It's Friday desk clearing time for this blogger. "Ada County’s median home price last month…
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From the first 12 minute video:
Can’t Afford To Sell My Home In Brampton, Mississauga & Durham Real Estate – Oct 19
Team Sessa Real Estate
10,217 views
Brampton, Mississauga, Ajax, Whitby, Pickering Real Estate Market Report for the week of Oct 13 – Oct 19, 2022.
The second 8 minute video:
Seller Denial The Housing Market ‘Is Crashing’
Maiyah Jimenez Los Angeles
Oct 26, 2022 Some experts speculate that the housing market is crashing. As the prices are dropping by as much as 20%, are sellers in denial about the price of their homes? Find out what this all really means and how it affects you!
The third 6 minute video:
THE SKY IS FALLING IN BOISE | Boise Market Update
Oct 26, 2022 Is the sky falling in the Boise housing market?
Ronald W. Hatch
The fourth 3:27 video:
#realestatesuccess #realestatecoaching #floridarealestate
Some Will Win, Some Will Lose
Helping Agents Succeed with Kim Dowling
Oct 26, 2022 It’s time to move my friends, and it’s time to move fast!
I’m hoping you make the decision to bet on yourself and do the hard work. That’s what we are doing here at our company. I’m going to make sure every single agent understands the reality of what we are facing so they are geared up and ready to go.
Some agents will win, and some agents will lose. What about you?
Our real estate market has changed. The Federal Reserve wanted to slow the housing market down and they have absolutely succeeded. We are not going to wake up to an immediate market crash – your business does not have to fall off a cliff, but clearly, things have changed.
To be the best, you must be able to handle the worst.
It’s going to be scary, and it’s not going to be easy, but you deserve success. If you learn what moves to make now … if you dig in and learn how to become resilient to not just stay in the game but to climb to the top … this next 2 – 3 year period could be one of the most lucrative of your career.
Markets change. They go on wild rides, and then they slow down. Markets tend to overcorrect and hit the brakes hard, and then they go on another run. I’ve done this for 30 years, it’s normal. It’s a cycle that is never-ending.
What I know, and what I want to share with you today, is that when everything around you constricts and slows, you don’t hang out in the corner. You fire up and move.
That’s the solution. We do more, we get better, we get into action, and we make sure that we are ready to serve the families that need us now more than ever.
The last 4:35 video:
George Gammon: Housing Crash And Secret Influences On Fed
Rebel Capitalist
Oct 26, 2022
Virginia Beach mortgage banker Robby Dobrinksy says rapidly increasing interest rates and inflation are creating challenges for buyers.
“It just prices them way out of the market, because homes that were $150,000 a year and a half ago are now $225,000 to $250,000, and that person who just graduated college wants to get their first starter home now and can’t qualify for that anymore,” Dobrinsky said.
So what’s the “good news” for buyers? Sessions says that here in Hampton Roads, there’s actually more opportunity in the current market.
“We have seen a little more inventory in the area, so you have a little more time to get out and see the homes before they’re gone,” she said.
Troy Jones, a broker with Coldwell Banker Sea Coast Advantage, said there are multiple factors that can contribute to the jump.
“Part of it, you know, interest rates obviously are slowing things down a bit,” Jones said. “Again, we were at a really low point where we had such low inventory it was hard to find anything. So now we’re able to get back to a much normal range where buyers are able to find inventory.”
The time spent for single-family homes and condos to be listed on the market have all gone up. Myrtle Beach had the highest number of single-family units on the market until final sale at 121 days.
Jones said the biggest factor of this is expectations of the buyers and sellers.
“I think expectations have been off for the last year or two because of the way the market has just exploded,” Jones said. “So right now the market is just leveling back out, it’s normalizing, and we’re getting back to more of a range that you would expect things to be.”
While median sale prices of single-family homes have skyrocketed — jumping 29% in Carolina Forest — it’s the price of condos that are having the biggest increase at close to 56%.
As profits fall 50%, Anywhere looks to cut commissions
The Real Deal|16 hours ago
A challenging housing market halved Anywhere’s third-quarter profits … after strong quarter Sales were constrained by rising interest rates and a shortage of inventory, which contributed to a nearly $380 million drop in Anywhere’s revenues compared …
Columbus remains one of the hottest real estate markets in the country despite record-high mortgage rates. “We’re really normalizing. It’s not that it’s a crisis or a crash or a shift,” said Kim Mills of Cutler Real Estate. “You can put skin in the game as a buyer a little bit easier than you could let’s say six to nine months ago.”
For sellers, you may have to put in more work to get your home off the market.
“We’re seeing sellers having to contribute to that we haven’t seen in two years,” said Shaun Simpson of Cutler Real Estate and the Columbus Realtors Board of Directors. “I just had a radon test come back and I haven’t had a client have to put in a radon mitigation system in two years.”
As homes are on the market longer — the average sale price is starting to dip.
Last week, the 30-year was at 6.94%. Last year, the 30-year was averaging at 3.14%
The average rate on the 15-year mortgage rose to 6.36%.
The 30-year broke 7% for the first time since April 2002, Sam Khater, chief economist at Freddie Mac, said in a statement, “leading to greater stagnation in the housing market.”
Khater added that consumer confidence is weakening, and that many buyers are choosing to wait to see where the market will go, “pushing demand and home prices further downward.”
The adjustable-rate mortgage averaged 5.96%, up from the prior week.
Mortgage demand, meanwhile, has sunk to the lowest level in 25 years, Mortgage Bankers Association said on Wednesday.
The yield on the 10-year Treasury note was above 4% in morning trading on Thursday.
Zillow Group Inc. confirmed more layoffs Wednesday, as the real-estate services company grapples with a slowdown in the housing market. Bloomberg News reported Wednesday that Zillow laid off 300 employees, or about 5% of its workforce. Zillow confirmed the cuts in an email to MarketWatch.
Earlier this year, Zillow said it expected to cut its workforce by 25% this year as it unwound its disastrous home-buying business.
Zillow isn’t the only real-estate company to cut staff recently; rival Redfin laid off nearly 500 employees in June, and online real-estate brokerage Compass Inc. announced it would cut about 450 jobs, or 10% of its workforce, in September.
Zillow stock has been slammed this year, with Class A shares tumbling 51% and Class C shares off 52%, compared to the S&P 500’s roughly 20% loss in 2022.
Office usage has remained depressed in San Francisco for so long that city officials are trying to get a grasp on the severity of the problem and formulate a plan for how to manage the shifting landscape of the city’s commercial activity going forward.
A new report from the city of San Francisco called The Persistence of Pandemic-Era Remote Work lays out familiar data about the return-to-work effort, or lack thereof, and signals a first step by the city to deal with the longer-term implications of the trend.
The report serves as a response to a letter of inquiry about the state of commercial real estate demand in the city from Supervisor Catherine Stefani.
In comments to the San Francisco Standard, city Chief Economist Ted Egan referred to the rigidness of remote work as a “major shock.”
“We wanted to make decision-makers know that we in the controller’s office are aware of this phenomenon,” Egan told the S.F. Standard. “We don’t think that everyone’s going to go back to work.”
The report highlights JLL’s longer-term office vacancy forecast for the city, which projects vacancy rates between 19.5% and 25.3% to persist into 2026.
“If vacancy rates remain at this elevated level, and a large share of these are direct vacancies, then the income, and market value, of office buildings in the city are likely to be negatively affected,” the report says.
The prospects for the future of office cap rates in the report are sobering, painting a potentially grim picture for the city’s property values should current trends continue.
“Additionally, since 2019, the spread between San Francisco office capitalization rates (as measured by the median rate of reported transactions), and 10-year [Treasuries] has widened, according to Moody’s Analytics,” the report says. “If that spread persists until 2028, and the Blue Chip forecasts for the 10-year yield are accurate, San Francisco office capitalization rates will sit in the 7% – 8% range between now and 2028, instead of the 5% – 6% range that prevailed during most of the 2010s. The market value of office buildings would decline proportionately.”
“The prospects for the future of office cap rates in the report are sobering, painting a potentially grim picture for the city’s property values should current trends continue.”
And the Generation Z cohort is the country’s smallest.
It was just last month that rates climbed above 6% for the first time in 14 years. The latest dramatic jump makes a home purchase even more unaffordable and stands to further slow a market already reeling from the rising borrowing costs.
“It’s crazy,” said Tressa Pope, a Los Angeles-area mortgage broker. “Rates rose so rapidly that people weren’t prepared.”
With rates rising so quickly, buyers have had to try to buy homes with values set when money was cheap. Many can’t.
Home sales are plunging across the country and, in some markets, prices are falling, but nowhere near fast enough to balance out the rising interest rates.
In Southern California, prices are now nearly 6% off their peak in May, according to Zillow.
In Los Angeles County specifically, the typical home value, which Zillow defines as the average of the middle third of the market, was $835,546 in September, 6.7% below the peak.
Elon Musk has taken ownership of Twitter Inc with brutal efficiency, firing top executives but providing little clarity over how he will achieve the ambitions he has outlined for the influential social media platform.
“The bird is freed,” he tweeted after he completed his $44 billion acquisition on Thursday, referencing Twitter’s bird logo in an apparent nod to his desire to see the company have fewer limits on content that can be posted.
In a running poll on messaging app Blind about whether Twitter employees will be employed in the company in three months, less that 10% voted “yes.” Of the 266 participants, 38% said “No” and over 55% chose the “popcorn” option.
Musk fired Twitter Chief Executive Parag Agrawal, Chief Financial Officer Ned Segal and legal affairs and policy chief Vijaya Gadde, according to people familiar with the matter. He had accused them of misleading him and Twitter investors over the number of fake accounts on the platform.
Agrawal and Segal were in Twitter’s San Francisco headquarters when the deal closed and were escorted out, the sources added.
In an indication of the challenges ahead, Bollywood actress Kangana Ranaut, who was banned from Twitter last year for violating its rules on hateful and abusive conduct, applauded Musk’s takeover on Instagram and shared requests from fans to have her account restored.
Will Twitter soar like an eagle or cluck like a turkey?
Jim Cramer suggested earlier this year that shares in Facebook parent Meta would go up. Today, he said he’s sorry.
Very sorry.
In early June, the colorful host of CNBC’s Mad Money told investors that Meta shares had “nowhere else to go but up.”
Today, he apologized for his bad call following Meta’s quarterly earnings announcement Wednesday evening, which entailed a disappointing quarterly revenue outlook. On Thursday, Meta shares fell 25%, their biggest one-day drop since February. Investors have pushed the stock down more than 70% this year.
“I made a mistake here. I was wrong. I trusted this management team. That was ill-advised,” Cramer said in a somber tone on CNBC. “The hubris here is extraordinary, and I apologize.”
Some observers joked Cramer’s apology today could be a good sign for Meta shares, as he’s gained such a reputation for getting things wrong that “inverse Cramer” became a meme on Twitter. The idea is that an investor can succeed by listening carefully to what he says and then betting on the exact opposite outcome.
They certainly would have done well by doing the opposite of what he said in early February. Cramer was asked on CNBC about Meta’s poor earnings report at that time and if shares dropping in premarket trading was an “amazing buying opportunity” or “some kind of terrible inflection point.” Cramer answered, “I’m going for the former…I have total faith in Mark Zuckerberg.”
Home prices doubled in 2 years. Wages did not. What did you think would happen? Even with historic low rates a year ago homes were not affordable to most. Now rates of 7.16% and climbing. A $500,000 home with $100,000 down principal and interest payment is $2700. A year ago would have been $1680. In 2023 when rates hit 12% will be $4110. That is not including taxes and insurance which are also increasing greatly. And we are paying how much for milk, eggs, gas?? Home prices will fall 50% or more and rates will stabilize somewhere around 7%. Inventory is still low? Homes listed in Sept 2022 – 732,276. Homes listed Sept 2021 – 576,867. And can always count on the triple D’s.. death, divorce, and debt. But hey, when you are $250k underwater at least you can say you have a 3% interest rate.
Meta Platforms Inc. plunged 25% Thursday, its biggest one-day drop since February, after Chief Executive Officer Mark Zuckerberg asked investors for patience with the social-media giant’s swelling investments in unproven bets at an already-challenging time for digital-advertising companies.
Investors, who have already sent the stock down 71% this year, so far aren’t buying it. The Facebook parent’s market value has collapsed by a whopping $676 billion this year, removing it from the ranks of the 20 largest US companies.
“How investors are feeling right now is that there are just too many experimental bets versus proven bets in the core,” Brent Thill, an analyst at Jefferies LLC, said on the earnings call with Meta executives.
Burn in poverty hell you bashtard. Hey, why don’t you start banning more people? A$$ hat.
“Used retail inventory can be your biggest asset but it also can bite you,” AutoNation Chief Executive Officer Mike Manley said on an earnings call Thursday. “It’s something we need to watch carefully, because wholesale prices haven’t fully come into the retail process. That will happen.”
For rental-car companies, which sell vehicles at the end of their time in the fleet, the bonanza they enjoyed from record used-car prices is coming to an end. Hertz’s profits fell in the third quarter as the value of its rental fleet started depreciating at rates more in line with historic norms.
Hertz’s monthly depreciation costs per vehicle in the US climbed to $198 — up from just $21 in the third quarter of 2021. In more normal markets, depreciation was $250 and $300 monthly a car. That’s a very different story than Hertz had in the first quarter, when the company actually reported a gain on the value of its cars in service.
Let me get this straight. You got accountants that actually marked up yer used cars. And that passed the auditors?
Amazon founder Jeff Bezos could lose as much as $US23 billion after Amazon shares fell dramatically by up to 21 per cent. Bezos’ net worth has already plummeted to the tune of $US58 billion in 2022, as a result of a wider technology stock slump which has hit Amazon hard, along with a slew of other household names within the sector.
Following the latest stock fall, Bezos’ ex-wife MacKenzie Scott – who recently filed for divorce from her second husband, Dan Jewett – is also tipped to lose $US7 billion.
Amazon has been battling a major reduction in online growth this year, after customers reverted back to pre-Covid spending habits. As a result of the slowdown, the world’s biggest online retailer has cut costs, announced a hiring freeze and halted new projects.
Bond Investors Lose $106 Billion in Dismal Year for Credit
“It highlights, once again, the need for investor discipline around deal pricing,” said Maria Staeheli, a senior portfolio manager at Fisch Asset Management. “Recently we have observed a tendency of investors to accept less attractive pricing even on some of the spicier names. We think that’s related to investors fearing they miss out on bear market rallies.”
For some deals, the price drops are so severe that the notes are now trading at what some investors consider to be distressed levels. A sterling-denominated social bond sold by bLend Funding Plc in April has fallen to 72 pence from an issue price of par, while in the US market, a $7 billion 30 year bond sold in March by a unit of AT&T Inc. and Discovery Inc. has slumped to about 69 cents. A JAB Holdings B.V. bond priced in April has lost over a third of its value to 59 cents.
More recent offerings haven’t been immune to the disruption that’s swept global markets. Nearly two-thirds of the 336 investment-grade bonds sold in September and October for which full pricing information is available are already quoted lower than the price they originally sold for, Bloomberg analysis shows.
It’s a grim picture for investors who would typically look to trade out of their existing holdings when a company comes to the market with a new deal. With global financial markets still volatile as central banks fight consumer price inflation and recession risks, conditions are unlikely to improve any time soon. Those firms that need to raise financing are also now facing ever-higher borrowing costs on the public debt markets, as average dollar, euro and sterling high-grade corporate yields have surged this year.
While renters in Toronto are competing neck-and-neck for apartments that keep going up in price, the city’s housing market is in a very different situation that would better be described as “in hot water” than “red-hot.”
The number of residential real estate sales in the GTA has been dropping dramatically for months now, while the number of listings are likewise reaching scary lows, and homes are sitting on the market unsold for way longer, prompting more and more terminated listings.
According to the latest numbers from the Toronto Regional Real Estate Board, the usually extremely high demand for condos in the region has waned, with a whopping 46 per cent fewer sold in the third quarter of this year than during the same time last year.
When looking monthly, other organizations have pegged this as an even more shocking fall: down 89 per cent year-over-year and 84 per cent from the ten-year average, per the Building Industry and Land Development Association (BILD).
Prevu acquires mortgage tech assets of shuttered Reali
HousingWire|15 hours ago
Prevu real estate tech firm wants to expand its digital buying platform to mortgages by offering homebuyers all the services they need in one place.
Dallas, TX Housing Prices Crater 24% YOY On Surging Subprime Mortgage Defaults And Plunging Demand
From the first 12 minute video:
Can’t Afford To Sell My Home In Brampton, Mississauga & Durham Real Estate – Oct 19
Team Sessa Real Estate
10,217 views
Brampton, Mississauga, Ajax, Whitby, Pickering Real Estate Market Report for the week of Oct 13 – Oct 19, 2022.
The second 8 minute video:
Seller Denial The Housing Market ‘Is Crashing’
Maiyah Jimenez Los Angeles
Oct 26, 2022 Some experts speculate that the housing market is crashing. As the prices are dropping by as much as 20%, are sellers in denial about the price of their homes? Find out what this all really means and how it affects you!
The third 6 minute video:
THE SKY IS FALLING IN BOISE | Boise Market Update
Oct 26, 2022 Is the sky falling in the Boise housing market?
Ronald W. Hatch
The fourth 3:27 video:
#realestatesuccess #realestatecoaching #floridarealestate
Some Will Win, Some Will Lose
Helping Agents Succeed with Kim Dowling
Oct 26, 2022 It’s time to move my friends, and it’s time to move fast!
I’m hoping you make the decision to bet on yourself and do the hard work. That’s what we are doing here at our company. I’m going to make sure every single agent understands the reality of what we are facing so they are geared up and ready to go.
Some agents will win, and some agents will lose. What about you?
Our real estate market has changed. The Federal Reserve wanted to slow the housing market down and they have absolutely succeeded. We are not going to wake up to an immediate market crash – your business does not have to fall off a cliff, but clearly, things have changed.
To be the best, you must be able to handle the worst.
It’s going to be scary, and it’s not going to be easy, but you deserve success. If you learn what moves to make now … if you dig in and learn how to become resilient to not just stay in the game but to climb to the top … this next 2 – 3 year period could be one of the most lucrative of your career.
Markets change. They go on wild rides, and then they slow down. Markets tend to overcorrect and hit the brakes hard, and then they go on another run. I’ve done this for 30 years, it’s normal. It’s a cycle that is never-ending.
What I know, and what I want to share with you today, is that when everything around you constricts and slows, you don’t hang out in the corner. You fire up and move.
That’s the solution. We do more, we get better, we get into action, and we make sure that we are ready to serve the families that need us now more than ever.
The last 4:35 video:
George Gammon: Housing Crash And Secret Influences On Fed
Rebel Capitalist
Oct 26, 2022
Virginia Beach mortgage banker Robby Dobrinksy says rapidly increasing interest rates and inflation are creating challenges for buyers.
“It just prices them way out of the market, because homes that were $150,000 a year and a half ago are now $225,000 to $250,000, and that person who just graduated college wants to get their first starter home now and can’t qualify for that anymore,” Dobrinsky said.
So what’s the “good news” for buyers? Sessions says that here in Hampton Roads, there’s actually more opportunity in the current market.
“We have seen a little more inventory in the area, so you have a little more time to get out and see the homes before they’re gone,” she said.
https://www.13newsnow.com/article/money/consumer/real-estate-market-slowing-down-rising-interest-rates/291-5eb57c4f-cd5a-436b-b42a-c2a445b8b18d
Troy Jones, a broker with Coldwell Banker Sea Coast Advantage, said there are multiple factors that can contribute to the jump.
“Part of it, you know, interest rates obviously are slowing things down a bit,” Jones said. “Again, we were at a really low point where we had such low inventory it was hard to find anything. So now we’re able to get back to a much normal range where buyers are able to find inventory.”
The time spent for single-family homes and condos to be listed on the market have all gone up. Myrtle Beach had the highest number of single-family units on the market until final sale at 121 days.
Jones said the biggest factor of this is expectations of the buyers and sellers.
“I think expectations have been off for the last year or two because of the way the market has just exploded,” Jones said. “So right now the market is just leveling back out, it’s normalizing, and we’re getting back to more of a range that you would expect things to be.”
While median sale prices of single-family homes have skyrocketed — jumping 29% in Carolina Forest — it’s the price of condos that are having the biggest increase at close to 56%.
https://www.wbtw.com/news/grand-strand/myrtle-beach/report-sellers-finding-myrtle-beach-area-homes-staying-on-market-for-longer/
As profits fall 50%, Anywhere looks to cut commissions
The Real Deal|16 hours ago
A challenging housing market halved Anywhere’s third-quarter profits … after strong quarter Sales were constrained by rising interest rates and a shortage of inventory, which contributed to a nearly $380 million drop in Anywhere’s revenues compared …
Columbus remains one of the hottest real estate markets in the country despite record-high mortgage rates. “We’re really normalizing. It’s not that it’s a crisis or a crash or a shift,” said Kim Mills of Cutler Real Estate. “You can put skin in the game as a buyer a little bit easier than you could let’s say six to nine months ago.”
For sellers, you may have to put in more work to get your home off the market.
“We’re seeing sellers having to contribute to that we haven’t seen in two years,” said Shaun Simpson of Cutler Real Estate and the Columbus Realtors Board of Directors. “I just had a radon test come back and I haven’t had a client have to put in a radon mitigation system in two years.”
As homes are on the market longer — the average sale price is starting to dip.
https://www.msn.com/en-us/money/realestate/with-record-high-mortgage-rates-central-ohio-housing-market-begins-to-stabilize/ar-AA13sijR
Last week, the 30-year was at 6.94%. Last year, the 30-year was averaging at 3.14%
The average rate on the 15-year mortgage rose to 6.36%.
The 30-year broke 7% for the first time since April 2002, Sam Khater, chief economist at Freddie Mac, said in a statement, “leading to greater stagnation in the housing market.”
Khater added that consumer confidence is weakening, and that many buyers are choosing to wait to see where the market will go, “pushing demand and home prices further downward.”
The adjustable-rate mortgage averaged 5.96%, up from the prior week.
Mortgage demand, meanwhile, has sunk to the lowest level in 25 years, Mortgage Bankers Association said on Wednesday.
The yield on the 10-year Treasury note was above 4% in morning trading on Thursday.
https://www.msn.com/en-us/money/realestate/mortgage-rates-surpass-7-25-freddie-mac-says-e2-80-94-e2-80-98leading-to-greater-stagnation-in-the-housing-market-e2-80-99/ar-AA13rwud
Zillow Group Inc. confirmed more layoffs Wednesday, as the real-estate services company grapples with a slowdown in the housing market. Bloomberg News reported Wednesday that Zillow laid off 300 employees, or about 5% of its workforce. Zillow confirmed the cuts in an email to MarketWatch.
Earlier this year, Zillow said it expected to cut its workforce by 25% this year as it unwound its disastrous home-buying business.
Zillow isn’t the only real-estate company to cut staff recently; rival Redfin laid off nearly 500 employees in June, and online real-estate brokerage Compass Inc. announced it would cut about 450 jobs, or 10% of its workforce, in September.
Zillow stock has been slammed this year, with Class A shares tumbling 51% and Class C shares off 52%, compared to the S&P 500’s roughly 20% loss in 2022.
https://www.msn.com/en-us/money/realestate/zillow-confirms-more-layoffs-amid-housing-market-slowdown/ar-AA13pMEi
Office usage has remained depressed in San Francisco for so long that city officials are trying to get a grasp on the severity of the problem and formulate a plan for how to manage the shifting landscape of the city’s commercial activity going forward.
A new report from the city of San Francisco called The Persistence of Pandemic-Era Remote Work lays out familiar data about the return-to-work effort, or lack thereof, and signals a first step by the city to deal with the longer-term implications of the trend.
The report serves as a response to a letter of inquiry about the state of commercial real estate demand in the city from Supervisor Catherine Stefani.
In comments to the San Francisco Standard, city Chief Economist Ted Egan referred to the rigidness of remote work as a “major shock.”
“We wanted to make decision-makers know that we in the controller’s office are aware of this phenomenon,” Egan told the S.F. Standard. “We don’t think that everyone’s going to go back to work.”
The report highlights JLL’s longer-term office vacancy forecast for the city, which projects vacancy rates between 19.5% and 25.3% to persist into 2026.
“If vacancy rates remain at this elevated level, and a large share of these are direct vacancies, then the income, and market value, of office buildings in the city are likely to be negatively affected,” the report says.
The prospects for the future of office cap rates in the report are sobering, painting a potentially grim picture for the city’s property values should current trends continue.
“Additionally, since 2019, the spread between San Francisco office capitalization rates (as measured by the median rate of reported transactions), and 10-year [Treasuries] has widened, according to Moody’s Analytics,” the report says. “If that spread persists until 2028, and the Blue Chip forecasts for the 10-year yield are accurate, San Francisco office capitalization rates will sit in the 7% – 8% range between now and 2028, instead of the 5% – 6% range that prevailed during most of the 2010s. The market value of office buildings would decline proportionately.”
https://www.bisnow.com/san-francisco/news/office/san-francisco-is-worried-about-the-future-of-its-office-market-116011
“The prospects for the future of office cap rates in the report are sobering, painting a potentially grim picture for the city’s property values should current trends continue.”
And the Generation Z cohort is the country’s smallest.
It was just last month that rates climbed above 6% for the first time in 14 years. The latest dramatic jump makes a home purchase even more unaffordable and stands to further slow a market already reeling from the rising borrowing costs.
“It’s crazy,” said Tressa Pope, a Los Angeles-area mortgage broker. “Rates rose so rapidly that people weren’t prepared.”
With rates rising so quickly, buyers have had to try to buy homes with values set when money was cheap. Many can’t.
Home sales are plunging across the country and, in some markets, prices are falling, but nowhere near fast enough to balance out the rising interest rates.
In Southern California, prices are now nearly 6% off their peak in May, according to Zillow.
In Los Angeles County specifically, the typical home value, which Zillow defines as the average of the middle third of the market, was $835,546 in September, 6.7% below the peak.
https://www.msn.com/en-us/money/realestate/mortgage-rates-top-7-25-for-the-first-time-since-2002-chilling-la-housing-market/ar-AA13ryVX
Elon Musk has taken ownership of Twitter Inc with brutal efficiency, firing top executives but providing little clarity over how he will achieve the ambitions he has outlined for the influential social media platform.
“The bird is freed,” he tweeted after he completed his $44 billion acquisition on Thursday, referencing Twitter’s bird logo in an apparent nod to his desire to see the company have fewer limits on content that can be posted.
In a running poll on messaging app Blind about whether Twitter employees will be employed in the company in three months, less that 10% voted “yes.” Of the 266 participants, 38% said “No” and over 55% chose the “popcorn” option.
Musk fired Twitter Chief Executive Parag Agrawal, Chief Financial Officer Ned Segal and legal affairs and policy chief Vijaya Gadde, according to people familiar with the matter. He had accused them of misleading him and Twitter investors over the number of fake accounts on the platform.
Agrawal and Segal were in Twitter’s San Francisco headquarters when the deal closed and were escorted out, the sources added.
In an indication of the challenges ahead, Bollywood actress Kangana Ranaut, who was banned from Twitter last year for violating its rules on hateful and abusive conduct, applauded Musk’s takeover on Instagram and shared requests from fans to have her account restored.
https://www.msn.com/en-ca/news/world/musk-begins-his-twitter-ownership-with-firings-declares-the-bird-is-freed/ar-AA13sFvt
“The bird is freed,” he tweeted…
Will Twitter soar like an eagle or cluck like a turkey?
Jim Cramer suggested earlier this year that shares in Facebook parent Meta would go up. Today, he said he’s sorry.
Very sorry.
In early June, the colorful host of CNBC’s Mad Money told investors that Meta shares had “nowhere else to go but up.”
Today, he apologized for his bad call following Meta’s quarterly earnings announcement Wednesday evening, which entailed a disappointing quarterly revenue outlook. On Thursday, Meta shares fell 25%, their biggest one-day drop since February. Investors have pushed the stock down more than 70% this year.
“I made a mistake here. I was wrong. I trusted this management team. That was ill-advised,” Cramer said in a somber tone on CNBC. “The hubris here is extraordinary, and I apologize.”
Some observers joked Cramer’s apology today could be a good sign for Meta shares, as he’s gained such a reputation for getting things wrong that “inverse Cramer” became a meme on Twitter. The idea is that an investor can succeed by listening carefully to what he says and then betting on the exact opposite outcome.
They certainly would have done well by doing the opposite of what he said in early February. Cramer was asked on CNBC about Meta’s poor earnings report at that time and if shares dropping in premarket trading was an “amazing buying opportunity” or “some kind of terrible inflection point.” Cramer answered, “I’m going for the former…I have total faith in Mark Zuckerberg.”
https://finance.yahoo.com/news/jim-cramer-said-meta-shares-222445608.html
US home prices could plunge 20% next year as mortgage rates surge
https://finance.yahoo.com/news/us-home-prices-could-plunge-195915705.html
A comment:
Home prices doubled in 2 years. Wages did not. What did you think would happen? Even with historic low rates a year ago homes were not affordable to most. Now rates of 7.16% and climbing. A $500,000 home with $100,000 down principal and interest payment is $2700. A year ago would have been $1680. In 2023 when rates hit 12% will be $4110. That is not including taxes and insurance which are also increasing greatly. And we are paying how much for milk, eggs, gas?? Home prices will fall 50% or more and rates will stabilize somewhere around 7%. Inventory is still low? Homes listed in Sept 2022 – 732,276. Homes listed Sept 2021 – 576,867. And can always count on the triple D’s.. death, divorce, and debt. But hey, when you are $250k underwater at least you can say you have a 3% interest rate.
Meta Platforms Inc. plunged 25% Thursday, its biggest one-day drop since February, after Chief Executive Officer Mark Zuckerberg asked investors for patience with the social-media giant’s swelling investments in unproven bets at an already-challenging time for digital-advertising companies.
Investors, who have already sent the stock down 71% this year, so far aren’t buying it. The Facebook parent’s market value has collapsed by a whopping $676 billion this year, removing it from the ranks of the 20 largest US companies.
“How investors are feeling right now is that there are just too many experimental bets versus proven bets in the core,” Brent Thill, an analyst at Jefferies LLC, said on the earnings call with Meta executives.
https://finance.yahoo.com/news/zuckerberg-asks-patience-meta-costs-011642485.html
Burn in poverty hell you bashtard. Hey, why don’t you start banning more people? A$$ hat.
“Used retail inventory can be your biggest asset but it also can bite you,” AutoNation Chief Executive Officer Mike Manley said on an earnings call Thursday. “It’s something we need to watch carefully, because wholesale prices haven’t fully come into the retail process. That will happen.”
For rental-car companies, which sell vehicles at the end of their time in the fleet, the bonanza they enjoyed from record used-car prices is coming to an end. Hertz’s profits fell in the third quarter as the value of its rental fleet started depreciating at rates more in line with historic norms.
Hertz’s monthly depreciation costs per vehicle in the US climbed to $198 — up from just $21 in the third quarter of 2021. In more normal markets, depreciation was $250 and $300 monthly a car. That’s a very different story than Hertz had in the first quarter, when the company actually reported a gain on the value of its cars in service.
https://www.msn.com/en-us/money/markets/drop-in-used-car-prices-burn-us-auto-dealers-but-is-good-sign-for-fed/ar-AA13rUPI
Let me get this straight. You got accountants that actually marked up yer used cars. And that passed the auditors?
Amazon founder Jeff Bezos could lose as much as $US23 billion after Amazon shares fell dramatically by up to 21 per cent. Bezos’ net worth has already plummeted to the tune of $US58 billion in 2022, as a result of a wider technology stock slump which has hit Amazon hard, along with a slew of other household names within the sector.
Following the latest stock fall, Bezos’ ex-wife MacKenzie Scott – who recently filed for divorce from her second husband, Dan Jewett – is also tipped to lose $US7 billion.
Amazon has been battling a major reduction in online growth this year, after customers reverted back to pre-Covid spending habits. As a result of the slowdown, the world’s biggest online retailer has cut costs, announced a hiring freeze and halted new projects.
https://www.news.com.au/finance/money/wealth/amazon-founder-jeff-bezos-loses-billions-after-amazon-share-price-plunge/news-story/e5678f7a8abcfc3b376d02c28f83448d
You globalist scum are gonna hang Jeffie.
Bond Investors Lose $106 Billion in Dismal Year for Credit
“It highlights, once again, the need for investor discipline around deal pricing,” said Maria Staeheli, a senior portfolio manager at Fisch Asset Management. “Recently we have observed a tendency of investors to accept less attractive pricing even on some of the spicier names. We think that’s related to investors fearing they miss out on bear market rallies.”
For some deals, the price drops are so severe that the notes are now trading at what some investors consider to be distressed levels. A sterling-denominated social bond sold by bLend Funding Plc in April has fallen to 72 pence from an issue price of par, while in the US market, a $7 billion 30 year bond sold in March by a unit of AT&T Inc. and Discovery Inc. has slumped to about 69 cents. A JAB Holdings B.V. bond priced in April has lost over a third of its value to 59 cents.
More recent offerings haven’t been immune to the disruption that’s swept global markets. Nearly two-thirds of the 336 investment-grade bonds sold in September and October for which full pricing information is available are already quoted lower than the price they originally sold for, Bloomberg analysis shows.
It’s a grim picture for investors who would typically look to trade out of their existing holdings when a company comes to the market with a new deal. With global financial markets still volatile as central banks fight consumer price inflation and recession risks, conditions are unlikely to improve any time soon. Those firms that need to raise financing are also now facing ever-higher borrowing costs on the public debt markets, as average dollar, euro and sterling high-grade corporate yields have surged this year.
https://uk.finance.yahoo.com/news/bond-investors-lose-106-billion-063000257.html
While renters in Toronto are competing neck-and-neck for apartments that keep going up in price, the city’s housing market is in a very different situation that would better be described as “in hot water” than “red-hot.”
The number of residential real estate sales in the GTA has been dropping dramatically for months now, while the number of listings are likewise reaching scary lows, and homes are sitting on the market unsold for way longer, prompting more and more terminated listings.
According to the latest numbers from the Toronto Regional Real Estate Board, the usually extremely high demand for condos in the region has waned, with a whopping 46 per cent fewer sold in the third quarter of this year than during the same time last year.
When looking monthly, other organizations have pegged this as an even more shocking fall: down 89 per cent year-over-year and 84 per cent from the ten-year average, per the Building Industry and Land Development Association (BILD).
https://www.blogto.com/real-estate-toronto/2022/10/hardly-anyone-buying-condos-toronto-anymore-market-plummeting/
Prevu acquires mortgage tech assets of shuttered Reali
HousingWire|15 hours ago
Prevu real estate tech firm wants to expand its digital buying platform to mortgages by offering homebuyers all the services they need in one place.
Dallas, TX Housing Prices Crater 24% YOY On Surging Subprime Mortgage Defaults And Plunging Demand
https://www.movoto.com/tx/75231/market-trends/
As one national lender conceded, “Buyers have been getting bilked for the better part of 20 years. It’s the way it’s done now.