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It Could Even Be That Time Has Already Run Out To Sell For A High Price

A report from the Shawnee Mission Post in Kansas. “Full tilt. With no emergency brake. That’s how some have described the pace of the housing market in 2021. But with cooler fall air just around the corner, we are starting to feel an ever-so-subtle cooling in the housing market, too. Some sellers are slightly behind the times and are pricing their homes like it’s still May. Those homes may sell for less than the list price.”

From Seacoast Online on New Hampshire. “In a sign that Strafford County’s white-hot real estate market might be cooling somewhat, both current sales and pending sales were down in July. ‘There are not as many buyers coming to open houses,’ said Lee Ann Parks, president of the Dover-based Strafford County Board of Realtors. ‘Where we would have 30, it is more like eight to 10. Some of it is summer vacation; however, some is buyer frustration.'”

“Lately, analysts have wondered whether the current market can continue to sustain itself. There are some indicators that the hot market might be cooling, as more inventory has come online and as frustrated buyers have decided to step away for a while. The Home Buying Institute, in a July 29 report, declared: ‘It’s official: The real estate market is slowing down. We’ve seen a decline in home sales, an increase in inventory, and other indicators that suggest the housing market is slowing,’ the institute’s report said.”

The Phoenix Business Journal in Arizona. “While it’s not even close to becoming a buyer’s market in the Valley, there is light at the end of the tunnel for people trying to purchase a home. ‘What we can tell you is that the market has cooled from its crazy insane cry-yourself-to-sleep market — but it doesn’t mean it’s cold,’ said tina Tamboer, senior housing analyst for The Cromford Report.”

“The housing supply in homes priced between $400,000 and $800,000 has gone up 138% since February, she said. ‘But it’s still low. We were so low it’s not hard to go up 138%,’ she said. ‘We have seen an increase in supply and seen price reductions every week.'”

“Greg Hague, CEO of 72Sold, said buyer fatigue is contributing to more homes on the market. Now, buyers are starting to see more homes coming on the market. ‘All of a sudden, you’re not as inclined to fight over a house,’ Hague said.’If they can’t get a fair buy or a good deal, they just move on. That’s very balanced-market thinking we’re starting to see at this point.'”

“As the market begins to show signs of cooling, sellers might want to consider coming down on their prices if they’re serious about selling their homes, agent Aaron Carter said. ‘Sellers are getting greedy,’ Carter said. One seller had priced a home in Scottdale McCormick Ranch $150,000 over comps. ‘They are being very bold and brazen to say, ‘No, I want my price.’ In reality the market is starting to shift.'”

The Toronto Sun in Canada. “They were supposed to cool a scorching housing market by decreasing the pool of qualified buyers but more than two months after being introduced, new mortgage stress test requirements may not be working quite as expected. Romana King, director of content at Zolo.ca, a brokerage that compiles multiple-listing data, offers this example: A buyer makes an offer on a home that would require a $500,000 mortgage. At today’s variable rate of about 2.45 per cent, that buyer would need to fork out $2,227 a month but would need to qualify for the 5.25 per cent stress rate, which works out to a monthly payment of $2,980. That’s a difference of more than $750 per month. ‘The only way to make up that difference is for the buyer to make a larger down payment or the seller to reduce the ask price,’ King says.”

“‘However, the actual demand is still very high and increasing and perhaps, if we must have these stress tests, they should be adjusted or flexible to accommodate different income brackets and made easier for first-time homebuyers to become owners. Currently, the tests make it more difficult,’ says Jacky Chan, president of BakerWest, a Vancouver-based company which specializes in the sales and marketing of new master-planned communities. ‘Stress tests will temporarily and artificially affect and manipulate the ability of buyers, which should decrease activities but in reality, we have not seen the number of transactions nor prices coming down, which clearly tells us that the real issue or solution is in supply, and we should avoid tampering with the demand. It is quite challenging to artificially force a desirable property market into becoming undesirable.'”

From Essex TV in the UK. “The latest research from the homebuying platform, Yes Homebuyers, has highlighted a potential drop in UK house prices over the coming year and analysed exactly what the pounds and pence impact will be for homeowners and sellers. On a local authority level, it’s the boroughs of London that are going to see the most severe price drops. Nowhere will be hit harder than Kensington & Chelsea where the average house costs more than £1.3 million.”

“Matthew Cooper,Managing Director of Yes Homebuyers, commented: ‘The housing market has enjoyed a real boom since early 2020. But, what goes up must come down, and house prices are no different. They are currently so inflated through high demand and lack of supply, that it would take a miracle for them to remain this high for any extended period of time. This means we’re facing an inevitable drop and those looking to sell their home would be wise to act quickly instead of waiting. With some house purchases taking up to 500 days to complete, it could even be that time has already run out to sell for a high price on the open market.'”

The Malaysia Reserve. “Signs of financial distress in the country are getting more prevalent and clearer as the COVID-19 impact bites deeper into Malaysia’s economy, resulting in rising unemployment and shrinking incomes. This means some property owners may have to offload properties to stay afloat. Christopher Tan, 47, is one of many property owners who have had to let go of their properties during the pandemic. As global travel came to a halt, Tan, who resides in Singapore, lost his job as a pilot in June last year.”

“To sustain his livelihood with his wife and two children, he had no choice but to offload his apartment in Cyberjaya last August. ‘It was a difficult decision to make but that was the fastest way to get some cash although it was at a loss. I bought that apartment for RM826,000, but sold it at only RM450,000,’ he said.”

The Vietnam Express. “Landlords are struggling to repay bank loans after the Covid-19 pandemic has caused demand for leasing properties to plummet. In the last six months all of Tung’s savings have gone into paying bank loans he had obtained for his VND18 billion ($782,000) shophouse in HCMC’s Binh Thanh District. He made the purchase in 2019 with a 30 percent loan, a ratio considered safe then. Tung had hoped to pay by leasing the house to businesses, but the pandemic put paid to those plans.”

“Business tenants started to leave en masse as lockdowns and social distancing meant no revenues. Tung brought down the rent by 15 percent, then 30 percent and even 50 percent but still could not find new tenants. Since the end of last year his shophouse has been mostly vacant, and he has even had to borrow from friends and family to pay the banks. ‘Earlier this month I borrowed money with high interest rates for the first time to repay banks.'”

“Quang of District 2 faces a similar plight. The rent for his premium three-bedroom apartment plummeted by 40 percent to $850 by the end of the first quarter. His last tenant, a foreigner, moved out after their income fell, and Quang now has zero income from it but still has to pay the monthly bank installment. The bank has repeatedly warned him it could foreclose on his mortgage if he fails to make regular payment.”

“Nguyen Hoang Hai, chairman of property developer VNO Group, said those who borrow from banks to invest in real estate have been ‘living in a nightmare.’ He estimated that 70-80 percent of theseowners have bank debts, but most get little or no rental income. People who borrowed 30-50 percent of their property value are struggling, while those who borrowed 70-80 percent have mostly lost them, he claimed.”

“He forecast the market would not recover until next year. ‘Banks need to lower loan interest rates for these investors for the next three to six months or roll over their debts.'”

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This Post Has 72 Comments

  1. Some comments from the Vietnam post:

    ‘Never over leveraged yourself .. a lesson never learnt with every new generation.’

    ‘But they told me ‘Real estate never goes down!’. I’d rather own stocks. Much easier to get in and out of, plus I can live wherever I want with no pesky tenants to deal with.’

    ‘Not a surprise to hear it. An past article of Vn express mentioned that 60% of buyers in real estate are speculators.’

    ‘Many investors have a clear awareness on common rule: High risk means high return. I hope the price of real estate will go down’

          2. “Prices are decreasing”

            Hotdam! Thats real progressive for realtors. Plateau is gone.

            It only took them 18 months to acknowledge what is evident to the most casual observer.

  2. ‘But it’s still low. We were so low it’s not hard to go up 138%…We have seen an increase in supply and seen price reductions every week’

    Eat yer crowz Tina. Phoenix never learns. An a$$ pounding is on it’s way.

  3. ‘Stress tests will temporarily and artificially affect and manipulate the ability of buyers, which should decrease activities but in reality, we have not seen the number of transactions nor prices coming down’

    Jacky is a lion. Sales have been down for months straight all across K-da.

    2. “Jacky is a lion. Sales have been down for months straight all across K-da.”

      – Supporting Canadian blog post here. Oh Canada! I hope nobody paid too much!

      https://www.greaterfool.ca/2021/07/30/bubble-meet-prick/
      Bubble, meet prick
      July 30th, 2021

      “The sleepy little university city is a hundred clicks from the Big Smoke. Not exactly an easy commute.”

      “But WFH and Covid changed all that. So far in 2021 home sales in Guelph jumped 62% above 2020 levels. Prices increased 32% in a year. Nobody – not a single agent or broker – had ever seen this kind of exodus from east down the highway as GTA virus refugees arrived to Hoover up every listing.”

      “But wait. What just happened?”

      “A classic heritage stone bungalow on one of the best streets – a trophy property – came up for ‘offer night’ a week ago after seven days of showings. The listing agent braced for a bidding war. But total buyers: zero.“

      “Well, the price reductions have started there and, in fact, much of the hinterland hunkered around the metropolis. Meanwhile in the urban core, condo sales have spiked. City rents have started to escalate. And it sure looks like peak house came, and went.“

      “Four months ago a certain pathetic blog told you we were there. Sales levels cannot last, it said. Hold your powder. The pandemic will end. Restrictions will go. WFH will dissipate. And faced with a commute plus the horrible reality of having to find clean underwear and pants on a daily basis, many ex-urbanite Millennials will realize they lived DT for a reason. Cows are nice. But the 401 isn’t.”

      “This week economists at the big green bank admitted to the same conclusion. “March seems to have been the absolute peak of the mountain in terms of activity, a couple of months ahead of what we had anticipated in our outlook released last winter,” says TD.”

      “No kidding. Sales are down 25%. Listings are edging higher. It’s abundantly clear that – as with lumber and puppy prices – the pandemic housing market was unsustainable. It was emotional. Quixotic. Kneejerk. Dripping with recency bias, buyers made unconditional, no-inspection offers in blind auctions, showering speculators in hotbeds like Milton and Niagara with windfall gains while pickling themselves in epic debt.“

      “So why is it ending?”

      “The tougher stress test kicked in, punting another one in ten buyers to the curb. Mortgage rates have stiffened a little, but everyone knows more increases are coming. Covid is retreating and September/October will see the reopening of the downtown bank towers and a myriad of other workplaces. Meanwhile as restrictions and curbs are lifted people are far less consumed with where they live and are returning to normal life. That involves travel, vacations, dining out, sports events, concerts, shopping and pure socialization.”

      “In short, the pandemic real estate fling was just that. Hormonal. Briefly compelling. Obsessive. Enthralling. Vaguely dangerous. Exciting. But ultimately short. And costly.“

      “Now that sales have begun their correction in earnest,” says the bank, “the interesting question becomes how steep the decline will be.”

      1. trophy property
        Jeez, that’s a genius level bs description, nice bait for suckers – you’ll be a winna if you get this place. I wonder if the writer picked it up from the listing description. That would be something because most RE agents can’t spell (e.g. “dinning” room.)

  4. ‘I bought that apartment for RM826,000, but sold it at only RM450,000’

    Well it was cheaper than renting Chris.

  5. In the last six months all of Tung’s savings have gone into paying bank loans he had obtained for his VND18 billion ($782,000) shophouse in HCMC’

    Jumpin’ Jehoshaphat! 18 billion VND pesos? If you’ve ever watched videos on Vietnam or Thailand they run businesses out of shacks. I look at expat videos on those two countries. The guberments are destroying the economies and people are getting the heck out. What’s really strange is almost nobody has died of CCP virus.

    1. wow. Ben yer posting an hour later today. power outage mess up the alarm clock? haha
      (nah, that’s a CA thing.)

  8. Today is Wednesday, August 11th and Joe Biden is not the legitimately elected president of the United States.

    The 2020 election was stolen.

    1. 80 million votes for a demential-addled exemplar of the corrupt crony capitalist status quo? I don’t think so. Not even in ‘Murica. But the globalists might want to move up their plans to shunt him aside and install Comrade Kamala as their new cardboard cut-out.

      Where are you going, Joe? Another ‘senior moment’ as confused President Biden ignores Secret Service agent directions into White House and bizarrely walks onto lawn

      https://www.dailymail.co.uk/news/article-9882283/Biden-filmed-ignoring-Secret-Service-entering-White-House.html

      President Joe Biden was filmed seemingly ignoring the direction of a Secret Service agent tried to direct him to a path leading to the White House.

      In Biden’s latest bizarre gaffe, the president was filmed returning to the White House after spending time in Wilmington, Delaware when the agent points for him to follow the sidewalk path into the White House.

      1. It looks like Biden didn’t see the agent pointing and simply tried to follow the agent. It’s not really all that bizarre. However, this isn’t Biden’s first time at the White House. He should have known the way with no direction at all.

        1. That’s what’s weird – do you really need somebody to point the direction to enter your own house? This guy is gone.

          1. He’s been there plenty of times as a Senator and later as VP, for eight years. He should be able to walk around blind.

    2. RSBN LIVE – MIKE LINDELL’S CYBER SYMPOSIUM

      https://rumble.com/vi1or5-rsbn-live.html

      I watched for hours yesterday. Some states had hundreds of thousands of mail in ballots counted that they didn’t mail out. I agree with Steve Bannon: the election hacking by China and the CCP virus were both acts of war. Some say we are at war and have been for a while.

      2. Oregon is bringing back the indoor mask mandate for all residents regardless of jab status, effective today.

        2. Dems cancel rent. They’ve set the precedent, they won’t need a pandemic next time. (Oxide’s comment from yesterday)
          Or in this case demand masks. Sad thing is they won’t need an excuse for anything they did this time, next time. They can just say SOP.

    3. Based on article “CDC Forced To “Adjust” Sunday’s Florida “Record” COVID Count Lower By Almost 50% After State Health Department Cries Foul On Data” on ZH, they count CCP Virus cases in red states like they count voting ballots in blue states.

    4. The /r/NoNewNormal sub-Reddit has been “quarantined” on Reddit today. This is usually the first step before a ban (see also /r/The_Donald). SPLC goons, please go f*ck yourselves. Nobody elected you to be anything. You’re not a non-profit “civil rights organization.” You’re a for-profit defamation organization.

      And to the Real Journalists of the Washington Post and New York Times who publish SPLC propaganda and lies, we are just peaceful messengers of truth here on the HBB.

      You can’t kill all 80+ million of us, as much as you wish that was possible. New York City and Los Angeles are the enemies of the American people.

      1. Vox Day’s (Vox Populi) website (under blogspot) is “under review due to possible Blogger Terms of Service violations”.

        I wonder how long until this website is blocked.

  9. “There are not as many buyers coming to open houses,’ said Lee Ann Parks,”

    …. woman….. You’ve got rocks in your head.

    It’s funny how every “report” says the same thing at the same time. In the absence of a script from Liars Central, these dummies couldn’t string a sentence together and make it sound acceptable.

    1. They should have spent their time dreaming up new superheroes instead of re-re-re-hashing old ones.

      1. it’s about politics. they want to cancel the old heroes more than make new ones. they don’t care if they lose money as long as they can cancel anything western. anything at all, including comics.

        1. You’re right, and the comic/gamer/movie fandom has been talking about this since Force Awakens. Last Jedi esepecially drove home what the intentions were. It’s not enough to introduce new Mary Sues, they are destroying the older real heroes. I’m not sure I can even watch the SW OT, knowing what “Luke” turned into.

          It’s the same with the politics, military, everything. These elites are throwing Western Culture as surely as the Black Sox threw the ’19 Series.

    2. Looking at the animal kingdom, sex is binary. According to MSM, Narrative, etc. there are countless pronouns and genders. This is all non-science, flat Earth theory nonsense designed to destroy society as per Marx’s Ten Planks of the Communist Manifesto. Not buying it. Not a member of either the low information voter nor useful idiot classes. Alert! Critical thinking skills on board. 🙂

  12. It’s hard to see right now, but it could be this isn’t “froth” and the actual crash is already underway.

    1. Slow motion crashes in decentralized markets are hard to document in real time. It’s not like the lumber futures collapse, where an up-to-the-minute figure captures the plummeting price in real time. The relevant information dribbles out of the MSM in drips and drabs, attenuated by the requisite REIC denials of what is playing out. Only after many months of this does the situation become too obvious to ignore, at which point the new REIC rallying cry becomes, “Nobody could have seen it coming!”

  13. I’ve been reading up on the history of the California Association of Used Home Sellers. It’s interesting!

    1. Blockbusting

      Despite the court decision in Shelley, segregation in California continued. As an example, an insidious form of segregation known as blockbusting occurred in East Palo Alto. In 1954, a white resident sold his house to a black family. Almost immediately, agents of the California Real Estate Association, including the president of the statewide real estate Association himself, [19] began warning of a “Negro invasion” and even staged burglaries to panic white homeowners to sell at below-market prices. Those properties were then sold to Negroes at higher-than-market prices with real estate interests handsomely profiting from the transactions. [20] These East Palo Alto houses had been priced so much higher than similar properties for white homeowners that the black homeowners had difficulty making payments which created a slum in East Palo Alto. [21]
      …

      1. I recently saw an empty parking lot in Salt Lake City filled with lumber. Sort of crazy to leave that sitting in the summer desert sun.

        I’m sure no one hoarded any with expectations for continued price increases.

        1. I went to my local lumberyard for a small project for a client. It was DEAD, but the lumber was stacked as high and far as I have ever seen, and there were semi trailers sitting loaded but with the tractor no longer attached. There is a massive glut, yet they’re still trying to charge insane prices. People stopped buying.

    1. “California produces 80 percent of the almonds consumed worldwide, a market that has doubled in 15 years driven by demand for substitutes for animal products, such as almond milk.”

      Not many ideal places to grow these nuts.

      The real story here is the legal story. These farmers have senior water rights, which are being usurped for spec homeowners who can’t afford the mortgages that they agreed to fulfill.

  18. So let me get this straight: We’re planning on half of our vehicle sales in electric by 2030. But meanwhile, we would like OPEC to ramp production to meet our currently insatiable demand for gasoline?

    1. I just watched the CGP Grey video (if you’re not familiar, he makes some of the best videos on YT — I recommend the two Pirate videos), where he drives a Tesla on the Loneliest Road in America, from California to Moab. I got range anxiety just watching it. If car companies can increase the range of an electric car from 230 to 450 miles (that’s what my Cam gets) and reduce charging to, say, 20 minutes, and as many charging stations as there are gas stations, I don’t really object to the electric infrastructure.

    2. “…half of our vehicle sales in electric by 2030….”

      Jan 1st, 2030 is just about 3427 days from now.

      New Electric Car Quantities required are in the tens of millions/year.

      Does the math work?

    3. Never mind that; where will the electricity come from to charge all those cars. Or will there be enough batteries? Good heavens, we can’t make enough chips right now and we’ve been making them for decades.

      1. Electricity comes out of the wall. It’s just kinda born inside of there and gives itself to you (actual Science™ as Seen On TeeVee).

  19. Google wants to encourage their employees to spend more time sitting in traffic and less time working.

    Go figure!

    1. TECH
      Google rolls out ‘pay calculator’ explaining work-from-home salary cuts
      By Theo Wayt
      August 10, 2021 | 10:19am

      Google has rolled out a new internal calculator to explain potential pay cuts to employees who choose to work remotely — and the early results suggests it will penalize its suburban staffers.

      Screenshots obtained by Reuters show that Google employees who previously commuted an hour to Google’s Manhattan offices from nearby Stamford, Conn., for example, would see their salaries slashed by 15 percent if they choose to continue working from home.

      By contrast, “Googlers” who live within NYC’s five boroughs and choose to work from home permanently would not see their pay slashed at all.

      The screenshots also showed 5 percent and 10 percent differences for commuters living in the Seattle, Boston and San Francisco areas.
      …

      2. “…work from home salary cuts…”

        LMFAO. I said this a year ago – this sh!t is temporary at best. People thought they were going to be on permanent vacation while “working.” Dream on, suckas. A shame you bought that house 3 hours away now, isn’t it?

      3. Ok a monthly ticket from stamford is $335 + $127 monthly for the subway….$462 x12=$5542 year plus lunch starbuxx…. so 15% cot is not that bad a deal for saving about a 3 hours a day commute

    1. Instead of 2 Good Samaritans it should have been 20 and they should have beat those purse grabbing thugs to a bloody pulp.

      Stand together.

  21. just read that nick fuentes had his bank account emptied by the FB1.

    if true, it means there’s nothing to stop them from emptying your bank accounts either. they say he’s a ‘white supremacist’, but i don’t believe it. they say that about nearly everyone. but even if it were true, it doesn’t give them the right to steal someone’s bank account. they are trying to terrorize all of us.

    trump was correct when he told us that he was the only thing standing between you and them. and now they’re coming for us harder than ever.

    it seems that every day they get away with something bigger than they did yesterday. they, like we, probably can’t believe what they’re able to get away with.

    we might wake up one morning to find that none of our bank cards are working anymore. think about that. want your bank cards to work again? ok, do exactly as we say…

    2. I had a red VW bus, sold it for $750 in 1981.

      The fact is it wouldn’t have been worth $30k to have kept it all these years.

  23. Last night Tucker had a segment on Australia being under Martial Law after 9 Covid deaths this year. The video of locked down neighborhoods was truly shocking.

    Australia’s Victoria state to deploy military, impose A$5,000 fines to enforce coronavirus isolation

    AUG 4, 2020, 5:42 PM

    SYDNEY (REUTERS) – Australia’s second-most populous state Victoria said on Tuesday (Aug 4) military personnel will be deployed to enforce Covid-19 isolation orders, with anyone caught in breach of those rules facing tough new fines.

    Victoria earlier this week imposed a night curfew, tightened restrictions on people’s daily movements and ordered large parts of the local economy to close to slow the spread of the coronavirus.

    But nearly a third of those who had contracted Covid-19 were not self-isolating at home when checked on by officials, requiring tough new penalties, Victoria state Premier Daniel Andrews said on Tuesday.

    Mr Andrews said 500 military personnel will this week deploy to Victoria to bolster enforcement of self-isolation orders, with fines of nearly A$5,000 (S$4,900) for breaching stay-at-home orders. The only exemption will be for urgent medical care.

    “There is literally no reason for you to leave your home and if you were to leave your home and not be found there, you will have a very difficult time convincing Victoria police that you have a lawful reason,” Mr Andrews told reporters in Melbourne .

    Victoria on Tuesday reported 439 new Covid-19 cases in the past 24 hours. Mr Andrews said 11 people had died from the virus since Monday. In total, Australia has recorded nearly 19,000 Covid-19 cases and 232 fatalities, far fewer than many other developed nations.

    Police officers and soldiers patrol a popular running track in Melbourne, on Aug 4, 2020. PHOTO: AFP

    https://www.straitstimes.com/asia/australianz/australias-victoria-state-to-impose-fines-of-almost-a5000-for-breaching-covid-19

  24. @Jeff
    I read the govt is building quarantine camps in Brisbane. They never should have given up their guns.

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