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How Homeowners Can Actually Lose Equity While Still Making Payments

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  1. From the first 6 minute video:

    Bay Area Housing Market Review March 2023
    Talis Team
    Mar 9, 2023

    If you are following the housing market as closely as I am, you sure noticed an abrupt shift in the direction of the market. Suddenly open houses got really busy and news about multiple offers and aggressive bidding came back with renewed intensity. But current market conditions are nothing like a year ago. Combination of low inventory, high housing demand and growing interest rates created market conditions that are very confusing for both the buyers and the sellers.

    Let’s start with the prices. The median home sale price in Santa Clara and San Mateo Counties dropped by 11.9% compared with February of last year, home sale prices are down significantly year over year. The listing prices, on another hand, are up by 7.2% over the same time period. It created a $170,000 gap between the median list price and the median sale price with the listing price trending up faster than the sale prices.

    The sellers are hoping that a crazy spring market of 2022 is back while buyers are negotiating hard to keep the prices down. That is why the sale price to the list price ratio was 100.4%, the average overbid was only four tenths of one percent. The overbid was 14% a year ago.

    Market activity overall was significantly lower than typical for this time of the year. The reason for that was a sharp decline in the number of new listings coming to the market. The number of new listings dropped by 36% year over year. The number of closed sales followed with exactly the same 36% reduction and the number of new contracts went down by 35%. All three key market activity indicators dropped together.

    What should you expect if you are looking to buy a home this spring? First of all, expect a stiff competition for the available homes. What does it mean that there were 12 offers submitted for a home? It means that 11 people did not get it! It means that due to the low inventory many potential buyers were not able to get a home when they needed and wanted it. These buyers are still on the market, still looking for a new home and will be competing with you.

    And if you are a seller, it is as critical as ever to prepare your home for sale and to price it right. Even thought there are many buyers on the market competing for very few homes, today’s buyers are very picky. They will not put offers on homes that do not present a good investment potential and these buyers, typically, won’t bid as aggressively as they would last year. If you want buyers to compete for your home, if you want to trigger a blind auction to sell your home, you need to create a sense of urgency for the buyers and show off the value of your property.

    The second 3:35 video:

    Brockville Housing Market Update Video – February 2023
    Orlando Spicer
    Mar 10, 2023

    The third 8 minute video:

    ‘Mortgage prison’: Trigger rates and negative amortization explained |
    CBC News
    Mar 9, 2023
    Variable-rate mortgages can be high-risk and high-reward. But what happens when it doesn’t pay off? Andrew Chang explains trigger rates, negative amortization and how homeowners can actually lose equity while still making payments.

    1. Brockville

      One of my favorite spots along the St Lawrence River, just at the end of the Thousand Islands. Wonderful harbor run by the town and the town owns a bunch of beautiful islands that are public parks for boaters. Tall ships visit off and on.

      The riverfront condo towers are all bubble built.

  2. California coronavirus updates: Moderna hikes COVID-19 vaccine price
    Capital Public Radio|1 hour ago
    California Governor Gavin Newsom tested positive for COVID-19 yesterday after showing mild symp…The U.S. government paid around $10 billion in the early years of the pandemic to develop and purchase

    Lender seizing vacant Loop landmark
    Crain’s Chicago Business|18 hours ago
    The pending foreclosure of the former Robert Morris University building at 401 S. State St. highlights the decimated value of Loop office properties.

  3. CNBC analyst Jim Cramer is once again being pilloried on social media after a clip resurfaced showing the “Mad Money” host recommending viewers buy shares of Silicon Valley Bank’s parent company, which owns the tech-driven commercial lender that swiftly collapsed on Friday.

    “The ninth-best performer to date has been SVB Financial (the bank’s parent company). Don’t yawn,” Cramer told viewers during a Feb. 8 episode of “Mad Money.”

    Cramer listed SVB Financial among his “biggest winners of 2023 … so far” alongside blue-chip stocks such as Meta, Tesla, Warner Bros. Discovery, and Norwegian Cruise Line.

  4. Disbarred Los Angeles lawyer Tom Girardi funneled more than $1 million in gifts and payments to an investigator at the State Bar of California and the investigator’s wife, a USC accounting professor, according to a report released Friday.

    The long-anticipated report, the result of a year-and-a-half investigation by a law firm working for the State Bar’s governing board, detailed how Girardi cultivated and sustained an “extensive network of connections at all levels” of the agency tasked with regulating California’s legal profession and described corruption beyond what is publicly known.

    The investigator, Tom Layton, and his wife, Rose, received more than $600,000 in payments from Girardi, and Layton enjoyed the use of a credit card paid for by Girardi’s law firm, among other perks, according to the report.

    “The magnitude and duration of the transgressions reveal persistent institutional failure and a shocking past culture of unethical and unacceptable behavior,” said Ruben Duran, chair of the State Bar’s board of trustees, in a statement.

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