Dave Ramsey: 2 Reasons the Housing Market Won’t Crash Anytime Soon
Never one to shy away from honest advice, Dave Ramsey firmly explained his thoughts on a so-called housing market crash. On The Ramsey Show, the popular finance guru sternly told a recent caller, “You guys need to get off the internet,” when he inquired about whether to sell his house that was purchased at a 2.5% interest rate because of concerns the market would crash.
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While the market has cooled since the surge in prices during the pandemic, Ramsey — who has a Bachelor of Science degree in finance and real estate and has been investing in properties for decades — explained why people shouldn’t worry about a crash.
Don’t Believe the Internet Hype Machine
Not everything published online is accurate information and Ramsey reinterated as much when he posted the clip of the call regarding the rumored market crash on X. “Right now, today, in most major markets, homes that are on the market are getting multiple offers,” he wrote in the caption. “It’s far from a crash — quite the opposite. Don’t believe everything you read on the internet.”
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Supply and Demand Never Sleeps
In another episode of The Ramsey Show, The New York Times best-selling author explained that since interest rates went up, people have begun to indicate they’d wait on the sidelines for the market to crash — and for houses to go down in value, which would then be the time to buy. Ramsey said that was not logical thinking, largely because of the forces of supply and demand.
“If there’s not a shortage, prices go down. When there is a shortage of an item or a service in the market, prices go up,” he said. “That’s basic economics.” He added, “There is less inventory of homes for sale versus the number of buyers today than there has been in 25 years. There is a shortage of housing versus the demand.” He emphasized that there is “zero chance” that house prices will go down during that time.
Ramsey’s Housing Market Predictions
“We’re starting to see some supply come back to the market,” Ramsey told viewers. “We’re also seeing buyers come back into the market that were sidelined waiting on interest rates to go down, or waiting on the crash.”
Taking a victory lap for being right, Ramsey gloated, “Prices went up, they didn’t crash. You [market pessimists] were wrong.” Not only did prices shoot up, but they’re also up at an all-time high, he noted — indicating that $379,000 is now the median home price in America.
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