Housing Market Update 2021: The Fed Changed EVERYTHING! Just three days ago, the Federal Reserve announced something that may have changed the current state of the housing market. On March 19th, the Federal Reserve released a statement stating that April 1st, big banks calculation of the SLR will be altered and won't be able to exclude Treasuries. So this begs the question, will this trigger the domino effect that will lead to a housing market crash, potentially worse than it did in 2008? So in this video we will unpack what that all means for a housing market update and how the Federal Reserve can effect the outome of a 2021 housing market crash! 0:00 Intro 0:57 Statistics comparing housing markets 2020 and 2021 2:28 The Federal Reserve & Statutory Liquidity Ratio 2:53 Example of SLR 3:13 Context of the housing market and SLR 3:50 What the Federal Reserve announed & what it means to the housing market 2021 5:52 Is there a potential for a housing market crash in 2021? Just when we thought that the housing market in 2020 couldn't get any hotter, welcome to the housing market in 2021! So far the housing market has been even hotter! We are seeing record lows in foreclosures and inventory in the housing market, even lower than last years housing market! Along with seeing record lows for mortgage rates being broken time and time again all throughout the last 12 months. And it seems we're at a point in the housing market where unless you are willing to pay 20k over asking price, you are just going to get kicked to the curb in the 2021 housing market. As a matter of fact, sales of existing homes skyrocketed 9.1% compared to the same month of last year. The supply of homes for sale in the 2021 housing market fell 29.5%, the largest annual decline ever in the history of the housing market. Median home prices were up 15.8% in Feb. compared to last year, breaking the record for highest median sales price for that month in the housing market. But of course having said all of that, we all know that this type of growth absolutely cannot be sustainable (especially in the 2021 housing market) and eventually the market has to correct itself. Now whether that's in the form of a giant crash or a slower decline....that remains to be seen for the 2021 housing market. This leads us to talk about what the Federal Reserve announced last friday, altering the SLR and further changing the outcome of the 2021 housing market. Statutory Liquidity Ratio is the reserve requirement commercial banks are required to uphold at all times. So what does this mean for borrowers, especially ones who have some skin in the game when it comes to the housing market? Flexibility of lending. This flexibility was given to the commercial banks so they could provide temporary credit and help families/businesses during the pandemic and it will expire at the end of March. Now big banks are obviously a big factor in the housing market. Now historically speaking, there is an increase in short sales and notes being called due during a liquidity crisis in the housing market. And with 3 million Americans still in mortgage forbearance, this can cause a huge concern in the hosuing market 2021. Rising treasury yields will cause mortgage rates to increase causing people to not be inclined to borrow for the housing market. 😃 Thanks for Subscribing & Liking our Video! 📧 ⌨️ FREE 7 Day Trial To PropStream Real Estate Investing Software: http://reisoftware.thekwakbrothers.com 📊 Pay Off Your Mortgage In 5-7 Years (On Average): https://www.youtube.com/watch?v=eGVn9iq1e6c 💻 JOIN OUR FREE FACEBOOK GROUP FOR LANDLORDS & PASSIVE INCOME: https://www.facebook.com/groups/bestreigroup 📡 PROTECT YOUR ONLINE DATA AND ACTIVITY WHILE CLOSING DEALS AND GENERATING NEW LEADS WITH NORDVPN: https://go.nordvpn.net/aff_c?offer_id=15&aff_id=40858 🔊 Our Podcast: 🔹Spotify: https://open.spotify.com/show/7pnHJSNl7vPVFzq69IzC6B 🔹iTunes: https://podcasts.apple.com/us/podcast/first-deal-experience/id1282240923 📧 Hire the Kwak Brothers to Speak: info@thekwakbrothers.com #housingmarket #thekwakbrothers #realestate ======================== ---DISCLAIMER--- The suggestions, advice, and/or opinions that are given by Sam Kwak (The Kwak Brothers) are simply opinions. There are no guarantees of set outcomes. Listeners, guests, and attendees are advised to always consult with attorneys, accountants, and other licensed professionals when doing a real estate investment transaction. Listeners, guests, and attendees are to hold Sam Kwak, Novo Elite, Inc. and the Kwak Brothers brand harmless from any liabilities and claims. Not all deals will guarantee any profit or benefits. Listeners, guests, and attendees are to view and listen to all materials and contents furnished by the Kwak Brothers as a perspective based upon experience.