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Central Banks Have Left The Barn Door Wide Open

A report from the Sylva Herald in North Carolina. “At the start of the new year home sales across the 13-county Asheville region continued to buck trends, as 906 homes sold, representing an increase of 2.5 percent over sales in January 2021. However, month-over-month sales compared to December’s frenzy of buyers scrambling to close ahead of rising rates, showed a decline of 28.5 percent. These are completed transactions, according to Canopy MLS hat include single family and condo/townhome data only. Buyers will see some relief in pricing which declined in January 2022. Both the median sales price ($278,875) and the average sales price ($275,835) declined 12.9 percent and 34 percent year-over-year respectively.”

The Denver Channel on Colorado. “The Denver city council president wants the state attorney general’s office to look into the Green Valley Ranch HOA over recent foreclosures. Gil Gonzalez Ramos was among the frustrated and angry crowd during Saturday’s meeting. His HOA fines amounted to about $5,000 but ballooned up to about $20,000 because of late fees and lawyers’ fees. ‘I never thought that me, for our family not paying those fines, will lead to the point where we’re at now where we lost our home,’ he said.”

From Fox 10 Phoenix. “For the first time in the three years, and the first time since the start of the COVID-19 pandemic, officials with the Federal Reserve announced that they will raise interest rates by a quarter of a percent. Here’s what you should know about its impact on Arizona.  ‘I initially went got my pre-qualification, thought it was good,’ said potential buyer Vince Moody. ‘Then, I have to go back and look for more money to borrow.'”

From Fox 11 Los Angeles. “Walt Tamulinas, ERA Orange CO. Real Estate CEO, foresees interest rates going up to 5 possibly 6% by the end of year… which along with more buyer fatigue, he expects the market to normalize in the next year to year and a half. ‘Everybody asks that big, big question: ‘Is the market going to blow up and the prices going to go down?’ I don’t believe that they will. I believe we have a really strong economy in Southern California and I think that will continue and as a result to that the prices will be stable. What’s going to stop is this craziness of overbidding,’ Tamulinas added.”

“After looking at three dozen homes and making two dozen offers, they finally got their dream home. This is Dave Gilmore’s million-dollar mansion in Mission Viejo. It was listed at $990,000 and sold for $1.75 million. ‘Actually one of the first places we looked at was #17 just down the street right here and we were one of the final two out of like 20 bidders on that one and we didn’t get it and took us another two and a half months of relentless searching,’ said Gilmore.”

The Canadian Press. “The Canadian Real Estate Association said the national average home price climbed by more than 20 per cent since last year to hit a record $816,720 in February. Robert Kavcic, BMO Capital Markets’ senior economist, pointed out that the aggregate composite home price index was up 3.5 per cent on a year-over-year basis last month, the strongest monthly gain on record. ‘That blows through the pace seen a year ago, and also the fastest clip [since] the early-2017 period,’ he said in a note to investors. ‘Prices are going parabolic at a near-50 per cent annualized clip, expectations have rooted, investors are driving most of the incremental demand, and Canadians are buying pre-sale condos halfway across the country.'”

The Globe and Mail. “We’re potentially seeing the gravest central bank policy error since the dawn of inflation targeting. And mortgage holders could pay the price. The Bank of Canada’s response thus far? One measly 25 basis point rate hike. Its rate tightening has come so late that it seems like the punchline of a joke. How do we know it’s late? Because the central bank has never before begun a rate hike cycle: With consumer price index inflation an eye-popping 300 basis points above prime rate; after quantitative easing artificially kept rates lower; after such an obscene run-up in home prices; with the Bank of Canada’s credibility running so low – its string of missed inflation forecasts over the past 18 months have rarely been equalled.”

“If you feel like you’re being ‘punked’ by central bankers, you’re not alone. Without a doubt, central banks have left the barn door wide open. The inflation horse has now run down the road. Those who weren’t around in the 1970s and ‘80s don’t know how hard it is to bring it back in the stable.”

From Bisnow London. “It is a twist of fate. In August 2017, Chinese property giant R&F swooped in to pick up the pieces when its fellow Chinese developer, debt-laden Dalian Wanda, decided not to complete the purchase of a massive development site in the Nine Elms area of south east London. Now R&F is selling a huge development just around the corner at a £69M loss.”

From Bloomberg. “What used to be a gold mine for Chinese property developers has become a burden as the industry’s credit crunch intensifies. Urban redevelopment projects, which turn run-down areas into new properties in big cities, were sought after by developers like Logan and Times China Holdings Ltd. in recent years for their prime locations and hefty margins.”

“Now such works are being scrutinized by investors and credit rating companies for their tendency to house hidden debts through the use of joint ventures and shadow financing. They are also taking longer to complete — sometimes more than a decade — sucking up cash and making it difficult for distressed developers to generate sales in time to soothe angry creditors.”

News.com.au on Australia. “The owners of defunct construction giant Condev have fought back tears as they fronted media on Wednesday, just moments after placing the company into liquidation. Co-founders Steve and Tracy Marais were unable to secure a reported $25 million bailout from developers to deal with rising building costs and Covid delays. ‘The ink isn’t dry yet but we are formally in liquidation,’ said Ms Marais, holding back tears. ‘We advised our staff there was no need to come to work today but there’s so many here. It’s like being at a funeral.'”

From Radio New Zealand. “REINZ chief executive Jen Baird said market sentiment is changing. The number of properties sold rose 49 percent on January to 5597, but the number of houses available to sell rose by nearly half to 23,270. The time taken to sell a house also increased over the year from 31 to 42 days. ‘While prices are holding despite the change in market dynamics, there is now a fear of over paying (FOOP) amongst buyers, some of whom will be under additional pressure from legislative and fiscal changes impacting their ability to borrow,’ Baird said.”

“Generally regions reported a reduction in buyer enquiries, open home visits, and fewer auction sales, as well as fewer houses being sold, and taking longer to sell. ‘As a shift in sentiment sets in and buyers are less willing, or unable, to pay the prices we saw towards the end of 2021, pressure will come on vendors to adjust their expectations to meet the market,’ Baird said.”

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This Post Has 101 Comments

  1. ‘Both the median sales price ($278,875) and the average sales price ($275,835) declined 12.9 percent and 34 percent year-over-year respectively’

    It’s a good thing everybody put 35% down.

    1. “This is Dave Gilmore’s million-dollar mansion in Mission Viejo. It was listed at $990,000 and sold for $1.75 million.”

      Iiiiiiiiiiiiii have become…..comfortably numb……

    1. … and you will be happy.

      Come me visit me at my bank an we – you and I working together – will make this so.

      😁

    2. As far as I understand Kiev was founded by the first Russians prior to the Mongul invasions. That’s a long time before people were posting virtue Ukrainian flags on Twitter. Armies have been slaying each other over those lands for millennia.

  3. ‘Because the central bank has never before begun a rate hike cycle: With consumer price index inflation an eye-popping 300 basis points above prime rate’

    This is nuts. Yer losing money every day making these shack loans, for 30 years. Oh but a recession will make it all right! As I’ve said, I think they did this on purpose.

      1. Price equals Value and Value is how wealth is measured.

        Think of all the wealth that was created in these six years! Why, it was a miracle!

      2. ‘National home prices have officially doubled under Trudeau. It took just over 6 years.’

        And all those mortgages were with 20% or more down, at 2.5x annual income, to only the highest-quality borrowers with incredibly stable jobs too!

      3. I bought a house on Long Island for $290K in 1999. I sold it in 2004 for $540K. I pocketed $250K in 5 years tax-free.

        That same shite is happening the last few years. Anyone remember how good housing did 2006 to 2016ish?

        But it’s different this time.

    2. Zillow and Opendoor lost about a billion dollars in the ibuyer business during one of the fastest accelerations of home prices in history.

      What happens to ibuyers now?

      Well I’m still going to argue the tax payer is going to get stiffed for these losses. The central planners are not going to let tens of thousands of homes get dumped on the market to retail buyers in a fire sale. When everything craters, they will stuff all the 2B2Fs full of central bank cash which Blackrock and JP Morgan will use to buy those SFH portfolios for pennies on the dollar.

      1. https://www.bloomberg.com/news/articles/2021-10-05/opendoor-builds-9-billion-debt-war-chest-to-purchase-u-s-homes

        “It uses senior debt to pay for 80% to 90% of a given home, and mezzanine debt for the balance, according to an August filing.”

        Opendoor…the biggest subprime borrower in the history of real estate. Is this this the biggest scam in the history RE scams? This company figured out how to buy tens of thousands of SFHs without investing a penny of their own money, 100% financed with low interest corporate debt and a business model with zero track record. How many BS stories have we seen in the last few years about all this rock solid lending? You may not be able to buy a house with zero down and no history of making money, but these clowns can.

    1. Jimmy Carter Jr. more worried about calling Putin names. I gotta feed my family Brandon.

      1. I gotta feed my family Brandon.

        Brandon insists that inflation is not his fault and that he’s sick of being blamed for it.

        Translation: He doesn’t give a f#@k how much more you’re having to pay for anything.

      2. Jimmy Carter Jr. more worried about calling Putin names. I gotta feed my family Brandon.

        The Biden administration is “focused” on ways to help Ukrainian refugees, as the number of people displaced by the war continues to grow, according to U.S. officials.

        Yet crickets when it comes to the millions upon millions of homeless Americans living on sidewalks, in cars, in busted up RVs, etc., getting destroyed by inflation. Go die, you wrinkled old fock.

    2. I paid 6$ last fill up but it is down to about 5.50 now. The small bags of frozen scallops went up another $ last week to 8.99, was 5.99 before the scamdemic. My grocery bill is up 20-30% in the last two years. I’ve managed to compensate somewhat by going to more stores for specific items, like Aldi usually has avocados for about half price compared to other places. And red onions for some reason are half price at the Vietnamese grocery store. The electricity bill at my business is up by about 25-30% in the last two years with no increase in usage. I’m in California.

  6. Housing bubble haiku:

    Barn door left open
    All of the horses have fled
    Hurry shut the door

    1. DOW FUTURES -0.38%
      S&P 500 FUTURES -0.44%
      NASDAQ 100 FUTURES -0.62%

      NEWS
      commodities
      Brent crude rallies to top $100 after an IEA warning about a Russian supply shortfall
      Karen Friar
      1 hour ago
      Russia is a major exporter of commodities including oil and gas. castenoid/ Getty Images

      – Oil rallied to around $100 a barrel on Thursday after the IEA warned of supply risks due to a drop in Russian output from April.
      – While demand could shrink by 1.1 million bpd, 3 million bpd will be shut in due to the Russia-Ukraine crisis, it said.
      – Crude was also getting a boost from a fall in the dollar, after the Federal Reserve began hiking interest rates.

      https://markets.businessinsider.com/news/commodities/oil-price-today-brent-wti-tops-100-russia-supply-warning-strong-dollar-2022-3

  8. Did the Chinese government decide to bail out their stock market in a moment of panic?

  9. The phony war in Ukraine is not a “get out of jail free card” for the supporters and enforcers of unscientific medical tyranny.

    All of your names are on the list, from every single member of the World Economic Forum, down to the lowliest Twitter Blue Checkmark.

    What you did to us, you are going to pay, because all of you are going to die ☠

    The Day Of The Rope is coming…

    1. China can harvest human organs, fill slave labor camps, but we’re supposed to get worked up about a phony war in a place the size of the Texas panhandle in a country with an economy the size of Spain.

          2. Zelensky (sp?) is actually a paid WEF actor.

            He was groomed in the same manner as AOC.

            It’s globalists all the way down.

  10. Then, I have to go back and look for more money to borrow.

    In reality Vince, with a higher interest rate, you must borrow less money to hit your DTI limit. Maybe you should offer less for the house? Alot less.

    1. Offering less is not a choice. It’s a hard constraint on how much buyers can borrow against their income stream to fund a house purchase. The only way to maintain the same house purchase budgets as interest rates rise is to head down the subprime road to perdition, through ever loosening lending standards.

  12. 99% chance He is counting on his multi million-dollar stock options in his crypo startup IPO to pay for it ……

    ——-This is Dave Gilmore’s million-dollar mansion

    1. “Moderna CEO Stephane Bancel has sold $408 million in company stock since the beginning of the coronavirus pandemic — averaging roughly $3.6 million a week”

      Who does he think he is Nancy Pelosi?

  16. Russia is winning.

    “Concerns of a creeping world war are not slowing down mandatory pronoun training or the drive for racial equity in our military.

    America is at economic war with Russia, which is itself a feminine action compared to openly engaging in warfare. Mommy is withholding your allowance for bad behavior. The hysterical wiping away of Russian cultural figures and content is like a girl burning her ex’s gifts and tokens after a break up.”

    https://theamericansun.com/2022/03/16/no-masculine-pivot/

    “They’re not sending their best”

    1. “Zelensky’s folk heroces as a drag queen”

      Say what?

      I been working a bunch so the “folk hero” of the MSM. the Globalists and the brainwashed masses dancing as a queen in 2006 comes as quite a shock.

      President Volodymyr Zelensky on Dancing With the Stars Ukraine. Zellenskyy Dance Won DWTS in 2006!
      671,326 viewsFeb 26, 2022

      https://youtu.be/TlJywp7E3Gw

      Waging war, wielding words: Zelensky’s speeches have made him a folk hero

      BY LAURA KINGSTAFF WRITER
      MARCH 16, 2022 1:28 PM PT

      The wartime optics were impeccable. Clad in olive drab, seemingly paler than the day before, unruly facial stubble thickening into a goatee, and with his country’s familiar cerulean-and-yellow banner by his side, Ukrainian President Volodymyr Zelensky launched into his latest appeal for help in the lopsided war against Russia.

      This time, his audience was the U.S. Congress, and Zelensky’s speech by video link featured what has become a trademark blend of passion and defiance — a rhetorical flair that has propelled the Ukrainian leader to folk-hero status not only among his own people, but in the halls of Western legislative power.

      https://www.latimes.com/world-nation/story/2022-03-16/ukraine-zelensky-speeches-have-made-him-folk-hero

  19. Yesterday I posted an article from Monday, March 14 2022 about Fauci telling MSNBC “it is likely that we’re not done with this when it comes to vaccines,”

    But I don’t know if anyone clicked the link below to hear the description of Fauci resurfacing.

    https://youtu.be/G_nOXbNetVQ?t=21

  20. Will Asian D-voters ever make the connection between their votes & rampant vibrancy in Democrat-Bolshevik malgoverned urban centers?

    ‘The Boys’ star Karen Fukuhara says she was a victim of a hate crime

    https://pagesix.com/2022/03/17/the-boys-star-karen-fukuhara-says-shes-victim-of-hate-crime/?_ga=2.240848771.180325067.1647537551-310975459.1628534074

    “The Boys” star Karen Fukuhara revealed on Instagram that she was an alleged victim of a hate crime this week and is now calling to end Asian hate.

    Fukuhara, who plays Kimiko on the Amazon anti-hero series, shared that she was walking down the street when “a man struck me in the back of my head.” She claimed it “came out of nowhere,” as she and the perpetrator “made no eye contact before.”

    1. Why do Vibrants hate fellow BiPOC Asians so much? Is it envy? I mean, you don’t see Asians attacking Vibrants over, say “anatomical envy”. Or do they?

    3. That actually happened to me before years ago in Providence RI. Some kid came up behind me and smacked me in the back of the head and ran away. It’s not always a hate crime. Sometimes it’s just somebody being an idiot.

    2. Let’s not forget that in 2021 our FedGov greased palms in the media to the tune of $1billion to sell the jabs.

      1. Nice work, if you can get it. It seems that “journalism” has for some time been little more than the talking heads regurgitating press releases.

        1. “journalism”

          The word has been misappropriated. It still exists, just not always in the place that claims it.

  24. The NYT Now Admits the Biden Laptop — Falsely Called “Russian Disinformation” — is Authentic
    https://greenwald.substack.com/p/the-nyt-now-admits-the-biden-laptop?token=eyJ1c2VyX2lkIjoyODUxMjc5OSwicG9zdF9pZCI6NTA1MTg5MzksIl8iOiJ0dVNaciIsImlhdCI6MTY0NzUyNzA1NiwiZXhwIjoxNjQ3NTMwNjU2LCJpc3MiOiJwdWItMTI4NjYyIiwic3ViIjoicG9zdC1yZWFjdGlvbiJ9.D29TAHc9EZVgYOEJue5xhwTOtChF7p28MuIolyCJQBU&s=r

    (snip snip)

    “The media outlets which spread this lie from ex-CIA officials never retracted their pre-election falsehoods, ones used by Big Tech to censor reporting on the front-runner.

    “One of the most successful disinformation campaigns in modern American electoral history occurred in the weeks prior to the 2020 presidential election. On October 14, 2020 — less than three weeks before Americans were set to vote — the nation’s oldest newspaper, The New York Post, began publishing a series of reports about the business dealings of the Democratic frontrunner Joe Biden and his son, Hunter, in countries in which Biden, as Vice President, wielded considerable influence (including Ukraine and China) and would again if elected president.

    “The backlash against this reporting was immediate and intense, leading to suppression of the story by U.S. corporate media outlets and censorship of the story by leading Silicon Valley monopolies. The disinformation campaign against this reporting was led by the CIA’s all-but-official spokesperson Natasha Bertrand (then of Politico, now with CNN), whose article on October 19 appeared under this headline: ‘Hunter Biden story is Russian disinfo, dozens of former intel officials say.’

    “These ‘former intel officials’ did not actually say that the ‘Hunter Biden story is Russian disinfo.’ Indeed, they stressed in their letter the opposite: namely, that they had no evidence to suggest the emails were falsified or that Russia had anything to do them, but, instead, they had merely intuited this ‘suspicion” based on their experience:

    “We want to emphasize that we do not know if the emails, provided to the New York Post by President Trump’s personal attorney Rudy Giuliani, are genuine or not and that we do not have evidence of Russian involvement — just that our experience makes us deeply suspicious that the Russian government played a significant role in this case.

    “But a media that was overwhelmingly desperate to ensure Trump’s defeat had no time for facts or annoying details such as what these former officials actually said or whether it was in fact true. They had an election to manipulate. As a result, that these emails were ‘Russian disinformation’ — meaning that they were fake and that Russia manufactured them — became an article of faith among the U.S.’s justifiably despised class of media employees.”

    (end of snips. link on the article to read the rest.)

      1. They must realize that Brandon is about to go past the event horizon. Amazing that so many people, out of pure ideology, voted for that vegetable.

      2. “Is this the first stage of Throw the Guy under the Bus?”

        Maybe it means Putin who hates puppies, children and has lot’s of overdue library books is about to reveal Hunter’s financial adventures in Ukraine.

    3. That is a very loooooong URL string.

      When you trim all that junk off the end of it (which can be used to identify and doxx you) it looks like this:

      https://greenwald.substack [dot] com/p/the-nyt-now-admits-the-biden-laptop

      Please shorten these URL strings, stop giving free ammunition to our enemies…

  25. Image file repost for all you neocon / neolib keyboard commados who have yet to send off a son, daughter, or non-binary sprog to go die for people like Klaus Schwab and Mitt Romney:

    https://ibb.co/sb2LQJP

    This is Reddit.

    This is Reddit, masturbating in the corner, while watching their wife get plowed by Chad…

    1. And since I mentioned Klaus Schwab.

      The Salty Cracker — Klaus Schwab Henchman Talks About Humans Being Hackable Animals (8m2s 3/17/2022):

      https://www.bitchute.com/video/0xMFCE4SOtGM/

      You’ll never be anything more than cattle to these people.

      Except for the Kulaks, of course. They need to have all of their assets confiscated before they get shoved into the globalist vaccine / famine / gas chamber.

      Ben, get the ropes ready…

  29. Good thing for Chinese stock market investors that the Chinese government decided to prop up prices. Because fundamentals are going south.

    1. China’s Covid spike: What we know and don’t know about its economic impact
      Published Wed, Mar 16 2022 4:02 AM EDT
      Evelyn Cheng
      Key Points
      – In the last few days, mainland China has seen its worst Covid outbreak since the initial height of the pandemic in early 2020 — when the economy contracted.
      – “Economic loss may be real this time,” Citi analysts said in a report, estimating the outbreak could hit China’s first quarter GDP by at least half of a percentage point.
      – Economists said it’s too early to tell what the full-year impact of lockdown measures is as some may last only a week or two.
      …

    1. CNBC TV
      Federal Reserve
      Federal Reserve approves first interest rate hike in more than three years, sees six more ahead
      Published Wed, Mar 16 2022
      2:00 PM EDT
      Updated Thu, Mar 17 2022 6:18 AM EDT
      Jeff Cox

      Key Points
      – The Fed approved a 0.25 percentage point rate hike, the first increase since December 2018.
      – Officials indicated an aggressive path ahead, with rate rises coming at each of the remaining six meetings in 2022.
      – Members also pared expectations for economic growth this year and sharply raised their outlook for inflation.

      https://www.cnbc.com/2022/03/16/federal-reserve-meeting.html

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