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During The Boom Time, Everybody’s A Hero

A report from Sarasota Magazine in Florida. “It’s not just a flash in the pan. The local real estate market’s inventory is sustaining growth. In Sarasota County, active inventory for single-family homes increased by 75.4 percent, to 3,135 listings. The condo supply increased by 124 percent, to 1,985 listings. Active listings for single-family homes in Manatee County increased by 33.3 percent, to 2,420 listings, and increased by 79.4 percent for condos, with 1,340 listings. The purchase beat is also slowing. And comps count now. ‘When inventory was historically low post-Covid, if a seller saw their neighbor sell for $400,000, they might try listing [their home[ for $425,000 just to see,’ says Alex Chau, a local realtor with Coldwell Banker. That led to swift appreciation.”

“‘I think realtors now know those kinds of [price] jumps are over,’ Chau continues. ‘If your neighbor sold [their house] for $400,000, you should probably price it the same and stay the course of what the market is doing if you’re serious about selling.'”

National Mortgage Professional. “Carriers were quick to yank up insurance premiums when the first major hurricane in over a decade slammed Florida in 2017. Then, on June 24, 2021, when a 12-story beachfront condominium in the Miami suburb of Surfside disintegrated, killing 98 people, the sense of urgency kicked into high gear. Now, Florida homebuyers and loan originators alike are wrapping their minds and means around a host of new requirements (coupled with higher and more fees) — ultimately designed to protect them and their investments. And, of course, continued insurance pains.”

“‘Right now, we’re in this period of flux where there’s an education process that has to happen to board members and owners of condominium units in the state, and that education process doesn’t happen quickly,’ says Orest Tomaselli, president of project review at CondoTek. He predicts a ‘major shift’ in home values during this new era, which beckons full disclosure about a property’s condition and mortgage eligibility. ‘Homeowners are now privy to what a reserve study is, and they want a copy of the report and analysis before they purchase their unit. I think it’s the reason unit values are going to plummet in certain areas of the state.'”

“Once a buyer discovers an HOA is planning a $3 million project in five years and fees will double, that could be a dealbreaker. In the state with the second-highest elderly population, many Floridians are on fixed income, making it impossible to pay more. ‘Increased insurance costs, inflation costs on the repairs that need to be done … it’s going to become unaffordable for a lot of owners and values will have to drop,’ Tomaselli says. Homeowner associations (HOAs) are now scrambling to deal with items on their crumpled to-do lists, sometimes tripling or quadrupling fees that haven’t risen in decades. ‘Those kicking the can down the road … it’s all coming back to bite them now,’ Tomaselli says.”

The Los Angeles Times. “Spring is less than a month away, and with it typically comes a busy time to buy and sell a home in Southern California. If you are selling your home, high rates mean you will have fewer people touring your open houses than during the pandemic boom and you may need to rethink what your home is worth. ‘I wouldn’t call it a hot market,’ said Tracy Do, a real estate agent who specializes in Northeast L.A. ‘It’s very tempered.’ For the first time since 2021, new listings in January — homes hitting the market for the first time — were up compared with a year earlier in L.A. County, according to Zillow. Similar trends were seen across Southern California.”

“Do said she is not seeing a flood of calls from people seeking to list their house. Some of the calls she does get come from people asking her to run the numbers to see if it makes more financial sense to lease their house rather than sell it since rents are high and they have sub-3% mortgage rates. ‘They are just thinking of keeping it as long-term investment, because they can,’ Do said. ‘They have such a low overhead.'”

Fox 11 in California. “A luxurious 7-bedroom dream house in the Hollywood Hills was taken over by squatters who set up a business on the property. The ringleader allegedly wrote a fake lease allowing OnlyFans models to create their content in the house and rented rooms to them. The squatters also threw wild parties. Real estate agents say it’s a problem they are seeing more often. ‘There was poop and pee everywhere. They cut all the cords to all the security systems, they brought in new Wi-Fi. They were planning to sit there and move there,'” said real estate agent Emily Randall Smith. No one was arrested that night in January, but Smith hopes the person behind this gets caught.”

From Bisnow. “When the Federal Reserve’s interest rate hikes threw commercial real estate into a tailspin, lending plummeted. Marcia Kaufman took over as CEO of Bayport Funding in January 2023, a New York-based boutique lender and investor that specializes in the fix-and-flip model in the multifamily space. Bisnow: How has Bayport shifted strategy from the past two years to now? Kaufman: During the boom time, everybody’s a hero. What really defines a strong company is how you perform during tenuous times. As the Fed started the campaign for interest rate hikes, there was a lot of change in banking. We just tightened up underwriting accordingly. We really rely on the sponsor experience. We’ve always relied on it. And we’re looking to the sponsor’s liquidity for debt service more so now than before.”

“Bisnow: What advice would you give to other lenders who might be struggling with the current market headwinds? Kaufman: Stay in touch with all their customers, not just the customers who are having a difficult time. Sometimes bad things happen to good people. It doesn’t mean that they won’t work through it. You have to see if you can work through them. If it’s somebody who’s just so far under they’ve given up, then the best thing to do is take that asset back and try to churn on their own. Don’t be delusional, right?”

From Reuters. “A sell-off in the U.S. government bond market is picking up speed, as a strong economy whittles away at hopes for imminent interest rate cuts from the Federal Reserve. ‘Coming into 2024, nobody thought that inflation could go anywhere but down. It was a slam dunk that you would win by just positioning in bonds,’ said Craig Brothers, senior portfolio manager and co-head of fixed income at Bel Air Investment Advisors. Now, ‘that trade is not working.'”

Blog TO in Canada. “A resident who failed to close on a condo in Toronto is now apparently being sued by the building’s developer in a case that many are considering a fair warning to would-be buyers in the city. A document shared to X this week outlines a Statement of Claim launched with the Ontario Superior Court of Justice this month, which alleges that the defendant — who was purchasing a unit in a new building at 55 Mercer Street — failed to pay the balance remaining after they put down a $143,200 deposit. The amount, a substantial $616,226.53, marked an increase from what was originally supposed to be $572,790 due after the down payment, which the statement says reflects ‘certain adjustments, fees and expenses being required to be paid by the purchaser on the unit transfer date,’ per the condo’s Agreement of Purchase and Sale.”

“So, developer CentreCourt — represented as 99 BJW Residences Inc. in the litigation — is now looking to keep the entire deposit, along with $666,226.53 for damages for breach of the purchase agreement, interest, and the costs associated with the legal proceedings. While some online are calling the developer ‘predatory’ and say their reputation may take a hit for going after an individual who ‘obviously cannot afford to close,’ others are cautioning buyers to do their due dilligence with all contracts and paperwork before getting themselves on the hook for a property, especially in these financial times.”

“‘One of many lawsuits between builder and distressed buyer who couldn’t close!’ one realtor wrote on X. ‘Have heard some distressed sellers who think they can simply give back their units with no implication (besides maybe a lost deposit). Not the right attitude. And consult with a lawyer!’ ‘It’s getting ugly, for sure Already had associates asking how they can get out of deals,’ another said of the current economic landscape, during which a wealthy developer going after someone who can’t afford to close on a unit is particularly scary.”

Lancaster Live in the UK. “A group of new homes that were earmarked for a shared ownership scheme in the Preston suburbs could be switched to a different type of purchasing arrangement – designed for first-time buyers – after they failed to attract any takers. The nine properties in Cottam have been ‘extensively marketed’ since last summer, according to the housing association responsible for them – and have even had their prices reduced – but remain unsold.”

“Now, Bolton at Home Limited wants permission from Preston City Council to reclassify them as so-called ‘rent-to-buy’ dwellings for those trying to get their first foot on the property ladder. The organisation acquired the total 36 units that fall into the affordable homes category on the Story Homes estate at Kings Lea. It forms part of the wider Cottam Hall development, dating back more than a decade. Shared ownership is open to people who cannot afford the full deposit or mortgage payments for a home that meets their needs. Instead, they can buy part of the property – between 10 and 75% – and pay rent to a landlord on the rest. Over time, the part-owners can increase their share and will see a corresponding reduction in their rental payments.”

From News.com.au. “In Australian politics there are relatively few issues outside of foreign policy that the two major parties can agree on. But there is one issue where both sides ostensibly agree: greater levels of home ownership. In the run up to the last federal election, then Opposition Leader Anthony Albanese promised that a Labor government would help people achieve the ‘great Australian dream of home ownership.’ Opposition leader Peter Dutton shared similar views on home ownership with the press late last year: ‘the best way to empower Australians — to make them masters of their fate — is through home ownership.'”

“The leaders of the major parties sharing this view on home ownership is nothing new. Over 70 years ago there were debates in federal parliament not too dissimilar from todays. This raises an uncomfortable question for the nation’s leaders. After spending more than $20.5 billion on grants, concessions and other cash grants to first home buyers in the decade to 2021, home ownership rates have not risen, but instead have continued to decline. By dollar value the proportion of mortgage lending flowing to investors recently hit the highest level since 2017, hitting a share of 36.2 per cent of all new housing finance.”

“Which raises the big question in all of this, how is the home ownership rate going to rise when the current set of incentives and policies have delivered 25 years of strong growth in the proportion of investor held housing stock instead? It was once said that doing the same thing again and again, and expecting a different result was the definition of insanity.”

South China Morning Post. “Hong Kong’s deep-pocketed investors and homebuyers have been snapping up foreclosed luxury homes at great bargains in recent transactions. A 1,301-square foot unit at Azura on 2A Seymour Road changed hands at HK$37 million (US$4.73 million) last week, according to people familiar with the matter. The property was valued at HK$45 million. A three-bedrooms unit at Alassio on 100 Caine Road was sold for HK$34.8 million, or about 20 per cent below its asking price. Foreclosed properties, those seized by banks due to missed mortgage repayments, have added to active transactions of luxury homes in recent months, said Peter Au, managing director at AA Property Auctioneers. ‘Veteran investors in the property market are quick to act, and those who are cash-rich will come out to buy now, but the bargains have to be big,’ he said.”

“Banks sell foreclosed properties according to valuations pegged to recent secondary-market home transactions, said Alger Cheng, general manager in the auction department at CS Auctioneers. That market has been lukewarm, he added, as transaction volume and prices have weakened. ‘More end-users are looking for foreclosed mass residential properties, as valuations of these properties have been discounted by almost 30 per cent during the past three months,’ he said.”

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This Post Has 81 Comments

  1. ‘Homeowner associations (HOAs) are now scrambling to deal with items on their crumpled to-do lists, sometimes tripling or quadrupling fees that haven’t risen in decades. ‘Those kicking the can down the road … it’s all coming back to bite them now’

    This long report is worth reading if you want to know what’s coming to the airbox sh$tholes on the coasts.

    1. This long report is worth reading
      Yes it was and see numerous reports of HOAs tripling the costs and there has got to be a lot of people who won’t have the means to pay which is gonna get ugly. Will there be lots of boomers living in their kids basements as well as under bridges? It’s gonna be interesting and right now I wouldn’t take an older condo in S. Florida if you gave it to me. The risk is too high.

      1. Florida Home Insurance is Out of Control!
        Palm Beaches Paul
        1 day ago DELRAY BEACH

        There doesn’t seem to be much hope for Florida homeowners when it comes to lower insurance premiums in 2024. Matter of fact they are actually going up for most people. There was a little sunshine with the My Safe Florida Home program but its already out of funds for the year.
        Here is the link to the program, I would suggest getting registered asap in hopes they will provide more funding for it.

        *THERE ARE A FEW OTHER QUALIFICATIONS YOU HAVE TO MEET TO BE ELIGIBLE FOR THE GRANT. PLEASE CLICK THE LINK FOR MORE DETAILS.

        https://www.youtube.com/watch?v=8Ot1Ck79mRY

        13:28.

  2. ‘I wouldn’t call it a hot market,’ said Tracy Do, a real estate agent who specializes in Northeast L.A. ‘It’s very tempered’

    Alright Tracy, yer not getting a Christmas card from the HBB this year.

    ‘Do said she is not seeing a flood of calls from people seeking to list their house. Some of the calls she does get come from people asking her to run the numbers to see if it makes more financial sense to lease their house rather than sell it since rents are high and they have sub-3% mortgage rates. ‘They are just thinking of keeping it as long-term investment, because they can’

    Yer right about that. Don’t give it away!

  4. ‘During the boom time, everybody’s a hero’

    That may be Marcia, but you have to be in it to win it!

    ‘We just tightened up underwriting accordingly. We really rely on the sponsor experience. We’ve always relied on it. And we’re looking to the sponsor’s liquidity for debt service more so now than before’

    Because the rents don’t pay the mortgage, how do you like those 5% cap rates now?

    ‘Stay in touch with all their customers, not just the customers who are having a difficult time. Sometimes bad things happen to good people. It doesn’t mean that they won’t work through it. You have to see if you can work through them. If it’s somebody who’s just so far under they’ve given up, then the best thing to do is take that asset back and try to churn on their own. Don’t be delusional, right?’

    Rip it out of their hands, sue them and watch em’ sink, that’s the spirit Marcia!

  6. “‘Right now, we’re in this period of flux where there’s an education process that has to happen to board members and owners of condominium units in the state, and that education process doesn’t happen quickly,’ says Orest Tomaselli, president of project review at CondoTek.

    We at the HBB have developed a short, succinct education process for Florida condo owners: “You are schlonged, bigly.”

    1. Some of these condos will be unsellable. No insurance. No buy. Crazy HOAs etc, no buy. Basically these people in there should walk away. Or slide into the ocean

      1. I sense a great disturbance in the force, as if trillions in Yellen Bux “value” screamed out their last, and were suddenly silenced.

  7. ‘And comps count now. ‘When inventory was historically low post-Covid, if a seller saw their neighbor sell for $400,000, they might try listing [their home[ for $425,000 just to see,’ says Alex Chau, a local realtor with Coldwell Banker. That led to swift appreciation’

    Wa happened to the appraisers Alex?

    ‘I think realtors now know those kinds of [price] jumps are over’

    Those BMW payments aren’t gonna make themselves.

  8. ‘Those kicking the can down the road … it’s all coming back to bite them now,’ Tomaselli says.”

    “No one could’ve seen it coming…no one.” — Every REIC shill and captured policymaker.

  9. ‘They are just thinking of keeping it as long-term investment, because they can,’ Do said. ‘They have such a low overhead.’”

    As the commies in the CA statehouse and at city hall drive out the productive and successful, while at the same time taking the parasitism and leftist lunacy to new heights, shacks will be low-hanging fruit for the taxman. Moreover, property rights will be further eroded and squatters will have political top cover to occupy vacant houses. Owners would have to be complete imbeciles to view a shack as a long-term investment in such an environment.

    1. Owners would have to be complete imbeciles to view a shack as a long-term investment in such an environment.

      Well said

  13. It was a slam dunk that you would win by just positioning in bonds,’ said Craig Brothers, senior portfolio manager and co-head of fixed income at Bel Air Investment Advisors.

    Why would anyone “invest” in US debt that’s going to be printed (inflated) away by the Fed? I’d rather exchange my increasingly debauched Yellen Bux for physical precious metals, as well as lead, brass, and life’s essentials, before things get spicy.

  14. ‘Veteran investors in the property market are quick to act, and those who are cash-rich will come out to buy now, but the bargains have to be big,’ he said.”

    Remember, knife-catchers: It’s the 2nd mouse that gets the cheese.

    1. Financial Times
      Citigroup Inc
      Citigroup plans 20,000 job cuts as it reports worst quarter in 14 years
      Bank reports $1.8bn fourth-quarter loss after taking $4bn in one-off charges
      Citibank building in London
      Citi’s revenues from corporate lending dropped 26% as higher interest rates dented demand for borrowing
      Stephen Gandel in New York January 12 2024

      Citigroup said it expected to cut at least 20,000 jobs, about 10 per cent of its workforce, as the struggling US bank reported its worst quarter in 14 years.

      The cuts could cost as much as $1.8bn, Citi said on Friday, but save as much as $2.5bn a year by 2026 when they are due to be completed.

      The bank reported a $1.8bn loss for the last three months of 2023, dragged down by $4bn of charges and expenses, including $800mn tied to the restructuring and other big hits from its exposure to Russia and the devaluation of Argentina’s peso.

      Jane Fraser, chief executive, admitted that the performance was “very disappointing” but said the bank had made “substantial progress simplifying Citi and executing our strategy” and forecast that 2024 would be “a turning point”.

      Shares in Citigroup rose 1 per cent in New York.
      …

    2. The Regional Bank Crisis Is Not Over
      By Desmond Lachman
      AEIdeas
      February 08, 2024

      Anyone who thinks that the regional banking crisis is over has not being paying attention to the dismal recent earnings reports of New York Community Bank, a US $100 billion regional bank, Aozora, a Japanese bank with significant US commercial real estate loan exposure, and Julius Baer, a Swiss bank. All of these banks’ earnings have been hit hard by troubled US commercial property loans that are on their books.

      Nor have those who are sanguine about the regional banks’ outlook been paying attention to the warnings from the International Monetary Fund and the Fitch rating agency. Those institutions are warning of the risk that a rising tide of delinquencies in commercial property loans could derail the economic recovery. It could do so by triggering a wave of regional bank failures reminiscent of the 1980s Savings and Loan crisis. The Federal Reserve seems to be compounding that risk by maintaining high interest rates for too long.

      In March last year, markets were roiled by the failure of Silicon Valley Bank and First Republic Bank. Those failures were the second and third largest US bank failures on record. They required large scale Federal Reserve intervention to prevent the regional banks’ problems from morphing into a systemic bank crisis. The principal factor triggering those failures were the large mark to market losses those banks recorded on their bond portfolios as a result of the Fed induced spike in long term interest rates. It is estimated that for the banking system as a whole, bond-related mark to market losses are in the range of $600 billion.
      …
      https://www.aei.org/economics/the-regional-bank-crisis-is-not-over/

      1. The CIA is probably placing the orders and a Soros NGO is probably covering the shipping.

        Los Angeles is claiming 2000 people died on the street there in 2023. A large percentage was from overdoses. Remember when they showed us a video of just one person somewhere in China collapsing and dying on the street from some mystery disease and everyone lost their minds? Yet 2000 can drop dead in one city from poisoning and no one cares. Coast to coast the numbers are jaw dropping. We are our own worst enemy.

          2. And that the fentanyl will (mostly) only claim hobos and other derelicts
            I don’t think so. I know a few women from “good homes” and educated who are addicts. It’s all about, in my humble opinion, of wanting to be the “cool girl/bad a$$ chick.”

          3. What I meant to say is that is the public perception. Of course there are stories of regular people who OD

        2. This statistic is meangingless. We have no comparison to housed populations. And the gross category of house versus unhoused is not nuanced at all. Meangingless.

  18. ChatGPT 3.5

    User
    “A sell-off in the U.S. government bond market is picking up speed, as a strong economy whittles away at hopes for imminent interest rate cuts from the Federal Reserve. ‘Coming into 2024, nobody thought that inflation could go anywhere but down. It was a slam dunk that you would win by just positioning in bonds,’ said Craig Brothers, senior portfolio manager and co-head of fixed income at Bel Air Investment Advisors. Now, ‘that trade is not working.’”

    ChatGPT
    The sell-off in the U.S. government bond market is accelerating due to the strength of the economy, diminishing expectations for immediate interest rate cuts by the Federal Reserve. Craig Brothers from Bel Air Investment Advisors noted that the prevailing belief at the start of 2024 was that inflation would decrease, making bond investments favorable. However, this expectation has been upended, causing the bond trade to falter.

    User
    What happens to U.S. mortgage rates when the U.S. government bond market sells off?

    ChatGPT
    When the U.S. government bond market sells off, it typically leads to an increase in bond yields. Mortgage rates often follow the trend of government bond yields, so when bond yields rise, mortgage rates tend to rise as well. This means that during a bond market sell-off, US mortgage rates are likely to increase.

    ChatGPT can make mistakes. Consider checking important information.

    ChatGPT

  19. Saying the quiet part out loud, a decade late.

    New York Times — The Spy War: How the C.I.A. Secretly Helps Ukraine Fight Putin (2/25/2024):

    “Now entering the third year of a war that has claimed hundreds of thousands of lives, the intelligence partnership between Washington and Kyiv is a linchpin of Ukraine’s ability to defend itself. The C.I.A. and other American intelligence agencies provide intelligence for targeted missile strikes, track Russian troop movements and help support spy networks.

    But the partnership is no wartime creation, nor is Ukraine the only beneficiary.

    It took root a decade ago, coming together in fits and starts under three very different U.S. presidents, pushed forward by key individuals who often took daring risks. It has transformed Ukraine, whose intelligence agencies were long seen as thoroughly compromised by Russia, into one of Washington’s most important intelligence partners against the Kremlin today.

    The listening post in the Ukrainian forest is part of a C.I.A.-supported network of spy bases constructed in the past eight years that includes 12 secret locations along the Russian border. Before the war, the Ukrainians proved themselves to the Americans by collecting intercepts that helped prove Russia’s involvement in the 2014 downing of a commercial jetliner, Malaysia Airlines Flight 17. The Ukrainians also helped the Americans go after the Russian operatives who meddled in the 2016 U.S. presidential election.

    Around 2016, the C.I.A. began training an elite Ukrainian commando force — known as Unit 2245 — which captured Russian drones and communications gear so that C.I.A. technicians could reverse-engineer them and crack Moscow’s encryption systems. (One officer in the unit was Kyrylo Budanov, now the general leading Ukraine’s military intelligence.)

    And the C.I.A. also helped train a new generation of Ukrainian spies who operated inside Russia, across Europe, and in Cuba and other places where the Russians have a large presence.

    The relationship is so ingrained that C.I.A. officers remained at a remote location in western Ukraine when the Biden administration evacuated U.S. personnel in the weeks before Russia invaded in February 2022. During the invasion, the officers relayed critical intelligence, including where Russia was planning strikes and which weapons systems they would use.

    “Without them, there would have been no way for us to resist the Russians, or to beat them,” said Ivan Bakanov, who was then head of Ukraine’s domestic intelligence agency, the S.B.U.”

    https://archive.is/E2tiJ

  20. New York Post — How China is flooding America with fentanyl on purpose to undermine our society (2/25/2024):

    “While we debate domestic politics to address the fentanyl crisis, the reality is that Beijing is deeply involved at every stage of the drug’s production and distribution in the United States.

    It’s little wonder that in 2019, some senior officials at the US Department of Homeland Security asked for fentanyl to be classified as a “weapon of mass destruction.”

    How did the most dangerous drug ever created become a household word, and scourge, in America?

    Not by accident, but by deliberate design. Beijing’s hand can be found in every stage of the poison’s spread in North America.”

    https://nypost.com/2024/02/25/opinion/how-china-is-flooding-america-with-fentanyl-on-purpose-to-undermine-our-society/

  21. Already had associates asking how they can get out of deals,’ another said of the current economic landscape, during which a wealthy developer going after someone who can’t afford to close on a unit is particularly scary.”
    Wealthy Developer? Well, if he is forced to eat all the losses on the depreciating asset someone “ordered”, he won’t be wealthy for long. Accountability is important, understand what you just spent 600K plus on.

  22. Fortune
    Finance Housing
    Million-dollar homes are swallowing D.C.’s housing market as a whopping 20% of listings are out of reach for most people
    Most D.C. residents can only afford a $300,000 home
    BY Sydney Lake
    February 24, 2024 7:51 AM EST
    More than 20% of homes in Washington, D.C. were listed at $1.5 million or more in January. Getty Images—Benedek

    Washington, D.C. is consistently ranked as one of the most expensive housing markets in the U.S. The nation’s capital is home to some of the wealthiest and most powerful people in the world, but its low-income residents feel the brunt of an unaffordable housing market.

    In fact, 59,000 Washington, D.C. households pay more than 50% of their income on housing, effectively making them house poor.

    What’s more is that 23% of the city’s home listings last month topped $1.5 million, according to Long & Foster’s Luxury Housing Market Report. The ratio increased by 2% to 3% from recent years “due to the lack of available inventory and new listings in homes below $1.5 million,” a Long & Foster spokesperson told Fortune. For the entire Washington, D.C. region, which includes northern Virginia and southern Maryland, more than 20% of home listings topped $1.5 million. That’s far more than the median sales price in D.C. of nearly $600,000—a figure that is nonetheless far out of reach for most people living in the district.

    The average salary in Washington, D.C. is just $79,000, according to ZipRecruiter, so even affording a median-priced home would be a stretch for many residents. Assuming the 28/36 rule (which advises homeowners not to spend more than 28% of gross monthly income on housing costs and no more than 36% on all combined debt), a D.C. resident making an average salary shouldn’t spend more than about $1,800 per month on housing. At a 7% mortgage rate and a 20% down payment (which many new homeowners struggle to afford), the homebuyer could only afford a home in the low $300,000’s.
    Housing challenges in D.C.

    Although so few people can afford luxury housing in the D.C. region, this section of the market is facing similar challenges to the rest: inventory. In January, there were just 5.8 months of supply available, a 13.4% year-over-year decrease, according to Long & Foster. The mid-Atlantic region of the U.S. as a whole has faced “restricted supply which has lingered near historic lows,” according to a February report by multiple-listing-service company Bright MLS.

    “Demand outpaced supply in 2023 and the trend will continue in 2024,” Lisa Sturtevant, chief economist at Bright MLS, said in a statement. “More sellers should be joining the market this year and additional new listings will be a welcome sign for buyers, but it will still be a very competitive market.”

    When looking beyond luxury-home sales at overall homes, the median sales price in the Washington, D.C. area in January was $535,000, which was 7% higher than the same time last year. Prices in the region have risen “steadily” since last summer and are now 29% higher than in January 2019, according to Bright MLS.

    But Washington, D.C.—like New York City and other major metropolitan areas—is a city of dreamers. People continue to move to the city for its opportunities and its clout.

    “Despite affordability challenges, there remains a strong desire for homeownership in the Washington, D.C. metro,” according to Bright MLS.
    The luxury real estate market

    Despite mortgage rates that peaked at 8% in October 2023 and rising home prices, the luxury real estate market held on in 2023—and there’s more optimism for 2024.

    Indeed, more than one third of luxury consumers think 2024 will be a better time to buy or sell a home compared to 2023, according to a Coldwell Banker Global Luxury Consumer Survey released in mid-January.

    “If lower mortgage rate trends combined with the new inventory momentum continues, luxury homebuyers could be inspired to move forward with their next home purchase,” Michael Altneu, vice president of Coldwell Banker Global Luxury, said in a statement.

    While mortgage rates dipped toward the end of 2023, they’ve actually been slightly ticking up for the past few weeks. As of Friday, the average 30-year fixed mortgage rate was 7.1%, according to Mortgage News Daily, up from about 6.67% at the very beginning of the year.

    Even still, the number of luxury-home sales in the U.S. increased more than 4% during the last quarter of 2023. And Washington, D.C. was one of the most sought-after cities for international luxury buyers, along with New York City, Los Angeles, Miami, and San Francisco.

    But 2024 could be even bigger for luxury-home sales—especially if the buyers who were holding out in 2023 decide to come to market.

    “In contrast to the pandemic homebuying boom, we’re seeing luxury homebuyers more than willing to wait to find the perfect house in 2024 that meets every single one of their needs whether it’s privacy, wellness amenities, lifestyle experiences, latest technology or a combination of all those factors,” Jade Mills, president of Beverly Hills-based Jade Mills Estates and Coldwell Banker’s No. 1 agent worldwide, said in a statement. “Specifically, turn-key, move-in ready homes with easy access to the best luxury amenities provide buyers with instant gratification in attaining their desired lifestyle.”
    …
    https://fortune.com/2024/02/24/washington-dc-unaffordable-housing-market/amp/

    1. A few years ago, I was contacted by a head hunter regarding a technical position in Washington DC.

      Me: “What do you call it when there is 100 miles between yourself and Washington DC”?

      Recruiter: “I don’t know”.

      Me: “Not enough miles”. Click.

    2. “The average salary in Washington, D.C. is just $79,000, … a D.C. resident making an average salary shouldn’t spend more than about $1,800 per month on housing.”

      Get a roomie or a spouse. Housing has been a two-income proposition for the past 35 years.

      “the low $300,000’s.”

      You could probably get a condo for that in some of the more ‘vibrant’ sections of the city.

    1. It works forever. Nothing new under the sun.

      The ancient Latin poem Catullus 63 describes the madness and sorrow well.

  25. ” ‘the best way to empower Australians … is through home ownership… After spending more than $20.5 billion on grants… how is the home ownership rate going to rise ”

    Allow refinances into 30-year mortgages. None of this 5-year “fixed” nonsense. Primary residence only.
    Require builders and originators to “season” — remember that word? — loans before selling them to banks.

  26. Exclusive: Biden Admin Planted Operative Jeff DiSantis in Fani Willis’ Office to Target Trump, Sources Say

    WENDELL HUSEBØ
    26 Feb 2024

    The Biden administration planted a Democrat operative inside a Fulton County office to target former President Donald Trump, multiple sources familiar with the Fulton County District Attorney’s Office exclusively told Breitbart News.

    If the Biden administration planted the operative, as the sources say, it would present a strong argument that the administration interfered in the 2024 presidential election.

    Sources credit DiSantis with colluding with the White House to target Trump. “DiSantis did this,” one source told Breitbart News about the Trump case. “He’s the one. He is the one pulling all the strings. He was the one that walled her [Willis] off. He was in every important meeting. He is the brainchild behind this. That is the connection to the White House.”

    https://www.breitbart.com/2024-election/2024/02/26/exclusive-biden-admin-planted-operative-jeff-disantis-fani-willis-office-target-trump-sources-say/

    1. Biden Admin Planted Operative

      Matthew Colangelo was likewise planted with Manhattan district attorney, Alvin Bragg.

    2. No one really thought Fani came up with this herself?

      Letitia’s next. Then LaShaquanishia?

      Love them DEI lawyers.

  28. Another actor has died of suddenly:

    Television and and film character actor Chris Gauthier died unexpectedly last week at the age of 48, according to news reports.

    1. Every time one is tempted to believe it couldn’t possibly get worse, it gets worse. The crazy is in complete overdrive, with the afterburners providing maximum thrust.

      It was said that the Babylon Bee’s satire would quickly become reality. Now I don’t see how they can keep up.

      And mocking the evil doesn’t work. They don’t care as long as they remain in charge. They will let the opposition post their memes. It doesn’t bother them, because so far they are getting the last laugh.

      I am expecting the Feds to start flying the invaders straight into the US from their homelands on charter jets, and it won’t surprise me if the next time I go to the airport I see more invaders there than Americans.

    2. And to think that things in Virginia looked so optimistic 2 years ago. But women want to kill their babies at 8 months…

  31. Prices not based on reality. Fantasy gouging prices.
    “‘When inventory was historically low post-Covid, if a seller saw their neighbor sell for $400,000, they might try listing [their home[ for $425,000 just to see,’ says Alex Chau, a local realtor with Coldwell Banker. That led to swift appreciation.”

  32. Thousands Of Farmers Surround EU Headquarters, Use Tractors To Remove Police Barricades, Spray Officers With Manure – Watch!

    by Kelen McBreen
    February 26th 2024, 1:27 pm

    Wild footage coming out of Brussels, Belgium, shows thousands of pissed-off farmers battling with police and trashing the surrounding area outside the European Union headquarters building.

    In several videos, the farmers can be seen using their equipment to remove barricades placed in the streets by police.

    Police brought in vehicles with water cannons to try and stop the demonstration.

    In one area outside the EU headquarters liquid manure was sprayed all over police officers, and piles of tires were set on fire.

    In Madrid, Spain, thousands more farmers demonstrated outside the EU Commission in solidarity with the Brussels farmers protesting globalist policies.

    The elite are waging a war on the global food supply while simultaneously pushing and creating lab-grown dystopian “food” so they can fully control the food supply.

    omments

    2 hours ago

    The same is coming to America sooner than later. God bless all the farmers across the world!

    https://www.infowars.com/posts/thousands-of-farmers-surround-eu-headquarters-use-tractors-to-remove-police-barricades-spray-officers-with-manure-watch/

  33. ‘Blood Money’: Leaked U.S. Federal Law Enforcement Documents Reveal How China Is Secretly Arming American Criminals with Machine Guns

    KRISTINA WONG
    26 Feb 2024

    The Communist Chinese government has been flooding the United States with illicit gun parts as part of a “Disintegration Warfare” strategy it is employing against America aimed at tearing the country apart from the inside, according to a blockbuster new book by Breitbart News Senior Contributor Peter Schweizer.

    In Blood Money: Why the Powerful Turn a Blind Eye While China Kills Americans, Schweizer reveals how Chinese companies, which are heavily regulated by the Chinese government, are flooding the U.S. with auto sear switches, a small metal device also known as “Glock switches” that can convert handguns into machine guns. They are illegal for most gun-owners in the U.S., but are being shipped in boxes by the “thousands” from China, Schweizer reveals.

    As with fentanyl, the Chinese government is sending the auto sear switches to sow chaos and death inside the U.S. as part of a “Disintegration Warfare” strategy, according to Schweizer.

    https://www.breitbart.com/politics/2024/02/26/blood-money-leaked-u-s-federal-law-enforcement-documents-reveal-how-china-is-secretly-arming-american-criminals-with-machine-guns/

  34. Do you worry the current FOMO-fueled rally could presage over a decade’s worth of dismal stock market returns on Wall Street?

    1. DOW 30 -0.16%
      S&P 500 -0.38%
      NASDAQ 100b-0.02%

      Stocks could see dismal returns for the next 12 years as the FOMO-fueled rally looks like it’s nearing a peak, Wall Street legend says
      Jennifer Sor
      Feb 26, 2024, 9:27 AM PST
      Market crash 2008
      Lucas Jackson/Reuters

      – Stocks could see dismal returns over the next 12 years, market vet John Hussman warned.

      – The legendary investor pointed to signs that stocks are way overvalued, fueled by investor FOMO.

      – The market looks like it’s nearing a peak, he wrote in a recent note.
      …
      https://markets.businessinsider.com/news/stocks/stock-market-outlook-sp500-overvalued-recession-fed-rate-cuts-bubble-2024-2

    2. DOW 30 -0.16%
      S&P 500 -0.38%
      NASDAQ 100 -0.02%

      Stocks will likely keep rising under the Fed’s policy regime as the ‘roaring 1990s’ returns, market vet says
      Jennifer Sor
      Feb 26, 2024, 6:59 AM PST
      trader look surprised
      Reuters / Sue Ogrocki

      – Stocks are on the path higher for the rest of the decade, according to market vet Ed Yardeni.

      – The Yardeni Research president compared the current market to the “roaring 1990s,” when stocks soared.

      – That’s because interest rates are likely priced just rate for inflation, he said in a recent note.
      …
      https://markets.businessinsider.com/news/stocks/stock-market-outlook-fed-rate-cuts-economy-inflation-roaring-90s-2024-2

    3. ECONOMY
      Jamie Dimon is ‘cautious about everything’ as he sees risks to a soft landing
      PUBLISHED MON, FEB 26 2024 1:47 PM EST
      UPDATED MON, FEB 26 2024 2:55 PM EST
      Jeff Cox

      KEY POINTS

      – JPMorgan Chase CEO Jamie Dimon said market expectations are too high that the U.S. economy will see a soft landing.

      – However, he doesn’t expect a replay of some of the other serious downturns the U.S. economy has faced, such as the 2008 financial crisis.

      – Higher interest rates along with a recession could hit areas such as commercial real estate and regional banks hard, but with limited macroeconomic impacts, Dimon said.
      …
      https://www.cnbc.com/amp/2024/02/26/jamie-dimon-is-cautious-about-everything-as-he-sees-risks-to-a-soft-landing.html

    5. Financial Times
      Opinion Markets Insight
      Spiralling US public debt risks action from bond vigilantes
      Policymakers should start making contingency plans now
      Headshot for John Plender
      John Plender
      Pedestrians walk past the US Department of the Treasury
      Even the US Treasury has declared the public debt burden unsustainable
      John Plender yesterday

      Bond vigilantism is resurgent in the market for sovereign debt. That emerged with remorseless clarity from the brutal sell-off of UK gilts that toppled hapless British prime minister Liz Truss. Could the fiscal disciplinarians of the global investment community now turn their disruptive talents to the US Treasury market?

      As well as savaging the president of the day, such a challenge could devastate the US’s role as the world’s chief provider of safe assets during global crises, while simultaneously threatening the dollar’s status as the pre-eminent reserve currency.

      For many, the idea is simply unimaginable. In a recent speech, Federal Reserve governor Christopher Waller declared that flights to the dollar in the financial crises of 2008 and 2020 were “the ultimate vindication that the US dollar is the world’s reserve currency and is likely to remain so”.

      Well, yes. The dollar is, after all, backed by the world’s biggest, most liquid debt market. It enjoys what economists call network externalities: widespread acceptance engendering wider use. Supported by the world’s largest economy, the currency is a magnet for nearly 60 per cent of all central banks’ foreign exchange reserves.

      Note, too, that despite the US economy’s shrinking share of global output, the outcome has merely been a genteel decline in the dollar’s relative share of global reserves. That said, governor Waller conspicuously failed to mention the biggest reason for thinking Treasuries are no longer an ultra-safe store of value.

      This is not the US’s appallingly dysfunctional politics. Nor the weaponisation of the dollar thanks to geopolitics. Nor again the possible competitive threat from other central banks’ digital currency plans. Rather, it is a spiralling public debt now exceeding 97 per cent of gross domestic product, a level not seen since the second world war.
      …

    1. Our resident TDS patient, who is a member of a religious cult, exhibits at least the following:

      Calling anyone who displays any support for Orange Man fascist, racist, sexist, homophobic, xenophobic, bigoted, deplorable conspiracy theorists peddling dangerous misinformation

      Regurgitating the talking points of corporations, big pharma, MSM, academia, tech conglomerates, intelligence agencies, military industrial complex, and World Economic Forum

      Refusing to believe any sources of information other than the above

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