'You were wrong!': Dave Ramsey takes a victory lap on his real estate prediction from 2 years ago and makes another prediction about what's next for housing

“You were wrong!” he said of his critics, adding, “I freaking know what I’m talking about.”

Here’s why Ramsey wasn’t convinced by the gloomy outlook on housing.

Supply crunch

When the Federal Reserve started raising interest rates in 2022, many were concerned that higher borrowing costs would reduce home sales and prices.

However, Ramsey claims he was skeptical of these concerns and was instead expecting home prices to remain steady or rise modestly. His thesis was based on simple supply-demand dynamics.

“When there is a shortage of an item … prices go up,” he said. “That’s basic economics.”

This theory seems to be vindicated by a report from the National Association of Realtors. Home prices climbed 5.7% over the past year as of February, with the median American home being worth $384,500.

A combination of rising prices and rising mortgage rates has made home affordability deteriorate. In 2023, only 15.5% of the homes available for sale could be considered “affordable” by a household earning a typical income, according to data analyzed by Redfin.

Unfortunately, Ramsey says, he doesn’t see an end in sight for this housing crisis.