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New Home Sales Crater!!

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  1. From the first 10:31 video:

    How Much Trouble is There for New Home Builders in Georgia?
    Premiered Aug 20, 2022 Builder Incentives? No more bidding processes? A lot has changed with new construction from just a few months ago just like it has changed with resale homes due to the market shift with interest rates rising. New construction buying now presents new opportunities!

    Just 6 months ago, the housing market in Georgia was on fire. On homes that sold, we were experiencing multiple offers over asking price of $50K to $75K with no financing or appraisal contingencies with 2% earnest money and sometimes even no due diligence period (inspection)!

    Fast forward to a few months later to now, and we are seeing a market shift right before our eyes that is night and day difference from earlier this year! Now, inventory is increasing, homes are staying on the market longer, more price reductions are happening, and seller concessions are more abundant.

    The second 3 minute video:

    China’s housing crisis: People living in unfinished buildings share their stories
    Spotlight on China
    Aug 20, 2022 For decades, buying property was considered a safe investment in China. As a result, many Chinese people have spent their whole life savings buying a house. Some even borrowed money from friends and relatives to do so.

    But now, what many are waiting for is not a dream home but a block of unfinished buildings, also known as “rotten-tail buildings.”

    The third 3 minute video:

    Las Vegas New Home Prices Drop | New Home Builders Reduce Prices
    Steve Hawks
    784 subscribers
    4
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    46 views Aug 20, 2022 Las Vegas New Home Prices Drop
    Builders Reduce Prices
    The Feds Fury Hits New Homes
    The Feds Great Housing Reset
    Hits New Homes Hard! 🏡

    New Home Builder Sales Crater
    New Home Values Collapse
    Home Buyers Catch A Break
    New Home Median Price

    90 Day Rout
    APRIL $457,000
    MAY $444,000
    JUNE $402,000
    Cancelations Spike

    Builders Reduce Prices in Escrow to Reduce Cancelations
    200 people waiting list has turned into 30 day move in builders buy down rates.

    Builders Scarred From 2008
    Slash Future Home Production
    We are close to a new home price in Las Vegas dropping 20% from March values.

    When you take into account the incentives builders are paying,the higher commissions and free upgrades. Easily 20%
    But the biggest price reduction was those astronomical lot premiums they don’t exist anymore.

    Magician 🎩 Jerome Powell went poof and lot premiums disappeared!
    You can’t just look at the pricing sheet. Builders were very smart this time they didn’t make massive price increases on the pricing sheet.
    Many of them added astronomical lot premiums.
    Some as much as $500,000 plus.
    If you really want to see how much the new home builders have dropped the prices you look on the tax records.
    Builders are dropping prices in escrow to prevent further cancelation spikes.

    In fact locally one builder reduced prices and also amended the contract to reflect the new values.
    Another builder accidentally sent out the new pricing and the new incentives in a mass email to all of the database including the people that are in escrow! 😆

    This builder didn’t want to honor it and and many of the buyers canceled! Duh!
    Last time something similar happened the builders raised
    commissions to 5 to 10% and that prolonged the new home boom for about 18 months.

    But this time It’s not working because the buyers can actually compare the price of a new home to resales and other new homes on portals.
    Buyers are not gonna get duped and overpay like they did in 2008.
    Back then consumers couldn’t check the value of the new homes so they just trusted the realtors and builders and those 10% commissions made it difficult for agents to say it was not a good deal.

    Many buyers had no idea their agents were getting a $50,000 commission in a 500,000 home!

    The last 9 minute video:

    Yonge & Eglinton Condo Prices Are DOWN – Toronto Condo Market Update!
    Aug 21, 2022 That’s right, in this video i take a look at Yonge & Eglinton Condo Prices. During peak market in March of 2022, Yonge & Eglinton Condo prices were quite high, but since march of 2022, Yonge & Eglinton Condo Prices have fallen more than other areas within Toronto Condo Market and Greater Toronto Condo Market.

  2. Owners Of 930K SF Financial District Office Building In Default On Loan

    The owners of an office property in Manhattan’s Financial District have defaulted on their loan after losing several tenants.

    Savanna and Pacific Oak Capital own 110 William St., but were told by their lender in June that they are now in default after failing to make payments on their loan, according to a Pacific Oak Securities and Exchange Commission filing submitted this week. The company said it is in negotiations on a loan extension with Savanna and its lender.

    The Lower Manhattan office market has the highest availability rate in the city, as companies reassess and recalibrate their space needs. Manhattan availability is at 17%, while Downtown is at over 20%, according to Colliers. Leasing in the city was showing signs of recovery in the second quarter of the year, but is still below pre-pandemic figures.

    https://www.bisnow.com/new-york/news/office/savanna-pacific-oak-capital-default-on-fidi-office-building-114409

  3. ‘As the war reaches the six-month mark on Aug. 24, the refugee crisis has changed dramatically and much of the early support has vanished. The number of Ukrainians leaving their country has fallen sharply and there’s no longer a global sense of urgency.’

    “It seems that people are not prepared to continually help others in need of support over the long term,” the researchers said.’

    “In the first month it was really something beautiful. I met a lot of people from Poland, from different countries who came here to help,” said Laura Skibinska, 19, who has Ukrainian roots and helps refugees at the train station. “At some point, it started to not be so-popular topic. And everyone was tired of it and didn’t want to hear about it.”

    https://www.theglobeandmail.com/world/article-ukraine-poland-refugee-crisis/

    1. “At some point, it started to not be so-popular topic. And everyone was tired of it and didn’t want to hear about it.”

      They were all told that sanctions would bring Russia to its knees within weeks and that it would quickly be over. Now everyone is worried about how they will heat their home this winter or keep the lights on without Russian gas.

      Will Europe throw in the towel when the first flurries begin to fly, or will their enlightened leaders tell the people to freeze for Ukraine?

  4. Down and out in Xi Jinping’s China: the human toll of the world’s biggest property crisis
    The Australian|1 day ago
    Li Daqing is what people in China call a fangnu, or mortgage slave. Right now he and millions of indebted Chinese property owners are in a lot of trouble.

    1. Mortgage slave
      From Wikipedia, the free encyclopedia

      Mortgage slave (Chinese: 房奴; pinyin: fángnú) is a term used for homeowners in China who spend more than 70% of their disposable income towards repaying mortgage loans. Continually rising real estate prices and high incentives for home ownership have encouraged restrictive loans to those wishing to own a residence, but lacking the required wealth. The resulting loans have had a deteriorative effect on the indebted, who are left with little money to invest or otherwise improve their financial position and standard of living.

      Housing demand in urban China has greatly increased. Export-oriented economy and educational opportunities in Chinese cities have accelerated the country’s urbanization, as have cities with available public goods limiting their access to residents who have purchased and registered real estate. Further raising the demand are distrust in the country’s social safety net, cultural expectation for long-term residences, and “poor public housing implementation”[1] that has left affordable housing hard to find. An inflated industry increases GDP statistics, the primary criteria for promoting public officials, which promotes governmental inaction. Real estate companies, banks, the government, and already-established urban residents have indirectly increased prices by speculating on the booming market.

      Because most of their disposable income is spent repaying the loan, mortgage slaves have an extremely tight budget. They have little or no money left for increasing their wealth through investment, which leaves them chained to the loans for long periods of time, or for consumption, which pushes down their standard of living, social standing, and personal development as well as the country’s consumer economy.

      In the NPC and CPPCC sessions since 2010,[2] the housing issue has become one of the most commonly discussed topics. Current or planned regulations to bring housing prices to a more manageable level include increasing the down payment of the land grant fee[3] for real estate companies, increasing the down payment of those who purchase a second real estate property, and increasing the interest rate[4] to curb excessive speculation on the real estate market. Others concern the fundamental well-being[5][6] of the entire Chinese people, such as through improving income distribution by tax leverage, the social security system for both rural and urban residents,[7] and the economic development model.[8]

      2. Most Young Chinese Want to Buy a Home Before Marriage But Men Should Bear the Cost, Report Says

        https://www.yicaiglobal.com/news/most-young-chinese-want-to-buy-a-home-before-marriage-but-men-should-bear-the-cost-report-says

        (snip)

        “Over 60 percent of young Chinese prefer to buy a home before settling down, but less than 40 percent of women would be willing to contribute to the cost, according to a recent survey.

        “Some 64.1 percent of respondents said that real estate is a must have before marriage, according to a report released by China’s largest online classified advertising site 58.Com and real estate data platform Anjuke yesterday.

        “Having a home before marriage would be the ideal scenario for 80.9 percent of people, as it brings a sense of security, the report said. Around 20 percent said they must have a house and car before marrying.

        “However, only 37.3 percent of women said they would be willing to contribute to the cost of the house purchase, the report said.”

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