thehousingbubble@gmail.com
Blog

Investors Are Aggressively Pitching Lowball Offers And Prices Have Already Fallen Steeply

It’s Friday desk clearing time for this blogger. “‘In my 22 years experience, I’ve never seen it move as fast as it was. I mean, back in Easter, every deal I had was multiple offers. You know, few months later, it’s crickets. I mean, I have hardly any showings or any offers. So the buyers are just sitting there,’ said Realmark Realty Broker Ted Stout of Cape Coral.”

“‘Sellers kind of have a fear of missing out and they know the market has changed,’ said Alex Platt with Compass in Boca Raton. ‘We have to re-teach [sellers] how to price a home correctly,’ said Jeff Lichtenstein, with Echo Fine Properties in Palm Beach Gardens. ‘They might to price it at $685,000 let’s say, but the real price should be $650,000. They could get away with that in the past because there was no inventory and a buyer would see it because there wasn’t anything out there.'”

“Too much aggressiveness in pricing can be reflected in price cuts: For West Palm Beach, 20% of homes for sale had a price reduction, up from 12% last year, according to Redfin. In Fort Lauderdale, 15% of homes had a price reduction, up from 11% the same time last year. In Miami, 13.7% of homes had a price reduction, an increase from 8% last year.”

“‘Just in the last 45 days, it’s a whole new market,’ said Quentin Dane, a real-estate agent in Raleigh, N.C. The number of new leads coming into his brokerage has dropped by half, he said, and the inventory of homes for sale has increased. ‘We’re definitely seeing buyers take a breath,’ he said.”

“Nicholas Brooks and Nathan Giddings put their four-bedroom, 2.5-bath house in Flower Mound, Texas, roughly 20 miles northwest of Dallas, on the market in early June for $575,000 and got several offers. They ended up accepting a $645,000 bid, but it fell apart soon after. The couple, which now live in Portland, Maine, relisted the house a few weeks later, but ended up accepting a $615,000 offer. ‘We started super-optimistic, we got a ton of offers over asking and then clearly a month later it was a couple of offers and much less,’ said Brooks, a systems analyst. ‘We definitely thought if we left it on the market the offers would get lower and lower.'”

“‘Sellers are having to drop their price to more realistic terms or kind of a little bit under where they want it to be,’ said Jessie Rittenhouse, an agent with Century 21 in the Dallas-Fort Worth metro area .In addition, sellers are sometimes offering to pay buyers’ closing costs or to give them thousands of dollars to offset the impact of higher mortgage rates, Rittenhouse said.”

“The last two years have been a whirlwind for Spokane’s real estate market. But now there’s speculation of a real estate correction for the Lilac City. Murphy said, ‘What we had was so abnormal and so crazy. I’ve heard it as this way: It’s kind of like a party. You can’t party all night long, right? Morning has to come. You have to go back to a normal state. It can’t be that crazy for that long.’ Other cities listed in the top five markets for housing price drops in 2023 include Reno, Nev. and Honolulu, Hawaii.”

“New data shows that home sales across the Wasatch Front are continuing to slow as new listings continue growing. This past June, Salt Lake County home sales have hit the lowest amount in a decade, falling 27% lower than in June 2021. This marked a new 10-year low for the county. Yet despite dropping sales, Salt Lake City saw one of the largest increases in new home inventory in the nation. ‘Rising inventories will begin to favor home buyers,’ says the Salt Lake Board of Realtors. ‘In addition to more houses for sale, last year was a record-breaking year in the number of residential permits issued in the state of Utah, helping to erase a statewide cumulative housing shortage.'”

“Chandler already had more than three times the number of homes on the market than it had a year ago as prices across the Valley are falling at a faster-than-expected rate, according to The Cromford Report. ‘Astute sellers will realize that the situation is very fluid and slipping away from them,’ the report said. ‘Prices are reacting much more quickly to the poor market conditions than we expected,’ it said of the Valley-wide housing scene.”

“‘In 2005 and 2006, it took a long time for prices to change direction. In 2022, the change has happened almost overnight. This is probably because people are primed to believe price drops are likely whereas in 2005 most people still believed that home prices never go down. Whatever the reason, sellers in 2022 have been willing to make quick and frequent cuts in their asking prices and accept offers well below those.’ Cromford also predicted prices would continue to fall until demand picks up. ‘Pressures to sell at lower prices are coming from the sellers themselves,’ it said. ‘Low demand mean they are competing with other sellers and a lower price is an obvious tool for them.'”

“The median price of an existing, single-family home in the Los Angeles metro area was $780,000 in July — down from $800,000 in June, the California Association of Realtors reported. Los Angeles County trended in the same direction over the last month, with the median price dropping to $846,320 — down from $860,230 in June. The median price in Orange County was $1.231 million in July, down from $1.265 million in June. San Diego County’s median price dropped from $950,000 in June to $930,000 in July. Riverside County’s median price in July was $625,000, down from $645,000 in June.”

“‘Home sales have taken a trouncing as the market has shifted in response to the recent surge in interest rates, and pending sales suggest that the market could remain soft in August,’ said CAR Chief Economist Jordan Levine.”

“‘We hear it every day: ‘We just want to see where the market is headed,’  Suzanne Seini, CEO of Irvine-based Active Realty Inc., said of today’s home shoppers. ‘There are not as many buyers now.’ Locally, 20.6% of July escrows fell through in the Inland Empire, followed by 18% in Los Angeles County and 16.4% in Orange County, the report said. ‘The looming recession has buyers on the edge of their seats, fully aware that the housing market has slowed considerably,’ ‘Reports on Housing’ author Steve Thomas wrote in his latest commentary. ‘Homes are taking a lot longer to sell. The number of price reductions has surged higher in the past couple of months. As a result, many buyers sit on the sidelines waiting for prices to plunge.'”

“Alexis Victor, real estate agent with Royal LePage Signature Realty, says investors are aggressively pitching lowball offers for cottage properties in areas around Orillia, Ont., Ramara Township and the Kawartha Lakes northeast of Toronto. Sales and prices have already fallen steeply, she says. ‘It’s such a jaw-dropper,’ Ms.Victor says of the rapid decline. ‘You have to go back almost a full year to price a property now.'”

“The median price in areas around Ramara fell for five months in a row to $680,000 in July from $875,000 in February, according to Information Technology Systems Ontario. ‘Initially, there was a lot of panic,’ she says, as homeowners who were contemplating a sale heard about declining prices. ‘Some properties were getting no showings.’ But many owners are resolute about not selling below a fixed price. ‘Sellers are aggressively hanging on,’ she says. ‘The buyers say, ‘We’ll just wait until they come around.’”

“Paul Maranger and Christian Vermast of Sotheby’s International Realty Canada say cottage and country home listings are likely to swell if the economy worsens because owners are more likely to sell an ancillary property if they are stretched financially. Mr. Maranger, who has a background in banking, says lenders are more conservative in providing mortgages for vacation homes – especially in uncertain times. ‘They first will tighten their policies on cottages,’ he says, and that could lead to more inventory in those areas.”

“As for the buyers in the current market, Ms. Victor says investors are keenly watching for deals on cottages and waterfront homes. ‘I don’t have any cottage buyers – not one. They are all investors.’ She points to one renovated home she listed with an asking price of $1.345-million in May. When the property didn’t sell, she made a ‘harsh correction’ to the price and reduced it to $1.16-million.”

“Even then, showings were few. Finally, Ms. Victor began receiving lowball offers in the mid-$900,000s. The property sold conditionally in early August. Ms.Victor says many investors are offering $100,000 to $150,000 below the asking price of a property. ‘They offend the sellers. The sellers are not interested in working with them,’ she says.”

“Ms. Victor has one property on Fawn Bay Road in Orillia for sale with an asking price of $965,000. The owners are patient because the renovated three-bedroom cottage overlooking Lake Couchiching is in high demand on the rental market. ‘Ideally they would like to sell it, but they’re not going to sell it unless they get a reasonable price,’ she says.”

Related Posts
This Post Has 120 Comments

  1. ‘Astute sellers will realize that the situation is very fluid and slipping away from them,’ the report said. ‘Prices are reacting much more quickly to the poor market conditions than we expected,’ it said of the Valley-wide housing scene’

    ‘In 2005 and 2006, it took a long time for prices to change direction. In 2022, the change has happened almost overnight. This is probably because people are primed to believe price drops are likely whereas in 2005 most people still believed that home prices never go down. Whatever the reason, sellers in 2022 have been willing to make quick and frequent cuts in their asking prices and accept offers well below those.’ Cromford also predicted prices would continue to fall until demand picks up. ‘Pressures to sell at lower prices are coming from the sellers themselves’

    It is different this time:

    ‘people are primed to believe price drops are likely whereas in 2005 most people still believed that home prices never go down’

  2. ‘last year was a record-breaking year in the number of residential permits issued in the state of Utah, helping to erase a statewide cumulative housing shortage’

    I was wondering what happened to my shortage.

  3. ‘Homes are taking a lot longer to sell. The number of price reductions has surged higher in the past couple of months. As a result, many buyers sit on the sidelines waiting for prices to plunge’

    via GIPHY

  4. ‘You know, few months later, it’s crickets. I mean, I have hardly any showings or any offers. So the buyers are just sitting there,’ said Realmark Realty Broker Ted Stout of Cape Coral…‘Sellers kind of have a fear of missing out and they know the market has changed,’ said Alex Platt with Compass in Boca Raton’

    Looks like Florida has joined the crater. These are common names to long time readers.

    1. YES, FLORIDA! Crater, baby, crater!! My husband and I aren’t skimping and saving cash for nothing. Let it comeee!

  5. ‘They offend the sellers. The sellers are not interested in working with them’…’Ideally they would like to sell it, but they’re not going to sell it unless they get a reasonable price’

    That’s right Alexis, hold yer ground. Don’t give it away.

    3. I’ve worked with a couple of them and I’d have to say I agree whole heartedly.

      Last year I had one tell me he was telling people to BUY NOW because he just didn’t see prices coming down. I just looked at him and said “My family doesn’t manage our money that way.”

      The next one kept telling me “Man, this house would go for xxx on the other side of town. You can fix this up and that up. Let me tell you about this and that.”
      Sir, you do realize this house for which they’re asking 300k hasn’t been updated since the 80s, right?

  8. Ben, I don’t mean to get way out ahead of you & the rest of the HBB, but I’ve been connecting the dots, and have concluded that what we’re looking at here is the early stages of a bursting housing bubble. I just wanted to bring the rest of you up to speed.

    2. Ok i get robbing a bank (that’s where the money is) or a high end jewelry store but what is the point of robbing a 7-11? Oh look I got $10 and a pop tart.

      1. This is the Cloward-Piven Strategy in action.

        No father in the home, no consequences for behavior, the welfare state replaces the family.

    1. As far as I am concern, A forensic criminal investigation should be conducted on all parties that colluded in this mass genocide and injury by Big Pharmacy/Government.

      The Fraud of the Pandemic declared.
      The fraud of the inaccurate PCR testing
      FDA approval of vaccines where trials showed they weren’t fit for human consumption.
      Fake news collusion with defrauding public on vaccines, while censoring Drs and Scientists that disputed the poison .
      Forensics on epic increase in all cause mortality, and injury.
      Criminal forensic testing of batches of vaccines , as to some batches being more lethal than others , or if different ingredients were put in different lots.
      Biden defrauding public saying shots were safe and effective , you won’t get Covid, mandating that people get fired if they don’t get the injection.
      Forensic criminal investigation of Gov Agencies, such as the FDA, CDC, Dr Fauci and WHO, what conflicts of interest was operative. Bill Gates bribing fake news, etc.
      I could go on and on, but as far as I am concerned this was mass murder/injury, where many parties colluded to pull it off.
      Cares Acts incentives given to hospitals to commit mal practice and medical fraud. Care Act money going to Big Corporations , including Big Pharmacy.
      The culprits milked these crimes against the globe as far as they could go, while you just know they are sitting up for round two.
      They have shifted to Climate Change and all the destruction they can reek with that false narrative.
      This well organized Private Party infiltration of Governments and their Agencies, to bring on a One World Order Great Reset, with Stakeholder Corporate Governance being the end game dictorship.
      They are criminals, waging a war against the populations of the Globe, where their death toll is greater than how many US loss in World War 2 so far.
      And there isn’t any way of stopping them, other than not complying , than suffering their punishments.
      Klaus Schwab , WEF, Dr Harari , aren’t arrested for terrorists threats against globe by exposing they are going to hack people , take their freedom, they will own nothing and eat bugs, with a forced Great Reset.
      It just looks like they are trying to piss people off so much they will resort to Civil War or revolution , and than they can assert the full power of the military against the populations.
      Just unbelievable.

    2. My apprentice just walked off the job mid-day because he was “exposed” to someone who just tested positive for CCP Flu.

      1. My apprentice just walked off the job mid-day because he was “exposed” to someone who just tested positive for CCP Flu.

        Idiots still believe this is the black death.

        1. It’s more than that.

          Stories are circulating about job hoppers getting hired, taking their government cheese CCP Flu paid leave, then quitting, and repeating it at other contractors, to the point where there are unofficial blacklists of “do not hire” in the trades.

          1. Just looked that up. Apparently it expires on September 30.

            Abusing that is a good way to get on a “do not hire” list.

  12. A reader sent these in:

    Lance Lambert

    #NEW @zillow cuts its 2023 home price forecast. Again.

    https://twitter.com/NewsLambert/status/1560348406832414720

    Ben Rabidoux

    The decline in seasonally adjusted avg 🇨🇦 house prices from peak 5 months ago is the largest such decline since the 1980s.

    https://twitter.com/BenRabidoux/status/1560283305983057925

    Charlie Bilello

    The median price of an existing home sold in the US fell 2.4% in July, the largest monthly decline since January 2020.

    https://twitter.com/charliebilello/status/1560471835283787779

    The crypto winter continues as http://Crypto.com lays off hundreds.

    https://twitter.com/Mayhem4Markets/status/1560431022113755138

    Danielle DiMartino Booth

    A friendly reminder that in the end, supply = demand.

    https://twitter.com/DiMartinoBooth/status/1560357715775574017

    Real wages in Australia have gone back to 2011 levels 🚨

    The data is probably worse than reported due to CPI data being underreported.

    https://twitter.com/WallStreetSilv/status/1560174670237863937

    More than 24% of first-time home buyers opened a new credit card within the first six months of buying a new home, compared to just 1% of current homeowners, per Realtor .com.

    https://twitter.com/unusual_whales/status/1560237826440134661

    The #housingmarket slump continues to build momentum. FYI: in the SF Bay area, one of the (until recently) hottest metros in the US, not only are sales down 38% YoY, but price reductions are up nearly 200%.

    https://twitter.com/menlobear/status/1560271693297229824

    Liz Ann Sonders

    Continued “yikes” for existing home sales, -5.9% in July vs. -4.9% est. & -5.5% in prior month; annualized level of sales at 4.81M is lowest since May 2020 … median selling price +10.8% y/y to $403,800 … first-time homebuyers accounted for 29% of transactions.

    https://twitter.com/LizAnnSonders/status/1560267942386094082

    1. “The median price of an existing home sold in the US fell 2.4% in July, the largest monthly decline since January 2020.”

      1-(1-0.024)^12 = 25.3% annualized rate of price decline

    2. ‘Continued “yikes” for existing home sales, -5.9% in July…’

      1-(1-0.059)^12 = 51.8% annualized rate of decline in existing home sales

      “first-time homebuyers accounted for 29% of transactions.”

      Welcome to knife catcher’s paradise. 🔪

      1. Existing home sales are rapidly drying up at the same time prices are beginning to drop. ☔ This paves the way for further increases in inventory and price declines, a growing number of sellers competes with a shrinking buyer pool. The smell of blood in the water and fear of catching a falling knife encourages buyers to make ever more agressive lowball offers.

        We have the makings of a serious CR8R event in US housing!

        1. Just me, but I don’t think it’s possible to do $1M of upgrades on a 1960s ranch. I bought one very similar in 1978 for under $30K. Gas was approaching $1. You do the math.

          3. That house cost less than $20K to build. It just amazes me that you could consider it a Million Dollar House! Solid gold faucets? There’s a saying for that, something about a sow’s ear.

          4. You’re (over)paying for the location. If the same house was in Topeka, it would fetch a lot less.

          5. “If the same house was in Topeka, it would fetch a lot less.”

            M&L is that much less in Kansas?

          6. that you could consider it

            The market considers it. Not me. I’m sharing my observations having watched the CA real estate closely the last few years.

          8. I sold the Encinitas house for a reason. I could buy any of these with CASH and possibly have money left over. I welcome higher interest rates and tighter lending. I’m not a debt donkey.

          9. “That house cost less than $20K to build.”

            Back in the late 60s or early 70s, that place was brand new and likely sold to a Ford or GM assembly plant UAW worker who was no more than one year out of high school.

          2. “Note this one just sold for $1.55M in May.”

            You come up with one example of appraisal fraud after another. Have you considered notifying the authorities?

          4. About as useful as complaining my ballot to recall Newsom is still MIA.

            Most likely it met its final fate in a paper shredder.

  15. “You can’t party all night long, right? Morning has to come. You have to go back to a normal state.”

    Not after a party night. Hangover time, maybe in jail with DUI.

  16. “‘In 2005 and 2006, it took a long time for prices to change direction. In 2022, the change has happened almost overnight. This is probably because people are primed to believe price drops are likely whereas in 2005 most people still believed that home prices never go down.”

    The mania seems to be ending.

    “‘Pressures to sell at lower prices are coming from the sellers themselves,’ it said. ‘Low demand mean they are competing with other sellers and a lower price is an obvious tool for them.’”

    Let the housing bubble collapse Hunger Games begin. May the odds be ever in your favor.

      1. CNBC
        Stocks tumble, S&P 500 on pace to break 4-week win streak
        Samantha Subin
        Jesse Pound

        Stocks fell on Friday, putting all the major averages on pace to end the week lower as Wall Street’s summer appeared to falter.

        The S&P 500 fell 1.15%, while the Dow Jones Industrial Average dipped 270 points, or 0.8%. The Nasdaq Composite slid 1.75%.

        For the week, the S&P 500 was last down 1.03%, while the Dow was 0.12% lower. The tech-heavy Nasdaq is currently down more than 2% for the week.
        …

      1. The Financial Times
        US equities
        Investors fret over durability of summer rally in US markets
        Gains have been driven by hedge funds unwinding bearish bets rather than newfound conviction
        Traders work on the floor at the New York Stock Exchange in New York on Wednesday August 10 2022
        Traders work on the floor at the New York Stock Exchange on Wednesday August 10 2022
        Eric Platt and Ortenca Aliaj in New York 13 hours ago

        Investors are raising red flags over a stock market rally that has added more than $7tn in value to US equities since June, with many of the gains being driven by hedge funds unwinding bearish bets rather than newfound conviction that it is time to buy.

        Traders at Goldman Sachs, Morgan Stanley and JPMorgan Chase have warned clients in recent days that the bounce in shares is not underpinned by confidence the surge can last, according to interviews with traders and private brokerage reports seen by the Financial Times.

        Instead, the rally — including the frenzied boom and bust in meme stocks that recalls last year’s market ructions — has been fuelled by hedge funds covering short bets structured to profit from the market decline earlier this year, they said.

        Morgan Stanley and JPMorgan have found that clients have even been selling out of long-term wagers, suggesting they have little faith the rally can last. Some are already betting that the recovery will peter out, with Goldman’s hedge fund clients reloading their bearish bets.

        “The rhetoric has shifted to be less bearish, but the flows we’ve seen have been all short covering,” said a banker at one of the largest prime brokers. “If they really believed in the rally, they would be buying longs and we don’t see that.”
        …

  19. The Financial Times
    Tiger Global Management LLC
    How Tiger Global withdrew its claws when the tech bubble burst
    Chase Coleman’s hedge fund has slashed riskier holdings in favour of more stable companies
    Chase Coleman has reined in Tiger’s appetite for risk and slashed its holdings in pandemic beneficiaries such as Zoom and Carvana after its flagship fund lost half its value by July
    Antoine Gara in New York and Laurence Fletcher in London
    45 minutes ago

    As financial markets soared in 2021, fuelled by a pandemic surge in technology stocks that made Tiger Global one of the most successful hedge funds on the planet, the firm invited in US downhill skier Lindsey Vonn to offer advice to about 30 investors.

    Tiger’s analysts quizzed Vonn on how she recovered from a traumatic crash at the super-G world championships in 2013, suffered through a year of rehabilitation and, in her second race back, became world champion again.

    Now, the New York-based hedge fund, which managed over $90bn in assets at its peak, is drawing on the lessons of her recovery, say people familiar with the matter, after its flagship fund shed about half its value by July, causing billions of dollars in investor losses.

    Hammered by fast rising interest rates and tumbling tech stocks that benefited from the Coronavirus pandemic, the firm’s press-shy billionaire founder, Chase Coleman, has overhauled one of the world’s largest and most closely watched portfolios, reining in Tiger’s legendary risk appetite.

    One person familiar with Tiger described its newfound approach more prosaically as “a focus on not losing money”.
    …

  20. Housing market enters a recession
    CNBC Television
    Aug 18, 2022 CNBC’s Diana Olick joins Eamon Javers and ‘The News with Shepard Smith’ to report that realtors and builders are saying the U.S. has entered a housing recession.

    https://www.youtube.com/watch?v=ce1k_ygi050

    2:22. Wa happened to my strong fundamentals Diane?

  21. “The median price in Orange County was $1.231 million in July, down from $1.265 million in June.”

    Where I lived for the middle 30 years of my adult life. Median income in OC is a shade over $100,000. These prices are 12 x income. Unsustainable. Balloons are hissing everywhere.

  22. “Even then, showings were few. Finally, Ms. Victor began receiving lowball offers in the mid-$900,000s. The property sold conditionally in early August. Ms.Victor says many investors are offering $100,000 to $150,000 below the asking price of a property. ‘They offend the sellers. The sellers are not interested in working with them,’ she says.”

    Today’s lowball offer becomes the listing price in the next couple of months.

    2. Making It in the Bay
      Why Are Bay Area Home Prices Dropping?
      By Scott Budman
      • Published August 16, 2022
      • Updated on August 16, 2022 at 9:36 pm

      Median home prices in San Francisco have fallen by more than $300,000 in three months, real estate website Compass reports in a new survey analyzing the Bay Area real estate market.

      Yes, prices are falling, but many potential home buyers still consider the cost to own a home in the Bay Area too high for them to commit to with mortgage rates still up. Experts said it is tough to buy a home now as prices are likely to fall further.

      “As that’s happening, we’re seeing sales start to dip,” said Nicole Bachaud, a senior economist at real estate website Zillow. “We’re seeing homes stay on the market longer so inventory is beginning to pool up, and that’s going to drop prices as demand is taking a step back because people just can’t afford to be transacting in this market.
      …
      https://www.nbcbayarea.com/news/local/home-prices-bay-area/2979104/

      1. scott budman
        @scottbudman
        Follow
        #New: Home prices dropping fast.

        San Francisco Median Home Price:
        April 2022: $2,050,000
        July 2022: $1,680,000

        Homes selling over asking price:
        April: 73%
        July: 57%

        Source: @compass
        8:12 AM · Aug 16, 2022 from San Jose, CA

        CR8R maths:

        1-(1680/2050)^4 = 54.9% annualized rate of decline in the San Francisco Median Home Price

        1. What is it in the Fed’s messaging that Wall Street can’t hear? Do they perhaps have a problem with wax buildup in their ears?

          2. They know the Fed is trying to talk policy and have impact instead of just raising the rates. They are scared of the Nov elections – so it is talk, pretend and defer.

  25. Boise | Housing Market Update
    Aug 19, 2022 Are homes selling in Boise Idaho ? In this video I’ll breakdown all the data in detail with you for the month of July 2022 (Ada County ) Boise, Meridian, eagle, Kuna, Star, and Eagle.
    Data from the Boise Regional realtors.

    #1 As of the month of July we saw more homes come to market which in return is great news for buyers! More inventory = less competition with other buyers. Seller’s are more likely to work negotiate with you which in turn gives you more buying power. Examples given have been, Builder incentives like, Interest rate buy down, Closing cost, Landscaping,Blinds, Interior design funds ect.) We’ve seen seller’s offer interest rate buy downs to help the buyer’s monthly payment lower.

    #2 There were 2408 homes listed for sale at the end of July 2022 a 128.2% increase from July 2021, and the highest level of inventory we’ve seen since September 2015. Even with the uptick of inventory, the month supply of inventory in July was 2.8 months, meaning if no additional homes were listed the supply of homes would run out in about three months. A “balanced” market, or one that does not favor buyers or sellers is typically between four and six months of supply. July also marked the 5th month month of year over year declines in the number of sales. There were 685 closed homes last month, down 33.8% compared to July 2021. There have been 5,370 total sales you’re to date, 707 fewer or 11.6% less in this time last year.higher mortgage interest rates have done with the Fed intended in cold demand for housing which intern has also slowed cells in price growth. However, it’s important to remember that 2020 in 2021 were out of the norm for our market. We experienced a surge of demand for housing while we had record low inventory, which drove home prices up at a very rapid rate. Today, where in the mist of a shift to a normal market, one we’re bidding wars are less common, buyers have more time in choices, and appraisals and home inspections don’t have to be waived in order for your offer to be even considered. Buyers have more options, less competition in the market currently.

    https://www.youtube.com/watch?v=Bwr2K63HimQ

    1:12.

    1. I’ll be up there next month. I know a realtor up there from the way way back — met him over four decades ago, before we chose our respective professions. I may try to schedule lunch to catch up on life and gather intel on their CR8R formation.

  26. We might be looking at declining home prices nationally, says Yale’s Robert Shiller
    CNBC Television
    Aug 18, 2022

    https://www.youtube.com/watch?v=h5Dfiu5AnWg

    3:44. It’s already down nationally Chairman Mao. Where are these guys getting the “builders aren’t building”? We’ve got record building in both single and multi-family.

    1. My observation in my little burg is that this time building is a bit less than it was say back in 2006. Not sure why, though I have heard that to subdivide you have to provide water rights to the city, and right now those are expensive. Per movoto there are 63 new houses for sale in the little burg.

      Also, back in 2006, big box stores popped up here like crazy, This time, nothing, though some were built in neighboring Johnstown.

    2. “might be”

      It doesn’t take a Nobel Prize in Economics or a Yale professorship to figure this out. High school math and reading skills are sufficient.

      “The median price of an existing home sold in the US fell 2.4% in July, the largest monthly decline since January 2020.”

      1-(1-0.024)^12 = 25.3% annualized rate of price decline

    1. “Majority of US companies implementing hiring freezes as economic outlook darkens”

      Companies hunkering down to prepare for a recession is a leading cause of recessions.

      1. It’s analagous to a prisoner’s dilemma game but with myriad players.

        Also analagous to the real estate investor’s dilemma with HODLing property in a CR8Ring market. Selling now may make things collectively worse for everyone who hasn’t yet sold, but delaying sale may result in a larger individual loss for any HODLer who hopes and waits for a recovery that never occurs.

    1. That one’s a real puke. Housing prices are falling everywhere except for sacramento. He doesn’t seem to like non-realtor data.

      Sometimes I say to myself come on Mafia blocks, you’re too hard on realtors. They’ve been scumbagging it for decades now and what they’re doing now is nothing new. However, given their complicity in mortgage and appraisal fraud, they will get the contempt they so richly deserve from me.

    2. The tub of shit deleted comments that proved sacramento prices are falling….. and proved he was lying about it…. but afterall… that’s what realtors do.

  30. Ok, I talk sometimes about my friend who lives 5 blocks away who took the two jabs.

    First he got neurotic so problems where his legs started going out on him. . Than that went away and he started having eye problems , six styes kinda unusual. Than three months go by and they think he has cancer, than tests rule that out. .
    .
    Than 3 months go by and his leg goes out on him again , and he falls and injured his knee.
    Than he called me recently telling me he has these weird lesions breaking out all over his body , but he can’t get in to see a Dr for three weeks.
    He basically said to me that he felt like he was falling apart. Another time he said he feels like he’s dying.
    I know this isn’t proof of vaccine injury , but all his troubles started directly following his second shot.
    My next door neighbor who was healthy now claims he has to have neck surgery. Two neighbors close to where I live have died in sleep so far, don’t know about the other blocks. High compliance in taking the jabs in the neighborhood I live in.
    Some of my neighbors seem totally ok so far.
    A 4 sale sign when up at a house where I didn’t know this person, and you only see the daughter walking around , so I don’t yet know what happened to that person. I’m afraid to ask.

    1. No more vaccines of any kind for me. I don’t trust pharma anymore. No flu shots. not tetanus shots, no nothing. Heaven knows what they are putting in them now.

      1. 100% no more shots period. If I do agree to it, I”ll need to see the sealed bottle and needle before you do it and I’ll need to see 100% of the time. Good work medical industry you tossed away 100 years of trust for nothing.

        1. Seriously, how dare they do what they have done. I can’t get it out of my mind that a holocaust is going on and those lethal fake vaccines are still on the market, and they plan to push more.
          Biden will buy the vaccines and they get paid for them , even if people don’t get the injections, all under declaration of emergency. Unreal

    2. “Two neighbors close to where I live have died in sleep so far, don’t know about the other blocks. High compliance in taking the jabs in the neighborhood I live in.”

      At 23:10 of this video Mike Rivero discusses this subject.

      MIKE RIVERO – THURSDAY 8/18/22 – NEWS, ANALYSIS

      https://www.bitchute.com/video/ScEfKkqTGAEq/

    3. I was extended a pretty sweet opportunity at a major cities transportation authority. I never planned on taking it so when I declined and HR asked why I told them it was the mandatory vaccine stipulation.

      Just had to f#ck with them. 🤣

    1. I read recently that the district is closing two elementary and one middle school due to declining enrollment. R2-J is one of lowest funded school districts in the state. Anyway, I don’t plan on staying here once I retire. Once voters repeal TABOR it will be time to say adios.

      1. As a former longtime resident of the “other” L town south of you, you should have left already. It’s all gone, it can’t be saved. The Colorado of 40 years (heck 10 years ago) is gone and it’s never coming back until it falls to the ground.

          1. Out of curiosity, where are you looking to retire? In this country? If so, what state or area?
            If in another country, which?

            I’d like to hook up with good people some year.

          2. Not sure where. I suppose it “depends”. If life in the US becomes unbearable, then perhaps another country, but they also have their problems.

  33. City/County Median Hh Income Median Home Price

    Los Angeles County. $71,500 $846,320
    Los Angeles $65,300 $780,000
    Orange County $94,500 $1,231,000
    San Diego County $82,500 $930,000
    Riverside County $70,700 $625,000

  34. Liz Cheney’s husband is a partner at the law firm defending Hunter Biden

    By Jon Levine
    August 13, 2022

    Wyoming GOP Rep. Liz Cheney’s husband is a partner at the law firm now representing Hunter Biden.

    Philip Perry has worked at Latham & Watkins since 2007, and focuses on white collar cases, commercial and Supreme Court litigation, according to his company biography.

    Another Latham partner, Chris Clark, has been representing Hunter Biden since December 2020 — but Cheney’s husband’s involvement at the firm had not been previously known.

    Latham is a Democratic powerhouse, with company attorneys and other employees donating more than half a million dollars to President Biden’s 2020 campaign, Federal Election Commission records show. Clark himself ponied up $3,800.

    Clark’s work for the first son is prominently displayed on his company profile, which notes his representation of Hunter in a “grand jury investigation regarding tax issues.”

    https://nypost.com/2022/08/13/liz-cheneys-husband-is-a-lawyer-defending-hunter-biden/

  35. The FBI division overseeing the investigation of former President Trump’s handling of classified material at his Mar-a-Lago residence is also a focus of Special Counsel John Durham’s investigation of the bureau’s alleged abuses of power and political bias during its years-long Russiagate probe of Trump.

    The FBI’s nine-hour, 30-agent raid of the former president’s Florida estate is part of a counterintelligence case run out of Washington—not Miami, as has been widely reported—according to FBI case documents and sources with knowledge of the matter. The bureau’s counterintelligence division led the 2016–2017 Russia “collusion” investigation of Trump, codenamed “Crossfire Hurricane.”

    Although the former head of Crossfire Hurricane, Peter Strzok, was fired after the disclosure of his vitriolic anti-Trump tweets, several members of his team remain working in the counterintelligence unit, the sources say, even though they are under active investigation by both Durham and the bureau’s disciplinary arm, the Office of Professional Responsibility. The FBI declined to respond to questions about any role they may be taking in the Mar-a-Lago case.

    In addition, a key member of the Crossfire team—Supervisory Intelligence Analyst Brian Auten—has continued to be involved in politically sensitive investigations, including the ongoing federal probe of potentially incriminating content found on the abandoned laptop of President Biden’s son Hunter Biden, according to recent correspondence between the Senate Judiciary Committee and FBI Director Christopher Wray. FBI whistleblowers have alleged that Auten tried to falsely discredit derogatory evidence against Hunter Biden during the 2020 campaign by labeling it Russian “disinformation,” an assessment that caused investigative activity to cease.

    Auten has been allowed to work on sensitive cases even though he has been under internal investigation since 2019, when Justice Department Inspector General Michael Horowitz referred him for disciplinary review for his role in vetting a Hillary Clinton campaign-funded dossier used by the FBI to obtain a series of wiretap warrants to spy on former Trump campaign adviser Carter Page. Horowitz singled out Auten for cutting a number of corners in the verification process and even allowing information he knew to be incorrect slip into warrant affidavits and mislead the Foreign Intelligence Surveillance Act court.

    https://www.theepochtimes.com/fbi-unit-leading-mar-a-lago-probe-earlier-ran-discredited-trump-russia-investigation_4675803.html

    1. FBI Agent Pleads Guilty to Destroying Evidence Relevant to Case Against Pro-Trump State Senator

      by Cullen McCue | National File
      August 19th 2022, 4:10 pm

      On August 17, Former FBI Special Agent Robert Cessario signed a plea agreement in which he admitted to paying a business to permanently erase data from his hard drive so that forensic examiners could not analyze its contents. The wiped data was relevant to the corruption trial of former Arkansas State Senator Jon Woods, who was convicted of mail and wire fraud in 2018.

      Cessario admitted in the plea agreement that he had erased the contents of the hard drive while being fully aware that a court had ordered the laptop to be submitted to an FBI field office in Little Rock for forensic examination. Also in the plea agreement, Cessario admitted that he intended to make “the contents of the computer’s hard unavailable for forensic examination.”

      In addition, the former FBI special agent stated that he knew “the contents of the hard drive were relevant to an official proceeding, that is, Cause No. 5:17-CR-50010, United States v. Woods et al.”

      https://www.infowars.com/posts/fbi-agent-pleads-guilty-to-destroying-evidence-relevant-to-case-against-pro-trump-state-senator/

    1. Meaning they’re going to eat their losses and pretend they don’t exist because they’re spread out over decades.

      Foolish Debt Donkeys.

  37. Clutch those pearls harder, Real Journalists.

    The Guardian — ‘Most have thrown their hands up’: has the US forgotten about Covid?

    “as Americans and many of their elected officials go about their daily lives, many healthcare professionals still on the frontlines of the pandemic and severely affected Covid-19 patients are left wondering whether the rest of us are moving too quickly from the worst days of the pandemic.”

    https://www.theguardian.com/us-news/2022/aug/19/us-covid-cases-mandates-deaths

    Greatest FRAUD of my lifetime.

    1. are left wondering whether the rest of us are moving too quickly from the worst days of the pandemic

      I recall that a sizeable portion of the British populace (40%?) were in favor of perpetual masking.

  39. The dark side of Utah’s surging home values: An ‘unprecedented’ tax burden
    Home values have risen historically fast — landing Utah homeowners with unusually high 2022 property tax bills
    By Katie McKellar
    Aug 9, 2022, 8:00pm PDT
    Related
    – 2021: The year of the ‘shocking’ home price
    – Step inside the West’s ‘insane’ housing market

    Justin Cox, 11, chases his sister, Ruth, 9, during a game of tag in their backyard in Lindon on Saturday, Aug. 6, 2022. Rising property values in Utah have led to property tax hikes as well.
    Ben B. Braun, Deseret News

    For homeowners in Utah, it’s no typical tax year.

    Usually, under the state’s truth in taxation laws, if property values all increase at the same pace, homeowners won’t notice much of a difference on their yearly property tax bill — unless they’re facing a tax hike.

    But this year, in the wake of 2021 — the year of relentless and shocking home price increases as the West and the nation’s housing market went haywire — is like no other.

    County assessors say they’ve never seen a year like it. And since they’re required by the Utah Constitution to assess home values based on market value, they’re aware of the sticker shock hitting Utah homeowners when they open their property tax notices.

    “We sympathize with them,” Tooele County Assessor Jake Parkinson said. “It’s unprecedented to see an increase not necessarily because of (proposed tax hikes), but because of your value going up and your piece of the property tax pie getting bigger is frustrating to taxpayers.”

    This year, it’s a double whammy. On top of tax rate hikes 90 taxing entities across the state are seeking, homeowners are indeed seeing unusually high increases to their property taxes — to the tune of hundreds of dollars a year.

    Seth Cox is one of them.

    Ruth Cox, 9, helps her father, Seth Cox, roll up a tent that was left out to dry in front of their house in Lindon on Saturday, Aug. 6, 2022.
    Ben B. Braun, Deseret News

    When he opened his email to view his 2022 property tax notice for his Lindon home, the number slapped him in the face. And yet, fully tuned into the direction of Utah’s housing market over the past several years, Cox said he knew, with dread, the dollar amount was probably correct.

    “Everybody’s seen home values go up like crazy,” he said.

    Cox’s property tax notice showed his home’s full market value went from $624,900 in 2021 to $939,700 this year. As a homeowner, seeing property values go up is mostly a good thing. Anyone would welcome that return on investment — especially in just one year.

    But there’s an unmistakable downside, especially if you’re not planning to sell.

    Even without a proposed 24% property tax increase the Central Utah Water Conservancy District is seeking, Cox’s yearly property tax is set to go from $3,240 in 2021 to almost $3,868 this year — a $628 difference. If the tax hike passes, he’d be facing about $207 more a year, with a yearly tax bill of over $4,040.

    Ouch.

    “It’s going to make my mortgage payment go up,” Cox said with a sigh. As web developer, Cox said he’s got a healthy and steady income — but that’s a steep hike that his family’s household budget will have to absorb.

    “I don’t think we’ll be in dire straits because of this,” he said, but added it comes at a time when record U.S. inflation is a “bigger concern for me more than anything.”

    “It’s one more thing, you know,” Cox said. “What’s going to be the straw that breaks the camel’s back? I don’t know. But it’s just one more thing that keeps getting piled on top.”

    Cox added he can’t imagine how these property tax increases are impacting families on tight budgets — especially retirees on fixed incomes who bought their homes decades ago and likely never fathomed that their home values or property taxes would reach such heights in such a short time period.

    “It’s going to hurt everybody,” he said.
    …
    https://www.deseret.com/2022/8/9/23282992/housing-market-dark-side-utah-surging-home-values-unprecedented-tax-burden-property-taxes

      1. Hey Prof Bear ; if the ongoing costs of my rentals go up, I am not going to eat the additional costs, they will go on to the residents of my units, if not next month, then at the renewal of the rental agreement. This is not a charity organization; we are in it for long term appreciation. But then again, it is interesting when I read all the opinions of the liberal-left leaning-communist loving socialists who are under the impression that they should be given everything just because they are taking up space on this earth. If you like to eat, you need to learn to like to work and provide for yourselves. Amazing how we see more and more useful idiots.

    2. With an irresponsible fed blowing bubbles around the country it seems like property taxes should be weighted by other factors, e.g., area median household income for example. Stable productive families should be a government goal.

Comments are closed.