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5 Signs The Real Estate Market Is Slowing Down

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guys good to see back on the channel

let's talk about something that's very

very important which seems to be top of

mind for most real estate agents and

investors across the country which is is

the market correcting is it slowing down

now that is a good question but here's

another question I want to pose to you

does it matter

right because yes it is in some markets

no it isn't in other markets and really

doesn't matter because those who

understand market cycles and those who

understand how to capitalize on market

cycles can make just as much money if

not more money when the markets falling

apart

then when it's booming so I just got

back from the Northeast on two-week trip

it's kind of why the videos haven't been

coming out as much I flew up there to

meet with all our team leaders I flew

into DC Metro I talked I went to

Manhattan New Jersey Virginia

Connecticut Pennsylvania North Carolina

so I was all up there guys and I met all

these different team leaders and I met

all the different industry leaders up

there and talked to a lot of mega

brokers and agents we're building our

teams all across the country guys as you

know if you want to partner with us and

you're a broker or agent reach out to me

I'll explain to you why so many people

are doing so right now but right here on

the board behind you guys we're gonna

talk about a few things that will show

you or our frontline indicators that

your market could be slowing down and

then I'm going to film a video after

this video that we'll put out later this

week that's gonna kind of tell you what

I would do to prepare for this crash or

correction or whatever you want to call

it slow down the market so that you can

position yourself to do very very well

and position yourself to be profitable

so let's kind of look at this guys so

the first thing we need to look at right

here is number one building permits and

new builds so right now if your market

and you start doing research on your

market if they're number of building

permits is going down and the number of

new builds is going down that's a good

sign that your market may be slowing

down so in the last crash who got hurt

the most so let's think about this if

you owned houses that are fully livable

and you get caught at the top of the

market you can rent them out now a lot

of investors are going to be able to

escape this crash because of Airbnb and

I may throw a video talking about this

because it may cause a massive flood of

Airbnb houses in the marketplace because

flipping houses they're too high price

point can't finance out and be positive

cash flow they're gonna have to do

something rather than foreclosure and

we'll talk about that maybe another

video but what's happening is if you get

stuck with a house that's livable

someone can move in and rent it if you

get stuck with a house that's half built

and all the sudden the market crashes

and to finish these houses out and sell

them you're still selling on the loss

Builders are going to start walking away

so a lot of these builders understand

these cycles and when they start feeling

the heat and the pressure they're gonna

stop building so many houses at top of

market and they're basically in the back

off and building permits are gonna drop

so think about that if your building

permits are pulled up are starting to

drop the number of permits being pulled

in your area this is a good sign that

your market is slowing down now you have

to understand that we have a macro

market micro market and tiny little

micro markets with each within each

micro market so just because some

markets are slowing down doesn't mean

your market may be right number two

number of actives so if you're pulling

up your MLS and most MLS is the color

green stands for number of actors not

all of them but most of them so if all

of a sudden you used to see two to three

actors in these subdivisions that you're

buying in and now it's four to five six

to seven seven to eight what happens is

this is basically what's happening

there's too much inventory in the

marketplace when the markets booming hi

there's a lot of buyers in the

marketplace scooping up that inventory

now there's not enough buyers to buy up

all this inventory and what happens is

these houses sit which means more houses

are coming on behind it because those

original houses are sitting there giving

time for other houses come on the

markets it and if you're seeing a lot of

actives in a certain market guys make

sure your numbers work make sure you're

buying houses that have really good curb

appeal really good layouts because

cutting corners are just throwing a

house on the market that we used to get

away with is no longer going to happen

in most markets especially in that 350k

and up up price point if that makes

sense

days on market same thing with number

baptists guys if days on market and are

increasing these kind of go hand in hand

because the longer update the longer the

days on market that means more houses

are sitting giving more houses a chance

to come on market and sit next to those

other houses so they kind of go hand in

hand but if you're seeing your market go

from where you used to sell houses in

less than 14 days to now it's taking 30

to 45 days this is another good

indicator that your market could be

slowing down

now in the next video guys we'll talk

about how to prepare for this because

it's it's good to get ahead of this and

understand what's going on because a lot

of investors are selling off their

portfolios at the top that's another

sign that we're not talking about in

here a lot of serious experienced

investors if your mentor or people that

you know have been in the business for a

long time or selling off their houses

pulling up cash and hoarding cash and

capitalizing at the top of the market

maybe you should take recognize this and

learn by example of what these

individuals who went to last crash are

doing right they're protecting

themselves from losing all the equity

like they did before in the last crash

price reductions so in my market for

about the past four years I never

reduced a house one time and in Dallas

Texas

I just reduced a house twice for the

very first time literally my career

actually because I came in the business

after the last crash and so this is the

first time I've actually had to double

reduce a price that's a little

concerning right now you shouldn't get

too concerned because if you understand

how to buy houses at the bottom you're

gonna make a lot of money but yes if

you're having to reduce prices or houses

are sitting in your market in they're

reducing prices

it's another signal that your market may

be slowing down so just start asking

around town because that's the last one

I want to talk about community talk

what's the buzz on the street if you're

in a market place where you've never

heard anything except the markets

scorching hot and now a sudden you go to

an REI club and people next to your

saying yeah my house is there sitting or

you talk to someone else and real estate

agent they're like man the markets

slowing down or I'm having to put more

repairs in these houses and I used to

that's a good signal once the buzz

starts happen around town that you're at

that front edge of the market slowly

hitting the top and starting to correct

now I wouldn't be too concerned about

this guys because most of the people

that get killed in real estate crash our

owner-occupant retail buyers people who

live in houses that bought a house at

100% of market value or more and then

the house drop 20% 30% or more in value

and now they lose their job and they

can't make that payment investors who

understand how to do this right by

saving up money in hoarding cash and

working with private lenders are

preparing to buy houses at the bottom

once all the big lenders shut down and

credit lines are called back in they're

gonna make a lot of money so think about

that our building permits being reduced

to new bills cutting back in your

marketplace number of actives are they

increasing days on market are they

increasing our people

prices and are you hearing other

investors and agents in your marketplace

talking about this market could be

slowing down guys if you liked today's

video hit the subscribe button on the

next video what I want to talk about is

a couple ideas to protect yourself

against this coming market correction

and yeah we're gonna dig in I'm gonna

give you my best opinion I hope you like

today's video guys we'll see you next

one have a good day

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