Name: So Massive Housing CRASH is AHEAD! What Should You Do Now
Uploaded: 2022-08-03T18:21:55.000Z
Duration: 10 min 55 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

The last couple of weeks has been catastrophic for the market.

Adverbs of manner

The stock market has crashed as if it's about to reach the bottom.

I mean all the gains that it made during the pandemic literally vanished.

Things went back to what it was to pre-pandemic for many tech companies.

And if you look at crypto, things are so bad that some coins literally went bankrupt.

It's a bit sad that people lost their entire investments overnight.

I mean, it's not like the stock plummeted by 20 or 30 percent and it could potentially

In less than a week, it went from around 80 bucks to literally $0.

People believed in this coin and threw their savings and it took a 0.5 increase in interest

Even Tether, the most stable coin that's tied to the US dollar for a moment fell by 5 percent.

Ideally, it shouldn't since a single usdt should be worth a dollar.

Unlike stocks or crypto, the housing market is much more stable, it doesn't crash overnight,

although the 2008 crash proved otherwise.

Since then, house prices didn't rise much, that's why the unusual rise that happened

in the last 2 years worried people that we might be heading into another crash.

Home prices rose 18.8% in 2021, according to the US National Home Price Index, the biggest

increase in 34 years of data and substantially ahead of the 2020s 10.4% gain.

So the question that many have in their minds is, should I buy a house now or wait until

the end of the year? or they will finally collapse?

We will answer these questions and many more but before we do that, lets tell you first

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Since the world has embraced globalism, every country tried to specialize in what is good

and import what it cant effectively produce.

That's how the standard of life across the world improved so dramatically since the greatest

But that created a lot of competition for companies since they had to compete not just

with local companies but with the entire world.

So companies like Toyota came up with just-in-time production methods where the company wouldn't

keep excessive inventory and would order only when its need by building efficient supply

It wouldn't waste any excessive inventory and wouldn't waste time waiting for them.

That's how Toyota became the world's largest car manufacturer by producing over 10 million

This model became so efficient that the entire world started using it.

But not everything is sunshine and rainbows.

The problem with this system is that, what if supply chains get disrupted?

That's when real problems will start since disrupting a single part in a long chain is

Back then, most people didn't imagine that happening.

Why would anyone deliberately stop making money?

So we developed ports across the world, with international standards to improve efficiency.

Wealthier countries exported the productions of most of what they consumed to countries

with cheaper labor until 2020 when a mysterious virus shut the world down.

No one expected that the consequences will be so severe except for a small minority.

China first isolated Wuhan but then the world realized that it was too late to isolate just

So the rest of the China and the world went into a pandemic, closing down factories, and

the efficient supply chain we have built over the last few decades was suddenly useless.

This methodology has led manufacturers to keep just a bare-bones inventory of raw materials

and components, which left them high and dry when the pandemic temporarily shut down their

supply chains and threw the balance between supply and demand into disarray.

The question is - how is that related to the housing market?

The US doesn't just import parts to build cars and planes but also houses.

The U.S. is dependent on imported building materials to build homes.

Up to 40% of a typical American home is made of imported materials.

Now, many of those imported materials, including insulation, lumber, cement, steel, and electrical

equipment are in shortage since the supply chains that we have built are no longer as

efficient as they have been before the pandemic.

On top of that, take the conflict in Ukraine and you have a recipe for a disaster.

It's not just about raising oil prices but there is also a shortage of materials such

as steel or nickels because of this conflict.

The world today runs on capitalism which means demand and supply determine the price in the

market which means that if there aren't enough materials to build more homes, prices will

And as long as there is a shortage of homes in the market, they will not fall.

The supply of homes was just returning to pre-pandemic levels but now the situation

is different, no one knows when Russia's invasion of Ukraine will end and how.

until there is so much uncertainty, prices will keep rising.

But you may wonder, why isn't there a bigger infrastructure to build homes?

Well, after the 2008 crash, many home builders went bankrupt.

In 2008, house prices fell by over 16 percent.

How do you survive when you cant make a profit on the houses you are building?

After the crash, the real estate business became unattractive.

Most of the companies that were bankrupted didn't return back to business.

Only in 2013, did house prices recover and began to grow, but the growth was slow and

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So Massive Housing CRASH is AHEAD! What Should You Do Now

literally

entire

pandemic

matter