David Sidoni argues that recession headlines shouldn't scare first-time buyers away. Housing appreciated in four of the last six recessions, and downturns can create buying opportunities for long-term owners. The 2008 crash was driven by market mispractices, not a pattern that repeats.
Questions this video answers
Housing appreciated 4 out of 6 recessions and dropped 2 times; the 1990s drop was under 2%.
Chapters
Lets talk about how to buy a home in 2022 and 2023. Okay? So in preparation of this, I want to warn you. This is a warning, everybody. There are two scary headlines that are going to be coming out soon. When you see this on your phone, do not freak out. Stay calm. Two big scary headlines that are coming are recession and bad housing market. So let's chat about the first one, recession. Let me remind you of something the great investor guru Warren Buffett said. When people get greedy, be fearful. And when people get afraid, get greedy. Now I'm not telling that. I want you to start thinking of homes as an investment and start flipping them for a profit. Actually, I'm telling you exactly the opposite. See recession and bad housing market headlines, they're going to get all the clicks because the information is being put out there that the average Joe or Jane homeowner who owns a house already, they're concerned about the economy and the value of their home. So when you hear recession, don't get all salty and let that news slow you down on your home buying plan. Remember, that news is for the home sellers, the people who own their houses. And in this crazy new renters market where it's skyrocketing for most average renters, the best time to buy instead of rent, well, that was yesterday. And when it comes to the recession, a recession does not equal a housing crisis. Those of you watching on YouTube, take a look at this. In the last six recessions in the last four decades, housing appreciated four out of six times and only dropped two times once in the 1990s and that drop was less than 2%. And the other drop was the most recent recession that had everyone so scared because it's so fresh in their minds. And it was partially because, if not majorly because the mispractices in the housing market. That's why that one was so terrible for housing. And the numbers are so awful. But understand the full data and know that this pre recession housing run up that we're in right now because the recession is coming. So this is pre recession housing run up. Know that four out of the last six times we didn't go into recession. And this is nothing like the one time we dropped big time. It's not bubble like, like the last time. It's not going to burst or crash like the bubble in 2008. It's going to slow and correct. All right, headline number two, Bad housing market. Bad market. Those of you watching on YouTube can see my sweet air quotes. Bad for who? Remember when I was Telling you see, since episode one, the system is rigged against first time home buyers. And the entire real estate industry is so slanted towards the sellers that almost everything, I mean almost all of it is geared towards people who already own a home. So the information isn't out there for you. The information isn't designed for you and the adjectives are not designed for you, they're for the sellers. When you hear the real estate news, they're talking about them, not you. That's why I put out a hundred of these bad boys to start the revolution and give you the first time buyers the correct interpretation of the headlines. So a bad market. It's like my boys run DMC, say it's not bad meaning bad, but bad meaning good. 52 year old orange county white guy rapping sweet. Bad is bad for sellers and that's good for you. Remember guys, real estate is clueless to your power as a group and they ignore and mistreat you. And I'm in the minority so I'm going to sound like the crazy mad scientist screaming at the city council meeting. But this is the way. Because the real estate industry is broken and run by greedy and lazy people who think that listing homes and selling homes is the best way to make money. So all the news is geared towards the sellers and bad for them is what you're going to hear in the headlines. But bad for them can be good for you. Not bad meaning bad, but bad meaning goo. I tried to rhyme you and goud. That's cheese. And all the Wall street folks and the rich ballers believe in what Warren Buffett said about being fear, fearful when people are greedy and being greedy when people are afraid. Why? Well, break it down. What does that mean? It means to sell high and buy low. That's all it means. The average people without a trust fund supporting them and piles of money to invest, regular people, they end up getting greedy way too late. When a thing has run up for years and they've had enough time watching it to go, I'm going to jump into that. They don't have piles of daddy's money to invest, so they have to spend their time working to make their money. And because of that they don't pay any attention to the market trend. So by the time they hear about the things that are these great deals going up and up and up, well, that's when they decide maybe it's time for them to jump in and get what everyone else got. But that's where they're getting greedy. Because they think it's going to keep going up, or worse, they think it's going to last forever. Ooh, it's not. And when things go down, that's when they freak out because they can't afford to lose anything. So they sell to avoid more losses before it's going to keep dropping. And they would never buy then because they think, why am I going to buy something that's going down? And it's because they don't have a real grasp on the understanding of the history and the long term data. Things always bounce back. And the people with the money who can afford to ride out the bad times, they don't stress out when they're buying something going down because they know it's coming back. That's when they buy. And when things are up, the people with the money, that's when they sell. Because maybe they don't even need that asset anyway. So to an average Joe who's been seeing prices go up for a while and due to fomo, well, now they decide to jump in at the exact same time that the rich folks are selling. See how it works? That's why in real estate, when the market is described as bad, when it's bad for sellers, that's bad for the average Joe home owner. But for you, if things get bad and you play the long game, understanding that it will come back bad is good for you. Sa.
