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Builders Are Drastically Reducing Prices

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  1. From the first 3:39 video:

    Honest Government Ad | the Rental (& Housing) Crisis
    thejuicemedia
    Nov 30, 2022
    The Australien Government has made an ad about the national rental crisis, and it’s surprisingly honest and informative.

    The second 15:22 video:

    New Construction Las Vegas Homes – Massive Liquidation Sale!
    Las Vegas Living
    Dec 10, 2022
    New Construction Las Vegas Homes – Massive Liquidation Sale! As we close out 2022, there is now a massive liquidation sale going on with new construction Las Vegas homes. Many homebuilders are facing a significant pull back of buyers due to the rapid rise in interest rates. Inventory for new construction Las Vegas homes is piling up which is good news for home buyers. Many new home builders in Las Vegas are now drastically reducing prices and offering closing costs concessions to sell their inventory. You will see in the video specific details revealing these huge price reductions. It truly is becoming a massive liquidation sale as we close out the year. I will also reveal some of the best home builders in Las Vegas based on customer feedback and overall ratings. New construction Las Vegas homes should be on every home buyers radar going into 2023. There are many good deals going on right now and will like get even better in the new year.

    The third 14:35 video:

    0:00 / 14:35
    LOS ANGELES
    BANKS Already Know A Housing Crash Is Coming? Mortgage Rate Update 12.10.22
    OMA RLTY & Alden Mortgage
    Dec 10, 2022
    pricing out the following mortgage products

    30 year fixed rate mortgage
    15 year fixed rate mortgage
    30 year jumbo rate mortgage
    DSCR loan (debt service covered ratio) which is for rental income producing properties mortgage rate
    Bank Statement rate mortgage
    FHA 30 year rate mortgage
    7/6 ARM SOFR rate mortgage
    USDA 30 Year Fixed rate mortgage
    VA 30 year Fixed rate mortgage
    Hard Money Fix and Flip

    We also offer 100% financing with down payment assistance programs
    land loans
    construction loans
    foreign national loans. Non US Citizens can apply for this loan product as an investor which means you cannot be a US Citizen to apply for this loan product.
    Commercial loans
    Construction loans
    Stated Income Loans

  2. A special ‘reader sent this in’ puddle watch:

    Gratke Wealth, LLC
    @GratkeWealth
    “950k mortgage, signed on ~3600, never paid that. First one came out 4000, next one 4400, then 4800, and now 5200.
    So almost 2k more than 6 months ago when we signed the variable rate document.” Source: Reddit
    Quote Tweet
    Simon Belanger
    @Fiat_iceberg
    ·
    Dec 10
    Gut wrenching reading the increases in mortgage payments

    Seems like most are making it work … for now.

    Makes me think that there might be a slew of forced sellers in 2023

    https://www.reddit.com/r/PersonalFinanceCanada/comments/y833rc/how_much_more_are_you_paying_in_mortgage_now/

    3. Lending $700k to someone who doesn’t know the difference between, “than vs then,” what can possibly go wrong? Strong fundamentals!

    1. A typical home is now 18.4% ($245,200) cheaper than the March 2022 peak, and are generally seen falling further.

      The “typical home” is imaginary. The area we are watching in Ontario shows no change yet in the under $500K shacks. The drops must be on the higher end stuff.

      1. If you calculate a PMT at 3% on a $500k PV, then change the rate to 7% holding the PMT (wages aren’t rising) and recalculate the PV, you’ll get $316,851.38, a 36.6% drop in resale value. Yikes!

        1. There is a large development of townhouses and a block of them were completed this fall. They were all pre-sold. Several of them are being offered for rent by the builder, indicating the buyers could not complete the purchase at the higher interest rate. Asking rent approx $2300 for a $500K shack. A bunch more of these high density townhouses approaching completion, also supposedly all pre-sold. Should be interesting.

          1. Is that an Excel function or other calculator?
            I would do it on Excel as all you do is change a number inside the formula.

          2. That’s HP’s Time Value of Money (TVM) formula written on an HP-42S RPN calculator that I keep on my desk.

          4. HP-42S RPN calculator

            From wikipedia:

            Production of the 42S ended in 1995.[2] As this calculator is regarded amongst the best ever made in terms of quality, key stroke feel, ease of programming, and daily usability for engineers,[3] in the HP calculator community the 42S has become famous for its high prices in online auctions, up to several times its introduction price, which has created a scarcity for utility end users.

  4. As interest rates rose above 7% in November, home sales in the DC region went in the opposite direction. 

    The latest report from Bright MLS on the regional housing market finds that there were 3,671 home sales in November, a 42% drop compared to a year ago. It is the lowest sales volume for the month of November in a decade.

    “In November, the number of new pending sales was down by more than 40% compared to last year,” the report stated. “The biggest year-over-year declines were in Falls Church City, VA (-61.5%) and Arlington County, VA (-50.7%).”

    https://dc.urbanturf.com/articles/blog/the_dc-area_housing_market_in_november_felt_the_full_effect_of_high_interes/20404

  6. Twitter CEO Elon Musk invited a Stanford professor to the social media giant’s headquarters on Saturday to begin looking at why the old regime acted so “imperiously” and placed the epidemiologist on a blacklist for arguing Covid lockdowns would harm children.

    Stanford University professor of medicine, Dr. Jay Bhattacharya was one of many on the platform’s “blacklist,” according to the second installment of the Twitter Files, which was released on Dec. 8 by The Free Press reporter Bari Weiss.

    On Sunday, Bhattacharya tweeted that he spent Saturday at Twitter headquarters after receiving an invite from Musk.

    Bhattacharya explained that this was an opportunity to find out more about the blacklist he was placed on.

    “Twitter 1.0 placed me on the blacklist on the first day I joined in August 2021,” the professor tweeted. “I think it was my pinned tweet linking to the @gbdeclaration that triggered the blacklist based on unspecified complaints Twitter received.”

    The @gbdeclaration refers to the Great Barrington Declaration, which according to the declaration’s website, was written from a global public health and humanitarian perspective with special concerns about how the current Covid-19 strategies were forcing children, the working class, and poor to carry the heaviest burden.

    The declaration was written by Bhattacharya, Sunetra Gupta and Martin Kulldorff and signed on Oct. 4, 2021. It was released to the public the next day.

    Bhattacharya said he and Kulldorff sought verification from Twitter 1.0, but they were rejected because they were not notable enough.

    “They should have asked Francis Collins – he would have vouched for our standing as ‘fringe epidemiologists,’” Bhattacharya said. “It will take some time to find out more about what led Twitter 1.0 to act so imperiously, but I am grateful to @elonmusk, who has promised to help find out. I will report the results on Twitter 2.0, where transparency and free speech rule.”

    https://nypost.com/2022/12/12/elon-musk-invites-blacklisted-stanford-professor-dr-jay-bhattacharya-to-twitter-headquarters/

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