the Advil?
Where's the Advil?
Speaker 1 (14:16):
at.
But then, going to the mediaagain, I'm going to keep
hammering the media and I'mgoing to do it.
Listen people, we're going todo it.
Do you know why?
It's negative sales headlines,and that's what their business
is and ours is real estate, andwe watch these stats and get
green every month about how theycome out.
So the foreclosures are up,everybody.
He's still yelling at me.
Speaker 2 (14:37):
I got him worked up, don't I?
The sky's falling, the sky'sfalling, yeah.
Speaker 1 (14:40):
So what's the yeah, give me these numbers.
In 2023, there was 357,000foreclosures in the United
States and there was 324,000 in2022.
And in 2010, there was 2.9million.
Speaker 2 (14:55):
Is this your foreclosure voice?
It is my foreclosure voice.
Speaker 1 (14:58):
It's a great third party voice, isn't it?
It's a really good voice.
Oh, it's great, I like it.
So, yeah, it ticked up from$324 to $357.
Speaker 2 (15:04):
So we're still good, yeah, and there's no such thing
as zero on that, and they allgot absorbed.
Speaker 1 (15:08):
Yeah, exactly Because of the inventory, absolutely.
Speaker 2 (15:10):
Yeah, If we were in a problem with foreclosures.
You know, actually there's partof me wishes we had a little
bit more Bring it, but I meanseriously, because it would
maybe run.
We need to build.
We've got to repurpose andbuild.
Let's get those regulationsdown.
Yep, Either take old warehouses, turn them into residential.
(15:31):
You take old office buildingsthat are not going to be used
anymore.
Turn those into residential.
And then if there's land outthere, berkshire Mall get the
Berkshire Mall out of here.
Let's just reuse stuff We'vegot the spots to do it and also
loosen up a little bit on someof these regulations.
Speaker 1 (15:55):
Let's out there we really got to get the
regulations, absolutely,absolutely.
Yeah, I think we're good, I'mdone, I'm done.
You're spouting off.
Your blood pressure went up alittle bit, you know.
Oh wait, hold on.
Oh, hugo has a question.
Oh, hugo has a question.
A few months ago I got thathomestead letter in the mail.
Speaker 2 (16:02):
So I want to know how ?
Speaker 1 (16:04):
how does that help me ?
I know, researching it was.
It sounded like it wassomething good, but now that I
got my accepted letter.
Speaker 2 (16:11):
Now I don't know how do I?
Speaker 1 (16:13):
make the benefit effect.
You were accepted.
Yeah, congratulations.
Yeah, it's a good thing.
It is a good thing.
Speaker 2 (16:18):
Here's what you're going to save.
Let's just put it this wayDon't plan on any expensive
trips.
Don't plan on making a lot ofmoney off of this, because you
might get about $150 a yearcredit.
Well, off of this, because youmight get about 150 bucks a year
credit.
Speaker 1 (16:32):
Well, it depends on your taxes.
Yeah, it depends on what youalready pay.
Okay, got it.
Speaker 2 (16:33):
Got it.
When I was off site and got myfirst one, I was like this is
going to be great.
I'm going to get this homesteadcredit yeah.
Speaker 1 (16:39):
Yeah, and I got any taxes at all.
Speaker 2 (16:41):
And then I saw it on my tax bill.
Speaker 1 (16:52):
It was like $178 even worth the stamp yay for me, yay
for me is right.
Yes, all right.
So yeah, so no, you still do it, though you should.
Yeah, oh, absolutely do it.
Speaker 2 (16:55):
I mean, it's only for principal residents, yep, yep,
but and then the money comesfrom?
Uh was supposed to come fromthe gambling, that's right.
Right, it was yeah, which Iguess it still is.
I don't know that's where it'scoming from from, uh, the fact
that uh, pennsylvania had openedup more gambling and stuff
available, so that's where itcame from.
Speaker 1 (17:09):
So, yeah, that's why you put it on yeah, put it.
Speaker 2 (17:12):
Put it all on black or red and see if you win.
Speaker 1 (17:15):
Don't do green, yeah, but if you put it all on, red
and yeah, it'd be fine.
Speaker 2 (17:19):
Absolutely that's what I would do.
Oh, speaking of red, you'respeaking of red that's right.
All right, let's see.
Let's see here real quick,let's do the red ball.
We haven't done the red ballfor a while.
Win.
Are there three moons on Saturn?
There it is.
Speaker 1 (17:34):
No, so we're going to have to check that out, see if
it's real, I think it's wrongtoo.
Speaker 2 (17:38):
I think there's a four moon Four five.
Speaker 1 (17:40):
The one with the moon is Uranus.
Speaker 2 (17:42):
Oh geez, there we go.
I knew that was going to comeup.
No, I'm serious, google it.
What's about the?
Oh, okay, I'll check out.
There's so many things notenough time to say it all right,
that's about it every time,pete comes in, it turns into
much more than we thought itwould turn into and, uh, we're
just glad you're here.
Come back every thursday at 7pm.
(18:03):
We got all kinds of greatguests on here, and we even have
pete too, so, uh, that's aboutit.
Check us out on facebook,youtube and everywhere else you
find your podcasts.
All right, bye.
from real estate to real life and everything in
between the brad weisman showand now your host brad weisman.
Speaker 2 (00:12):
All right, we are back, and you know what?
I am freshly shaven too.
I I got rid of my beardcompletely and I'm now back to a
goatee.
And speaking of things that areback, um pete heim is back in
the in the office.
I always say in the office inthe studio but it is in the
office so I can say that yeahyou know, it's always good to
(00:34):
have you back but you knowwhat's funny too, this morning I
was brushing my teeth and forsome reason I thought about you.
I don't know why.
That's flat weird.
Speaker 1 (00:39):
It's better than in the shower right, um, but uh,
I'm brushing my teeth.
Speaker 2 (00:43):
Yeah, exactly, I'm brushing my teeth and I'm like
you know what Pete's coming intoday and I'm like it's a month
already, like these months goquick.
Speaker 1 (00:52):
I felt like yesterday .
Yeah, I thought the same thing.
I'm like is this real?
What the hell?
Speaker 2 (01:00):
Because I rely on your little notification no,
it's four weeks.
Speaker 1 (01:02):
It's four weeks.
Speaker 2 (01:03):
See, we always use him because he's younger, he can
keep track of time a lot betterthan we can.
Speaker 1 (01:07):
Much younger, yeah, much younger, but you know what?
Well, it has nothing to do withwhen it is in the month.
It's the same every month.
No, it's the same every month.
Speaker 2 (01:13):
It just felt quicker, it did it really did Really now
, which is pretty awesome.
Uh, it's, it's up 331 man.
Yeah, that's a good sign.
It is a great sign.
Anything not close to balance,but no, anything that's going
like this we're happy with.
Speaker 1 (01:30):
Yeah, absolutely, it's going the right way.
Very cool, very cool.
Yeah, I mean.
Diesel market's still around 20and, yep, that's all the same.
Absorption is still around amonth yeah, it's all the same
yeah, nothing has really changedthat.
Speaker 2 (01:40):
That too much, um.
So that's the end of the show.
Speaker 1 (01:42):
Uh, thanks for coming in, no just kidding.
Speaker 2 (01:43):
Good to see you all.
No, but one of the things I didwant to bring up, which is
really interesting I'm seeing alot more FHA buyers in the
market.
Oh yeah, yep, I really am.
I'm seeing a lot and I thinkit's good.
So if you're an FHA buyer andyou're out there and you were on
the market before Come backinto the market, it's good.
A lot of those people decidedto wait.
Yes, yeah, so it's good.
Speaker 1 (02:07):
But now they're back.
Speaker 2 (02:08):
Yeah, I have a listing.
Right now I got four offers onit that just came in today.
They're all FHA, all of them,all of them, wow, yeah.
So that's good.
Yeah, to buy FHA, becausethere's nothing wrong with FHA.
There's nothing wrong with it.
It's just that the perceptionof that would be that, oh well,
conventional is always going tobe better.
Speaker 1 (02:28):
But not always that's right and it's really it's not
always better for the buyer.
Speaker 2 (02:31):
It's the thing because FHA rates are lower.
Speaker 1 (02:34):
They're lower.
Yes, that's right.
And for a seller, if the houseis, oh, the FHA appraisals
Peeling paint handrails, thosekind of things.
Yeah, it's not big stuff.
Speaker 2 (02:47):
And a lot of times the buyers agree to pay for it
anyway.
That's right, yeah, yeah, allright, yeah, moving on.
Speaker 1 (02:52):
So what do you got for me?
Speaker 2 (02:52):
there, now the tax season's over.
Speaker 1 (03:03):
Yeah, sort of yeah, let's do that.
Speaker 2 (03:04):
Oh, now we're going to get audited.
Way to go.
See, here we go, we're going toget audited now.
Speaker 1 (03:08):
Sorry, IRS, Just don't you know.
Just shut the volume down.
No, no, People get refundsright.
Yeah, of course, and somethingto do with refunds we don't.
Speaker 2 (03:16):
No, we're abnormal, we're Abby normal when we're
self-employed.
You pay in all the time, that'sright.
Speaker 1 (03:25):
We always pay, Anyway , but you know.
Speaker 2 (03:27):
I'm not going to go there.
Speaker 1 (03:28):
Anyway, but what you can do with the IRS tax refund
that you got, you know you gotwhat you got.
You got down payment, yeah, andif you're saving for to buy a
house, I mean that gives you alittle bit of a boost.
The average one is a littleover 3,000 bucks.
The average refund.
That's amazing.
This past year, right, so yougot down payment, you got
closing costs right and you canbuy your rate down.
(03:50):
So if you don't like that 7%rate that's happening, you can
buy it down and in fact, 3,000would average out probably get
you a good what?
Half a percent, maybe, yeah,maybe, yeah.
Absolutely Depends on thelender.
Speaker 2 (04:03):
And that's a great thing to do, especially if you
think rates are going to staywhere they are and we're
starting to see a little bitmore of a staying where they are
type of pattern.
Yes, we are.
Yes, we are right.
Yeah, that's what?
Well, I was looking at themoons last night, the three
moons that lined up over aroundSaturn.
And that said, about the rates.
It did on saturn and that saidabout the rates.
(04:25):
It did, yeah, it did say it.
I don't even know if saturn hasthree moons.
I'm just gonna you know and youknow what's gonna happen.
Hugo, I'm gonna get emails.
He is so stupid that doesn'teven have three moons.
Speaker 1 (04:32):
It's like none on that only on star wars yeah,
only in star, that's right sowhat else you got?
Speaker 2 (04:36):
what other numbers do you?
Speaker 1 (04:37):
well.
So in in related to that,should I wait, uh, for mortgage
rates to come down before I move?
Moving meaning buyers andsellers moving both.
So basically, buyer demandright.
Based on interest rate,movement or environment, the
demand is weak, right?
(04:57):
So statistically now this is anew survey that just came out
between 7% and 7.5%, if buyersare only concerned about
interest rates, it's going to beweak.
Between 6.5% and 7%, it'slimited.
Then if it goes down to 6% to6.5%, it's good, and between
5.5% and 6% it's strong, no, Ithink it's mayhem.
Speaker 2 (05:18):
Mayhem is the word.
I think you looked at the wrongone.
Speaker 1 (05:20):
It's mayhem is the word.
I think you looked at the wrongone.
It's mayhem.
Yes, strong equals chaos.
Strong equals chaos, mayhem,mayhem Riding.
Speaker 2 (05:26):
We already got that.
Speaker 1 (05:27):
But no, the fence jumpers apparently come off the
fence right now between six andsix and a half is what the
article said.
So you were just talking aboutthe FHA fence riders?
Yeah, we were just talkingabout them and they're starting
to come in.
If you take your tax refund andget that seven down to six and
a half, there you are.
Yeah absolutely.
And that's right where you are?
Speaker 2 (05:46):
Yeah, it's incredible , and I think and what did we
say before, If the rates don'tcome down, people are going to
get used to them.
Speaker 1 (05:53):
They're going to get used to them.
Yeah, exactly, and I thinkthey're starting to get used to
it.
Speaker 2 (05:57):
I think if it drops down into the low sixes again,
people are going to go.
Oh man, I'm taking advantage ofthis because now we know it can
go from six and a quarter backup to seven a quarter in a very
short period of time, Absolutely.
Speaker 1 (06:09):
And if you're a seller, don't wait.
Why, well, what does that meanfor a seller?
Why would it be good to waitand not wait?
Yeah Right, it's not.
It has nothing to do with morebuyers for your house, right?
It has to do with more houses,competition-wise, absolutely,
which is where we're in, we'recoming into.
Speaker 2 (06:25):
So 331 on the market, which is awesome you know it's
an interesting quote I heard.
I don't remember where I heardit, so I can't give credit.
It was interesting because itsaid you know interest rates
right now are at 7.5%.
You know what they are when yourent 100%.
100% Isn't that great.
Isn't that great?
Can I use that?
You can?
Speaker 1 (06:44):
use it, it's not mine .
Speaker 2 (06:45):
I forget whose it is, but I'm just going to take it.
Speaker 1 (06:47):
I'm just I'm stealing that, yeah, Wow.
Speaker 2 (06:49):
That's awesome.
It was like the easiest quotein the world.
Yeah, yeah.
Speaker 1 (06:56):
Rates are 70% for purchase you principle.
Speaker 2 (06:57):
Yeah, it's all.
It's all interest, it's allinterest.
It's just that it's not yourinterest.
It's in the best interest ofthe person who owns the property
, different kind of interest.
Yeah, different kind of interest.
Absolutely, that's funny.
Yes, it is so.
So, yeah, so that was a goodquote and it just shows you that
once again, if you're, ifyou're renting and you can
purchase, cause some of theserents are just out of control.
We looked at a number that,over the past half, from 1969
(07:20):
until today, rents went from uh,what was it?
Down at like one 50 or $200 amonth to like $1,300 a month
today.
And everybody's like, yeah,okay, but the mortgage payments
were up too.
Yeah, but guess what, that rentdidn't go towards anything.
Right, and I'm not busting onpeople that have to rent?
Speaker 1 (07:37):
No, absolutely that's not it.
Speaker 2 (07:38):
But if you have a choice, don't throw your money
into the renting thing.
No.
I hear you and years ago itused to be because it was
cheaper.
It was cheaper to rent than itwas to buy.
That's right and that's notreally the case anymore.
Speaker 1 (07:53):
Not really the case.
You just need the down paymentand all that and monthly
payment-wise you're good.
Speaker 2 (07:58):
Yeah, exactly All right.
So what else you got there?
Speaker 1 (08:01):
And with affordability rates are expected
.
Okay, they're saying, here wego, they're expected to drop and
they're pushing it off a littlebit because the inflation
Inflation isn't budging.
It's actually going up a littlebit.
Yeah, it's going up a littlebit.
So the Fed's not going to dotheir thing?
Speaker 2 (08:16):
Yep, so they were going to lower it.
They were going to lower it andit's not going to happen.
Speaker 1 (08:20):
No.
So they're saying now, towardsthe end of the year, it's going
to happen.
So we'll see.
But if that, if that, hell,that'll help.
Right Price?
But prices, all the averagesbetween M, nba, nar, freddie,
fannie, right, yeah, goldmanSachs, they're all saying it's.
It ranges between 1.4% and 5%.
Wow, this year it's going to be3.2%.
(08:41):
That's a big span, Well that'sbecause they don't know what
they're doing Exactly.
Speaker 2 (08:44):
We do, though, we do, we do yeah.
Speaker 1 (08:46):
Yeah, we predicted 7% .
Speaker 2 (08:48):
I got to say it and we were right on.
Last year we were on it.
Yes, exactly, we were off lastnight.
Speaker 1 (09:03):
I'll tell you the moon and wages Wages are up 15
points over the normal increasedtread line.
The wage increased tread line,the normal increase that you see
, it's the dotted line, it's 15points ahead of that.
Speaker 2 (09:18):
Wow.
Speaker 1 (09:19):
Which means wages are up.
Speaker 2 (09:20):
That's good for affordability.
It's very good foraffordability.
Speaker 1 (09:22):
So it's still pretty affordable.
Speaker 2 (09:24):
It is very affordable .
Also, it's the best investmentand investment vehicle that
you're going to get.
Yeah, because it's a forcedsavings.
It's a forced savings account.
Speaker 1 (09:33):
Forced savings account.
Speaker 2 (09:39):
Yeah, man, you could sit there and say you know,
there's a vacation, you want togo on and you don't pay the a
hundred bucks.
And then you do this you buy anew car and you don't pay the a
hundred bucks a month.
So this is for you.
Have a beer emergency?
You?
Speaker 1 (09:49):
have a beer Holy crap .
Speaker 2 (09:50):
How much are you buying?
Where did you buy your beer andwhat?
How much are you buying my gosh?
I drink Tito's and it's notthat expensive.
It's an emergency.
So you spend more because it'sat midnight or what.
Yeah, that's it Exactly.
Speaker 1 (10:04):
More people with you, more people with you.
Speaker 2 (10:06):
The other thing that we saw, too, was 66% of the
people today are saying this isas of March 24, that it's a good
time to sell.
That's a fanny thing.
They did a survey, that's a goodsurvey, which is not in March,
but last February.
We were down under 50%, yeah,we were.
So if you look at the graph,there was a little dip.
It makes sense.
There's a little dip inDecember, okay, and then it's
(10:29):
been gone.
It's kind of on a trajectorygoing up, yep.
So I think some of your, soyou're going to see hopefully
more listings hitting the marketbecause of that kind of
response.
Speaker 1 (10:38):
That's right.
And response that's right.
And in that similar survey, oneout of four people said that
they think prices are going tocome down.
Oh, wow, that's 25% of thepopulation.
Okay, that's interesting.
So that's really not.
I mean, it's surprising thatthere's even that high, in my
opinion, but that's incredible,isn't that funny?
Yeah, it is.
Yeah so well, and I.
Speaker 2 (10:57):
I, you know, and I hear everybody talking about
what is the reason and I'm notgoing to get into everything,
but everybody's saying what'sthe reason for the prices going
up?
What's the reason?
Is it this I hear a lot oftimes that hedge fund people are
buying up single family homesand that's the reason the price
is going up.
I have to tell you, have youhad one hedge fund company?
(11:18):
Yeah, that's these hedge funds.
Yeah, hedge fund.
Have you seen one company?
No, or one thing in thatsituation?
Not here.
I haven't seen that only everin my life.
Yeah, um, so I don't know wherethat information is coming from
.
It was, it was the investmentsproperty side.
Speaker 1 (11:34):
It was the, it was the reeds, it was a.
No, it was the um.
What's the s?
It was the single family rentalhomes, gotcha.
Single family rental homes,gotcha.
Single family rental homes,gotcha.
80% are mom and pops.
Yeah, right, okay.
There's these other percentagesof regional investors and then
there's national investors.
And then it went into the hedgeguys, the big ones, it was 3%.
Speaker 2 (11:55):
Yeah.
Speaker 1 (11:55):
And and most of them.
Well, they're blaming it onthem.
They're saying because they ownso many homes.
Speaker 2 (11:59):
That's wrong.
But, here's the argument I cameback with that.
Somebody said this to me andthey couldn't answer the
question.
I said okay, that's great,let's just say they bought 20%
of them.
Yeah, who's living in them?
People?
Speaker 1 (12:11):
right.
Speaker 2 (12:12):
People.
Okay, so where are you going toput those people if the hedge
fund people sell those homes toother people?
Exactly Like there's.
Here's the thing it's in India.
Exactly Silence, silence.
It's like as though, likebecause they bought them,
there's nobody living in them.
Exactly what?
Do you think?
They're just vacant?
No, they're not vacant.
I'm sorry, I'm getting on likea tangent but it's like it just
(12:33):
pisses me off.
And between those 100 homes youeither are renting you're
renting some and there's peoplethat are owner-occupied.
Yeah, no matter what, no matterhow you put those 100 homes,
who you put in them, there'sstill 100 homes.
(12:53):
Oh, yes, they are Right.
Speaker 1 (12:56):
Am I not right?
Your math is perfect.
Speaker 2 (12:59):
You know I am a very swell mathematician.
Speaker 1 (13:03):
You are yes.
Speaker 2 (13:03):
You impress me yes.
Speaker 1 (13:06):
Yeah, I impressed no one the three moon thing really
got you Exactly.
So let's keep going back tothat.
It's inventory, it's inventory,it's all inventory, it's all
inventory.
But listen to this media thing.
This same article said it wasabout there were two decreases.
No, this is national guys.
Yeah, this is national.
Two decreases last year,january of 23 and January of 24,
(13:30):
had slight drops In the values.
It was under 0.02.
Speaker 2 (13:36):
And that's seasonal.
Speaker 1 (13:37):
And the media said real estate values are going
down, but the other 11 monthsaveraged between 0.2 and 0.9 per
month.
Now, yeah, if increased guys.
Yeah, the largest was Augustlast year 0.9 in one month.
Do you know what that is?
I mean, we averaged 7.39 here.
Speaker 2 (13:57):
That's 12%.
Yeah, if you keep going, if youkeep going, right Of course.
Yeah, that's pretty easy math.
Speaker 1 (14:01):
But the media said oh , here we go, said, oh, here we
go.
And guess what?
January is the slowest month ofthe year because it's winter.
Speaker 2 (14:08):
Yeah, nobody's doing anything.
Yeah, it's nobody doinganything.
I know it's crazy.
Speaker 1 (14:11):
It's crazy.
It gives us a headache.
Now I'm all worked up.
Speaker 2 (14:13):
Yeah, where's the Advil?
Where's the Advil?
Speaker 1 (14:16):
at.
But then, going to the mediaagain, I'm going to keep
hammering the media and I'mgoing to do it.
Listen people, we're going todo it.
Do you know why?
It's negative sales headlines,and that's what their business
is and ours is real estate, andwe watch these stats and get
green every month about how theycome out.
So the foreclosures are up,everybody.
He's still yelling at me.
Speaker 2 (14:37):
I got him worked up, don't I?
The sky's falling, the sky'sfalling, yeah.
Speaker 1 (14:40):
So what's the yeah, give me these numbers.
In 2023, there was 357,000foreclosures in the United
States and there was 324,000 in2022.
And in 2010, there was 2.9million.
Speaker 2 (14:55):
Is this your foreclosure voice?
It is my foreclosure voice.
Speaker 1 (14:58):
It's a great third party voice, isn't it?
It's a really good voice.
Oh, it's great, I like it.
So, yeah, it ticked up from$324 to $357.
Speaker 2 (15:04):
So we're still good, yeah, and there's no such thing
as zero on that, and they allgot absorbed.
Speaker 1 (15:08):
Yeah, exactly Because of the inventory, absolutely.
Speaker 2 (15:10):
Yeah, If we were in a problem with foreclosures.
You know, actually there's partof me wishes we had a little
bit more Bring it, but I meanseriously, because it would
maybe run.
We need to build.
We've got to repurpose andbuild.
Let's get those regulationsdown.
Yep, Either take old warehouses, turn them into residential.
(15:31):
You take old office buildingsthat are not going to be used
anymore.
Turn those into residential.
And then if there's land outthere, berkshire Mall get the
Berkshire Mall out of here.
Let's just reuse stuff We'vegot the spots to do it and also
loosen up a little bit on someof these regulations.
Speaker 1 (15:55):
Let's out there we really got to get the
regulations, absolutely,absolutely.
Yeah, I think we're good, I'mdone, I'm done.
You're spouting off.
Your blood pressure went up alittle bit, you know.
Oh wait, hold on.
Oh, hugo has a question.
Oh, hugo has a question.
A few months ago I got thathomestead letter in the mail.
Speaker 2 (16:02):
So I want to know how ?
Speaker 1 (16:04):
how does that help me ?
I know, researching it was.
It sounded like it wassomething good, but now that I
got my accepted letter.
Speaker 2 (16:11):
Now I don't know how do I?
Speaker 1 (16:13):
make the benefit effect.
You were accepted.
Yeah, congratulations.
Yeah, it's a good thing.
It is a good thing.
Speaker 2 (16:18):
Here's what you're going to save.
Let's just put it this wayDon't plan on any expensive
trips.
Don't plan on making a lot ofmoney off of this, because you
might get about $150 a yearcredit.
Well, off of this, because youmight get about 150 bucks a year
credit.
Speaker 1 (16:32):
Well, it depends on your taxes.
Yeah, it depends on what youalready pay.
Okay, got it.
Speaker 2 (16:33):
Got it.
When I was off site and got myfirst one, I was like this is
going to be great.
I'm going to get this homesteadcredit yeah.
Speaker 1 (16:39):
Yeah, and I got any taxes at all.
Speaker 2 (16:41):
And then I saw it on my tax bill.
Speaker 1 (16:52):
It was like $178 even worth the stamp yay for me, yay
for me is right.
Yes, all right.
So yeah, so no, you still do it, though you should.
Yeah, oh, absolutely do it.
Speaker 2 (16:55):
I mean, it's only for principal residents, yep, yep,
but and then the money comesfrom?
Uh was supposed to come fromthe gambling, that's right.
Right, it was yeah, which Iguess it still is.
I don't know that's where it'scoming from from, uh, the fact
that uh, pennsylvania had openedup more gambling and stuff
available, so that's where itcame from.
Speaker 1 (17:09):
So, yeah, that's why you put it on yeah, put it.
Speaker 2 (17:12):
Put it all on black or red and see if you win.
Speaker 1 (17:15):
Don't do green, yeah, but if you put it all on, red
and yeah, it'd be fine.
Speaker 2 (17:19):
Absolutely that's what I would do.
Oh, speaking of red, you'respeaking of red that's right.
All right, let's see.
Let's see here real quick,let's do the red ball.
We haven't done the red ballfor a while.
Win.
Are there three moons on Saturn?
There it is.
Speaker 1 (17:34):
No, so we're going to have to check that out, see if
it's real, I think it's wrongtoo.
Speaker 2 (17:38):
I think there's a four moon Four five.
Speaker 1 (17:40):
The one with the moon is Uranus.
Speaker 2 (17:42):
Oh geez, there we go.
I knew that was going to comeup.
No, I'm serious, google it.
What's about the?
Oh, okay, I'll check out.
There's so many things notenough time to say it all right,
that's about it every time,pete comes in, it turns into
much more than we thought itwould turn into and, uh, we're
just glad you're here.
Come back every thursday at 7pm.
(18:03):
We got all kinds of greatguests on here, and we even have
pete too, so, uh, that's aboutit.
Check us out on facebook,youtube and everywhere else you
find your podcasts.
All right, bye.
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