REAL ESTATE CRASH OF 2021 - My Thoughts | Summary and Q&A

TL;DR

Real estate investor Andre Jake believes that a real estate crash is imminent, citing factors such as delinquencies, high inventory levels, and potential job losses. He advises caution and offers investment strategies to navigate the uncertain market.

Key Insights

• ✋ The impending real estate crash is based on factors such as increasing delinquencies, high inventory levels, and potential job losses.
• 👯 The impact of the pandemic and government interventions has created a distorted narrative, encouraging people to buy real estate despite economic uncertainties.
• 🌸 Job losses and the expiration of forbearance programs will be crucial in determining the long-term outlook of the real estate market.
• 🇳🇨 Las Vegas, Miami, Orlando, New Orleans, and New York are identified as cities likely to experience significant declines in real estate prices.

Transcript

hi my name is andre jake hope you're doing great hope you're feeling well come for the finance and stay for the magic i think i got it right this time i'm just kidding today i wanted to talk about something that i usually don't talk about on my channel which is real estate but first a little disclaimer usually i try to stay in my lane of confidence... Read More

Questions & Answers

Q: Are there any signs of improvement in the real estate market, despite the predicted crash?

While delinquency rates have slightly improved and refinances are at an all-time high, there are still concerning indicators, such as a five-fold increase in serious delinquencies since the start of the pandemic. The market may see a temporary boost, but long-term outlook remains uncertain.

Q: Which cities are likely to experience the biggest declines in real estate prices?

Las Vegas, Miami, Orlando, New Orleans, and New York are expected to see significant declines in real estate prices due to various economic factors and high delinquency rates.

Q: How will job losses impact the real estate market?

The world economic forum predicts 85 million job losses by 2025. If there is a double disruption event where new jobs are not adequately filled, it could lead to an imbalanced demand for housing and negatively impact the market.

Q: What investing strategies does Andre Jake recommend for real estate?

Jake plans to wait and evaluate the market after the forbearance period expires to assess the potential damage. He suggests buying inflation-protected assets, such as Bitcoin or the S&P 500, depending on the inflation rate. He also considers investing in real estate rental properties when the market stabilizes.

Summary & Key Takeaways

• Andre Jake, a non-licensed real estate investor, discusses his desire to buy a house and the pressures of keeping up with friends who have already purchased properties.

• He predicts a real estate crash in 2021 or 2022, based on increasing delinquencies and forbearance rates. However, he acknowledges temporary boosts, such as record-breaking home refinances.

• Jake highlights the importance of considering two major factors: government actions and job stability. He believes that the expiration of forbearance programs and potential job losses could negatively impact the real estate market.