2021 Housing Crash Response to MeetKevin | The Kwak Brothers

2021 Housing Crash Response to MeetKevin

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2021 Housing Crash Response to MeetKevin

2021 Housing Crash Response to MeetKevin … As you all know….. Been uploading housing market Videos! These videos have all alluded to my opinion that there will be a housing market crash coming. Having said that there have been a LOT of different voices on youtube addressing the housing market and a potential housing market crash, and in the same breath, there have been channels both big and small that are saying that the housing market will not crash and everything’s not as crazy as it seems. 40 million Evictions Article: https://nlihc.org/news/30-40-million-people-america-could-be-evicted-their-homes-end-2020 Ken McElroy’s Response to MeetKevin: https://youtu.be/h56S5BA7AyI MeetKevin’s Video: https://youtu.be/dqqtzHmQ06k So in this video, I’ll be responding to Meetkevin’s housing market video “the truth updated” that he released Yesterday Oct. 4. In regards to the video, there are actually some things I disagreed with him on. So one of his first points he makes is that … Unemployment won’t affect the housing market as much as people think due to forbearance programs currently out there. Along with the fact that there is no real data that state real facts about unemployment or mortgage delinquencies. He also states that we have to look at the equity positioning of all the mortgages. Along with the fact that there are completely different buyers today compared to 2008 that are stronger buyers. Yes, it’s true that there aren’t as many predatory lending tactics as there were back in 07, and mortgage brokers arent making as much as they used to in the number of numbers as well. The fact of the matter is that 08 didn’t just happen due to predatory lending, it also happened because credit rating agencies such as S&P and Moody’s weren’t held accountable for the ratings they were giving out. In turn, 08 didn’t happen because of the relationship between financial lenders and the consumers only, but the relationship between banks and pretty much everyone, such as credit agencies, investors, other banks. In the video he quotes an earlier video saying that there may be up to 15 million households being evicted, he then says 30% most likely will actually go through the eviction process, then gives a scenario where half of those homes (2 million) would hit the market resulting in a 28% addition in inventory. Kevin makes the argument that this won’t cause a crash because the influx of new inventory will most likely be absorbed into the buyer pool and will sustain the crazy hot rising market we have currently. So that’s 2 million homes out of 15 million evictions hitting the market at the same time. Now let’s say there is no forbearance and therefore it doesn’t cause a liquidity crisis. it can POTENTIALLY cause delinquencies to skyrockets even more than now which btw I’m glad Ken McElroy covered this in his channel that over 2 million people are now 90 days or more delinquent. In his video, Kevin’s original math that he did was 30% of 15 million potential evictions and then half of those houses actually hitting the market which was 2 million homes resulting in a 28% increase in inventory. So if we follow the same path and take 12 million divides by 2 and have that be the number for how many houses hitting the market at one time. This results in 6 million homes hitting the market which translates to an 84% increase in inventory. Now let’s move on to what my Real reason for economic downturns happening is, fear. When no one wants to buy anything or go anywhere it causes a myriad of economic troubles. But in regards to fear, almost every credible news outlet way reports that over 70% of economists are predicting a crash in 2021, whether that’s true or not it spreads fear towards the mass public, which leads to a slowdown in overall business activity and scarcity, which of course is one of the universal causes of any downturns regardless of severity. It causes businesses to be shut down even more than now, everyone pulling out of their investments, and equities markets to take a drastic hit as well. Don’t forget to like and subscribe,

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