From Peak Optimism To Peak Pessimism
All Of A Sudden, It Shut Down. What Can We Do? No One Wants It To Happen Like This
A report from My Sun Coast in Florida. "Some possible bad news for Florida homeowners…
An Investor’s Paradise That Some Thought Would Yield Ever-Increasing Returns
A report from Jackson Hole News and Guide in Wyoming. "'Everyone’s saying it feels slow.…
From the first 3 minute video:
Palo Alto Shifts to Buyer’s Market – Housing Market Update Feb 2023
Feb 12, 2023
It is official, Palo Alto entered the buyers market. By the end of January Palo Alto housing inventory reached a 7 months level. What it means is that at the current pace of sales it will take 7 months to sell all homes that are currently on the market. Quite a change from less than 2 months of inventory a month ago in December.
42 homes came to the market in Palo Alto in January but only 9 of them sold. 9 sales is a 3-fold drop compared to January of last year. The number of new contracts also fell from 25 a year ago to just 9, a 64% drop. New contracts is a leading indicator of the future market activity, a predictor of the number of sales in February. The pace of sales will remain slow and the number of homes available for sale will, most likely, continue to grow.
What caused this market slowdown is a dramatic disconnect between the buyers and sellers expectations. Palo Alto median list price in January was $3,850,000 while the sale price was only $3,170,000, almost $700,000 gap. The sellers are still looking back at the spring sales of last year to set the prices and buyers are dealing with twice-higher interest rates, tech companies layoffs and other economic uncertainties.
But the worst of the price adjustment may be behind us. Palo Alto home sale price dropped by 32% between the May peak and the December low, both of last year. The falling price trend got reversed in January, when median home selling price increased by 17% from the month before. The spring selling season together with falling mortgage interest rates may bring a complete housing market turnaround as predicted by Redfin Economics Research Lead Chen Zhao. He wrote in his recent post: “Prospective buyers in places like San Francisco and Austin, where prices have already fallen from a year ago, should pay close attention to a potential turnaround; it could be the time to take action as demand and competitive offers could pick up in the coming months.”
The key word here is “could”, the market really may turn around because there are still a lot of uncertainties. The Feds increased the short term rate by 25 basis points at their last meeting and expected to bump the rates again at their March and April meetings. Hopefully these increases will be able to bring the inflation under control. Local layoffs and looming recession are adding another layer of concerns for the housing market. Even gas prices started climbing again…
The second 7:24 video:
The Test for the Victoria BC Real Estate Market
Alex Carroll in Victoria BC
Feb 11, 2023
I believe the spring market will be the ultimate test for the Victoria BC Real Estate Market. From peak optimism to peak pessimism in real estate in 2022 that brought home prices from historic highs through a historic reset in Canada, we have reached a stability point as 2023 has begun.
Seasonal inventory fell as we entered the fall/winter markets and although demand was sluggish at times, the Victoria housing market has shown its resilience since October 2022. Real estate prices have stabilized in Victoria BC Housing as a consequence of limited inventory. So what’s on the horizon?
The spring market will be the next big test for the direction of real state prices in British Columbia, Canada. Will seasonal trends of new listings also mean enough demand comes back to help support house prices? I don’t believe that buyer demand in an environment of elevated mortgage rates (brought on mostly by inflation and Tiff Macklem/Bank of Canada response to it) will be able to stem the tide.
However, there are some positives that seem to be eliminating much of the doom and gloom that has permeated Canadian Real Estate for the last 12 months. The Bank of Canada has signalled a pause, but recent jobs reports may cause some to question that. For that same reason, bond yields have risen since I began editing this video which could pause any dips in interest rates (fixed rate mortgages).
What do you think will unfold in the Spring market in 2023?
1) Prices stabilize?
2) Bull market?
3) More downside?
4) Home prices fall more than 20%?
The third 51 minute video:
Foreclosures, REO & Investment Properties Update 2/12/2023
Premiered 14 hours ago
Welcome to our weekly update, touring new foreclosures and REO auctions.
Let’s look at the good, the bad and the “Who are you and why are you in my photo?”
I am not advertising these properties, but just touring them with you for informational purposes and entertainment. What are your thoughts on these? Please comment below.
(This video is not sponsored.)
I am a licensed Realtor with 20+ years experience. I used to own a mortgage franchise as well.
The videos on this channel are for entertainment and information purposes only.
I am not providing you with any investment, real estate, or legal advice of any kind.
My comments and videos are on my own behalf and are completely honest based on my own opinions derived from my personal experience working in real estate and mortgage finance.
I am not advertising these properties, only touring the pros and cons for informational and entertainment purposes only. Contact me if you want any additional information (property histories, tax records, comps, etc.)
Palo Alto Shifts to Buyer’s Market
All of the older homes are really small stucco boxes with one bathroom or the airy Eichler homes with a single pitch roof that are expensive to heat in the winter. Better living is a short drive away Mountain View or Santa Clara.
Prime Minister Justin Trudeau has known since at least 2017 that there was a serious problem with people illegally entering Canada from the United States via Roxham Road, just south of Montreal.
Yet six years later, and the Liberal government is no nearer stemming the tide of those people, known as irregular border crossers by the Immigration and Refugee Board, who are flooding into this country in the thousands every month.
To add insult to injury, on Feb. 5, the New York Post revealed 5 that migrants were being given free tickets to travel from New York City to Plattsburgh, a town about 30 minutes away by bus or taxi to Roxham Road, so they could cross into Canada.
Eric Adams, the Democratic mayor of New York, has acknowledged his city helps in “re-ticketing” migrants while at the same time complaining about governors from southern U.S. states sending asylum seekers to New York. Is this practice only deplorable when Republicans do it?
Roxham Road shot to prominence in 2017 shortly after then U.S. president Donald Trump issued an order to restrict immigration and travel from seven Muslim-majority countries for 90 days.
This prompted Trudeau to tweet, “To those fleeing persecution, terror & war, Canadians will welcome you, regardless of your faith. Diversity is our strength #WelcometoCanada.”
Following that tweet, irregular border crossers to Canada went from 433 in February and March of 2017 to a record high of 8,558 in July-September.
The sharp rise led to Trudeau in August altering his tone substantially. “You will not be at an advantage if you choose to enter Canada irregularly. You must follow the rules and there are many,” he said.
Department of Defense (DoD) Education Activity Diversity Chief of Diversity Equity and Inclusion (DEI) responded to Congressional backlash for tweeting about being “exhausted” by white educators.
In an interview with Military Times Senior Reporter Karen Jowers, the DoD DEI primary education administrator, Kelisa Wing, defended now-deleted tweets from 2020 Fox News re-surfaced in September of 2022 that took aim at “white folx” that have the “CAUdaacity” to claim “black people can be racist too.”
For background, the interview included an excerpt of one of Wing’s tweets subject to the most GOP scrutiny:
“I’m so exhausted at these white folx in these PD [professional development] sessions this lady actually had the CAUdaacity to say that black people can be racist too … I had to stop the session and give Karen the BUSINESS … we are not the majority, we don’t have power.”
I had to stop the session and give Karen the BUSINESS … we are not the majority, we don’t have power
Interesting how she reacted when someone challenged the power she wields.
Meanwhile our armed forces become more and more incompetent by the day.
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