A report from KRON in California. "Four real estate professionals in the Bay Area were…
This Post Has 16 Comments
The first 14 minute Florida video:
The Housing Bubble Has Burst! in The Villages Florida | Florida Real Estate
Jul 15, 2022 Call it what you want… Crash or Correction home prices are going down, Sellers are getting nervous as homes sit on the market. Buying opportunities are HERE!
The second 10 minute video:
Housing Market Update – Should You Sell Now?
Jul 14, 2022 Housing Market Update – Should you Sell Now?
With home prices dropping, rising mortgage rates, people wondering if the housing market is going to crash, you may be wondering if you should still sell your house now or wait until 2023…you may not be able to sell your house in 3 days now for way over asking price, but you CAN still sell…as long as you understand the housing market and what it will take to sell your house fast. Knowing exactly what is going on in your local housing market, based on actual data from your local realtors, knowing what home buyers are concerned with now and looking for will help you sell your house in a market that is shifting back to a buyer’s game.
The third 6 minute video:
Change the Stress Test?
Mark Mitchell – Mortgage Broker London Ontario
Jul 15, 2022
Canada’s Real Estate market saw major declines in sales and prices in June, with the Canadian Real Estate Association (CREA) questioning if it is time to revisit the mortgage stress test.
While sales were down over 23% since this time last year, Canada’s benchmark price fell almost $30,000. Home sales were down close to 6% since last month.
CREA Economist is questioning whether or not its time for Canadian policymakers to revisit the stress test, noting that so many home buyers are moving to variable rate mortgages as its easier to pass the stress test.
But its not clear that revising the stress test, which many say have helped to save home buyers from financial ruin, is the best action at this point.
Canada’s inflation forecast is still unknown, as is the path of interest rates going forward.
The 4th 7 minute video:
Sacramento / Stockton Real Estate Report for 7/14/2022
Jul 14, 2022 The Sacramento / Stockton area real estate market once again experienced a drop in both the median sales price and median list price. It is definitely turning into a buyers’ market with the inventory levels climbing and fewer pending sales. Mortgage rates went back up this week but that doesn’t necessarily mean your payment is going up. I will explain this and the surprising number of contract cancellations.
In the K-da video above the loan guy asks why are we lending money at a rate below inflation:
‘Under federal banking rules, borrowers must prove they can make their monthly mortgage payments at an interest rate that is at least two percentage points higher than that of their actual loan contract; for instance, with a five-year fixed rate of almost 5 per cent, a borrower would have to show they can make their payments with an interest rate of almost 7 per cent.’
‘This has made it particularly difficult for first-time homebuyers, especially those in expensive markets such as most of Southern Ontario and B.C.’
‘Kristina Legault, a realtor with Century 21 Creekside Realty, which serves the Chilliwack area in B.C., said some buyers simply cannot get financing now. “The interest rate really has an effect on them,” she said.’
BREAKING – CMHC and other mortgage insurers consider whether to turn down applications already submitted
You get a pre-approval, you buy a house, submit the Purchase Agreement through the bank Tuesday night, bank sends to CMHC Noon Wednesday AFTER monster Prime Rate Jump
Quote Tweet
Rob McLister
@RobMcLister
· 15h
BREAKING: Canada’s 3 mortgage default insurers have reportedly met to discuss if they will re-qualify variable-rate applications submitted BEFORE the BoC’s big hike. If so, it would potentially kill approvals for borrowers w/ high debt ratios.
‘Sellers’ asking prices also came down 3% from their May peak as the share of homes with price drops hit another new high. Home supply posted its first year-over-year increase since August 2019 as pending sales continued to slide. These changes in the housing market can be attributed to buyers reaching their limit on costs—not just of homes and mortgages, but also food, transportation and energy.’
“Inflation and high mortgage rates are taking a bite out of homebuyer budgets,” said Redfin Chief Economist Daryl Fairweather. “Few people are able to afford homes costing 50% more than just two years ago in some areas, so homes are beginning to pile up on the market. As a result, prices are starting to come down from their all-time highs. We expect this environment of reduced competition and declining home prices to continue for at least the next several months.”
‘The lower prices mean it’s the buyer’s “time to shine,” said Wins Lai, a Toronto broker. Even though rates are up, she said it’s a particularly good time for first-time homebuyers to get into the market because prices aren’t as high as they previously were and listings are up.’
‘The association found new listings climbed by four per cent month-over-month and 10 per cent year-over-year. Much of the frenzy has dissipated too. “Most of my colleagues that are trying bidding wars … they only got one offer because the amount of buyers has definitely slimmed down,” she said. “They look at the rates and they look at their investment and they say, ‘hey, does this make sense?’”
‘For sellers, it’s “a tough pill to swallow,” she added.’
As one national broker explained, “90%+ of all mortgages since 2010 are subprime. It’s no mystery why defaults are soaring.”
‘And the San Francisco tech industry group sf.citi wrote this in its report “Tracking the San Francisco Tech Exodus”: “What we’re seeing today is nothing short of a mass migration of tech companies and tech employees outside of the San Francisco Bay Area.”
There are no suburbs for techies to migrate toward when they want to start a family especially on the peninsula from Mountain View to San Francisco since people now live much longer, so there’s little turnover in suburban housing. The reality is nobody wants to commute from Antioch to San Francisco.
since people now live much longer
I was under the impression that life expectancy was going down.
Funeral business is booming.
“I was under the impression that life expectancy was going down.”
You’re correct, it is. However, it would have to drop significantly to get back to the 80s level. Medical technology has come a long way.
Medical technology has come a long way.
Perhaps it’s because far fewer smoke now than back then? Though I think that the fatpocalypse may undo those gains. The jab will probably also leave its mark.
“Perhaps it’s because far fewer smoke now than back then?”
That’s a good point. However, don’t overlook the gains produced in oncology.
gains produced in oncology
Aging 30 years in 3 years of chemo delaying the inevitable. Winner: Big Pharma.
Aging 30 years in 3 years of chemo delaying the inevitable. Winner: Big Pharma.
My thought as well. Cancer takes no prisoners. And you have to catch it early to even get a few years. I know too many people who were gone just a few months after diagnosis.
Venice, FL Housing Prices Crater 24% YOY As Debt-Weary Borrowers Unload Housing Across US
The first 14 minute Florida video:
The Housing Bubble Has Burst! in The Villages Florida | Florida Real Estate
Jul 15, 2022 Call it what you want… Crash or Correction home prices are going down, Sellers are getting nervous as homes sit on the market. Buying opportunities are HERE!
The second 10 minute video:
Housing Market Update – Should You Sell Now?
Jul 14, 2022 Housing Market Update – Should you Sell Now?
With home prices dropping, rising mortgage rates, people wondering if the housing market is going to crash, you may be wondering if you should still sell your house now or wait until 2023…you may not be able to sell your house in 3 days now for way over asking price, but you CAN still sell…as long as you understand the housing market and what it will take to sell your house fast. Knowing exactly what is going on in your local housing market, based on actual data from your local realtors, knowing what home buyers are concerned with now and looking for will help you sell your house in a market that is shifting back to a buyer’s game.
The third 6 minute video:
Change the Stress Test?
Mark Mitchell – Mortgage Broker London Ontario
Jul 15, 2022
Canada’s Real Estate market saw major declines in sales and prices in June, with the Canadian Real Estate Association (CREA) questioning if it is time to revisit the mortgage stress test.
While sales were down over 23% since this time last year, Canada’s benchmark price fell almost $30,000. Home sales were down close to 6% since last month.
CREA Economist is questioning whether or not its time for Canadian policymakers to revisit the stress test, noting that so many home buyers are moving to variable rate mortgages as its easier to pass the stress test.
But its not clear that revising the stress test, which many say have helped to save home buyers from financial ruin, is the best action at this point.
Canada’s inflation forecast is still unknown, as is the path of interest rates going forward.
The 4th 7 minute video:
Sacramento / Stockton Real Estate Report for 7/14/2022
Jul 14, 2022 The Sacramento / Stockton area real estate market once again experienced a drop in both the median sales price and median list price. It is definitely turning into a buyers’ market with the inventory levels climbing and fewer pending sales. Mortgage rates went back up this week but that doesn’t necessarily mean your payment is going up. I will explain this and the surprising number of contract cancellations.
In the K-da video above the loan guy asks why are we lending money at a rate below inflation:
‘Under federal banking rules, borrowers must prove they can make their monthly mortgage payments at an interest rate that is at least two percentage points higher than that of their actual loan contract; for instance, with a five-year fixed rate of almost 5 per cent, a borrower would have to show they can make their payments with an interest rate of almost 7 per cent.’
‘This has made it particularly difficult for first-time homebuyers, especially those in expensive markets such as most of Southern Ontario and B.C.’
‘Kristina Legault, a realtor with Century 21 Creekside Realty, which serves the Chilliwack area in B.C., said some buyers simply cannot get financing now. “The interest rate really has an effect on them,” she said.’
https://www.theglobeandmail.com/business/article-canadian-home-prices-spiral-down-in-june/
Related:
Ron Butler
BREAKING – CMHC and other mortgage insurers consider whether to turn down applications already submitted
You get a pre-approval, you buy a house, submit the Purchase Agreement through the bank Tuesday night, bank sends to CMHC Noon Wednesday AFTER monster Prime Rate Jump
Quote Tweet
Rob McLister
@RobMcLister
· 15h
BREAKING: Canada’s 3 mortgage default insurers have reportedly met to discuss if they will re-qualify variable-rate applications submitted BEFORE the BoC’s big hike. If so, it would potentially kill approvals for borrowers w/ high debt ratios.
https://twitter.com/ronmortgageguy/status/1548041998891773953
‘Sellers’ asking prices also came down 3% from their May peak as the share of homes with price drops hit another new high. Home supply posted its first year-over-year increase since August 2019 as pending sales continued to slide. These changes in the housing market can be attributed to buyers reaching their limit on costs—not just of homes and mortgages, but also food, transportation and energy.’
“Inflation and high mortgage rates are taking a bite out of homebuyer budgets,” said Redfin Chief Economist Daryl Fairweather. “Few people are able to afford homes costing 50% more than just two years ago in some areas, so homes are beginning to pile up on the market. As a result, prices are starting to come down from their all-time highs. We expect this environment of reduced competition and declining home prices to continue for at least the next several months.”
https://finance.yahoo.com/news/redfin-reports-prices-begin-fall-190600461.html
‘The lower prices mean it’s the buyer’s “time to shine,” said Wins Lai, a Toronto broker. Even though rates are up, she said it’s a particularly good time for first-time homebuyers to get into the market because prices aren’t as high as they previously were and listings are up.’
‘The association found new listings climbed by four per cent month-over-month and 10 per cent year-over-year. Much of the frenzy has dissipated too. “Most of my colleagues that are trying bidding wars … they only got one offer because the amount of buyers has definitely slimmed down,” she said. “They look at the rates and they look at their investment and they say, ‘hey, does this make sense?’”
‘For sellers, it’s “a tough pill to swallow,” she added.’
https://globalnews.ca/news/8992581/canada-home-sales-prices-june-2022/
Bradenton, FL Housing Prices Crater 19% YOY As Mortgage And Appraisal Fraud Ravages Gulf Coast Florida
https://www.movoto.com/fl/34210/market-trends/
As one national broker explained, “90%+ of all mortgages since 2010 are subprime. It’s no mystery why defaults are soaring.”
‘And the San Francisco tech industry group sf.citi wrote this in its report “Tracking the San Francisco Tech Exodus”: “What we’re seeing today is nothing short of a mass migration of tech companies and tech employees outside of the San Francisco Bay Area.”
https://www.sfexaminer.com/news/the-techies-we-wanted-to-go-away-have-and-its-our-loss/article_664d7dfc-047f-11ed-ac9c-6f889ea33672.html
There are no suburbs for techies to migrate toward when they want to start a family especially on the peninsula from Mountain View to San Francisco since people now live much longer, so there’s little turnover in suburban housing. The reality is nobody wants to commute from Antioch to San Francisco.
since people now live much longer
I was under the impression that life expectancy was going down.
Funeral business is booming.
“I was under the impression that life expectancy was going down.”
You’re correct, it is. However, it would have to drop significantly to get back to the 80s level. Medical technology has come a long way.
Medical technology has come a long way.
Perhaps it’s because far fewer smoke now than back then? Though I think that the fatpocalypse may undo those gains. The jab will probably also leave its mark.
“Perhaps it’s because far fewer smoke now than back then?”
That’s a good point. However, don’t overlook the gains produced in oncology.
gains produced in oncology
Aging 30 years in 3 years of chemo delaying the inevitable. Winner: Big Pharma.
Aging 30 years in 3 years of chemo delaying the inevitable. Winner: Big Pharma.
My thought as well. Cancer takes no prisoners. And you have to catch it early to even get a few years. I know too many people who were gone just a few months after diagnosis.
Venice, FL Housing Prices Crater 24% YOY As Debt-Weary Borrowers Unload Housing Across US
https://www.movoto.com/fl/34285/market-trends/
As one Florida broker explained, “Housing has always been a toxic and depreciating asset. That lesson must be re-learned every few years.”