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Indulgences And Money Sinks

It’s Friday desk clearing time for this blogger. “The local housing market is not ‘crashing at all,’ said King County Assessor John Wilson. ‘But the fact is, it’s finally kind of peaked.’ In Seattle’s Queen Anne neighborhood, values declined 8% on average this year, compared with an increase of nearly 14% last year. In Sammamish, values are down 22% on average, after shooting up 50% last year. Residential property values in Snohomish County declined 7% on average this year, said Assessor Linda Hjelle. Pierce County is still finalizing its values, but is also likely to record a decline.”

“It appears that the days of corporations and investors buying up scores of houses in Charlotte may be coming to an end. According to Redfin, the Charlotte metropolitan area has seen a 66% drop in investor purchases of homes. That’s the second biggest drop of all metros in the country, in a tie with Atlanta. One more factor could be that investors are losing money in real estate. According to Redfin, a little over 17% of homes sold by investors in March were sold at a loss. That’s the fifth-highest rate in the nation, behind Phoenix, Las Vegas, Jacksonville, and Sacramento.”

“Look around the Phoenix metro area, and you’ll see homeowners are still selling. But the market has definitely slowed down. Last year the median Phoenix metro home sold for $480,000. Today, it’s only $435,000.”

“According to a report from Realtor.com, a new price peak is unlikely in 2023. In the country’s 50 largest cities, 15 saw price declines, the figures showed. Texas metros registered the biggest dips in prices, led by Austin, which saw a 7.3% annual decline. Houston, down 5.9%, and San Antonio, with a 5.8% drop, followed. Meanwhile, close to 13% of listings across the country saw price reductions, compared to 10.2% in May 2022. Austin led the list of cities where homes saw the biggest declines. There, roughly 12% of houses had their prices cut, followed by San Antonio, 9.1%, and Oklahoma City, 8.7%.”

“One area of the country that was booming saw the air coming out of prices every year, according to government data. ‘Year over year prices in many western states have started to decline for the first time in over ten years,’  Anju Vajja, the principal associate director at the FHFA’s research and statistics division, said. Seven states — all located in the Western US— logged price declines. Utah led the list, with prices off by 4.35%. Nevada followed with a drop of 3.6%. San Francisco-San Mateo-Redwood City, California, was the largest metro area with the greatest price decline, at 10.1%.”

“As the city contends with historic levels of distress in its office market, Downtown Los Angeles is headed for even bigger problems in the form of maturing debt on some 59.3M SF of office property in the next two years. The piling on of flagging office demand, major layoffs in tech sectors, and financing difficulties caused by rising interest rates ‘have made it, in my opinion, the worst market — at least in LA — that I’ve ever seen,’ JLL International Director Tony Morales said. At least one major office owner in Downtown LA has shown its willingness to walk away. ‘If the biggest guys in the real estate business are walking away from property, where’s the leverage of the lender?’ said Bert Haboucha, president of debt restructuring specialist Atlas Capital Advisors.”

“A Singapore-based real estate investment trust that owns more than 5M SF of U.S. offices is looking to sell off one of its most valuable assets as it looks to reduce its debt obligation. Manulife US Real Estate Investment Trust is in talks to sell Phipps Tower, a 20-story, glass-clad office building above the high-end Phipps Plaza mall. Mirae’s U.S. REIT, Mirae Asset Maps Frontier US Private Real Estate Trust No. 5, recently posted losses of more than 70% due to value struggles in its portfolio, including a 75% value loss on a Washington, D.C., office building. ‘We see this as a potential bitter pill to swallow in order to bring forth more stability for the portfolio,’ DBS Group Research analyst Derek Tan said in the report.”

“A developer is blaming the rising interest rates – among other things – for putting the brakes on a 400-unit condo project in the centre of Richmond. Pre-sale buyers of Minoru Square were told this week the developer has ‘paused’ the project and will return their 20 per cent deposit. Thomas Davidoff, a real estate professor at the University of British Columbia, said a developer might cancel the project if they decide it is no longer profitable enough. ‘We’ve seen other pre-sales run into trouble, and I don’t think this will be the last,’ he said.”

“Soaring rates and falling property values are squeezing commercial real estate firms in Sweden, but the risk of a banking crisis is low, the head of the central bank said on Thursday. Concerns have centred on real estate group SBB, which is looking for a buyer after its debt was cut to ‘junk’ status and has been forced to restructure. But SBB is not alone and Moody’s said this week it had taken negative rating action on about 50% of the real estate firms it covers in Sweden. The end of the long period of cheap money has exposed faults lines in the financial system, hitting niche lenders in the United States and forcing authorities to arrange a shot-gun wedding for Credit Suisse. ‘I think .. the low rate environment exposed the system to risks and maybe the debate was a bit naive about what kind of risk we were building up during that period,’ Riksbank Governor Erik Thedeen told reporters.”

“The housing market is probably close to bottoming out with some regions taking a much bigger hit than others. The Wellington region was the worst performing market, falling 21 percent from the peak. ‘Perhaps the inconsistencies of the Upper Hutt market perfectly encapsulate a market trying to find its feet, with a quarter of peak value now wiped out,’ said CoreLogic NZ head of research Nick Goodall.”

“After years of a booming market, hundreds if not thousands of Queensland real estate agents are leaving the industry as once-skyrocketing property prices continue their slow descent. Former Buderim real estate agent Myles Blackwell left the industry in late March. He sold homes on the Sunshine Coast north of Brisbane for six years and said he knew the market would only boom for a short time. ‘When the times get tough and the houses aren’t selling, and people are holding back, and the affordability becomes unreachable for more people because the interest rates are a lot higher, then it is a real slog. Generally speaking you have more properties that can fall over or don’t complete and it takes longer to get the buyers across the line.'”

“Singapore’s current property boom stems from mass-market properties, driven by HDB upgraders. Whether you’re checking the background of a property, or looking for a potentially undervalued unit, it helps to know the losers as well as the winners. It’s unusual indeed for projects to see substantial losses in a bull market like 2023 — but there are a number of condos that have incurred bigger losses. The Marina Collection, for instance, has seen only two profitable transactions in its history (and 15 unprofitable ones).”

“Seascape is a regular on ‘top losses’ lists, and has a history of massive loss-incurring transactions; from a $6.6 million loss in 2017, to a $3.7 million loss in 2019. In fact, there are no profit-making transactions recorded from Seascape to date, just a straight run of 18 losses. Turquoise is in the same boat, with only one winning transaction to date (and 25 losses). We trust you see the pattern by now: Sentosa Cove condos are indulgences and money sinks, albeit beautifully designed and luxurious ones.”

“Lastly, it’s a matter of timing, as many of these initial transactions were bought during the last property market high in 2007 and 2008. Take the latest loss at Marina Collection, for example, where a 3,272 square feet unit was sold for just $1,421 psf in April 2023. This was nearly half the $2,842 psf it transacted for in March 2008. In the years to come, losses are likely to worsen or remain the same, with the ABSD now doubled for foreigners. But don’t take this as a condemnation of Sentosa Cove condos: it’s simply that these are properties to be enjoyed, rather than invested in.”

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This Post Has 59 Comments

  1. ‘If the biggest guys in the real estate business are walking away from property, where’s the leverage of the lender?’

    It’s died in the arse Bert.

  2. ‘recently posted losses of more than 70% due to value struggles in its portfolio, including a 75% value loss on a Washington, D.C., office building’

    Half off is unpossible.

  3. ‘In Sammamish, values are down 22% on average, after shooting up 50% last year’

    Behold, yer CCP virus air pockets!

    1. Note that a mere loss of 33% is sufficient to wipe out a 50% gain:

      1.5×(1-0.33) = 100%

    1. The unofficial CPC stance is that the virus was manufactured by the Americans and released during the 2019 Military World Games hosted in Wuhan, China.

      Gao’s vague statements are 100% consistent with that viewpoint.

      1. 3 years ago I would have said “that’s nonsense, we all know China is bad and did it”

        After 3 years of the veil being removed from GAE/FUSA’s face, yeah I’d probably go with Gao at this point.

  5. A reader sent these in:

    I appealed again & got this last night. One caveat – over 10 years I’m sure there are other videos with 10 second music snippets in them, and I’m not going to try to find and delete them all, so it’s possible I’ll vanish again.

    https://twitter.com/RudyHavenstein/status/1663925577890545664

    In all seriousness, I’ve learned that I can’t trust Twitter. I will continue to use it for short, funny stuff, or to go after the Fed and the others in my pinned tweet, but my main focus will be here: https://tinyurl.com/msych3y9
    Really appreciate everyone’s kind support.

    https://twitter.com/RudyHavenstein/status/1663932674220916736

    Rising to power in the Galactic Senate as senator of Naboo, Sith Lord Yellen cultivated two identities, Sidious and Palpatine, using both to further her career. She orchestrated the fall of the Galactic Republic and the Jedi Order, and then established her reign over the galaxy.

    https://twitter.com/RudyHavenstein/status/1663929916096913408

    If the Fed is on “pause” with inflation this sticky at “full employment” — they know they broke something.

    https://twitter.com/Convertbond/status/1664493334990147585

    APOLLO: “Delinquency rates for credit card borrowers are approaching 2008 levels across all age categories.”

    https://twitter.com/carlquintanilla/status/1664231011734147074

    In May:10 largest S&P 500 components: +8.9%. Other 490 S&P 500 stocks: -4.3%. Don’t blink …

    https://twitter.com/xtrends/status/1664378392312004613

    According to Vanda research Retail investors recently bought $1.48 billion in U.S.-listed stocks — a three-month high. Last in last out 💀

    https://twitter.com/TradingThomas3/status/1664359749817622533

    1. “In all seriousness, I’ve learned that I can’t trust Twitter. ”

      Last night, to celebrate Pride Month, @MattWalsh (of the Daily Wire) posted his “What is a Woman” documentary on his twitter handle. Evidently a couple minutes in, people were prevented from re-tweeting Matt Walsh’s tweet. Daily Wire made a big deal that Elon was suppressing the video etc etc.

      Big hullabaloo over nothing, I say. The movie itself was not blocked, and anyone can watch it (I did). Even if people couldn’t re-tweet, they could still simply post “hey go over to Matt’s twitter and watch WiaW” which is the same as re-tweeting. Memo to Daily Wire: Quit whining.
      Lack of promotion is not the same as suppression.

  6. “One more factor could be that investors are losing money in real estate.”

    Do you think there just might have been too many prospectors who joined the real estate gold rush, aka the $ure road to riche$?

    “According to Redfin, a little over 17% of homes sold by investors in March were sold at a loss.”

    If memory serves, the prospectors who joined at the end of the gold rush lost their shirts.

    1. Who would’ve thought the government-sponsored sure road to riches would have left so many house poor Americans along the roadside?

      1. Yahoo
        The New York Times
        More Than 1 in 4 American Homeowners Is ‘House Poor’
        Debra Kamin
        Tue, May 30, 2023 at 11:19 AM PDT·3 min read

        More than one-quarter of homeowners in the United States are “house poor,” spending more than 30% of their income on housing costs, according to a new study.

        Chamber of Commerce, a product research company for real estate agents and entrepreneurs, used numbers from the U.S. Census Bureau to analyze monthly housing costs and median household income in the 170 most populated U.S. cities. The company found that 27.4% of all homeowners are “cost-burdened” in its study.

        Miami, Los Angeles and New York City have the highest number of “house poor” residents, with more than 4 in 10 homeowners in each city feeling stretched beyond their means by their housing bills. And with the exception of New York City, the top 10 cities in the United States for cost-burdened homeowners are all located in either California or Florida.

        Why it matters: Housing costs are on the rise nationwide.

        Mortgage interest rates, which dipped to historic lows at the beginning of the pandemic, climbed past 7% in 2022 — the highest numbers seen since 2002. And although rates slightly cooled in the early months of 2023, new homeowners today are still saddled with significantly higher monthly mortgage payments than neighbors who locked in a lower rate.

        Add skyrocketing inflation and stagnating wages into the pot, and Americans owe trillions more than they did at the start of the pandemic. Higher housing costs means less set aside for savings, spending and emergencies.

        It’s not just homeowners being squeezed, either: Rising housing costs push up rents as well, meaning both renters and homeowners are feeling strapped.

        Background: The number of cost-burdened homeowners had been on the decline.

        The “30% rule” is a longtime piece of personal finance gospel that advises keeping all housing expenses, including rent or mortgage payments, property taxes and utilities, from cutting into more than 30% of your monthly income.

        From 2015 to 2019, the percentage of U.S. homeowners who were considered financially strapped dropped each year, from 29.4% in 2015 to 26.5% in 2019. But the pandemic has now started to erase those gains.

        Los Angeles and New York mirror that national trend: In Los Angeles, where nearly half of homeowners are currently house poor, the number of cash-strapped owners dropped 4 percentage points between 2015 and 2019 but is now climbing again. The same goes for New York City, where in 2021, more than 45% of homeowners were house poor, up from 41.3% in 2019.

        Miami, however, bucked the trend: The percentage of house-poor homeowners there was 44.6% in 2021, down 2 1/2 points from 2019.
        …
        https://news.yahoo.com/more-1-4-american-homeowners-181934977.html

        1. Add falling home prices and high mortgage rates to the picture, and you have a large swath of recent buyers who majorly got stucco.

        2. US mortgage rates climb to their highest level since November
          By Anna Bahney, CNN
          Published 1:26 PM EDT, Thu June 1, 2023
          Here’s what higher interest rates mean for you

          Washington CNN —

          US mortgage rates jumped higher last week as uncertainty about the debt ceiling standoff sent bond yields rising.

          The 30-year fixed-rate mortgage averaged 6.79% in the week ending June 1, up from 6.57% the week before, according to data from Freddie Mac released Thursday. Rates jumped higher last week for the third week in a row. A year ago, the 30-year fixed-rate was 5.09%.
          …
          https://www.cnn.com/2023/06/01/homes/mortgage-rates-june-1/index.html

  7. “money sinks”

    It’s not a sink, it’s a pit, the money pit.

    Shopping for a Milwaukee cordless hammer drill for the above foundation demo work, Loan Depot is selling the whole kit with two 8 amp batteries, charger, and carrying case for $850.

    1. Great business for Kodak and FotoKem (Lab that processed the 65mm camera negative and made the 70mm prints).

      (Latest rate card I have from FotoKem shows 70mm color positive release prints at about $1.00/ft. However, would imagine that Chris Nolan negotiated a discount on large print order).

  9. ‘Year over year prices in many western states have started to decline for the first time in over ten years,’ Anju Vajja, the principal associate director at the FHFA’s research and statistics division, said. Seven states — all located in the Western US— logged price declines. Utah led the list, with prices off by 4.35%. Nevada followed with a drop of 3.6%. San Francisco-San Mateo-Redwood City, California, was the largest metro area with the greatest price decline, at 10.1%.”

    Those year-on-year price drops have a way of snowballing as the one-year mark since the bubble top approaches. Most investors prefer not to catch themselves falling knives, and may even switch from buyer to seller once word gets out that prices are falling. This can turn the snowball into an avalanche.

    Enjoy yer race to the exits!

  10. Is the Fed likely to put rate hikes and Quantitative Tightening on hold in the face of unbridled inflation?

    Seems like a recipe for worser inflation…but I am not a Modern Monetary Theorist, so don’t worry about my conjecture.

    1. Market Extra
      ‘Potent liquidity squeeze’ threatens stock market once debt-ceiling deal is done
      Last Updated: June 1, 2023 at 9:18 a.m. ET
      First Published: May 31, 2023 at 1:51 p.m. ET
      By William Watts
      comments
      Fed’s quantitative tightening program will likely be put on pause: TS Lombard’s Blitz

      Lawmakers and the White House appear set to avert a calamitous U.S. government default, but stock-market investors need to be aware that what comes next could still make for a bumpy ride.

      “Some time in the next several days, markets will trade their last bit of angst over raising the debt ceiling for what was always going to be the real problem — handling the massive fundraise by Treasury,” said Steven Blitz, chief U.S. economist at TS Lombard, in a Wednesday note warning of a “potent liquidity squeeze” ahead.

      For weeks, analysts have been sounding the alarm over the potential for a resolution of the debt-ceiling standoff to lead to a sudden drain in market liquidity.

      Here’s the situation: The Treasury has spent 2023 maneuvering to keep the U.S. government below its $31.4 trillion debt ceiling. As a result, the Treasury General Account — think of it as the U.S. government’s checking account at the Federal Reserve — has been drawn down from around $580 billion earlier this year to less than $40 billion as of May 30.

      Once a debt-ceiling deal is signed into law by President Joe Biden, the Treasury Department will move to fill that account back up. That means hitting the market with a deluge of short-term Treasury bills. How that affects liquidity will depend in large part on who ends up buying those bills.

      Treasury bills are debt issued by the U.S. government that mature in four to 52 weeks. New bill issuance could reach about $1.4 trillion through the end of 2023, with roughly $1 trillion flooding the market before the end of August, according to an estimate from BofA Global strategists. That would be about five times the supply of an average three-month stretch in years before the pandemic.

      Strategists at Goldman Sachs have forecast up to $700 billion of bill issuance over roughly two months, once the borrowing limit is increased.

      That could deplete bank reserves as depositors move money into safe, higher-yielding government debt.

      Of course there’s nothing new under the sun when it comes to the debt ceiling. Past showdowns have forced Treasury to make similar replenishments. But there’s a twist, Blitz said, in that market participants have never dealt with one quite this size at the same time the Fed was also shrinking its balance sheet.

      In an effort known as quantitative easing, the Fed massively grew its balance sheet by buying bonds and mortgage-backed securities in the wake of the financial crisis in 2008 and again after the start of the COVID-19 pandemic in 2020. It began shrinking its portfolio last year, a process dubbed quantitative tightening, withdrawing liquidity from the financial system.

      Quantitative tightening, or QT, in 2018 and 2019 was blamed in part for market declines.

      Blitz argued that the Fed’s “own angst over creating recession, QT’s days are surely numbered — or at least put on pause,” he said, along with rate hikes.

      Meanwhile, the T-bill issuance will see the Treasury Department flip from adding liquidity to the economy over the past five months to a big drawdown — “the kind of shift that can push a teetering economy into recession,” Blitz said.
      …
      https://www.marketwatch.com/story/potent-liquidity-squeeze-threatens-stock-market-once-debt-ceiling-deal-is-done-1d16cf6f

          3. Prices of useful goods (household items, clothing, small tools & home appliances) have all gone up and IMO, will not come down. Companies have realized that people have gotten used to the higher prices.

            The price of food (eggs anyone?) is on everyone’s radar and people will substitute/ forego or pay. Supply and demand will eventually balance since there are a lot of companies selling these. Same with durable goods such as large home appliances and furniture. The luxury brands will suffer big time, however the average stores like Ikea, Sears, Target will adjust prices according to demand.

            Will the government not send any stimulation checks like they did during covid-19? If the economy keeps adding jobs, low paying or otherwise, the people with stimulation checks who, otherwise will not qualify for a loan, may line up to buy houses.

          4. Companies have realized that people have gotten used to the higher prices

            Let those companies with such realizations go bankrupt. Those geniuses are probably well positioned with mountains of debt already.

      2. “The majority driver of the budget is mandatory spending,” he said. “It’s Medicare, Social Security, interest on the debt.”

        Those darned “olds” need to be culled from the herd.

        2. Those darned “olds” need to be culled from the herd.

          Or they just need to realize that Social Security and Medicare aren’t actually “mandatory.”

    2. Yahoo Finance
      Jobs report: US economy adds 339,000 jobs in May, crushing expectations
      Josh Schafer
      Fri, June 2, 2023 at 5:32 AM PDT·2 min read

      The May jobs report released Friday showed the US economy remains strong with more than 300,000 jobs created last month, while the unemployment rate rose to 3.7%.

      The US economy added 339,000 nonfarm payroll jobs last month, data from the Bureau of Labor Statistics showed Friday. This marks the 14th-straight month that job creation came in above what Wall Street economists had expected and the largest monthly increase since January.

      Friday’s report comes less than two weeks before the Federal Reserve’s next policy meeting, with investors still expecting the central bank will pause its rate hiking campaign despite the labor market’s surprising resilience. Data from the CME Group on Friday showed there remains a 70% chance the Fed leaves rate unchanged in a range of 5%-5.25%.
      …
      https://finance.yahoo.com/news/may-jobs-report-june-2-2023-123218296.html

    1. My best city to become a homeowner in isn’t a city.

      Less people = less problems.

      1. Which is true if you’re young-ish, single, childless, healthy, and lucky. Less people may mean less problems, but if YOU have a problem, less people means less solutions too.

          1. Health insurance comes with huge added expenses in rural areas due to the lack of subscribers. Many lab tests and x-rays are sent out via overnight express to the metro areas for analysis. We use local only for routine things, and drive to Seattle for anything serious.

            My wife had a pelvic ultrasound performed locally, and when it was determined serious we drove to Seattle right away. They also did an ultrasound there too. Incredibly, the one in Seattle cost less than half of that done locally according to the paperwork, and Blue Cross covered it in full. Blue Cross sent us a bill for roughly 60% of the local ultrasound due to them being an out of network provider.

            Apparently only a few counties in Washington state are fully served by the major health insurance providers. In toothless, morbidly obese, flyover counties you’d better eat right, exercise and brush your teeth unless you’re a Medicaid or older Medicare patient.

          2. FWIW, no everyone in the big city has insurance, especially dental insurance. I know plenty of people who never set foot in a dentist’s office until its an emergency.

          3. “…especially dental insurance.”

            We have dental insurance, but our dentist is not a Delta Dental network provider, so I pick up that slack too.

    1. Elon Musk is right about commercial office space

      As a commercial tenant not paying his rents.

        1. It’s nothing personal…just business.
          That’s how it works. The banks/hedge funds/insurance companies should have know the game.

  13. Andrew Torba on Gab:

    “Less whining about how bad things are more building things, growing things, and fixing things.”

  15. Just because a housing bubble has never before magically reflated just after beginning to CR8R doesn’t mean a girl can’t hope.

    1. Yahoo
      Fortune
      Self-made real estate millionaire Barbara Corcoran says it’s a ‘good time to buy’ because home prices are going to ‘explode’ when mortgage rates drop
      Alena Botros
      Fri, June 2, 2023 at 2:00 AM PDT·4 min read

      Appearing as a guest on Good Morning America this week, Barbara Corcoran answered several questions from viewers, ranging from when the right time to buy a home is to how to win a bidding war. As for the former, Corcoran said now is the time to buy.

      “It’s a good time to buy because the minute interest rates go down, everybody’s waiting for them to go down even by a point, and when they do, they’re going to come rushing back in the market,” Corcoran said. “Prices are going to explode, and you’re going to be paying more for the same house. And you can always refinance, remember, when and if interest rates come down.”

      It’s not Corcoran’s first time advising against even attempting to time the market. Previously, on the Chicks in the Office podcast, Corcoran said to forget about the timing, again stressing that now is always the time to buy.
      …
      https://finance.yahoo.com/news/self-made-real-estate-millionaire-090000704.html

      1. “As for the former, Corcoran said now is the time to buy.
        …
        It’s not Corcoran’s first time advising against even attempting to time the market. Previously, on the Chicks in the Office podcast, Corcoran said to forget about the timing, again stressing that now is always the time to buy.”

        Hey relitter, I have some news for you: The Fed has tipped their hand that lower home prices would be a good development.

        Don’t fight the Fed.

        1. FINANCE
          Housing market: Why did mortgage rates rise again in May 2023? When will they stop?
          Mortgage rates continued to rise in May. How will these increases impact the housing market? Will the Federal Reserve continue to push up rates?
          Maite Knorr-Evans
          Update: Jun 2nd, 2023 23:44 EDT

          Prices across the US economy continue to rise, but the pace of growth has slowed significantly since summer 2022. The housing sector has become a major driver of inflation, even as the Federal Reserve has pushed up interest rates and made taking out a mortgage more expensive.
          …
          https://en.as.com/latest_news/housing-market-why-did-mortgage-rates-rise-again-in-may-2023-when-will-they-stop-n/

        2. Would you bet on Redfin’s CEO over Elon Musk?

          LOL…it’s checkmate, Glenn!

          1. Finance ·Housing
            Elon Musk says home prices will tumble ‘next’—Redfin’s CEO disagrees
            BY Lance Lambert
            May 31, 2023 at 2:02 AM PDT
            On Monday, Elon Musk tweeted: “Commercial real estate is melting down fast. Home values next.”
            Getty Images

            There’s no doubt about it: Things aren’t looking so great for commercial real estate, especially for office space.

            Look no further than a revised forecast issued earlier this month by a group of researchers from New York University and Columbia University, which predicts that office values in New York City alone will plummet a staggering 44% by 2029. That’s much steeper than the group’s prior prediction—issued a year ago—for NYC office values to fall 28% by 2029.

            The stickiness of remote work, coupled with interest rates spiking just as many commercial real estate loans come due, is the underlying source of the commercial real estate bearishness. However, at least in the eyes of Tesla CEO Elon Musk, property declines will soon spread beyond commercial real estate.

            On Monday, Musk insinuated that pain awaits the residential housing market when he tweeted that “Commercial real estate is melting down fast. Home values next.”
            …
            https://fortune.com/2023/05/31/housing-market-home-price-prediction-elon-musk-redfin-ceo-pushes-back/

      2. “It’s a good time to buy because the minute interest rates go down, everybody’s waiting for them to go down even by a point, and when they do, they’re going to come rushing back in the market,” Corcoran said.

        Crazy, looks like the Corcoran Group sells residential real estate. I sure hope they don’t become bag holders for properties inflated due to aggressively negative interest rates that the Fed is on the record saying are over. It makes me sad when VIPs lose money because it’s un-American.

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