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Buyers Were Happy To Pay More For Property When Banks Were Handing Out Money Willy-Nilly

A report from the Daily Mail on Florida. “The millionaire residents of a gated community that live on a secluded island in Miami say their private paradise has been destroyed, after the city allowed a developer to build a huge 91-foot high, seven story block of condos that now blots out the sunshine and their waterfront views. Not only that, the way the new block has been constructed with its curved design has created a wind tunnel effect, meaning patio furniture on the neighboring balconies is being blown around. The prices of the original homes are also said to have plummeted by 30 percent. ‘When residents move in over there, they’ll be close enough to see what I’m watching on TV. Or what I’m reading. I’ll be able to see into their bathrooms,’ said Wendy Gordon to the Miami Herald. ‘We bought a peaceful island lifestyle. It was heaven. It’s gone. This used to be a kind and friendly place. Now everybody hates each other.'”

“The new condo was the result of a 2020 settlement signed by the developer and Homeowner Association (HOA) leaders in closed-door negotiations with the Grove Isle homeowners never consulted for their opinion or given a chance to voice their opposition. David Schaecter, 94, has lived at the Grove since its construction in the late 1970s. He and his wife used to enjoy stunning views over the marina and tennis courts, but now their unit sits just 40 feet away from the new apartment block being built. ‘Now we’re staring at a wall of condo units,’ said Schaecter. ‘It’s invasive. We’ll have to keep our shades closed. The HOA dictators betrayed us. They screwed us royally,’ added Schaecter.”

From WEAR. “The home insurance crisis in Florida could possibly see some stabilization. But that may not be enough for some homeowners. Pensacola realtor Christina Leavenworth says she’s actually seen more people backing out of moving to Florida instead. ‘We have had buyers where they have gone under contract, they’ve done the inspections, the home is nearly perfect — there’s nothing wrong with it,’ Leavenworth said, ‘And then they get an insurance quote for $4,000 — which really isn’t that bad in this market — and they go you know what, I don’t want to move to Florida.'”

From WCIV. “South Carolina has the fifth highest foreclosure rate in the nation, according to a recent real estate study. But what does this mean for Charleston? Brian Beatty, a real estate agent with Keller Williams Realty said Mount Pleasant homes that would’ve sold for roughly $500,000 pre-pandemic are now selling for close to $1 million. He said with such a large number of people looking to move to the area, it creates a high demand, low inventory market. But many people already living here aren’t earning enough to afford it. ‘Right now, our affordability index is at 76. So, what that means is that the median income in the Charleston metro area is only 76% of what’s necessary to qualify for the median-priced home,’ Beatty explained.”

Hawaii Real Estate Dreams. “March numbers were almost identical to last year in units sold for all three categories for Kona. Cash sales for March are down to 45% for Kona as compared to 55% last year. Prices are so far out of reach that now if something is listed under a million, it is almost always a condo. House listings under that range were only 13 at the close of March… pretty skinny choices! In condos you would have had 70. That is where the insurance issue runs smack dab into the pricing. The fees have gone up dramatically the last few years in most complexes, I mean hundreds a month in increases. This is now limiting how buyers think about what is in their price range… not just the sticker price but the per-month expense which continues to grow. And property taxes went up almost $100 a month on rental condos last year too! It affects how the unit cash flows, with many many rentals now not able to cover all the expenses, so some owners will decide to sell.”

The Wall Street Journal. “Wall Street went on a home-buying spree. Now, more lawmakers want to stop it from ever happening again. Democrats in the U.S. Senate and House have sponsored legislation that would force large owners of single-family homes to sell houses to family buyers. A Republican’s bill in the Ohio state legislature aims to drive out institutional owners through heavy taxation. Lawmakers in Nebraska, California, New York, Minnesota and North Carolina are among those proposing similar laws. Critics of regulation note that many of the largest investors have bought very few or no homes in the past year. ‘The great trade is done,’ said John Burns, founder of the eponymous housing research and consulting firm. ‘So what are you trying to stop?'”

The Real Deal. “For a few months, Tides Equities has been desperately seeking preferred equity to shore up its investments in 30 apartment complexes. The company has said the money would help it through this punishing stretch of high interest rates and prepare the properties for sale in the next couple of years. But there’s a tradeoff: If Tides scores that lifeline, some of its original investors could lose everything they put in. Tides, working with AMC Investments, pooled together $277 million from limited partners in 2021 and 2022 to buy 28 properties across Nevada, Arizona and Texas.”

“Now, if Tides hits its $69 million preferred equity goal, 88 percent of that original equity will be wiped out, according to marketing documents obtained by The Real Deal. Just $30 million will be returned to the original limited partners. On some deals, investors may see nothing. But Tides hasn’t been able to save everything: foreclosure auctions are scheduled next month on three properties in Fort Worth, Texas. Tides expects to lose money on some properties. It expects Tides on 67th in Glendale, Arizona, to sell for 17 percent less than it paid in December 2022. In 2023, Class C multifamily complexes in Phoenix were selling at an average of $208,000 per unit, according to Northmarq data, down 17 percent from the previous year.”

“Tides is hoping to sell its Phoenix-area properties in the AMC portfolio, which count as Class C and are older, lower-quality assets, at an average of $256,000 per door, 23 percent higher than the 2023 median. It bought the buildings for $201,600 per unit, according to its marketing materials. But the way the market is going, some observers see that projection as wildly optimistic. Across Phoenix, Las Vegas, Austin and other Sun Belt cities, vacancy increases and falling rents are driving down multifamily property values. Rents in Phoenix dipped 2.5 percent from 2022 through 2023, according to Northmarq.”

“In Austin, rents have fallen 5.6 percent, according to data from Matthews Real Estate Investment Services. At the beginning of 2022, apartment buildings in Austin were trading at $270,000 per unit, according to Matthews. One multifamily agent in Austin said Class C, 1980s-era apartment properties were selling at $180,000 or $190,000 a unit at the height of the market in 2022. Now, those same properties are ‘struggling to trade at $120,000 a door.’ To think that pricing is going to rebound like that is insane,’ the agent added.”

Bisnow on California. “Positive momentum from local and out-of-state investors in San Francisco’s office investment market over at least nine months has helped reset pricing and inspired newfound hope in the beleaguered property sector. But a glut of unoccupied office space means the local office market is not quite out of the woods. ‘To be perfectly honest, anyone buying real estate in San Francisco right now is not looking at a cap rate,’ said Connor Kidd, CEO of The Swig Co. ‘They’re saying, at $250 a foot, I am 70% below replacement cost, and in some cases your cap rate might be zero. You’re barely covering your expenses because you’re not that well leased.'”

“Ryan Miller, West Coast analyst for Green Street, said that values for average-quality office product in San Francisco are down 70% from their 2019 peak. Meanwhile, values for Class-A, institutional-quality assets dropped 50% from the same period. San Francisco still faces political and economic headwinds that are keeping office values depressed, Miller said. A wave of tech layoffs caused ‘cyclical challenges,’ while the desire to work from home, particularly among tech workers who have faced some of the biggest layoffs, continues to keep vacancies high.”

The Globe and Mail in Canada. “Dear Nancy, I had planned to sell our family cottage and an investment property next year. With the recent budget change and the expected capital gain from the sale of these two properties being more than $250,000 I’m not sure I should wait. What do you think? Dear Steve, Deciding to sell a real estate property is not something that can be done as quickly as when selling a stock or bond. There is something to think about that could come into play if you try to sell before the June 25th deadline. There are many other real estate investors that will be trying to do the same thing. That can cause an increase of listings for sale. When there is more supply than demand, prices go down. You could end up selling for less than you expect. You could end up losing more money than the higher tax rate if you don’t wait.”

“Consult your real estate agent to get advice on pricing, expected time to complete the sale and cost to get your properties ready for sale. In the end it may turn out it is better to wait after the rush for the exit is finished.”

The National Post in Canada. “The new capital gains tax proposed in the Liberal budget has led to speculation that there might be a flood of cottages entering the market or a push for earlier closing dates as sellers try to avoid a hefty tax bill. ‘I am seeing an increase in people wanting to list their properties now that this is going into effect,’ said Beth Groom, a broker and owner of Cape Breton Realty. Groom added that buyers don’t seem to have it on their radar that now may be the time to buy. ‘But I think potentially sellers are thinking they would give a deal if it could close early,’ she said.”

“In Muskoka, the heart of Ontario’s cottage country, John Fincham, a broker with Re/Max Parry Sound Muskoka, said he believes the capital gains tax ‘is going to prompt a lot of people to list. People for the first time in a while will have something to pick from,’ Fincham said. Since interest rates have been so high, many prospective cottage buyers have been waiting for rates to come down. But realtors say that it is turning into a strong buyer’s market and has been for a few months. This is for a few reasons, such as pandemic buyers rethinking if they still want to be cottagers, and owners no longer being able to afford a cottage. ‘You’ve got a combination of inventory to choose from, and lower prices,’ said Fincham, adding that this puts buyers in a much better position than they previously were.”

Domain News in Australia. “House prices have fallen in a string of sought-after inner city and bayside hot spots, as Melbourne’s housing market softens. The inner-city beachside suburb of Elwood recorded the largest decline, with house prices down 22.8 per cent in the 12 months to March. St Kilda and Brighton also recorded double-digit falls. House prices fell in the desirable inner suburbs of South Melbourne, South Yarra and Carlton North, by 17 per cent, 13 per cent and 10.4 per cent, respectively.”

“Director at Buxton Brighton Halli Moore said although the bayside prestige market was still buoyant, increased building costs combined with lower borrowing capacities have contributed to downturns in the area. Brighton unit prices dropped by 21.7 per cent, while house prices decreased by 10.7 per cent over the past year. ‘When rates were low, people were happy to pay premium prices for land value properties, pull them down and build a new home on them, whereas the cost of building going up by about 30 per cent has probably seen that segment of the market suffer,’ Moore said. Moore added that buyers were happy to pay more for property when banks were ‘handing out money willy-nilly’ pre-Covid but were now more restricted in their borrowing capacities.”

The Independent Singapore. “In an attempt to address concerns over housing affordability, the authorities have been quick to highlight the slowdown in price growth ahead of the general election slated for no later than 2025. The weakening sentiment in the property market is evident from recent sales figures. Last weekend, a private residential project managed to sell only three out of 59 units put on the market. Additionally, prices of high-end condominiums are being slashed. Notably, a firm associated with major developer City Developments Ltd. managed to offload 65 luxury units in Sentosa after implementing price cuts of over 40%.”

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This Post Has 83 Comments

  1. ‘said Mount Pleasant homes that would’ve sold for roughly $500,000 pre-pandemic are now selling for close to $1 million. He said with such a large number of people looking to move to the area, it creates a high demand, low inventory market. But many people already living here aren’t earning enough to afford it’

    I guess that’s why you got foreclosures Brian, sound lending!

    1. GF and i lived in Mt pleasant, pitt st the old section and i worked at WCIV which was also in mt pleasant… back then we had to do everything from running the video tape room load copy commercials, load all the news stories during the 6pm news, then after everyone left at 1130 pm you usually would be alone to run master control the late show and maybe gunsmoke at 1 am, and shut down at 2 am no 24 hours tv stations yet….then the chief engineer would come in and fix anything before the 6 am sign on, and run an hour of the PTL club before join the abc network at 7am , ……..even had to drive the satellite truck even without a cdl license….

      1. PTL club! Pass The Loot club we used to call it. I guess you lived there late 80,s. All of Charleston is over built now. Fing crazy. I did e through a hood recently, new homes 250kish…..car plate from everywhere. I don’t get why everyone thinks the Carolina’s is so Fing great? I hate here now. I hope we are the epicenter of the RE crash!!!!!

        1. pass the loot. haha. jimmy bakker and his drag queen wifey

          we also lived off ashley phosphate rd in North Charleston, the GF had a sw job foster care adoption in Monks corner…. 20+ miles but only 3 traffic lights each way

          2. small world. we lived on Fassitt off stall and mazyck, he owned a house on is back property and we had well water till the city forced him to hook up.

        2. People think it’s so great because so many other places have been wrecked. I encourage people to stop ignoring what is happening in places like CA, you ignore it at your own peril. Many people far from the border think the border doesn’t matter until your own state is flooded with refugees both domestic and international. What you are experiencing is just a small taste of what is to come.

          1. Most of the car plates That I see around here are Texas, New York , Ohio, Pennsylvania New Jersey Connecticut. And now I’m seeing a lot of Florida

        3. People are moving simply because the population is going way up. Places that were great growing up 30 years ago in the early 90 .. well, we had 70 million fewer people back then. Everything is being built up and paved over. Even small America is going to be overrun.

          2. US fertility rate dropped to lowest in a century as births dipped in 2023
            By Deidre McPhillips, CNN
            3 minute read
            Updated 5:34 PM EDT, Thu April 25, 2024
            The teen birth rate reached another record low in the US in 2023, while women ages 30 to 34 had the highest birth rate, according to provisional data from the CDC.
            hxyume/E+/Getty Images

            CNN —

            The fertility rate in the United States has been trending down for decades, and a new report shows that another drop in births in 2023 brought the rate down to the lowest it’s been in more than a century.

            There were about 3.6 million babies born in 2023, or 54.4 live births for every 1,000 females ages 15 to 44, according to provisional data from the US Centers for Disease Control and Prevention’s National Center for Health Statistics.

            After a steep plunge in the first year of the Covid-19 pandemic, the fertility rate has fluctuated. But the 3% drop between 2022 and 2023 brought the rate just below the previous low from 2020, which was 56 births for every 1,000 women of reproductive age.
            …
            https://www.cnn.com/2024/04/24/health/us-birth-rate-decline-2023-cdc/index.html

  2. ‘Critics of regulation note that many of the largest investors have bought very few or no homes in the past year. ‘The great trade is done,’ said John Burns, founder of the eponymous housing research and consulting firm. ‘So what are you trying to stop?’

    It’s a good thing nobody overpaid in such an environment John!

    1. I guess they are hoping for inflation to make those high priced purchases seem smart in retrospect.

    2. They could have stopped this by requiring businesses to buy single family homes with the same conditions that a family would need to buy the home. Like, the same 4% interest rates and no guarantees or bailouts.

      3. Your betters will enjoy Garlic Butter Shrimp Scampi while y’all fight over bugs like dogs in the street.

  4. ‘In an attempt to address concerns over housing affordability, the authorities have been quick to highlight the slowdown in price growth ahead of the general election slated for no later than 2025. The weakening sentiment in the property market is evident from recent sales figures. Last weekend, a private residential project managed to sell only three out of 59 units put on the market. Additionally, prices of high-end condominiums are being slashed. Notably, a firm associated with major developer City Developments Ltd. managed to offload 65 luxury units in Sentosa after implementing price cuts of over 40%’

    The Singapore guberment brags about handing out a$$ poundings.

  5. ‘House prices have fallen in a string of sought-after inner city and bayside hot spots, as Melbourne’s housing market softens. The inner-city beachside suburb of Elwood recorded the largest decline, with house prices down 22.8 per cent in the 12 months to March. St Kilda and Brighton also recorded double-digit falls’

    This is the 1,000th installment of Australia is red hotcakes! except over there. Those poor bashtards are getting their heads handed to them.

  6. Monday morning.

    Rise and shine, U.S. taxpayers.

    Russia Today — Zelensky wants ten more years of US funding (4/28/2024):

    “The latest US aid package for Kiev, which was only approved by Congress after more than six months of partisan feuding, might be small potatoes compared to what Ukrainian President Vladimir Zelensky has in mind for his biggest benefactor.

    Kiev is negotiating with the administration of US President Joe Biden on a long-term agreement that would put Washington on the hook to provide Ukraine with military, economic, and political support for the next decade, Zelensky said on Sunday in his daily video address. Such commitments are needed to ensure Ukraine has the “efficiency in assistance” it needs to stem recent battlefield advances by Russian forces and gain the upper hand, he said.

    “We are working to commit to paper concrete levels of support for this year and for the next ten years,” Zelensky said. “It will include military, financial, and political support, as well as what concerns joint production of weapons.”

    https://www.rt.com/news/596736-ukraine-us-aid-decade/

    Ten more years, taxpayers. Ten more years.

    1. “We are working to commit to paper concrete levels of support

      Pretty easy to negotiate when you’re on the receiving end. And what are we getting in return for all this support? Containing Russia? Probably not worth it.

  7. “Wall Street went on a home-buying spree. Now, more lawmakers want to stop it from ever happening again.

    A litmus test for any political candidate should be their resolve to drive the speculator scum, especially the private equity bloodsuckers, out of the SFH market, and to stop the Keynesian fraudsters at the Fed from turning shelter – a basic human need – into a speculative asset bubble.

  9. We call them half-backs, folks with money to spend that move to Florida from “Up North”, then decide ,that’s not for them, then head up to SC , to bother us with their ill manners….or no manners…
    I was standing in the yard of one of our properties ,speaking with a tenant , when the newcomer ,fresh up from Florida, 2 houses away , shouted across the yard asking if I would sell, loud-like…
    There’s so many things wrong with that equation , I don’t know where to start …..You shouldn’t butt into an ongoing conversation , and you shouldn’t talk business , or try to , unless you’ve properly introduced yourself, and business talk should never be discussed in a louder tone, or voice, then can be heard across a 4 seated coffee table….And Yet, they’ve
    got Money, so we tend to find a way to deal with them …….and hope there’s not too many more of them…..

    1. I’m so Fing sick of these AO’s invading like locusts. I hope they loose it all here….even to my own detriment.

  10. Just $30 million will be returned to the original limited partners. On some deals, investors may see nothing.

    Die, speculator scum.

  11. “Consult your real estate agent to get advice on pricing, expected time to complete the sale and cost to get your properties ready for sale. In the end it may turn out it is better to wait after the rush for the exit is finished.”

    FBs & greedhead sellers who turn to “the experts” in the REIC – an industry of dissemblers – for “advice” are going to be forever inoculated against trusting such self-serving clowns ever again, when they’re sitting on huge losses. Long buttered popcorn.

  14. “A Republican’s bill in the Ohio state legislature aims to drive out institutional owners through heavy taxation. Lawmakers in Nebraska, California, New York, Minnesota and North Carolina are among those proposing similar laws.”

    It doesn’t seem right for Wall Street to buy and sell single family residences like corporate stocks, driving prices to unaffordable levels for families to buy a place to live in.

    “Critics of regulation note that many of the largest investors have bought very few or no homes in the past year. ‘The great trade is done,’ said John Burns, founder of the eponymous housing research and consulting firm. ‘So what are you trying to stop?’”

    Financializarion of basic needs, with direct competition between Megabank, Inc versus Mom and Pop Homebuyer?

    1. Private equity locusts have access to unlimited Yellen Bux gambling money. You & me, not so much.

  15. Does it make sense for the California state government to enter the home lending business?

    1. Yahoo
      Benzinga
      California’s $250 Million ‘Dream For All’ Program Shells Out $150K In First-Time Homebuyer Funds Despite State’s $73 Billion Deficit
      Jordan Robertson
      Thu, Apr 25, 2024, 10:34 AM PDT
      3 min read

      With the median single-family home in California selling for nearly $860,000 in 2023 — more than double the national median — prospective first-time homebuyers are having a tough time breaking into the state’s expensive real estate market.

      Mortgage rates topping 7%, combined with persistent inflation pushing off expected Federal Reserve rate cuts, make affordability even more challenging.

      California allocated $250 million to relaunch its Dream for All program, which seeks to make housing more equitable for first-time homebuyers.

      Dream for All is run by the California Housing Finance Agency, with the agency using a lottery system to give between 1,700 and 2,000 prospective first-time buyers up to $150,000 to purchase homes.

      The catch is that the money is a loan that must be paid back along with a share of the home’s price appreciation when it’s sold if there is any.
      …
      https://finance.yahoo.com/news/californias-250-million-dream-program-173423547.html

      1. “The catch is that the money is a loan that must be paid back along with a share of the home’s price appreciation when it’s sold if there is any.”

        OMG, you can’t make-up ‘dis schitt!

  16. A reader sent these in:

    California’s tech sector employment resumed contraction in March and continues to closely track with the Dotcom meltdown

    https://twitter.com/DonMiami3/status/1784348700858273823

    The lag this cycle is proving to be one of the longest, delayed in part by record deficits and $10tn of fresh money printed post-lockdowns that reset a slowing economy by sending it into an inflationary stratosphere.

    https://twitter.com/DonMiami3/status/1784350842864230792

    Housing inventory crack-up boom in Western FL

    https://twitter.com/DonMiami3/status/1784289553362166024

    Cape Coral 😆

    https://twitter.com/DonMiami3/status/1784317899521319051

    “In a major development, according to reports emerging online, Google has allegedly fired its entire to Python team. Python is a highly sophisticated, general-purpose programming language.”

    https://twitter.com/MacroEdgeRes/status/1784636564972154990

    Enron musk last bet before going under 😂

    https://twitter.com/AlessioUrban/status/1784661417414496522

    43% of small businesses in the US were unable to fully pay their rent in April, the highest share since March 2021. Delinquencies were the largest among restaurants where 52% became delinquent in April. More than 50% of small businesses claim that now rents are higher than 6 months ago. Meanwhile, nearly 60% of firms founded after the pandemic report that they are earning less than a year ago. Rising inflation and shifts in consumer spending are crushing small businesses. Small businesses are the backbone of the US economy.

    https://twitter.com/KobeissiLetter/status/1784623274569109515

    Roughly 73,000 Oregonians are now working part-time jobs because their hours have been cut or because they want a full-time job but haven’t been able to find one, a figure that has more than tripled in the last two years, per the Oregon Employment Department

    https://twitter.com/MacroEdgeRes/status/1784631466997026939

    🚨Housing bubble 2.0🚨
    Movies will be written and Directed . 🎥
    Catalyst ? Parabola yields. Eyes on bonds.

    https://twitter.com/great_martis/status/1784504492983246879

    2024 : As it stands 📝
    Fed fund rate : 5.50 % ↗️
    Gold: 20% ↗️
    Oil : 20% ↗️
    On going ………………….✍️
    Market crashed 2008 .

    https://twitter.com/great_martis/status/1784426480484958292

    Guess they shouldn’t have learned to code

    https://twitter.com/GRomePow/status/1784756292437057750

    Get used to seeing this a LOT

    https://twitter.com/GRomePow/status/1784724970108764284

    Downtown Sarasota was a ghost town last night. I see for sale signs popping up like weeds, everywhere.

    https://twitter.com/Dale83041803/status/1784722538322346154

    Who could have seen this coming!?!

    https://twitter.com/GRomePow/status/1784723141534892408

    Holiday Inn Express in Washington DC sells at a shocking ~80% ‘discount’ to debt owed
    The lender was the only bidder in the foreclosure auction, bidding $18.5M
    The lender was owed $83M as the largest secured creditor
    The 247 room hotel opened in Dec 2022

    https://twitter.com/TripleNetInvest/status/1784567912143245547

    Had coffee yesterday with the CEO of a large multifamily owner / operator + 3rd party manager. He mentioned they can barely keep up with the inbounds from debt funds and banks looking for operational solutions / exits. He specifically harped on Texas and mentioned that a large LP recently took over 5,000+ units in order to try and turn things around. I share this as a reminder that just because people claim “no problems” it can be quite the opposite. This CEO says it feels worse than 2008, but doesn’t know when things will finally flush through.

    https://twitter.com/CleanTo2ndLien/status/1784269031173763288

    The number of NEW single family homes for sale has risen to 477,000, the highest level since the 2008 Financial Crisis. Since the post-2008 lows, the number of new homes on the market has more than TRIPLED from a low of 150,000. Currently, a record high 1 out of every 3 homes for sale is a new home. By comparison, after the 2008 financial crisis, 1 out of 20 homes for sale was a new home. For the first time since 2005, the median existing home price is about to cross ABOVE the median new home price. New homes are the only option for buyers.

    https://twitter.com/KobeissiLetter/status/1784302505045762089

    In what state do you live? I’m in central florida and in my gated community we have 7 active listings 3 of them with price cute. Since 2021 there were 0-2 listings on average and they have been sold within 2 weeks.

    https://twitter.com/Josef98961893/status/1784678067480236359

    The average property tax rate:
    Texas 1.60%
    Florida 0.91%
    California 0.71%
    Average Full Coverage Auto Insurance:
    Florida $3,244 per year
    California $2,663 per year
    Texas $2,205 per year
    Average Median Household Income:
    California $84,094
    Texas $61,874
    Florida $61,777
    Turns out Florida and Texas aren’t so much cheaper after all 🤣

    https://twitter.com/SoCalGoulah8/status/1784625153248534725

    To a boomer, their peak zestimate IS what their house is worth right now and anything less is an actual capital loss

    https://twitter.com/NipseyHoussle/status/1619714856168603654

    Not surprising, using crypto as collateral is like hiring a Poltergeist as an airline pilot.

    https://twitter.com/JohnReedStark/status/1784370571121250455

    Can someone please explain why a company with growing inventories despite price cuts is trading at 2024 PE ratio of 75? $TSLA

    https://twitter.com/MichaelAArouet/status/1784470332658553326

    Hundreds of programs are being cancelled across colleges in Canada right now. International student caps triggered the Great Shittening. How many rug pulled?!? 👀

    https://twitter.com/ManyBeenRinsed/status/1784220005820707324

    Calgary, Canada Mayor Jyoti Gondek has said that the prospect of never being able to own a home gives Canadians “more freedom.” According to Gondek’s disclosure statement, the Calgary mayor owns two properties in Calgary, per Globe and Mail.

    https://twitter.com/unusual_whales/status/1784251408612782504

    Almost every house I see goes pending and then comes back on the market a week later. $800k-$1m north of Orlando. Lots of “buyer did not perform” or “financing fell through” in the listing descriptions.

    https://twitter.com/BuxJackets/status/1784382830312570933

    Mortgage defaults are accelerating. BIGGEST jump in Bank & Power of Sales since I started tracking last year. TRREB just blew through the 200 mark and ITSO through the 100. This only includes active/conditional listings, and not the sold ones.

    https://twitter.com/JonFlynnREstats/status/1784253040481956350

    You think housing prices will keep going up because you’ve seen it all your life. But this is a historic anomaly that is likely to reverse soon: Prices might start shrinking in many places.

    https://twitter.com/tomaspueyo/status/1784148444384293050

    More than 400 Teslas including 58 Cybertrucks sitting unattended in an abandoned mall parking lot in suburban St. Louis.

    https://twitter.com/YammerTime01/status/1784354240548204633

    Housing inventory in Michigan has increased dramatically in the past 3 weeks going from 14,092 active listings in March to 18,113 currently. For reference there were 12,678 active listings 4/2023 which peaked at 18,707 by October last year. Roughly a 30% increase YoY.

    https://twitter.com/DntTaxes/status/1784369267518869729

    Tesla -9% YoY
    Toyota +20% YoY
    Can we acknowledge that Tesla is not managed well by absent CEO Elon Musk?

    https://twitter.com/SaltasticTakes/status/1784221962773950782

    $TSLA has fully automated virtually EVERYTHING they can in their factories. In fact, the process to make a car is a decades old one, which was long-ago perfected. Yet, $TSLA’s cost to make a car in 1Q24 was ~$36K/car, and their op. margins were an industry lagging 5.5%.

    https://twitter.com/GordonJohnson19/status/1784208778226762008

    1. The Google/Python layoff makes no sense. Python is an open source product, it’s not a Google product. Something is missing from that headline. I suppose Google could have employees contributing to Python as a way of influencing it’s future development, but that would be charity.

      1. I do recall that Google did reverse engineer Java for its Android platform, so maybe that is what they were up to?

      2. Every time creepy Orwellian Google kicks more “woke” employees to the curb, an angel gets its wings.

    2. This CEO says it feels worse than 2008, but doesn’t know when things will finally flush through.

      After 16 years of QE, the Fed has blown its wad and the onrushing financial crisis will be orders of magnitude worse than the 2008 GFC, especially since there was no accountability for the systemic fraud and malfeasance that caused that crash.

    3. More than 400 Teslas including 58 Cybertrucks sitting unattended in an abandoned mall parking lot in suburban St. Louis.

      ‘Murica is starting to look like a post-apocalyptic movie set.

      1. starting?????? Where you been for the past 30 years?

        Ross Perot was right. Out of the big cities and it’s a wasteland.

      2. If anything, it’s a credit to Tesla that they haven’t been stolen like Kias or Hyundais. Then again, they’re probably dead with no way to charge them and drive off.

  18. Yet another video of a massive lineup for a job fair in Toronto is making rounds on social media this week, with similar clips igniting debates about the competitive job market in Toronto, rising unemployment, and housing.

    The latest congested job fair took place at a Mediterranean seafood restaurant, Toronto Beach Club, located just a few steps away from Woodbine Beach at 1681 Lake Shore Boulevard E.

    A spokesperson confirmed to blogTO that the restaurant was hiring for and interviewing for several hourly positions, including servers, bartenders, bar backs, server assistants, hosts, line cooks, and prep cooks, as well as a few management positions.

    While 4,000 people registered online, roughly 1,000 job seekers showed up at the hiring fair. In a video posted to TikTok, the massive lineup outside the restaurant is shown along with the caption, “Every mf from Toronto lining up to apply to an open interview for dishwasher job.”

    The spokesperson clarified to blogTO that while the restaurant didn’t interview for dishwashers, they did collect over 350 resumes for the role.

    Many Toronto residents joined in the comments section under the video to discuss current challenges faced by job seekers in the city’s market.

    “I had a singular interview in weeks of applying, it’s wild out here,” one person wrote in response to the TikTok.

    Other congested job fairs in Ontario over the past year include ones hosted by McDonald’s, Fortinos, Bath & Body Works, Garage, Dufferin Mall, LCBO, and Pearson Airport.

    According to the Toronto Regional Real Estate Board, the unemployment rate in Toronto was 7.5% as of March 2024, up 0.4% from the previous month. Full-time employment was down 60,100 jobs from the peak in July 2023 but stood 12,700 jobs above the trough in January 2024.

    https://dailyhive.com/toronto/toronto-job-market-huge-lineup-people-apply-restaurant

    1. Are consumers really stupid enough to believe that toothpaste can repair the enamel on their choppers?

  21. The food supply is a Monopoly, in case you didn’t know it.
    And the end game is the Powers that Be, ( the One World Order creeps) want to control all consumption and resources and force deprivation and enslavement on planet.
    You know they hate you if they want you to eat bugs and fake food. Its so insulting.

  22. Mortgage defaults are accelerating. BIGGEST jump in Bank & Power of Sales since I started tracking last year. TRREB just blew through the 200 mark and ITSO through the 100.

    And still no Spring Miracle Revival in sight, despite what the REICs promised all winter. But once #Bidenomics delivers the promised economic revitalization, the rising tide will lift all shacks, right?

  23. ‘When residents move in over there, they’ll be close enough to see what I’m watching on TV. Or what I’m reading. I’ll be able to see into their bathrooms…We bought a peaceful island lifestyle. It was heaven. It’s gone. This used to be a kind and friendly place. Now everybody hates each other’

    I’ve been saying this airbox living with all the problems isn’t going to work long term Wendy.

  24. ‘We have had buyers where they have gone under contract, they’ve done the inspections, the home is nearly perfect — there’s nothing wrong with it,’ Leavenworth said, ‘And then they get an insurance quote for $4,000 — which really isn’t that bad in this market — and they go you know what, I don’t want to move to Florida’

    Not a problem Christina, one thousand people move to Florida every day. It’s been that way since 2004 I’m told.

  25. ‘That is where the insurance issue runs smack dab into the pricing. The fees have gone up dramatically the last few years in most complexes, I mean hundreds a month in increases. This is now limiting how buyers think about what is in their price range… not just the sticker price but the per-month expense which continues to grow. And property taxes went up almost $100 a month on rental condos last year too! It affects how the unit cash flows, with many many rentals now not able to cover all the expenses, so some owners will decide to sell’

    The good new is UHS says you can always sell.

  26. ‘One multifamily agent in Austin said Class C, 1980s-era apartment properties were selling at $180,000 or $190,000 a unit at the height of the market in 2022. Now, those same properties are ‘struggling to trade at $120,000 a door.’ To think that pricing is going to rebound like that is insane’

    Fun fact: 1980’s airboxes in Austin probably cost $20,000 each to build. Maybe less.

  27. ‘To be perfectly honest, anyone buying real estate in San Francisco right now is not looking at a cap rate…They’re saying, at $250 a foot, I am 70% below replacement cost, and in some cases your cap rate might be zero. You’re barely covering your expenses because you’re not that well leased’

    Don’t catch yerself a falling guillotine Connor. BTW I don’t think you know what cap rate means.

  28. ‘Dear Nancy, I had planned to sell our family cottage and an investment property next year. With the recent budget change and the expected capital gain from the sale of these two properties being more than $250,000 I’m not sure I should wait. What do you think? Dear Steve, Deciding to sell a real estate property is not something that can be done as quickly as when selling a stock or bond. There is something to think about that could come into play if you try to sell before the June 25th deadline. There are many other real estate investors that will be trying to do the same thing. That can cause an increase of listings for sale. When there is more supply than demand, prices go down. You could end up selling for less than you expect. You could end up losing more money than the higher tax rate if you don’t wait’

    Nancy is right Steve, listen to her. Don’t give it away!

  29. “created a wind tunnel effect, meaning patio furniture on the neighboring balconies is being blown around”

    Oh my, should be a sight to behold during a hurricane.

  30. ‘I am seeing an increase in people wanting to list their properties now that this is going into effect…But I think potentially sellers are thinking they would give a deal if it could close early’

    See Beth, yer giving it away.

    ‘In Muskoka, the heart of Ontario’s cottage country, John Fincham, a broker with Re/Max Parry Sound Muskoka, said he believes the capital gains tax ‘is going to prompt a lot of people to list…You’ve got a combination of inventory to choose from, and lower prices’

    That’s the spirit John, keep up the good work!

  31. Strained Chinese cities struggle to pay home buying subsidies

    By Liangping Gao and Marius Zaharia

    BEIJING/HONG KONG (Reuters) – Amy Wang was counting on a 100,000 yuan ($13,800) subsidy promised by authorities in the eastern Chinese city of Weifang to fit and furnish an apartment she bought two years ago. Still waiting for the money, she is yet to move in.

    The 30-year-old now pays 6,000 yuan of her 8,000 monthly salary on the mortgage for the 1.1 million yuan apartment and another 1,800 yuan to rent another one, relying on her parents for other basic expenses.

    “I feel under a lot of pressure,” said Wang, who works in electronics manufacturing, and bought the bare shell of her apartment, without floors, interior walls or other fittings – which is common in China.

    Weifang, with a population of more than 9 million and an economy larger than Croatia’s, and dozens of other Chinese cities, have promised subsidies and other incentives to homebuyers to prop up the ailing property sector.

    But the real estate downturn also affects the ability of cities to lease land to developers, a key revenue source.

    https://www.reuters.com/world/china/strained-chinese-cities-struggle-pay-home-buying-subsidies-2024-04-29/

    1. “The 30-year-old now pays 6,000 yuan of her 8,000 monthly salary on the mortgage for the 1.1 million yuan apartment and another 1,800 yuan to rent another one, relying on her parents for other basic expenses.”

      The Chinese REIC hooked a real big fish!

  32. ‘And then they get an insurance quote for $4,000 — which really isn’t that bad in this market — and they go you know what, I don’t want to move to Florida.’”

    Good move, we have alligators that eat dogs and mosquitos big enough to carry off your cat. Stay in New York.

      1. That’s pretty bold especially during the day. I won’t take Ruby out in the scrub desert in the dawn or dusk because of coyotes.

  33. Do you worry that soaring Treasury yields during a period of persistently higher-for-longer rates may send stock prices back down into the CR8R they fell into in 2022?

    1. The Wall Street Journal
      Soaring Treasury Yields Challenge Stock-Market Gains
      Jack Pitcher
      Sun, Apr 28, 2024, 4:00 AM PDT
      4 min read
      In this article:

      This month’s rise in long-term interest rates is raising investors’ anxiety about what is next for the stock market.

      Treasury yields touched new 2024 highs this past week after fresh data showed lingering inflation. Wall Street traders entered the year expecting the Federal Reserve to cut rates a half-dozen times. Now they are pricing in just one. The yield on the benchmark 10-year note, which rises as bond prices fall, has climbed nearly a percentage point from its February lows, settling Friday at 4.668%.

      Many worry rebounding yields will hamper further gains, especially when stocks are relatively expensive compared with corporate earnings. Rising yields sparked steep stock declines in 2022, cutting into the added return investors receive in exchange for the extra risk of holding stocks instead of bonds, while eroding the present value Wall Street places on companies’ future profits.
      …
      https://finance.yahoo.com/news/soaring-treasury-yields-challenge-stock-110000720.html

      1. “Wall Street traders entered the year expecting the Federal Reserve to cut rates a half-dozen times. Now they are pricing in just one.”

        So I am wondering: If inflation remains persistently higher-for-longer, why would the Fed cut rates even one time?

    2. If day-to-day fluctuations in mortgage rates affect your purchase decision, then you can’t afford to buy.

      1. Markets
        CNBC TV
        Watchlist
        Personal Finance
        As home sellers, buyers wait on a Fed cut, here’s how mortgage rates have impacted the spring housing market
        Published Mon, Apr 29 2024 2:40 PM EDT
        Updated 3 hours ago
        Ana Teresa Solá
        A man and a woman stand outside a house with a real estate agent.
        Vitapix | E+ | Getty Images

        Key Points

        – The 30-year fixed rate mortgage rose to 7.17% for the week ended April 25, according to Freddie Mac data via the Federal Reserve.

        – While some buyers have come to terms with 7% interest rates, the volatility of rates is “really the thing that’s going to impact the market the most,” said Nicole Bachaud, a senior economist at Zillow Group.

        People looking to buy or sell a home this spring are paying close attention to mortgage rates.

        The average 30-year, fixed-rate mortgage rose to 7.17% for the week ended April 25, according to Freddie Mac data via the Federal Reserve. The rate was 7.10% the prior week.

        Buyers and sellers may not see any relief soon.

        It remains unclear when the Fed might make its first rate cut. Experts anticipate policymakers will continue to hold rates steady in this week’s meeting and will trim borrowing costs in the second half of the year.

        “I believe our first rate cut is penciled in for July,” said Matthew Walsh, assistant director and economist at Moody’s Analytics.

        Until then, average mortgage rates might continue to bounce around between 6.5 to 7.5%, Walsh said.

        “We might not see rates fall in any meaningful way until [the] later half of this year,” he said.

        Rates will keep ‘buyers and sellers on their toes’

        “The biggest thing when we’re looking at mortgage rates right now is volatility,” said Nicole Bachaud, a senior economist at Zillow Group.

        While some buyers have come to terms with 7% interest rates, the volatility of rates is “really the thing that’s going to impact the [housing] market the most,” Bachaud said.

        When rates bounce around from week to week, a buyer looking into a house one day might not be able to afford the same property the next day, she said.
        …
        https://www.cnbc.com/2024/04/29/how-mortgage-rates-have-influenced-the-spring-housing-market.html

    1. Markets
      CNBC TV
      Updated Tue, Apr 30 2024 7:31 PM EDT
      S&P 500 futures fall as Wall Street braces for Fed rate decision: Live updates
      Hakyung Kim
      NEW YORK, NEW YORK – APRIL 29: Traders work on the floor of the New York Stock Exchange during morning trading on April 29, 2024 in New York City. Stocks opened high Monday morning amid a Federal Reserve rate decision and the monthly jobs report later this week.
      (Photo by Michael M. Santiago/Getty Images)

      S&P 500 futures slipped Tuesday night as investors looked ahead to the Federal Reserve’s rate policy decision.

      Futures linked to the broad market index slipped 0.2%, while Nasdaq 100
      futures dropped 0.4%. Dow Jones Industrial Average futures ticked lower by 8 points, or 0.02%.

      In after-hours trading, Amazon
      advanced about 1% following better-than-expected earnings and revenue in the first quarter. Chipmaker Advanced Micro Devices tumbled more than 6% after issuing an in-line revenue forecast for the current quarter, while Super Micro Computer slid 9% as revenue came in slightly below the Street’s consensus estimates.

      During Tuesday’s main trading session, the Dow and S&P 500 both shed more than 1%. The tech-heavy Nasdaq Composite declined 2%. Bond yields jumped after the first quarter’s employment cost index came in higher than anticipated, reigniting worries that the Fed will keep interest rates high for even longer.

      The month ended on a sour note for all three major averages, with the S&P 500 and the Nasdaq posting losses of more than 4% in April. The Dow fell 5% for its worst monthly performance since September 2022.
      …
      https://www.cnbc.com/2024/04/30/stock-market-today-live-updates.html

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