Real estate Boom?

[Edgar Sanabia]

what are your guys thoughts on the the 2 banks shutting down, and weather they will affect the real estate market?

[William Arrington]

Quote from @Edgar Sanabia:

that sounds like its going to screw over new home buyers. Making it harder to buy a house as well.

Yes and no. VA and FHA loans will still happen but you will need good credit. There are 1,564,537 real estate agents in the united states (didnt realize they tracked the number to this accuracy) so i will say 1/3 no longer exist after a bad downturn. Home prices have to fall... its really that simple. They try to say there are over 400 housing markets but honestly there are closer to 150 viable housing markets that swallow some of the ones they separate into 2 to even 5 markets sometimes. I like to use the 3x rule to determine if a market is starting to bubble. Find the median income for a household then multiply it by 3. Thats your baseline to determine if a market is getting to expensive. So right now the average age of a first-time buyer is 33 to 36 depending on where. So lets use columbus ohio for an example. average medium income for a household in $54,902. That means first-time buyers 3x number is $164,706 for a first home. Average price there as of last month was $264k. Seems little bubbled but not to bad as long as crime isnt to bad in the areas that first-time buyers can afford. The problem is that interest rates moved really fast and home prices didnt follow. Last year $164k with 20% down and 3% rate was $729 a month. Now its $963 at 6%