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Their Household’s Largest Single Investment Is, In Many Cases, No Longer Worth What They Thought It Would Be

It’s Friday desk clearing time for this blogger. “The value of real estate in the heavily damaged coastal areas have fallen dramatically, with total assessed value 40% in Fort Myers Beach and nearly 32 % lower on Sanibel. Home listings and sales in Collier, excluding Marco Island, saw an overall median closed price decrease of 1% to $600,000 compared to $607,500 in May 2022. There were 1,045 price decreases and a 31% decrease in new listings reported during the month. ‘More and more sellers in Naples are starting to adopt a mindset that they need to be open to negotiate on price,’ Jillian Young, president of Premiere Plus Realty, said with the NABOR report.”

“For cash buyers who’ve been waiting to jump into red-hot Texas property markets like Austin, Dallas and San Antonio, this might be the moment to pounce. ‘At the luxury end, most sales are cash. Those buyers can be pickier,’ said Roxann Taylor, an agent at Engel & Völkers Southlake Dallas. ‘They’re doing inspections. They’re asking for repairs. And if they have a second thought, they will terminate.’ ‘There is a culling of buyers because of interest rates,’ said Ryan Rodenbeck, owner of Spyglass Realty in Austin. ‘There’s a bit more inventory, especially in luxury areas’ including Barton Hills, Lake Austin and Old Enfield, he said. ‘If a luxury home’s not selling, it’s usually because people are pricing it for the market a year ago rather than now,’ said Damon Williamson, managing partner of The Agency in Dallas. ‘Some sellers still think we’re in a seller-based market, which isn’t true.'”

“Las Vegas Realtors President Lee Barrett admits last year and 2021’s numbers in particular — the end of a wild swing in real estate brought on by the COVID-19 pandemic — have skewed data, however, he is optimistic this is now the start of a ‘market stabilization’ period. For example, the median price of a single-family home sold during June in Southern Nevada was $440,900, which is a 0.3 percent drop from May, but down 8.1% from June of last year. Another peak seems to have been reached, he added, as it appears the price surge has come and gone. ‘After increasing gradually for a couple of months, it looks like local home prices have hit a plateau, at least for now.'”

“Boston is heavily dependent on its office buildings, with property taxes from the sector generating more than one-fifth of the city’s total revenues this year. As those buildings decline in value and show signs of distress, they could endanger Boston’s fiscal health. Office buildings in Boston and across the country are expected to lose a significant amount of their value in the coming years, an issue that has already created budget crises in other struggling coastal cities. Cities like New York, San Francisco and Milwaukee are also facing huge budget deficits due to falling commercial property valuations.”

“Thomas Jensen, executive director of Boston Appraisal & Consulting LLC, said he doesn’t think the city is fully prepared for the loss in property tax revenue that will occur in the office sector. ‘When things crash, it’s almost like the same cycle where people first are in denial. They’re like wishful thinking,’ he said. And then when they realize it’s going to get worse before it gets better, they realize that it hit the fan. Then they still have partial wishful thinking. Then they finally come to the realization that ‘OK, we’re in over our heads, and what do we do? What are our options? Is there any way to get out of this?'”

“Greater Toronto real estate wasn’t looking as confident as it had been recently. Prices remain 11.4 (-$150,700) lower than the peak. We might be looking at a recovery, but we’re just as likely looking at the ‘bull trap’ phase of an asset cycle. Only time will tell. At the same time, some affluent suburbs returned to falling prices—one dropping as much as $50k in June. A typical home in Oakville fell a whopping 3.4% (-$50,000) in June, a big shift in sentiment. Oakville wasn’t the only suburb to suddenly begin printing lower home prices. Rounding out the five largest drops over $20k was Halton Hills (-3.0%; -$36,700), Halton Region (-2.9%;-$36,000), Milton (-2.6%;-$29,400), and Burlington (-2.5%;-$26,600). These aren’t cottage country markets either, but close suburbs.”

“Canary Wharf was once seen as the future of London – now it’s the location that’s seen the greatest loss in the housing market with fears that its rental sector will drop too. Prices in the E14 postcode, dominated by Canary Wharf, have dropped 17 per cent in the past year according to a survey by London agency Benham and Reeves. Now HSBC is to vacate its 45-storey global headquarters after 20 years, taking its 8,000 staff – many of which now share their working hours at their homes as well as in the office – to smaller premises in the City of London.”

“Luxembourg’s central region, which includes the capital city and already has the country’s most expensive property, saw prices fall by 7.3% between the second quarter of this year and the same period in 2022, according to AtHome. Every region of the country saw a drop in sale prices, with the biggest fall in the west of the country, where the average cost of a home decreased by 11.5% over the 12 month period, with the smallest fall in the east, which saw average prices drop almost 5%.”

“The biggest dropoff lately has been in consents for new stand-alone homes. New Zealand had 18,734 stand-alone houses consented in the May year, down 24 per cent compared with the year ended May 2022. ‘We expect the downtrend in consent issuance will deepen over the coming months. As we’ve highlighted before, financial conditions in the construction sector have become a lot tougher. House prices have tumbled over the past year, dropping by 17 per cent across the country,’ said Satish Ranchhod, a Westpac senior economist. ‘At the same time, operating costs for construction firms have skyrocketed, rising by around 9 per cent over the past year. On top of that, interest rates have risen to their highest levels in more than a decade.'”

“A tradie who is $40,000 in the hole after the collapse of a major building company has been left fuming as customers have received government handouts while he has been left with nothing. In March, Australia’s 13th largest home builder Porter Davis Homes went into liquidation, placing 1700 projects and another 779 empty blocks of land in jeopardy across Victoria and Queensland. Catherine Haddo’s husband is one of those unsecured creditors, after doing contracting painting jobs for Porter Davis for 18 years. That means not only is he $40,000 out of pocket after the company’s demise, but all his work has also dried up in the month since. ‘He put all his eggs in one basket and got screwed,’ Ms Haddo, 48, told news.com.au.”

“CK Asset Holdings – the flagship property developer of billionaire Li Ka-shing and his family and one of Hong Kong’s largest builders – will soon launch its The Coast Line residential project in Yau Tong, becoming the latest company to offer a new development in the city’s weakening housing market. The Coast Line’s launch comes amid a decline in Hong Kong’s lived-in home prices. Prices of such properties fell in May for the first time this year, as looming interest rate increases cast a long shadow over a market facing a glut of newly built flats. Lived-in homes saw sales plummet 13 per cent to 2,411 in June, which was the weakest month of 2023. Non-residential properties saw a 5 per cent decline in sales to 735 in June from a month ago. CK Asset is expected to give a discount of around 5 per cent, analysts said.”

“The small eastern city of Zibo in Shandong province is experiencing an outdoor barbecue craze. According to economists, this is an example of people choosing a cheap, tasty, option at a time of great pressure on household incomes. University graduates are being hit especially hard by China’s economic doldrums, with youth unemployment hovering at or above 20%. Some students are feeling nervous about their futures. ‘Yes, I’m worried,’ says one woman who’ll soon graduate. ‘There’s a lot of competition. It’s hard to find a job. All my classmates feel the same pressure.'”

“For those who have jobs, a big reason for their reluctance to spend big is economic security. They’re concerned about the potential to join the ranks of the unemployed, and their household’s largest single investment is, in many cases, no longer worth what they thought it would be. To see this first-hand, we drive a few hours east of Zibo to the outskirts of a much larger city, Qingdao. Here, a property explosion hasn’t matched real demand from buyers or renters, and the result has been huge housing estates built with very few residents in them.”

“A woman is selling cold noodles from a portable stand outside her housing complex where she has few neighbours. A few years ago, her husband bought a flat here after moving to Qingdao to give their child a better start because they heard the schools would be good. I ask her if she’s worried about the value of her home collapsing. ‘Of course I’m worried,’ she says. ‘But what can I do?'”

“Nearby a couple who are street cleaners have stopped for lunch. They point to the huge estate behind them and say that nobody lives there. Across the road there is a small forest of concrete towers without paint, without windows and with window frames now looking the worse for wear, having been exposed to the elements. ‘Construction just stopped there one day last year,’ the man says. According to his wife, the entire suburb is pretty dead. ‘There’s nothing here. There’s no petrol station. You have to go a long way for fuel. It’s really not convenient to live here,’ she says. According to a local real estate agent, sales volumes have halved in the area in recent years. ‘Prices are down because the market is saturated,’ she says. ‘Too many homes were built and it’s hard to sell them.'”

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This Post Has 119 Comments

  1. ‘They’re doing inspections. They’re asking for repairs. And if they have a second thought, they will terminate’

    That’s the spirit buyers! Get their hopes up and dump em.

  2. ‘Prices remain 11.4 (-$150,700) lower than the peak. We might be looking at a recovery, but we’re just as likely looking at the ‘bull trap’ phase of an asset cycle’

    There’s a graphic of this cycle at the link and it’s clear K-da knife catchers got fooked – again – by the REIC. Of course their greedy mindset meant it didn’t take much encouraging. Oh and the banks are covering up FB’s with 90 year loans in these igloo clusters! Sound lending!

    1. Morning Bid: Battered bond market braces for payrolls
      Reuters
      July 6, 2023 9:50 PM PDT
      Updated 8 hours ago
      An employee hiring sign with a QR code is seen in a window of a business in Arlington, Virginia, U.S., April 7, 2023.
      REUTERS/Elizabeth Frantz
      A look at the day ahead in European and global markets from Tom Westbrook

      Bond markets are in a world of pain, with yields catapulted to decade highs across developed markets.

      The trigger is not immediately clear, selling having begun before private U.S. payrolls data landed on Thursday, but the momentum has stopped out those positioned for peak rates and has hit the longer end of the curve particularly hard.

      Non-farm U.S. payrolls due at 1230 GMT will present another conundrum that’s unlikely to end well for bonds. Is a strong figure good for risk, since it means recession is being avoided? Or is it bad news because it implies higher interest rates?

      Dealers in Asia reckoned either is bad for bonds, which were under pressure around the region. Aussie ten-year yields joined gilt yields at decade highs.

      Treasuries nursed losses from a two-day rout.
      …
      https://www.reuters.com/markets/global-markets-view-europe-2023-07-07/

      1. Unless the Fed goes the hyperinflation route, the pain is just starting for the bond market. I’m seeing CRE loans of 12-18% rates outside of the traditional lending space. FB’s

        1. “…CRE loans of 12-18%..”

          (Understandable as ie. San Francisco vacancy rate is around 30%)

          Could residential not be far behind with major increases?

    2. Updated Fri, Jul 7 2023 9:14 AM EDT
      Stock futures fall, head for losing week on fears Fed will resume hiking rates
      Samantha Subin
      Brian Evans
      Traders on the floor of the NYSE, July 6, 2023.
      Source: NYSE

      Stock futures fell on Friday and headed for a losing week as a slightly weaker-than-expected June jobs report failed to subdue fears that the Federal Reserve may start hiking rates again.

      S&P 500 futures lost 0.3%, while futures tied to the Dow Jones Industrial Average dropped 97 points, or about 0.3%. Nasdaq-100 futures traded 0.3% lower.

      The Labor Department’s June report showed payrolls increase less than expected and a cooldown in growth from May. Nonfarm payrolls rose by 209,000, while the unemployment rate came in at 3.6%. Economists polled by Dow Jones had anticipated 240,000 positions added and a similar jobless level. The unemployment rate also declined from 3.7% in May.

      But parts of the report could give the Federal Reserve reason to resume hiking later this month. The closely watched wages numbers came in slightly stronger than expected. Average hourly earnings increased by 0.4% in June and 4.4% from a year ago.

      “Weaker than expected jobs data on the headline front, wasn’t supported by some other data in the report,” wrote Peter Tchir of Academy Securities in a note. It was “a mixed enough report that the Fed can probably go 25 [basis points] at the next meeting, but we don’t need to price in much more than that.”
      …
      https://www.cnbc.com/2023/07/06/stock-market-today-live-updates.html

      1. “Stock futures fall, head for losing week on fears Fed will resume hiking rates”

        How can Mr Market possibly be caught off guard by the Fed doing exactly what they said they were planning to do?

        1. “It is difficult to get a man to understand something, when his salary depends on his not understanding it.”

          1. It’s really a huge advantage to not have to agree with anyone else on where you believe markets are going!

          1. Because he is. He’s so full of chit his eyes are brown. He talked a big game then wilted.

        3. The financial media (controlled by the big bankster boiz) is accustomed to leading the interest rate charge, not following. Remember all those rolling chirons form ~2002 which read “Greenspan to lower rates by 25 basis points question mark hint hint“

    3. TREASURIES-US yields lose steam after payrolls report
      Chuck Mikolajczak
      Fri, July 7, 2023 at 8:12 AM PDT·2 min read
      (Updates prices, adds Fed rate hike expectations, graphic)
      By Chuck Mikolajczak

      NEW YORK, July 7 (Reuters) – U.S. Treasury yields moved lower on Friday, although longer-dated yields were higher on the session, after a reading on the labor market calmed concerns the Federal Reserve would aggressively raise interest rates.

      Nonfarm payrolls increased by 209,000 jobs in June, the Labor Department said, shy of the 225,000 estimate of economists polled by Reuters. The unemployment rate slipped to 3.6% from 3.7% in May, indicating the labor market remains tight.

      The yield on 10-year Treasury notes was down 1.7 basis points to 4.024% after earlier rising to 4.094%.

      Yields jumped on Thursday after a flurry of data, including a much stronger-than-expected report on private payrolls in the ADP National Employment that fueled fears the Fed would need to be hawkish in taking steps to control stubbornly high inflation.

      “The market kind of overreacted a little bit and we’ve kind of seen that reverse today when we kind of got the calm down, if you will, after the actual jobs report came out,” said Sam Millette, Fixed Income Strategist at Commonwealth Financial Network in Boston.

      “We have seen a lot of news come in that the economy has been a little bit more resilient than expected so, it could have been sort of a last straw on the camel’s back situation with ADP yesterday, but today’s report sort of poured some water on that.”

      The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was down 10.4 basis points at 4.902% after hitting a 16-year high of 5.12% on Thursday.

      Expectations for a 25 basis point rate hike from the Fed at its July 25-26 meeting stand at 94.9%, up from 91.8% a day prior, according to CME’s FedWatch Tool. However, traders priced in a lower chance of any further increases later in the year.

      The yield on the 30-year Treasury bond was up 1.8 basis points to 4.021%.
      …
      https://finance.yahoo.com/news/treasuries-us-yields-lose-steam-151210359.html

    4. This classic recession indicator just hit its lowest level since 1981—here’s what it means for you
      Published Fri, Jul 7 2023 10:13 AM EDT
      Ryan Ermey

      Everyday investors likely don’t pay too much attention to the so-called “yield curve,” which financial professionals use to compare the yields on similar bonds across short- and long-term maturities.

      So when the yield curve does make headlines, it’s generally because it’s setting off some alarm bells among market watchers.

      It’s been a year since the yield curve for Treasurys “inverted.” In general terms, that means short-term bonds are paying higher interest rates than long-term bonds. Earlier this week, the disparity between two bonds in particular was the largest investors had seen since 1981.

      Essentially, the curve had been inverted, and now it’s even more so.

      So what’s the big deal? An inverted yield curve is a classic signal that a recession is on the horizon.

      “In fact, since 1978, the yield curve has inverted six times (not counting the current inversion period) and has preceded a recession each time,” Megan Horneman, chief investment officer at Verdence Capital Advisors, wrote in a recent note.

      Here’s what you need to know this time around.

      What’s the yield curve again?

      The yield curve is an easy, graphic way to understand the difference between yields on a particular type of bond across various maturities. Under normal economic circumstances, the curve trends upward: short-term bonds provide less income to investors because holding an investment for a shorter time involves less risk.

      A downward-tending or “inverted” yield curve means that you earn less on securities that you plan to hold for longer, and is a sign that something in the economy is amiss.
      …
      https://www.cnbc.com/2023/07/07/yield-curve-inverted-the-lowest-since-1981-what-it-means-for-yo.html

  4. ‘They’re concerned about the potential to join the ranks of the unemployed, and their household’s largest single investment is, in many cases, no longer worth what they thought it would be. To see this first-hand, we drive a few hours east of Zibo to the outskirts of a much larger city, Qingdao. Here, a property explosion hasn’t matched real demand from buyers or renters, and the result has been huge housing estates built with very few residents in them’

    an article of faith
    noun phrase
    : something that is believed without being questioned or doubted
    For many it is an article of faith that the economy will begin to improve soon.

    For years it was an article of faith that just cuz Chinese had everything tied up in airboxes, pooh bear couldn’t let it crater. Well embrace the sux to be you!

    ‘They point to the huge estate behind them and say that nobody lives there. Across the road there is a small forest of concrete towers without paint, without windows and with window frames now looking the worse for wear, having been exposed to the elements. ‘Construction just stopped there one day last year,’ the man says. According to his wife, the entire suburb is pretty dead. ‘There’s nothing here. There’s no petrol station. You have to go a long way for fuel. It’s really not convenient to live here,’ she says. According to a local real estate agent, sales volumes have halved in the area in recent years. ‘Prices are down because the market is saturated,’ she says. ‘Too many homes were built and it’s hard to sell them’

    I think enough years have passed to prove Dan had his head up his a$$. He told us, this is just how China builds cities! It sure is Dan:

    via GIPHY

    1. For many Californians, it is an article of faith that real estate always goes up.

    2. ‘They point to the huge estate behind them and say that nobody lives there. Across the road there is a small forest of concrete towers without paint, without windows and with window frames now looking the worse for wear, having been exposed to the elements’

      I did mention to Dan my opinion that these sh$tholes would rot in the sun. Central planning! Nothing about the environmental debacle BBC?

    2. Related article.

      Washington Post — Once hailed for decriminalizing drugs, Portugal is now having doubts (7/7/2023):

      https://archive.li/3iXlM

      It also discusses the failed similar policies in Portland, OR.

      1. Who woulda thunk that cocaine, heroin, meth, and fentanyl would destroy the fabric of society?

  6. ‘After increasing gradually for a couple of months, it looks like local home prices have hit a plateau, at least for now.’”

    The REIC dissemblers are recycling the same lies they trotted out during the 2007 housing bubble bust.

    1. The REIC dissemblers are recycling the same lies they trotted out during the 2007 housing bubble bust.

      That’s okay, I’m sure it’s a permanently high plateau. All is well.

  7. Then they finally come to the realization that ‘OK, we’re in over our heads, and what do we do? What are our options? Is there any way to get out of this?’”

    You can stamp yer little feet.

    1. Dutch auction is a sure fire way to sell any property, no matter how unwanted.

    1. I see this a lot locally. Massive, massive overpaying because well I have no idea. I think they are completely screwed. Somehow they appraise, but they are hosed forever. They probably got a mortgage in the mid 6’s and are never going to be able to refi. And while some of them are out of towners (who don’t know any better) some are local and should know better. Paying over list, EVEN NOW. Insane.

      1. “The rapid development and widespread deployment of COVID-19 vaccines, combined with a high number of adverse event reports, have led to concerns over possible mechanisms of injury including systemic lipid nanoparticle (LNP) and mRNA distribution, spike protein-associated tissue damage, thrombogenicity, immune system dysfunction and carcinogenicity.”

        100% safe and effective.

        How soon can we start hanging the people responsible for this?

    1. If airliners were as “safe” as the jab, they would all be grounded until further notice.

      1. ‘Here are the Western states that posted the deepest combined home equity losses, CoreLogic reported.

        Washington (-$74,300)
        California (-$59,600)
        Utah (-$37,700)

        “The equity losses in those states reflect decelerating home prices, with all three posting annual declines in February and March,” CoreLogic said in its report.’

        Oh the humanity!

        1. The equity losses

          Exceeded only by the crushing carrying costs for those hot potato investments.

          1. LOL! Without massive appreciation to offset HODLing and transactions costs, housing investment is a surefire way to lose alot of money…alot!

          2. The risks involved in real estate are never taught or even really discussed. We have this culture that the American dream is all about home ownership, and you must own at any cost. So is it any wonder that in every bust the majority stare about themselves in shock and bereavement wondering “what the hell just happened?!”

  15. “This is a record for the entire independent history of Ukraine. An incredible achievement for a country at war… ”

    Ukraine’s Gold and Currency Reserves Now Largest Ever, Says Central Bank

    OLIVER JJ LANE
    7 Jul 2023

    Ukraine’s National bank says it now holds nearly $39 billion in foreign reserves, the highest level in the history of the country as an independent nation, as it continues to receive large deliveries of cash from allied nations.

    There was a $38.99 billion reserve held by Ukraine as of July first, the National Bank of Ukraine said in their latest figures, up from $37.3 billion in June. The size of the reserve is the largest since the fall of the Soviet Union, and beats the previous 2011 record of $38 billion.

    Per the National Bank, this reserve was achieved “thanks to sustained and regular inflows from international partners”, the receipts of which exceeded the central bank’s outgoings of paying down foreign-held debt, and selling currency reserves to balance the economy. The bank cited some of the June incomings which included $1.6 billion given to Ukraine’s central bank by the European Union, $1.2 billion from the United States, and $886 million from the World Bank.

    The reserve is held in foreign currencies and gold, reports the Polish financial newspaper Rzeczpospolita.

    Reuters reports Ukraine has received $23.6 billion in cash from Western partners this year so far.

    Bank governor Andriy Pyshnyi thanked Western partners for the cash injections in a statement on the figures on Friday morning. He said:

    https://www.breitbart.com/europe/2023/07/07/ukraines-gold-and-currency-reserves-now-largest-ever-says-central-bank/

  16. “Cities like New York, San Francisco and Milwaukee are also facing huge budget deficits due to falling commercial property valuations.”

    Given their budget hole, how will San Francisco come up with the funds needed to pay millions in reparations to descendants of slaves?

    1. More to the point, how will SF pay for reconstruction after the Gimme Dats riot when dey find out dey not getting their promised reparations.

    2. Media
      Published July 6, 2023 12:18pm EDT
      San Francisco newspaper endorses reparations for Black Californians: ‘Long overdue’
      Black Californians could receive $1 million in payments under task force recommendations
      By Kristine Parks | Fox News
      Final reparations task force meeting in California gets heated: ‘Time for a divorce!’ Video

      Several of the attendees at the California Department of Justice’s final Reparations Task Force meeting created a scene during the public comment section of the event Thursday, demanding reparations from the board.

      A San Francisco newspaper argued there was “no doubt” California owed Black Californians compensation after the statewide reparations task force released its final recommendations last week.

      In its 1,100-page report, the task force argued that slavery and historical injustices against Black Americans have created lingering consequences on society today. They recommended certain qualifying Black Californians could receive up to $1.2 million in reparations.

      The San Francisco Chronicle Editorial Board agreed a debt was owed, arguing “Yes, California owes Black residents reparations,” in a Thursday article. The paper dismissed critics of the costly proposal as the state faces a $32 billion budget deficit.
      …
      https://www.foxnews.com/media/san-francisco-newspaper-endorses-reparations-black-californians-long-overdue

      1. “Final reparations task force meeting in California gets heated: ‘Time for a divorce!'”

        Yes please.

      3. The paper dismissed critics of the costly proposal as the state faces a $32 billion budget deficit.

        This has to be a setup for statewide rioting, as it is simply impossible for California to pay it. I mean, they are 30 billion in the hole right now. What are they going to do? Sell $2T in bonds? Who would buy them?

    3. San Francisco reparations panelist calls straight white men are ‘serial killers’
      By Yaron Steinbuch
      July 4, 2023 8:00am Updated
      Nikcole Cunningham, a member of San Francisco’s African American Reparations Advisory Committee, called straight white men a “abusive” and “serial killers.”
      SF.GOV

      A member of San Francisco’s slavery reparations committee blasted straight white men as a “danger to society” — and claimed “white supremacy is ingrained in the DNA” of America.

      Nikcole Cunningham, who serves on the California city’s 15-person African American Reparations Advisory Committee, launched the broadside against straight white men in an interview with The Daily Telegraph.
      …
      https://nypost.com/2023/07/04/calif-reparations-panelist-says-straight-white-men-are-danger-to-society/

      1. “San Francisco reparations panelist calls straight white men are ‘serial killers’”

        I are a straight white man, but I are not a serial killer.

        1. San Francisco newspaper endorses reparations for Black Californians: ‘Long overdue’

          You and I both get crackin’ then, we’re falling behind!

          1. I are a straight white man, but I are not a serial killer.

            Dang it, meant my “You and I both get crackin’ then, we’re falling behind!” reply to fall under that quote.

      2. white men are _______________ _____________ & _____________
        (insert current trendy insults)

        . . . but we’ll take the money.

        and STILL COMPLAIN & MAKE EXCUSES for another 300 years.

    1. 100% safe and effective?

      Half of Reddit, all the people bragging about their “booster” doses of turbo cancer will be dead within five years.

      But they’ll all still be voting for decades beyond that…

    1. On a personal note, I grew up in that neighborhood in the 60’s and 70’s. We lived in a small house and my dad supported my mom and my six brothers and sisters on one blue collar income. Other than our house, my parents didn’t finance anything. I fear those times are gone for good. Everyone is programmed to jump on the debt treadmill and stay on forever, or until the next refinance.

      1. Also programmed to hang on during bubble collapse periods, possibly with the assistance of personalized bailouts.

      2. “until the next refinance”

        See also: the entire consumer economy of the metro Denver Front Range.

        It’s all debt and lies, and more debt. These big money talkers don’t have two nickels of actual CASH to rub together.

        1. Judging by the number of $50K+ vehicles on the road one could be forgiven for correctly thinking that the median HH income in Dumver approaches $200k

          1. A 4-dr, leather appointed, lifted pickup truck with an 84-month loan is a rite of passage around my hard scrabble town.

    2. “you can meet and entertain your neighbors that reside in the multiple nearby homeless encampments”

      🙂

    3. Last panel “Interested in touring this home?”

      Should be changed to:

      “Interested in touring this home? Hasmat suits provided”

    4. Both units are currently rented as month to month. Full Rehab Needed.

      Wait, so people live there?

      1. Ha! Our landlord replaced our dishwasher and kitchen sink this week. My first reaction is who are you, and what have you done with our landlord?

          1. My husband and I always joke about her cheapness. It’s fine, I get it.

            Whenever something’s replaced, I look at where she bought it, sort price from low to high and there it is, at the top of the list. Dishwasher is nice, quiet. No bells and whistles, but who needs that anyway? One avocado appliance left.

            Sink’s good too. Large, one-holer 😁

  19. Toronto’s Real Estate Market ‘Slips’: Prices Reverse in June
    Mark Mitchell – Mortgage Broker London Ontario
    Jul 7, 2023 CANADA

    Toronto’s real estate market slowed in June, with the average and median prices seeing the first price reversals since the Bank of Canada raised rates last month.

    Links:

    Market Watch: June, 2023:

    https://trreb.ca/files/market-stats/m…

    Market Watch Archive:

    https://trreb.ca/index.php/market-new…

    Toronto home prices fall in June as borrowing costs rise:

    https://ca.finance.yahoo.com/news/tor…

    The Housing Market Is Still Hot But Likely to Cool – Toronto Area Real Estate Market Update – June 2023:

    https://www.movesmartly.com/articles/…

    ‘The market is incredibly fragile.’ Rise in GTA new-home sales in May threatened by interest rate hike in June:

    https://www.thestar.com/real-estate/2…

    Home sales, prices up from last June but down from May: Toronto real estate board:

    https://www.cbc.ca/news/canada/toront…

    Toronto housing market slips as Bank of Canada decision looms:

    https://financialpost.com/real-estate…

    Policy interest rate:

    https://www.bankofcanada.ca/core-func…

    The Bank of Canada just ‘stomped’ on the housing market rebound:

    https://financialpost.com/real-estate…

    Bank of Canada to raise rates 25 basis points on July 12, possibly the last: Reuters poll:

    https://www.reuters.com/markets/rates…

    https://www.youtube.com/watch?v=nP00ljo5RSg

    6:29.

  20. Did private equity scam artists con you into buying a home you could not afford, only to then evict you the moment you missed a single payment?

    1. Private equity sold them a dream of home ownership. They got evicted instead.
      Rebecca Burns Jul 7, 2023, 5:30 AM ET
      Woman standing in front of a house.
      Erica Hines-Denson in front of the Home Partners home near Atlanta she lost in 2021 Irina Rozovsky for Insider
      Erica Hines-Denson had no idea how bad the odds against her were.

      Student loans and a recent divorce had dinged her credit score. But she and her new husband, Elquinton Denson, were building a blended family and they dreamed of buying a home in the greater Atlanta area. After lenders turned them down for a traditional mortgage, a realtor told her there might be another way. Something called a lease-purchase, or rent-to-own, agreement.

      “This was our way to own a home finally,” Hines-Denson said. “It was like we found a loophole.”

      It took just a weekend of house hunting to find a house they loved: a stately four-bedroom, 30 miles southeast of Atlanta, with a built-in bar in the basement where they pictured hosting family and friends. Listed at $275,000, it was in their price range.

      There was a catch. The couple wouldn’t be buying. Instead, a Chicago-based company called Home Partners of America would make a cash offer and rent the house back to them, with an option to buy within five years.

      Home Partners supplied a lengthy agreement detailing the terms, including built-in annual increases to their rent and to the eventual purchase price. The document was more than 50 pages long; Hines-Denson said the company gave them just 24 hours to review it and sign. But the opportunity seemed too good to pass up. “You’re like, ‘Oh Lord, this is my chance,'” she said. “So you’re moving quick.”

      The deal quickly turned sour. The company locked her out of the online payment portal after she missed a single month’s rent, adding hefty fees that made it impossible to catch up. After she missed a second month, the company swiftly filed for an eviction.

      While a judge stayed her legal case under the federal COVID-19 eviction moratorium, the company’s management agency continued to call, Hines-Denson said, threatening to remove her belongings. In a final insult, the company kept their two-month security deposit when she and her family finally moved out.

      Private equity moves in
      Home Partners, which launched in 2012, now owns more than 28,000 homes nationwide. It is the largest of a handful of new companies promising “a clear path to homeownership” for families not yet ready or able to buy.
      …
      https://www.insider.com/home-partners-rent-to-own-low-success-rate-2023-5

      1. she missed a single month’s rent

        My father taught us the landlord gets paid first, never mess with a roof over your head,

      2. She should have just squatted there for years without paying and wrecked the place before she left. Some of these private equity people are scummy locusts. This company sounds like one of them

  21. Primary residence is an expense not an investment. Not sure why that is not common knowledge, like everyone knows as soon as you drive a car off the lot it loses value. With the right timing you can make money from your primary residence, but should not be looked at as an investment.

    1. Housing should be looked at as a very long-term investment that returns 1-2%/year. Very few houses lose money over a 30-year time period. Of course nobody pays off a mortgage anymore… well except those boring Fedgov workers.

      1. This time is different, as we are in a price bubble akin to Tulipmania in 17th century Holland, a historic anomaly. The 1-2% average appreciation rule is unlikely to apply when this finally winds down.

      1. get out of the communist hellhole.

        As living in Clownland becomes increasingly unbearable, I expect the exodus will continue to grow.

    2. “Would you buy this house and pay ~$9k per month”

      I’m in.

      That rusting 1980s Sears metal shed in the backyard put it over the top for me.

      1. The funny thing is that the cost to replace the shed is probably less than the cost to stage the place with furniture.

    3. Those Milpitas homes were originally built and sold to GM and Ford automotive assembly plant workers who mostly supported a stay at home mother and kids.

    1. Yahoo
      Fortune
      Zillow and Redfin gave up on flipping homes. Opendoor CEO Carrie Wheeler is committed to the model: ‘Nothing about our mission has changed’
      Emma Hinchliffe, Claire Zillman
      Fri, July 7, 2023 at 5:01 AM PDT·3 min read
      In this article:

      Good morning, Broadsheet readers! Twitter dukes it out with Meta’s Threads, New York City seeks to regulate A.I. in hiring, and Opendoor’s CEO navigates a tricky housing market. Have a restful weekend.

      – Just keep building. In 2022, the real estate technology business Opendoor became a Fortune 500 company for the first time. It debuted at No. 425 with $8 billion in revenue. At the end of that year, the company’s CFO Carrie Wheeler took over as CEO from cofounder Eric Wu. That meant that in 2023, Opendoor was a woman-led Fortune 500 business for the first time.

      Opendoor was one of 52 Fortune 500 companies to be led by a female CEO when the Fortune 500 was published last month. And Wheeler was one of 12 women hired to those CEO jobs within the past year.

      On this year’s Fortune 500, Opendoor ranked No. 266 with $15.6 billion in revenue. That’s a big leap from the previous year—but it’s been a rocky journey. The housing market has been chaotic and unstable amid rising interest rates. For a company whose value proposition depends on homeowners being willing to sacrifice some profit in exchange for ease and convenience, low home prices are a challenge. Tech-based peers in the real estate industry, like Zillow and Redfin, long ago gave up on flipping homes.

      “The macro is uncertain, but real estate isn’t going away,” says Wheeler. “People are still moving…So nothing about our actual focus and mission has changed…We’re focused on making sure that we are going to leave this cycle better than we came into it.” She says Opendoor is focused on becoming “leaner and meaner”—and indeed, the company laid off 22% of its workforce in April.
      …
      https://finance.yahoo.com/news/zillow-redfin-gave-flipping-homes-120107874.html

  24. In 2003 a nice Southern California home in a very good neighborhood would run about 450K with a 6% mortgage. Upgrading that home to something significantly better would have been an extra 150K. Today that 450K home is now 1.5m and to buy a significantly better home in today’s market would take an extra 1 to 1.5m to upgrade. That’s 10 times what an upgrade was 20 years ago. This is a big reason why recent buyers are trapped. Their only option is to downsize or flee to cheaper areas.

  25. Watch Tucker Carlson’s First Interview Since Leaving Fox

    Tucker talks Ukraine war, Jan. 6th and much more!

    Kelen McBreen | INFOWARS.COM Friday, July 07, 2023

    Former Fox News host Tucker Carlson joined actor and activist Russell Brand Friday in his first interview since leaving the legacy media outlet.

    Segments of the podcast are already being clipped out and widely shared online.

    For example, Carlson revealed the Capitol Police Chief admitted to him personally that there were loads of federal agents embedded in the crowd on January 6th.

    https://www.newswars.com/watch-tucker-carlsons-first-interview-since-leaving-fox/

    1. U.S. taxpayers paying for cluster munitions banned in 100+ countries to Zelensky the cokehead war criminal.

      You’re paying for all of this.

  26. Does it seem like it is still a good time to sell but a bad time to buy a house?

    If so, why would anyone in their right mind choose to buy now?

    1. Yahoo Finance
      Americans are finally getting used to the bad homebuying conditions
      Rebecca Chen
      Fri, July 7, 2023 at 12:08 PM PDT·4 min read

      Americans are reluctantly accepting the new housing norm, a new survey suggests.

      Fannie Mae’s index measuring housing sentiment increased slightly in June, with 4 of 6 surveyed components largely staying stagnant month over month.

      The share of folks who said it’s a “good time to buy” increased to 22% during the month from 19% in May but remained well below the historical trend. The “good time to sell” component remained elevated at 64%, down slightly from last month’s 65%.
      …
      https://finance.yahoo.com/news/americans-are-finally-getting-used-to-the-bad-homebuying-conditions-190813963.html

    2. My cousin is a case in point: Selling in SoCal at 100% markup from the 2012 purchase price before following the herd movement to Florida.

      Buy the CR8R, sell the bubble top, they say!

  28. ‘When things crash, it’s almost like the same cycle where people first are in denial. They’re like wishful thinking,’ he said. And then when they realize it’s going to get worse before it gets better, they realize that it hit the fan. Then they still have partial wishful thinking. Then they finally come to the realization that ‘OK, we’re in over our heads, and what do we do? What are our options? Is there any way to get out of this?’

    Bargaining <- Tom, Boston is here.

  29. ‘not only is he $40,000 out of pocket after the company’s demise, but all his work has also dried up in the month since. ‘He put all his eggs in one basket and got screwed’

    I’ll have a blue Christmas without you
    I’ll be so blue just thinking about you
    Decorations of red on a green Christmas tree
    Won’t be the same dear, if you’re not here with me
    And when those blue snowflakes start falling
    That’s when those blue memories start calling
    You’ll be doing all right
    With your Christmas of white
    But I’ll have a blue, blue, blue, blue Christmas
    You’ll be doing alright
    With your christmas of white
    But I’ll have a blue, blue, blue, blue Christmas
    You’ll be doing all right
    With your Christmas of white
    But I’ll have a blue, blue, blue, blue Christmas

    1. I drive past two *NEW* teddy bears tied to a post on the side of northbound I-25 between 6th and 8th Avenues every day recently. Double homicide, two brothers, one killed on site, the other dragged a while with his arms inside the driver window, after seeing his brother killed, then shot and left for dead on the side of the road.

      The shooter, age 25, has been arrested.

      Incidents like this happen EVERY DAY in Denver. One wrong move against somebody’s road rage, and your cap’s getting peeled…

  34. Real Estate
    Top 10 U.S. counties where prospective buyers need to earn the most to afford a home—80% are in California
    Published Fri, Jul 7 2023 2:58 PM EDT
    Celia Fernandez
    Prospective buyers need to earn more than $383,062 to afford the average price of a home in Manhattan County, N.Y.
    Alexander Spatari | Moment | Getty Images

    Buying a home is already a pretty significant — and stressful — purchase, but tack on the current state of the housing market and the process becomes even more daunting.

    ATTOM, a property data provider, ranked the U.S. counties where the highest yearly wages are needed to afford a median-priced home.

    As of the second quarter of 2022, the median home price in the U.S. was $440,300, according to Rocket Mortgage.

    Overall the report found that prospective buyers needed a minimum salary of $75,000 to afford a median-priced home in about half of the United States housing markets.

    The highest wages needed to afford a home are all in New York and California.

    10 U.S. counties where prospective buyers need to earn the most to afford a home

    Manhattan County, N.Y.
    San Mateo County, Calif.
    Marin County, Calif.
    Santa Clara, Calif.
    San Francisco, Calif.
    Santa Cruz County, Calif.
    Alameda County, Calif.
    Orange County, Calif.
    Kings County, N.Y.
    Napa County, Calif.

    Manhattan County in New York City is the no. 1 country in the U.S. where buyers need to earn the most to buy a home. Prospective buyers need to earn more than $383,062 annually to afford the average price of a home, according to the ATTOM report.

    The average New York County home value is $1,199,964, which is actually down 6.3% over the past year.
    …
    https://www.cnbc.com/2023/07/07/most-expensive-places-buy-a-home-attom-report.html

    1. Bloomberg
      Markets
      Summers Warns on Inflation Complacency, Sees More Bond Declines
      – Former Treasury chief says June jobs numbers were ‘hot’
      – Summers sees further increase in medium-term interest rates
      Stefan Wermuth/Bloomberg
      By Chris Anstey
      July 7, 2023 at 4:17 PM PDT
      Updated on July 7, 2023 at 4:37 PM PDT

      Former Treasury Secretary Lawrence Summers warned against any sense of achievement by policymakers in bringing inflation down notably from its peak last year, and predicted a further selloff in bonds as investors adjust to the need for more monetary tightening.

      “Nobody ever thought we were an underlying 8% inflation country,” Summers said on Bloomberg Television’s “Wall Street Week” with David Westin. “So the fact that the rate has come down shouldn’t be confused with saying that ‘we can be confident that we’re on a path of this all being OK.'”
      …

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