1 00:00:03,760 --> 00:00:09,280 Speaker 1: It's that time time, time, luck and load. 2 00:00:11,119 --> 00:00:23,440 Speaker 2: So Michael Verie Show is on the air. Angelo writes. 3 00:00:23,480 --> 00:00:27,000 Speaker 2: The USA Women's Flag football team won their first game 4 00:00:27,120 --> 00:00:31,360 Speaker 2: yesterday by beating Canada in Changdu, China. One of the 5 00:00:31,400 --> 00:00:34,880 Speaker 2: star players is Ashley Clam k l A M. She's 6 00:00:34,960 --> 00:00:37,800 Speaker 2: also been instrumental in getting this new sport publicized and 7 00:00:37,880 --> 00:00:41,680 Speaker 2: is originally from Orangefield Slash. Beaumont thought you might be 8 00:00:41,760 --> 00:00:45,680 Speaker 2: interested in checking this out. Had any corn dogs lately? 9 00:00:47,520 --> 00:00:49,640 Speaker 2: Was that over the corn dogs? Or? Go check her out? 10 00:00:49,920 --> 00:00:54,080 Speaker 2: Oh she's cute, She's real, real cute. She's Sophie Cunningham cute. 11 00:00:54,080 --> 00:01:01,040 Speaker 2: Now can she sing? USA Women's Flag Football team? How 12 00:01:01,080 --> 00:01:10,880 Speaker 2: does that work? Look? Sorry, I missed your flag. I'm 13 00:01:10,920 --> 00:01:16,520 Speaker 2: down already, dude, stop tackling me. Oh no, sweetie, you're 14 00:01:16,560 --> 00:01:19,960 Speaker 2: not down. I think I missed your flag. Let me 15 00:01:20,680 --> 00:01:23,160 Speaker 2: let me make sure I get your flag so you 16 00:01:23,280 --> 00:01:28,560 Speaker 2: don't score a touch down. We wouldn't want that, your 17 00:01:28,640 --> 00:01:32,920 Speaker 2: cute little self. Howard Frampton, Peter's brother, writes, Lena had 18 00:01:32,920 --> 00:01:35,120 Speaker 2: allgo is a wanna be mister Smith. He's got a 19 00:01:35,120 --> 00:01:38,160 Speaker 2: pretty good point here. I think in her own mind, 20 00:01:38,200 --> 00:01:41,760 Speaker 2: Lena had algo thinks she's just like mister Smith. Remember 21 00:01:41,760 --> 00:01:45,440 Speaker 2: the movie Mister Smith goes to Washington and special kind 22 00:01:45,480 --> 00:01:48,559 Speaker 2: of person gets elected, in this case, an uncorrupted person. 23 00:01:49,080 --> 00:01:52,840 Speaker 2: He's a little nervous like her. He gives a movie speech, 24 00:01:53,160 --> 00:01:55,160 Speaker 2: and she doesn't give a movie speech, but in her mind. 25 00:01:56,080 --> 00:01:59,080 Speaker 2: He invites children into the chamber to persuade representatives to 26 00:01:59,160 --> 00:02:01,800 Speaker 2: do the right thing. Okay, there's something to be said 27 00:02:01,800 --> 00:02:04,520 Speaker 2: for that. There's something to be said for that. We're 28 00:02:04,520 --> 00:02:08,520 Speaker 2: gonna do probably ten bonus episodes for this weekend, and 29 00:02:08,600 --> 00:02:12,480 Speaker 2: I'm not even kidding you because I have so much 30 00:02:12,919 --> 00:02:19,799 Speaker 2: content here. Next up is from Hook, the radio name 31 00:02:19,840 --> 00:02:24,920 Speaker 2: for those of you who remember the Stevens in Pruitt show. 32 00:02:24,960 --> 00:02:28,639 Speaker 2: Oh girlos here too, everybody's here. Our payroll is gonna 33 00:02:28,639 --> 00:02:34,040 Speaker 2: be high this month. What's Obert on Stevens and Prewitt? 34 00:02:34,480 --> 00:02:38,000 Speaker 2: So yeah, so if you remember, there's something going wrong 35 00:02:38,040 --> 00:02:40,640 Speaker 2: in there. Our chief engineer is in Ruins studio. This 36 00:02:40,720 --> 00:02:43,760 Speaker 2: is not a good sign, and his hands are on 37 00:02:43,800 --> 00:02:48,880 Speaker 2: his hip. Oh okay, is this a live radio issue? Okay, 38 00:02:49,520 --> 00:02:54,440 Speaker 2: don't bother me too many? Is that true? Oh okay, 39 00:02:55,480 --> 00:03:01,480 Speaker 2: you're confusing me. So our chief engineer brought to my attention. 40 00:03:01,520 --> 00:03:06,360 Speaker 2: I don't know if y'all followed this Canadian wildfire issue. Well, 41 00:03:07,240 --> 00:03:13,040 Speaker 2: the wildfires in Canada are belching so much smoke, so dangerous. 42 00:03:13,040 --> 00:03:14,840 Speaker 2: I don't know if they have it under control yet. 43 00:03:14,880 --> 00:03:18,440 Speaker 2: Because this was from a couple of days ago. Nova 44 00:03:18,480 --> 00:03:23,560 Speaker 2: Scotia has implemented restrictions on travel and activities in wooded areas. 45 00:03:25,040 --> 00:03:32,680 Speaker 2: These restrictions, effective August fifth, prohibit activities like hiking, camping, fishing, 46 00:03:32,800 --> 00:03:35,440 Speaker 2: and the use of vehicles in the woods. And they 47 00:03:35,520 --> 00:03:40,800 Speaker 2: also restrict access to trails. They said, you cannot go 48 00:03:40,960 --> 00:03:46,320 Speaker 2: out and hike, you cannot walk on the trails. Wait 49 00:03:46,360 --> 00:03:51,960 Speaker 2: what yeah, can't walk on the trails. You you'll burn 50 00:03:52,000 --> 00:03:57,280 Speaker 2: the whole country down. No, this is like locking everything 51 00:03:57,360 --> 00:04:02,960 Speaker 2: up at CBS because a handful of pepeople are are thieves. Thieves. No, 52 00:04:03,360 --> 00:04:06,080 Speaker 2: we're not pretty. And then when they were challenged on 53 00:04:06,120 --> 00:04:08,920 Speaker 2: it and became the laughing stock of the world, they 54 00:04:08,960 --> 00:04:11,640 Speaker 2: decided it was to keep the people safe. So first 55 00:04:11,720 --> 00:04:14,200 Speaker 2: it was y'all going to burn the forest down. Then 56 00:04:14,240 --> 00:04:16,719 Speaker 2: it was no, no, no, it's for your own safety. 57 00:04:16,839 --> 00:04:22,360 Speaker 2: You might hurt your ankle. Liberals love lockdowns. Never forget 58 00:04:22,360 --> 00:04:25,640 Speaker 2: that they love them because remember, it's always been about control. 59 00:04:26,640 --> 00:04:30,160 Speaker 2: COVID wasn't about a virus. It's about control. You know, 60 00:04:30,200 --> 00:04:35,479 Speaker 2: there's a mosquito born virus in China right now, and 61 00:04:37,680 --> 00:04:43,680 Speaker 2: it's not passed the way say coronavirus was by coughing 62 00:04:43,720 --> 00:04:47,240 Speaker 2: on someone or sticking your tongue down their throat or 63 00:04:47,400 --> 00:04:51,080 Speaker 2: you know, some other orifice, and it's not any it's 64 00:04:51,080 --> 00:04:54,640 Speaker 2: a mosquito. Mosquito bites me, mosquito bites you. You got it. 65 00:04:55,680 --> 00:04:59,720 Speaker 2: And so in China, if you go to the hospital 66 00:04:59,800 --> 00:05:04,360 Speaker 2: with this condition, they lock you in. Well, the only 67 00:05:04,400 --> 00:05:06,200 Speaker 2: reason to go to the hospital is to tell them 68 00:05:06,200 --> 00:05:08,160 Speaker 2: you're ready to go home, like the minute you end 69 00:05:08,200 --> 00:05:09,719 Speaker 2: up in the hospital, like, you know what, this was 70 00:05:09,720 --> 00:05:14,120 Speaker 2: a dumb idea, how soon can I go home? Dot? Oh? Well, 71 00:05:14,160 --> 00:05:16,360 Speaker 2: in the USA today, the good thing is they're like, 72 00:05:16,400 --> 00:05:18,400 Speaker 2: you've already been here for five minutes, what are you doing, 73 00:05:18,440 --> 00:05:21,320 Speaker 2: You've overstayed. You're welcome. They want you out of there. 74 00:05:22,120 --> 00:05:24,680 Speaker 2: But in China, once they get you in there, they 75 00:05:24,760 --> 00:05:28,840 Speaker 2: lock the door, not even joking people being locked into 76 00:05:28,920 --> 00:05:31,800 Speaker 2: their room in China, which of course means that people 77 00:05:31,839 --> 00:05:33,680 Speaker 2: don't go for treatment because you don't want to get 78 00:05:33,880 --> 00:05:38,960 Speaker 2: locked in. The restrictions apply to both provincial crown land 79 00:05:39,080 --> 00:05:43,000 Speaker 2: and private land. The original stated goal was to prevent 80 00:05:43,040 --> 00:05:46,440 Speaker 2: wildfires and protect communities. The restrictions will remain in effact 81 00:05:46,520 --> 00:05:50,680 Speaker 2: until the end of the wildlife season or until conditions improve. 82 00:05:52,839 --> 00:05:56,640 Speaker 2: Canada is so out of control. Canada is not a 83 00:05:56,680 --> 00:05:59,480 Speaker 2: free nation any long. It's really sad, it's really tragic. 84 00:06:00,000 --> 00:06:07,479 Speaker 2: But our very own David Obert had this to contribute. Yes, right, Hi, 85 00:06:07,920 --> 00:06:11,080 Speaker 2: this is Smoky, the Canadian Bear. I'm here to remind 86 00:06:11,120 --> 00:06:14,359 Speaker 2: you it only takes a careless moment with a match 87 00:06:14,720 --> 00:06:20,200 Speaker 2: or a cigarette, an unattended fire, campfires, charcoal, grill waste, 88 00:06:20,760 --> 00:06:23,880 Speaker 2: and fireworks. You see. 89 00:06:24,200 --> 00:06:28,800 Speaker 1: I just don't start forest fires, people do. Canada has 90 00:06:28,880 --> 00:06:33,960 Speaker 1: over ten million square kilometers of wilderness and over forty 91 00:06:34,000 --> 00:06:38,560 Speaker 1: one million people. Right now, four one hundred and seventy 92 00:06:38,839 --> 00:06:45,080 Speaker 1: out of control fires burn across Canada. So now only 93 00:06:45,160 --> 00:06:49,159 Speaker 1: you can prevent forest fires by not going in the 94 00:06:49,200 --> 00:06:53,000 Speaker 1: woods at all. And as a matter of fact, you 95 00:06:53,040 --> 00:06:57,039 Speaker 1: could save yourself over twenty five thousand dollars if you 96 00:06:57,240 --> 00:07:00,800 Speaker 1: just don't step one single foot in the wood. I'm 97 00:07:00,839 --> 00:07:01,640 Speaker 1: not really. 98 00:07:01,360 --> 00:07:11,760 Speaker 3: Asking please prevent forest fires. Stay out of the woods. 99 00:07:12,080 --> 00:07:15,840 Speaker 3: Global warming is the issue. Carbon is the issue. You 100 00:07:15,920 --> 00:07:22,000 Speaker 3: were the carbon. Get euthanized, Save the planets, go carbon neutral, euthanize, 101 00:07:22,520 --> 00:07:33,160 Speaker 3: Save Canadian wilkerness, Oh Canada. 102 00:07:30,760 --> 00:07:33,040 Speaker 2: The whole Smokey the Bear, that was a good ad campaign. 103 00:07:34,320 --> 00:07:39,000 Speaker 2: Remember John Candy and National Lampoon. The Bark's globed. That's 104 00:07:39,040 --> 00:07:43,480 Speaker 2: a great scene. Smoky the Bear was good. Yogi Bear 105 00:07:44,320 --> 00:07:47,000 Speaker 2: and Boobo hey boo boo. That was a good quality 106 00:07:47,040 --> 00:07:50,480 Speaker 2: right there. You think about it. One day there was 107 00:07:50,480 --> 00:07:53,760 Speaker 2: no Yoga Bear, and the next day there was think 108 00:07:53,800 --> 00:07:56,080 Speaker 2: about that from mine, you know. I read an article 109 00:07:56,080 --> 00:07:59,040 Speaker 2: on Yoga Bear and yes he was named for Yogi Bearra. 110 00:07:59,760 --> 00:08:03,119 Speaker 2: That was yes, it was as it was. That's truth. 111 00:08:03,120 --> 00:08:05,520 Speaker 2: They were Yogi Barra fans when he was a Yank, 112 00:08:05,560 --> 00:08:08,560 Speaker 2: when he was a Yankees catcher. Yogi Barra is a 113 00:08:08,560 --> 00:08:11,800 Speaker 2: life well lived, that guy right there. That I remember. 114 00:08:11,840 --> 00:08:13,400 Speaker 2: One day I'm in an Astros game. It's like, oh, 115 00:08:13,400 --> 00:08:15,160 Speaker 2: I kind of just like Yogi Barra. Oh it says 116 00:08:15,200 --> 00:08:17,240 Speaker 2: Bara on the Yogi Barra is still a lot. He 117 00:08:17,360 --> 00:08:19,840 Speaker 2: coaches for the Astros. This is crazy. 118 00:08:19,840 --> 00:08:23,360 Speaker 1: Anything else, no, okay, Michael Berry, thank you guys. 119 00:08:23,400 --> 00:08:28,320 Speaker 2: I hope everyone has a really awesome rest today, different 120 00:08:28,360 --> 00:08:34,320 Speaker 2: girl living night at the whole of the financial newsletters I. 121 00:08:34,360 --> 00:08:37,400 Speaker 1: Read in the Sunshine. 122 00:08:37,280 --> 00:08:41,200 Speaker 2: Has been talking of late about something I have observed anecdotally, 123 00:08:41,920 --> 00:08:46,880 Speaker 2: and that is that homes are languishing on the market. 124 00:08:47,320 --> 00:08:52,520 Speaker 2: This is a buyer's market. They're right. The difference between 125 00:08:52,559 --> 00:08:57,400 Speaker 2: the number of US home sellers and buyers has rarely 126 00:08:57,480 --> 00:09:02,480 Speaker 2: been larger. The number of home sellers rose to one 127 00:09:02,559 --> 00:09:07,360 Speaker 2: point nine to four million in April, the most since 128 00:09:07,520 --> 00:09:11,520 Speaker 2: March of twenty twenty. So we've got a lot of 129 00:09:11,559 --> 00:09:18,400 Speaker 2: homes on the market at one time, the most in 130 00:09:18,480 --> 00:09:24,240 Speaker 2: five years. Now. Summertime is the busiest time to buy 131 00:09:24,280 --> 00:09:28,640 Speaker 2: and sell homes because homes. One of the prime drivers 132 00:09:28,920 --> 00:09:31,600 Speaker 2: is kids being out of school so mom can get 133 00:09:31,640 --> 00:09:34,000 Speaker 2: them moved and settled in for the new school year 134 00:09:34,080 --> 00:09:35,880 Speaker 2: and then they don't have to change schools in the 135 00:09:35,880 --> 00:09:39,640 Speaker 2: middle of the year. That's important. So summer is always, 136 00:09:39,840 --> 00:09:41,360 Speaker 2: if you look at a chart, going to be a 137 00:09:41,440 --> 00:09:46,439 Speaker 2: higher number of homes on the market than say February 138 00:09:46,760 --> 00:09:54,640 Speaker 2: or October. That's to be expected. However, this many more sellers, 139 00:09:55,160 --> 00:10:00,360 Speaker 2: one point ninety four million homes on the marketnumber of 140 00:10:00,360 --> 00:10:05,640 Speaker 2: home buyers declined to one point four five, the lowest 141 00:10:06,160 --> 00:10:10,360 Speaker 2: since April of twenty twenty two. Factors at play that 142 00:10:10,720 --> 00:10:14,360 Speaker 2: speak very poorly of your options. If you're a seller, YEA. 143 00:10:14,600 --> 00:10:16,840 Speaker 2: Generally speaking, your home may be gray. You might price 144 00:10:16,920 --> 00:10:19,000 Speaker 2: it right, you might price it low, you might be 145 00:10:19,000 --> 00:10:21,960 Speaker 2: in a hot neighborhood, good school district, whatever else. But 146 00:10:22,800 --> 00:10:25,839 Speaker 2: all things being equal, celeris parabus. As the economists would say, 147 00:10:25,960 --> 00:10:28,600 Speaker 2: we got more homes on the market than we have 148 00:10:28,679 --> 00:10:31,760 Speaker 2: in five years, and fewer home buyers than we have 149 00:10:31,880 --> 00:10:36,040 Speaker 2: in five years. Well, those two are not necessarily unrelated. 150 00:10:36,200 --> 00:10:38,160 Speaker 2: If you don't have home buyers, you got sellers who 151 00:10:38,200 --> 00:10:42,720 Speaker 2: don't have a transaction of closing waiting. As a result, 152 00:10:42,800 --> 00:10:45,840 Speaker 2: the difference between US home sellers and buyers hit four 153 00:10:45,920 --> 00:10:52,000 Speaker 2: hundred and ninety thousand dollars, the most since twenty thirteen. 154 00:10:52,880 --> 00:10:58,000 Speaker 2: That data, if memory serves, is compiled by redfins, the 155 00:10:58,080 --> 00:11:01,760 Speaker 2: largest number of the largest disparity between houses for sale 156 00:11:01,840 --> 00:11:06,160 Speaker 2: and home buyers since twenty thirteen. But here's what this 157 00:11:06,320 --> 00:11:09,360 Speaker 2: newsletter doesn't note. Maybe they don't know it. I'm obsessed 158 00:11:09,360 --> 00:11:11,600 Speaker 2: with real estate. You know why it goes back to 159 00:11:11,600 --> 00:11:15,319 Speaker 2: twenty thirteen, because that's when Red Finn started studying it. 160 00:11:16,000 --> 00:11:19,439 Speaker 2: This might go back fifty years, that's just when it started. 161 00:11:20,040 --> 00:11:22,760 Speaker 2: It's like when you see that somebody has X number 162 00:11:22,760 --> 00:11:27,320 Speaker 2: of three pointers and he's a great three point shooter. Yeah, 163 00:11:27,360 --> 00:11:31,600 Speaker 2: but but Hablichek didn't get that option. Marivich didn't get 164 00:11:31,640 --> 00:11:35,320 Speaker 2: that option. Marrivich average four point sorry, forty four point 165 00:11:35,360 --> 00:11:38,199 Speaker 2: I remember forty four point two points per game in 166 00:11:38,240 --> 00:11:45,439 Speaker 2: college with no three point line. Yeah, and he was white, yes, yeah, 167 00:11:45,520 --> 00:11:47,760 Speaker 2: they you know, he was on JV's dad was a coach, 168 00:11:47,840 --> 00:11:50,719 Speaker 2: and when he was on JV, they would go, I 169 00:11:50,720 --> 00:11:53,880 Speaker 2: don't know, JV. What do they call it? Freshman team? 170 00:11:53,920 --> 00:11:56,560 Speaker 2: Because the freshman couldn't play on varsity. People would go 171 00:11:56,600 --> 00:11:58,800 Speaker 2: to watch him play the freshman game. The gym would 172 00:11:58,880 --> 00:12:01,520 Speaker 2: fill up, and when the game was over that the 173 00:12:01,559 --> 00:12:04,880 Speaker 2: actual college team was coming in the seniors and everybody 174 00:12:04,960 --> 00:12:07,079 Speaker 2: leave because they were there to see pee. All right, 175 00:12:07,160 --> 00:12:09,280 Speaker 2: So we've got more homes on the market than we've 176 00:12:09,320 --> 00:12:13,400 Speaker 2: ever seen and fewer buyers. We got a big problem. 177 00:12:14,320 --> 00:12:17,640 Speaker 2: Thirty three point seven percent more sellers than buyers in 178 00:12:17,679 --> 00:12:21,560 Speaker 2: the US. Thirty three point seven Hold that number in 179 00:12:21,559 --> 00:12:24,760 Speaker 2: your head. Okay, well, you need you need a yardstick. 180 00:12:25,360 --> 00:12:27,840 Speaker 2: You need some scale perspective. How high is thirty three 181 00:12:27,840 --> 00:12:33,120 Speaker 2: point seven percent? A year ago it was six point 182 00:12:33,200 --> 00:12:38,160 Speaker 2: five percent? Yeah, so do you know what this means? Right, 183 00:12:39,200 --> 00:12:42,400 Speaker 2: you're smart. We talk about this whole time Economics one 184 00:12:42,440 --> 00:12:52,320 Speaker 2: oh one. What happens again when supply increases but demand 185 00:12:52,440 --> 00:12:57,880 Speaker 2: remains the same. A deg sorry increase in supply, a 186 00:12:57,920 --> 00:13:02,920 Speaker 2: glut in the market, and demand remains the same. Well, 187 00:13:02,960 --> 00:13:06,320 Speaker 2: if there are more places I can buy this product, 188 00:13:06,440 --> 00:13:10,040 Speaker 2: there's not a monopoly of sellers or a seller, and 189 00:13:10,120 --> 00:13:14,560 Speaker 2: everybody has it, the price goes down, So you start 190 00:13:14,600 --> 00:13:18,960 Speaker 2: seeing the price go down. That would presume, or that 191 00:13:19,000 --> 00:13:23,040 Speaker 2: would be the case if inventory went up, supply went 192 00:13:23,120 --> 00:13:29,480 Speaker 2: up but demand remained static. However, demand has decreased. Uh oh, 193 00:13:30,040 --> 00:13:33,000 Speaker 2: now we're going to start seeing some real price cuts. 194 00:13:33,480 --> 00:13:36,880 Speaker 2: You know where I'm seeing it? In Galveston. I monitor 195 00:13:36,960 --> 00:13:40,080 Speaker 2: the Bay properties and in town. There's a lot of 196 00:13:40,080 --> 00:13:41,679 Speaker 2: markets I look at, but Galveston is one of my 197 00:13:41,760 --> 00:13:46,839 Speaker 2: look at it often. And you're seeing homes that are 198 00:13:46,920 --> 00:13:51,800 Speaker 2: dropping their home value five or ten percent in one 199 00:13:51,840 --> 00:13:54,160 Speaker 2: fell swoop. You see a lot of homes that are 200 00:13:54,160 --> 00:13:57,200 Speaker 2: sitting on the market for a year or more. In fact, 201 00:13:57,480 --> 00:14:02,160 Speaker 2: I'm watching properties that they're taking off the market two 202 00:14:02,200 --> 00:14:04,840 Speaker 2: weeks and putting it back because they don't want you 203 00:14:04,920 --> 00:14:09,360 Speaker 2: to see the dom days on market as you know, 204 00:14:09,440 --> 00:14:12,040 Speaker 2: being four hundred and seventy eight, because then people start thinking, 205 00:14:12,040 --> 00:14:18,400 Speaker 2: maybe it's haunted, maybe nobody wants it, maybe it's a 206 00:14:18,440 --> 00:14:21,400 Speaker 2: great deal. The best deals I've ever gotten on real estate. 207 00:14:22,040 --> 00:14:24,560 Speaker 2: Never buy a house to day it gets listed. That's 208 00:14:24,600 --> 00:14:29,480 Speaker 2: an impulse purchase. That person has overvalued their home, and 209 00:14:29,560 --> 00:14:31,760 Speaker 2: that is the day they are the most confident in 210 00:14:31,800 --> 00:14:34,480 Speaker 2: its value. You let that thing language for a year 211 00:14:34,520 --> 00:14:37,240 Speaker 2: and a half and people start going, you know, maybe 212 00:14:37,240 --> 00:14:40,600 Speaker 2: my home's not so great, Your home is fine, Your 213 00:14:40,600 --> 00:14:44,160 Speaker 2: price is too high. Price moves homes period. End of story. 214 00:14:44,720 --> 00:14:48,840 Speaker 2: Price drives everything, Price drives everything. People don't understand that 215 00:14:49,000 --> 00:14:53,960 Speaker 2: price drives everything. Price is not scientific. Price is not 216 00:14:54,120 --> 00:14:58,200 Speaker 2: divined using a measuring device that the Germans make or 217 00:14:58,280 --> 00:15:04,880 Speaker 2: precision instrumentation. A property is worth what a willing and 218 00:15:05,240 --> 00:15:10,360 Speaker 2: able buyer will pay you for it. Most people never 219 00:15:10,440 --> 00:15:14,840 Speaker 2: learned that lesson in life. That house over that's overpriced. 220 00:15:15,040 --> 00:15:18,320 Speaker 2: What does it mean it's overpriced that you can't afford it? Okay, well, 221 00:15:18,320 --> 00:15:22,080 Speaker 2: it's overpriced for you. Oh, they won't eight hundred thousand 222 00:15:22,160 --> 00:15:27,000 Speaker 2: dollars for it. That house overpriced. It went under contract 223 00:15:27,000 --> 00:15:30,560 Speaker 2: this morning. That's too much. The buyer gets to decide 224 00:15:30,560 --> 00:15:35,320 Speaker 2: what he's willing to pay. It's overpriced relative to what. 225 00:15:35,320 --> 00:15:37,600 Speaker 2: What you mean to say is, it's overpriced relative to 226 00:15:37,640 --> 00:15:40,840 Speaker 2: what you'll pay. People go into a restaurant. A restaurant 227 00:15:40,840 --> 00:15:46,480 Speaker 2: too high, they're overpriced. What is the objective price for 228 00:15:46,600 --> 00:15:50,920 Speaker 2: a stake in that restaurant? But what source do you 229 00:15:51,040 --> 00:15:54,560 Speaker 2: use for what that price should be? You know, I'll 230 00:15:54,600 --> 00:15:57,960 Speaker 2: go with bonanza eight dollars day. Okay, well you eate 231 00:15:58,040 --> 00:16:01,560 Speaker 2: eight dollars stay And that guy might say that steak 232 00:16:01,600 --> 00:16:04,480 Speaker 2: is underpriced. No, it's good price. Well, what you mean 233 00:16:04,560 --> 00:16:08,200 Speaker 2: to say is, as a sole actor in the market, 234 00:16:08,640 --> 00:16:11,680 Speaker 2: that price is more than I would spend. That's fine, 235 00:16:11,920 --> 00:16:14,960 Speaker 2: you're not the entirety of the marketplace. But the price 236 00:16:15,080 --> 00:16:17,600 Speaker 2: is not established by your opinion. The price is established 237 00:16:17,600 --> 00:16:20,720 Speaker 2: by one willing buyer who is able to close and 238 00:16:20,800 --> 00:16:27,920 Speaker 2: does if that and they were just established by always 239 00:16:27,960 --> 00:16:37,160 Speaker 2: amazed at science and scientists experiments, things they can do 240 00:16:37,240 --> 00:16:39,080 Speaker 2: in a lab. Now, I don't know if you saw 241 00:16:39,120 --> 00:16:44,200 Speaker 2: this story. Ramon uh. In Louisiana, scientists have attempted to 242 00:16:44,360 --> 00:16:48,960 Speaker 2: cross crab and cheetah. From what I gather, it went 243 00:16:49,000 --> 00:16:55,960 Speaker 2: sideways fast. That's a good one. Let me do that 244 00:16:55,960 --> 00:17:01,800 Speaker 2: one again. I'm just amazed by science and technology and 245 00:17:01,840 --> 00:17:04,159 Speaker 2: innovation and you know the things they can do in 246 00:17:04,240 --> 00:17:08,480 Speaker 2: a lab. Now it's incredible. You know, Verger Mendel kind 247 00:17:08,520 --> 00:17:12,040 Speaker 2: of stuff, you know, And now with AI they're saying 248 00:17:12,040 --> 00:17:16,360 Speaker 2: it's I don't know if you saw this story. In Louisiana, 249 00:17:16,440 --> 00:17:21,040 Speaker 2: scientists have attempted to cross crab and cheetah. From what 250 00:17:21,119 --> 00:17:27,240 Speaker 2: I gather, it went sideways fast. And how did that 251 00:17:27,280 --> 00:17:30,199 Speaker 2: one again? That was that's good? I got better the 252 00:17:30,200 --> 00:17:32,400 Speaker 2: second time. I mean even I was waiting for the payoff. 253 00:17:33,240 --> 00:17:35,840 Speaker 2: Anise Porker has sold her soul to Rodney Ellis. Wait 254 00:17:35,920 --> 00:17:39,439 Speaker 2: till you read what she has done. Okay, So we 255 00:17:39,520 --> 00:17:44,399 Speaker 2: got prices coming down, and there is certainly, you know, 256 00:17:44,440 --> 00:17:47,760 Speaker 2: the thing that is hovering over all of this. If 257 00:17:47,800 --> 00:17:50,760 Speaker 2: you some people panic that you don't have to panic. 258 00:17:52,119 --> 00:17:55,440 Speaker 2: Interest rates are going to drop. Interest rates are going 259 00:17:55,480 --> 00:17:59,280 Speaker 2: to drop. And JP Morgan Chase is predicting four interest 260 00:17:59,359 --> 00:18:02,800 Speaker 2: rate drops. And Jamie Diamond, he's one of the guys 261 00:18:02,800 --> 00:18:04,400 Speaker 2: that makes the call and tells them to drop it, 262 00:18:04,600 --> 00:18:08,520 Speaker 2: whether they admit it or not. So now I don't 263 00:18:08,640 --> 00:18:14,720 Speaker 2: know if he's trying to price in going along on. 264 00:18:15,160 --> 00:18:18,320 Speaker 2: I don't know what. You got to realize that anything 265 00:18:18,400 --> 00:18:22,840 Speaker 2: related to these dark folks Blackstone, JP, Morgan, Chase, the 266 00:18:23,000 --> 00:18:28,399 Speaker 2: CIA that whatever they tell you, your natural reaction is 267 00:18:28,440 --> 00:18:31,879 Speaker 2: what they wanted you to have. So you can't trust 268 00:18:31,880 --> 00:18:36,760 Speaker 2: your gut because nothing they do is straightforward. Whatever information 269 00:18:36,840 --> 00:18:39,399 Speaker 2: they release is to get you to react to that 270 00:18:39,840 --> 00:18:43,160 Speaker 2: the way you would naturally do because you don't realize 271 00:18:43,280 --> 00:18:46,000 Speaker 2: what they're up to, and then based on your reaction, 272 00:18:46,320 --> 00:18:50,639 Speaker 2: they've already bet that that's what's going to happen and 273 00:18:50,680 --> 00:18:53,360 Speaker 2: there is something in it for them. So you have 274 00:18:53,440 --> 00:18:56,320 Speaker 2: to play the long game and be contrarian and say, now, 275 00:18:56,359 --> 00:18:59,960 Speaker 2: why are they predicting this? What are they doing? Well, 276 00:19:00,480 --> 00:19:04,040 Speaker 2: it could be as simple as they're trying to generate 277 00:19:04,080 --> 00:19:10,520 Speaker 2: some economic activity because their loan what they can't they 278 00:19:10,600 --> 00:19:14,200 Speaker 2: don't have any loans, and they need to lend money. 279 00:19:14,240 --> 00:19:16,239 Speaker 2: That's what that's the business they're in, that's how they 280 00:19:16,280 --> 00:19:19,119 Speaker 2: make money. And they recognize that we're getting toward the 281 00:19:19,200 --> 00:19:21,840 Speaker 2: end of the summer, and you've got to gin up 282 00:19:21,840 --> 00:19:25,880 Speaker 2: some activity because if you drop the interest rates in October, 283 00:19:26,480 --> 00:19:31,080 Speaker 2: you don't get an immediate bump. People can't buy in October. 284 00:19:32,560 --> 00:19:35,160 Speaker 2: They can't buy that fast. Now they will, they will, 285 00:19:35,600 --> 00:19:40,040 Speaker 2: they will close for the end of the year. Because 286 00:19:40,080 --> 00:19:42,440 Speaker 2: if you like Stay of Texas, you want your homeowners exemption, 287 00:19:42,800 --> 00:19:44,879 Speaker 2: you've got to be in the home on January first, 288 00:19:45,840 --> 00:19:50,560 Speaker 2: so you'll see you'll see action heat up in October 289 00:19:50,600 --> 00:19:54,520 Speaker 2: and endto November thirty day clothes, let's say, you'll see 290 00:19:54,520 --> 00:19:59,520 Speaker 2: folks starting to get real, real busy. I use a 291 00:19:59,560 --> 00:20:06,639 Speaker 2: woman Na Dana Pendleton Duncan at Alamo Title and I 292 00:20:06,680 --> 00:20:09,159 Speaker 2: get my my you know, she'll give me updates on 293 00:20:09,520 --> 00:20:12,560 Speaker 2: what she's seeing and she's a pretty volume player in 294 00:20:12,640 --> 00:20:15,360 Speaker 2: the business. She's the best I've dealt with. I've dealt 295 00:20:15,400 --> 00:20:23,840 Speaker 2: with title agents for since nineteen ninety five, so last 296 00:20:23,840 --> 00:20:26,639 Speaker 2: thirty years, and she's the best I've ever seen. They're oh, 297 00:20:26,640 --> 00:20:28,960 Speaker 2: they're all cute. Her being cute has nothing if you 298 00:20:29,000 --> 00:20:30,960 Speaker 2: want to get the deal to Yes, she's cute, but 299 00:20:31,040 --> 00:20:33,600 Speaker 2: they're all cute. That's the reason they're title agent girls. 300 00:20:34,800 --> 00:20:37,000 Speaker 2: And she's been a title agent girl for a long time, 301 00:20:39,119 --> 00:20:44,880 Speaker 2: not asians agent agent, But what I want is somebody 302 00:20:44,920 --> 00:20:47,919 Speaker 2: that comes to me, brings the documents, make sure everything 303 00:20:48,000 --> 00:20:50,800 Speaker 2: is done, gets my deal funded on time, and can 304 00:20:50,840 --> 00:20:54,119 Speaker 2: give me inside market information. And her husband, Clint, is 305 00:20:54,200 --> 00:20:56,960 Speaker 2: a big time developer, so you know, you get to 306 00:20:56,960 --> 00:20:59,800 Speaker 2: see I can see the commercial and residential side from 307 00:20:59,840 --> 00:21:01,520 Speaker 2: a lot of what he's doing, what his buddies are doing. 308 00:21:01,880 --> 00:21:04,159 Speaker 2: I got distracted, so let me tell you what's going 309 00:21:04,200 --> 00:21:09,679 Speaker 2: on locally. Houston Association of Realtors HAR does a monthly 310 00:21:09,720 --> 00:21:13,320 Speaker 2: housing update. Here is their headline for this month. Houston 311 00:21:13,400 --> 00:21:20,120 Speaker 2: home prices ease in July as supply hits record high. Well, 312 00:21:20,359 --> 00:21:25,200 Speaker 2: HAR wants to encourage the churn. It's what they do. 313 00:21:25,320 --> 00:21:29,840 Speaker 2: Realtors want prices to go up because then sellers will 314 00:21:29,880 --> 00:21:33,760 Speaker 2: capture the equity they have in their home prices go down. 315 00:21:34,200 --> 00:21:36,480 Speaker 2: You know, people think you always want the stock market 316 00:21:36,560 --> 00:21:38,320 Speaker 2: to go up and you always want the home values 317 00:21:38,320 --> 00:21:41,960 Speaker 2: to go up. That's not true. When home values continue 318 00:21:41,960 --> 00:21:44,320 Speaker 2: to go up at an absurd rate, which they did 319 00:21:44,440 --> 00:21:50,760 Speaker 2: after COVID, it is irrational behavior. But irrational behavior when 320 00:21:50,800 --> 00:21:56,560 Speaker 2: it's undertaken by a lot of people, it camouflages that 321 00:21:56,640 --> 00:22:02,360 Speaker 2: it's irrational. It starts to look ra because everybody's doing it. 322 00:22:03,119 --> 00:22:05,320 Speaker 2: Like you told your kid, well, if everybody jumped off 323 00:22:05,320 --> 00:22:07,760 Speaker 2: the cliff, would you follow them like a living No. 324 00:22:08,240 --> 00:22:13,000 Speaker 2: So we had irrational behavior during and after COVID, and 325 00:22:13,040 --> 00:22:15,200 Speaker 2: then the bill comes due. Somebody's got to wear the hickey. 326 00:22:15,600 --> 00:22:18,280 Speaker 2: So you take a house that would have traded at 327 00:22:18,280 --> 00:22:22,480 Speaker 2: three hundred thousand dollars, and then COVID comes along, and 328 00:22:23,160 --> 00:22:25,919 Speaker 2: in that same house, let's say it's it's you know, 329 00:22:26,080 --> 00:22:29,320 Speaker 2: just outside of town. People start going, well, I don't 330 00:22:29,359 --> 00:22:30,600 Speaker 2: need to live in the citymore. If I don't have 331 00:22:30,640 --> 00:22:33,359 Speaker 2: to drive to work, I'll live. I'll live out there. 332 00:22:33,480 --> 00:22:35,680 Speaker 2: And so you started seeing republic Grand Ranch. You start 333 00:22:35,760 --> 00:22:38,960 Speaker 2: seeing places going crazy, and they did. Republican Grand Ranch 334 00:22:39,040 --> 00:22:41,880 Speaker 2: is going crazy. And the reason is, if I don't 335 00:22:41,920 --> 00:22:43,960 Speaker 2: have to live near where I work, then I don't 336 00:22:44,000 --> 00:22:45,639 Speaker 2: want to be exposed. I don't want to live amongst 337 00:22:45,640 --> 00:22:49,920 Speaker 2: the Democrats, driving around, creeping their head all the way back, 338 00:22:50,280 --> 00:22:54,679 Speaker 2: winded down curb feelers, loud music, and a pistol in 339 00:22:54,720 --> 00:22:56,359 Speaker 2: the seat in case he decides he wants to shoot 340 00:22:56,400 --> 00:22:58,480 Speaker 2: somebody for cutting them off or him cutting them off 341 00:22:58,480 --> 00:23:01,480 Speaker 2: of them honking. So people don't want to live amongst that, 342 00:23:02,040 --> 00:23:09,360 Speaker 2: crappy schools, high taxes, busted roads, high crime, and people go, 343 00:23:09,640 --> 00:23:12,240 Speaker 2: I would rather get out of town, and so they do. 344 00:23:13,119 --> 00:23:15,880 Speaker 2: And a lot of people move at a moment like that. 345 00:23:17,000 --> 00:23:20,000 Speaker 2: And now with technology you had for a couple of 346 00:23:20,040 --> 00:23:22,200 Speaker 2: years there people didn't go into the office that's coming 347 00:23:22,320 --> 00:23:25,639 Speaker 2: back now there, you know, more and more places are 348 00:23:25,680 --> 00:23:27,480 Speaker 2: requiring you to go back in the office. So now 349 00:23:27,520 --> 00:23:29,880 Speaker 2: people look at things differently. But a lot of people 350 00:23:30,000 --> 00:23:33,960 Speaker 2: retired and got out of town or they went semi retired, 351 00:23:34,240 --> 00:23:37,480 Speaker 2: and they've got the technology. All these people that are consulting. 352 00:23:37,520 --> 00:23:39,239 Speaker 2: I mean a lot of people just didn't need to 353 00:23:39,240 --> 00:23:41,919 Speaker 2: come in and interact with other people, and now they don't. 354 00:23:42,760 --> 00:23:46,160 Speaker 2: So now you had more buyers. So supply didn't change, 355 00:23:46,240 --> 00:23:49,600 Speaker 2: but demand increased. So what happens, our price goes up 356 00:23:49,720 --> 00:23:52,800 Speaker 2: at that moment, So you ended up driving up home 357 00:23:52,840 --> 00:23:57,960 Speaker 2: prices overnight to unsustainable levels. There just weren't enough people 358 00:23:58,000 --> 00:24:02,120 Speaker 2: who would qualify for loans at that eight. Couple that 359 00:24:02,680 --> 00:24:06,400 Speaker 2: with interest, you had high inflation, and so they were 360 00:24:06,440 --> 00:24:09,600 Speaker 2: trying to jigger the numbers to bring the inflation down. 361 00:24:09,840 --> 00:24:12,320 Speaker 2: So what they do They shot the interest rate up 362 00:24:12,760 --> 00:24:16,560 Speaker 2: because they pulled money out of the the economy. Right, 363 00:24:16,760 --> 00:24:20,119 Speaker 2: Raising the interest rates is the equivalent of pulling cash 364 00:24:20,119 --> 00:24:22,679 Speaker 2: out of the economy. Well, now there's no cash for anybody. 365 00:24:22,720 --> 00:24:24,280 Speaker 2: Nobody can get a loan. You want to get a loan, 366 00:24:24,320 --> 00:24:26,600 Speaker 2: you pay a high interest rate. I'm sitting on a 367 00:24:26,640 --> 00:24:29,840 Speaker 2: two point two point two I think interest rate on 368 00:24:29,880 --> 00:24:32,080 Speaker 2: my house. I'd love to pay my house off. How 369 00:24:32,080 --> 00:24:35,679 Speaker 2: can I? How can I? I can get better than 370 00:24:35,680 --> 00:24:37,680 Speaker 2: that on a savings account. I can part my money 371 00:24:37,720 --> 00:24:39,879 Speaker 2: to bank and get better. Now on a saving I don't. 372 00:24:39,920 --> 00:24:42,360 Speaker 2: But it's crazy. Well, then those interest rates go up. 373 00:24:42,400 --> 00:24:44,600 Speaker 2: Now people don't want to buy. So that's also and 374 00:24:44,640 --> 00:24:46,760 Speaker 2: that's about to change. I think we're gonna heat this 375 00:24:46,760 --> 00:24:48,480 Speaker 2: this real estate market up the next couple of months. 376 00:24:48,960 --> 00:24:57,679 Speaker 2: This is the Michael Berry show, No child right. Let 377 00:24:57,680 --> 00:25:00,680 Speaker 2: me give it to Houston numbers real quick from Houston 378 00:25:00,680 --> 00:25:06,840 Speaker 2: Association and Realtors. On July twenty twenty five, single family 379 00:25:06,960 --> 00:25:12,040 Speaker 2: home sales increased nine point two percent year over year. 380 00:25:13,040 --> 00:25:17,760 Speaker 2: Houston is in many ways bucking the national trends. A 381 00:25:17,760 --> 00:25:20,439 Speaker 2: total of eighty three hundred homes were sold compared to 382 00:25:20,480 --> 00:25:24,560 Speaker 2: seventy six hundred last year, when Hurricane Barrel temporarily halted 383 00:25:24,600 --> 00:25:28,680 Speaker 2: market activity for several days. July marked the largest year 384 00:25:28,720 --> 00:25:32,000 Speaker 2: over year decline in home prices since twenty twenty three. 385 00:25:32,560 --> 00:25:35,520 Speaker 2: The median price was down three point one percent to 386 00:25:35,560 --> 00:25:40,280 Speaker 2: three hundred thirty nine thousand. The average price median means 387 00:25:40,320 --> 00:25:43,720 Speaker 2: half above, half below. You remember that median price was 388 00:25:43,760 --> 00:25:46,320 Speaker 2: down three point one percent to three hundred thirty nine thousand. 389 00:25:46,720 --> 00:25:49,240 Speaker 2: The average price was four hundred and thirty four thousand, 390 00:25:49,280 --> 00:25:52,320 Speaker 2: which is one point three percent, sorry, one point nine 391 00:25:52,400 --> 00:25:57,280 Speaker 2: percent below last year's level. Active listings reached an all 392 00:25:57,440 --> 00:26:02,520 Speaker 2: time high in July. Look, if you live in a neighborhood, 393 00:26:03,080 --> 00:26:07,080 Speaker 2: a master planned community, especially where there's not a lot 394 00:26:07,119 --> 00:26:08,960 Speaker 2: of difference between the homes, you know you got the 395 00:26:08,960 --> 00:26:12,320 Speaker 2: same builder, and it's a production builder. You know when 396 00:26:12,320 --> 00:26:16,119 Speaker 2: those builders builds a bunch of them. You know that 397 00:26:16,880 --> 00:26:20,119 Speaker 2: if five people on your street put their homes on 398 00:26:20,160 --> 00:26:22,840 Speaker 2: the market and they're all at about three hundred and 399 00:26:22,840 --> 00:26:27,280 Speaker 2: thirty five thousand, you're sol it's not good. You're going 400 00:26:27,359 --> 00:26:30,280 Speaker 2: to have to drop the price. Price drives sales, That's 401 00:26:30,359 --> 00:26:32,560 Speaker 2: just it. There's no other way around it, and you're 402 00:26:32,560 --> 00:26:34,960 Speaker 2: gonna have to drop the price to such an extent 403 00:26:35,760 --> 00:26:38,560 Speaker 2: that you catch somebody's attention. It's going to have to 404 00:26:38,560 --> 00:26:41,120 Speaker 2: be a real incentive. You're going to lose that equity 405 00:26:41,160 --> 00:26:44,440 Speaker 2: that you know two years ago you believed you had achieved. 406 00:26:44,760 --> 00:26:48,200 Speaker 2: That equity is vapor it's gone if nobody will pay 407 00:26:48,280 --> 00:26:51,160 Speaker 2: you what you think you owe for it. Well, here's 408 00:26:51,200 --> 00:26:56,160 Speaker 2: the problem in a short term window of such volatility. 409 00:26:56,280 --> 00:27:00,600 Speaker 2: Let's say somebody bought a house in twenty one twenty two. 410 00:27:01,040 --> 00:27:05,119 Speaker 2: Let's take Galveston. A lot of people during COVID bought 411 00:27:05,160 --> 00:27:11,760 Speaker 2: places down on the Bay, Pirates Cove where Jimmy Pappas lives, 412 00:27:11,800 --> 00:27:14,239 Speaker 2: or some of these other places. But those prices, there 413 00:27:14,280 --> 00:27:17,080 Speaker 2: was a huge run up on those prices. So you 414 00:27:17,160 --> 00:27:24,160 Speaker 2: had houses that would have been in twenty fifteen five 415 00:27:24,240 --> 00:27:31,000 Speaker 2: hundred thousand, then the natural inflation to twenty nineteen, they 416 00:27:31,080 --> 00:27:34,720 Speaker 2: might have been six fifty seven hundred. Now all of 417 00:27:34,720 --> 00:27:38,560 Speaker 2: a sudden, you had people, you had private equity guys 418 00:27:38,560 --> 00:27:42,320 Speaker 2: here in town that were saying, you know, their wife 419 00:27:42,359 --> 00:27:45,199 Speaker 2: was saying, honey, the kids aren't going to school, and 420 00:27:45,240 --> 00:27:47,359 Speaker 2: we got all this time, and I need something to 421 00:27:47,400 --> 00:27:49,840 Speaker 2: do with them. Let's buy a house in Galveston where 422 00:27:49,800 --> 00:27:52,240 Speaker 2: they're not moving there, just buying the second house. And 423 00:27:52,440 --> 00:27:56,840 Speaker 2: here's the worst one. We'll airbnb it when we're not there, Okay, 424 00:27:56,880 --> 00:27:58,840 Speaker 2: so everybody. So now you had a glut of homes 425 00:27:58,880 --> 00:28:02,280 Speaker 2: that were airbnb'd and you had all these buyers coming down. Well, 426 00:28:02,320 --> 00:28:06,439 Speaker 2: what happens when fifteen buyers come down and want that 427 00:28:06,480 --> 00:28:11,080 Speaker 2: same property on Musket Lane. Well, now you start driving 428 00:28:11,080 --> 00:28:15,280 Speaker 2: the prices up. It's like an auction, right, the marketplace 429 00:28:15,359 --> 00:28:19,240 Speaker 2: is an auction. So once more people are buying, Plus 430 00:28:19,800 --> 00:28:21,560 Speaker 2: you had stock market gains, so you got a lot 431 00:28:21,560 --> 00:28:24,440 Speaker 2: of people that are rich on paper that weren't yesterday. 432 00:28:24,800 --> 00:28:26,480 Speaker 2: And their wife they can look like a stud to 433 00:28:26,480 --> 00:28:28,680 Speaker 2: their wife. Their kids are happy. Oh we're going to 434 00:28:28,760 --> 00:28:31,000 Speaker 2: live in Galveston part of the time. Now, Oh this 435 00:28:31,040 --> 00:28:33,119 Speaker 2: is very exciting. So here we go, and that's what 436 00:28:33,119 --> 00:28:37,560 Speaker 2: would happen. Well, that drove the prices up. And if 437 00:28:37,600 --> 00:28:39,800 Speaker 2: you were a cash buyer and you could afford to 438 00:28:39,840 --> 00:28:42,400 Speaker 2: write this house off, that's fine. But there were a 439 00:28:42,440 --> 00:28:46,400 Speaker 2: lot of people that really it was a reach. They 440 00:28:46,440 --> 00:28:50,400 Speaker 2: extended themselves so they got a zero down loan or 441 00:28:50,440 --> 00:28:54,000 Speaker 2: a ten percent loan, They got very low down payment loan, 442 00:28:54,840 --> 00:28:58,040 Speaker 2: So now you got people that spent five hundred thousand 443 00:28:58,040 --> 00:29:00,560 Speaker 2: to a million and a half on a back at home, 444 00:29:00,600 --> 00:29:03,440 Speaker 2: and they never had a second home before. So now 445 00:29:03,440 --> 00:29:06,760 Speaker 2: they've got this big mortgage because they really had no 446 00:29:06,840 --> 00:29:08,920 Speaker 2: business buying this house. But it was COVID. The kids 447 00:29:08,960 --> 00:29:11,520 Speaker 2: were getting on their nerves. This was exciting. This would 448 00:29:11,560 --> 00:29:14,040 Speaker 2: make us feel good. We felt bad about everything. All 449 00:29:14,040 --> 00:29:15,840 Speaker 2: the news was down. We're going to have an exciting 450 00:29:15,840 --> 00:29:17,920 Speaker 2: thing in our lives. We're gonna be spending time in Galveston. 451 00:29:17,960 --> 00:29:21,920 Speaker 2: Here's our post on Facebook, Instagram. Look at us. We're happy. Great, Yes, 452 00:29:22,040 --> 00:29:27,080 Speaker 2: that's awesome. It's wonderful. However, now you owe on that 453 00:29:27,080 --> 00:29:30,680 Speaker 2: million dollar house, you owe a million bucks. So now 454 00:29:30,720 --> 00:29:35,560 Speaker 2: a couple of years later, you've you've paid, you've you've 455 00:29:35,600 --> 00:29:38,719 Speaker 2: made thirty six forty eight payments, and on the million 456 00:29:38,760 --> 00:29:41,600 Speaker 2: dollar loan you took on the one point one million 457 00:29:41,640 --> 00:29:46,480 Speaker 2: dollar house, you still owe nine sixty five. So now 458 00:29:46,520 --> 00:29:49,240 Speaker 2: you go. You know what, honey, that was fun. I'm 459 00:29:49,240 --> 00:29:52,800 Speaker 2: glad we did it. I don't regret it, but I 460 00:29:52,800 --> 00:29:54,560 Speaker 2: think we should sell that house. I think we should 461 00:29:54,560 --> 00:29:56,960 Speaker 2: sell that House's let's let's let's kind of cut back 462 00:29:56,960 --> 00:29:58,600 Speaker 2: a little let's let's get on a budget here. The 463 00:29:58,680 --> 00:30:00,640 Speaker 2: kids will been going off to college before you. Okay, 464 00:30:00,720 --> 00:30:04,640 Speaker 2: she says, fine, Well that guy can't sell that house 465 00:30:05,200 --> 00:30:07,920 Speaker 2: for less than nine sixty five what he still owes 466 00:30:07,960 --> 00:30:10,719 Speaker 2: on it. He didn't want to take a loss. Nobody 467 00:30:10,720 --> 00:30:12,760 Speaker 2: wants to go to the closing table on a sell 468 00:30:13,720 --> 00:30:16,760 Speaker 2: and write a check to somebody to take their house away. 469 00:30:17,480 --> 00:30:19,760 Speaker 2: And if you know, if his mortgage on that's I 470 00:30:19,760 --> 00:30:23,320 Speaker 2: don't know, eight grand, seven thousand, eight thousand a month, 471 00:30:23,880 --> 00:30:25,880 Speaker 2: and he's got to write a check to somebody who 472 00:30:26,040 --> 00:30:29,200 Speaker 2: who offers nine to ten. I got to offer you 473 00:30:29,280 --> 00:30:31,680 Speaker 2: six months of mortgage payments for you to just take 474 00:30:31,720 --> 00:30:34,560 Speaker 2: the damn thing off my hands. Well, nobody wants to 475 00:30:34,560 --> 00:30:38,680 Speaker 2: do that. I'll just continue to pay it off monthly 476 00:30:38,800 --> 00:30:41,360 Speaker 2: till somebody pays us. Nine to sixty five was not 477 00:30:41,480 --> 00:30:44,200 Speaker 2: nine sixty five. You got six percent in real estate commissions, 478 00:30:44,560 --> 00:30:49,240 Speaker 2: you got a title company closing costs, you got prepaid taxes, 479 00:30:49,320 --> 00:30:53,240 Speaker 2: so you got all that hitting you. Oh my goodness, 480 00:30:53,560 --> 00:30:55,800 Speaker 2: well this is not good. I mean, I guess the 481 00:30:55,840 --> 00:30:59,640 Speaker 2: good news is you didn't make anything on it, so 482 00:30:59,680 --> 00:31:02,040 Speaker 2: you don't don't have a capital gain on this one. 483 00:31:02,400 --> 00:31:05,640 Speaker 2: So now you've got people who are trying to get 484 00:31:05,680 --> 00:31:09,560 Speaker 2: a million dollars for their house, and really they need 485 00:31:09,560 --> 00:31:11,640 Speaker 2: to get one point one by the time you pay 486 00:31:12,120 --> 00:31:14,480 Speaker 2: fees and everything else. But now you've got people trying 487 00:31:14,480 --> 00:31:16,320 Speaker 2: to get one point one for their house that they 488 00:31:16,360 --> 00:31:19,280 Speaker 2: paid one point one for, but they have no equity, 489 00:31:19,960 --> 00:31:21,760 Speaker 2: so they can't sell it for one point one. They 490 00:31:21,760 --> 00:31:24,440 Speaker 2: can't recoup all those costs. And you can scale this 491 00:31:24,600 --> 00:31:26,720 Speaker 2: down or up. This is also true of the person 492 00:31:26,760 --> 00:31:28,640 Speaker 2: who buys a two hundred thousand dollars house or the 493 00:31:28,640 --> 00:31:30,920 Speaker 2: three hundred thousand dollars or the four hundred. In fact, 494 00:31:30,960 --> 00:31:34,440 Speaker 2: it's more true for them because for those people, they 495 00:31:34,480 --> 00:31:37,240 Speaker 2: don't have the cash. They didn't. If you paid cash 496 00:31:37,280 --> 00:31:39,760 Speaker 2: for a million dollar house and it's time to sell 497 00:31:39,800 --> 00:31:43,240 Speaker 2: it and you've got, you know, twelve million in your 498 00:31:43,560 --> 00:31:46,000 Speaker 2: retirement account, you may say, you know what, I put 499 00:31:46,040 --> 00:31:48,120 Speaker 2: down one point two. I want to get that cash back. 500 00:31:48,160 --> 00:31:49,960 Speaker 2: I want to put it in pallunteer stock or in 501 00:31:50,080 --> 00:31:52,920 Speaker 2: video or whatever else. We're not using it. The kids 502 00:31:52,960 --> 00:31:54,920 Speaker 2: are off to college. It went well, but we don't 503 00:31:54,920 --> 00:31:57,959 Speaker 2: need it anymore. You can sell your one point two 504 00:31:58,040 --> 00:32:00,120 Speaker 2: for one, take a loss of two hundred thousand and 505 00:32:00,160 --> 00:32:02,360 Speaker 2: an active trader has done that before. That's not going 506 00:32:02,440 --> 00:32:04,240 Speaker 2: to be the end of the world. But for a family, 507 00:32:05,080 --> 00:32:06,960 Speaker 2: they got all that money locked up in it. So 508 00:32:07,120 --> 00:32:10,840 Speaker 2: now you've got people sitting on a property that they 509 00:32:10,880 --> 00:32:13,720 Speaker 2: can't sell for the price they need and they just 510 00:32:13,760 --> 00:32:17,160 Speaker 2: sit there intransigent. Their realtor, Jana Gmava is saying, you 511 00:32:17,360 --> 00:32:21,040 Speaker 2: got drop the price. This isn't true for Rick Doak, 512 00:32:21,240 --> 00:32:24,920 Speaker 2: who does the country properties Chapel Hill and Belleville, because 513 00:32:25,280 --> 00:32:28,480 Speaker 2: those communities are still booming. But for people doing inside 514 00:32:28,480 --> 00:32:32,640 Speaker 2: the Loop and inside the Beltway, that is exactly what's happening. 515 00:32:32,680 --> 00:32:34,920 Speaker 2: That is happening to at oh I got to close 516 00:32:34,960 --> 00:32:38,479 Speaker 2: with this. Anise Porker, bless her heart, she has kissed 517 00:32:38,560 --> 00:32:42,160 Speaker 2: Rodney Ellis's ass. She says, kudos to my county Commissioner 518 00:32:42,280 --> 00:32:46,000 Speaker 2: Rodney Ellis for engaging constituents about up about looming Trump 519 00:32:46,000 --> 00:32:49,440 Speaker 2: cuts that will hurt Harris County families at his budget 520 00:32:49,440 --> 00:32:53,600 Speaker 2: town hall. Commissioner Ellis is a thoughtful, strategic, and bold leader. 521 00:32:53,840 --> 00:32:56,920 Speaker 2: We're lucky to have him on our side. Dear God, 522 00:32:57,880 --> 00:32:59,440 Speaker 2: you know what that reminds me off? 523 00:33:00,720 --> 00:33:03,760 Speaker 4: Do you really want to apologize? Are you sure? Yes, 524 00:33:03,800 --> 00:33:10,080 Speaker 4: absolutely very well, if you want to apologize, I will accept. Huh, 525 00:33:10,080 --> 00:33:12,840 Speaker 4: thank you, mister Jackson, Thank you, Brian. Get a picture 526 00:33:12,840 --> 00:33:18,520 Speaker 4: of mister marsh apologizing. Ready to go, sir, kiss it? Huh, apologize? 527 00:33:19,200 --> 00:33:23,120 Speaker 5: Kiss it? You want me to kiss your that's right. Apologize. 528 00:33:24,240 --> 00:33:34,120 Speaker 5: Oh okay, I'll see her apologize. 529 00:33:39,480 --> 00:33:41,440 Speaker 2: I hope his ass is the only thing she has 530 00:33:41,480 --> 00:33:42,880 Speaker 2: to kissed. His endorsement