Is Dave Ramsey Still Right About The Housing Market in 2023?

foreign do you remember well it was probably two years ago now that people were starting to talk about the bubble the bubble the housing bubble is gonna it's gonna it's gonna burst it's gonna burst it's gonna be another 07 you know like the oh yeah the freak out and then we did the big the the reality the real estate live stream and so you know the market we've said it saw I mean it's cooled down it's not as insane as it was but then uh yep so we're stabilizing and so uh on Instagram I know you love Instagram reels uh a guy a guy I had a whole thing about how the number one market that's gonna burst very soon is Nashville and how Nashville it's gonna all this stuff and then I went and read through the comments and they were like are you insane like have you been to Nashville and seen the econ because it's it's still crazy in Nashville right I mean like there's still there are still fewer houses more guys still saying that yes there's a guy that and I just saw it the other week and I was like oh no not Nashville because we we experience it here and it's like people are still flocking and still moving here uh but what but I can't get you to not come I know so for you and your perspective with real estate specifically like what what trends are you seeing out there because I mean I kind of just I I see Nashville and know Nashville but overall the landscape the the bubble has not burst we are still okay but it has it has softened right some I mean it's not as it's not as urgent and freaked out as it was but overall what are you what are you saying I think um you know I think we can just stop and say I told you so can't we I mean because we did like 18 months ago when everybody was frantic because the market had slowed down and interest rates were coming up we did a two hour long live stream I would imagine you could still watch it and go back and watch it and I think you'll see in that that we predicted exactly what has happened now now we don't always get it right but we were using data not emotions to actually figure out what's going on and the data was this there even though the interest rates have gone up there still is a dramatic inventory shortage in real estate in almost every city in order for prices of anything to come down Supply demand curves have to shift meaning that the supply has to be much higher than the demand but when there is the opposite a shortage versus a glut in the market when there's a shortage prices go up so if you want to cause the prices on something to go up make it scarce make it make it be a shortage there is not a shortage of real estate there is a I mean there is a shortage of real estate and so the the opposite of prices tanking everybody's oh it's all going to go away it's all going to be another front two thousand and we kept saying no it's not it's not going to bust it's not going to bust it we said it is going to slow down and we said if you're going to sell a house you're going to have to actually clean it up and Stage it which is you know and you can expect to put it on the market again you can put it on the market you expect 90 to 120 days and you can expect not to get 110 of your asking price with 87 offers on one weekend that was an anomaly that was a short period of time after covid when everybody sat around in their house got fat and decided they wanted to move out of their house Lumber went up 3x it's back down uh and Builders are Builders are not building specs right now yeah they slowed down and they're adding to this shortage because the the it slowed down and they don't they don't get stuck with a spec house and so spec house starts our way off which is hurting the inventory even more you can't find a house in a lot of markets so you have not seen prices crash you've seen them steadily increase we said in the year 2023 you were going to see a two to a seven percent increase in prices Nationwide and that is about what we're going to see and that's what your home is actually valued not the inflated price that people are throwing out there yeah right these people could put an extra half a million dollars something insane on you know and people would just buy it this is not asking price this is actual value that's right that's right actual value and it's not people buying like they've lost their dadgum mines this is people reasonable people buying properties at reasonable prices you're going to see that number you know you put a house on the market for three hundred thousand dollars expect to get a an offer you know of 280 and that you're going to negotiate yeah and expect to sit there for 90 to 120 days to sell the house and expect that if your house is ugly and dirty it's not going to sell so that's not unusual that's like 90 of the years that we've had real estate operating in America it's been that way we had a short period of time when it was cray-cray and we covered all of that in detail and then it has happened exactly the way we said yeah so no whatever characters on whatever Instagram economists that's like it was funny though it's like an oxymoron I'll be honest I fall for everything I see on the internet even though that sometimes is the case not everything I had a moment where I was like oh gosh what does he see that I'm not see I don't know and then you know I'm watching it again I'm like that just doesn't feel right and the funniest part is just going to the comments because people just ripping around everyone's like I'm a real estate agent National are you kidding me like smoking something yeah so anyways it was it was good but that's what you're saying that's just good to know I think that it's good to kind of just get a pulse on um and then interest rates obviously are they're up they're up and do you ever see them coming back down to that to three percent I don't know I I don't know what interest rates are going to do I will tell you this you can have a healthy sustained realist residential real estate market for home buyers and six percent will just rock it for days I mean we've rocked it for decades at six percent the only reason it was driven down below six yeah was artificially by the government driving it down to re-stimulate the real estate market after 2008. but prior to 2008 for what 15 years it sat around six yeah you know when I came on the air in uh 1992 doing this show the rates were like nine and we were selling lots of people selling houses everywhere nobody thought anything about it yeah and then they came down to six and we thought oh this is awesome this is great because six is great when you're comparing it to nine six is not great when you're comparing it to two and a half yep yep you know and so it's all your point of reference the secret to happiness is low expectations right so oh my gosh but yeah that the you're you're right we should have stopped and said I told you so because we don't know what I was asking no I I you will take this moment no we really should do that every so often because we get so much stupid hate mail by people on these uh social media channels and everything else that we don't know what we're talking about and we completely nailed that yeah I mean our team here and I the Ramsey personalities looked at the data and we said this is what's going to happen and we hammered it we nailed it and it certainly wasn't the crash of the real estate market that a lot of you or believing and predicting was going to occur 18 months ago just think back to 18 months ago and that's about when we did that live stream so go look it up

Channel: The Ramsey Show Highlights

Views: 342,317

Keywords: the dave ramsey show, budget money debt cash, real estate, insurance, how to make money, dave ramsey, save, credit card, compound interest, buying house, buy, snowball, Is Dave Ramsey Still Right About The Housing Market in 2023?

Id: 0E_-1rmspCo

Length: 7min 56sec (476 seconds)

Published: Tue May 30 2023