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Low Ball Offers Are Coming In Hundreds Of Thousands Of Dollars Lower Than The Asking Price And As A Seller You Can’t Get Offended

It’s Friday desk clearing time for this blogger. “”I’ve had clients call and say ‘I want to sell at the peak,’ and I say, ‘Great, can we sell two months ago? The reason for that is – the peak is over,’ said Andrew Abrams, Chair of the Market Trends Committee for the Denver Metro Association of Realtors.”

“Melvin A. Viera, president of the Greater Boston Association of Realtors, said the frenzied market of the past few years is over He as a message for sellers and agents who still expect to get 20 offers the first day a home hits the market. ‘Understand, we’re in a market that has shifted,’ he said. ‘The buyer who could have bought your $400,000 home with a three percent mortgage? That buyer is no longer there now that rates are around six percent. You’re going to have to price appropriately and realistically, look at the competition and see what they’re doing, adjust your marketing. And we’re all going to have to be patient.'”

“Western Washington’s brokers reporting more inventory, double-digit drops in pending and closed sales. ‘What the changes mean in general terms are more houses on the market, longer market times, stabilizing home prices, fewer showings and open house visitors, fewer offers at one time, and more price adjustments,’ said Frank Wilson, Kitsap regional manager at John L. Scott Real Estate. ‘While there was a decrease in closed and pending sales in June, there is no reason to panic as we continue to move toward a more balanced market,’ said John Deely, executive vice president of operations at Coldwell Banker Bain.”

“In Bend, the median price of a single-family home leveled off at $722,000 in June, according to the Beacon Report. That’s a slight drop from May’s median single-family home price of $740,000 and below the peak price set in Mach at $773,000. In June, there were 381 homes listed for sale in Bend, compared to 153 in the same period the year before. ‘In this kind of market, buyers have a more favorable position because they have more homes to choose from,’ said Donnie Montagner, owner of Beacon Appraisal Group.”

“San Francisco is starting to see prices fall for the first time since the depths of the pandemic. The median house price in the city dropped 3% from a year earlier to $1.89 million in June, according to a report by Compass Inc., after cresting above a record $2 million in the previous three months. Bay Area homes are taking longer to sell and bidding wars are less intense, leading to a smaller share of sales above listing prices, Patrick Carlisle, San Francisco Bay area market analyst for Compass said in his report. But there’s unlikely to be a housing crash comparable to 2008, he said, because most owners today have affordable mortgages and won’t be forced to sell. ‘A correction is not a crash,’ he wrote.”

“The giant sucking sound in the home loan industry grew louder Wednesday when Sprout Mortgage told employees it’s going out of business. A former employee of the Long Island-based mortgage lender told the publication that Sprout had already slashed its workforce several times. JP Morgan Chase, the biggest bank in the country two weeks ago laid off hundreds of employees from its home-lending division. Wells Fargo, the biggest banking mortgage lender in the country, laid off or reassigned employees around the same time. Mr. Cooper, a Dallas-based lender, in June laid off 5 percent of its staff, or 450 employees, after cutting 250 employees earlier in the year. The company’s direct lending business was down 32 percent year-over-year.”

“As Toronto‘s once-hot real estate market continues to shows signs of cooling, one realtor says sellers are growing increasingly ‘desperate.’ Brett Stein, of Toronto’s Stein Realty Group, said those looking to buy a home now have more negotiating power as lowball offers are becoming more common place. ‘Right now, I mean, the table’s open for negotiation. Low ball offers are coming in on houses hundreds of thousands of dollars lower than the asking price and as a seller you can’t get offended. You have to play ball,’ he told CTV News Channel Thursday. ‘A lot of people are desperate to sell right now because they’ve already purchased their next home and in order to get that financing, they need to sell and they need to sell quick.'”

“What does falling home prices mean for Canadians? Economist Stephen Brown announced on June 7 that any further ‘aggressive approach to policy tightening than is ultimately required’ could ‘sharply lower’ housing prices and risk a ‘major recession.’ For Ron Butler, a mortgage broker at Butler Mortgage, Brown’s report ‘undershoots how bad it’s gonna get.’ ‘They’re talking about a 15 per cent reduction in prices. We’re thinking 25 per cent, up to 30 per cent, across Canada,’ Butler said. ‘Some regions have already gone down 30 per cent,’ Butler said, citing ‘north Brampton is down 30 per cent, parts of Durham and parts of Vaughan are down 30 per cent.'”

“‘It has ground to a stunning halt,’ says Phoebe Blamey, a director of Clover Financial Solutions, about demand in Melbourne’s south-eastern suburbs, which has powered property price growth for the past 18 months. ‘Buyers are angry because the prices being asked are too high, and sellers won’t budge because the offers are too low to sell,’ says Blamey about the growing mismatch in market expectations. Properties that six months ago would have sold in a weekend are lingering for months as attendance at inspections continues to dwindle, she says.”

“‘The boom is over and property prices are falling, with the pace of decline accelerating,’ says Shane Oliver, AMP Capital’s chief economist. In Sydney, buyers’ agent Patrick Bright says there’s increasing ‘argy-bargy’ in the market because the likelihood that prices will tumble in coming months is resulting in buyers not being willing to pay the asking price. ‘That’s the mental gymnastics being caused by increasingly negative sentiment,’ says Bright.”

“Martin North, principal of Digital Finance Analytics, an independent financial services consultancy, who also expects prices to fall by about 20 per cent, warns buyers’ confidence is falling and capacity to pay is rapidly weakening because of rising interest rates. ‘If you really need to sell, then you have to sell,’ says North about rising living costs forcing some sales. ‘Lenders are discreetly encouraging troubled property owners to put their places on the market.'”

“The number of distressed residential listings jumped by more than 10 per cent across NSW in June compared to the previous month, as owners struggled with falling demand and rising costs, according to SQM Research. The Gold Coast has the highest number of distressed listings, with 315 homes, followed by Western Australia’s central coast area with 201, and Queensland’s Sunshine Coast with 185, according to SQM.

“Distressed residential property listings happen when a property has to be sold quickly, often at a reduced price and possible financial loss for the owner. Recent examples of heavily discounted sales include a three-bedroom, freestanding Victorian cottage in Port Pirie, South Australia, which had a price cut of $119,000 to $99,000 after being on the market for more than 420 days.”

“In Seven Hills, about 36 kilometres north-west of Sydney, a six-bedroom, two bathroom weatherboard house has had its price reduced by $20,000 to $930,000 after being on the market for 55 days. A home in Tartura, about 180 kilometres north of Melbourne, has had its price slashed from $870,000 to $660,000 after being on the market for 58 days.”

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This Post Has 163 Comments

  1. The first 16 minute video:
    Panic Home Selling Rampant Across Vaughan, Richmond Hill & Markham Jul 7, 2022

    The second:

    Detached Homes In Big Trouble in Ajax, Oshawa, Whitby and Pickering. Unbiased Market Update for June
    Jul 7, 2022

    Some UHS are liars, but not Vic Singh.

  3. This pathetic babbling creature (salary: $180,000) makes Little Red Lyin’ Hood look almost credible.

    Karine Jean-Pierre blasted for boasting US ‘stronger economically’ than ever ‘in history:’ ‘Pure gaslighting’

    https://www.foxnews.com/media/karine-jean-pierre-blasted-boasting-us-stronger-economically-ever-history-pure-gaslighting

    Social media users were not happy Thursday with White House press secretary Karine Jean-Pierre’s answer on economic woes.

    During the White House press briefing, Fox News’ Peter Doocy questioned Jean-Pierre on why she thinks that 88% of Americans say the country is “on the wrong track.” Jean-Pierre continued to blame rising prices on “Putin’s tax hike” and the war in Ukraine while insisting that Biden “has a plan” to deal with inflation.

    “Do you think it’s possible that your plan just is not popular with the American people right now?” Doocy pressed further.

  4. A reader sent these in:

    ‘Bloomberg — A quarter-trillion dollar pile of distressed debt is threatening to drag the developing world into a historic cascade of defaults. Domino in emerging markets will being soon.. the dollar is becoming too strong and rates keep surging.

    https://twitter.com/AlessioUrban/status/1545190585065095168

    A 900k slashin’ in Phoenix:

    https://twitter.com/DonMiami3/status/1545073406973992961

    1.13M in Austin:

    https://twitter.com/DonMiami3/status/1545163914459156486

    +700 homes added in 10 days in Vegas

    https://twitter.com/DonMiami3/status/1545225890426241025

    Las Vegas, NV surpassed our target and now has 7,030 homes for sale.

    https://twitter.com/ParResGroup/status/1545225401903054849

    Phoenix and surrounding suburbs notched their first price declines in June

    Phoenix -2.06% m/m
    Scottsdale -4.55% m/m

    Phoenix inventory increased 24.87% m/m to 5,488 (city of Phoenix, not metro)
    Scottsdale inventory increased 10.29% to 3,828

    https://twitter.com/ParResGroup/status/1545178274195808257

    Las Vegas, NV records first average price decline for the month of the June – home prices fell 2.92%. Listings up 24.04%, 5,746 homes are without offers – 60.95% increase month over month.

    https://twitter.com/ParResGroup/status/1545174885877571584

    ‘What is insane is buying $1.4 trillion in mortgage backed securities into a supply constrained housing market and then complain that the climb in house prices is insane.’

    https://twitter.com/NorthmanTrader/status/1545110406431219713

    Danielle DiMartino Booth

    If it was CCP’s goal to cool housing, it certainly looks as if they’ve succeeded.

    https://twitter.com/DiMartinoBooth/status/1545027712418455552

    1. Greenspan, Bernanke, Yellen and Powell should be facing execution for what they did to the United States. Abe just met his maker. They should, too.

        1. Not sure, but I note that the assassin is 41 years old. His entire life has been one of excessive money-printing, which essentially means near poverty for everyone but the wealthy.

    1. From the comments: “The D.A. would rather make an example of a hard working person trying to help than go after career criminals.”

        2. Oh, you’ve seen Colorado lately? (now known as Eastern California). Lost cause at this point.

    1. Why purchase a second home when prices are falling?

      On the other hand, if you own one or forty, enjoy your reverse wealth effects. So far the mantra is that appreciation may slow, but prices won’t fall. So the big freak out moment lies out in the future.

  8. Pay no heed to what the counterfeiters and racketeers at the Fed say – only to what they do, or don’t do.

    ‘Big Short’ investor Michael Burry called out the Fed for not shrinking its balance sheet enough in June — and compared its love of stimulus to a drug addiction

    https://markets.businessinsider.com/news/stocks/big-short-michael-burry-federal-reserve-stimulus-balance-sheet-drugs-2022-7

    Michael Burry called out the Federal Reserve for not shrinking its balance sheet as much as planned in June, comparing its failure to resist stimulating the economy to a drug addiction.

    “Drugs are hard to kick,” Burry said in a now-deleted tweet. “Fed was supposed to sell $30B Treasuries and $17.5B Mortgage-Backed Securities per month starting June 1. QT.”

    “During June, MBS holdings rose almost $3B. Treasury holdings fell less than $10B,” the investor of “The Big Short” fame added.

        2. Japan has been characterized for years by the investment community as, “a bug waiting for a windshield to happen.”

    3. “Michael Burry called out the Federal Reserve for not shrinking its balance sheet as much as planned in June, comparing its failure to resist stimulating the economy to a drug addiction.”

      Gregory Mannarino said the same thing in that video posted a couple of days ago. I guess the fed has to foam the proverbial runway for some of these debt-laden high-fliers that are packed-full with public employee retirement fund investors.

  9. ‘While there was a decrease in closed and pending sales in June, there is no reason to panic as we continue to move toward a more balanced market,’ said John Deely, executive vice president of operations at Coldwell Banker Bain.”

    Remember, FBs: he who panics first, panics best. And if you want to see what a “more balanced market” looks like, watch “The Big Short.”

  10. What is the median household income in Bend, OR?

    That doesn’t sound sustainable.

    1. The cost of living in Bend, OR has been inflated by the invasion of California equity locusts. A number of boutique consulting and tech start-ups have tilted the income table such that the local yokels can no longer make it independently, now forced into RVs parked at mom-n-dads place, etc., much like the larger metro areas.

      Bend is still a nice place to live compared to Portland if you’re educated with a functional skill set.

  11. So I don’t have an economics degree like AOC, but if Aussie FBs are spending so much more on petrol or diesel, won’t that cut into their ability to pay the mortgages on their insanely overpriced shacks?

    Australians spending nearly 75 per cent more on fuel each month

    https://www.news.com.au/technology/motoring/on-the-road/australians-spending-nearly-75-per-cent-more-on-fuel-each-month/news-story/a58b872ada01303ba13a4c64ac12e3aa

    New data has revealed the shocking amount Aussies are now spending on petrol each month as the fuel crunch continues.

    1. all of the movies etc shown regarding Australia have plenty of wide open spaces for chicks roam around but require the precious Guzzolene.

    1. “The San Antonio Department described it as a “mortar-type” firework…”

      And his head was the base-plate.

  13. ‘Understand, we’re in a market that has shifted,’

    Just wait until the housing shift hits the fan on Wall Street.

    We’re not there yet…

  16. Sometimes the globalists are tone-deaf when it comes to their agenda-pushing.

    UN Deletes Weird ‘Satirical’ Article Celebrating Benefits of World Hunger After Backlash

    https://summit.news/2022/07/08/un-deletes-weird-satirical-article-celebrating-benefits-of-world-hunger-after-backlash/

    Piece by professor said hunger was “fundamental to the working of the world’s economy.”

    The United Nations was forced to delete a weird ‘satirical’ article which celebrated the ‘benefits’ of world hunger after an online backlash.

    Originally published in 2008, the article, titled ‘The Benefits of World Hunger’, was recently reposted to the UN’s Chronicle magazine.

    “We sometimes talk about hunger in the world as if it were a scourge that all of us want to see abolished,” wrote the author, Professor George Kent from the University of Hawaii.

    Kent added that hunger was actually, “A great positive value to many people. Indeed, it is fundamental to the working of the world’s economy. Hungry people are the most productive people, especially where there is a need for manual labour.”

    1. Do you remember what happened to King Louis XVI and Marie Antoinette?

      They had their heads chopped off.

      Globalists gonna globe.

    2. “Hungry people are the most productive people,”

      Doesn’t that sound like something Cooperate Governance would say.
      Gods of the One World Order creating emergencies of every kind to take over and bring global populations to their knees.

      1. I saw an article claiming that the “new variant” could be the “worst one of all”. They won’t stop beating that drum. Fear the Covid bogeyman and obey us, or you will die!

        1. So many people in Denver wearing masks while driving alone, wearing masks while walking on the sidewalk alone.

          Mass Formation Psychosis is one hell of a drug.

        2. And since they have record unexplained death and injury with the vaccinated globally, what’s to stop them from claiming a new deadly Covid mutation
          . . Than any rollout vaccine they don’t even have to do clinical trials on now, according to a recent ruling by the FDA.
          Dr McCullough recently said in essence that he’s never going to take a vaccine.
          This is a total capture of a Government Agency by Big Pharmacy and guys like Bill Gates. , who has no liability for death and injury from vaccines.
          How do you stop a Government Agency , that’s committing crimes against humanity, and covering up the crimes . It is by far the most outrageous assault on humanity that I have ever witnessed.

    3. The intermittent fasting community likes to emphasize anecdotal evidence of people becoming productive and clear-headed while in a state of starvation, such as prisoners of war. But IFers use those studies mostly to convince people — people who are overweight/obese but generally healthy — that a 3-day fast won’t kill them. The IFers don’t recommend actual starvation!

      And of course it’s not Western overweight healthy people who experience “global hunger.” Famine targets people who are already poor, thin, unhealthy, malnourished, and stressed. Not to mention their kids. The UN should have known better. 😕

  17. It should be an interesting day on Wall Street, with the jobs report confirming the Fed’s fears that inflationary pressures are not letting up.

    1. The Financial Times
      US employment
      US economy added 372,000 jobs in June amid red-hot labour demand
      Non-farm payrolls defied expectations for sharper slowdown while the jobless rate held steady at 3.6%
      Tourists dine out in the North Beach district of San Francisco, California
      The US labour market has remained a bright spot in the country’s economy despite growing recession fears
      Colby Smith in Washington and Kate Duguid in New York
      19 minutes ago

      Red-hot labour demand stoked another strong month of US jobs gains, defying expectations for a sharper slowdown and giving the Federal Reserve greater leeway to continue raising interest rates to stamp out soaring inflation.

      Non-farm payrolls grew by 372,000 in June, the Bureau of Labor Statistics reported on Friday, far above the 265,000 that economists had expected and just shy of the downwardly revised 384,000 positions created in May.

      With these gains, the unemployment rate stabilised at its historically low level of 3.6 per cent, just above its pre-pandemic threshold.
      …

      1. Buried in that report is also the notice that the labor force participation rate declined, again. Is it because there are no jobs worth doing for the wages offered? Because there are lots of sudden and unexpected deaths in the working age population or because there’s no point because you can never get ahead?

        Such mysteries, too bad nobody ever wants to look at these types of things.

      2. yet every supermarket i go to has a help wanted sign and handicapped/ disabled baggers…..

        1. handicapped/ disabled baggers

          FWIW, those are probably state-funded workability programs.

        2. but never raised wages. I mean that’s crazy talk. Supply and demand only works on the peon’s, never for the corporations.
          There’s not a shortage of workers, there’s a shortage of workers at that wage point.

    2. Treasury yields lurched up, AND retained their inversion.

      Good luck today, risk asset HODLers!

      1. The Financial Times
        Markets Briefing Equities
        US stock futures drop and dollar strengthens after strong employment data
        Euro comes to within a cent of hitting parity with US currency for the first time in two decades
        Dollar banknotes are counted against a backdrop of euro notes
        The euro slipped against the dollar as analysts warned that the eurozone was ‘on the edge of recession’
        Naomi Rovnick in London
        18 minutes ago

        Wall Street stock futures fell and the euro edged closer to parity with the dollar after a stronger than expected jobs report stoked expectations of the US central bank aggressively raising interest rates.

        Contracts tracking the S&P 500 share index lost 0.8 per cent, while those on the technology-focused Nasdaq 100 fell 1.3 per cent.

        The yield on the benchmark 10-year Treasury note, which moves inversely to the price of the debt security and sets the tone for borrowing costs worldwide, rose 0.08 percentage points to 3.08 per cent, around its highest so far this month. The two-year yield, which closely tracks interest rate expectations, added 0.08 percentage points to 3.13 per cent.
        …

    3. It’s a good day to own dollars and be free of dollar debt. Most other portfolio HODLings are about as useful as a lead anchor in a sinking ship. ⚓

    1. What kind of idiot realtor writes the first offer without a time frame on it? The time frame is a really important part of the process and has immense value. Also the whole “heard from” BS. It’s real estate. If it’s not in writing it means precisely nothing. Did they counter? Did they reject? no, they did none of those things.

      And then ups the offer BEFORE RECEIVING A RESPONSE? Talk about bidding against yourself. Also who ups their offer in this environment?

      It’s just wood and bricks, there are many more. Establish your max price and walk away if that gets exceeded. This is like negotiating 101. The realtor is NOT your friend. The realtor is NOT working for you. The realtor is working for the deal.

    2. The video UHS makes a typical mistake that all realtors do. A counter offer is NOT a change of your offer. It is a rejection of your offer and an entirely new offer. UHS’s always gloss over this by marking up changes on the original contract instead of writing a new one. (also most are lazy). But that is not what is happening. It is an entirely new offer. You have been released from your offer, that offer is now dead and all new terms are on the table. Hell you can counter the counter with an even lower offer. But it’s a pretty important point that almost all UHS just gloss over.

      1. About 6 years ago, Lan’s car was due for replacement. It was almost 20 years old and parts were starting to become hard to find. One afternoon when we were coming back from the market in Sunnyvale, we decided to stop at the Ford dealer.

        They were having a sale on the Ford Focus, Lan likes small cars, so we thought we’d check one out. We talked with a salesman who took us for a test drive. We didn’t like the Focus at all, but decided to have some fun.

        We went into the salesman’s cubicle where he started the car salesman’s pitch. He told us we could buy the car for only $19,800. We countered with an offer of $18,900. He went back to the salesman’s secret room to, “Check with his manager.”

        When he came back, he said we could have the car for only $19,500. We countered with an offer of $18,200. Every time he came back with a new offer, our offer went down another $500 or $600. After a few iterations of this, he said in frustration, “You can’t bargain that way!”

        We said, “You bargain your way and we’ll bargain our way.”

        When we got back to our car, we both burst out laughing. We didn’t buy a car, but we had a lot of fun bargaining.

        2. That’s awesome.

          Hey, they rejected your offer and presented a new offer, you are perfectly within your rights to reject that offer and do yet a new offer.

  20. Jul 7, 2022 The Denver Metro Association of Realtors just released their Market Trends Report for July 2022 and the stats show a major shift in the housing market! As of June 30th, there were 6,057 active listings in the Denver Metro Area. This shows an increase of 66% homes on the market since the same time in May 2022. It is a 94% increase year over year!

    https://www.youtube.com/watch?v=smpbDNmFMa4

    3:14.

    2. I seem to remember last year that Denver realtors were talking about 4000 to 5000 homes on market being “normal”. So now we’re above that? already? In the span of a few months? Funny how they seem to gloss over that part.

  22. MASSIVE Wave of Listings Just HIT The Bellingham Market
    Jul 7, 2022 Bellingham WA is being FLOODED with new homes for sale as record home prices DROP and interest rates skyrocket. But does that mean the Bellingham housing market is going to crash? Should you buy a house now or wait? And did you miss out on selling your Bellingham home?

    https://www.youtube.com/watch?v=qdlUWoxu8eI

    9 minutes.

  24. Portland neighbors on edge after homeless people occupy vacant homes
    Jul 7, 2022 A line of RVs sat parked along Southeast 67th Avenue outside of two vacant homes late Thursday morning. Neighbors say the area has become a magnet for members of Portland’s houseless community taking advantage of the unoccupied properties.

    https://www.youtube.com/watch?v=xsgknxh6sLc

    3:15. “Dumpster fire.”

      1. “Portland is getting exactly what it voted for.”

        I fully agree and hope they do even more.

    2. 2:02

      What’s the world coming to when a couple squatting in an RV in front of a vacant home is forced to unplug their AC from the vacant home after they had been given permission to do so by the squatters who had broken into the vacant home?

      PS

      Could somebody tell me what RV girl is holding at 3:06?

      1. Never mind I think I know.

        Word of advice to the property maintenance man…

        Don’t go a knockin’ if the RV is a rockin’ 🙂

    3. In a battle between homeless squatters and speculators/iBuyers/foreign oligarchs parking their blood money/everyone who turned housing from a place to live into a casino, I’d have to go with the homeless squatters.

    4. “houseless community”

      Are these people who own RVs (i.e. mobile “homes”) but not houses?

        1. That movie was depressing as hell. Now that Bidenflation has made fueling up the RVs prohibitively expensive, I’m wondering what’s become of a lot of those “unhoused” nomads.

  25. Inventory is STILL climbing… Now what? | Arizona Real Estate
    Jul 7, 2022 Arizona real estate inventory continues to climb but it varies by price point with the $500k-$600k showing the largest jump. We also now have 1,300 homes listed that are new construction.

    https://www.youtube.com/watch?v=AK_QXym3Kfs

    30 minutes. This is a round table of UHS. Lot’s of insider stuff. If yer interested in the Phoenix market this is worth watching.

  26. Scottsdale Arizona Real Estate Market Update for June 2022
    Jul 7, 2022 Let’s take a look at residential real estate activity in Scottsdale, Arizona during the month of June 2022. The number of active listings was up 55% from one year earlier and up 19% from the previous month.

    As you can see, the median listing price for the month was $1.3 million. The median sale price was $1,100,000. The number of units sold decreased by 30% year-over-year and was down 14% compared the the previous month.

    https://www.youtube.com/watch?v=R8uYD8ER22c

    1:19.

  29. London Ontario Real Estate Market Update June 2022 – PRICES Down 100k+ Since Peak
    Jul 6, 2022

    London Ontario’s Real Estate Market fell for fourth month in a row in June, with prices down more than $100,000 since its peak in February. With the Benchmark, Average and Median prices all down, the Sales-to-List-Price ratio nearly 100% and London have 5x more months of inventory than it did in February, the market does appear to have shifted to a buyer’s market.

    With the real estate market shifting fast it is extremely important for home buyers to consider including a finance and/or appraisal condition on their offers to purchase, as multiple buyers are reporting buyer’s remorse with the reversing home prices.

    Average Price of a Home in London

    London February 2022 Average Price – $823,842
    London March 2022 Average Price – $807,540
    London April 2022 Average Price – $ $747,433
    London May 2022 Average Price – $ 746,365
    London June 2022 Average Price – $ 688,644

    Median Price of a Home in London

    London February 2022 Median Price – $777,000
    London March 2022 Median Price – $775,000
    London April 2022 Average Price – $703,000
    London May 2022 Average Price – $687,000
    London June 2022 Average Price – $650,000

    Sales to List Price Ratio – Over Asking Pricing

    London February 2022 Sales to List Price– $125.6
    London March 2022 Sales to List Price– 121.6
    London April 2022 Sales to List Price– 115.5
    London May 2022 Sales to List Price– 108.1
    London June 2022 Sales to List Price– 102.0

    https://www.youtube.com/watch?v=9dGc4ESXY54

    7:23.

    1. “…the market does appear to have shifted to a buyer’s market.”

      It certainly looks like the market took a shift.

  30. Real estate agent: Many people ‘desperate to sell right now’
    Jul 7, 2022 As concerns grow that Canada’s red-hot real estate market may be starting to cool, one real estate agent in Toronto says that some homeowners in the city are becoming increasingly “desperate to sell right now.”

    https://www.youtube.com/watch?v=Gs6UeVAAQM0

    5:17.

    1. I love the smell of FB desperation in the morning. It smells like…sanity returning. Die, speculator scum.

  31. June 2022 – Market Stats
    Jul 8, 2022 June 2022 MARKET STATS are out! 🏠🏢🏗🔥

    I hope you are all enjoying the start of summer! Real estate may be far from your mind, as this summer sun shines upon us, and you wouldn’t be the only one. The sales of all home types across the GTA is now down 42%, compared to last year, thanks mostly to interest rates. However, the appreciation of pricing has begun to normalize to more historical averages as prices were up 5% compared to June of last year. This market is continuing to adjust and many are wondering for how much longer. If we look back at the 2017 spike and then dip, July 2017 is when prices bottomed out…

    🏠 With fewer homes being traded, the number of active listings has increased, which has put some downward pressure on prices. Real estate isn’t about ‘timing’ the market, it’s about time IN the market. Now is a great time for buyers to get into the Toronto real estate market with a bit of choice and selection, and sellers can feel confident in still having great appreciation on a home they have owned for some time.

    🏢 The condominium market continues to see price increases even as sales volume has slowed. Prices for condos are up just over 9% year over year, as they show a more affordable asset class compared to detached, semis and townhomes. Condo living continues to be the future of real estate in Toronto for all ages. With our city coming back to life, being close to transit, the lake & entertainment has never been more enjoyed.

    🏗 The new construction market has changed as demand has softened. With labour and material costs on the rise some developers have begun to delay the launch of their projects and are focusing on the sale of standing inventory in existing developments, offering better terms and incentives that are attractive to buyers. There are some great opportunities to purchase new construction with builder incentives.

    https://www.youtube.com/watch?v=X47M1dnyrHw

    1:41.

  33. Local market only down -2% to -4%? Tell that to the person who bought a few months ago at +10% – +20% over asking. Down payment just went poof like Enron stock, when you consider selling with 6% realtor fees and unheard of buyer incentives. Oh as for that waving contingencies, just wait for those inspections to come back requiring thousands in deferred maintenance repairs. But hey, you got to boast to friends you were a winner!

    1. Please waive those inspections, especially for electrical.

      What could possibly go wrong?

    2. Small percentage declines in housing prices are greatly amplified when bubble valuations and leverage are at play.

    2. The Financial Times
      Cryptocurrencies
      Top Fed official warns of ‘serious vulnerabilities’ in crypto industry
      Sector needs tighter regulation as it is susceptible to same risks as traditional finance, Lael Brainard says
      Federal Reserve vice-chair Lael Brainard
      Federal Reserve vice-chair Lael Brainard says crypto assets have ‘proven to be highly correlated with riskier equities and with risk appetite more generally’
      Scott Chipolina in London and Gary Silverman in New York
      9 hours ago

      Federal Reserve vice-chair Lael Brainard has said recent crypto volatility has exposed “serious vulnerabilities” in an industry in need of tighter regulation.

      Brainard told a Bank of England conference in London on Friday that crypto is not yet “so large or so interconnected” with traditional finance to pose systemic risk but raises familiar regulatory concerns.

      “While touted as a fundamental break from traditional finance, the crypto financial system turns out to be susceptible to the same risks that are all too familiar from traditional finance, such as leverage, settlement, opacity, and maturity and liquidity transformation,” Brainard said.

      “As we work to future-proof our financial stability agenda, it is important to ensure the regulatory perimeter encompasses crypto finance.”

      The crypto markets have come under relentless pressure in recent weeks, with several key players including crypto hedge fund Three Arrows unravelling as a result of plunging markets. Since November’s all-time high, popular tokens such as bitcoin and ether have lost roughly 70 per cent of their value.

      In the wake of this market crash, Brainard questioned the often-made case for cryptocurrencies such as bitcoin acting as a hedge against inflation.

      “Contrary to claims that crypto assets are a hedge to inflation or an uncorrelated asset class, crypto assets have plummeted in value and have proven to be highly correlated with riskier equities and with risk appetite more generally,” she said.
      …

      1. “As we work to future-proof our financial stability agenda, it is important to ensure the regulatory perimeter encompasses crypto finance.”

        I don’t get this argument at all. I thought the crypto bros’ goal was to steer clear of regulations that apply to fiat money?

        1. Why is it the Fed’s concern if people who choose to trade their Powell bux for cryptocurrencies lose money as a consequence of their own decisions?

        2. It seems as if crypto currencies should be priced like options/derivatives without expiration dates. As figments of financial value. Gonna need a new age Black and Scholes model.

          Maybe Junk CRYPTOS are gonna be the new Junk BONDS.

          As long as the NEXT blow-out takes down the BIG BOYS too!

          “Doc, we’re going BACK to ’29!!!”

  35. Germany’s biggest landlord will turn down the heat for hundreds of thousands of residents in the coming months as Russia throttles supplies of natural gas.

    Vonovia, which bills itself as the biggest provider of housing in Germany with 1 million tenants, said Thursday it was trying “to save as much gas as possible” to prepare for a deepening energy crisis. The restrictions would apply to 55% of its apartments and continue until further notice, a spokesperson said.

    The move illustrates how people in Europe’s largest economy are starting to feel the effects of what the German government has already officially described as a “gas crisis.”

    They have “gas crisis”? Say it ain’t so, Joe!

    I still remember how the German leaders laughed when Trump warned them this would happen. They really are going to be shivering in the dark this winter.

    1. F* these globalists.

      Angela Merkel caught on hot mic griping to Facebook CEO over anti-immigrant posts (9/27/2015):

      “German Chancellor Angela Merkel was overheard confronting Facebook CEO Mark Zuckerberg over incendiary posts on the social network, Bloomberg reported on Sunday, amid complaints from her government about anti-immigrant posts in the midst of Europe’s refugee crisis.

      On the sidelines of a United Nations luncheon on Saturday, Merkel was caught on a hot mic pressing Zuckerberg about social media posts about the wave of Syrian refugees entering Germany, the publication reported.”

      https://www.cnbc.com/2015/09/27/angela-merkel-caught-on-hot-mic-pressing-facebook-ceo-over-anti-immigrant-posts.html

      You sold your soul to Klaus Schwab and the World Economic Forum, you have a refugee rape crisis, and now you’re gonna freeze to death in the dark.

      Bed. Made. Lie.

  36. This, friends and neighbors, is why you ALWAYS need to keep cash on hand.

    Rogers network outage across Canada hits banks, businesses and consumers

    https://www.reuters.com/business/media-telecom/rogers-communications-services-down-thousands-users-downdetector-2022-07-08/

    TORONTO, July 8 (Reuters) – A major outage of Rogers Communications Inc’s (RCIb.TO) mobile and internet networks caused widespread disruptions across Canada on Friday, affecting banks, police emergency lines and customers in the second outage to hit one of the country’s biggest telecom providers in 15 months.

  37. Looks like the greedheads of Colorado Springs are belatedly figuring out they missed the top of the market, and are now rushing for the exits before the bottom drops out. Inventory jumped by more than 100 since yesterday, to 2,537, with 964 price reductions. Be afraid, shack speculators. Be very afraid.

    1. We should be able to compute a certain percentage of houses that will go vacant just on vax deaths. There will be lots of unclaimed property as so many people are staying single and are estranged from family etc. Even those with family may not be savvy enough to make it through probate. When the market is hot these things tend to be worked out but when there is no meat left on the bone they become zombies. Suddenly all of those cute doll houses, cozy cottages, and lovely starter homes wind up on lists of liabilities that need to be disposed of to whoever will put some cash on the table.

      1. “…go vacant just on vax deaths.”

        Don’t forget to include 1+ million Covid deaths!

          1. Not to mention all those who died within 2 weeks of being jabbed. IIRC, they were all officially classified as Covid deaths.

          2. all officially classified as Covid deaths

            I’ve lost track of all the lies and machinations but those deaths certainly were not attributed to the jabs.

          3. but those deaths certainly were not attributed to the jabs

            It must have been hundreds of thousands, as the spike protein initially reaped the most vulnerable.

        2. Three million Americans have self-identified as disabled since the jab rollouts. Governments around the world are beginning to recognize large numbers of non-COVID excess deaths. Your comment is ridiculous when put in context and perspective.

  40. JUNE & Q2 2022 | Real Estate Market Update | Santa Clara County
    Jul 8, 2022

    As we’ve been experiencing a SHIFT in the Bay Area housing market these past couple of months, it’s important to have perspective on what is happening. As we discuss these stats, keep in mind that experts are viewing this shift more from the perspective of a turning point toward getting back to a more typical, pre-pandemic market rather than the view that we are experiencing a bubble, crash or a correction here in the Bay Area. The rise of interest rates, as a response to the FED’s rate hikes are doing their job to cool the housing market, and this was expected.
    Let’s first take a look at June as compared to May, and then we’ll compare Q2 2022 to Q2 2021.

    The number of active homes continued to rise by 24% from this time in May, breaking the threshold of 1,400 SFHs coming to market in June. Pending and Sold Listings both went down by 20% and 9% respectively.
    June is typically a month full of start and stops for buyers due to school graduations and start to summer vacations; often causing lulls in activity during the month. We see this evidenced in the Average Days on Market which went up by 27%, translating into 3 days more than May, with homes taking an average of 14 days to get into contract.

    Further evidence of the shifting market is in the Average Sales price for SFH, down by 2% from May, now sitting just closer to $2.2ML, with the List to Sale Price ratio down by 5% from May, reflecting winning bids on homes averaging closer to 7% over the ask price rather than last month’s average of 12% over ask price. This is the welcomed reprieve in competition that buyers have been hoping and waiting for. The Average Price per SF also went down by 5% from May, now resting at $1,144/SF.

    Months’ worth of inventory went up 42% from May, now edging closer toward 2 month’s worth of inventory – another welcomed reprieve for buyers, allowing for more buyer choice and less competition – all leaning toward the more typical summer we experienced in pre-pandemic 2019.

    https://www.youtube.com/watch?v=PoXkSWs5Gv4

    9 minutes.

  41. For sales signs are flourishing here in the Boston suburbs in the last two weeks. Guy down the street put his house up so I got nosey. He paid $350k back in 2017…… New sticker price? 270k……. and he dumped a bucket of money in it right after he bought it.

    So it goes with rapidly depreciating assets like houses.

    Santa Clara, CA Housing Prices Crater 22% YOY As Bay Area Sellers Get The Thrashing Of Their Lives

    https://www.movoto.com/ca/95054/market-trends/

  42. “Consumer Credit Hits A Brick Wall With Credit Cards Maxed Out”

    https://www.zerohedge.com/markets/consumer-credit-hits-brick-wall-credit-cards-maxed-out

    (snip)

    “Bottom line: the sharp drop in credit card growth (if not yet decline) is precisely why Q2 GDP is on pace for a big slowdown. But what’s worse is that once the mass layoffs kick in in addition to the soaring inflation, at a time when most marginal credit cards are maxed out, the pain across US consumers will be unbearable, as it will come just as most households are tapped out and no longer have dry powder on their credit card for discretionary purchases.

    “In short, the recession which unofficially started in Q1 and worsened in Q2, is about to get much worse in Q3 when the key support pillar of the US economy, consumer spending which accounts for 70% of GDP, goes into reverse now that maxed out credit cards have to finally be repaid.”

      2. A credit line is not “dry powder”.
        Mr. Banker can easily pull that credit line and …… All of a sudden, No “dry powder.”

  44. Turning down an employment offer at my old company in Greenville, TX. I love Texas but the prices and taxes there have gotten completely out of hand. This an area in east Texas that loves to paint itself as the greater DFW metro but you wouldn’t walk to Dallas from Greenville. $200+ per sq. ft. for box houses and if you try to go towards Rockwall you’re looking at $225 sq. ft. and up for new builds. The bubble has ruined our country and it isn’t just the financial harm. Everywhere thinks it’s the next Silicon Valley. It can’t crash fast enough for me.

    1. “$200+ per sq. ft. for box houses and if you try to go towards Rockwall you’re looking at $225 sq. ft. and up for new builds.”

      That’s a slick way of saying contractors have a whole lot of room to drop prices. $50 a square foot is a long way down for yall.

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

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

    2. Texas will have so many vacant rotting homes in a few years that people will be wondering if the good times will ever return. It is a dynamic process that plays out in a roughly 14 year cycle. Carefully consider your parameters and decide on your target market(s). Spend the next few years putting a stash together and get ready to play the game out of spite. You will be surprised at the amazing deals to be had. When you see a 50% off offer, low ball them another 50%. Don’t worry it was all insured. 🙂

      1. There’s no legal limit on the number of low-ball offers you can make. Be patient, be persistent, and soon that house at half off asking will be yours.

    3. I doubt there are many people who realize what a disaster is setting up north of Big D.

    4. I’m sure you know this but Greenville is about 50 miles from Dallas. Maybe that counts as “the metro area” in New York, but I’ve never heard anyone say that about Greenville.

      1. RPRH:
        Have you Joined and become a channel member? If so do you get access to valuable info?
        Thanks

        1. I have not but I believe so. I’ve just subscribed to the channel. My real estate interest is hyper-localized.

  45. It’s been a month since a friend’s neighbor listed their grotesquely overpriced shanty. They paid $515k. They wanted $850k. 3 price cuts later it sits at $799k, rotting away on the mls.

    On another note, I found out a client of mine had purchased a speculative condo in Hawaii, planning on Airbnb income for her retirement. Desperation is now setting in because apparently they are in the process of banning those in her building, so buh-bye passive income.

    Throw another FB on the fire. She is of an age and income situation where I can easily see a future of poverty in a low-income retirement home funded by Medicare. Her boxed wine and kitty litter bill has got to be increasing with her stress.

    1. “…a future of poverty in a low-income retirement home funded by Medicare.”

      A typical outcome when the glass slipper doesn’t fit.

  49. Perhaps it’s just in my neck of the woods but my local Realtor.com is suddenly filled with builders home where they were never listed before.

    I guess the “waiting lists” have shrunk. 🤣🤣🤣

  50. Even Brandon’s fellow Democrat-Bolshevik apparatchiks are getting fed up with his ineptitude and dementia-addled befuddlement.

    ‘Be the effing President’: Democrat anger at Biden reaches boiling point as strategists say the White House is ‘one step behind’, being hurt by ‘fiery’ speeches from MAGA Republicans and the President needs to step up

    https://www.dailymail.co.uk/news/article-10992193/Be-effing-President-Democrat-anger-Biden-reaches-boiling-point.html

    1. How can he “be the effing president” when he needs a cheat sheet that tells him when to sit down and can’t even read from his teleprompter without messing up?

  51. “In Bend, the median price of a single-family home leveled off at $722,000 in June, according to the Beacon Report. That’s a slight drop from May’s median single-family home price of $740,000 and below the peak price set in March at $773,000.”

    So already down $51,000 between March and June. Annualized rate of decline is 1-(722/773)^4 = 24%.

    1. Per the Census:

      Bend median household income: $67,973
      Per capita income: $39,932

      “This svcker could go down.”

  53. Boise was so under priced for a long time. That said, l bought my place in 2021 as a form of rent control. I got to build a brand new home with a 3% mortgage, less than I was paying for rent on a 70’s condo. I’m not going anywhere. I’m totally ok with my assessed value going down so my property taxes will not go up

  54. Idaho people kill haters with kindness and they don’t know how to handle that, I’m always willing to let someone cut in front of me. Kill them with kindness, but make sure you’re locked and loaded

  55. The Financial Times
    Opinion On Wall Street
    Markets are losing faith in central banks
    A Tinkerbell moment may have arrived as investors are unconvinced that monetary policy can tame inflation
    Philip Coggan
    Drawings of the children’s book characters Peter Pan and Tinkerbell
    A Tinkerbell phenomena is one that exists only because people believe in it, and central banks in the developed world are now experiencing such a moment
    Philip Coggan 3 hours ago

    In JM Barrie’s play Peter Pan, the audience is asked to clap if they believe in fairies. If they fail to clap, the character Tinkerbell the fairy will die. A Tinkerbell phenomenon is one that exists only because people believe in it.

    Central banks in the developed world are experiencing such a moment. For 30 years, they have been the dominant actors in economic policy, controlling the cycle through adjustments in interest rates and via quantitative easing. The primacy of central banks has coincided with an era of low inflation; apparent evidence of their policy-setting skills.

    And investors have also had faith in central banks’ ability to rescue the economy at times of stress. Equity markets tend to rally when central banks indicate they are about to ease monetary policy. Under Alan Greenspan, the long-serving chair of the US Federal Reserve, this phenomenon was known as the “Greenspan put”.

    Now, however, the expertise of central banks is being questioned. They have been caught out by the surge in inflation over the past 12 months and have been slow to push up interest rates to counter it.

    To be fair, high energy prices, linked in part to Russia’s invasion of Ukraine, have been a significant factor in inflation’s rise. Andrew Bailey, Bank of England governor, told the House of Commons that the central bank had faced an “almost unprecedented” sequence of shocks. But he added that “to forecast 10 per cent inflation and to say there isn’t a lot we can do about it is an extremely difficult place to be”.

    That admission of powerlessness is rather awkward. If central banks don’t deserve the blame for the recent inflation jump, maybe they don’t deserve the credit for the past three decades of subdued price rises.

    Low inflation was driven by the entry of China into the global economy, a move which flooded the developed world with low-cost goods. Technological changes that reduced corporate costs also played a role. Perhaps central banks weren’t really brilliant economic managers — perhaps they were just lucky.

    Another problem with Mr Bailey’s admission is central banks’ ability to manage expectations is crucial. If businesses believe that central banks can control inflation, they will avoid passing on raised costs in the form of higher prices for consumers; if workers believe central banks can control inflation, they will not demand higher wages in compensation for higher prices. But if they lose their faith in the banks, it becomes a free-for-all, as it was in the 1970s. At that time, Tinkerbell was stone-dead.
    …

  56. The Financial Times
    Property sector
    Rising rates raise prospect of property crash
    Homeowners, landlords and investors spooked as end of ultra-cheap debt sends prices sliding
    One real estate agent estimates homes have shed 10% of their value in the time it might take some buyers to complete a purchase
    George Hammond June 24 2022

    Brenda McKinley has been selling homes in Ontario for more than two decades and even for a veteran, the past couple of years have been shocking.

    Prices in her patch south of Toronto rose as much as 50 per cent during the pandemic. “Houses were selling almost before we could get the sign on the lawn,” she said. “It was not unusual to have 15 to 30 offers . . . there was a feeding frenzy.”

    But in the past six weeks the market has flipped. McKinley estimates homes have shed 10 per cent of their value in the time it might take some buyers to complete their purchase.

    The phenomenon is not unique to Ontario nor the residential market. As central banks jack up interest rates to rein in runaway inflation, property investors, homeowners and commercial landlords around the world are all asking the same question: could a crash be coming?

    “There is a marked slowdown everywhere,” said Chris Brett, head of capital markets for Europe, the Middle East and Africa at property agency CBRE. “The change in cost of debt is having a big impact on all markets, across everything. I don’t think anything is immune . . . the speed has taken us all by surprise.”

    Listed property stocks, closely monitored by investors looking for clues about what might eventually happen to less liquid real assets, have tanked this year. The Dow Jones US Real Estate Index is down almost 25 per cent in the year to date. UK property stocks are down about 20 per cent over the same period, falling further and faster than their benchmark index.

    The number of commercial buyers actively hunting for assets across the US, Asia and Europe has fallen sharply from a pandemic peak of 3,395 in the fourth quarter of last year to just 1,602 in the second quarter of 2022, according to MSCI data.

    Pending deals in Europe have also dwindled, with €12bn in contract at the end of March against €17bn a year earlier, according to MSCI.

    Deals already in train are being renegotiated. “Everyone selling everything is being [price] chipped by prospective buyers, or else [buyers] are walking away,” said Ronald Dickerman, president of Madison International Realty, a private equity firm investing in property. “Anyone underwriting [a building] is having to reappraise . . . I cannot over-emphasise the amount of repricing going on in real estate at the moment.”
    …

    1. Lower interest rates will not right this sinking ship.

      For a related example, falling rates in Japan did nothing to slow the collapse of their home-grown version of the Everything Bubble when it collapsed over the 1990 – 2000 period.

  57. Well well this is NOT acceptable to a Realtor! Things have be back to 2004-2006 conditions!

    Realtors are Liars.

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