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Those Who Stretched Themselves Financially To Get Into Homes, Their Payments Are Just Skyrocketing

A report from Bloomberg. “In some Texas and Florida cities, foreclosures are rising, ­suggesting early signs of distress in the once booming housing market. In Houston, foreclosure filings jumped 37% in the first quarter from a year earlier, according to data from property tracker Attom. That was the biggest increase among the 15 metro areas with the most filings, followed by Orlando, Tampa and Miami. Homeowners who overpaid during the pandemic boom and used low-down-payment loans are getting into trouble, says Stephanie Parks, operations manager at the Short Sale Queen in Plano, Texas. Her company helps homeowners sell homes that aren’t worth what’s owed on them, often requiring some negotiation with lenders that stand to take a loss. ‘This all piles on for homeowners with lower income or those who stretched themselves financially to get into homes,’ she says. ‘Their payments are just skyrocketing.'”

The Real Deal on Florida. “Tech founder Brian Long and New York Times executive producer Liz Day sold their waterfront Coral Gables mansion for $16.5 million, a loss compared to their purchase price in 2021. It’s the latest deal to signal the market has mellowed from its pandemic era frenzy. Long and Day bought the Coral Gables mansion for $19.8 million in 2021, records show. Long and Day listed the mansion for $21.5 million in December and dropped the price to $20 million in January, Redfin shows. The $16.5 million price marks a nearly $3.3 million loss from their purchase price three years ago.”

The Wall Street Journal on New York. “When 432 Park Avenue launched sales to much fanfare in 2013, the condominium was hailed as one of Manhattan’s most prestigious addresses. The sleek, roughly 1,400-foot-high tower on Billionaires’ Row was briefly the tallest residential building in the Western Hemisphere. Within just a few years, however, the perception of the tower as a shiny new beacon for the superrich had been tarnished by claims that the building was beset by construction defects. Some homeowners are now unloading their properties for a loss, while would-be sellers are cutting prices. Billionaire financier Thomas Peterffy, for example, recently sold his 84th floor unit at 432 Park for $13.5 million, some 37% less than the $21.39 million he paid for it in 2016, property records show.”

The New York Post. “Compared with the glitzy, modern towers that punctuate the Manhattan skyline, the Plaza is losing its luster. In fact — since it was converted into a hybrid condominium and hotel in 2008 — the building never really gained much steam. Currently, according to StreetEasy, nearly a quarter of the Plaza’s condo units are listed for sale. Many have seen big price drops or have been sitting on the market, sometimes languishing there for years. Currently, Charlie Attias of Compass holds around a dozen Plaza listings. Today’s Plaza listings ‘are very well priced,’ Attias said. ‘The Plaza has great deals now. Prices are back to where they were 15 years ago, so there are deals to be made there. I think there is an oversupply in the Midtown high-end condo luxury market because of all the new construction, and it takes time to get absorbed,’ Attias said.”

“A few months ago, Tim and Jenny Smucker, of Smucker’s jam fame, sold their Plaza pied-à-terre — a one-bedroom with a terrace — for $2.5 million at auction. They had paid $2.9 million three years ago. In 2023, investment banker Ken Moelis sold his Plaza condo for $10.75 million — some 16 years after purchasing the three-bedroom spread for a higher $11.23 million. And five years ago, shortly before COVID, fashion designer Tommy Hilfiger sold his Plaza place for a mere $31.25 million — after it sat on the market for 11 years, once priced at $80 million.”

Newsweek on California. “A one-bedroom condo in the Yerba Buena of San Francisco is on the market for nearly $670,000. The property’s listed price on Zillow is less than its value has been since 2004, when it sold for $499,000. The home was at one point in May 2019 listed for sale for nearly $1.1 million but the listing was removed in June of that year. The next time it went on the market, it was valued at 32.5 percent less at $729,000. Since then, the unit has seen its pricing go down to its current listed price of $669,000. The market in the San Francisco-Oakland-Hayward area has plunged by nearly 11 percent on a yearly basis from the height of the pandemic when it shot up almost 18 percent, according to the Federal Reserve Economic Data, which cited Realtor.com.”

“‘I think this is a pretty normal price reduction obviously for San Francisco. I wouldn’t say it was anything drastically different. I think it’s just the overall market condition has changed because of the interest rate increase,’ Jing Fang, a real estate broker with a decade of experience in the Bay Area, told Newsweek.”

Market Watch. “Bank OZK’s stock was headed toward its largest one-day percentage drop in more than four years on Wednesday after Citigroup analyst Benjamin Gerlinger downgraded the Little Rock, Ark.-based lender to sell from buy on concerns over the health of two large loans. ‘We have newfound but substantial concerns with what we believe to be OZK’s largest individual loan (totaling $915 million), a multi-use project in Atlanta (‘Echo Street West’; $135 million loan) and life sciences construction lending in general,’ Gerlinger said. Gerlinger said has ‘trepidation’ over the two loans because of a lack of tenants thus far for the projects. Since 2020, the research and development district on San Diego’s waterfront backed by Bank OZK has been under developent. ‘We believe 0% of the 1.7 million square feet is leased — indicative of a difficult life sciences construction lending market,’ he said.”

The Deep Dive. “Prime Minister Justin Trudeau recently admitted that his government’s approach to housing aims to benefit existing homeowners, predominantly baby boomers, at the expense of younger Canadians. In an interview on The Globe and Mail’s City Space podcast, Trudeau emphasized the importance of maintaining high property values, stating, ‘Housing needs to retain its value. It’s a huge part of people’s potential for retirement and future nest egg.’ The Prime Minister’s comments have drawn sharp criticism from various quarters. John Pasalis, President of Realosophy Realty Inc., expressed his frustration on X, arguing that the government’s policy is unfair to younger generations.”

“‘It makes it crystal clear that the market for housing is not a free market where market forces set the price. It’s a manipulated market where governments drive home prices up to benefit homeowners,’ Pasalis posted. He further noted the political risk of such statements: ‘Does one need a Comms degree to know that this will piss off an entire generation who feel like they’ve been shut out of ever buying a home? Hearing our Prime Minister admit he’s trying to keep home prices high? Unbelievable!'”

The Telegraph. “Britain’s supply of homes for sale is at its highest point in eight years, according to research. The average estate agent has 31 homes for sale, up 20pc on the same point last year and the highest number since 2016, according to property website Zoopla. Almost a third of homes for sale were also listed for sale in 2023 but failed to find a buyer. Tom Bill, head of research at estate agency Knight Frank said: ‘Growing supply is one reason that UK house price growth this year will be limited to low single digits. However, the main obstacle for buyers is stubborn services inflation, which is keeping mortgage rates high. Asking prices therefore need to reflect the fact that buyers have more choice and tighter budgets.'”

From YLE. “Property prices dropped by an average of 4 percent in Finland during the month of April compared to the same month last year, according to preliminary data released on Tuesday by Statistics Finland. The data also revealed that apartment prices were down by an average of 5 percent across the country, while terraced houses fell by 1.6 percent. Among the country’s bigger cities, Vantaa saw the largest fall in property prices, as they were down by 9.1 percent year-on-year. There were also sharp drops in Oulu (7.7 percent) and Helsinki (6.4 percent).”

News.com.au in Australia. “Tradies and homeowners are nervous that a building company is on the verge of collapse after the construction firm lost its licence and appointed restructuring partners. The state building regulator, the Queensland Building and Construction Commission (QBCC), suspended the licence of Preferred Homes earlier this month, on May 7. Brisbane-based Preferred Homes had racked up quite a record prior to that, including non-payment of debts and failure to comply with an audit. The company’s restructuring partners are investigating whether the business is insolvent and will report their findings to affected creditors.”

“Ashton Close, who runs a brick rendering business, is currently out of pocket $8000 for two projects he worked on for the builder. ‘It was evident for us that they were having problems when they refused all communication efforts via phone when we began to follow up overdue invoices in December,’ he told news.com.au. ‘It boils my blood when they can’t answer calls.’ Mr Close said he knows of one homeowner who had signed a contract with Preferred Homes all the way back in 2020 but the build was still going. ‘The house is still far from completed,’ Mr Close said. He knows of at least six current projects the builder has underway, one of which is ‘riddled with defects.’ ‘They’ve got all these jobs that they haven’t touched for months,’ he added. ‘Why did it take five plus months for the QBCC to finally suspend their QBCC licence? If the QBCC had of acted quicker, it would have substantially limited contractor and customer pain.'”

From Nikkei Asia. “China’s recent plan to help local governments arrange purchases of unsold private-sector housing comes amid increasingly clear cracks in the finances of municipalities that rely on the property market for revenue. Underscoring the problem are the struggles of local government financing vehicles — investment companies used as an alternative channel to finance infrastructure spending — to repay their massive debts. This difficulty is illustrated by a rise in ‘hidden’ defaults outside public debt markets.”

“A local government financing vehicle (LGFV) in the Yunnan province capital of Kunming has missed the deadline for repaying the principal on 260 million yuan ($35.9 million) borrowed from a fund whose capital came mainly from wealthy individual investors. The LGFV, set up to fund redevelopment of a historic district in the city, faced a cash crunch with the real estate market slump that began in 2020. The most recent documents available, at the end of 2021, show it had 280 million yuan in cash and deposits, and 1.1 billion yuan in debts coming due within a year.”

“These vehicles raise capital through various methods, including publicly offered bonds and bank financing as well as shadow banking instruments like trust products. The close ties between LGFVs and local authorities have led to the vehicles being perceived as holding a tacit government guarantee, encouraging companies and affluent retail investors to put money into them. Data from research firm Shanghai DZH shows 196 instances of repayments not being confirmed for trusts or private investment products as of May, 99 of which have occurred just since 2023. This is believed to reflect LGFVs running behind on payments.”

“The People’s Bank of China has earmarked 300 billion yuan for financial institutions to lend to the state-owned enterprises that will do the actual buying. The central bank expects this to produce 500 billion yuan in loans. Local governments generally earn 20% to 30% of their revenue from the sale of land usage rights to developers, with some relying on it even more heavily. Few expect the buying program to resolve the problems with the housing market. BOC International (China) estimates that 6 trillion yuan would be needed to bring housing inventory to an appropriate level.”

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This Post Has 100 Comments

  1. HBB warning to readers: bloomberg is globalist scum media that peddles conspiracy theories, election lies and mis, mal and dis-informations.

  2. ‘Her company helps homeowners sell homes that aren’t worth what’s owed on them, often requiring some negotiation with lenders that stand to take a loss. ‘This all piles on for homeowners with lower income or those who stretched themselves financially to get into homes,’ she says. ‘Their payments are just skyrocketing’

    Senator running deer heap angry Steph.

    1. FBs who through their recklessness and greed made housing unaffordable for the prudent and responsible are now meeting their financial Waterloo? This is my “gravely concerned” face.

  3. ‘A one-bedroom condo in the Yerba Buena of San Francisco is on the market for nearly $670,000. The property’s listed price on Zillow is less than its value has been since 2004’

    I have seen multiple steaming pile reports recently that shacks and airboxes are at all time highs.

    1. You’ve probably seen that Case-Shiller is showing a bunch of markets putting in new highs, the charts are a whole bunch of wtf. At some point in the future you will be reporting on people who are looking back on this point as the biggest mistake they ever made. What advice would you give the people who are freaking out and think they should buy right away?

      1. I see the headlines but I haven’t read case shiller articles for many years. They are out of date. Morely, shiller is a fraud. Chairman Bob and Ho Chi Zandi were the very first dogs to call for a guberment/central bank ‘floor’ for shacks in the 2000’s. A pox on their shack.

        1. I remember Bill Gross of PIMCO fame also calling for a floor under house prices. These dogs are “free market capitalists” while the profits are in bloom, but they quickly turn socialist when a cold front arrives.

  4. In Houston, foreclosure filings jumped 37% in the first quarter from a year earlier, according to data from property tracker Attom.

    Is that a lot?

  5. Homeowners who overpaid during the pandemic boom and used low-down-payment loans are getting into trouble, says Stephanie Parks, operations manager at the Short Sale Queen in Plano, Texas.

    FBs don’t become “homeowners” until the last mortgage check clears, Steph.

  6. ‘He further noted the political risk of such statements: ‘Does one need a Comms degree to know that this will piss off an entire generation who feel like they’ve been shut out of ever buying a home? Hearing our Prime Minister admit he’s trying to keep home prices high? Unbelievable!’

    He’s not going to be around much longer John. But he does have a way of putting his foot in his pie hole when he opens it.

  8. ‘He knows of at least six current projects the builder has underway, one of which is ‘riddled with defects.’ ‘They’ve got all these jobs that they haven’t touched for months,’ he added. ‘Why did it take five plus months for the QBCC to finally suspend their QBCC licence? If the QBCC had of acted quicker, it would have substantially limited contractor and customer pain’

    This giant empty sh$thole lets entire towers go up that are riddled with defects Ashton.

    1. Imagine if complicit or incompetent inspectors were held criminally and civilly liable for signing off on such shoddy work.

  9. ‘China’s recent plan to help local governments arrange purchases of unsold private-sector housing comes amid increasingly clear cracks in the finances of municipalities that rely on the property market for revenue. Underscoring the problem are the struggles of local government financing vehicles — investment companies used as an alternative channel to finance infrastructure spending — to repay their massive debts. This difficulty is illustrated by a rise in ‘hidden’ defaults outside public debt markets’

    This whole episode shows how globalist scum media carry water for Xitler at every turn. Sure, these broke a$$ local guberments are gonna buy all those half finished airboxes! So what are they going to do with them? 90% of people already own an airbox. Are you going to finish them and throw that on the pile? And the pesos Xitler allocated are a drop in the bucket. Central planning!

  10. Ben posted a YouTube video last night…

    Naples Florida | Housing in Turmoil
    Ben Grieco

    This is a Realtor quote from that video.

    “I have two condos listed right now for sale, one is at $240,000 and one is at $275,000 They’re both overpriced and really should be much lower, Obviously we have owners that are still trying to catch the market that’s not there anymore.”

    1. So if the listings aren’t priced to sell, why did the UHS agree to take them?

  12. One of Slovenia’s Last Conservative Media Hold-Outs Raided by Police

    by Tamás Orbá | The Europeaan Conservatieve
    May 30th 2024, 6:20 am

    In the most blatant example to date of the leftist Slovenian government’s media purge, authorities raided the offices of conservative outlet Nova24TV, the media channel reported on Wednesday, May 29th. The home and car of the channel’s director Boris Tomašič, a long-time government critic, were also searched, and his laptop and phone were confiscated.

    Appearing on a talk show immediately after the raids, Tomašič explained that the raids had been carried out simply to obstruct the channel’s work and intimidate its staff before the upcoming European elections.

    The raids were carried out just ten days before the EU elections. “Coincidence? Certainly not,” Tomašič wrote on X.

    “They came to intimidate us. You won’t succeed. We are not afraid of you. We will continue our work,” Tomašič said. Neither he nor any other employee of Nova24TV are suspects in the investigation, he stated.

    https://www.infowars.com/posts/one-of-slovenias-last-conservative-media-hold-outs-raided-by-police

    1. One would think that given how much Slovenia suffered under communism that they would avoid leftism like the plague.

      1. The young smart enough to leave are already gone, and the old don’t know anything else. Expect to see the old standing in long lines with buckets waiting for their potato rations.

  13. In Upstate Rural SC, I’m noticing a trend ,among young family types, they’re building their own aprox 900 sq. ft homes , and they look good….We have a friendly building inspector, who is very helpful , people are allowed to be their own contractor , though you can’t sell for 2 years then,
    I spoke to several of them ,they claim they’re only spending 50K , with them and their friend doing 80% of the work, maybe this is the future, folks building their abode themselves ,for themselves.

    My other subject today is the famous Habitat for Humanity ,crowd …
    they’re a huge fraud , and ripoff, stay away from them.
    the last 3 houses I watched them build ,in the upstate here ,they gave them all to single Methhead Moms with teenagers , they destroyed them all ,very quickly, a lot of good work went to waste there..

    1. This is great news people finally realizing they need starter homes they can afford. And i have downsized probably 2/3 in 15 years so 900 sq ft is plenty big enough for anyone to start a family. everything is digital, streaming SSD drives, not much need for psychical media, anymore unless you are married to your 700 VHS collection……….used to live in the low country Charleston

      1. And i have downsized probably 2/3 in 15 years so 900 sq ft is plenty big enough for anyone to start a family.

        Make America Poor Again! Heck, maybe we should go back to the practice of kicking out 12 year olds when there is no money like in the early 1900s.

        How many kids are easy to raise in 900 sqft? I’m curious.

        1. well if you kick them out of the house all day and go play, in the yard, ride bikes, go to the school and play baseball, like we did …..2 easily. remember there is nothing BIG that is needed today, everyone is on the phone or a laptop, flat screen tv on the wall… heck you can put all your clothes in drawers under the bed, more room saved. https://www.afw.com/full-capitans-bed

          2. Well, I know a lot of Europeans that raised 4-8 kids in a home like that. A lot of fun. Playing soccer with one goal set in the master bedroom and the other one in the living room. Chase that ball down the hallways until neighbors go nuts or join in the fun. Big houses like in America, only in America.

          3. Yeah, European living standards by many measurements have always been quite low comparatively.

        3. The traditional post-war ranch houses are all 900-1000 sq ft. You can raise two kids comfortably, three if you bunk a couple of them up. You just accept that you didn’t have things to play with; you had siblings to play with. One set of dishes and towels and sheets etc. Most of those houses had a full basement and a real backyard too, so it wasn’t as cramped as one would think.

          1. Great point on yards and basements. Those are not really options in the 2020s when it comes to the townhouse starter home.

    2. 850 square feet is the minimum required here in Southern Colorado, but you can apply for a variance to build smaller.

      LOL@ paying to heat and cool some 4,000 sf McMansion with only two people living in it.

  14. Russia Today — Biden could lift restrictions on Ukraine’s use of US weapons within weeks (5/30/2024):

    “The White House has begun a formal assessment on whether Kiev should be allowed to use US-donated weapons to strike targets deep inside Russia, the New York Times reported on Wednesday.

    Kiev has complained that its military is being undermined by a US ban on the use of weapons outside the territory over which it claims sovereignty. There is increasing pressure from senior Western officials to lift these restrictions as Ukrainian forces are losing ground to their Russian opponents.

    Anonymous White House insiders told the Times that “a very brisk process” was underway to produce recommendations for President Joe Biden on the issue. The current restrictions were designed to prevent further escalation of hostilities and the prospect of a direct conflict between NATO and Russia.

    According to the report, the policy could be changed in the next two weeks, before Biden is scheduled to hold a series of face-to-face meetings with key allies. The sources say no formal announcement would be made if he does reverse course. Instead, “American artillery shells and missiles will just start landing on Russian military targets.”

    https://www.rt.com/news/598460-biden-policy-strikes-russia/

    You’re all gonna die in a nuclear war, but at least there’s no more mean tweets now.

    FJB

    1. Antiwar — Israel Used US-Made Bombs In Rafah Tent Camp Massacre (5/29/2024):

      “Investigations from CNN and The New York Times found that the bombs Israel dropped on a tent camp in Rafah on Sunday were made in the US.

      Weapons experts examined debris that was filmed at the scene of the strike and identified it as a GBU-39 Small Diameter Bomb, a munition manufactured inside the US by Boeing.

      The Israeli military said it used two munitions that had small warheads, each packed with 17 kilos of explosives, which is the traditional payload of a GBU-39. The GBU-39 is designed for precise targeting, but weapons experts say there’s always a risk of mass casualties when dropping the bomb on such densely populated areas.

      At least 45 displaced Palestinians were killed in the massacre, including 12 women, eight children, and three elderly people. Despite claiming to oppose a major attack on Rafah, the Biden administration has made clear that the tent camp bombing won’t impact US support for Israel.”

      https://news.antiwar.com/2024/05/29/israel-used-us-made-bombs-in-rafah-tent-camp-massacre/

      Cattle tax slaves, it’s not a war crime, it’s a “jobs program”

    1. isn’t this what title insurance is supposed to be for? (you know besides it’s actual use as ‘additional dealer profit”)

  16. “‘I think this is a pretty normal price reduction obviously for San Francisco. I wouldn’t say it was anything drastically different. I think it’s just the overall market condition has changed because of the interest rate increase,’ Jing Fang, a real estate broker with a decade of experience in the Bay Area, told Newsweek.”

    Higher-for-longer interest rates = CR8R.

    I wonder how long it will take for this to happen outside of the Bay Area (e.g. San Diego)?

    1. Yahoo
      Reuters
      Analysis-Biggest month of bond supply to test markets as rate cut bets fade
      Illustration shows U.S. Dollar and Euro banknotes
      FILE PHOTO: Fed Chair Powell speaks at a press conference in Washington
      Analysis-Biggest month of bond supply to test markets as rate cut bets fade
      Illustration shows U.S. Dollar and Euro banknotes
      Harry Robertson
      Wed, May 29, 2024, 10:07 PM PDT
      4 min read
      By Harry Robertson

      LONDON (Reuters) – Global bond markets face the biggest amount of net sovereign issuance so far this year in June, just as economic data throws rate cuts into doubt, testing investors’ so-far strong appetite for the debt.

      Net government bond supply is likely to rise to $340 billion for the United States, euro zone countries and Britain, according to data from lender BNP Paribas, as redemptions fall and central banks continue to slash their holdings of the paper.

      Although analysts expect markets to absorb the supply, it has the potential to add to upward pressure on yields – which move inversely to prices – and spook investors who were hoping that rate cuts would spur a bond market rally this year.

      A pair of weak U.S. Treasury auctions on Tuesday may have been an early sign that the market, already grappling with strong economic data that has caused traders to push back their bets on when central banks will start cutting interest rates, is struggling to remain optimistic.

      “We still have a lot of supply that needs to be absorbed,” said Camille de Courcel, head of G10 rates strategy for Europe at BNP Paribas, adding that the euro zone will see its second highest month of net issuance so far this year in June.

      De Courcel said she is wary of buying longer-dated bonds in June, even with the European Central Bank likely to lower interest rates, as economies recover and supply is strong. “We are very mindful of the risks that (yields) head higher as we go into June, especially in Europe,” she said.

      Developed market governments are still borrowing large amounts as they help their economies recover from the shocks of the COVID-19 pandemic and the energy crisis sparked by Russia’s invasion of Ukraine. Elections in the United States and Britain, and for the European Union’s Parliament this year are adding to the pressure to keep spending.
      …
      https://finance.yahoo.com/news/analysis-biggest-month-bond-supply-050756187.html

      1. “help their economies recover from the shocks of the COVID-19 pandemic”

        CCP Flu didn’t destroy the economy. Government destroyed the economy.

        Greatest FRAUD of my lifetime.

    3. Business
      Mortgage rates snap three-week pullback, pushing average rate on a 30-year home loan back above 7%
      File – Carpenters work on a home on Sept. 19, 2023, in Marshall, N.C. On Thursday, May 30, 2024, Freddie Mac reports on this week’s average U.S. mortgage rates. (AP Photo/Chris Carlson, File)
      By ALEX VEIGA
      Updated 4:50 PM PDT, May 30, 2024

      LOS ANGELES (AP) — The average rate on a 30-year mortgage moved back above 7% this week, a setback for home shoppers at a time when the U.S. housing market is already slowing under the strain of elevated home loan borrowing costs and rising prices.

      The rate rose to 7.03% from 6.94% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.79%.

      This is the first increase after a three-week pullback. Higher mortgage rates can add hundreds of dollars a month in costs for borrowers, limiting homebuyers’ purchasing options.

      Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also rose this week, pushing up the average rate to 6.36% from 6.24% last week. A year ago, it averaged 6.18%, Freddie Mac said.

      Mortgage rates are influenced by several factors, including how the bond market reacts to the Federal Reserve’s interest rate policy and the moves in the 10-year Treasury yield, which lenders use as a guide to pricing home loans.

      Yields climbed earlier this week on worries about tepid demand for Treasury bonds following several U.S. government auctions and a surprising report showing confidence among U.S. consumers is strengthening. Economists had been expecting it to show a drop in confidence.
      …
      https://apnews.com/article/mortgage-rates-interest-rates-housing-home-loan-8ce59f498e70156bcb72ce98b59adb09

    4. WGN-TV
      Possible mortgage crisis looms for millions
      Rich Johnson
      11 hours ago

      (NewsNation) — It’s not expected to be as bad as 2007, but hundreds of thousands of homeowners will soon face significantly higher mortgage payments due to their adjustable-rate mortgages.

      About 1.7 million homes were bought in 2019 using ARMs. Many were “5/1” loans: five years of a lower fixed interest rate, then a conversion to a market-based rate that’s adjusted once or twice a year.

      That means a mortgage based on a 2019 interest rate of 3.5% or even lower may balloon to around 6.5%. And that is a significantly higher monthly payment that many people can’t afford.
      …
      https://wgntv.com/news/national/possible-mortgage-crisis-looms-for-millions/amp/

      1. So millions of rate daters used adjustable rate mortgages to gamble on rates staying low forever and lost, while driving home prices up to levels which millions of non-gamblers who didn’t want to roll the dice on adjustable rate mortgages couldn’t afford.

        Which group are we supposed to pity?

  17. Germany saw another big increase in the number of people gaining citizenship last year as large numbers of people from Syria helped push naturalizations up to their highest level since at least 2000, according to official data released Tuesday.

    About 200,100 people were granted German citizenship in 2023, the Federal Statistical Office said. That was an increase of about 31,000, or 19%, compared with the previous year.

    The increase followed a 28% rise in 2022, which also was fueled by large numbers of Syrians being naturalized as increasing numbers of people who migrated to Germany between 2014 and 2016 fulfilled the requirements for citizenship.

    Last year, 75,500 people from Syria were naturalized — the biggest single group, accounting for 38% of the total — the statistics office said. That number was up 56% compared with 2022. They had spent an average 6.8 years in Germany before becoming citizens.

    About 10,700 citizens each of Turkey and Iraq became German citizens last year, putting those groups in second place.

    The overall number of new citizens was the highest since current records started in 2000 following a change in the law under which people of German ancestry from the former Soviet Union, who arrived in large numbers in the 1990s, were automatically granted citizenship rather than having to apply for it.

    https://www.msn.com/en-gb/news/world/the-number-of-new-german-citizens-hits-another-high-last-year-with-many-syrians-naturalized/ar-BB1nbGuv

      2. Started loosing that ever since they decided that raiding the Roman Empire was a good idea…

  18. At an Alternative for Germany (AfD) European election campaign in Berlin, two of the far-right party’s candidates, Dr Alexander Sell and Mary Khan-Holoch, discussed national pride and how the AfD hopes to make Germans proud of being German again.

    The crowd was largely made up of pensioners. However, there were also quite a few young people in the mix.

    Khan-Holoch herself is 30 years old, and she did not hesitate in her answer to the question of what makes the AfD so attractive to first-time and young voters.

    “Germans feel afraid of becoming strangers in their own country,” Khan-Holoch told Euronews.

    “Especially our young people are confronted with this daily, whether it’s in public swimming pools or big cities. We have many hotspot schools where German is no longer spoken on the playgrounds,” she added.

    In fact, Khan-Holoch believes former Chancellor Angela Merkel’s policy of opening the borders in 2015 to allow refugees from Syria to enter amid a backdrop of war is what entices the young voters. There is also the sense of national pride, something AfD knows how to arouse.

    “I tell young people, be proud to be German,” she said.

    “The concept of a multi-cultural society has failed” is one of the party’s main lines. It’s not just immigration. The party’s insistence on family values often translates to fervent backing of traditional gender roles and opposition to what they call “sexualism”, which their critics say is discriminatory towards the LGBTQ+ community and impedes basic human rights.

    Khan-Holoch disagrees.

    “Don’t let a distorted leftist view take away your gender identity,” she said.

    “No one has a problem if someone says they were born in the wrong body and undergo a sex change, then your name and identity will also be changed in your passport,” Khan-Holoch adds.

    “What I hear from young people repeatedly when I am at schools is this whole LGBTQ+ community, that you are no longer allowed to criticise things without being immediately labelled as a right-wing extremist.”

    “Or if you say a man in women’s clothes is still a man, you immediately have to hear, ‘Oh, you’re just a Nazi,’ which has become so commonplace in our society.”

    Some of these ideas seem to be resonating with a surprising number of people. At the AfD event, we asked 26-year-old Jan Streeck why he finds AfD appealing.

    “We want a liveable future for Europe and Germany. And I believe that this is the main reason why young people are getting involved with the AfD and why we are gaining more and more young voters, as we can see in the polls, Streeck told Euronews.

    “We have 22% in the current polls among first-time voters, and we are clearly the strongest party there, which makes us very proud,” he said.

    Streeck is a deputy state chairman of the Young Alternative (JA) Berlin, AfD’s youth wing.

    “We say that in a democracy, it must be possible to form an opposition, to create a party, and to democratically advocate for change in this country. And that is what we are doing,” he adds.

    https://www.msn.com/en-za/news/other/why-are-german-young-people-so-easily-seduced-by-afds-ideas/ar-BB1ncd0G

    1. “far-right” = anything an inch to the right of Marxism.

      Take your country back. Take all of Europe back.

      Who really “won” World War II ?

      2. The Marxist infiltration of our institutions has been exposed for all the world to see.

          1. I’ve been flower farming and seriously contemplating a flower business. Politics, the economy and our local housing market were getting to be too depressing.

          3. I reluctantly, and perhaps regrettably, joined 3 flower farming Facebook groups. Most of the people are trying to learn to farm and run a business by posting pictures and questions to Facebook. Two recently published books that I have answer the vast majority of their questions. Seasoned flower farmers are selling pricey online courses (often with limited applicability to other growing zones) to diversify their revenue streams while the agricultural industry rakes in the dough selling a dream. It’s comical watching people learn that farming is hard and risky. And, I’m a “mean girl” for pointing that out. A Harvard alum was offended by a tulip a named Asian Beauty. I baited her by pointing out there’s an American Beauty rose, African Beauty orchid, and Thai Beauty caladium. Unsurprisingly, she said it was because of people like me that those names exist (subtext racist). I reported the comment and original post to the admins because it violates the group’s woke rules. 😃 There was another woman saying “I have a baby and cant realistically be out there weeding by hand.” 🤦‍♀️ I missed the intelligence here.

          5. I’ve had grand gardens and grew all kinds of flowers and vegetables, even critters. The benefits are kind of cancelled by engaging strangers in arguments on the internet.

          6. They weren’t arguments. Thin-skinned snowflakes had their feelings hurt by facts and observations. There were a surprising number of people who agreed with me but were afraid to say anything.

          7. @BlueSkye

            One of the flower farmers who I follow on YouTube lives and has a nursery in Boonville.

          8. Boonville

            That’s a couple hours from me, but I have a friend there that raises Highland cattle.

          10. “There were a surprising number of people who agreed with me but were afraid to say anything.”

            Indeed, an epidemic of cowardice!

          11. During my hiatus, I also did a lot research into the LDS Church given the recent criminal cases. Any Mormon tithing 10% to the LDS Church lacks the moral authority to clutch his or her pearls over whatever DJT did with women over the age of 18 given Joseph Smith’s history. Moreover, that Mormon lack the intellectual superiority to call anyone a conspiracy theorist. There’s plenty of evidence, mostly paid for by the LDS Church, showing that Joseph Smith was a conman.

  19. “Long and Day listed the mansion for $21.5 million in December and dropped the price to $20 million in January, Redfin shows. The $16.5 million price marks a nearly $3.3 million loss from their purchase price three years ago.”

    Long day indeed pardon the pun.

  20. A reader sent these in:

    What stage?

    https://x.com/INArteCarloDoss/status/1795924228606222369

    https://x.com/INArteCarloDoss/status/1795884611836260757

    🚨 The German property crash is beginning to crystallise

    German property transaction volumes have been sluggish since interest rates started to inflect higher in late 2021.

    However, whilst overall volumes in April of this year were weak, a significant increase in insolvency-related transactions is noteworthy.
    🧵1/4

    https://x.com/marcopabst/status/1795747498436268453

    Reading today’s Fed Beige Book release and seeing homebuilder mortgage rate buydowns mentioned a few times (namely Dallas Fed).

    In markets like San Antonio, we can clearly see homebuilder rate buydowns in action, with over half of all originations coming in at rates below 6%.

    https://x.com/RickPalaciosJr/status/1795897509300285580

    If your house value doubled in the last 12 years, I don’t care at all if it falls 25%

    If you didn’t capitalize on the equity of your home at its peak value that’s a you problem

    https://x.com/connordpeters/status/1795637958835572914

    Job openings now imploding – just 11% higher than February 2020 – much quicker deterioration than I was expecting this month.

    https://x.com/DonMiami3/status/1795884694916997627

    Siemens will eliminate 4,100 jobs in its renewable wind energy division

    https://x.com/MacroEdgeRes/status/1795898054433710394

    NVDA 2024 = CSCO 2000.

    I mean, it is exactly the same thing.

    https://x.com/dailydirtnap/status/1795881530612449478

    🇨🇦’s young adults should be a lot more worried.

    The oldest Millennials are now in their 40s & most still don’t see what’s happening.

    https://x.com/StephenPunwasi/status/1795843047860977930

    74% of middle class Americans have cut back on non-essential spending due to inflation, according to Primerica.

    https://x.com/unusual_whales/status/1795829197543281139

    Schrodinger’s housing affordability. We need to decide as a society if we want primary residences to be an accessible essential need, or a vehicle to build wealth. It can’t be both.

    https://x.com/Mill_Moron/status/1795804020659146778

    🏠 Home insurance rates have surged nearly 40% since 2019

    https://x.com/dailyjobcuts/status/1795899167807582615

    1. “74% of middle class Americans have cut back on non-essential spending due to inflation”

      Paul Krugman could not be reached for comment.

    2. Home insurance rates have surged nearly 40% since 2019

      Ain’t runaway inflation just great?

  21. ECONOMY
    More people may never own a home — they’re the ‘forever renters’
    Theron Mohamed May 29, 2024, 4:58 AM ET
    An illustration of a man holding up a house that has money falling out of it against an upward arrow.
    Getty Images; Alyssa Powell/BI

    More and more “forever renters” are giving up on buying a home or choosing not to own one.
    Renters have more flexibility and avoid ownership costs but aren’t building home equity.

    We asked four academics why the trend was on the rise — and whether it was a shrewd move.
    …
    https://www.businessinsider.com/renting-housing-market-home-ownership-mortgages-affordability-real-estate-2024-5

    2. “Up in the Air (2009)

      Ryan’s (George Clooney) job is to travel around the country firing off people. When his boss hires Natalie, who proposes firing people via video conference, he tries to convince her that her method is a mistake.” (IMDB)

      That was in 2009. Now, layoffs over the internet are SOP.

      1. Way back when I was a repo man I typically got home around 0500-hrs, which was about an hour before my girlfriend usually left for work, and then I’d get some sleep. One morning I heard her car pull back in the driveway about 0900-hrs, and she came in the bedroom with alligator tears on her face; her entire department was shutdown as the Germans were celebrating the opening of the Brandenburg gates. Her ID card wouldn’t open the door, and two security guards arrived with an empty box, escorted her to her desk and back out the front door. However, she did get an excellent severance package!

  23. Pending home sales plunge to lowest level in four years as buyers steer clear of 7% mortgage rates

    Pending home sales fell 7.7% in April from the previous month, according to the monthly index released Thursday by the National Association of Realtors. Sales activity is at the lowest level since April 2020.

    The sales pace fell short of expectations on Wall Street. Economists were expecting pending home sales to fall 0.4% in April. Transactions were down 7.4% from a year ago.

    https://www.msn.com/en-us/money/realestate/pending-home-sales-plunge-to-lowest-level-in-four-years-as-buyers-steer-clear-of-7-mortgage-rates/ar-BB1nkPLo

    Lowest since April 2020. I wonder what was going on then, nothing bad I hope. Cuz if it was that would be a stark comparison.

  24. ‘Thomas Peterffy, for example, recently sold his 84th floor unit at 432 Park for $13.5 million, some 37% less than the $21.39 million he paid for it in 2016, property records show’

    That’s a mighty a$$ pounding right there Tom, you bought at the peak for NYC safe deposit boxes in the sky.

    1. “That’s a mighty a$$ pounding right there Tom…”

      No kidding; he got kicked with the spurs too!

  25. Since 2020, the research and development district on San Diego’s waterfront backed by Bank OZK has been under developent. ‘We believe 0% of the 1.7 million square feet is leased — indicative of a difficult life sciences construction lending market’

    Waterfront? I hope they didn’t pay too much for the land!

    1. Waterfront?

      I would expect those facilities to be somewhere inland like Rancho Bernardo, if not somewhere even cheaper.

  26. ‘Growing supply is one reason that UK house price growth this year will be limited to low single digits. However, the main obstacle for buyers is stubborn services inflation, which is keeping mortgage rates high. Asking prices therefore need to reflect the fact that buyers have more choice and tighter budgets’

    That’s the spirit Tom! Talk em down out of that tree.

  27. I honestly can not believe what happened in Manhattan this afternoon.

    I guess this is what it felt like in 1934 Germany.

    1. I guess this is what it felt like in 1934 Germany.

      I can’t envision four more years of this insanity. How long until it flat out isn’t safe to fly anymore or a loaf of bread costs $20? Or will the eastern seaboard be vaporized before we get that far?

    3. The 2020 election was stolen.

      Joe Biden is not, and will never be, the legitimately elected president of the United States.

      We are living under an unelected, illegitimate, occupation regime.

      It’s time for a second crusades, not in the Middle East, but of Americans against the vermin in Washington D.C. This isn’t your country, you have no authority to govern, or tax us, and all of you need to die ☠️

    4. I’m in “what’s next” mode. Will T stay on all the ballots? Can he still run? Can he still win? The answer seems to be “yes.”

        1. That too, but if the windage is wrong and the ballot box stuffing fails then the final hand-off will be amicable.

          1. Vehemently disagree. He’s a formidable foe. They need him dead. DJT knows that. Katy bar the door!

          3. The jooz are tired of the purple haired anti-Israel reddit snowflakes, and heavy changes need to happen in the Gaza strip and the West Bank. The title vii and title ix modifications need a thorough review. The Gaza strip, roughly 25-mi long x 5-mi wide needs to be annexed or reduced to the Gaza Square, 5-mi x 5-mi. The West Bank needs some precision ordinance strikes too. These changes are needed to reduce the annual military expense. Biden isn’t going to give the nod on what needs to be done. DJT could make it happen, so he will get the pardon, IMHO.

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