 Woo! Now, would you look at this monthly mortgage payment from 1989 to 2023? You see this chart? You see how this sucker shoots to the moon over here in 2021, 22, 23? It looks crazy, doesn't it? And this can be a scary thing if you look at it the way that we're looking at it. But today, I want to actually give you a different perspective on this so you can see it for what it really is in reality outside of the headlines that you read that's trying to scare you half the death and create anxiety so that you click on the article to try to figure out what's going on. Then you have to dissect all the data and try to figure out what's real and what are they just telling me to try to hype up this, that, or the other. There's so much stuff out there. I mean, there's guys that I actually really look up to on YouTube that put out videos about housing crash. And all they talk about is negative year-over-year prices. They don't talk about the fact that prices are up over the last 90 days. And not only that, we're up 9% on the year price-wise. This is a crazy world we're living in, ladies and gentlemen. But I touched on this affordability topic in yesterday's video, the Elon Musk video talking about how home prices were going to come crumbling down. God doesn't even own a house. But nevertheless, I digress there. And I want to go a little deeper today on this housing affordability issue just so you can see it from my point of view. And I completely welcome all comments of any kind. I had a comment yesterday. A guy said, home prices are up $400,000 where I live in California and, you know, incomes haven't went up in 30 years. Are you kidding me? It was just like, where is this stuff coming from? But let's dive in here. As we look at this chart, we think, man, this is really out of whack. Even compared to 2008 around that time, we're like twice as high as we were back then. And you can see in 1989, we were around $600, $700 per month on a monthly mortgage payment. So if you take this chart and you actually break it down and factor in inflation, okay, adjusted for inflation, this is what it looks like. So let me go back to the last one. So you have a visual of what that one looked like. And then if you adjust this same chart for inflation, this is what it looks like. And you can see in the first one, like I said, we're around $600, $700 a month. If you adjust that for inflation, we're looking at $16 to $1,700 a month. So when you look at this and you look at it just, you know, with just a, you know, perspective of, you know, adjusted inflation, look at where we are now. Okay. Are we on the high side? Sure, we are. That's about to change though. We're going to get into that. But we're not too far off from where we were in the early 2000s in the 90s. And we're definitely not too far off from where we were back in 1989. We're not too far off. Now, the problem is down here, 2007, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, it started to kind of creep up again. Look, guys, we are spoiled, okay? Because we're used to this right here. When in fact, you know, the whole time before, say 2003, you know, we were always in this range right here, okay? We were always in this range. Now, we go back to the other chart and realize in 2003, it was a lot different scenario. But when you factor in inflation, we were pretty close to where we are now. It's not going to take much to get us back around where we have been historically. And when you look at mortgage payments as a percentage of median household income on this chart, you can see we are lower than 1989. And we can see the same thing here. Here's where, you know, the percentage, this is percentage of household income that goes towards mortgage payments. And you can see in the 90s, even in the early 2000s, up to the 2003 mark, when things got crazy, right? We're not too far off from that level. Now, again, 2008, 9, 10, 11, all that. We are spoiled. We were spoiled right there. We didn't know how good we had it. We're just getting back to normal here. We're just getting back to normal. So when I look at this here, and I see that the this is average median. This is the mortgage payment on a four week rolling average of median asking price. And we see that it was 2651 at a 6.79% interest rate. So and that's a lot higher than 2021 22. You can see in 22, that's when interest rates just went crazy. So I went to a mortgage calculator and I said, okay, for this 2651, yet that 6.79% interest, what's that loan amount? Well, it's $407,000. I'll zoom in on this. You guys can see a little better. And I said, okay. So, you know, we're expecting inflation to continue to be tamed. It's not dropping like everyone thought it would do. As fast as it everybody thought it would do, but it is dropping. And it's going to continue to do better and better, especially compared to last year, which was crazy. But that's going to affect 30 year fixed mortgages. So let's say we get it down a point from $6.79 to $5. That brings the payment down to $2,385, which is about a $280 difference there. So if we go back to our charts here, and we look at this chart right here, this adjusted inflated mortgage payment. Now, it's inflated to today's value of $1. So if you drop $280 from this, from where we are right here at the end, we're right there where we were in the 90s, in the early 2000s, before everything got crazy. We're definitely lower than we were back in 1989. Now, there's another factor here when it comes to median household income. So when we're looking at mortgage payments as a percentage of median household income, okay, well, let's talk about median household income. What's happening there? Because if mortgage rates dwindle down a little bit and median household income increases, not only does the mortgage rate reduce the mortgage payment that helps affordability, but if median household incomes increase, that also helps it. So let's go there. If we look here, median household income in the 21st century, this is starting from 2000, and it runs to January 2023, you see we have just increased. And especially here in the more recent years, median household income has increased. And we have that little dip right there during the shutdown and the pandemic and all that stuff. And it's just increased ever since, and it's going to continue to increase. Will it increase this fast? I don't expect that to happen, but it will continue to increase. There's a lot of projections out there of it increasing 5% to 10% over the next year, and so on and so forth. So household incomes are going to continue to increase as well as mortgage rates come down. The only factor that I'm not real happy about is the fact that home prices are going to continue to go up because of the supply and demand issue. There's so much demand and there's so little supply. What are we going to do? And so that's really the thing that's really going to throw this whole thing completely out of whack, and something's got to give there. However, when you look at that situation, you think, okay, home prices got to come down. No, if home prices will just level out, which there's too much demand, there's not enough supply. But if we could get to a place where we could balance that out, where home prices will just level out, which will be a really tough task to do to tackle, then we could be in a really good place when it comes to affordability. But we're not too far off, ladies and gentlemen, from the 90s, early 2000s, we're actually getting to where we're almost lower than we were in the late 80s in terms of affordability for housing. On the jobs market, I was watching the news last night, we literally have for every three unemployed people in my county, we have for every one unemployed person in my county, we have three job openings, three job openings for every single unemployed person that's claiming unemployment. It's crazy out there. People are complaining there's going to be all these layoffs. There's plenty of jobs, ladies and gentlemen. People are talking about there's going to be a lot of foreclosures. No, there's not. People's income are going up. Most everybody's sitting on, you know, 3%, 4%, 5% interest rates, they're not going anywhere, and they have so much equity built up in their home. If they were to get in trouble, they would just sell the property and make a bunch of money. So we're not going to get into trouble there. So, listen, I'm just showing you data. I'm just giving you the nuts and bolts here, real numbers. A lot of people comment or the people that comment on my videos and, you know, talking about doom and gloom. Give me some data behind what you're saying. Don't just say stuff, oh, we'll wait till unemployment really crashes and burns. It's going to be hard for people to buy a house then. Good luck with that. I mean, I'm out here buying houses left and right. So anyway, I digress on all that. I just wanted to give you guys a clear picture here. Give you some graphs, gives you some visuals that you can really see from a different perspective A and B, form your own opinions on this without just reading what's on an article or in a newspaper or from some keyboard warrior that's out there or even watching a video of somebody on YouTube that you really luck up to that's leaving out incredible details like prices going up over the last 90 days. So anyway, wanted to share this with you. I hope this helps. I hope it gives you a different perspective in your business. I hope you can go out there and talk to your clients with a little bit more, you know, wealth of knowledge on this subject and do your own research. Dig in there and pull up your local, you know, your local information and really dig in and see what you can find out. But anyway, I'll see you guys on the next video. Take care. Love you so much. We'll talk to you soon.