 I want to talk about homes in the US. We could literally, literally be underwater billions and billions of dollars. And I'm not talking about the market. I'm talking about some other factors that I feel like is just an interesting conversation. I don't know what I believe and what I don't believe when it comes to this, but I feel like it's an interesting conversation. And after this video, I'm going to do a lot more research to dig more into this issue so that I can become more informed myself and also really relay that to you moving forward. But before I get into why we could potentially be so far underwater here, I just want to talk about the state of the market in general, the fact that we are literally down billions of dollars in equity with homeowners in the US just because the market downturn from the peak of June. So it's actually trillions. So the US homeowners have lost $2.3 trillion, trillion dollars in value since the peak in June. All right. So total value of US homes was $45.3 trillion at the end of 2022, down 4.9%. That's $2.3 trillion. From our record high of $47.7 trillion in June. This is the largest June to December drop in percentage terms and percentage terms, guys, percentage terms since 2008. So with the total value of US homes up 6.5% from a year earlier in December, that's the smallest year over year increase during any month since August 2020. This is according to an analyst from Redfin Estimates on more than 99 million US residential properties. So we're down from the peak. I think we all knew that, okay? I think we all knew that. But understanding how much we're down is the big one. So in the Bay Area, housing has lost more value in percentage terms than anywhere in the country, right? And that's, you know, even with Florida, continuing to see gains. So that's what I was saying earlier that in Miami, for example, price is still going up. This is crazy. And another interesting fact is that millennials who are now in their home buying years have experienced larger value gains than other generations. So I want to talk about why that is. But then also, here is something very interesting is that is values in high areas with areas with high flood and or heat risk have held up better than values in areas with low risk, indicating that, ding, ding, ding, climate dangers aren't priced in, okay? So we're going to come back to that in just a minute. Climate dangers not priced into the market. That's something I feel like is just a very interesting topic that I want to open up with you guys and get your comments on. So this is a chart showing the $2.3 trillion lost in value. So this goes back to, say, probably 2002, it looks like. And you can see the total value of U.S. residential homes in the U.S. And then the bottom chart here is year over year change. You can see the dip in the 2008 to 2012-ish to 13 range. And then it started to come back with a vengeance, mind you. And then you can see where it plunged up, you know, during the pandemic, post-pandemic and all that good stuff. And then it's kind of plummeted down from there. But you see the red here, it goes all the way up to the $47 trillion and now we're down to $45 trillion. So it's going to take so much to bring this chart back down to where we're at, say, 2018, 2019 numbers. The total value of homes in Miami rose 19.7% year over year, okay, $77 billion to $468 billion in December. The largest annual increase in percentage terms among the Metro Redfin analyzed. So Miami, they rose the highest in terms of overall valuation of homes in their area out of all the Metro areas analyzed. And then a few other ones was Sarasota, Florida, Knoxville, Tennessee, Charleston, South Carolina, Lakeland, Florida. Those all saw nice appreciation points. You see two of those places there are in Florida. Florida is just, and I think that's because people are flocking. People are still, you know, that's like an aftermath of people flocking to Florida. We all know a lot of people moved from California to Texas and Florida. People were flocking from New York to Florida. I think a lot of that has slowed down a pretty good bit. I still hear of agents telling me that they're still seeing people, you know, like my agents in Florida are still saying people in New York are still coming, but not like it was, right? Not like it was. So that's starting to slow down a bit. So I think that has a lot to do with these numbers, people moving, you know, and if you look at these numbers in some of these other areas, like for example, like we said here, the Bay Area Housing Market has lost the most, right? That's people moving out of the Bay Area, moving to Florida. That's people moving out of New York and moving to Florida. So you're going to see New York probably right under Bay Area for this, that list. The Millennials. I thought this was interesting. Millennials in prime home buying age are replacing large value or are reaping large value gains. So they're seeing the largest benefit here of equity gains, value at, you know, total, you know, housing, you know, value. They're seeing the biggest gains out of all the generations, all the different generations, because they're moving into their prime home buying years. And this is something I've been talking about for a while, is that we're going to have the Millennials, which is the largest generation, moving into their prime buying years for a long time because it's such a large, the age range of Millennials is so large that we're going to see a good 5 to 10 years worth of massive demand from that generation coming into their prime buying years. And this is another thing that I believe really pushes the market up over the next three to five years, because you've still got lack of inventory. And we've got the largest generation out there coming into their 30s. And I'm, I'm, I'm the oldest millennial. I know that the end, I don't know where the beginning range is, age ranges for Millennials. But I know the end range is 41 because I'm 41. And I know that I barely made the cut to be a Millennial to be considered a Millennial. And so, and I know that I'm the oldest. So, and I know it went back a lot further than 10 years. So, we're looking at a good 5 or 10 years worth of demand with builders that can't keep up, they can't keep up. And the reason why, and this makes total sense. The reason why they saw the largest gains of value, home values, because since they're in their home buying age, they're purchasing substantially more homes than they were in recent years. So, it makes total sense. The Millennials weren't buying in their 20s. So, of course, that generation didn't see a large increase in home values because they didn't own homes. Now they're moving into their home prime home, prime home buying years. Now they're buying tons of homes. So, of course, that's, that's going to increase. So, here we go. All right. And now I'm going to, I'm going to get into some other articles, but this is what the interesting conversation is for me. When I read this and then I read this in different articles, I'm like, wow, this is this, is this a thing? So, homes endangered by climate change keep gaining value despite rise in natural disasters. Home values in places that face high risk from climate change have performed roughly the same or better as home values in places that face low climate risk. Okay. And then the green here. It says an indication that climate risk isn't yet priced into the US housing market. That's an incredible statement. I mean, I mean, it's literally telling us that in their opinion, the argument is that because of climate change and natural disasters, that these houses should not be appreciating as fast as the low risk houses. And my question is kind of like, I get that you can classify low risk and high risk, but I mean, can't a natural disaster pretty much happen out? I mean, isn't that the whole, I know several like, I don't know. Maybe when was that really big flood we had in Foley, Alabama? I have probably like 2012-ish or so about 10 years ago. We had it. Well, we had what they call a hundred year flood. And people, their houses were flooding that they were, it was like the safest place you could be, but yet their houses were flooding like two feet in their house. And it was a disaster. And this was out of nowhere. So it's kind of like, even the places that they say are safe, are they really? That's one question. But anyway, back to, back to where I'm going with this, I want to, I want to go a little darker though with this. Well, no, first off areas with high flood risk, see 8% increase in home value. This is the year over year change with the different types of natural disasters. And the blue is low risk and the red is high risk. So with heat, like fire, no, that's not, not fire. There is one for fire. Heat, like the warmer, you know, hotter areas. Um, the low risk only rose 1.9% versus the high risk 7.3. You know, storms, hurricanes, stuff like that. The low risk rose 5.4, the high risk 6.3. Floods, all right, houses that are in flood, you know, bad flood prone areas. Um, they've increased the low risk flood areas increased 5.5 versus the high flood risk rose 8.1. It kind of makes sense because the higher flood risk areas are probably going to be waterfront, which people are willing to pay more for. So that kind of makes exact sense. Fire, fire, decrease, the low risk for fire, uh, increased more than higher risk for fire makes total sense. You're like, I don't want to be around fires. Same thing with drought. Nobody wants to be around a drought. So the low risk for drought increased more. So that this chart kind of makes sense to me in a way, but look at this. All right. Look at this. Is the housing market overvalued by billions due to flood risks? Okay. Now this is going to kind of blow your mind a little bit. Studies say areas vulnerable to floods may result in overvalued housing, uh, market buy up to $237 billion. That house you may, uh, not be, that, that house you have may not be worth what you think it is. And a lot of people are in the same boat, uh, and may need one. Ha, ha, according to a new study, homes in certain areas that are vulnerable to floods are overvalued by 120 billion to 237 billion. Okay. Bloomberg reported. Okay. Uh, Bloomberg reported here. US housing market is overvalued by billions due to ignored flood risks. This is kind of hard to believe. All right. The authors of the report got the numbers by determining how much homes are currently selling for and estimating the yearly, the average yearly losses that homeowners would experience in the event of a flood over the course of 30 years or the typical length of a mortgage. Not surprisingly, the biggest differences in value where the coastal areas like Florida where real estate transactions don't require the disclosure of risk of floods. Bloomberg again said, citing the report. So they, they, uh, they reported this and the consequence of this financial risk and how the housing market responds really, uh, really depend on policy choice on who bears the cost of climate change, climate change. Um, this is coming from Jesse of the environmental defense fund and a lead author of the, the report said, according to Bloomberg, it is really critical that flood risk is better communicated to the property owners. High value properties accounted for the lion's share of the, the, uh, you know, the decrease over the next 30 years and a large portion of overvalued valuation is driven by properties that are not covered by severe flood zones specifically designed by the government. So they're saying that the government isn't zoning the houses correctly. In terms of flood zones, much of the problem lies with the state and federal governments. States have different requirements as to disclosing flood risk or in a cell. That's true. Um, and, but this, this right, but this last statement right here, this last statement, okay. The report by the New Jersey nonprofit climate central said sea levels could fully or partially flood approximately 34 billion worth of real estate on the country's coasts. Okay. That estimate, um, is projected over the life of a 30 year mortgage. The nonprofit use tax, tax assessed data from counties across the country, along with title level properties, uh, boundaries and, and, and, uh, uh, uh, elevation, it predicted the damage will be worse by the end of the century, potentially tripling losses in countries adjoined to the sea. So they're saying that the sea levels could potentially, uh, fully or partially flood approximately 34 billion worth of real estate on the country's coast. I mean, the sea levels are going to come up. That's what I was saying. Like I have to go and see what in the world they're talking about here. Cause this sounds wild because I live on the beach. You tell me the sea level is going to come up and get me. I gotta go see this for myself. Like what's happening? You know, it seems like the sea level has been the same as been for what? How many centuries nuts? But anyway, I thought this was interesting. Number one, the fact that, uh, we're down, uh, what was it? Two over $2 trillion in equity from the peak, which is still so far from, I mean, yes, but no, okay. It's, it's, we were due to have a bite taken out of us and we're, we're due to possibly have another few bites taken out of us. I believe that that is true and possible and probably a reality over the next three to five to six months. But you know, that was kind of like, well, we knew that was going to happen whenever you double the cost of debt. Um, and inflation is through the roof, but this, you know, sea level rising thing, it's a whole nother ball game, ladies and gentlemen. So anyway, let me know your thoughts in the comments about that. I appreciate you guys watching this video. Catch the next video right here. And until I see you again, keep selling.