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Buyers Made Snap Decisions With Huge Sums Of Money That — In Some Cases, They Never Actually Had

A report from the Review Journal in Nevada. “In the southwest Las Vegas Valley, a one-story house for sale boasts vaulted ceilings, crown molding, and an open floor plan. It’s a ‘gem,’ the listing declares — and amid falling home sales locally and nationally, the price was slashed by $25,000 on Tuesday. It’s not alone. In Henderson, a house fell in price by almost $31,000 on Thursday, and in the northwest valley area, the price of a house was cut twice this week, shedding a total of $110,000, as seen on listing site Zillow.”

“Zillow economist Nicole Bachaud said in an email that sellers are ‘finally being challenged to price their homes competitively’ after a period in which buyers ‘seemed willing to meet almost any asking price, and in many cases bid over list price to beat out other interested buyers.'”

“It’s anyone’s guess where home values will head in the next several months. But as Tim Kelly Kiernan​, a branch manager at Realty One Group, told me, there were a ‘crazy number’ of price cuts over the past week in Southern Nevada — 1,447, up from 319 during the same week last year, according to figures he pulled from Las Vegas’ main listing service. ‘You can’t overprice it anymore,’ he said.”

From Inside Nova in Virginia. “Remember the scene in ‘Animal House’ where Kevin Bacon pleads with everyone not to panic – and gets trampled when they panic anyway? Lisa Sturtevant might be able to relate. She’d be Kevin Bacon in this scenario. Sturtevant is chief economist of Bright MLS, which each month details home sales across the region. And while some have begun to wonder if it is, indeed, time to panic over a potentially stalled local real-estate market, she suggests taking a breath and looking at the big picture, good and bad. And there’s some of each.”

“‘In the months to come, expect housing-market activity to be slower than the frenzied pace of last year,’ Sturtevant (who previously served as chief economist for Virginia Realtors) said as May sales figures were reported by Bright MLS on June 14. For much of the past 12 months, declines in year-over-year sales were explained as due to tight inventory limiting options for buyers. That remains the case to a degree, but the feeding-frenzy mentality of many prospective buyers has clearly dissipated.”

“The decliners were Arlington, where the median price declined 6.7 percent to $676,200, and the District of Columbia, off 5.3 percent to $650,000.”

The Colorado Sun. “Don’t panic all ye house hunters, said Matt Leprino, a Realtor and head of real estate brokerage Remingo in Denver. Some of the Fed’s three-quarter point increase was already priced into lenders’ rates, which went above 6% before the Fed announcement. The mortgage rate even declined a smidge a day later. It actually may be easier to buy a house for those shut out in the past two years because they were getting outbid.”

“‘I would say that the conversations are more on the seller side, quite frankly, because as these changes occur, the buyers are more in the driver’s seat,’ said Leprino, who helps sellers set their sales price. ‘Setting the expectation that the house probably won’t sell on day one. You probably won’t get 12 offers. We should not be pricing at market plus 3%.'”

“‘We kind of hit a brick wall last month, quite honestly, with this pricing,’ Leprino said. ‘I mean, if what people can afford went down last month, oh my God it’s really gonna go down this month. So I think you will see an almost immediate stop to price increases. Nobody’s going to be bidding up anymore.'”

From CBS 8 in California. “Even with a housing shortage, experts say that San Diego’s housing market is certainly cooling off. Frank Powell, president elect for the San Diego association of realtors says despite how small of an inventory there is, right now some houses are not moving. ‘We’re starting to see the houses down the market for 25-30 days right on average right now, if you would consider a few months even a month ago you’d have multiple offers on day one,’ said Powell. In San Diego, the average home price is $850,000 and the average salary in San Diego is around $70,000.”

From Cochrane Now in Canada. “According to Nicole Henson of CIR Realty, the market is still very much a seller’s market, but it is not as frenzied as in March and April. Henson says, ‘So interestingly, in January in Cochrane, we started with an average sales price of $464,500, skip to May, and we had an average sales price of $521,000. So, there’s been a big increase as the months have gone by here, but the peak really was in March of 2022. When we saw an average sales price of $520,000, but where we really hit the high in March was the detached average sales price was $654,000 and then in May of this year, we were down to $612,600. But, despite the fact that the prices are slightly down on the detached average, the average overall is, you know, $1000 higher in May of 2022 as opposed to March when we had the most activity.'”

“Mortgage broker Greg Foss with Mortgage Connection says there are a few factors coming down the pipe that may affect the housing market. Foss’ advice, ‘Don’t panic, that’s number one. That’s where a lot of people will think that this interest increase is significant, and it is. Money is money, but when we look at the black and white numbers of how that affects your mortgage payment, it’s not worth panicking about. That’s step number one and then number two is, if you are susceptible to price increases, it may be time to look at maybe taking a variable rate mortgage and locking it into a fixed and seeing if that’s a good option for you.'”

From CBC News in Canada. “Real estate professionals in London, Ont., say they’re seeing an increasing amount of buyers remorse now that the city’s real estate market has started to cool. Some buyers are considering backing out of deals made months ago when the market peaked. Last month, the London St Thomas Association of Realtors said the pace of real estate sales slowed to a level not seen in a decade as a glut of new inventory came onto the market in May. Slowing sales, fewer bidding wars and more inventory have led an eight per cent price decline in the London region within the last three months after the price of the average home peaked in February at $825,221.”

“‘There is definitely an influx of people who are coming to us looking for some assistance to negotiate their way out of a deal they don’t necessarily want to close on,’ said Stephanie Marentette, a lawyer with Cohen Highley LLP in London, who often handles real estate disputes. ‘ In some cases it’s buyer’s remorse,’ she said. ‘In other cases, you have people who were coming in with really strong offers that weren’t supported by the value of the property.'”

“These expectations, combined with pent up demand created a frenzied sellers’ market where buyers who were looking to stand out in a bidding war made snap decisions with huge sums of money that —in some cases, they never actually had. Katherine McIntyre, a mortgage agent with Forest City Funding in London, Ont. said she has clients who bought during peak prices in January, February and March who are now running into problems, such as lower than expected appraisal values from the bank, or a lower than expected price for the home they were selling to afford a new one.”

“McIntyre said much of her job involves finding money and equity to make mortgage approvals happen, but for some of her clients, remorse is a powerful thing. ‘It can be very tempting to try to walk away from the deal you agreed to, a lot of people think that initial deposit they put on the line, whether it be $20,000 or $30,000 is worth losing to walk away from a deal where the house value has dropped,’ she said. ‘That’s not the only cost. Unfortunately, you can face civil litigation.'”

From I AM Expat. “After recent years saw the Dutch housing market become increasingly competitive and inaccessible, new figures published by real estate association NVM indicate that, in the first few months of 2022, the property market in the Netherlands slowed down. ‘There is a lot of uncertainty in the market,’ Makelaarsland director Gijs van Wijgerden told the AD, explaining that the demand for housing continues to outweigh the supply. ‘The great madness is over. But the prices are of course still unbelievably high.'”

From Bernama on Malaysia. “Michael (not his real name) bought a high-rise residential unit in 2017. After the sales and purchase agreement (SPA) was signed, he noticed some ‘unhealthy signs’ in the construction of the housing project where he had booked a unit. Construction stopped for almost a year but was reactivated after buyers complained. Progress of the project was on-off-on-off until 55 percent of the development was completed, Michael said.”

“‘It was a traumatising experience. Most of the buyers had sleepless nights and we were clueless about what to do,’ he said. However, they are still in limbo as the construction has stopped altogether.”

“Siti Hawa (not her real name), another victim of a ‘sick project,’ and her husband bought a unit priced at RM300,000 in an affordable housing project in 2018.  According to the SPA, they were supposed to get the keys to their house last month (May 2022). She said there were issues from the start but being new buyers, they were unaware of their rights. ‘The SPA said the project will take 48 months (to complete), instead of 36 months. We did not question this because we did not know the units should be completed in 36 months. This means the developer was given a one-year extension from the start, which was already wrong,’ Siti Hawa said.”

“Sick projects may deteriorate further to become abandoned projects as experienced by Michael who said the Housing and Local Government Ministry is of the view that the project he bought into is ‘on the verge of being abandoned.’ ‘We have a lot of worries about this project, there is no peace at all since the beginning. Besides the sleepless nights, many of the buyers also disagree on what to do,’ he said.”

From Celebrity Networth. “A lot of people have lost A LOT of money in the last few months. And apparently, at least according to his own brother, one of those people who have lost A LOT of money is YouTuber-turned boxer, Jake Paul. To be fair, we don’t know to what extent Logan was exaggerating his brother’s situation for entertainment value. On the other hand, Jake has been a vocal crypto supporter in the past, so it’s a safe bet that a not insignificant portion of his assets are tied up in those types of investments.”

“The revelation came amid a discussion of Jake’s finances in general, like the $40 million he’s reported to have made as a boxer so far, and the almost $5 million he’s saying he’s still owed from his 2021 match with Floyd Mayweather. But according to Logan, that’s all a moot point: “It doesn’t matter, he put it all in crypto! He’s poor!”

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This Post Has 169 Comments

  1. From the video above:

    When Will the Housing Bubble Pop on Maui???

    Jun 16, 2022 When will the housing bubble pop? There has been a lot of activity in the real estate market lately. Interest rates are rising (over 5%). Over the past 30 days, we’ve seen some prices come down (even on Maui). Approximately 100 homes have adjusted their prices. Even some homes are staying on the market longer.’

    ‘Is this a sign that the housing bubble is about to burst?
    Burst may not be the right term for this. Is there any softening coming?
    These early signs are beginning to emerge. Will there be a market crash? Well, that’s the million-dollar question everyone is asking right now.’

    1. the ‘wisdom’ was that equity rich buyers from Silicon Valley, LA and Seattle were buying ‘quality assets’ in cash.

      Now all of a sudden he is worried about mortgage interest rates and timing the market.

      1. “…equity rich buyers…”

        If all these wannabe gazillionaire buyers actually have cash in hand, why sweaty palms about interest rates?

        If I had a nickel for every pound of fake that is out there, *I* would be a gazillionaire.

  2. ‘We have a lot of worries about this project, there is no peace at all since the beginning. Besides the sleepless nights, many of the buyers also disagree on what to do’

    Mike, take a breath, sit down, be calm. The first thing is for all you anons to do is agree on the first action. Stamp yer little feet!!

    1. That’s the WEF agenda, but it looks like even in France the sheeple are finally starting to wake up and turn on their globalist Quisling overlords and the corporatocracy’s captured political minions.

      Le lame duck: Humiliated Macron faces vote of no confidence as French voters make him pay for ‘arrogance’ and election ‘tsunami’ wipes out his majority, leaving the country in political paralysis

      https://www.dailymail.co.uk/news/article-10934243/Humiliated-Macron-faces-vote-no-confidence-French-voters-make-pay-arrogance.html

  4. ‘Remember the scene in ‘Animal House’ where Kevin Bacon pleads with everyone not to panic – and gets trampled when they panic anyway? Lisa Sturtevant might be able to relate. She’d be Kevin Bacon in this scenario’

    Eat yer crowz taxpayer.

  5. ‘There is a lot of uncertainty in the market…The great madness is over. But the prices are of course still unbelievably high’

    In accounting we call this YP Gijs. Yer problem.

    1. ‘There is a lot of uncertainty in the market…The great madness is over. But the prices are of course still unbelievably high’

      I see a lot of houses that wouldn’t even be a bargain at 75% off. This bubble is ludicrous.

    1. I put $150 in the 2-Fiddy last week and it got me between 3/4 and full in the 40 gallon tank.

      FJB and the bicycle he tried to ride in on.

      1. ,
        ~ $200 here in CA to fill the 150, yikes..

        So Joe thinks a Fed tax holiday of 18.4c/gallon will help!

        Who does he think pays pay for this.
        The taxpayer, and that will be the cut (handout),+ interest + inflation to boot.
        In fact the cut will be swallowed up by more inflation.

        How did depleting the strategic reserve go, Joe??

        Get back on your bike….
        LGB

  7. It’s a ‘gem,’ the listing declares — and amid falling home sales locally and nationally, the price was slashed by $25,000 on Tuesday. It’s not alone.

    Yawn. Not remotely interested in even looking until millions of FBs have been turned out of their shacks and their lenders are going insolvent left and right.

  8. “‘In the months to come, expect housing-market activity to be slower than the frenzied pace of last year,’ Sturtevant (who previously served as chief economist for Virginia Realtors) said as May sales figures were reported by Bright MLS on June 14.

    Three things:

    1. Realtors are liars.

    2. Realtors are liars.

    3. Soaring inflation has finally forced the Fed’s hand on interest rate hikes. The punch bowl that enabled mass recklessness and greed by FBs has been taken away. Now when millions of FBs start walking away from their underwater shacks, or more likely squatting in place and refusing to honor their financial obligations in the spirit of the deadbeat ideal so exalted by the Democrat Party, shack prices and sales are going to crater.

    1. Falling home prices must be combined with a secondary shock: job loss, loss of income, divorce, illness, and THEN the defaults happen.

  9. “‘It was a traumatising experience. Most of the buyers had sleepless nights and we were clueless about what to do,’ he said. However, they are still in limbo as the construction has stopped altogether.”

    Stupid should hurt, “Michael.”

  10. “In San Diego, the average home price is $850,000 and the average salary in San Diego is around $70,000.”

    Houses at over 12 times average income…I’m sure that’s sustainable!

    1. “…home price is $850,000 and the average salary in San Diego is around $70,000…”

      Never mentioned in the MSM: Holding costs.

      Rule of thumb in SoCal is that holding costs *exclusive of mortgage* is about 2%-3% of purchase price / year.

      Non mortgage holding costs include property taxes, HOA dues, insurance, maintenance and the like.

      Thus a 850K home yearly exclusive of mortgage holding cost nut would range from about 17K->25K.

      Doable on a 70K -> 140k (2 wage earners) household income?

      Maybe in some REIConplex fantasy world.

      1. Isn’t all new SoCal construction “Mello-Roos”, meaning 2% property tax for 20 years?

        2% of 850K is $17,000. About $1400 a month in taxes alone. To live in a 3rd world sh!thole. I won’t even visit Clownifornia, I refuse to support it in any way.

        1. “…Isn’t all new SoCal construction “Mello-Roos”, meaning 2% property tax for 20 years?…”

          I believe that is correct.

          1. Mellos Roos is in addition to normal property taxes. And that 20 years can be extended up to 40 years. With China, BTC and tech socks collapsing, it shouldn’t be too long until we start hearing stories of all the distressed homeowners in Irvine.

            I almost feel sorry for the suckers who bought houses near Great Park. I wonder if they know their houses were built on top of an air base and that there is a landfill within walking distance to those 5-6 million dollar homes.

    2. Houses at over 12 times average income…I’m sure that’s sustainable!

      Nancy Pelosi, Mitch McConnell and Co. have presided over this entire thing from its inception. The past 40 years have been an economic freakshow.

      1. They have become tremendously wealthy. Their constituents can’t even afford to feed and shelter themselves.

    3. Rich Toscano over at Piggington used to have a nice chart showing this ratio over time. I can’t find it now.

    1. Markets
      Up and Down Wall Street
      The 60/40 Stock and Bond Strategy’s Time Has Come Again
      By Randall W. Forsyth
      Updated June 19, 2022 / Original June 17, 2022

      It may be time for investors to return to one of the oldest of portfolio management tools to cope with the new bear market.

      That would be the traditional combination of 60% stocks and 40% bonds, which for years had been a marvelous recipe for strong returns with reduced risk. Steadily declining yields had provided a tailwind for both asset classes. When risky equities would falter from a worsening economy or financial disruptions, interest rates would decline, boosting bonds.

      Once bond yields started to run out of room to fall, the basic raison d’être of the 60/40 portfolio was called into question, including in this column more than three years ago. Those objections grew more acute as inflation built up its head of steam while bond yields remained low, as noted here last year.

      Still, it comes as a bit of a shock to see how badly the strategy has fared since then. According to a research note from Bespoke Investment Group, the 60/40 portfolio suffered a negative total return of 17.8% since the beginning of 2022, the worst start to a year since 1976 and the second-worst six-month showing since then. Not even the 2007-09 financial crisis was as painful for such a 60/40 portfolio, the advisory noted.
      …
      https://www.barrons.com/articles/60-40-stock-bond-portfolio-allocation-51655478299

    1. As I have said before, Globohomo won’t be satisfied until the rainbow flag flies over the Kremlin

    2. Just curious … who supplies Lithuania with oil and natgas? And what will happen in Vilnius should the Russians close the spigot?

  13. What happened with Joe Biden and his daughter Ashley Biden in the shower together?

    And how old was she when the group showers with dad ended?

    At least there’s no more mean tweets now, right?

    1. Related topic: I’m surprised the violent left (redundant, I know) or some Deep State goons haven’t taken out Tucker Carlson yet. Antifa already showed up at his house and terrorized his wife.

      Joe Biden is a pedophile.

      Replacement theory is not a theory.

      There are only two genders.

      The 2020 election was stolen.

      1. The Deep State and it’s DoJ-FBI henchmen will be working hand-in-glove with globalist-sponsored enforcer thugs like BLM and Antifa to target anyone they deem to be a threat to the globalist agenda.

        1. Don’t forget the Southern Poverty Law Center.

          They’re not a government agency, they have no legal authority over anything. But they operate as a private sector domestic spy agency, and have anointed themselves as the language police.

          They need to be discredited and deligitimized at every opportunity. They are a terrorist criminal cartel, and they need to be stripped of their non-profit tax status.

      3. Tucker lives in south Florida now. Doesn’t live in DC anymore. Not much antifa presence where he lives. Good for him.

  14. Canadians deserve everything they’re going to get for electing this pajama boy globalist stooge.

    PM Trudeau is shirking Canada’s inflation fight, Scotiabank criticizes

    https://english.alarabiya.net/business/economy/2022/06/20/PM-Trudeau-is-shirking-Canada-s-inflation-fight-Scotiabank-criticizes

    One of Canada’s largest commercial banks fired a broadside at Prime Minister Justin Trudeau’s government, warning that high levels of federal spending are hurting the fight against inflation.

    Economists at Bank of Nova Scotia, in a report to investors published on Sunday evening, said that aggressive interest rate increases launched by Bank of Canada Governor Tiff Macklem will unduly punish businesses, given still-elevated levels of fiscal stimulus.

    1. I haven’t been following Canaduh lately. Is the Trudeau government downplaying inflation, even saying that it’s “good”?

  15. I dread to think what might happen Julyecond or Augustourth.

    Teen Killed, Officer Injured at D.C. Juneteenth Shooting

    PAUL BOIS
    19 June 2022

    “At one point, there was some type of ‘incident or fight’ among the crowd that was broken up, authorities said. Then, after a ‘secondary incident,’ people started to flee, and some had their legs and ankles ‘trampled,’” noted NBC Washington

    “While officers shut down the event and paramedics treated victims who suffered injuries running away, the gunfire that would claim the life of a teen and injure three others erupted,” it added.

    As Breitbart News previously reported, police are searching for “a black male about 5’4″ with curly hair wearing all black.”

    https://www.breitbart.com/crime/2022/06/19/teen-killed-officer-injured-dc-juneteenth-shooting/

      2. The wealthiest area in my metro area is far, far away. A former co-worker calls it the WPP: white person premium. You want to live entirely among white peoples in an urbanized area? That’s gonna cost you a premium

    2. Juneteenth

      Dumbest focking holiday ever. I have a check from a client that I was anxious to cash, and then I found out the banks are closed today. As the economy melts down, I become more and more concerned about bad checks.

  16. “Even with a housing shortage, experts say that San Diego’s housing market is certainly cooling off. Frank Powell, president elect for the San Diego association of realtors says ”

    Even the most incompetent attorneys advise perps to keep their mouth shut.

    Ashland, OR Housing Prices Crater 23% YOY As Mortgage And Appraisal Fraud Hobbles US Housing Market

    https://www.movoto.com/ashland-or/market-trends/

    1. Will Bitcoin be able to hold $20K?

      What’s the difference between $20k and $19k? Its intrinsic value is zero.

  19. The Keynesian fraudsters at the central banks are enablers and accessories to all the FBs signing up for mortgages they clearly can’t afford and insanely overpriced shacks they won’t be able to hang on to.

    Bank of England to Get Rid of Mortgage Affordability Rules

    https://www.bloomberg.com/news/articles/2022-06-20/bank-of-england-to-drop-post-crisis-mortgage-affordability-rules?sref=ibr3A0ff

    The Bank of England plans to scrap rules introduced in the aftermath of the financial crisis designed to test whether borrowers could afford their mortgages in the event of significant interest rate rises.

    The central bank’s Financial Policy Committee said it would withdraw the so-called affordability test from Aug. 1, according to a statement Monday. The rule, introduced in 2014, requires lenders to test prospective borrowers ability to repay their mortgages in the event that rates rise to a specified stress level. The bank’s loan-to-income flow limit that keeps a lid on the number of borrowers with loan-to-income ratios above 4.5 times will stay in place, the BOE said in the statement.

  20. Bakersfield Housing Market Shift Update – Spring 2022

    Jun 20, 2022 Bakersfield Housing Market Shift Update – Spring 2022
    So many people are reporting that the market is going to crash and burn and I just don’t see it happening here in Bakersfield.
    Our number of homes on the market has totally increased, yes, and interest rates have risen as well. But I just don’t see that there’s reason to panic and NOT buy right now.
    It is still a seller’s market through and through.
    But buyers are now able to see more than three houses at their price point and we agents are able to negotiate offers again. No more waiving of inspections and appraisals and throwing thousands of dollars at a home right now.

    https://www.youtube.com/watch?v=jLspckau-QM

    7 minutes.

    1. But I just don’t see that there’s reason to panic and NOT buy right now.

      “Always Be Closing” is the name of the game for UHSs. Anyone stupid enough to take “advice” from this industry of dissemblers deserves to get their head handed to them.

      2. i’ve had my best & easiest success at sales when i just honestly pointed out the best AND worst features of whatever it is . . . no pressure . . . just an easy going nature of ” here it is, here’s how it works, it might or might not be right for you, if not, we part amicably & maybe you consider me again in the future” type of sales approach.

        it’s always so foreign to me how badly people willingly cheat & lie, just for momentary financial gain, no matter how small the reward.
        i could not live with myself and would dread seeing you in the supermarket, school parking lot, etc. to publicly answer for my misconduct.

        even worse is if your family is there to see first-hand how you screw people over. in the internet age there really is nowhere to hide if you mistreat the wrong people. strong odds you WILL be found.

  21. End of Austin Seller’s Market? (Mid-June 2022 | Market Update)

    Jun 19, 2022 The Austin real estate market is quickly shifting day by day. In just two weeks, inventory is up from ~1 month to ~1.5 months of supply. Is this the end of the seller’s market and the beginning of the buyer’s market? Will we see housing prices go down? Whether you are looking to buy or sell, learn how you can find the right window of opportunity to meet your lifestyle and financial needs.

    Timestamps:
    00:00 Intro
    00:22 Number of active listings
    00:53 Housing inventory
    02:45 What the changing market means for buyers
    03:15 What makes the City of Austin special
    07:05 The shifting market
    10:00 The impact on housing prices
    15:15 Note to buyers – Find the right window of opportunity
    17:50 Note to sellers/homeowners – Don’t panic!

    https://www.youtube.com/watch?v=3akjZKGxdgY

    20 minutes. Active listings are over 7,000 not 1,500 guys.

  22. Home Sellers Are Panicking As Interest Rates Rise

    Streamed live 18 hours ago Housing market Interest rates are on the rise again and current home sellers are panicking dropping the sales price faster than you can say “housing Crash”. How low will home prices go? Does this mean we are in a “housing crash”? Is now even a good time to buy a house?

    https://www.youtube.com/watch?v=fZPn47HkGeo

    Over an hour. Baton Rouge LA.

    1. “How low will home prices go? Does this mean we are in a “housing crash”? Is now even a good time to buy a house?”

      – Mortgage rates increased from 6% in <1 yr. That's a double.
      – I did the math, which can be hard, but not with an MS XL spreadsheet. Using these numbers (3%/6%), mortgage payments increased by 42% for all price categories, assuming the standard 30 yr. fixed rate mortgage loan.
      – Using a fixed payment at 3% for a house of price "X", the new price "Y" is -30% less. This calculation is based only on the payment, since 80% of buyers use a mortgage. Not to mention that a good chunk of "investors" also borrow $ for their "all cash" offers. The shelter-buyer buys a payment, and not so much a house. The lower the rate, the more house (price) they can afford. The higher the rate the less house (price) they can afford. Not rocket science.
      – Since house price is inversely proportional to rates, prices must now come down. This is consistent with Housing Bubble 2.0 bursting, which would have happened on its own anyway, since asset bubbles always burst.
      – Stonks are now falling, which is another negative to house prices, since many have been using recent gains for housing. Not any more.
      – IMHO, we're going into a deep recession starting sometime in 2022. Employment will rise. The unemployed don't typically qualify for a mortgage loan.
      – FOMO and other bubble/mania behaviors are giving way to "oh crap!" This has been a major driver of "overpaying" and high house prices.
      – Price is set at the margins: Falling prices lead to falling prices. Comps lead the market.
      – at 6%, house prices will need to fall at least 30-42%, but better metrics are "cap" rates and price to rent ratios. These will mean revert to historical levels, which could be below these numbers.
      – Don't forget the high carrying costs, which are included in the return on investment (ROI) calculation. When the price appreciation goes away, the "investor" is left with the high carrying costs and maybe a rent payment, that won't likely cover these costs if the cap. rate was too low, which it likely was in HBB 2.0.
      – No, "now" is no a good time to buy a house in our maximally financialized housing market and economy. This is the "catch a falling knife" phase. Caveat emptor. Probably over the last two years was a terrible time to buy also, since these buyers will very likely be underwater soon and FBs.
      – These are my opinions, some backed up by "maths," but not financial advice. Do your "home" work. 🙂

      1. I did the math, which can be hard, but not with an MS XL spreadsheet.

        The PMT function! So useful.

      2. excellent summary, red pill eco. very well written.
        and no crazy charts/endless graphs, thank god!

      4. – Sorry for the typos! Need to proof read longer posts!
        – Thank you Ben for providing a forum for sane discussions about the RE market!
        – REIC/UHS is sell-side. Think stock brokerages. Think cheerleaders and you won’t be far wrong.
        – HBB is a venue to have open discussions about this topic. Ben provides great info. as we move along the curve of Housing Bubble 2.0 bursting.

        – Here’s a Twitter tweet saying what I tried to say, but was much more succinct and more better about it. I’m just a hack, really. The bottom line: Speculating in RE no longer “pencils out.” Expect a wave of selling and lower prices. Same true for stonks and bonds; the mother of all bubbles (MOAB) is bursting. Be careful out there!

        https://twitter.com/nickgerli1/status/1538206730043154434?cxt=HHwWhICz9eC359gqAAAA

        Nick Gerli
        @nickgerli1
        Real Estate Investors are SELLING in 2022.

        Why?

        Because: Mtg Rates (Cost of Debt) have surged past Cap Rates (Rental Profit).

        Which means: Not profitable to buy real estate. Prices heading down. Smart investors see it coming.

        #housingcrash #RealEstate
        [great chart here]
        11:07 AM · Jun 18, 2022·Twitter Web App

          1. I’m subscribed to his YT channel (Reventure Consulting). It’s great!
            RPRH: I started watching him after you recommended him and really find him thought provoking. So, Thanks.

          2. That guy was in deep denial for months and struck/deleted or otherwise stomped on any suggestion in the comments section that prices were falling. It wasn’t until comment traffic dropped like a rock on his channel (and other channels soared because of discussion of falling prices) did he stop the soft moderation available to owners of youtube channels. I’d like to know who is writing checks to him.

          3. thought provoking

            Nick combines real estate and economic news in a very useful manner. I can’t recommend his YT channel enough.

          4. struck/deleted or otherwise stomped on any suggestion in the comments section that prices were falling

            Your trademark?! Can’t say as I blame him.

          7. I’ve been waiting for rates to rise and the FED to stop buying MBSs knowing these two things would tank the housing market.

  23. “Buy now, pay later” rackets were only possible in a world awash in Yellen Bux hot money flows. But now the chickens are coming home to roost.

    Commonwealth Bank’s investment in BNPL provider Klarna loses billions as valuation plummets

    https://www.news.com.au/finance/business/other-industries/commonwealth-banks-investment-in-bnpl-provider-klarna-loses-billions-as-valuation-plummets/news-story/8c04f7ed487d7fa0bd946adb4cf092d8

    One of Australia’s major banks put millions into a buy now, pay later operator but it’s since fired 10 per cent of staff and its valuation dropped by $30b.

    1. a buy now, pay later operator

      I have seen these pop up everywhere. My sibs and I are renting a beach house later this summer. We were offered an installment plan though some finance company to pay for it.

    2. I wouldn’t even want it at $90k. Las Vegas is disgusting, IMO. I suppose if somebody gave it to me for free and I could pay a property management company to deal with it and the tenants, and it put a little cash into my pocket, then I may do it. But other than that, hard pass.

      2. The desert sucks. 13% humidity and 100 degree heat makes my nose bleed for weeks on end. A front yard of rocks and a back yard of concrete with no trees and an 8’ stucco wall is awfully ugly. Who wants scorpions in their yard?

  25. Most ‘Muricans complied like docile little lambs when the Brandon regime imposed vaccine mandates that caused airlines to lose thousands of employees who refused to take the jab. Now the traveling public is paying the price for cravenly letting their fellow citizens be marginalized and fired for standing up for their God-given right to say no to an experimental “vaccine.”

    Holiday weekend sees massive amount of flight cancellations

    https://www.cnbc.com/2022/06/19/holiday-weekend-sees-massive-amount-of-flight-cancellations.html

    2. One of my goals in life, going back close to 10 years, is to never, ever fly again. It’s a miserable experience all around.

      1. I try to avoid it, but I’m getting too old for multiday road trips.

        And flying has become quite pricey.

        1. I’ve gone to Amtrak now if I want to do a vacation trip. Problem is that you need a better part of a day to get anywhere and going unlike flying getting me somewhere in a morning.

          Some the trips I have taken going through the CT leg. Dumpy, super fund looking scenery contrasted a few minutes later with green lawn McMansion estate properties. Something about that whole ride is relieving to think I don’t live in that area. I usually end up at union station in DC and then take a MARC train to Harpers Ferry to hike. This fall I may just Amtrak down to Boston and take the Berkshire Transit bus system to Great Barrington MA and hike the AT. So much cheaper and less stress than driving.

          2. Or perhaps leave the tick infested, PFAS-contaminated frozen shithole called Maine behind you entirely.

    3. What I don’t understand is why the airlines are scheduling these flights in the first place, only to cancel them later. It’s not like last January, when whole swaths of the population unexpectedly went on 10-day quarantine. The staff shortages here are known. Surely they know how many flights the existing staff can support and would schedule accordingly? Yes, lots of people would have to forgo flying, but it’s better than stranding them at the airport.

  26. Real Estate Price Reduction Script 2022 | Weekly Seller Report

    Jun 20, 2022 4 steps to use when you want a real estate price reduction script for home sellers in 2022. As the real estate market changes Realtors need a weekly seller report that creates price reductions naturally.

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

    20 minutes. San Diego. I guess this is targeted at other UHS.

  28. San Diego, CA Housing Prices Crater 12% YOY As One Observer Suggests US Housing Market “Reeks Of Fraud”

    https://www.movoto.com/ca/92110/market-trends/

    As one broker conceded, “What you don’t know is this business is riddled with lies, deceit and betrayal. Don’t expect anything else from a gang of ex-cons and malevolents.”

  29. Oh dear….

    Australia confronts fixed rate mortgage tsunami

    https://www.macrobusiness.com.au/2022/06/australia-confronts-fixed-rate-mortgage-tsunami/

    RateCity’s Sally Tindall warns that millions of Aussies that locked in ultra low fixed mortgage rates during the pandemic face a massive rise in mortgage repayments when their loan terms expire:

    “Borrowers’ fixed rate immunity will only last for so long. When the merry-go-round stops, it’s going to be a shock for many because their new rate will be significantly higher,” [Tindall] said…

    The analysis, which covered the big four banks’ half-year results and APRA loan book data, shows about 38 per cent of home loans are currently fixed, in dollar terms, with the peak of people coming off their fixed rates around mid-to-late 2023.

    Westpac has the highest proportion of fixed mortgages as 40 per cent, followed by CBA’s 38 per cent, NAB’ 37.4 per cent and ANZ’s 35 per cent.

    On a 500,000 principle and interest loan fixed in July 2021 for two years at a rate of 1.94 per cent, the current payment is $2105 per month.

    When the fixed rate ends in July 2023, the average revert rate is likely to be about 5.68 per cent, if forecasts for the cash rate are realised, sending monthly repayments to $3042 – an increase of $937 per month.

    1. Not beat a dead horse messenger, but has Australia at all eased off the gas pedal as far as housing costs have gone? All I remember about that continent is that they have had a bull market since Clinton was in office and house prices just keeping going for unrealistic multiples of income.

      I don’t think they will ever have affordability in the old fashioned sense of the word. Something about maybe shortage of property and more than flush buyers consistently willing to park cash?

  30. Meanwhile, Globohomo is upping the ante, and is trying to draw Russia into a direct war with NATO:

    Is Lithuania on the verge of dragging NATO into Ukraine war? Moscow warns it will ‘take actions’ after alliance member blocks trains carrying goods to Russia’s Kaliningrad territory

      1. what an inopportune time to lose all of my precious metals and gun collection in a recent tragic boating accident over the Marianna Trench.

  31. “Transportation Secretary Gives Airlines Ultimatum”

    Buttigieg is advising airlines to meet their flight schedules and hire more customer-service workers. He said that if they do not meet these requirements by the Fourth of July weekend, the department could enforce fines on the airlines.

    These little Dem dictator focks need to go back into the hole they emerged from. This guy got the job because he takes cawks up the asz in his private life – which isn’t any sort of qualification whatsoever.

      1. They are interchangeable, like Legos, once they have been programmed by the World Economic Forum.

        Obama was the “black” one.

        Mayor Pete is the “gay” one.

        Never mind the virtue signal extra credit they get for checking a box, what they all have in common is their unanimous mission to destroy American national sovereignty and turn this country over to unelected globalist bureaucrats.

        The WEF needs to die. No Glowie, but the people involved with this organization need to die. No courts, no legal system, they just need to die.

    2. and hire more customer-service workers

      I wonder if the “great worker shortage” is partly driven by massive jab injuries, where potential hires are now too ill to work.

  32. Fear of real estate markets going down in Arizona

    Streamed live 2 hours ago “Fear of the market going down can become a self-fulfilling prophecy” Michael Orr of the Cromford report.
    We base many of our financial decisions on emotions. Follow the herd.
    Right now we see investors starting to take some profit from their past home purchases and we need to welcome that.
    We need Wall Street to get out of housing.
    But if they start selling in mass with that bleed over into the regular homeowner and give them the fear that they must now sell?

    https://www.youtube.com/watch?v=8PohjkJqJlY

    It’s 24 minutes long. At minute 10 to 10:30, he reads from the latest Cromford report. This is not in the print media.

    1. I’d have to agree. I got some takeout last night – the first time in almost 6 months, and the pizza place was so busy that the line was out the door. There is way too much money sloshing around, and people have grossly underestimated the effects of the trillions of dollars of stimulus.

      I do not believe we will see a recession this year, even with the FED’s so-called “jumbo rate hikes.” They are so far behind the curve that until they catch up to inflation, the money will continue chasing assets and everything else.

      1. the pizza place was so busy that the line was out the door

        Not in my little burg. I can call in on a Friday night, and am told it will be ready in 15 minutes for pickup. Pre-pandemic, calling the same place on a Friday was an exercise in futility. The wait could be as long as two hours.

      1. The people trying to keep it alive are far outnumbered by the people who want it dead. It’ll sputter for a while and possibly plunge again.

        I don’t see poster Robert Paulson (was that his name) here today. The other day he was on a rampage.

        1. He was probably a troll, and once he noticed that no one was replying to his posts, he took his ball and went home.

  36. How to win in the Denver and front range housing markets right now

    Premiered 65 minutes ago The market has shifted dramatically. Here’s how to win as BOTH a buyer and a seller in this market in #Denver #Boulder #Evergreen

    https://www.youtube.com/watch?v=tELusH1x-fU

    5:18. A 45 seconds starts part “Denver metro/ Boulder metro kinda fell off a cliff…around Easter weekend.”

    1. How to win in the Denver

      The new Narrative in Dumver is that A/C is no longer a luxury (30% of Dumver shacks have no A/C) and it’s because of global warming.

      1. https://www.denverpost.com/2022/06/19/air-conditioning-denver/

        Roughly 40% of residences in metro Denver have central air conditioning, according to Chinowsky, who cited assessor data. In lower-income areas, he said that number drops to about 20% of residences.

        I remember visiting some people in Dumver in the late 1980’s (back when I lived in Escondido, CA). They didn’t have A/C and there was a heat wave. We didn’t die.

      2. I just replaced my ac unit. $4300 bucks but hot damn the air coming out of my vents is 37 degrees. My house is actually cool during this heat have, 97 here today. Quite the upgrade just to replace an old ac unit.

          1. New Air Conditioner Condenser Unit, Heil Brand, Performance Series – Chlorine-free R-410A Refrigerant, 3.0 Ton Cooling Capacity. Efficiency 13.00 SEER

    2. “Here’s how to win as BOTH a buyer and a seller in this market in #Denver #Boulder #Evergreen”

      – Just like in Housing Bubble 1.0, there are now way too many Realtors looking to close. Just like last time, there will be a shakeout.

      – Selling/Shilling shacks to one another isn’t a sound basis for an economy. Hey Canada, Australia, all other OECD, are you listening?

      – Global contagion worse than the CCP virus was central banks and fiat money printing. “Inflation is coming” said no one. They all drank the MMT cool-aid. Eurozone and Japan still drinking it. Torches, pitchforks, and guillotines coming though… Reference: John Law and the Mississippi bubble.

      – Here’s “how to win” for soon to be out of work Realtors: #LearnToCode, #DoYouWantFriesWithThat?, etc.

      1. – Here’s “how to win” for soon to be out of work Realtors: #LearnToCode, #DoYouWantFriesWithThat?, etc.

        More likely the latter. I’ve noticed that the volume of headhunters cold calling me has dropped this year.

    3. An interesting game, this Denver Real Estate. The only winning move is not to play. How about a nice game of chess?

      1. ‘An interesting game’

        You watched it til the end and paid attention. I’m learning a lot with these videos right now.

  37. Time to sell in Newport! | Newport Beach Market Monday

    Jun 20, 2022 A lot of home owners in Newport Beach decided to sell in May, which is great for our inventory! The problem is, a lot of buyers have left and are continuing to leave the market due to high interest rates. This leads to the highest inventory level for Newport in a year while prices begin to fall off their peak in March. It’s a good time to sell before demand gets worse and prices drop even further!

    https://www.youtube.com/watch?v=CmgMNsN60xc

    12 minutes. At 9:45, median sales price. Good data overall.

  38. Here in west Orlando things are still going crazy. Example of recently closed. Many more like this.
    Property History
    Price History
    Date Event Price Price/Sq Ft Source
    06/14/2022 Sold $1,000,011 $285 StellarMLS
    04/27/2022 Price Changed $975,000 $278 StellarMLS
    04/21/2022 Listed $950,000 $271 StellarMLS
    02/26/2021 Sold $456,742 $130 StellarMLS

    1. Hmmmm…. appears to be a clear cut case of appraisal fraud.

      Did you report it to the authorities?

      Orlando, FL Housing Prices Crater 17% On Soaring Inventory And Collapsing Demand As Foreclosure Moratoriums End

      https://www.movoto.com/fl/32820/market-trends/

      As one Florida broker disclosed, “The cost to rent a house is half the monthly cost of buying it but that’s something we just don’t discuss openly.”

        1. I do not know about your information source, but that is not happening here in Orlando. I live here and follow closely what I see around me and on Realtor.com.

  39. Another example for West Orlando (Winter Garden address)
    1031 Vignette Aly, Winter Garden, FL 34787
    4bed
    3.5bath
    2,502sqft2,502 square feet
    3,920sqft lot
    Price History
    Date Event Price Price/Sq Ft Source
    06/15/2022 Sold $565,000 $226 StellarMLS
    04/22/2022 Listed $565,000 $226 StellarMLS
    03/12/2021 Sold $355,000 $142 Public Record
    09/07/2018 Sold $299,000 $120 Public Record

    1. We are still in the biggest housing bubble/asset mania in history. So far I hear nothing from people on a day-to-day basis to suggest the gambling mindset has been extinguished. It’s still “real estate always goes up.”

  40. First Orlando example address
    4bed3.5bath3,505sqft0.34acre lot
    12081 Beowulf Way, Winter Garden, FL 34787

    1. 12081 Beowulf Way, Winter Garden, FL 34787

      Other than tourism, what industry is there in Orlando? Who can afford to pay a million bucks for a tract home in freaking Orlando?

      2. That looks like it has nice spacious rooms, not cramped. That swamp out back likely contributes mosquitos; hence the covered swimming pool. But $1M buys more there than in San Jose, CA. Back to the swamp, I wonder if the water table is more than 36″ below the driveway?

  41. another wild Orlando example
    9220 Cromwell Gardens Ct, Orlando, FL 32827Est. $3,494,500
    3bed
    4.5bath
    4,671sqft4,671 square feet
    0.54acre lot0.54 acre lot
    9220 Cromwell Gardens Ct
    Sold on May 17, 2022
    Property History
    Price History
    Date Event Price Price/Sq Ft Source
    05/17/2022 Sold $3,375,000 $723 Public Record
    11/07/2018 Sold $850,000 $182 StellarMLS
    06/26/2018 Listed $1,200,000 $257 StellarMLS
    05/26/2018 Listing Removed $1,300,000 $278 StellarMLS
    09/18/2017 Listed $1,300,000 $278 StellarMLS
    07/27/1999 Sold $625,000 $134 Public Record
    09/24/1993 Sold $650,000 $139 Public Record

  42. Months ago, Sydney, Australia-based Hamish Tipene took out two loans with Celsius Network. Buying a new home above his pre-approval rate, he staunchly supported the crypto lender’s motto “Unbank Yourself” and used his crypto holdings as collateral instead of selling it for cash.

    But when the value of crypto started plummeting a week ago, the collateral Tipene put up for the loan rapidly dwindled and he received a margin call. He needed to add more collateral.

    Before he could, Celsius froze Tipene’s account, making it impossible to meet the margin call in time. The company liquidated 0.59 of one bitcoin, a value of $11,800 by today’s rate. He now faces another margin call that would wipe out another $13,000 in bitcoin, but with his account still frozen he’s up against the same dilemma.

    How many hodlers are being robbed of their bitcoin in this way? The depths of evil these demons will sink to steal bitcoin, making this man homeless, is unforgivable.

    1. Some of the overall loan volume numbers I’ve read about are quite large from some of these ‘unbanks’. Waves of sudden bankruptcies are approaching. Currently they are in the ‘going bankrupt little by little’ stage as they try to secure enough for their getaway. The all at once part will happen soon. We live in interesting times.

  43. Linked from Revolver News.

    The Billionaire Family Pushing Synthetic Sex Identities:

    “The wealthy, powerful, and sometimes very weird Pritzker cousins have set their sights on a new God-like goal: using gender ideology to remake human biology”

    Look at the photo of the un-Godly abomination on the left side of the top photo in the article.

    “One of the most powerful yet unremarked-upon drivers of our current wars over definitions of gender is a concerted push by members of one of the richest families in the United States to transition Americans from a dimorphic definition of sex to the broad acceptance and propagation of synthetic sex identities (SSI). Over the past decade, the Pritzkers of Illinois, who helped put Barack Obama in the White House and include among their number former U.S. Secretary of Commerce Penny Pritzker, current Illinois Gov. J.B. Pritzker, and philanthropist Jennifer Pritzker, appear to have used a family philanthropic apparatus to drive an ideology and practice of disembodiment into our medical, legal, cultural, and educational institutions.”

    Aided and abetted by globalist scum media.

    https://www.tabletmag.com/sections/news/articles/billionaire-family-pushing-synthetic-sex-identities-ssi-pritzkers

    Globalists gonna globe.

    1. ‘Jennifer’ Pritzker born ‘James’ Pritzker.

      These ‘people’ are horrifying.

          1. It’s appearing more and more like billionaires end up severely mentally ill.
            I don’t know about mentally ill, but a friend of mine lived on Park Ave. in Manhattan NY and says repeatedly, the people on Park Avenue are the most unhappy people she has ever known.

          4. I’d argue that you have cause and effect reversed.

            I don’t think so. That amount of money corrupts the mind.

          5. As a kid I worked for a couple who lived on Sutton Place. My job was to gather their expenses, detail who paid for what and reconcile any under/overage. So they paid me to settle pennies between each other. I was happy to do that, but the wife’s strange insistence on feeding me when she ate (not my idea and unnecessary) and serving (!) me in a separate room rather than eat with me just weirded me out. After a few times, I told her I’d rather go out for lunch and deduct that time from my hours. Didn’t last long after that, my decision.

          7. Two of my cousins are not billionaires but wouldn’t doubt that each were maybe halfway there. They are the nicest, kindest, most generous people, just as they were when they were kids. Their kids are lovely, too.

            Who knows why some go crazy?

    2. appear to have used a family philanthropic apparatus to drive an ideology and practice of disembodiment into our medical, legal, cultural, and educational institutions

      501(c)(3)s aren’t supposed to be used for political purposes but the IRS turns a blind eye to what billionaires do with theirs.

  44. ‘Russia Has Won This War’: German Journalist Says West Lying About Ukraine War

    by Jamie White
    June 20th 2022, 2:16 pm

    German TV is admitting what’s become increasingly obvious: the West is in denial that Russia has all but won its military conflict with Ukraine.

    A guest of the German talk show program “

    “I am afraid we are now faced with a situation where we now have to face an uncomfortable truth,” said journalist Wolfram Weimer last week. “And that is that Russia has won this war.”

    vanessa beeley
    @VanessaBeeley

    Truth grenades on German TV!

    https://twitter.com/VanessaBeeley/status/1538140883425583104?s=20&t=XWUj3eqjglssrKtKPtTDJQ

    1. It is unfortunate that we must celebrate juneteenth on the 20th, it is no wonder these oppressed youths can’t do math. When one of the dirt bikers celebrating by riding on the Capitol Mall today was asked about this he said, “realtors are liars.”

  48. 5 signs the housing market is starting to slow down
    By Anna Bahney, CNN Business
    Updated 10:08 AM EDT, Mon June 20, 2022

    There is a shift happening in the housing market.

    After more than a year of soaring demand, exploding home prices and increasing real estate sales, the market finally seems to be cooling off.

    “The housing market isn’t crashing, but it is experiencing a hangover as it comes down from an unsustainable high,” said Taylor Marr, Redfin deputy chief economist.
    …

    1. The Financial Times
      NetEase Inc
      NetEase shares fall after nationalist backlash in China over Winnie the Pooh post
      Cartoon bear is often used to criticise President Xi Jinping and has been blacklisted by censors
      The logo of internet technology group NetEase
      ‘Diablo Immortal’, the blockbuster game developed by NetEase and Activision Blizzard, said its Asian release would be delayed
      Primrose Riordan and Gloria Li in Hong Kong 19 hours ago

      Shares in NetEase dropped on Monday morning after the Chinese gaming company fell foul of China’s censors over a social media post that was suspected of alluding to Winnie the Pooh, a popular way to derisively refer to President Xi Jinping.

      The company said over the weekend that it would delay the Asian release of the blockbuster game Diablo Immortal, sending its Hong Kong-listed shares down 9 per cent in the morning to HK$137 before they slightly pared losses by midday.

      Diablo Immortal, an online multiplayer action game developed by NetEase and Activision Blizzard, had been scheduled to launch in China on June 23. But on Sunday, Diablo Immortal said the release date would be pushed back to “optimise the gaming experience”.

      The delay came as a screenshot circulated online of a post published by the game’s official account on Weibo, the popular Chinese microblogging site, dated May 22 that read: “Why hasn’t the bear stepped down.”

      The remark was interpreted as a reference to Xi, who is often illustrated as Disney’s Winnie the Pooh. The cartoon bear has been blacklisted by censors in China for years.

      Diablo Immortal was banned from publishing new posts on Weibo and discussions related to the bear comment were erased from the platform by the country’s hyper-vigilant censors.
      …

    1. U.S. Markets
      Stock Futures, Bitcoin Jump
      The bullish mood was spread across many sectors and assets, including growth stocks and cryptocurrencies
      By Caitlin McCabe
      Updated June 21, 2022 5:16 am ET

      U.S. stock futures climbed, offering investors a reprieve from a recent stretch of whipsaw trading that had sent stocks and cryptocurrencies falling.

      Futures for the S&P 500 gained 1.8% Tuesday, while those for the Dow Jones Industrial Average added 1.6%. Contracts for the Nasdaq-100 jumped 1.9%. The U.S. stock market was closed Monday for the Juneteenth federal holiday.

      Bitcoin rose alongside other cryptocurrencies, continuing to claw back recent losses after a bruising weekend. Bitcoin recently traded at about $21,070, up 3% from its 5 p.m. ET value Monday, and about 20% higher from a recent low of $17,601.58 reached Saturday, according to CoinDesk data.

      Investors’ appetite for riskier assets on Tuesday follows a tumultuous week in the markets, sparked by the Federal Reserve’s approval of a 0.75-percentage-point interest-rate increase, the largest since 1994. That sent investors scrambling to unload riskier assets amid growing fears that central bankers will plunge the U.S. economy into a recession. The benchmark S&P 500 finished the week 5.8% lower, its largest one-week decline in more than two years.
      …

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