HOUSING MARKET WILL GET DESTROYED! PRICES DROPPING FAST! Housing Market Crash -Tall Mike Talks

Added: 2026-05-30

[00:00:01]Whoy who all my stock market gamblers, welcome today. I'm Tom Mike. I'm so glad you're here. WHAT DO WE GOT GOING ON?

[00:00:09]WELL, THOSE MARKETS want to just hold AT THAT RECORD HIGH. It cracks me up when people leave me comments that it is impossible for this market to come down.

[00:00:20]Especially when the Donald's in there, he's going to hold this market up.

[00:00:24]That's how he measures his presidency.

[00:00:26]I'm telling you, it's not up to the Donald. PEOPLE SAY, "BUT MIKE, YOU DON'T UNDERSTAND. THERE'S the plunge protection team. IF THIS MARKET DROPS, THEY'LL COME IN AND buy it." YOU DON'T UNDERSTAND. THERE'S THE QUANTITATIVE EASING. IF THIS MARKET DROPS, THEY'LL MAKE MORE MONEY, RIGHT? They will lower interest rates to 0% IF THIS MARKET DROPS. THEY WILL ADD MONEY to the money supply. IF THIS MARKET DROPS, IT IS COMPLETELY impossible for this market to come down. And once again, that would not be my take. MY TAKE IS THIS MARKET will drop. This market will come down.

[00:01:03]We'll see how long it takes for that to happen, but this bubble will break also.

[00:01:08]All right, let's get over to the real estate side of things. I want to talk a little bit ABOUT THAT BECAUSE A LOT OF PEOPLE really think the same thing about the housing market. They think there is no way the houses could ever come down, especially not in your area cuz you live in a great area where there's no death, no divorce. No one ever loses a job and people want to live there. So the houses just go higher and higher. That's a possibility for your area. But here's the thing. Here's the thing. We got foreclosures now. Foreclosures are starting to increase. Why? Why are they starting to increase? Well, because April, April was the slowest selling month in the housing market since the great financial crisis, right? So, they can't get it sold regular way. So, they lose, they don't have time, they can't wait. You see, a lot of times it's a rush against the foreclosure. They get the foreclosure notice, they contact me like 30 days before they're getting kicked out by the sheriff, and sometimes that's not enough time to get the property sold at a reasonable price. So, I've seen properties that have missed it by a day, missed it by two days, the sheriff comes, they didn't get it sold in time, lost all their equity, right?

[00:02:20]Their equities completely wiped out.

[00:02:22]We're going to talk about home equity in a little bit here. But let's talk about foreclosures. Foreclosures are going higher, right? They're going up. There's more and more of them, but it's still relatively low. But here's the thing.

[00:02:33]People don't get this. See, the housing market is priced on the margin, right?

[00:02:38]It's priced on the margin. Everybody doesn't have to sell houses for houses to take a big drop. No, no, no. Look at in the great financial crisis, what percent of homes were actually foreclosed upon? Less than 4%. Less than 4%. We got well over 10% right now behind on their mortgage. They would be eligible to be foreclosed upon. That would be more than 4%. Now, that 4% foreclosure rate transferred into a 34% drop in the price of houses. But people don't understand about the margin, right? So let's say you live in that great area, right? And you paid 900,000 for your house. You got a great deal because RIGHT NOW IT'S ALL THE WAY UP TO A MILLION DOLLAR. But all of a sudden you get a foreclosure in your area and the foreclosure goes for $750,000.

[00:03:29]HOW IS THAT POSSIBLE? MY HOUSE IS WORTH A MILLION AND THEY SOLD MY NEXTDOOR NEIGHBORS FOR $750,000.

[00:03:38]WELL, guess what? Your house is not worth a million anymore. You will be lucky to get 800,000. Now, keep in mind, you took out a loan for 9 you bought for 900,000. You got a loan for 850s and you got 800,000, right? You're going to lose a lot of money. You're going to have to bring money to the closing table just to get out of your property because houses trade on the margin. Your neighbors goes for 750. Guess what? That's now the new comp for you. You are NOW AT 750. BUT MIKE, MY HOUSE IS WORTH A MILLION DOLLARS. WELL, here's what happens.

[00:04:12]Someone comes in and they offer you, let's say, $950,000 for your house, right? They come in and then the appraiser comes out cuz they're getting a mortgage. They got a mortgage from a bank. Appraiser comes out and it says that 950, but he sees the comp at 750.

[00:04:27]He's not going to appraise that. Your deal is going to fall apart. So, you put it BACK ON THE MARKET and you get 900,000. Same thing happens until you get down to about 800,000 if someone comes in. Maybe someone will come in with all cash at a million and you'll be fine. But it doesn't work that way. 80% of houses are bought by mortgages, right? So when these foreclosures start to pick up and one happens in your neighborhood, it pushes the whole neighborhood down. Once again, it's sold on the margin. That's a problem. Right now, here's the thing. Here's the thing.

[00:05:01]We're getting into some interesting times now. There's actually some deals out there in the housing market. I'm tall Mike doesn't tell you that. Tells you to sit back and wait. Sit back and wait if you're shopping for a house.

[00:05:12]Right. Right. Okay. Lot most people they go out and they shop for a house. That is the wrong way to do it. What you want to do is go out and shop for a seller.

[00:05:22]Shop for a seller. Now, I call them desperate sellers, but us realtors, we're supposed to say sellers motivate.

[00:05:29]KNOW THE SELLER'S DESPERATE. THEY HAVE TO SELL OR THE BANK'S going to come and they're going to be one of the foreclosures. So, some of those that bought at 900,000 are willing to sell down here at 800,000, maybe even at 700,000 depending on where the foreclosure is in their area. But you got to shop for the seller, not shop for the house. Everybody wants the pretty house, right? The one that just got listed yesterday. They're calling me up on the phone. Hey, Mike, you think they'll TAKE 30% LESS? NO, I DON'T THINK THEY'RE GOING TO TAKE 30% LESS BECAUSE THEY LISTED YESTERDAY. THEY GOT IT STAGED. They got it looking pretty. They think they're going to get the full price that Billy Bob got. Well, they're probably not going to get what Billy Bob got, but they might get close, right?

[00:06:12]But the houses you want to look for, you want to shop for the seller. How do you do that? You find houses that are sitting vacant, right? They've already moved out, so they're kind of less attached to the house. Most people are attached to their house. their house is WORTH MORE THAN EVERY OTHER HOUSE ON the block. Why? Because it's their house.

[00:06:31]But once they move out, they get a little bit detached from the house, no longer their house. Now, if they moved out and they have a mortgage on the house, then they have a problem, right?

[00:06:41]Cuz they're paying the mortgage on this vacant house and they're paying rent or another mortgage wherever they're living. So, if they've moved out, it's been sitting there for 60 maybe 90 days, they're going to look at those lower offers, right? They're going to look at 20%, 30% off, and they're probably going to counter offer, but you just can walk away, sit back, and they may COME BACK.

[00:07:03]OH, BY THE WAY, we'll take your offer.

[00:07:05]And you go, well, my offer expired now.

[00:07:07]My offer is a little bit lower. You see, when you shop for the house, you can actually get a good deal even in this marketplace right now cuz things are turning, things are changing, things aren't selling, people are getting desperate, right? because the foreclosure man is coming to give them the foreclosure notices, right? And then the sheriff's coming to kick them out.

[00:07:29]They got to do something. They would be known as the desperate seller, not the motivated seller. But it's fascinating.

[00:07:35]I said we're going to talk a little bit about Well, let's talk about the home equity, right? I mean, home equity. We got in this country alone, we got $30 trillion of equity in homes. That includes people that have mortgages. And then the equity above it, that includes people that own their house free and clear and don't have any mortgage at all. So, home equity about $30 trillion.

[00:07:57]It's fascinating to me how these sharks are coming after your equity. I mean, they're really coming after, right?

[00:08:04]Okay. So, there's people that do HELOC loans, right? Let's say you bought for a million dollars and you got 700,000 mortgage. Well, you got 300,000 equity.

[00:08:13]You'd like to get that out, BUT YOU CAN'T REFINANCE CUZ YOU'RE LOCKED IN, RIGHT? YOU'RE LOCKED in at that 2.8%.

[00:08:20]So, you can't refinance it. You'd be up here at 6 and a half 7%. So, you do not want to refinance. So, you go look at the HELOC loan. You know, huh, Helocks are 10 12%, right? Okay. Well, maybe.

[00:08:34]But what they come after you with is the home equity agreement. That's what they call it. It's home equity investment is what it is, right? What they do is they come and they contact you and they say, "We'll give you a lump sum of cash." So, okay, so you got a your million-doll house, you owe 700,000. We'll give you $100,000 in cash for onethird of the appreciation, future appreciation of your house. You go, "Wow, I don't expect houses to go up that much. I think I'll do that." Right? So, you take that $100,000 and then down the road, you kind of ran through the $100,000. You went and spent it. You did a remodel.

[00:09:12]You bought stuff. You went on vacation.

[00:09:14]You got a new car. That $100,000 doesn't go that far today. Why? Because we GOT THAT INFLATION RUNNING HOT. ALL RIGHT.

[00:09:21]SO, you spent the $100,000 and now you go, "Wow, I really got to get this equity out of my house, but I owe them $100,000." Huh, that's interesting.

[00:09:30]Well, I'll just put it up for sale. So, you put it up for sale and you get an offer at $900,000. You owe 700,000. You owe them a h 100,000. But when you go to pay them, guess what? It's no longer a h 100,000. Now it's 200,000. How do they do this? They are sharks. They get around the banking system, right? This is the way that they're stealing your equity. They're coming after your equity. And a lot of people are getting hurt by these home equity agreements is what they're called. They're way worse than a heliloc. I don't like the heloc.

[00:10:01]I don't like the reverse mortgages either. The but this is the worst of the worst. I mean they are just gouging you.

[00:10:07]They are just use usery interest and then some because they're now a percentage homeowner. They're actually an owner with you. So you have to have their agreement and to get their agreement they're charging you that extra 100 grand and they should all be locked up and thrown away. That's just my take. But they're coming after your equity right now. What's really fascinating is I get all these commercials. You probably do too when you watch this YouTube channel. You probably get those people up. Hey, I want to buy your house. get a fair offer. No realtors, don't have to fix it up. Don't have to do the repairs. Just I'll come out there and GIVE YOU AN ALL CASH OFFER. WE CAN CLOSE within a week.

[00:10:46]You probably seen those ads, right?

[00:10:48]Well, look at those ads. They're offering you 30% below what the market value. So, if your market value is a million, they're offering $700,000.

[00:10:57]Now, of course, they got fix up costs and they got to pay the realtor when they go to sell it, but they're still making over $150,000, maybe even $200,000 on the deal. I've seen some deals in my area where they're making $600,000 to a million dollar because they found that unsuspecting seller that sold them to him dirt cheap. One of my buddies is so sad. Anyways, his house is worth about a million6, a million7, and he accepted $900,000 for it because he getting foreclosed on and he waited too long. He was out of time, right?

[00:11:29]Anyways, he he made a deal with the devil. He took $900,000. Less than two months later, they sold it for 17. Oh, my friend still sick about that. But that's WHAT'S GOING ON. YOU GOT TO BE CAREFUL WITH YOUR EQUITY because there's $30 TRILLION OF equity right now. Now, that's going to get probably chopped in half down to 20 trillion, down to 15 trillion when this housing market comes apart. Maybe even gets chopped down to where we're all underwater. We'll see how that plays because you can be underwater even with the paid off house because the government's going to be property taxing you so high because the government doesn't have any other way to get your assets right. THEY WANT YOUR ASSETS. THEY need the money. Look at our government's insolvent. They're broke.

[00:12:09]They need the money, right? So, they're going to come after you all. So anyways, be very careful with your equity. Now, a lot of you are saying that you are never ever going to sell, right? Because you're locked in. They took a poll. Over 50% of people say they'll never sell their house because they're locked in at 2.8%. So, they're just going to write it down and till they're underwater on their mortgage and then well, the bank will come and take it from them, but they're saying they're not going anywhere. Now, it's interesting. 23% of people that were pulled said they'd go ahead and sell if rates could drop below 5% again because that means they could sell their house and lo lose that 2.8% and when they go buy another one they'd be paying 4.8%. They're 23% of the people are willing to do that. Now only 9% are willing to do it if it drops below 6%. But anyways over half the nation is claims they're never going to move again. Right? Half the homeowners in the nation are never going TO SELL BECAUSE THEY'RE LOCKED IN AT THAT 2.8%.

[00:13:07]SO, they're just going to circle the drain when this thing blows up. And we're really close to it blowing up.

[00:13:12]It's coming down, coming down. Sales are just so slow. So slow. Something's got to give, right? The foreclosures are coming on, coming on, coming on. And they're just inventory piling up, piling up, piling up. But the prices, they don't want to take less than what Billy BOB GOT. BILLY BOB SOLD UP HERE. BILLY BOB'S A GENIUS. you're not going to get his price anymore. That's just my take.

[00:13:33]I think prices are going to come down.

[00:13:35]And I think they're going to come down more than the 34% that they came down in the Great Financial Cris. Now, the Great Financial Crisis, it's interesting.

[00:13:43]Let's just say there were 4% foreclosures and we dropped 34%. Now, the Great Depression, during the Great Depression, about 10% of homes were foreclosed upon, but they only dropped 25% in the Great Depression. Now, why is that? Well, you see, here's the thing.

[00:13:58]Most people bought all cash. So there's a lot of free and clear owners that did not get foreclosed upon. Anyways, even the ones that got foreclosed upon were required to put 50% down. 50% down. So that's why you did not have as big a drop as we did in the Great Financial Crisis. 25% in the Great Depression, 34% in the Great Financial Crisis. Tom Mike says this next time will be 40% maybe even 50% in some areas. There's already houses that are selling 50% off of what they were last bought for. Very fascinating. Things are changing quick in the housing market. Of course, not in your area. It only goes up. And I get that. I get that. You're a great area.

[00:14:39]ANYWAYS, IF YOU LIKE THIS STUFF, GIVE ME THE THUMBS UP. PUNCH THAT SUBSCRIBE BUTTON. GET OUT THERE. Everybody have a great day. We'll talk again real soon.

[00:14:47]Bye-bye now.