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This May Have Been The Last Straw For Some Investors

It’s Friday desk clearing time for this blogger. “The median existing home-sale price in Forsyth County dropped by 14.3% in the first quarter, according to Attom Data Solutions. Attom reported Guilford County had a median sale price of $220,000 in the first quarter, down 11.3% from $245,000 in the second quarter of 2022. Durham County had a median sale price of $370,000, down from $402,500 in the second quarter of 2022. Mecklenburg County had a median sale price of $351,000, down from $395,000 in the second quarter of 2022. Wake County had a median sale price of $422,000, down from $451,000 in the second quarter of 2022. ‘We are starting to see some patterns that show where the U.S. housing market is cooling off and how it’s hitting homeowners based on some key metrics,’ said Rob Barber, Attom’s chief executive.”

“The Dallas housing market has soared in recent years, with the median sale price shooting up from $335,000 in May 2018 to $487,000 in May 2022, per Redfin data. Despite the long-term increases, things have cooled a bit recently. Median home price: $418,000 in May 2023, per Redfin. That’s a 14.2 percent decrease from last year.”

“Ada County homes are in demand once again. However, the median sales price for homes in May 2023 dropped nearly 11%, compared to the same time last year, landing at $534,900. ‘We are under inventory in low-income housing or medium-income housing, so prices for first-time home buyers, we don’t have a lot of that inventory in Ada County,’ said Elizabeth Hume, President for Boise Regional Realtors. Five years ago, that income group was able to afford 50% of all available homes. Now that number has shrunk to 23%.”

“The Baldwin County housing market is returning to normal after a frenzied few years, though it’s not cooled completely yet. On the resort side, data from Baldwin Realtors shows that the average sales price of a resort property in the month of May was $719,985, a 1.9% decrease from the prior year. The average number of days on the market was 68, a 272% increase from May 2022. Coastal condos sold for an average of $552,377, a decrease of 13.1% from the previous year.”

“Brian Mariottihas once again listed his spectacular Coronado, CA, mansion—at a lower price this time around. In March 2022, the sprawling spread made its market debut at $39 million but was reduced to $32 million earlier this year. After a brief hiatus, the property was relisted at $29,995,000 for what will hopefully be a charmed third time.”

“Colorado’s affordable housing crisis is at a tipping point. On top of soaring property taxes, insurance premiums have now doubled or even tripled for some homeowners. Others are seeing policies canceled altogether. The Division of Insurance says the average premium in Colorado jumped 23% last year alone. And, 76% of insurers decreased the number of Coloradans they cover last year. Kitty Stevenson has a house, barn and 25 acres on Sugarloaf in Boulder County. She put her property on the market and moved into town. Stevenson notes that you can’t get a mortgage without insurance, ‘Are people going to be able to sell their house? Can people buy a house? What is that going to do to property values in the state of Colorado?'”

“If you’ve been downtown lately, you’ve probably seen signs advertising available office space. The city of Orlando said the Downtown Development Board is working toward long-term solutions. Office space developer Mike Fess said landlords are also thinking creatively about how to utilize their space. ‘Orange County, Osceola County, Seminole, Lake County, those guys are being a lot more open to allowing office building owners to rezoning to medical office, because they see the pain that the owners of those properties are having,’ Fess said.”

“For many buyers and sellers immersed in the spring rejuvenation of the Toronto-area real estate market, the Bank of Canada’s recent interest rate hike came as a sudden jolt. Industry professionals say calls flooded in from potential buyers, investors and existing homeowners as they grappled with the possible repercussions. Pritesh Parekh, real estate agent with Century 21 Legacy Ltd., said investors who bought properties to rent out are often paying significantly more each month in mortgage repayment and expenses than they receive from tenants. ‘This may have been the last straw for some owners.'”

“Sweden’s government is ready to step in to stem the fallout from a property rout if tumbling prices cause a wider crisis – a potential harbinger of trouble across Europe. High debts, rising interest rates and a wilting economy has produced a toxic cocktail for Sweden’s commercial property companies, with several cut to junk by rating agencies. House prices are also down by around one-fifth since their March 2022 peak, according to the OECD, reflecting soaring mortgage costs. Sweden and Germany are among the worst affected by a widening property slump on the continent, according to Eurostat. ‘When it comes to the commercial property side, clearly there are contagion risks,’ said Swedish Financial Markets Minister Niklas Wykman, without singling out individual companies. ‘It could be that one or more company sells assets. It leads to other companies having to revalue assets and that can, in turn, mean that more companies need to make changes.'”

“The boom that pushed many house prices above $1 million has petered out amid rising interest rates, new data suggests. However, almost half of Canberra’s suburbs still have a seven-figure median house price. The latest CoreLogic data show the ACT remains Australia’s second-most-expensive capital city for property, after Sydney. The ACT’s median dwelling value fell 8.8 per cent in the year to the start of June, compared with a 6.8 per cent drop nationally. The sharpest decline was in the high-end suburb of Garran, whose median house price fell 16.2 per cent to $1,495,629. Across the border, Jerrabomberra house prices fell 16.3 per cent to $1,062,787. Fifteen Canberra suburbs, as well as Googong across the border, fell out of the $1 million zone — their median houses prices are now six figures. CoreLogic noted the cumulative effect of 12 interest-rate increases, saying ‘membership of the $1 million club has become more exclusive.'”

“People selling houses in the top of the south are being too slow to react to the market and adjust their price expectations, the Real Estate Institute of New Zealand says. In its May property repor REINZ reported that Marlborough’s prices decreased by 6.8% in the same period to $635,000, while Tasman dropped 12.9% to $745,000. Nelson/Marlborough manager Craig Russell said there were still properties being forced to drop their price, particularly in Richmond, he said. ‘There is still a glut of properties for sale in the $900,000 to $1,500,000 price bracket – particularly in the wider Richmond area. These properties need to be competitively priced to meet the market, and so we’re continuing to see some price reductions to align price expectations with the market.'”

“Beijing resident Hu Yongwei bought more than a dozen apartments in the small central Chinese city of Hebi for about $31,000 in all, betting they will be financially more rewarding than other investments. Hu, who mostly acquired two- or three-bedroom apartments built about three decades ago, spent 18,000 yuan ($2,528) this month in purchasing his 15th property in Hebi, where prices have plunged over the last two years. ‘The flats were sold very cheaply, like cabbage,’ the 39-year-old said, adding his family’s bad experience with the stock market has made him steer clear of shares.”

“Hu paid a surprisingly low 1,000 yuan excluding taxes and fees for one of his apartments in Hebi. According to one of China’s largest real estate platforms, prices are 27% off their 2021 peak in some areas in the city. Similarly, prices are as much as 24% below their top in parts of Huainan, Rushan and Gejiu. Consumer sentiment remains below the range set over the past two decades. Domestic demand is weak as consumers and companies prefer paying down debt to investing. And youth unemployment is at a record high of above 20%.”

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This Post Has 102 Comments

  2. ‘Are people going to be able to sell their house? Can people buy a house? What is that going to do to property values in the state of Colorado?’

    Bargaining <- Kittie, you are here.

  3. ‘Industry professionals say calls flooded in from potential buyers, investors and existing homeowners as they grappled with the possible repercussions…investors who bought properties to rent out are often paying significantly more each month in mortgage repayment and expenses than they receive from tenants. ‘This may have been the last straw for some owners’

    Gosh Pritesh, those bag-holders you UHS sucked in the past few months are gonna be fooked. I wonder if they’ll remember that?

    1. Ben, I think we need to establish an HBB help line for greedy speculators who are panicking over their wrong-way bets on RE, and need to hear a kindly, sympathetic voice on the other end of the line. I’ll volunteer to take the first shift.

  4. “…Colorado’s affordable housing crisis is at a tipping point. On top of soaring property taxes, insurance premiums have now doubled or even tripled for some homeowners….”

    Colorado appears to becoming the new California.

    In California, holding costs are becoming difficult for many homeowners, even those who are mortgage free.

    Uncharted territory, and what’s on the horizon doesn’t look good.

    1. no “appears” about it. Is the new Kali.

      Heck Eastern California (i.e. formerly known as Colorado) just passed a law that says landlords can’t ask or evict based on dog breed types. (I mean what type of dog could they possibly be referring to? I’m sure it’s golden retrievers (sarc)). Yeah, that’s going to lead to wonderful results.

      1. “…can’t ask or evict based on dog breed types…”

        IMO, All levels of government have now crossed the line into the next world of insanity.

        Wonder if Eastern California is pushing for ‘reparations’?

        Here, in what’s left of the life we knew in California ‘reparations’ are very real.

        Sometimes I wonder if this is all a bad dream and can’t really be happening. But, apparently it is.

        1. Wonder if Eastern California is pushing for ‘reparations’?

          So far, not yet. They’ll have to repeal TABOR first in order to raise taxes to pay for it,

  5. ‘Hu, who mostly acquired two- or three-bedroom apartments built about three decades ago, spent 18,000 yuan ($2,528) this month in purchasing his 15th property in Hebi, where prices have plunged over the last two years. ‘The flats were sold very cheaply, like cabbage’

    That’s the spirit Hu, kick em while they’re down!

    1. The quality construction on those cabbage-cheap flats should hold up well over time.

      I slay me….

    3. Hebi translates Oil City in mandarin. Cheap housing, middle of nowhere, scrubland. Look up Hebi in google maps!

  6. Looks like North Carolina has joined the ‘whole state is a sh$thole that’s sinking like a turd in a well’ crowd.

    1. Looks like North Carolina has joined the ‘whole state is a sh$thole that’s sinking like a turd in a well’ crowd.
      About time. Raleigh was crazy during the pandemic and has to come back to reality.

  8. Coastal condos sold for an average of $552,377, a decrease of 13.1% from the previous year.”

    It was only Yellen Bux.

    1. So I just googlemapped the area. Wow, it’s a lot more built up than I thought. Looks a lot like the Eastern Shore of MD. All farms inland, and tall beach condos everywhere. Some of those condo towers are yuuuge! I wouldn’t want to be there during a hurricane.

        1. Maryland is like other states: blue in the cities/burbs, and red everywhere else. Go north toward the PA line and there are still T flags and Buck Fiden flags. Eastern Shore is rural conservative and leans right. Western Maryland is basically Appalachia and wants to join West Virginia. Dems did gain ground between 2016 and 2020, but everybody did.

          2. For anyone right-leaning, it does suck. Luckily the only way the blueness has affected me personally is in heightened security at stores. I can tolerate it for now. Haven’t decided what I want to do later on.

    1. DeSantis is the controlled opposition. No GOP candidate backed by Jeb Bush is the real deal.

      1. I know that. BTW the girl who got her nipple pinched is in there but they didn’t show that part. Hmmm.

        1. Father Lenin & his Chekists remind you that “your” children belong to the State. Forward, Soviet!

          1. 10 years ago, if someone, Obama for example, had made some speech about “Our children are our future,” everybody would have chalked it up as a literary device and thought nothing of it. But it’s got a new meaning now, especially as relates to the schools.

    2. “Ron DeSantis Campaign Ad Thrashes Pedo Joe Biden (Pedo Peter)”

      – Well, if the MSM isn’t going to say anything (anything against the Left or the Democratic Party, but I repeat myself) then DeSantis can surely use the bully pulpit to full advantage.
      – Banana Republic. (Puppet) dictator wanna be Joe.
      – I will vote for DeSantis, assuming the weaponized DOJ/FBI as part of the Permanent State, doesn’t indict him also on some trumped-up charge as well. Jailing your political opposition and kangaroo courts. Did I mention banana republic?
      – I do wish good luck to Trump. Sad times in America indeed.

      1. “A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship. The average age of the world’s greatest civilizations has been 200 years. These nations have progressed through this sequence: From bondage to spiritual faith; From spiritual faith to great courage; From courage to liberty; From liberty to abundance; From abundance to selfishness; From selfishness to apathy; From apathy to dependence; From dependence back into bondage.” – Alexander Fraser Tytler

        1. It’s interesting how the cycles work. Human psychology doesn’t change much over time which is why we are doomed to repeat history over and over.

        2. Where I live, the voters are mostly union members and they’ve voted to loot the treasury through insane union contracts and payouts.

      2. “– I will vote for DeSantis, assuming the weaponized DOJ/FBI as part of the Permanent State, doesn’t indict him also on some trumped-up charge as well. Jailing your political opposition and kangaroo courts. Did I mention banana republic?”

        – I was sort of half-joking about this, but that was misguided.

        https://thefederalist.com/2023/06/15/do-any-republicans-really-think-desantis-wont-get-impeached-or-framed-by-the-fbi/

        Do Any Republicans Really Think DeSantis Won’t Get Impeached Or Framed By The FBI?
        By: Joy Pullmann | June 15, 2023 | 8 min read

        “After these last seven years, it’s obvious any politician who questions the Congress-defying security state will get the Trump treatment.”

        “Anyone who has been watching for seven years — and counting — has seen the nation’s top Republican politician framed, impeached, raided, prosecuted, and now indicted by corrupt spy agencies on behalf of the Democrat Party. Their goal is to send their top political opponent to prison on charges they said were fascist to bring against their own presidential candidates.”

        – Add to that the ongoing election fraud, which isn’t a tinfoil hat conspiracy theory, and what’s left of our Constitutional Republic, as we the people transition to we the peasants and serfs.

        https://www.washingtonexaminer.com/news/washington-secrets/voters-see-cheating-everywhere-54-expect-in-2024-election

        Washington Secrets
        Voters see ‘cheating’ everywhere, 54% expect it in 2024 election

        by Paul Bedard, Washington Secrets Columnist | June 14, 2023 10:30 AM

        “Claims of cheating in elections that once drew eye-rolling from most are now accepted by a majority of voters who believe it happened in recent elections and will occur again.”

        “What’s more, sizable percentages of partisans believe state and federal officials have ignored reports of cheating and widespread election fraud, a situation that gained currency after the 2020 national election delivered a victory to President Joe Biden.”

        – And then there’s the ongoing corruption scandal in the Biden (crime syndicate) family. This looks to be just a continuation of the Clinton dynasty.

        https://www.americanthinker.com/blog/2023/06/banana_republic_thirty_emmillionem_for_the_big_guy.html

        June 16, 2023
        Banana Republic: Thirty million for the Big Guy?
        By Monica Showalter

        “When we talk banana republics, it’s not just throwing one’s political opponents in jail ahead of election time. It’s not solely a falling currency and high inflation. It’s not purely threats, mobs, and gang warfare on elected leaders. Nor is it the emerging presence of shantytowns, brought on by unregulated human migration.”

        “It’s corruption, massive, massive, corruption, the kind that brings to mind Mobotu, Marcos, Saddam Hussein, Gadhafi, Castro, Hugo Chavez, and Flight Lieutenant Jerry Rawlings, all of whom died with vast fortunes and an unexplained means of acquiring it.”

        “Sadly, as Biden prepares to throw his political opponent, Donald Trump, in jail for 400 years on an unprecedented documents-mishandling charge, we have reports of vast corruption rolling out about his money activities from Congress.”

        – It would seem that the move from Constitutional Republic to Banana Republic is almost complete, including huge public debts, a few wealthy elites calling the shots and impoverishment of everyone else. Are we there yet?

      1. They only kicked NAMBLA out decades ago because of optics. They never actually had a problem with paedos.

  11. ‘”We are starting to see some patterns that show where the U.S. housing market is cooling off and how it’s hitting homeowners based on some key metrics,’ said Rob Barber, Attom’s chief executive.”

    I can’t wait to see more corporate residential investors run away with their tails between their legs. I had a dog that used to do that. It was interesting to watch.

  12. A reader sent these in:

    Single-Family starter Home ownership is now over $ 1 K / month more expensive than renting, up by $ 150 from 1 year ago

    https://twitter.com/INArteCarloDoss/status/1669254299673587713

    Not sure who needs to pin this to his forehead but bear market bottoms never occur before recession starts

    https://twitter.com/INArteCarloDoss/status/1669250105939992576

    Alarming Australian Prime RMBS arrears trend. Sore thumb of 2022 vintage remains. 2021 vintage has sharply ticked up also.

    https://twitter.com/charliecallan_/status/1668882475999973381

    Global Central Bank Update: -ECB hiked rates for the 8th time, 25 bps increase to 3.50%.

    https://twitter.com/charliebilello/status/1669339426722291713

    Here’s what the market was expecting for Fed Funds last month. There’s been a meaningful shift to higher rates (3.75% by Dec 2024, up from 3.00%) w/ rate cut expectations pushed out (to Dec from Sep)…

    https://twitter.com/charliebilello/status/1668996886672416772

    JPOW nails it. At this stage pace matters way less than how long policy remains restrictive.

    https://twitter.com/INArteCarloDoss/status/1669052859415945244

      1. ‘Alarming Australian Prime RMBS arrears trend. Sore thumb of 2022 vintage remains. 2021 vintage has sharply ticked up also’

        Wa happed to my winnahs! Australia?

        1. Housing bubbles & CRE cratering most spectacularly in the WEF colonies of Australia, NZ, & Canada.

          1. Of those three, I wonder which will first in mandating crickets replace meat? My money is on NZ. Their people seem the weakest.

          2. The Kiwis have a native bug called the weta, which is a flightless cricket. From what I have read they are some of the heaviest bugs in the world.

            I too expect the Kiwis to lead the way in mandatory bug eating,

    2. Pace matters too. If inflation doesn’t get under control (unlikely at these slow paces and total lack of QT and control of the deficit), pretty soon things are going to sporky in real world land. As everyone is getting priced out of everything.

  13. Any recommendations on portable gas powered generators for less than $1,000? Brands to avoid?

    I need to buy one soon.

    1. generator less than $1000

      I purchased a 2300 Ryobi genny from Home Depot last year that works pretty well for about $699+ tax. $899 now I believe. (HD keeps them located far atop the highest level tier to prevent theft, and needed a high rise forklift to get it down AFTER I paid for it !! )

      It’s fairly quiet. a little cold blooded but starts alright after a few pulls. and the best feature, which doesn’t seem like a big deal but trust me, it IS, would be the expandable built-in pull handle to easily move it around like airport baggage on wheels.

      It’s not a perfect unit, and a Honda generator is also pretty nice but I’ve found this one to be reliable, handy, & very portable for my small RV. sips gas too.

      the Bluetooth-linked usage/gas monitor/shut-off feature is also very nice as you do not have to babysit it.

      hope this short review helps.

    2. I use Honda. The 2200 size is a tad over your budget. Light, quiet, easy to start.

      You didn’t mention what you want to run off the generator.

    3. As someone that uses generators alot because I camp a lot…boon dock. My honda 2000 has 2800 hours (I installed hour meter when new). It’s been flawless….not a dime spent. Oil changes every 100 hours. The old 2000 is now the 2200….I don’t have any experience with the new. Don’t get champion and don’t get harbor freight.

    4. +1 on the replies.

      It will be used for charging Milwaukee batteries during demolition, and later maybe an RV.

    5. Buy a Honda genny. Buy once, cry once. Top notch for a reason worth every penny, always starts. (cuz it’s never good weather when you need it).

    6. I have two Honda 2200’s. Almost all photographers by these for lights because they are nearly silent. The 2200 is the largest size you can easily carry around. Otherwise get something larger if that isn’t an issue. Plenty of used Honda’s for sale. And you can convert them to propane if you don’t want to worry about gas spoiling over time. These have enough input current that I can start my very large power hungry fridge with no issues.

  14. Interesting article recently on Home Depot selling order & do-it-yourself cheap housing kit for $44K.

    that sends shivers down the spines of government agencies everywhere.

    (you think those brand new shiny govt. vehicles that they drive every year just magically appear ?!?
    . . among the slew of other benefits.)

    1. Home Depot Capitalizes On Tiny House Craze With $44,000 “Gateway Pad”

      FRIDAY, JUN 16, 2023 – 05:44 AM

      The Home Depot is cashing in on the tiny house craze as millions of Americans are priced out of homes due to the worst housing affordability crisis in a generation.

      Called the “Getaway Pad,” the 540-square-foot kit home has enough space for a living room, kitchen, one full bathroom, a bedroom, and a rooftop deck accessible by a spiral staircase. The “framing kit” costs $43,832.

      https://www.zerohedge.com/markets/home-depot-capitalizes-tiny-home-craze-44000-gateway-pad

      1. Yup just saw it. Here what Home Despot says:

        “Note: This listing only includes the Steel Stud Frame and NO ADDITIONAL MATERIALS.”

        Well that sux. No wonder it cost so little.

      1. I hope they aren’t using the Home Dpot cheap @ss tinfoil they call 25 ga. studs for that exterior framing because if they are I wouldn’t stand inside that “Getaway Pad” in anything above a 45 mph wind.

    1. An amazing conclusion by Sherlock Holmes type investigating officials!
      The question is:
      Did the building comply with codes and standards when built?

  16. Been reading your site for some time now Ben. I appreciate all the info in your links as well as the great comments. I was fortunate last time. We lived in Vegas and sold both our houses at the start of the 05 crash. Made a boat load, waited, rented, then bought a house on 5 acres in N Az in 2012, At a time when they were being given away in the Verde Valley.

    I’ve been thinking about this lately, don’t want to try catching falling knives, and the bottom still looks a long way down from here. That whole ‘its different this time’ thing keeps resounding in my brain. I have dry powder, would like to buy a few more houses when this shakes out.

    What if it really is different, this time? What if all we’ve heard abut the sh*t shot is true. If the population of N America falls by even 20% what will that do to the market. What would a 40% population reduction look like?

    I know RE is ultimately all local, so even if the great boomer die off materializes there might still be places with appreciation. Seems the only way RE is not doomed in most parts of N America is if the Fed buys it all and hands out keys to their pets. Can we say 50$ pizzas and 20$ cheeseburgers? IDK just my mind meandering as it sometimes does.

    2. I’ve run the numbers on 1 or 2 percent dying off over five years. Current immigration has already plugged it. The numbers would have to get much worse to make a dent. My hunch is that we would already be seeing worse numbers if things were going to really get bad. While the current injuries and deaths are unacceptable, it seems unlikely to me that we will see an overall population decline. We’ll see…

    3. I very rarely eat McDonalds, because the menu is so unhealthy.

      But this past Weds, I was on the road and super hungry so I did a drive thru.

      Got (2) cheeseburgers for and outrageous $6.73 that were *barely* edible.

      Is it just me or have the hamburgers gotten smaller? [Haven’t done a drive thru for a couple of years]. The two nearly inedible cheeseburgers were so small they seemed like finger food.

    4. I have dry powder, would like to buy a few more houses when this shakes out.

      So you want to speculate on housing, but just want to try to time it right?

  17. I hope NC gets smashed! It’s out of control….it seems every 10th car is out of state. My hood 3 miles south of Charlotte….I’m on state line has been insane. I’m not benefiting because I’m not selling….I bought 23 years at 34 years old to be my retirement home.

    Have a neighbor that just moved back to Minnesota…was here 3 years…great couple- chem engineer. He made 275,000 in 3 years. It will be interesting to see where it goes in the future. I’ll be watching.

    The address: 5 thirty 6 , beacon knoll ln. Fort mill sc 29708. I like it here, feel lucky to be here….or anywhere….just don’t see the hype.

  18. Per CNN:

    Why the Fed paused its rate hikes: It’s tired of playing a giant guessing game

    A giant guessing game?

    They know what is causing inflation and how to stop it; but they lack the stomach to do it. So instead they pretend to be flummoxed as to why prices keep rising.

    1. Higher inflation is their stated goal. They lowered it just so they have something to raise it later….fighting inflation was NOT the reason for hikes. It’s all smoke and mirror.

      1. Inflation in our system is a must or it all implodes. The trick is to not boil the frogs too fast. At current inflation rates you have tent cities and eventual unapproved riots. The wrong people might be affected.

  19. Via The Federalist, Will Scharf’s Twitter thread in a more reader-friendly format. Only preface and reasons quoted. I suggest reading the full piece.

    6 Reasons DOJ’s ‘Get Trump’ Documents Case Is Seriously Flawed:

    I am a former assistant U.S. attorney, worked on two Supreme Court confirmations, and clerked for two federal appellate judges. I have reviewed the indictment brought by Special Counsel Jack Smith in the documents case against former President Donald Trump, and have serious concerns with the way this case is being framed in the public and with some aspects of the way the prosecution itself is being conducted.

    Here are six major issues I see that need to be addressed by the special counsel’s team.

    1. Interplay Between the Espionage Act and the Presidential Records Act

    2. Classification and National Defense Information

    3. Walt Nauta and DOJ Misconduct

    4. Attorney-Client Privilege

    5. Timing: Why Now?

    6. Jack Smith: Why Him?

  20. Exclusive: 64% of Americans would welcome a recession if it meant lower mortgage rates
    Swapna Venugopal Ramaswamy
    USA TODAY

    Buying a home has become so unaffordable that most prospective homebuyers wouldn’t mind a recession if it meant lower mortgage rates, according to a new survey.

    Sixty four percent of Americans say they are “ready for a recession” if they are better able to afford buying a home, according to a study conducted by Harris Poll on behalf of Credit Karma, designed exclusively for USA TODAY.

    As homebuyers grapple with near 7% mortgage rates and home prices continue to hold firm due to a lack of inventory, the picture is looking grim for those looking to buy a home.

    Not surprisingly, 82% of those surveyed believe the country is facing an unprecedented housing affordability crisis. Perhaps that’s why more than 3 in 5 Americans who have never purchased a home (61%) don’t think they’ll ever be able to afford to do so.
    …
    https://www.usatoday.com/story/money/2023/06/16/recession-lower-mortgage-rates-prospective-homebuyers-say-yes/70322476007/

    1. most prospective homebuyers wouldn’t mind a recession if it meant lower mortgage rates

      I’m sure a significant percentage of those might mind being unemployed.

    2. “Better able to afford buying a home”… with what paycheck? Do they even know what recession means? It means your neighbor loses his job. In 2008 we were losing 800,000 jobs per month. And I wonder what all those youngsters who were laid off from Twitter are doing now. Only Fans?

      1. “Do they even know what recession means?”

        The younger generations don’t have a clue because the fed has printed away our recessions for a couple of decades, but it has now caught up with them. There’s so much debt now that the borrowers can barely pay the interest. “Game over, man! Game over!” —Hudson

    3. “more than 3 in 5 Americans who have never purchased a home (61%) don’t think they’ll ever be able to afford to do so”

      Leave the city.

      Keep renting?
      Move back to the Midwest?
      Leave the city?

      Let’s try leave the city and see what happens…

  21. Are you bracing yourself for higher interest rates, given hawkish central bank comments?

    1. The Financial Times
      Sovereign bonds
      Investors brace for higher rates after hawkish signals from central banks
      US Federal Reserve and European Central Bank warn battle against inflation is not yet won
      People outside the Federal Reserve building
      The US Federal Reserve skipped a rate rise for June but signalled support for two more rate increases later this year
      Mary McDougall in London and Kate Duguid in New York 55 minutes ago

      Investors are having to adjust to the prospect of interest rates across major economies staying higher for longer than expected, after central banks warned the battle against inflation is still not yet won.

      In a pivotal week in the monetary calendar, the US Federal Reserve surprised markets when it signalled support for two additional interest rate increases in 2023, even as it skipped a rise in June and kept its target range of between 5 per cent and 5.25 per cent. In the press conference following the meeting on Wednesday, chair Jay Powell said inflation “has not so far reacted much to our existing rate hikes, so we’re going to have to keep at it”.

      The news prompted traders in Treasury futures markets, who have long been expecting the Fed to have to make cuts later this year, to remove those bets.
      …

    1. City of San Diego refuses to pay private property damages made by SDPD SWAT
      Author: cbs8.com
      Published: 6:19 PM PDT June 15, 2023
      Updated: 6:19 PM PDT June 15, 2023

      A University Heights HOA filed a claim against the city to pay for damages to made to its gates after SWAT busted it down to arrest a fentanyl suspect.
      …
      https://www.cbs8.com/video/news/local/working-for-you/city-of-san-diego-refuses-to-pay-private-property-damages-made-by-sdpd-swat/509-c8881c2b-53ea-487e-8109-c6a0c6cd174b

      2. Imagine if someone who shares a wall with you has a lab in their condo and something goes wrong.

  25. ‘It could be that one or more company sells assets. It leads to other companies having to revalue assets and that can, in turn, mean that more companies need to make changes’

    That’s mean ol’ mister gravity for ya Niklas.

  26. So the house down the hill that originally went on the market back in October has been pending for 49 days. The sellers moved out a few days ago and the for sale sign has been taken down. Odd.

  27. ‘There is still a glut of properties for sale in the $900,000 to $1,500,000 price bracket – particularly in the wider Richmond area. These properties need to be competitively priced to meet the market, and so we’re continuing to see some price reductions to align price expectations with the market’

    That’s the spirit Craig, well said and keep up the good work!

  28. Memphis ’69: The 1969 Memphis Country Blues Festival | Full Documentary
    Fat Possum Records
    Premiered Aug 6, 2021
    @fat_possum & No Sudden Movements present ‘Memphis ’69’. This concert documentary, shot over 3 days in June of 1969, celebrates an American art form that unites us all. Feat. Bukka White, Furry Lewis, Fred McDowell & so much more.

    https://www.youtube.com/watch?v=aVhyv-S3R0g

    One hour and thirty minutes.

    DVD available here: https://store.fatpossum.com/collectio…

    03:14 Rufus Thomas with The Bar-Kays
    08:01 Bukka White
    09:58 Nathan Beauregard
    12:01 Sleepy John Estes & Yank Rachell
    14:00 Jo Ann Kelly & “Backwards” Sam Firk
    17:20 Son Thomas
    20:20 Sleepy John Estes & Yank Rachell
    22:07 Lum Guffin
    23:21 Rev. Robert Wilkins & Family
    26:09 John Fahey
    28:56 Sid Selvidge with Moloch
    30:53 John D. Loudermilk
    35:43 Furry Lewis
    42:35 Bukka White
    43:53 Piano Red
    47:05 Jefferson Street Jug Band with John Fahey and Robert Palmer
    50:26 Insect Trust
    52:25 Moloch
    56:22 Johnny Winter
    01:02:40 The Salem Harmonizers
    01:05:34 Mississippi Fred McDowell

    _____
    https://www.fatpossum.com/

    Fat Possum is a Record Label based in Oxford, Mississippi, New York & London

    We’re Trying Our Best…

    1. here is my current fav
      Christone “Kingfish” Ingram – Live At The Ground Zero Blues Club

      (Full Performance)Christone “Kingfish” Ingram and his band celebrated his 22nd birthday with an hourlong set from Clarksdale’s famed Ground Zero Blues Club in Clarksdale, Mississippi.

      https://www.youtube.com/watch?v=GaQ0IDLw6qs

    2. Thanks for the link.
      The opening act is Rufus Thomas. His “Do the funky chicken”, although not in the classic blues vein, is also good.

  29. Girl Sues Hospital for Removing Her Breasts at Age 13

    By Zachary Stieber
    June 15, 2023

    A hospital and doctors in California are facing a new lawsuit for removing the breasts of a 13-year-old girl after she claimed she was a boy.

    The defendants carried out “ideological and profit-driven medical abuse” when they prescribed her puberty blockers and hormones and, later, performed a double mastectomy, Charles LiMandri, one of the lawyers representing the plaintiff, Layla Jane, said in a statement.

    Jane, now 18, was influenced by people online when she was just 11 and told her parents that she was a boy, prompting them to ask for guidance from doctors.

    While three doctors said Jane was too young for cross-sex hormones, she was eventually referred to several other doctors who prescribed her puberty blockers and hormones. Within six months, they removed her breasts.

    The hormones and puberty blockers were given based on a single, 75-minute session with Susanne Watson, a psychologist, according to the suit. Dr. Winnie Tong, a plastic surgeon, concluded after a 30-minute session that Jane could have her breasts removed.

    Doreen Samelson, a psychologist not named as a defendant, by contrast, told Jane and her parents that she couldn’t receive puberty blockers or cross-sex hormones due to factors such as her age.

    Jane, whose given name is Kayla Lovdahl, has since “detransitioned,” or resumed identifying as a girl.

    https://www.theepochtimes.com/girl-sues-hospital-for-removing-her-breasts-at-age-13-post_5335492.html

    1. “It’s not employers’ responsibility to ‘fix’ San Francisco,” Connie Loizos of TechCrunch wrote in 2022. “At the same time, there might not be much left to come back to if they wait too long.”

      SF Civic leaders are suffering from an Epidemic of Cowardice.

      1. Mayor London Breed made a hollow promise to improve safety. No one is buying it. I’m sure other retailers and businesses are quietly preparing to close up shop and leave. As tax revenues shrivel up she will have to decide where to cut spending.

        1. Let’s do a little extrapolating on the available data. More and more businesses will close. Then tourism will also decline. Tax revenues will go down and so forth. There will still be millions of residents in the city who own. They can’t go anywhere.

          But the number of homeless keeps going up. When the city becomes boarded up, what are you going to do with all of the homeless bums? Put them in concentration camps? Round them up and cart them away?

          This is what all of these cities are facing–what are they going to do with all of their “homeless residents”.

          1. This is what all of these cities are facing–what are they going to do with all of their “homeless residents”.

            The Romans built Colosseums.

          2. Then tourism will also decline.

            Will? It has already been doings so. Most conventions have left town. There’s a reason why hoteliers are surrendering their mortgaged buildings to lenders.

            That giant hotel that just closed had what, 2000 rooms? So, 2000 rooms x 365 days x the room and sales tax not collected (say $60) adds up to $43 million dollars. For a single hotel. I’ll bet all the lost sales and room taxes on all hotels adds up to a billion, if not more. Then there’s the restaurants, taxis, and other businesses that aren’t tax money to city hall.

            Sure, Breed and her inner circle won’t go hungry, but a lot of muni employees are going to get pink slips.

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