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New Build Market Will Be The First To Crash

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https://www.youtube.com/watch?v=IRp4l0cLKA8 https://www.youtube.com/watch?v=WjeoY95e4cI https://www.youtube.com/watch?v=ykNCEQF-pEE https://www.youtube.com/watch?v=9Dp798KPP5s https://www.youtube.com/watch?v=fzf4vd6XyJU https://www.youtube.com/watch?v=-5oc91HFdtw https://www.youtube.com/watch?v=qdAXZ65ac70

This Post Has 28 Comments

  1. The first 3:18 video:

    Here’s a Temecula Market Update! | October 17th Temecula Market Update
    Tyson Robinson
    Oct 18, 2022 Here’s a Temecula Market Update! As the market shifts, we need to shift with it!

    The second 14:31 video:

    This Housing market will be First to Collapse! (In trouble!)
    Yak Motley
    Oct 18, 2022 I believe the new build market is ready to crash . It will be the first to crash in Real Estate.

    Here are my thoughts on the upcoming Real Estate Crash! The New Build housing market is in trouble.

    If you are looking to buy or sell Real Estate on the Gulf coast of Florida or Alabama email me-

    The third 3:44 video:

    ORLANDO REAL ESTATE MARKET UPDATE | OCTOBER 2022 | CENTRAL FLORIDA REAL ESTATE | HOUSING IN ORLANDO
    Kristin Duncan-Real Estate Agent
    Oct 18, 2022 The only thing constant in real estate is change. Take a look at what is happening in the Orlando real estate market and how it is continually shifting. From interest rates to housing prices, we’ve got you covered on what you need to know when it comes to Central Florida real estate.

    The last 14:16 video:

    What’s Protecting Home Prices In Brampton, Mississauga & Durham Real Estate?
    Team Sessa Real Estate
    Oct 19, 2022

    Brampton, Mississauga, Ajax, Whitby, Pickering Real Estate Market Report for the week of Oct 6 – Oct 12, 2022.

  2. The number of homes sold last month fell 25% year-over-year, and new listings fell 22%, Redfin disclosed. Those were the biggest decreases on record with the exception of the early months of the pandemic, Redfin said.

    “The U.S. housing market is at another standstill, but the driving forces are completely different from those that triggered the standstill at the start of the pandemic,” Redfin economics research lead Chen Zhao said in a statement.

    Redfin said roughly 60,000 deals were called off last month, or around 17% of homes that went under contract during the month. That’s the highest share on record aside from March 2020, the company said.

    Shares of Redfin dropped 8.8% in Wednesday trading to a low of $3.98 — the lowest intraday price on record since the stock began trading in 2017. Redfin stock is down around 90% so far this year.

    https://www.msn.com/en-us/money/realestate/redfin-details-a-housing-market-e2-80-98standstill-e2-80-99-and-its-stock-sinks-to-all-time-low/ar-AA139A0t

    1. Redfin stock is down around 90% so far this year.
      I knew Mortgage people and real estate agents were going to get their earning erased or at least drastically cut (foreclosures coming?) but even though I worked in the business and worked with companies like Blend I didn’t realize until recently the amount of FTE damage that would be done to Mortgage “side” business Like Redfin and others. Lots and lots of Mortgage “tech” companies laying off. That is a lot of highly paid people looking for new jobs.
      Still UE claims remain low.

      1. “Lots and lots of Mortgage “tech” companies laying off. That is a lot of highly paid people looking for new jobs.”

        There’s always fluffers needed in Chatsworth, CA.

  3. Developers of one of the biggest projects in Los Angeles, Downtown’s Angels Landing, say they can no longer work with the council member representing the area and called for his resignation after hearing him on leaked audio that has caused a massive scandal at City Hall and across the city.

    “As the developers of Angels Landing, we cannot, in good conscience, go forward and work with Council Member Kevin de León on the Angels Landing project and call for his immediate resignation from the Los Angeles City Council,” The Peebles Corp. CEO R. Donahue Peebles and MacFarlane Partners CEO Victor MacFarlane wrote in an Oct. 14 letter submitted to then-acting City Council President Mitch O’Farrell and obtained by Bisnow.

    “We don’t deal with racists,” MacFarlane, who is Black, told The Real Deal. “So we are not going to interface with Kevin de León, period.”

    The developers of the $2B project said that they felt unsupported by de León over the last two years that he has been in office. In that time, MacFarlane and Peebles said de León only met with them once for about 15 minutes prior to a press conference about the project.

    “Despite the importance of a project like Angels Landing, which would deliver thousands of jobs to Los Angeles and has the highest commitment to economic diversity in Los Angeles’ history, we believe the Council Member, due to our sponsorship, was unwilling to work with us to move forward with the project,” the letter says.

    De León contested the accusation.

    “Absolutely, unequivocally, no,” Pete Brown, de León’s communications director, told The Real Deal.

    In a statement provided to TRD, Brown said the project’s delays were caused by the developers’ “inability to provide a proposal that meets the standards of the City of Los Angeles and the California Redevelopment Agency.”

    “Despite this deeply cynical ploy to give themselves a favorable advantage in negotiations, the council office is committed to continue to work with other city offices toward an agreement that brings a mixed-use project to this long vacant site,” Brown said.

    https://www.bisnow.com/los-angeles/news/construction-development/angels-landing-kevin-de-leon-115931

    1. The Dems are calling in every favor they can to pressure the Mexicans on LA City Council to resign, and no doubt be replaced by a different demographic.

  4. After some seven years of planning, developers have abandoned their efforts to build a six-story apartment complex on the corner of Oak and Divisadero Streets — the site of the former Touchless Car Wash and gas station.

    What’s happening: The proposed 186-unit building — 20% of which was slated to be below market rate — would have been “by far the largest residential project on Divisadero Street or in the Lower Haight neighborhood,” the SF Chronicle’s J.K. Dineen reported when the city’s planning commission approved the project in 2019.

    Rising construction costs and a weakening rental market in San Francisco were cited last November as reasons for building delays, though the developer, Genesis Living, did not respond to Axios’ questions regarding their plans falling through.

    https://www.axios.com/local/san-francisco/2022/10/19/divisadero-housing-project-falls-through

  5. “[The market] is certainly more balanced in the sense that buyers can spend some time looking at houses because they know it’s going to be there for an extra day or two,” said Ryan Haarer, a real estate agent and partner at Haarer & Joseph in Denver.

    Despite the total number of home sales declining by 25%, it is not uniform and depends on where you live.

    In Denver, home sales have fallen 74% over the last year, according to Redfin. In Phoenix, they have fallen 67%, but in Detroit, home sales have only fallen 1%.

    “For every 1% increase in interest rates, you lose about 10% of your buying power,” said Haarer. “So, I had a lot of people who were in the market 6 months ago wanting to buy a home, let’s say they were preapproved for $500,000, if their rate went up 1%, they’re now preapproved for just $450,000.”

    https://www.katc.com/news/national/new-real-estate-data-to-show-slow-down-in-housing-market

  6. Falling prices. Skyrocketing mortgage rates. Signs of a buyers’ market.

    Sacramento’s real estate market has done a 180 since the spring. Gone are the days of intense bidding wars that let sellers sit back and watch the offers come in. Now, suddenly, buyers seem to have the upper hand and there are more homes on the market than there have been in years.

    https://www.msn.com/en-us/money/realestate/live-q-26a-advice-for-buyers-in-sacramento-e2-80-99s-topsy-turvy-housing-market-rsvp-now/ar-AA139xAH

    1. Comment in video from I buyers:
      “We not worried about losing money on selling the house as long as we are positive over all.” Losing $100K on selling a home and still making a profit? How?

  9. Eleven people were killed in U.S. crashes involving vehicles that were using automated driving systems during a four-month period this year, according to newly released government data, part of an alarming pattern of incidents linked to the technology.

    Ten of the deaths involved vehicles made by Tesla, although it is unclear from the National Highway Traffic Safety Administration’s data whether the technology itself was at fault or whether driver error might have been responsible.

    The 11th death involved a Ford pickup. The automaker said it has to report fatal crashes to the government quickly, but it later determined that the truck was not equipped with its partially automated driving system.

    https://www.latimes.com/business/story/2022-10-18/11-more-crash-deaths-are-linked-to-automated-tech-vehicles

    1. I thought al cars were going to be self driving by now.

      Whenever I see a Tesla on the road, I steer clear of it.

  10. King County officials rushed to bring the homeless to an “air-quality center” because it’s unhealthy to breathe the smoky air. Yet, these same officials enable the homeless to live in human waste and to smoke fentanyl or meth. This is backward thinking.

    Homeless addicts openly smoke fentanyl and meth on sidewalks, in alleyways, at parks, and in their illegal encampments. Rather than treat the addiction, county officials adopt a “harm reduction model” that gives drug paraphernalia to the addicts and space to smoke consequence-free.

    Fentanyl and meth smoke is given the thumbs up without any pressure to quit. But smoky air is a burden requiring urgent shelter space. What a joke.

    https://mynorthwest.com/3676600/rantz-activists-smoky-air-hurts-homeless-not-fentanyl-meth/

    1. I didn’t ride my bicycle yesterday because of wildfire smoke. Our sunrise was red and visibility was drastically reduced, but the Seattle, Tacoma and Bellingham corridor was much worse off.

    2. Fentanyl and meth smoke is given the thumbs up without any pressure to quit. But smoky air is a burden requiring urgent shelter space. What a joke.

      More evidence that we are living in Heinlein’s Crazy Years

      What is really scary about having crazy people in charge is that they think they can win nuclear wars.

  11. Seven in 10 Oakland residents feel less safe than they did two years ago. The main concern is crime. “Criminals are hitting retail businesses. They are coming in. They are taking cash, they are taking property. Second, people are afraid to come downtown. People are afraid to be out on the streets,” said Zack Wasserman, Oakland Chamber of Commerce’s board president.

    We went to downtown Oakland to hear from residents firsthand.

    Luz Pena: “How would you describe the state of Oakland right now?”

    Smith: “Not good. Not good.”

    Darshellia Butler was born and raised in Oakland. She’s noticed a concerning shift in the last three years.

    MORE: Oakland gun violence continues to rise despite new efforts to combat it

    “The blatant ongoing crime that wasn’t here when I was a teenager or even as an adult growing up. The excessive use of drugs,” said Butler.

    https://www.msn.com/en-us/news/us/7-in-10-oakland-residents-feel-less-safe-than-they-did-2-years-ago-survey-shows/ar-AA13ae98

    Wa happened to my weather?

  12. National Bank analyst Jaeme Gloyn and associate Julia Gul said the new commentary reinforced the bank’s cautious stance on the residential mortgage sector.

    “Mortgage borrowers are increasingly leveraged and rising interest rates only increase the debt service burden on these borrowers,” Gloyn and Gul wrote in an Oct. 18 note. “Combined with eroding homeowners’ equity as house prices correct, this environment could lead to higher-than-expected losses at OSFI-regulated lenders.”

    National Bank added it did not expect the regulator to loosen its underwriting guidelines in the near term. Analysts also pointed to mounting policy uncertainty, an aggressive path of rate hikes and housing market risk as challenges on the horizon for the sector.

    “We could see the impact of ‘payment shocks’ on renewing borrowers’ flow-through credit performance, assuming borrowers face difficulty servicing a higher mortgage payment,” the note read. “For borrowers that received their mortgage in Q3 2021, we estimate a $1,000 increase in monthly mortgage payments. These higher mortgage payments, alongside other inflationary pressures (e.g., food, fuel), could stress borrowers’ ability to pay.”

    Gloyn and Gul estimate Home Capital Group Inc. borrowers could be facing up to a $1,190 boost in their monthly payments over the next year as 66 per cent of these mortgage holders will need to renew. While Equitable Group Inc. does not provide the disclosures necessary to conduct a similar analysis, the bank said it was safe to assume similar outcomes for EQ Bank.

    https://finance.yahoo.com/news/osfi-keeping-close-watch-mortgage-195955567.html

    1. “Mortgage borrowers are increasingly leveraged and rising interest rates only increase the debt service burden on these borrowers,” Gloyn and Gul wrote in an Oct. 18 note.

      Should have put 20% down and get a conforming mortgage.

  13. A global house-price slump is coming
    The Economist|49 minutes ago
    Although this will not detonate global banks as in 2007-09, it will intensify the downturn, leave a cohort of people with wrecked finances and start a political storm. The cause of the crunch is soaring interest rates: in America prospective buyers have been watching,

    White-label brokerage Side confirms new round of layoffs
    The Real Deal|13 hours ago
    Side, a venture-backed white-label brokerage that has teamed up with some of the biggest residential dealmakers, just conducted a new round of layoffs, The Real Deal has learned.

    Fitch downgrades two nonbank lenders, sets negative outlook for four
    HousingWire|10 hours ago
    Fitch ratings revised its credit ratings for Finance of America, Freedom Mortgage, Provident Funding, Home Point Capital and UWM. Here’s the outlook for the nonbanks.

    Banks face surge in bad debt as mortgage costs jump £52bn
    The Daily Telegraph|17 hours ago
    Banks are facing a surge in bad debts as rising interest rates saddle homeowners with more than £50bn of added mortgage payments, an analyst has warned.

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