Speaker 1: All right, before we get into the big stories of
Speaker 1: the day, I just have to say I got to
Speaker 1: see one of the coolest things I've ever gotten to
Speaker 1: see in my entire life, and that was this eclipse.
Speaker 1: Oh my goodness, if you didn't get to see it,
Speaker 1: you better not miss another one. I don't even know
Speaker 1: how many years it is until there's this again, but
Speaker 1: I have to tell you this was amazing. And in fact,
Speaker 1: my producer, who's geeking out over this deer has just
Speaker 1: said it's going to be in in twenty sixty one,
Speaker 1: the next time we're going to have a chance to
Speaker 1: see what I just got to see.
Speaker 2: Yesterday.
Speaker 1: I had the just amazing experience of traveling to Kurrville, Texas. Now, Curveville,
Speaker 1: Texas is the same spot that NASA went to basically
Speaker 1: broadcast and record this eclipse. Why because it was going
Speaker 1: to be the total darkness and the longest period of
Speaker 1: darkness anywhere in the United States of America. Now I
Speaker 1: got invited to come to Curveville to experience this, and
Speaker 1: I just have to tell you it was mind blowing
Speaker 1: to be middle of the afternoon, lunchtime with my kids,
Speaker 1: my family and get to watch this with their cousins
Speaker 1: and all of a sudden, I mean, you're now let
Speaker 1: me explain.
Speaker 2: This to you, just because it was so cool.
Speaker 1: Kerrville is like an hour and twenty minutes outside San Antonio.
Speaker 1: When I say it's total darkness at night, it is
Speaker 1: you can't see a foot in front of you when
Speaker 1: you walk away from the house. It is there's zero
Speaker 1: ambient lighting from any city. There is nothing there. There's
Speaker 1: no radio towers you can see, or blinking lights on anything.
Speaker 1: It is total wilderness style darkness. It is incredible. It
Speaker 1: is amazing place by the way, if there's a full
Speaker 1: moon or to see the stars, but to be there
Speaker 1: in the middle of the day with no one else
Speaker 1: around on a ranch and get to watch this was
Speaker 1: just truly phenomenal. It also, and I just say, one
Speaker 1: of the coolest things about this is is is getting
Speaker 1: to watch your kids see it and they'll remember it,
Speaker 1: and you know, it's a core memory and they're going
Speaker 1: to see it and remember it.
Speaker 2: For the rest of their lives.
Speaker 1: And that for me as a dad, getting to watch
Speaker 1: them be so excited getting there a few days early,
Speaker 1: getting in the excitement, the anticipation, and you can explain
Speaker 1: it to them.
Speaker 2: My kid are younger.
Speaker 1: I've got twins or five and a seven year old,
Speaker 1: and you can talk to them about what they're going
Speaker 1: to see, but until they experience it in the middle
Speaker 1: of the afternoon, there was nothing that I could say
Speaker 1: or my wife could say to them that was going
Speaker 1: to give them, I think, preparation for the moment that
Speaker 1: was about to happen. And it was this moment of like,
Speaker 1: are we okay? Is everything okay? Yes, everything is okay.
Speaker 1: Oh my gosh, what's happening? And it also just reminded
Speaker 1: me going back and I can't imagine. We know a
Speaker 1: lot more now, right. We have technology, we have the internet,
Speaker 1: we can we know when these things are going to happen.
Speaker 2: There's fore warning.
Speaker 1: But I if you ever watched eighteen eighty three on
Speaker 1: TV or any older movies about America and the Trail
Speaker 1: of Tears, or traveling or just living out on a
Speaker 1: prairie or in Kerville, where I mean we find I mean,
Speaker 1: for goodness sakes, I'm not exaggerated.
Speaker 2: I say this.
Speaker 1: We go arrowhead hunting when we're in Currville, So this
Speaker 1: is like total weird wilderness. And the thought I kept
Speaker 1: having when I was watching this was Can you imagine
Speaker 1: how much you would be freaking out if this happened
Speaker 1: when you didn't know it was going to happen, Like
Speaker 1: can you imagine working on the farm or traveling by
Speaker 1: horse and buggy or i should say covered canopy wagon
Speaker 1: and all of a sudden, or even you're in a
Speaker 1: big city like in New York City back in the
Speaker 1: early days when this happened, or wherever it would be
Speaker 1: in the country where the path was and all of
Speaker 1: a sudden, to just anywhere in the world where this
Speaker 1: has happened before, without there being warning, without you knowing
Speaker 1: this was a thing, without you knowing this a possibility,
Speaker 1: you would think the world was ending. You would think
Speaker 1: it was like the end of the world for those minutes,
Speaker 1: and then think about, Okay, we didn't just die. Is
Speaker 1: it gonna happen again tomorrow? And is it gonna happen
Speaker 1: for longer? Or let's take it a step further. Is
Speaker 1: this gonna happen and and and it will We won't
Speaker 1: have daylight for the majority of the time. I mean,
Speaker 1: your mind would be racing, wondering what just happened. And
Speaker 1: then I'm not sure if it makes it better or worse,
Speaker 1: and it would only happen once in your lifetime, probably right,
Speaker 1: because you would be sitting there, especially with life expectancy
Speaker 1: back then, it would be one time in your life.
Speaker 1: And I'm wondering if you'd be like, you know, every
Speaker 1: day for the next six weeks, six months, year, two
Speaker 1: years ago.
Speaker 2: Man, I wonder if that's gonna happen again. I wonder
Speaker 2: if that's gonna happen again. What was it? What just happened?
Speaker 2: How did that happen?
Speaker 1: And just the thought process of that was when I
Speaker 1: was watching this clip was truly I think, mind blowing
Speaker 1: because you're prepared and it still blows your mind, rocks
Speaker 1: your world, however you want to describe it. Watching kids
Speaker 1: see it who can't get their head around it yet
Speaker 1: was even more of a magical moment. But going back
Speaker 1: one hundred and fifty years, two hundred years, five hundred years,
Speaker 1: whatever you want number of years back and having this
Speaker 1: happen while you're in the middle of a normal day,
Speaker 1: I cannot imagine you would be probably thinking, all right, well,
Speaker 1: I'm going to heaven.
Speaker 2: This is it.
Speaker 1: This is the end of the world, and it's all
Speaker 1: ending right now in the middle of the afternoon and
Speaker 1: everything's gone to you know what, and I'm done like that,
Speaker 1: There's a part of me that things that had to
Speaker 1: be was like I was talking to die as my
Speaker 1: producer about this, and where he was it wasn't totally total,
Speaker 1: you know, full eclipse, like where I was in Curvily.
Speaker 2: It was in Arkansas.
Speaker 1: But even then, I'm like, dude, can you imagine can
Speaker 1: you imagine one hundred years ago, one hundred and fifty
Speaker 1: two hundre years ago, if that happened in a normal
Speaker 1: day what you would have been thinking? And he said
Speaker 1: the same thing. Couldn't imagine it. So I just want
Speaker 1: to give you that perspective. It also just reminded me
Speaker 1: how amazing it is that we have and if you
Speaker 1: listen to show you know, I am a believer. I
Speaker 1: believe in God, and there was something very spiritual about
Speaker 1: this moment as well, because it's like, what an awesome
Speaker 1: God to be able to do things like this and
Speaker 1: you have these days are normal, normal, But to me
Speaker 1: it's just like a reminder but yeah, hey, guess what,
Speaker 1: I'm still in charge and can do amazing things like this.
Speaker 1: That was my takeaway from it, and That's what I
Speaker 1: also told my kids as well. I was like, this
Speaker 1: is the magic, and I hate using the word magic
Speaker 1: because somebody's going to criticize me for that, so let
Speaker 1: me rephrase it. This is the in my opinion, I think,
Speaker 1: the glory of God's creation and how incredible it is
Speaker 1: what he did to create this world, and it's just
Speaker 1: a glimpse of what he can do as a creator.
Speaker 1: And I love that aspect of this. So I hope
Speaker 1: you got to be a part of it. I hope
Speaker 1: you got to see it, and it was truly amazing.
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Speaker 1: of the big news that day, and it's going to
Speaker 1: deal with the economy. There is some problems with our
Speaker 1: economy right now. Everybody knows that the problem now is
Speaker 1: in Swing state voters. There is even a bigger problem.
Speaker 1: Now we're being told for Joe Biden, take a listen
Speaker 1: to this.
Speaker 3: The poll also finds negative perceptions about the economy do
Speaker 3: remain a problem for the incumbent. Sixty three percent of
Speaker 3: Swing state voters say the US economy is in not
Speaker 3: so good or poor condition, while it's just thirty six
Speaker 3: percent say it's an excellent or good condition.
Speaker 1: You listen to that number. Sixty three percent of Swing
Speaker 1: state voters say that the economy is not so good
Speaker 1: and or poor, only thirty six percent described as excellent
Speaker 1: or good. And we know who those people are. Those
Speaker 1: are hardcore liberal Democrats who refuse to admit that the
Speaker 1: economy is hurting right now, and so therefore what they're
Speaker 1: saying is I'm sticking with my guy. That thirty six
Speaker 1: percent is almost exactly the correlation between those that give
Speaker 1: a good approval rating of Joe Biden, which means the
Speaker 1: president is upside down on this now, Ralph Norman went
Speaker 1: on Fox News and said this about the economy right now,
Speaker 1: as Joe Biden has a new tax plan and he
Speaker 1: says it will have tremendous impact on the economy, saying
Speaker 1: he's deliberately derailing our economy with this new Biden budget
Speaker 1: that they're also saying will kill eight hundred and seventy
Speaker 1: seven thousand new jobs. The Tax Foundation warning this would
Speaker 1: have catastrophic consequences for our economy.
Speaker 2: Listen, kind to assess.
Speaker 4: The president's tax plans.
Speaker 2: He's telling us what another four years would look like.
Speaker 2: What's the impact, Well, it's.
Speaker 5: Going to be a tremendous impact, Marioll at every sectors
Speaker 5: of the economy. You know, in South Carolina, we are
Speaker 5: a growth state. We have businesses movement here. But what
Speaker 5: he's doing is is pretty much derailing this economy. And
Speaker 5: he's done it the three and a half years has
Speaker 5: been in office. You know, in capital gains of twenty
Speaker 5: eight percent, the regulations that he's putting on businesses. We
Speaker 5: can't take it anymore. And so this is a real
Speaker 5: Mike Johnson is going to have a big decision to
Speaker 5: make in the next five to six months. Is he
Speaker 5: going to let the Democrats continue this, but we're going
Speaker 5: to stand up and fight. And I hope we're going
Speaker 5: to fight.
Speaker 1: Well, that's I hope we're going to fight, he says there,
Speaker 1: and he's right about that. Now, let's talk about this
Speaker 1: budget for a second, so that you understand this budget.
Speaker 1: This budget that the President has put forward is a
Speaker 1: seven point two trillion dollar budget. Seven point two trillion
Speaker 1: dollar budget. It is a budget that will break this country.
Speaker 1: The Tax Foundation said Biden's budget cuts wages by one
Speaker 1: point six percent as well. That's another one of their concerns.
Speaker 1: And they also said this about the budget, saying, not
Speaker 1: only does it do that, but they said Biden's budget,
Speaker 1: on top of that one point six percent loss, will
Speaker 1: also have this.
Speaker 2: Catastrophic effect on our economy.
Speaker 1: And that is the fact that with this budget, they
Speaker 1: believe that the majority of Americans will actually be losing
Speaker 1: a massive amount of their income to new at taxes.
Speaker 1: In fact, they say it will reduce the economic output
Speaker 1: by two point two percent. And that's exactly why you
Speaker 1: heard that warning from the House Budget Committee Congressman Ralph
Speaker 1: Norman from South Carolina. He's telling you what this president
Speaker 1: is going to do and what four more years looks like.
Speaker 1: So if you think things are bad now, right, we
Speaker 1: go back to the stat that I just gave you
Speaker 1: a moment ago. Sixty three percent of voters in swing
Speaker 1: states now say that the economy is either in poor
Speaker 1: shape or not so good of shape.
Speaker 2: That is significant, kitt.
Speaker 1: And then you have a congressman coming out saying, look,
Speaker 1: I'm on the budget committee, this is what the President's
Speaker 1: budget is. This will be the biggest increase we've ever
Speaker 1: seen in taxes in this country. It's going to hurt
Speaker 1: the American worker like you've never seen before. Now, look
Speaker 1: the President of United States of America, he keeps coming
Speaker 1: out and lying to you. This is what he had
Speaker 1: to say this last week about the economy, trying to
Speaker 1: Jedi mind trick you that everything's actually fine when it's
Speaker 1: a disaster. You know.
Speaker 2: But mister President, I'm feeling I'm feeling. You know, my
Speaker 2: buck isn't going as far.
Speaker 6: What do you say to those folks about the economy
Speaker 6: and what's going on. Well, I say, we have the
Speaker 6: best economy in the world. We've got to make it better.
Speaker 6: We really do have the best economy in the world.
Speaker 6: Jobs are up, more than they've ever been. We're in
Speaker 6: a situation where the lowest unemployment rate in fifty years
Speaker 6: is maintained.
Speaker 2: We have people who just but people who look I.
Speaker 6: Think we're going to find out that what happened is
Speaker 6: a consequence of the crisis we had on health is
Speaker 6: have a lasting effect to.
Speaker 2: Get people to move in. And we're ready.
Speaker 6: I mean, I think the country's ready to come together
Speaker 6: in a way that I mean not necessarily.
Speaker 2: I'm truly optimistic. Now.
Speaker 1: Our rokers giving easy questions the president. That's what the
Speaker 1: Today's show does, right, They coddle him and they caddle
Speaker 1: him because that's what they do. But Biden, you could
Speaker 1: hear there, his brain just shut down and went to
Speaker 1: coronavirus during this rambling answer defending the economy, saying we
Speaker 1: have the best economy in the world.
Speaker 2: That's a lie, we do not.
Speaker 1: And he's sitting there and then he goes into coronavirus
Speaker 1: and everybody's like, what are you talking about? Now, that's
Speaker 1: the guy who's in charge of this country right now.
Speaker 1: In theory, I think the people behind him at the
Speaker 1: White House are actually running the country. But they can
Speaker 1: convince him, I think of anything so if they say, hey,
Speaker 1: we need a seven point two trillion dollar budget, he
Speaker 1: says okay, because he doesn't know what's actually happening. There
Speaker 1: is a lot going on with our economy right now,
Speaker 1: and it's not just financially. It's also the strain that
Speaker 1: is being put on our economy when it comes to
Speaker 1: legal immigrants coming across the southern border, and it is
Speaker 1: making the prices of not just goods and services skyrocket,
Speaker 1: but mostly where people are feeling it the most is
Speaker 1: in home prices.
Speaker 2: Now.
Speaker 1: A couple of days ago I talked about this warning
Speaker 1: with you that Americans now need more annual salary than
Speaker 1: at any other time in the history of this nation
Speaker 1: to a ford to afford a medium price home.
Speaker 2: How much is it up? A staggering amount?
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Speaker 1: Usa dot Comtom Benferguson sent you. All right, let's get
Speaker 1: back to what I was talking about a second ago
Speaker 1: with home prices and how bad it is in this country.
Speaker 1: Now this came out a couple of days ago. Did
Speaker 1: Americans now need an annual salary of more than one
Speaker 1: hundred and ten thousand dollars to afford a median price home? Now,
Speaker 1: it's not just it's one hundred and ten. I want
Speaker 1: you to understand what it was back in twenty twenty.
Speaker 1: So this is four years ago. It was just seventy
Speaker 1: five thousand. So you're gonna have to make basically forty
Speaker 1: thousand dollars more to afford the same home that you
Speaker 1: could afford in twenty twenty when Donald Trump was leaving office. Now,
Speaker 1: to put into even more perspective, Jerry Willis Fox Business,
Speaker 1: dear friend of mine, gave the report just to give
Speaker 1: you even more perspective. Listen carefully, because then I have
Speaker 1: more information about what this is doing to younger home
Speaker 1: buyers listen, The.
Speaker 4: Average home buyer needs to make over one hundred and
Speaker 4: ten thousand dollars to afford the average home. A new
Speaker 4: bank Rate study showing that the required salary to make
Speaker 4: that purchase has jumped forty six percent in just four years.
Speaker 1: Now, let me just hit pause there and ask you
Speaker 1: this question. How many of you listening have had your
Speaker 1: salary increase by forty six percent over the last four years?
Speaker 1: Forty six percent. Now, I know people have gotten raises, Okay,
Speaker 1: I saw a lot of people get raises. I gave
Speaker 1: raises over the last four years, especially when you're trying
Speaker 1: to get people to work during COVID and things changed.
Speaker 1: But I don't know anybody that got a forty per
Speaker 1: six percent raise on average. Now, there's some that did,
Speaker 1: right like, I'm sure there's some of the other listening
Speaker 1: right now that you've got a promotion or you went
Speaker 1: to work for yourself and things are going well right
Speaker 1: now and you're making forty six percent more than you
Speaker 1: were in twenty twenty. But I'm asking for a whole
Speaker 1: of the country. How many average workers that work nine
Speaker 1: to five jobs, that don't own their own business, that
Speaker 1: are working for someone else got a forty six percent
Speaker 1: raise in the last four years. That doesn't happen for
Speaker 1: the average American. It can happen for maybe one percent,
Speaker 1: two percent, three percent. I don't know what the number is,
Speaker 1: but it's not the majority of Americans. And you would
Speaker 1: need ninety percent of Americans to average a forty six
Speaker 1: percent increase in their salary over the last four years.
Speaker 1: Now here's the other part that you need to understand.
Speaker 1: If you look at the average salary to ford a
Speaker 1: medium home in this country, back in twenty twenty, it
Speaker 1: was seventy five, nine hundred and thirty nine dollars. That's
Speaker 1: what you need to make a year to be a homeowner,
Speaker 1: and a median priced home in January of this year,
Speaker 1: you need one hundred and ten thousand, eight hundred and
Speaker 1: seventy one dollars to afford the same home. Now, let's
Speaker 1: look at home prices. Okay, so not only do you
Speaker 1: need to make forty six percent more to move into
Speaker 1: that house, but the average home price is up now
Speaker 1: forty two percent. So what is a median This is
Speaker 1: middle of the road home. This is kind of home
Speaker 1: ownership for you and a family, maybe one kid, possibly
Speaker 1: two all right, like is your is you're growing? This
Speaker 1: is the middle of the road medium priced home. Do
Speaker 1: you know what the number is now in this country?
Speaker 1: It will now cost you over four hundred thousand dollars
Speaker 1: to own that home. Now that used to be a
Speaker 1: dream home in the past, not anymore. That's medium. So
Speaker 1: so it costs now more than ever just to get
Speaker 1: an average house. And it cost you a salary that
Speaker 1: had to got forty six percent since twenty twenty to
Speaker 1: get that average house. Keep listening to what Jerry Willis says.
Speaker 4: Home buyers only needed to make seventy six thousand back
Speaker 4: in twenty twenty, and the issue widespread. You now need
Speaker 4: a six figure salary to buy the average home in
Speaker 4: twenty three states, including the District of Columbia. Four years ago,
Speaker 4: that number was just six mortgage rates.
Speaker 2: Of course, better thay, it's just stop there and dissect that.
Speaker 1: In January of twenty twenty, there were only six states
Speaker 1: in America where you need a six figure salary meaning
Speaker 1: one hundred thousand and one dollars, okay, to afford a
Speaker 1: medium home. So the majority of America, Okay, look at
Speaker 1: the map. Only six states did you have to make
Speaker 1: one hundred thousand and one dollars or more to afford
Speaker 1: a medium home price. That number has now skyrocketed from
Speaker 1: just six states to twenty three states in four years.
Speaker 1: That is catastrophic to our economy because what that means
Speaker 1: is is people are having to pour more money than
Speaker 1: ever before into the dream of homeownership, and that means
Speaker 1: they have less money for other things like goods and
Speaker 1: services and their kids in private school or whatever it
Speaker 1: may be, a car, as all the other prices of
Speaker 1: goods and services have also skyrocketed.
Speaker 2: That's not all.
Speaker 4: Mortgage rates, of course, have played a small role in
Speaker 4: the bump, but home prices have buy and large kept
Speaker 4: pace with a needed salary to buy them. They average
Speaker 4: home up forty two percent, sitting at four hundred and
Speaker 4: twelve thousand dollars.
Speaker 2: Let me just put that into perspective.
Speaker 1: I mentioned a moment ago that it cost you four
Speaker 1: hundred and twelve two hundred and twenty seven dollars in
Speaker 1: February of twenty twenty four to afford a median home.
Speaker 1: Right now, do you know what that number was for
Speaker 1: the same exact damn home in January of twenty twenty
Speaker 1: two hundred ninety thousand, two hundred and sixty four dollars.
Speaker 1: Two hundred and ninety thousand dollars is what it cost
Speaker 1: you for the same home that would cost you today
Speaker 1: to buy for four hundred and twelve thousand change. That
Speaker 1: is a forty two percent increase. That is unsustainable. You
Speaker 1: cannot continue to have houses go up by forty two
Speaker 1: percent over a four year period indefinitely. And there's no
Speaker 1: way in hell that wages can keep up with that.
Speaker 1: Where you used to have to make seventy six thousand
Speaker 1: at for that home and now you've got to make
Speaker 1: one hundred and ten thousand plus just to get into
Speaker 1: an average home.
Speaker 2: That's not all. It gets worse now.
Speaker 4: Even though the housing market may be pricing people out,
Speaker 4: people shouldn't be too quick to think that renting is
Speaker 4: the solution. Since President Biden took office, rents are up
Speaker 4: nearly twenty one percent.
Speaker 1: So twenty one percent rents are up because you may
Speaker 1: say yourself, well, Ben, I'm just going to sit on
Speaker 1: the sidelines, right. I had a good friend they're renting
Speaker 1: the other day. They're renting for years, and they had
Speaker 1: a good deal on the rent. They liked the house,
Speaker 1: they'd made it their own. They probably should have bought
Speaker 1: the house or bought another house when interest rates were low,
Speaker 1: but they didn't, right because the rent was a good
Speaker 1: deal and they liked where they live and it felt
Speaker 1: like home.
Speaker 2: They got to.
Speaker 1: Notice February saying hey, you got sixty days to move out,
Speaker 1: and what they found was is that they now can't
Speaker 1: even afford the same house that they were renting because
Speaker 1: it costs so much money because rent rates have skyrocketed
Speaker 1: since they signed their lease with someone who basically figured
Speaker 1: it out. Like, that's what this really boils down to.
Speaker 1: They figured it out. The guy who has a house
Speaker 1: is going to do one of two things. Either he's
Speaker 1: going to raise the rent a lot, which I don't
Speaker 1: think that's what he's actually doing. I think he's saying,
Speaker 1: I'm gonna cash out because I feel like there's a
Speaker 1: bubble coming, Okay, Like I think that's what they're realizing,
Speaker 1: that there's a bubble.
Speaker 2: I want my money.
Speaker 1: If you've got a house, it's two hundred thousand dollars
Speaker 1: four years ago, and you can cash out now and
Speaker 1: you can put four hundred plus thousand in your pocket,
Speaker 1: you may say, let's do that and I'll get out
Speaker 1: of the rental game for a little bit and cash
Speaker 1: out for retirement. Just take the four hundred thousand and
Speaker 1: invest it because interest rates are up and you're now
Speaker 1: getting a lot more for that four hundred thousand dollars.
Speaker 1: If you invest it in basic money markets, you don't
Speaker 1: even have to take big risks. In fact, you could
Speaker 1: take extremely low risks. And this is hour we are
Speaker 1: in this country because of Bidenomics. You can also look
Speaker 1: to trends when it comes to the economy, and one
Speaker 1: trend that I want you to know about is where
Speaker 1: we are with gold prices. Gold right now, as I'm
Speaker 1: recording this is up almost two percent alone today at
Speaker 1: two thousand, two hundred ninety seven dollars and fifty cents
Speaker 1: an ounce. Why is gold up from I'll give example,
Speaker 1: if you go back to the beginning of October, it
Speaker 1: was about eighteen hundred dollars an ounce. Why to go
Speaker 1: from eighteen hundred to two thousand, two hundred and ninety
Speaker 1: seven hours One simple reason, because people are afraid of
Speaker 1: what's happening right now in this country. They're afraid of
Speaker 1: what's happening with our economy. They're afraid about what's happening
Speaker 1: with all of these basic issues that I just described. Now,
Speaker 1: here's another headline for you that I want to give you,
Speaker 1: And this is a little bit of a contradiction of
Speaker 1: the last headline that I had for you, but it's
Speaker 1: one that shows you how quick things even change. And
Speaker 1: I'm not saying for the better, I'm saying for the worse.
Speaker 1: Home buyers.
Speaker 2: Is the headline from Yahoo Finance. Home buyers need to.
Speaker 1: Earn eighty percent more than they did in twenty twenty
Speaker 1: to afford a home in today's market. So they're not
Speaker 1: referring to the medium home price anymore. They're saying just overall.
Speaker 1: Yahoo Finance and Wealth putting this out, saying, as US
Speaker 1: housing prices rise, is home ownership still even achievable? That
Speaker 1: is Yahoo Finance. Listen to what they said on their
Speaker 1: online show.
Speaker 7: Well, for many Americans, home ownership is seeming more and
Speaker 7: more out of reach. According to new analysis from Zillo,
Speaker 7: home prices have jumped forty two percent since twenty twenty,
Speaker 7: but the average person needs to earn eighty percent more
Speaker 7: than they did at that time in order to comfortably
Speaker 7: afford a home in today's market. So why are homes
Speaker 7: becoming less and less affordable. That's the big question here
Speaker 7: with the latest We've got our very own Molly moorehead Molly,
Speaker 7: what's going on here? And why is it so hard
Speaker 7: to be able to afford a home right now?
Speaker 1: Hey, Brad.
Speaker 8: So, in addition to that increase in home prices, which
Speaker 8: forty two percent is not nothing, inflation has been on
Speaker 8: the rise since the pandemic, and interest rates have followed,
Speaker 8: and so that means the cost of financing a home
Speaker 8: is so much more than it was four years ago.
Speaker 8: If you look at the average rate on a thirty
Speaker 8: year loan, in March of twenty twenty, it was three
Speaker 8: and a half percent. Today it's around six point eight,
Speaker 8: six point nine, And so it's this double whammie of
Speaker 8: higher home prices and higher financing costs.
Speaker 7: So what advice do you have for prospective home buyers
Speaker 7: out there right now?
Speaker 8: Yeah, well it's not easy. This is a tough market.
Speaker 8: But a couple of things you can do. Our number
Speaker 8: one watch the Fed. A lot of economists market watchers
Speaker 8: think that we still have three interest rate cuts potentially
Speaker 8: coming this year from the Federal Reserve and that will
Speaker 8: help the rate. You qualify for on if you apply
Speaker 8: for mortgage, and so if you're in a position where
Speaker 8: you can time your home purchase a little bit, you
Speaker 8: don't have to buy right now, then watch what happens
Speaker 8: more broadly with interest rates, because that can help you.
Speaker 8: Second would be negotiate agent commissions. This was not really
Speaker 8: in play until very recently with this settlement with the
Speaker 8: Realtors Association. There has long time been a kind of
Speaker 8: de facto six percent commission, but now all of that
Speaker 8: is negotiable. So go into your home purchase ready to
Speaker 8: negotiate your what your agent's going to get paid.
Speaker 1: So this is their advice. Yes, home pricing is out
Speaker 1: of control. You may hope, and you can hope that
Speaker 1: maybe prices come down. Okay, that's a possibility, is that
Speaker 1: home prices might might come down.
Speaker 2: Okay, just might come down.
Speaker 1: They're probably not, but they might, and you shouldn't negotiate
Speaker 1: with your real term what their commission is, and that
Speaker 1: might help you. Now you notice at the beginning of
Speaker 1: this they said, not only our home price up forty
Speaker 1: two percent since twenty twenty, They say that's because both
Speaker 1: rates and borrowing costs of skyrocket. Notice they don't blame
Speaker 1: the Biden administration's policies for this. They just act like, Oh,
Speaker 1: this is just some random thing that's happening, And I
Speaker 1: get that this is yahoo. They're liberal, all right. But
Speaker 1: what they did tell you the truth on was and
Speaker 1: they didn't go with medium price homes.
Speaker 2: They just were giving you the overall average.
Speaker 1: You need to earn eighty percent more to comfortably afford
Speaker 1: a home in today's market. Now, why they say comfortably
Speaker 1: afford If you want to be maxed out in your budget,
Speaker 1: it may be less.
Speaker 2: But if you want to.
Speaker 1: Enjoy and retire and save for retirement and have a
Speaker 1: balanced budget in your home, you literally need to earn
Speaker 1: eighty percent more to comfortably afford a home in this
Speaker 1: market than you did in twenty twenty. That is what
Speaker 1: this election is going to end up being about, my opinion.
Speaker 1: When media and home income have only risen twenty three
Speaker 1: percent over the last four years, leaving many people without
Speaker 1: the running for home ownership, they're saying, hey, most Americans
Speaker 1: aren't even a candidate now for home ownership, and the
Speaker 1: ones that are in the homes they're in right now,
Speaker 1: they're not leaving because the interest rates are so low.
Speaker 1: They couldn't afford to move even into maybe the same
Speaker 1: house they have right now if they went and bought
Speaker 1: the same exact home across the street because prices are
Speaker 1: out of control because of inflation and interest rates. In
Speaker 1: twenty twenty, a household earning fifty nine thousand dollars a
Speaker 1: year could afford a typical home price at about two
Speaker 1: hundred and forty grand. At the time, the income level
Speaker 1: was less than the US medium income of sixty six thousand,
Speaker 1: meaning more than half of American households had sufficient cash
Speaker 1: flow to not only purchase a home, but also to
Speaker 1: plan for retirement and save money. In other words, they
Speaker 1: were able to purch a home without overextending their budgets
Speaker 1: and being locked in a miserable cycle of hell every
Speaker 1: month coming up short or having to cut things. Today,
Speaker 1: those same people, just four years later that are shopping
Speaker 1: for a home, they need their income to go from
Speaker 1: fifty nine thousand a year to one hundred and six
Speaker 1: thousand dollars to afford the same exact home. Because the
Speaker 1: home price has gone, as I mentioned earlier, from two
Speaker 1: hundred and forty thousand to three hundred and forty two thousand.
Speaker 1: That means You've got to earn forty seven thousand dollars
Speaker 1: more than you needed to earn in twenty twenty to
Speaker 1: afford the same exact house, and that's well above today's
Speaker 1: average income of eighty one thousand dollars. Now, Zillo is
Speaker 1: more realistic than the other numbers I was giving you earlier.
Speaker 1: Zillo's analysis is just saying, hey, this is the truth.
Speaker 1: This is what's going to happen. And a point of
Speaker 1: concern is also this that the bank's saying is look barely.
Speaker 1: A handful of major metro areas evaluated were affordable for
Speaker 1: the majority of the people living there at the median income.
Speaker 1: The real estate firm defines affordability as spending no more
Speaker 1: than thirty percent of your income after offering a ten
Speaker 1: percent down payment, which, by the way, most people now
Speaker 1: don't have the ten percent down payment because that money
Speaker 1: has disappeared because the cost of goods and services and inflation. Now.
Speaker 1: A senior analyst at Zillo said it this way, incomes
Speaker 1: needed to purchase a home are just much much higher
Speaker 1: than the typical household income. The increase in cost is
Speaker 1: pricing out many families that will never get on the
Speaker 1: housing ladder and will never be able to start even
Speaker 1: in their starter home because of what we just described.
Speaker 1: And the fact is today's typical buyers would be facing
Speaker 1: a monthly mortgage payment that is ninety six percent higher
Speaker 1: compaired to twenty twenty levels, so virtually double what you
Speaker 1: were going to have to spend back then for the
Speaker 1: same home. So there is the government numbers and I
Speaker 1: gave you those earlier, and then there's the reality. And
Speaker 1: Zillo is saying, you need twice as much money now
Speaker 1: for a payment every month than you did in twenty
Speaker 1: twenty in four years. So that's twenty five percent increase
Speaker 1: a year. That's an average payment, by the way of
Speaker 1: two hundred dollars a month with a ten percent down
Speaker 1: payment just to get into what you would describe as
Speaker 1: basically a starter home.
Speaker 8: Now.
Speaker 1: The main difference they say is yes, mortgage rates ended
Speaker 1: January of twenty twenty at three and a half percent,
Speaker 1: a little lower if you have good credit. So far
Speaker 1: this year the rates have hovered between six and a
Speaker 1: half to above seven, depending on your credit, but no
Speaker 1: less than six and a half. And this uptick has
Speaker 1: made not only the prices of goods and services go up,
Speaker 1: but if it is put, would be buyers in a
Speaker 1: spot where now they're basically saying, I can't afford it,
Speaker 1: so now I'm.
Speaker 2: Gonna rent, all right.
Speaker 1: As always, please share our podcasts anywhere you are on
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Speaker 1: and we'll see you back here tomorrow