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The Buyers That Are Winning The Bids After All That Frenzy Are Getting Some Type Of Buyers Remorse

A report from the Flathead Beacon in Montana. “As an affordable housing general contractor, Layne Massie is struggling to reach his goal of bringing reasonably priced homes to the Flathead Valley. The developer’s home prices have jumped an average of $40,000 to $50,000 more in the last year as lumber prices see historic highs. ‘We are not able to build affordable housing anymore,’ Massie said. ‘We’re still building and we’re still selling houses, but they’re not what I would call affordable.'”

“At Big Mountain Builders, a high-end residential construction company, owner Marc Daniels is experiencing similar difficulties. In the past year, his home prices have jumped roughly 30% to 40% because of spiked lumber prices. Montana’s lumber sales were up 15% in 2020, after adjusting for inflation, compared to 2019, according to the report.”

From Nevada Public Radio. “Home prices across Nevada continue to soar. ‘The primary reason I am not concerned about a crash is lending standards today,’ said Jonathan Gedde, CEO of SimpliFi Mortgage. ‘There is really no comparison between the lending standards of today’s environment and the lending standards in 2006.'”

“Elias Benjelloun, who is with a real estate brokerage firm that has partnered with the city of Las Vegas to increase homeownership in the Black community, said a friend of his was able to buy a home with just $700 down because she got help with the down payment.”

“Aldo Martinez, the president of the Greater Las Vegas Association of Realtors, also doesn’t believe there is a housing bubble that will burst, but he is concerned about a couple of trends in the market right now. The first is the price of new homes. He said the appreciation of new homes is concerning. Martinez said he had a client that was shopping for a new home in February, and by the time they got it in April, that price had gone up $132,000.”

“‘That is so unrealistic to me and my mindset for an appreciation on a home,’ he said, ‘That hyperinflation on the new home is really concerning to me.'”

“He believes when Las Vegas returns to full employment people who have stayed out of buying and selling because they’ve been unemployed will return to the market, softening it. ‘I think that the biggest blow to homeowners is going to be those who bought new homes during this period of high appreciation,’ he said.”

“His second concern about the market is the number of people who are ignoring good bids on the homes they’re selling to jack up the price. He said of the more than 8,000 homes that moved from being active on the market to being under contract in the last 30 days, more than 1,600 moved back from under contract to active. ‘That means that 20 percent of the buyers that are winning the bids after all that frenzy are getting some type of buyers remorse, once that offer is accepted, and they’re backing out,’ he said, ‘Or they’re making multiple offers on properties at the same time, which is not a recommended practice.'”

The Brooklyn Reader in New York. “Many people wonder how to move forward and are pessimistic about what the future may hold for themselves and their neighbors. The June 30 deadline for the rent and mortgage moratorium is approaching fast, and if we do not take action, Brooklyn is in for serious trouble. I can personally say that I witnessed thousands of homes in pre-foreclosure and nearly ninety homes per week that were scheduled to be auctioned off at the court in Brooklyn alone.”

The Orange County Register in California. “‘Builders are moving fast to buy land and get communities opened up as quickly as possible to meet today’s homebuyer demand,’ says economist Ali Wolf, who follows the new-home market for Zonda. ‘Contrary to the last cycle, home shoppers are armed with a good down payment and great credit scores. But there’s certainly a psychological component as well where people are afraid of missing out.'”

“But Wolf has ‘affordability’ concerns as the buying spree pinches house hunter’s budgets, noting ‘the biggest wildcard remains mortgage interest rates. If interest rates rise too much too quickly, that will be the straw that breaks the camel’s back.'”

“Curiously, new homes have recently become an ‘affordable’ option. In March, the regional new-home median sales price of $570,500 was up only 4% in two years compared with existing homes’ $683,000 median, which was up 27% in two years. Existing condos’ median price was $530,000, up 19% since 2019.”

The Globe and Mail in Canada. “New data released by the Canadian Housing Statistics Program show that one in five City of Vancouver property owners own more than one property, with similar levels in Toronto. The report suggests that homeowners who own more than one home – in some cases, three or four, or more – is a growing group and is concentrated in Vancouver and Toronto.”

“The data is valuable because it will inform policy, says Andy Yan, director of the city program at Simon Fraser University. He said it brings into question ‘filter theory,’ which says that the more supply built, the more opportunities for lower income people to move onto the property ladder. The theory doesn’t account for property hoarding, which might have been driving the market in the past year.”

“‘This latest rush in Canadian residential real estate, is it young people buying their first homes like what happened after the Second World War? Or is this a speculator class adding a second or third property to their hoard?’ Yan asked.”

“Urban Planning Professor David Hulchanski at the University of Toronto says that in academic circles, the phenomenon of multiple home ownership is not new but it is growing and changing. The old landlords of yesteryear might have run rooming houses as a revenue stream. Today, the options for revenue include short-term rental, or the property might serve for other family members, or they might just be ‘safety deposit boxes’ in which to store cash.”

From The Age in Australia. “Apartment building in Melbourne is set to plummet, with a respected property research company tipping the number of units completed across Victoria to plunge from more than 16,000 this year to just 800 in 2024. With lead-in times for a large apartment complex of up to five years, Charter Keck Cramer forecasts that in 2024 Victoria will build just 4 per cent of the number of apartments completed at the sector’s 2016 peak, when 19,400 were built.”

“Rental vacancies in central Melbourne have soared to 8.4 per cent – twice the rate of the broader metro region – with desperate landlords cutting rents below levels seen 10 years ago. Apartment prices too have tumbled, but not as dramatically as rent.”

“Developer Ashley Williams said his compan had faced a challenge selling all the apartments in its recently finished Botanic project in Southbank, unlike its house-and-land packages on Melbourne’s northern fringe, which were ‘selling like hot cakes.’ ‘We’ve been working with purchasers to settle those apartments and it’s been a very slow and a very tough process,’ he said. ‘We’ve got another site just around the corner which we’re ready to start marketing that we’ve put on hold while we deal with leftover stock and wait for market confidence to return.'”

“Mr Williams said the apartment sector was coming off a ‘cyclic peak’ with many large projects, often built by foreign builders and directly pitched to the overseas market, coming to market and struggling to achieve sales. He said a plunging rate of apartment construction had implications for jobs as well as housing supply.”

“‘Traditionally, the industry has had a view that slow and steady was best for everyone,’ Mr Williams said. ‘But the problem when you get these shocks to the cycle, and you have all these people working building apartments and all of a sudden there’s no new jobs, no new projects to take over. Construction jobs then, disappear, fall away.'”

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This Post Has 95 Comments

  1. ‘In the past year, his home prices have jumped roughly 30% to 40% because of spiked lumber prices’

    These people are greedy bashtards, on top of being liars. Have you ever walked through the skeleton of a shack? There’s hardly any wood in it, and what’s there is crooked 2 by 4’s and basically plywood, although they have some fancier name for it.

    A shack is a box of air!

    2. “…and what’s there is crooked 2 by 4’s and basically plywood, although they have some fancier name for it…”

      Walk into any big box home center. The quality of today’s lumber in many cases would be an embarrassment to call firewood. And don’t even get me started about the cheap Chinese junk hardware.

      Nowadays, finding quality construction materials, (including lumber) can actually be quite difficult. Specialty hardware / lumber yards and construction material businesses are about all that’s left.

      1. VA loans went from 2% of the market last decade to 12%. And they removed the cap. Unlimited shack loans for San Diego Coast Guard, etc.

    4. here’s hardly any wood in it, and what’s there is crooked 2 by 4’s and basically plywood, although they have some fancier name for it.

      There was article today in the local rag about the alleged lumber shortage. If you read the misinformation in the papers, there’s a shortage of everything; yet when I go to the store there is plenty of stuff.

  2. ‘the apartment sector was coming off a ‘cyclic peak’ with many large projects, often built by foreign builders and directly pitched to the overseas market, coming to market and struggling to achieve sales’

    Foreign? You mean Chinese builders throwing up airboxes for Chinese investors who never see the thing? Idiots.

  3. ‘the phenomenon of multiple home ownership is not new but it is growing and changing. The old landlords of yesteryear might have run rooming houses as a revenue stream. Today, the options for revenue include short-term rental, or the property might serve for other family members, or they might just be ‘safety deposit boxes’ in which to store cash’

    Click!

    After the fact rationalizing to explain away speculation.

  4. I get buyer’s remorse after eating certain things. Loaded nachos etc. To buy a house in this environment? Can’t imagine years from now. Suckas

    1. The more millennial used house buyers who have buyer’s remorse, the better. These entitled snowflakes deserve everything they’ve got coming, I wish them nothing but bad things.

      2. Yep, they’re the ones crossing the picket line and bidding up crazy prices. Sane buyers like me are on strike.

  5. ‘the regional new-home median sales price of $570,500 was up only 4% in two years compared with existing homes’ $683,000 median, which was up 27% in two years. Existing condos’ median price was $530,000’

    4% in two years? Wa about the price of plywood? Actually new shacks in OC have been below existing for a while. Which is the kiss of death. Ask New York City.

    2. Here in Orange County the HOA and double Mello Roos still make those older homes more desirable. One community next door, Tallega, in San Clemente appears to have “reasonable” for the are home prices but then have so many fees including the above plus a sports complex fee, a transfer fee of 1% you are paying $650+ a month just in undeductible fees on top of a big mortgage.

      New OC lots keep getting smaller, no drive ways, zero lot lines where you can hand your neighbor a cup of sugar through the windows, its no place to live.

  6. ‘‘The primary reason I am not concerned about a crash is lending standards today’

    Says the loan guy. Wait for it:

    ‘a friend of his was able to buy a home with just $700 down’

    ‘a client that was shopping for a new home in February, and by the time they got it in April, that price had gone up $132,000…‘That is so unrealistic to me and my mindset for an appreciation on a home…That hyperinflation on the new home is really concerning to me’

    UHS confused.

    ‘He believes when Las Vegas returns to full employment people who have stayed out of buying and selling because they’ve been unemployed will return to the market, softening it’

    Unemployed, in Las Vegas?

    ‘I think that the biggest blow to homeowners is going to be those who bought new homes during this period of high appreciation’

    Translation: yer fooked.

    2. ‘a friend of his was able to buy a home with just $700 down’

      This is the problem. I remember when I bought my first house. It was way under $100k, and I had to put 20% down as well as pay closing costs. The sheit they have going on now is a joke.

      1. My checking account is with a major bank, and they now offer 3% down payments. Apparently 3.5% was too much.

    4. Never mind the down payment.. where are they coming up with the monthly payment? You can’t “get into” a house for the interest only anymore. They must be struggling from Day 1. Either that or bank of Mom and Dad are subsidizing their 38-year-old kids every month.

      When I was in grad school, one of my classmates asked me out of the blue if my parents sent me money. I stupidly answered that my sentimental father still sent care packages and would sometimes tuck a $20 bill into the box. She gave me a dirty look and stalked off. It wasn’t until much later that I realized she was asking about regular allowances. I guess my classmates were being subsidized, while I was supporting myself on my own.

      1. It wasn’t until much later that I realized she was asking about regular allowances

        Did she marry a rich guy?

      2. My daughter has several friends from college who are beneficiaries of their grand parent’s very generous trust fund.

  7. You kidding me?

    “‘Or they’re making multiple offers on properties at the same time, which is not a recommended practice.’”

  8. ‘I can personally say that I witnessed thousands of homes in pre-foreclosure and nearly ninety homes per week that were scheduled to be auctioned off at the court in Brooklyn alone’

    These pre-foreclosure numbers have been this way for a long time and it’s all across the country.

    1. The marxist mayor of NYC sezs his city will be “fully open” on July 1.

      Wonder if that includes enforcement of contract law to include evictions for non payment.

    2. The June 30 deadline for the rent and mortgage moratorium is approaching fast, and if we do not take action, Brooklyn is in for serious trouble.

      Enough coddling of the leeches. You would think that these good Americans would save that $2400/mo + unemployment for a rainy day. Instead, they bought Dogecoin and sexitrux. And now they want us to “take action.” “Sha na na na na na Get a Job” — how does that go.

      I just checked vaccine spotter. Within this coming week, there are hundreds of vaccine appointments, for all vaccine types, within 25 miles of where I live. And that’s just Wal-Mart. It doesn’t include Walgreens, CVS, or mass vaccination sites. That give people a month to get two jabs and another month to build immunity. This is OVER.

      1. You don’t need any CCP Flu vaccine.

        Just take Tim Pool’s BioTRUST Ageless Multi-Collagen™ and BioTRUST Keto Elevate™ every day. You can also save 20% off on BioTRUST Low Carb Lite™ (available in 2 delicious flavors!)

        1. The election of 2020 isn’t the only thing being stolen.

          Your right to not live under medical tyranny is being stolen. Government agencies being weapon used against your freedoms. Commie programs that pick winners and losers. Rigged economic systems that are either Monopolies or bubbles. The IRS being weaponized if Biden gets his way.
          Fake News 24/7 and censorship of facts and dispute to the contrived narratives by Entities that want to keep you ignorant. Racism narratives designed to create division and divide and conquer. All methods designed to prevent a populist uprisings against the corrupted Government and the forces that corrupted them.

          They want top down dictorship of the populations. So, anything that represents bottom up attempt for people to rule their own life is attacked like its the one thing these powers just can’t have, based on their agendas. As if these 1% would have the best interest or Government has the best interest of the people as their motive.

          The Medical Tyranny started with Obama care , and has morphed into lock downs and mask mandates and experimental vaccines being justified, using censorship to keep the public compliant and ignorant and scared by a invisible enemy, that they haven’t even isolated under a microscope, that they use inaccurate tests to determine that you have Covid or not. That should be you first clue that your a victim of fraud.

          If the entire government has been corrupted to do the bidding of ,let’s just call them the one per centers, than there is just no end to what that kind of power will attempt using fraud as a weapon of mass destruction to usher in their agendas.

          Don’t look to Government because the Gov. Is the pawn of these Entities. So, the populations can only look to themselves to overthrow this insurrection by these inhumane psychopaths that are the masters of fraud, looting and even depopulation agendas. Do no harm is not the agenda.

          If it isn’t evident by now, than your not paying attention to this power grab of epic proportions.
          Don’t even think that they won’t seek more oppression and dictorship over peoples lives. And in reality they are the great parasites of humanity that want to control their slave like hosts. Reject, reject reject.

          4. the CDC is pushing

            The CDC is a river of money. It’s a magazine of patents and profits. The pregnant mother is a “subject”. Charity doesn’t enter into it.

          5. “…but now the CDC is pushing pregnant women to take an experimental biological agent without a second thought.”

            That’s a dangerous development. My wife didn’t take anything during two pregnancies.

          7. This doesn’t fit the profile. The clotting disorders have only been seen with adenovirus vaccines, of which Pfizer is not. The clotting disorders have only been seen 6-13 days after a shot, which corresponds to the window in which the clotting disorder develops. Correlation does not equal causation, and that goes for VAERS too.

          8. This doesn’t fit the profile.

            Wrong!

            16-year-old boy undergoes emergency clot-removal surgery after vaccination; Expert: ‘Unequivocally a side effect of the vaccine’

            AstraZeneca and Johnson & Johnson vaccines are apparently not the only COVID-19 pharmaceutical products found to cause hypercoagulability: A 16-year-old boy in Israel developed hypercoagulability and had to undergo emergency clot removal surgery after receiving the Pfizer COVID-19 vaccine.

            The Wall Street Journal last week reported that Johnson & Johnson privately reached out to COVID-19 vaccine rivals to ask them to join an effort to study the risks of blood clots and speak with one voice about safety, but Pfizer and Moderna “declined”.

          9. Correlation does not equal causation, and that goes for VAERS too.

            VAERS is a database of correlations. 👌 🙄

          11. Pulmonary embolism is among the symptoms listed for the girl.

            https://twitter.com/AlexBerenson/status/1388159357460811777: This week’s VAERS update also contains two reports of healthy teenagers who died after receiving the @pfizer vaccine – a 15-year-old boy in Colorado who died two days after vaccination and a 16-year-old girl in Wisconsin (which was reported independently twice).

      2. The mass murder media was trying to blame the old, conservative “orange man bad voters” for not getting vaxed. Then somebody did a study and found out that the young people were by and large the ones not wanting it. So now they are posting “you’reallgonnaDIE!” stories about how the hospitals are filling up with young people who are as sick as ever with the virus, and doing everything they can to sell the vaxx.

      3. Enough coddling of the leeches.

        Once the free shit army is mobilized, it never stops marching. Remember when this was first enacted to supposedly “slow the spread?” Now it’s just about endless free shit.

        New York state legislators are planning to extend the residential and commercial eviction moratoriums until Aug. 31.

        The vote in both the Senate and Assembly is scheduled for next Monday, May 3. The current law is set to expire May 1, but legislators plan to make it retroactive to that date.

        The moratorium prevents the eviction of tenants who are struggling to pay rent due to financial hardship caused by the pandemic. It will require landlords to provide tenants they wish to evict with a hardship declaration form.

    1. Today is Thursday, April 29th and Joe Biden is not the legitimately elected president of the United States.

      The 2020 election was stolen.

      1. There’s a bright side to that, though. Trump would have continued to rev the economy, which would have extended this bubble. With Biden it is far more likely to crack sooner and more severely.That’s what I want anyway. Both times I voted for Trump I was aware that it was at odds with me ever getting a SFH for a fair price.

        1. Both times I voted for Trump I was aware that it was at odds with me ever getting a SFH for a fair price.

          I’m sure the globalists are going to do everything possible to make sure a SFH stays out of your reach. And remember, this is global, not just in the US. Housing is unaffordable just about everywhere in the world (when compared to local wages).

  10. I was looking for Debt-To-Income (DTI) data on mortgages and came across this curiosity:

    This one Fed chart says “mortgage debt service payments as a percent of disposable income” have been going down as house prices have been going up:

    1) Mortgage debt service payments as a percent of disposable income: https://fred.stlouisfed.org/series/MDSP

    2) Median house prices: https://fred.stlouisfed.org/series/MSPUS

    3) Median and average incomes: https://www.ssa.gov/oact/cola/central.html

    I gotta wonder how much of this official data is gamed or flat out wrong (not trying to grasp at straws, cherrypick data or engage in wishful thinking, but am trying to get to the reality of the situation). Is this entirely dependent on interest rates? Seems to me that an interest rate drop causes a surge in house prices, almost immediately offsetting any actual benefit of lower interest rates (other than the marketing purposes) and so here should not be this steady decline in mortgage payments as a percentage of income.

    1. I’m gonna guess that existing loanowners who have refi’d into sub 3% interest rates have been driving #1, which only helps those who bought when houses were cheaperish. Any first time buyer is fooked,.

    2. #1 does not make sense to me. I guess they are looking at the macros numbers: total disposable income / monthly debt services.

      how can it go from 7.2% in 2007 to 4.0% now? yes, interest rates are lower — and yes, long-term mortgage holders have had raises, — and yes, percent of houses are paid off.

      how does it square with some folks paying >30%, 40% and even 50% of household income on housing expenses.

        2. “Nearly 40% Of Homes In The U.S…”

          Homes or houses? A rotting single-wide that a lender would never qualify is likely “a home” in this piece. These are complex data that deserve a thorough discussion of the collection methods and rankings.

    3. Isn’t mortgage debt “service” just the interest payments and not the principle?
      1. High interest rates and low principle.
      2. Low interest rates and high principle.
      So even if you had the same PI every month for both cases, the mortgage debt service would be lower for #2, which is where we are now. Plus we had all those refinances into low interest rates, who are also paying low debt service and sky-high principle.

      1. I considered this, and didn’t see a definition of “mortgage debt service” on the Fed site. I googled “definition of mortgage debt service” and came up with this link: https://www.investopedia.com/terms/d/debtservice.asp – it says it’s both principal and interest.

        Some reasonable observations here. This is related to the FOR (linked on that site – https://www.federalreserve.gov/releases/housedebt/about.htm ) which provides a caveat that “The limitations of current sources of data make the calculation of the ratio especially difficult.”

  11. From the DMN (paywalled):

    In the first quarter of 2021, Dallas-Fort Worth sellers cleared an average profit of $94,571 from local home sales, setting a record.

    That’s a 22.8% year-over-year increase in typical sale proceeds from a year ago, according to a new report by Attom Data Solutions.

    Nationwide the typical profit from a home sale was $70,050 — up 25.7% from first-quarter 2020.

    While D-FW home sales proceeds hit new highs, the biggest seller profits were in high-priced California markets. Home sellers in San Jose cleared an average $575,000. Average sale profits in the first quarter were $420,000 in San Francisco and $290,000 in Los Angeles.

    1. Sure, the ibuyers who do this stuff day in and out, lose money on every sale. Always have. And they pick and chose markets. Still take an a$$ pounding month after month. Attom (dumbest name change evah) is part of the REIC, and they all would kill their grannies for one months commission.

      1. Terrible rebrand, only other one I can think of that bad was buy.com to Rakuten.com. Legends of fail.

  14. “World to spend $157 billion on Covid-19 vaccines through 2025: report”

    Monthly boosters should easily up that number to many trillions. GDP thru the roof!

  15. “‘There is really no comparison between the lending standards of today’s environment and the lending standards in 2006.’”

    Back in 2018 when I sincerely looked for a home, nearly every realtor (i.e., liar) gave a wink and a nod that they knew a lender that could DEFINITELY get us a loan.

    Yeah, solid lending. That happened a dozen or more times at nearly every open house.

  16. “‘Contrary to the last cycle, home shoppers are armed with a good down payment and great credit scores. But there’s certainly a psychological component as well where people are afraid of missing out.’”

    So people are putting 20% down? For a half a million dollar shack that’s a lotta cash. Maybe their Biden stimulus helped?

  17. Trillions will be looted over the vaccine thing. But that’s not the only loot job that puts the money in the hands of the 1%.

    I was listening to a talking head (doesn’t matter who)) that was talking about between 1945 and 1975 in the US ,when the middle class worker gain so much headway in terms of financial growth.

    This Speaker went on to say that the workers movement actually started in the 1850’s when the worker was trying to get from under the oppressive slave like conditions the Monopolist of that time dished out. Those were populist movements that that they would try to squash at all costs.

    But finally by 1915 some headway was made in workers rights that was built on. But, it was the people doing it , not the corrupted Government of those times.
    So , this Speaker goes on to in summary talk about other advancements done by populist movements forcing Government to respond . in other words the biggest thing that Powers fear is a populist movement by people . So, a example of controlled opposition is using Communism to usurp a populist capitalist revolt against Monopolies and rigged systems in the US.
    The speaker in summary was saying that the Elite couldn’t stand the gains made by the working class between 1945 and 1975 in the US, and a concerted effort was waged to stop this and reverse it.

    After all, a lot of the gains by the 1% are based on looting, rigged systems , slave labor , Monopoly control and price fixing. Its not capitalism, which the monopolies don’t like.

    And these Entities that want to control everything are anti humanity and are probably worse than Kings and Queens. So, this speaker in essence said it has to be a major populist movement from the bottom up that over throws this Dictorship that is taking over the US. Also both left and right political parties are corrupted in DC, so its just a big game they play. The Swamp is so bad that it would have to be totally purged.
    So as long as these powers can keep people in a state of fighting enemies they contrive, than the people never come together to stop the real culprits , because they are distracted by contrived enemies.
    Black against White, vaccine taker against non vaccine taker, capitalism verses communism, woke verses nonwoke, equity /social justice verses capitalism/merit based systems/earned rewards, male verses female, majority verses minority, warmonger verses antiwar, homeowner verses renter, etc etc etc. But never have a meaningful discussion on the merits of either side, just keep the battle going so you can never come close to the truth and actually solve problem in a constructive way.

        1. I went to work for a startup in 1989 and their system ran on an old VAX PDP mini bought from the local U.

  19. 34 Million Fewer People Watched Biden Speech Compared to Trump’s First SOTU

    by Paul Joseph Watson
    April 29th 2021, 1:50 pm

    Ratings show that 11.6 million watched Biden’s speech compared to 45.6 million who watched Trump’s first address to Congress in 2018.

    The lowest number of Americans who watched a Trump State of the Union throughout his term in office was 37 million.

    Biden’s speeches and public appearances have become notorious for their poor ratings and lack of engagement, unless you’re talking about the overwhelming number of people who downvote videos on the official White House YouTube channel.

    As a reminder, Biden officially received 81 million votes during the presidential election, the most a presidential candidate has ever received and over 11 million more than Barack Obama achieved in 2008.

    Respondents to the announcement of the viewing figures expressed their surprise, given Biden’s overwhelming ‘popularity’ in 2020.

    “Most popular president of all time,” commented one.

    “Just wait, Dominion is finding more viewers as we tweet,” joked another.

  20. Im wondering, with all the business owners taking a hit during the pandemic, laying off staff & shutting down operations. People were surviving on savings which are probably depleted now. Who can afford to buy a home at these inflated prices?

    1. All the people who didn’t lose their jobs and didn’t need to dip into savings. 20% unemployment sounds high, but that means 80% kept their jobs. The home demand is coming from that 80%.

      1. Most of the 20% who lost their jobs were low paid menials who weren’t going to buy a shanty anyway.

    2. “Who can afford to buy a home at these inflated prices?”

      Speaking for my part of Region IV it is people fleeing California and the tri-state area (NY,NJ Ct.) who can afford to buy a home at these inflated prices.

    3. Prices are inflated, but credit is available. I get weekly emails from different banks. Just last week they dropped down payment requirements from 3.5% to 3%. So a half a million dollar mortgage now only requires $15,000 upfront. You can easily get a personal loan for that money and BAM you are a homeowner/investor!

  21. Evanston, IL Housing Prices Crater 18% YOY On Soaring Mortgage Defaults As US Housing Demand Grinds Lower

    https://www.movoto.com/evanston-il/market-trends/

    As a noted economist said so eloquently, “liquidate everything and eliminate all debt and hold onto every dollar you’ve got…. You’re going to need every last one of them.”

  22. Is it safe to ignore the record level of margin debt being used to buy stonks, given how low interest rates currently are?

    1. The Financial Times
      Opinion Markets
      Margin debt and leverage are flashing red, again
      Much of the froth in US markets is being driven by unusual liquidity flows that may reverse soon
      Gillian Tett yesterday

      When the Archegos fund imploded last month, it demonstrated yet again the perils of taking on excessive margin debt.

      Although a then little known family office, Archegos amassed a reported $50bn of loans from banks such as Mizuho and Credit Suisse to purchase risky equities. When those bets turned sour, its losses surpassed $10bn, judging from recent results from the banks that made those loans.

      That is a startling amount. Even more startling, though, is that Archegos is far from being the only fund to rack up large margin debt — the funds that an investor borrows from brokers to trade financial markets.

      Data collected by the Financial Industry Regulatory Authority shows that total margin debt across Wall Street hit $822bn by the end of March — after Archegos had failed. That was almost double the $479bn level of this time last year and far more than the around $400bn peak that margin debt reached in 2007, just before the financial crisis.

      To put these numbers in context, ABP Invest, a London-based fund, calculates that during the 2000 dotcom and 2007 credit booms, US margin debt topped out at roughly 3 per cent of gross domestic product. Now it is nearly 4 per cent.

      As John Waldron, chief operating officer of Goldman Sachs told the Economics Club of New York this week: “That’s an extraordinary (level) of margin debt.” Quite so — particularly as Goldman was reportedly “very exposed” to Archegos, although it apparently managed to exit its positions and avoid major losses.

      Is all this dangerous for markets? The answer depends on what you think will happen to asset prices. If you believe they will keep rising while the cost of borrowing remains so low, the answer is “No”. Indeed, many investors and investment banks appear confident that is the case.
      …

      1. Margin debt and leverage are flashing red, again

        “Leverage in the financial system is not a problem.”

        ~Jerome Powell
        4/28/21

  23. Redpilled,
    Lots of good tapes in that post you made above. Some of those Doctors are ones I have been listening to for a while now. The censorship of these Doctors is just outrageous.
    Oh, I wanted to tell you that my friend with the 4 styes was put on 20 days of antibiotic treatment by his eye doctor now. So hopefully this thing he got gets cleared up.Don’t know if it was vaccine related or not. I was thinking in terms of the immune system being compromised by vaccine causing him to get this extreme of 4 styes. Anyway, thanks for your posts.

      1. Also, I can’t help having the feeling that these Entities that are trying to take over the USA aren’t trying g to start a Civil War. Just a populist movement by the majority to stop this power grab would be better than American fighting American over fake narratives.

        Biden has the full power of the Military anyway at this time , so a peaceful populist movement against this takeover of the US is the best option.
        Only about 10 million watched Biden’s address to Congress. Not the kind of viewer ship you would of expected from a guy who got over 80 million votes, the most of any president of all times.

        I can’t even endure 2 minutes of that corrupt creep Biden even talking his nonsense, than fake news glorifying his comments. They are all criminals.

        I was wondering about how much fake news we got in the 50’s, 60’s and 70’s. Of course you got the rah rah Viet Nam stuff. It seems like the populist movements of those times like Civil rights , anti war, peace love and rock and roll was in the news all the time. I remember all sides of debate going on, so it must of been more authentic.
        You could say anything you wanted without fear of cancel or punishment. I think most people remember those days. And that type of freedom was creative if anything. A one narrative fake news has got to be the most oppressive and limiting tyranny imaginable.
        I just can’t believe that I have to watch what I say or I might be punished. And no doubt I’m not woke, whatever that means. Seriously , I’m shocked at how fast this tyranny was brought on, and had been in the works for a long time.

    3. I had 3 styes develop almost overnight back in 2004. It was connected to an onslaught of stress. Stress will cause the body to “react” in unusual ways. My styes took weeks to shrink, Using Hot compress, massage and KEEPING the ducts clean using J&J baby shampoo. I would not recommend surgery, they WILL go away if he keeps using hot compress, melt the oil trapped in the duct and squeeze them out. gl

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