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Buyers Are Getting Screwed Every Day

A report from the Nevada Current. “The Federal Reserve’s bump in its benchmark rate brings it to the .25% to .50% range, after historic pandemic-era lows. As a result, the market may be stabilizing, at least in some places. The median price of a home in Reno fell by almost 2.5 percent from January to February, according to RSAR. ‘For 12 years, we’ve been saying ‘rates are at an all-time low,’ says Derek Parent of PRMG in Las Vegas. ‘That is no longer the truth.'”

“With home values increasing close to 30 percent in the last year and income growth in the low single digits, Las Vegas Realtors president Brandon Roberts acknowledges prices are unsustainable. Maybe. ‘They are but they’re not,’ he says. ‘They’re unsustainable for the majority of the working class in Nevada, but they are selling. That’s the weird thing.'”

From 27 East in New York. “Bill Wright, a partner at PAR East Mortgage in Southampton, agreed that the initial impact of higher rates would be felt by those ‘marginal borrowers,’ who already had a hard time qualifying for a mortgage, when even a 1 percent increase can add a couple hundred dollars to their monthly payment. ‘The housing market has been insane for the past two years, where you’re seeing 20 to 30 people bidding on a house,’ he said. ‘That market is going to die out.'”

The Lehigh Acres Citizen in Florida. “Land, new home sales and development expert Randy Thibaut, founder of LSI Companies, stated that while usually the national real estate cycle fluctuates every seven years, the country is in currently on the 11th year of an uptick in new single-family homes sold. ‘We thought we were going to see softening, but then something happened — it was COVID-19,’ Randy said. ‘It was the spark that lit the fuse in our market. Our permits soared in spite of the pandemic.'”

“Randy used a subdivision house in Cape Coral that in 2020, sold for $267,000. In Quarter 4 of 2021, that house is now valued at $366,000 — a 37% increase. ‘A house in the North Cape could be $500,000 this year,’ he said. An eye-opening statistic was that 25% of new single-family home permits in Southwest Florida were pulled in Cape Coral — notably in the north Cape. ‘I don’t see that stopping,’ he said. ‘People are flocking there because of affordability.'”

Colorado Public Radio. “Andrew Friedson, an associate professor of economics at the University of Colorado Denver, said such a notable shortage of new homes coming on the market can cause price spikes, creating a sort of self-fulfilling collective psychology. ‘Prices are made up, right?’ Friedson said. ‘If what you have is realtors convincing a critical mass of people to bid very large numbers, then those very large numbers become the price.'”

“Friedson said it was market tendencies similar to those he is seeing now that caused the housing bubble of the late 2000s, leading to the Great Recession.  ‘It’s a question of ‘Are these houses worth this money or is this speculative and people are trying to get in now before it goes crazy?’ he said.”

The Los Angeles Times in California. “The $141-million offer by Richard Saghian for the Bel-Air mega-mansion known as ‘The One’ was approved Monday by a U.S. Bankruptcy Court judge. The 105,000-square-foot marble-and-glass home on a Bel-Air hilltop remains unfinished and carries more than $250 million in claimed debts. Saghian’s $126-million bid, which totaled $141 million after auction fees, means many creditors are facing substantial and even total losses for the house.”

From Macleans in Canada. “In May 2021, Molly Fleming and her brother Matthew leaped into southern Ontario’s pandemic-fuelled real estate frenzy, buying a postwar bungalow in Hamilton they intended to use as an investment property. First-time homebuyers both, they paid above the $500,000 asking price for the modest property. A couple of months after they took possession, their new upstairs tenant called to complain about a musty smell wafting from the closet. Molly went to investigate, and soon spotted other worrying issues they hadn’t noticed on their only walk-through before they bid.”

“What’s more, says Andy Christie, owner of Safe Homes Canada, an inspection service based in Barrie, Ont., some listing agents are not fans of rigorous home inspectors. Last summer, Christie was doing an inspection for a client looking to buy a century home in Newmarket, Ont. The seller’s inspection report suggested the house was fine, but Christie discovered that most of the crawl spaces were inaccessible, making it almost impossible to assess the foundation or floor structure. Any repair work down there would be costly and difficult.”

“He persuaded his clients not to buy it. Days later, Christie drove by to see a ‘sold’ sign in front of the home and now wonders if whoever bought it was aware of the sagging, shifting or cracking that was sure to come. ‘Buyers are getting screwed every day,’ he says.”

“In nearby Halton Hills, Lisa Song had the chance to buy her country dream home in early 2020; but only if she passed on a home inspection, the listing agent told her. After they moved in, Song and her family discovered defects, like a lack of well water being pumped into the house and major problems with the septic system. Cost of repairs: more than $120,000. ‘I almost fell to pieces knowing I would have to get a mortgage to fix the septic,’ Song told CTV News.”

“How long the dizzying ride will continue is anyone’s guess, but for now the Flemings look back on the risk they took as the price of entry: if they’d missed out on the house because they asked for an inspection, their window to own might have slammed shut. ‘And that,’ says Molly, ‘would have been a way bigger regret for me.'”

From The Guardian. “China Evergrande Group has blamed a ‘drastic change’ in the company’s prospects for a delay to publishing its annual results but has promised investors that it will reveal how it plans to restructure its massive debts of $300bn by the end of July. The turmoil at the stricken company was underlined when it also announced its property services unit had discovered a $2bn hole in its accounts. The seizure of the funds, which the property services unit discovered when it was preparing its annual report, underscores the turmoil at Evergrande and has baffled investors.”

“Andrew Chan, an analyst at Bloomberg Intelligence, said: ‘It’s peculiar because investors expect Evergrande management should be aware of where the cash went rather than instead setting up an investigation committee to find out.’ It will also increase fears among foreign creditors that they will never see their money.”

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This Post Has 76 Comments

        1. For a second I thought you were talking about real gold. During the Great Recession, lots of unemployed folks in CA went panning for gold.

      2. At 5% the monthly payment including property tax on the average CA home will be about 4000$ with 20% down and about 4500$ with 10% down. The latter is closer to the average. That’s 54K a year where the median household income is about 80k….so 68% of median income.

        We’ll have some really sound lending coming on line over the next 12 months for sure.

  3. ‘They’re unsustainable for the majority of the working class in Nevada, but they are selling. That’s the weird thing.’”

    Mortgage and appraisal fraud has some ‘weird’ effects.

    Enfield, CT Housing Prices Crater 17% YOY As Surging Fear, Uncertainty And Doubt Dominates US Housing Market

    https://www.movoto.com/enfield-ct/market-trends/

    1. The elephant in the room as usual. ‘Prices are 13 times incomes, but the loans keep going out, don’t ask me how!’ ‘Prices are up 50% in a year, but somehow appraisers keep hitting the numbers!’

      1. When the reaper demands accountability… which he surely will… “weird” isn’t going to work.

  4. It’s a thing of beauty watching Real Journalists getting their pink slips from failing globalist propaganda outlets.

    BuzzFeed News Announces Layoffs and Departure of 3 Top Editors

    https://www.adweek.com/media/buzzfeed-news-announces-layoffs-and-departures/

    BuzzFeed News editor in chief Mark Schoofs announced Tuesday morning in an internal memo that the outlet will be downsizing through a mix of cuts and voluntary buy-outs. A BuzzFeed representative has confirmed the report.

    The cuts, which affect 1.7% of the workforce, will occur mostly in the BuzzFeed Video and Complex Editorial teams, according to a note shared internally by CEO Jonah Peretti.

        1. It will do them good to earn their pay doing honest work, say like stocking shelves or flipping burgers.

      2. I know how to code. It’s a wonderful skill, which makes me ever popular among colleagues who lack it.

          1. “$400 per vehicle to state residents, with a cap of two vehicles”

            So you can afford 2 cars, insurance, and maintenance but not the gas?

            Take a bus!

          2. Associated Press
            California car owners could get up to $800 for gas under Newsom proposal

            Everything’s free now, yet these clowns can’t understand where the inflation is coming from. You can’t fix stupid.

          3. up to $800

            Details via the AP article, “Newsom’s idea is to give car owners $400 debit cards for up to two vehicles, for a total of $800.”

  6. ‘It’s peculiar because investors expect Evergrande management should be aware of where the cash went rather than instead setting up an investigation committee to find out

    It’s gone Andy.

    ‘It will also increase fears among foreign creditors that they will never see their money’

    Magic 8 ball says yer fooked gringos.

    1. Go poke around Pooh Bear’s finances, I bet some of it wound up there. Good luck with that investigation, and try to not wind up dead.

    1. As one Salinas broker explained, “Between soaring unemployment and violent crime, California has become a hellish place to live.”

      Ask Nick Johnson he knows makes youtube videos on this hilarious in sad a way

  9. ‘Randy used a subdivision house in Cape Coral that in 2020, sold for $267,000. In Quarter 4 of 2021, that house is now valued at $366,000 — a 37% increase. ‘A house in the North Cape could be $500,000 this year,’ he said’

    Every fresh hell will apparently be revisited.

    ‘An eye-opening statistic was that 25% of new single-family home permits in Southwest Florida were pulled in Cape Coral — notably in the north Cape. ‘I don’t see that stopping,’ he said. ‘People are flocking there because of affordability’

    Click!

    1. Cape Coral is an interesting topic. If you go on satellite view you will see the groundwork for subdivisions that were created decades ago and went bankrupt. Occasional houses but mostly just grids. There are people all over the country who have inherited lots in that area. It’s a makes for a great snapshot of what Florida real estate is really like. When Cape Coral is getting press the end is near.

      2. Similar anecdote: The last Florida bust there was a RE website or blog with something called a “crane watch” or some such similar name. They counted how many large construction cranes were in operation at one time in downtown Miami every month or so. I think at the height of the boom they counted 70! And it all ended, literally, almost overnight.

  10. ‘I almost fell to pieces knowing I would have to get a mortgage to fix the septic’

    It was cheaper than renting Lisa. Every month you got a whopping payment to cover a box fer yer sh$t.

    2. Maybe I just don’t understand the new paradigm of septic synergies and such but how much does a hole really cost to dig?? Are there no Mexicans at Home Depot there? Oh it’s Canada, do they have snow Mexicans? I think I could get it dug out for a 12 pack and a small wad of cash in most places. None of this stuff is rocket science.

      I’m always amazed at the amounts some people will blow on basic home projects. Someone needs to make an app that imports Home Depot prices for a range of projects all the way up to and including an entire house so that people can see what retail is on the parts and then see how much they are getting robbed for the labor.

      1. and then see how much they are getting robbed for the labor

        Those Diesel F-350’s don’t pay for themselves!

  15. Pay the mortgage, or put food on the table…fun times coming to Biden’s America.

    Fertilizer prices just hit a record high sparking fears of global starvation and the worst food insecurity level since World War II

    https://finance.yahoo.com/news/fertilizer-prices-just-hit-record-174439996.html

    Farmers worldwide are feeling the sting of sanctions, as the Ukraine War has sent fertilizer prices soaring to new all-time highs, prompting concerns over a global food shortage.

    Fertilizer prices last week were nearly 10% higher than the week beforeaccording to Green Markets North America Fertilizer Price Index, the highest price point ever recorded. Prices are now 40% higher than a month ago, before the invasion of Ukraine.

  16. Aussie sheeple elected WEF stooges…now they’re getting what they voted for, good & hard. I have no sympathy. None of this cohort will be buying $2 million peso shacks.

    Crisis as workers can’t keep up with rising cost of living

    https://www.news.com.au/finance/money/costs/crisis-as-workers-cant-keep-up-with-rising-cost-of-living/news-story/ee6b6f3b0ead6c4a3b5dd4e8bc874ce3

    Some Aussie workers can’t even cover basic bills and are being left $148 in debt each week as they face ongoing serious financial stress.

    Aussie aged care workers are falling into debt or are left with less than $20 a week after paying for essentials due to the skyrocketing cost of living.

    A new report showed the wages in the aged care sector have failed to keep up with the cost of living and those in single-parent household can’t afford basic essentials, with their weekly costs leaving them short by $148 each week.

  17. Compassion, Inc. rackets are a lucrative source of graft for Democrat municipal party machines.

    Lawmakers demand fix after Post reveals 2K empty apartments for homeless

    https://nypost.com/2022/03/22/pols-demand-fix-after-post-reveals-empty-apartments-for-homeless/

    Powerful city lawmakers demanded that Mayor Eric Adams take quick action to fill the roughly 2,500 empty city apartments for homeless New Yorkers, after The Post revealed how a bureaucratic ‘nightmare’ left them unoccupied.

    The figure was made all the more striking because it is nearly identical to the 2,463 New Yorkers tallied living on city streets and in the subway system by the federal government’s most recent tally.

  18. ‘Health officials have tried to brush off the reports, and doctors have told women that it’s just a result of stress — something dubbed “hysteria” in earlier times. Upon hearing that so many women’s concerns were brushed off as hysteria, Malone said: “Is this the 1950s? Have I just gone back a century? This whole thing that women are being histrionic is so mid-century. But that’s how they rolled it out. And it’s not just younger women. It’s post-menopausal women that start having menstruation. That’s another big one, which is, for pathologists, which is part of my background, that’s a red flag for cancer.”

    ‘Sure enough, a study published in Obstetrics & Gynecology in January 2022 — funded by the National Institute of Child Health and Human Development (NICHD) and the National Institutes of Health (NIH) Office of Research on Women’s Health — confirmed an association between menstrual cycle length and COVID-19 shots.’

    ‘If you’ve heard the term “mass formation psychosis” recently, it’s likely because Malone mentioned it on an episode of “The Joe Rogan Experience” December 31, 2021, which was viewed by more than 50 million people January 2, 2022, mass formation psychosis reached a value of 100 on Google Trends, which means it had reached peak popularity, after previously being practically unheard of.’

    ‘The technocrats quickly took action, manipulating search results and populating Google with propaganda to discredit Malone and the mass formation psychosis theory — even though Mattias Desmet, professor of clinical psychology at the University of Ghent in Belgium, who has 126 publications to his name, has been studying it for many years, and the phenomenon actually dates back over 100 years.’

    ‘Those under the spell of mass formation psychosis obsessively focus on a failure of the normal world or a particular event or person, who becomes the focus of the attention and can effectively control the masses.’

    ‘Mass formation can occur in a society with feelings of social isolation and free-floating anxiety among a large number of people, and provides a coherent explanation of why so many people have fallen victim to the unbelievable lies and propaganda of the mainstream COVID-19 narrative. The phenomenon leads to totalitarian thinking and, eventually, to totalitarian states, but as Malone told Owens, fortunately about one-third of people are resistant to it.’

    https://www.theepochtimes.com/data-reveal-disturbing-trend-from-covid-jab_4348749.html

    1. People Magazine ran a spread about Justin Bieber’s wife having a stroke, and how that’s normal for healthy 25 year olds.

      Happy TWO YEAR anniversary of “two weeks to flatten the curve”

      1. ‘The technocrats quickly took action, manipulating search results and populating Google with propaganda to discredit Malone and the mass formation psychosis theory’

        This is an example of crimes against humanity, IMO. Everybody who was responsible for this should be tried and hung.

      2. and how that’s normal for healthy 25 year olds

        Strokes, blood clots, heart attacks and the new favorite: ‘died suddenly’ are the new normal for young adults.

      3. Clots are not normal and healthy, but it’s not uncommon for women on birth control, and has been happening for decades before COVID or vaccines or HBB. As for women and cycles, yes, stress can throw them off. Doesn’t take much. As far as I know, there’s no lasting harm.

  19. This came out before the LAT article above:

    ‘Though Fashion Nova founder Richard Saghian’s $141-million offer for the mega-mansion known as “The One” was the high bid at a bankruptcy auction this month, it may not be enough to close the deal.’

    ‘Concierge Auctions President Chad Roffers…also noted, however, that the $141-million bid was 48% of the list price, which he said was the exact same discount at which Niami’s last three homes sold. “In preparing for this I was doing my homework on recent transactions,” he said. “It’s uncanny.”

    https://www.latimes.com/business/story/2022-03-20/the-one-mega-mansion-russia-ukraine-fashion-nova-richard-saghian

  21. So, Biden in a speech on March 22, 2022, mentioned a “New World Order “, and words to effect that US needs to lead in whatever this term means.
    If you had any doubts this treasonous cockroach isn’t A Puppet for the Globalists takeover, have no doubt.
    Biden should be impeached for advocating overthrow of US as Sovereign State with Constitution.
    Did anybody vote for a ” New World Order”?
    And what does that term mean anyway.? We know what Klaus Schwab, Bill Gates, Soros and other hijackers define the New World Order as being.
    We already have had two years of mass destruction and murder by Medical Tyranny based on fraud by collusion by Corporate fake and censored news.

    These are Private Parties capturing Governments with intent to overthrow Sovereign Countries and constitutions , using “Emergencies” as a weapon of takeover., with fake news in collusion.
    The Globalists are going for this takeover by fraud and force. They care not who is injured or killed in this Innsurrection by the Globalists.
    How are they stopped , because its obvious they want to enslave populations and take away all freedoms , constant injections of poison , you will have nothing and be happy.
    NOBODY voted for this hijacking of the World by private party stakeholders corrupting Governments,

    1. 300+ million guns in the hands of U.S. civilians.

      Making threats against elected officials is the glow bait glow trap they want you in, which is why there will be arrests, trials, convictions, and executions, in that order.

      The Day Of The Rope is coming.

      Every globalist is going to hang. All of them ☠

  22. Did somebody mention Mass Formation Psychosis?

    Russia Today — Vaccinated people more likely to support harsh anti-Russia measures (3/22/2022):

    “A survey conducted in Canada suggests the unvaxxed have much more diverse opinions on the Russia-Ukraine conflict.

    Overwhelmingly, more than 80% of the vaccinated respondents supported expanding sanctions, seizing assets of Russian nationals associated with President Vladimir Putin, cutting off shipments of Russian oil, and sending military equipment to Ukraine. Over half of the group agreed with the idea of sending military jets to the Ukrainian Army, and 30% thought Canada should dispatch its own military forces to Ukraine.

    Furthermore, 82% of vaccinated respondents felt that Canada should impose tougher sanctions on Russia even if it means they would have to suffer higher prices and slower economic growth at home.”

    https://www.rt.com/news/552492-vaccinated-support-russian-sanctions/

  23. Dumver’s Candi CdeBaca is now accusing fellow Hispanics on the city council “Malinches” if they refuse to go along with her Marxist policies.

    “La Malinche” was a native woman who helped Cortez, as an interpreter, during his conquest of Mexico. Some also say she was one of Cortez’s lovers. Mexicans generally regard her as a traitor, their verison Benedict Arnold.

    2. She is such a vile, nasty woman.

      BTW, still waiting to hear about the ethnic / linguistic origins of her last name.

      Spain? Mexico? Central America? What a phony.

        1. Correct. This contraction is unique to the American southwest. I never saw it used in Mexico.

  24. “The Federal Reserve’s bump in its benchmark rate brings it to the .25% to .50% range, after historic pandemic-era lows. As a result, the market may be stabilizing, at least in some places. The median price of a home in Reno fell by almost 2.5 percent from January to February, according to RSAR.”

    Reno is an absolute sh!thole with few good paying jobs. The downtown area resembles something out of the rust belt – shuttered hotel/casinos and boarded up flea bag motels. I have no focking idea how the hell prices did what they did there, except for “The Californians are coming ’cause it’s cheap!”

  25. Arggg … sign now with a 5-10% deposit. Come up with the mortgage in 1-3 years when the build is finished – apparently it goes up 20-30% a year. What could really go wrong?

    I know that this is CDN$s at 0.80 exchange rate – but this is flipping crazy.


    Benchmark price for new single-family GTA home soars over $1.8 million in February: BILD

    According to the most recent data released by the Building Industry and Land Development Association (BILD), the benchmark price for a new single-family home was $1,858,713 in February, up 35.3 per cent over the last 12 months. By comparison, the benchmark price for a new condominium apartment in the GTA rose 13 per cent over the same time period to $1,177,739.
    https://www.livabl.com/2022/03/benchmark-price-new-gta-home-february.html

    1. In-law cousins wanted to build a new home is small town Texas (north of Houston). Nothing custom designed – just picked from one of the builders standard plans. The builder just added in a clause to the contract (before signing) that if materials cost more than 5% of the current estimate, the buyer would be responsible for the additional cost. They declined – and will look elsewhere.

      Watch out for builders and their contracts – thank Deity that they actually read and compared the contract versions.

  26. Speaking of vile, nasty women.

    Madeleine Albright died. Here she is speaking to Lesley Stahl on 60 Minutes saying that the deaths of 500,000 Iraqi children was “worth it” Rest In P*ss and may their half a million dead faces haunt you for all eternity.

    https://www.youtube.com/watch?v=vppDu9guvxE

    The only good globalist is a dead globalist.

    Let’s all do our part, and help create more of them 🙂

    1. the deaths of 500,000 Iraqi children was “worth it”

      And we wonder why everyone hates us.

  27. Kensington, MD Housing Prices Crater 14% YOY As Soaring Inventory Sends Prices Diving Across Northern Virginia Area

    https://www.movoto.com/kensington-md/market-trends/

    As one Washington DC broker lamented, “How can we possibly sell a resale house when builders are selling new houses on the same street for 20% and sometimes 30% less?”

    1. “I know everything, I want waffle fries”

      🙂

      I am going to have to use that out in the real world where it takes the weekly paycheck of a part-time fast-food worker to fill the 40 gallon tank in my F 250.

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