folks these home builders continue to do massive price cuts on the US housing market and in this video I'm going to tour you around a home building site here in Texas so you can see just how much they're cutting the prices and I want you guys to see the proof and the evidence right here look at all these four sale signs we have in this community here in Frisco Texas and some of these homes behind me they've been on the market now for several months and these Builders are doing $150,000 price Cuts particularly on this house right behind me it's a three bed two bath the Builder originally had it listed for $749,000 they've cut it to 599,000 and you can see pretty much all the homes here in this stretch with all the four sale signs also over here they all have big price cuts and despite that they're still building even more homes folks these Builders they're not deterred yet in this housing market we have another new house here uh on the corner apparently this one's sold it's from Toll Brothers and what's absolute Wild is just how many homes these Builders have for sale across the US housing market there's almost 120,000 completed spec homes on the market that's the highest level since August 2009 and suggests that these Builders are going to be driving down values in many different housing markets Across America and this is really interesting because we keep hearing all this uh narrative about there being a housing shortage in America a lot of people in the mainstream in real estate like to talk about this they say we're 3 million homes short we're 5 million home short short and it's this supposed housing shortage that's the reason why prices haven't gone down in many parts of America but as you can see folks that's a lie there is no housing shortage if there was a housing shortage we wouldn't have the most Builder inventory that we've seen in 15 years rather we have an affordable housing shortage and the price ranges on these houses folks are pretty expensive the lowest price house is around 550 600 Grand the most expensive house in this neighborhood goes up to over a million and the monthly payment on these houses is absolutely insane if you take even the cheapest one where they just cut the price 150 Grand your monthly payment after mortgage taxes Insurance HOA would be $4,200 a month and if you were to buy one of these nicer houses for a million dollar your monthly payment would be close to $8,000 or $99,000 a month I mean I don't know how people are affording these homes here in this ZIP code in Frisco where the median household income is $170,000 a year absolutely Skyhigh incomes here prices are still up 1.7% per year across the market and there's an increasing disparity occurring in America between areas that are wealthy and areas that aren't wealthy this is showing up in home prices like here in the Dallas Metro prices are still going up in the wealthy areas to the north they're going down in the uh poor areas to the South and the East but this is something we're just seeing everywhere across the economy so there's a new report today from The Wall Street Journal talking about how the top 10% of earners in America are now accounting for 50% of the consumer spending you heard that right folks the top 10% accounts for half the consumer spending 30 or 40 years ago the top 10% only accounted for about 36% of consumer spending so we are facing unprecedented times in how uh well certain segments of society are doing and how much certain segments of society are supporting the economy basically the only reason the economy hasn't crashed is because wealthier people who own stocks and bought up the homes 10 15 years ago they're doing exceptionally well so they're just spending more money taking more vacations buying in some cases second and third homes buying new furniture um going out to eat all the time that's what's driving the economy right now while um everyone else is just kind of stuck in place and this Wall Street Journal article had a crazy statistic everyone it was showing that the growth in spending by different uh income brackets and it was showing that the bottom 80% of Spenders have only increased their spending 25% since the pandemic started basically just accounting for inflation there's been no actual increase in spending on the quantity of service and goods from the lower 80% adjusted for inflation however the top 10% has increased their spending 58% since the pandemic far outstripping inflation and this has a host of ramifications on the economy on one hand it explains how things haven't crashed yet on a economic basis across the country right while prices might be going down in Texas and Florida for homes and while certain segments of the economy are struggling like in Tech um we haven't seen a widespread crash and it's due to this consumer spending from the top 10% of the population however it also suggests that the economy is on unstable footing because you have to ask the question well then what happens if stock prices go down what happens if home prices go down like by say 20% on both stocks and home prices that would crush the consumer spending of the wealthiest 10% of the population there'd be a negative wealth effect and all of a sudden you would see a lot of the people who are supporting the economy just cut back even a little bit and that would cause big big issues so I'm not a fan of how our economy in America is becoming increasingly reliant on a smaller and smaller segment of people to support it itest that things are unstable and there's more inherent risk in the economy than is obvious on the surface as we walk by more of these homes folks this is like you know a straight up luxury Texas Home Building Community you know you could see a lot of these homes uh probably around four beds for this house I would bet four bed three bath probably around 3,000 square ft maybe 850 Grand and what's amazing is that just across the street there's just all this land and So when you buy a home in Texas Texas everyone understand this you might like Texas for the freedom you might like Texas for the politics you might like Texas because you don't pay any state income tax but if you buy a house in an area that's more Suburban or rural you can bet that the builders are going to be coming next door and building a similar house down the line now I happen to really like Texas I lived in Texas for 2 and A2 years I lived in Dallas I lived in Austin I think Texas is a great place to live no state income tax the people here are friendly uh there's lots of options to go out to eat there's lots of options for entertainment you don't have to deal with the same climate risk you do in a state like Florida however it is kind of a generic place especially Dallas the Dallas Metro where I'm staying right now it's a lot of houses just built right next to each other you got like seven or8 ft in between I mean imagine that everyone paying 600 Grand to a million dollar for a house and then just having like I don't know 8 ft 10 ft between you and your neighbor and basically no backyard that's the backyard we're looking at the backyard quote unquote of these houses there's there's no grass it's just a patch of dirt with some Mulch and uh no real space and I got to tell you everyone the Texas housing market is Shifting and shifting rapidly we now have over 100,000 homes for sale in the resale Market across Texas data on rev TR shows active listings are now almost 103,000 was in the month of January we're going to update this data soon for February but what's interesting is if you go back to 2017 you can see we haven't seen this level of inventory in Texas for at least eight years this is the highest level of Supply in 8 years and so if you are a prospective buyer in Texas understand that that's good news for you it's becoming more of a buyer's market you're going to see more price Cuts as the year goes on you're going to see value start to drop maybe even potentially in a nicer neighborhood like this but the counterweight to that is how much could these values drop because you know here in Frisco for instance the typical value of a house was around 400 Grand before the pandemic and now it's around 650 to 700 Grand I mean you could see the massive spike in home prices in Frisco since the pandemic and it's kind of leveled off since then but you know the incomes while they're high here they haven't gone up that much uh either and so you know the prices are pretty over overvalued compared to their long-term Norms this used to be an affordable place to live this used to be an affordable place to buy a house it is no longer an affordable place to do that and I you know I question how sustainable that situation is because the areas in America that are consistently expensive and manage to maintain how expensive they are typically are places where there's a shortage of housing where there isn't enough room to build where there's Supply constraints I'm talking Southern California I'm talking New York City or Boston uh or even parts of Southern Miami those places are really expensive because there's just no Home Building there's no new Supply but Texas and Frisco isn't like that everyone there's plenty of land to build new homes and these Builders continually to throw continue to throw up new homes left and right while doing big big price cuts on them so understand this uh there is some risk to buying in Texas's housing market right now even if you get a good deal the prices could drop by more after you bought but folks I'm going to show you something a little different right now I just drove to another Home Building site here in Texas and you're not going to believe what the Builder lenar is selling these houses behind me for you can see there these like shotgun style two-story homes they're three bed three bath 1,200 square ft these houses are listed on the market right now for $230,000 that's like one of the lowest prices I've seen for a new build in years and monthly payment if you were to buy one of these puppies would be around, 15,600 a month which is really cheap really affordable in today's market and you can see Lenard they're building a lot of these smaller shotgun style homes we're in a town called Providence Village North of Dallas now we're about an hour and 15 minutes from downtown Dallas uh drive at rush hour right now so you are out in the Boondocks here there are literally cows across the street that I saw driving in you can almost hear them actually in the background so this a really rural location but I wonder how many people would actually be willing to move out here to buy a cheap house the interior renderings look pretty good and actually the median household income here in this ZIP code is also over a 100,000 so we have a lot of wealth here in North Texas I think the builders are driving down the prices however with such high median incomes it's unlikely that there's going to be a major crash interestingly values in this ZIP code are going down already data on Revenge ra is showing they're down about 1.5% year-over-year and what I encourage a lot of you guys to do at the end of this video is download the reventure mobile app because for free you could see the home value growth year-over-year that's one of the free features when you download the mobile app there's some other things you need to pay for how we seeing those home price trends already in your ZIP code is really really important and yeah I don't know folks 230 Grand I saw something similar to this from lar in Florida a couple weeks ago I drove up to Okala there was a townhouse development where they were selling these town homes for around 230,000 and so I think of all the builders lar is cutting prices the most right now I think their average selling price is down around 15% from peak in Texas it's down by over 20% from Peak now one thing I got to say it is very quiet and peaceful out here everyone I think this is one of my favorite aspects of Texas is that when you come to Texas you feel like you know you're safe you feel like you're surrounded by space and you feel like you know feel like things are pretty settled and there's a lot of nice rural areas in Texas I know for some of you you might not want to live in a rural area but there's certainly uh if you're someone who likes that having open space lots of land where You Could See For Miles this might be a place to consider all right everyone so I just took a right out of that Home Building Development walked about 300 ft and this is what we got we got cows everywhere like you are in the middle of nowhere here and I think for some of you that might be a good thing I think some of you might like more space more peace and quiet I grew up in the country in the middle of nowhere lots of cows around where I grew up in Upstate New York so I'm kind of familiar with this I think some of you out there if you live in a city you might be looking at this and saying like who would ever buy a house up here however that's Texas for you everyone there's a lot of open space a lot of pasture land a lot of cows and some pretty cheap houses if you want to go for a pretty far drive however let's get back to Frisco for a second as you can see folks we got more for sale signs here more homes for sale I believe these are some other FL plans that have those big $100,000 price Cuts three bed two bath around ,800 Square ft for around $600,000 you know you could tell these are actually some pretty nice um new builds like you look at the interior pictures these are pretty high-end this is not your standard cookie cutter DR Horton new build home Community it's much nicer than that there's more diversity going on with you know the architecture and the Aesthetics and like I said the incomes of the people that live here are really really high just walking around I've seen multiple Porsches in fact I've seen like three or four Porsches and So when you buy in a community with uh people who have really high incomes that typically means the values will be more stable in the long run like the prices might correct a bit but we're not going to probably see a a 50% crash here right like that's just not going to happen when you have such an affluent uh homeowner population in fact if you go back to the 2008 housing crash here in Dallas it's very interesting prices in Dallas went down about 10% on average during that crash but it was very mixed like here in fris or Plano the prices didn't drop but south of Dallas the prices went down 40 or 50% in Fort Worth the prices went down 40 or 50% so that highlights how important it is for you as a home buyer to do this specific research on your city and zip code uh and not just rely on Metro and state-based statistics because there's a lot of differing factors that are going to determine where value head in the future depending on your micro location you could see we got even more new building going on over here as I go deeper into this site we have another Toll Brothers uh for a sale sign Toll Brothers now they're the biggest luxury builder in America I think they're around a top 10 Builder overall in terms of production but they're the biggest luxury Builder I think Toll Brothers average sale price is around a million dollar for their for their homes across the US they just had an earnings release uh last week told Brothers released earnings and they gave some warnings actually about housing demand their stock went down five or 6% after market trading they were warning that demand was softening in certain markets especially in Florida and so while the luxury buyer in the luxury household has propelled this economy maybe there is starting to be a Slowdown maybe some of that demand is starting to slow with the Toll Brothers earnings report being of the first warnings now I'm curious folks would you guys buy a house in a neighborhood like this like say this was in your budget you know 600 Grand to a million I know that's not going to be in the budget for some people but say it was would you buy in a community like this like this is probably one of the better looking Home Building developments I've shown you guys in recent months but it still is a New Home Building Development right like you're going to buy a house and then they're going to be building a house next to you there's going to be construction trailers and trucks and like I said they're going to over there they're probably going to develop that plot of land in the next year as well or would you guys prefer living in a more unique location let's say closer to an urban area or a neighborhood with more character like in Dallas there's some uh neighborhoods with a lot of character close to downtown you have uh Lower Greenville as one of them you have Bishop Arts District you know there's a lot of areas that are a little bit more hipster with more coffee shops more uh lifestyle amenities and of course you also have in Dallas Highland Park and University Park those are two of the wealthiest areas in America in Highland Park the prices are still going up everyone you know the homes there in Highland Park are like $10 million prices are still going up I don't even know uh who's buying those homes uh you go down to Highland Park it's like a 10,000 foot house for $10 million the property taxes alone are hundred grand a year but yeah I'm curious what type of area or neighborhood would you want to buy in and I'm curious are you seeing the prices drop in your area right now because uh the housing market in 25 is off to a really weak start like this is undeniable all of the mainstream real estate reporting right now Zillow redin Wall Street Journal they're all showing you they're all saying that the housing Market's slowing and we're seeing lots of price cuts for early in the in the buying season so we're still in February I record this video at the end of February um the price cut rate for February is really really high like red fin is showing we have the highest price cut rate for February in a long time potentially on record off the double check that so the sellers are getting uh started early this year and cutting prices and if you all want to do more in-depth Research into your local housing market and in particular understand where prices could be heading in your city and zip code head to ww. reventure doapp and sign up for the Premium plan so you can get access to our home price forecast score as well as advanced data points like overvaluation long-term price growth price Cut Rate and cap rate these premium data points will help you as a home buyer investor make a better Financial decision with buying a house in 2025 and give you more insight into the trends in the market a Premium plan on reventure app costs $39 a month and is build monthly or you could sign up for the annual plan at $399 a year which is a 15% discount and is a great option for those who know that they're going to be doing some research on the housing market over an extended period of time prior to their purchase