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A Reversal Of The Unsustainable Spike Is Unfolding

It’s Friday desk clearing time for this blogger. “Contrasted with the relatively healthy real estate market of May 2019, single-family sales were down 9.7 percent in Massachusetts last month. ‘You have to go all the way back to 2015 to find May sales that low — that really stood out to me,’ said Warren Group chief executive Tim Warren. Buyers may have finally been pushed past their breaking point, Warren said. ‘You have to wonder, with prices rising so rapidly, whether there are enough people with enough income to keep paying these prices,’ he said. ‘People aren’t getting those kinds of raises. The two big crashes we’ve had, in both cases, the number of sales had fallen and then prices started to fall the following year.'”

“Real estate investors in the first quarter of 2021 have purchased and flipped 57,155 single-family homes and condominiums nationwide, according to ATTOM Data Solutions. It the lowest home-flipping activity seen since 2000. ‘The first quarter of 2021 certainly marked a notable downturn for the flipping industry, with the big drop in activity suggesting that investors may be worried that prices have simply gone up too high,’ said Todd Teta, Chief Product Officer at ATTOM. ‘After riding the housing boom along with others for years, they now might be having second thoughts.'”

“After five years and several price chops, the domed penthouse atop the historic former NYPD headquarters at 240 Centre Street finally found a buyer — for about a quarter of what the seller first expected. Ahmass Fakahany and his wife sold the 5,500-square-foot co-op at last for $10 million, property records show. When the unit first hit the market in 2015, Fakahany set the asking price at $40 million. When no buyers came forward, the price was slashed repeatedly: First to $35 million in 2016, and again to less than $28 million in 2017. In 2019, it tumbled to under $20 million.”

“Joe Montana has tossed his Napa Valley estate onto the market again. Now, the price has been sliced to $24.5 million. Montana and his wife initially listed the villa for $49 million in 2009. Two years later, the price was lowered to $35 million. In 2019, it was relisted for $28.9 million. Now that it’s being offered at half its 2009 price, perhaps a buyer will finally step off the sidelines.”

“More than 2 million homeowners are behind on their mortgages and risk being forced out of their homes in a matter of weeks, a new Harvard University housing report warns. Karen King, who is five months behind on her mortgage in Birmingham, Alabama, told CBS MoneyWatch she is ‘terrified’ that her home could be taken away. King, 51, a staff member at the Tuscaloosa Housing Authority, fell behind on payments last year after her job switched her to part-time hours during the pandemic. She now owes $4,200. King returned to full-time hours in January, but has only been able to pay her normal monthly mortgage amount—no more.”

“‘King said she will have to try to strike a special payment arrangement with her mortgage provider, but she’s nervous about having that conversation because she’s unsure if the lender will accept an unusual payment plan. ‘I can’t necessarily pay extra on the mortgage, so I’m hoping I could work out something with them,’ King said, adding that she’s willing to tack on five payments at the end of her home loan. ‘I actually would prefer a deferment.'”

“Legal Aid of Nebraska said 27 eviction hearings were scheduled this week in Douglas County. Rick McDonald said he owns 23 rental properties, and the majority are single-family homes. He said he’s struggling to cover his own costs with the slowdown in income. ‘I probably have 20% of all my properties where the tenants are behind in their rent or haven’t paid anything,’ he said. His bank has been flexible, but it’s not an indefinite agreement. McDonald said the frustration may lead some landlords to leave the business. ‘Wanting the name of a realtor, what do I do? How do we get out of this? I’m done. I’m finished,’ he said of phone calls he gets from other owners.”

“‘I’m between a rock and a hard place. So, I supply them with names and numbers I have, to call these people, see if you can get help, and I’m willing to work with them and stuff, but at some point, the bank’s gonna be knocking on my door,’ McDonald said.”

“Has the Canadian housing market reached its zenith? Will the red-hot housing market begin to cool down? The Royal Bank of Canada’s senior economist Robert Hogue did an excellent job of succinctly summarizing the state of the Canadian real estate market recently: the mania has toned down, fewer homeowners are listing homes for sales, homebuyers are declining faster than sellers, and a reversal of the ‘unsustainable spike’ is unfolding. Real estate agents and market analysts alike will undoubtedly hone in on the summer months like a guided missile!”

“The London property market suffered its biggest monthly fall in a decade in April. One agency chief described the market shift as buyers becoming more ‘realistic rather than romantic’ in what they’re willing to pay. And the supply of properties on the market is also increasing, as more people are putting their homes up for sale. ‘This reality check has blown some of the froth off the market,’ Jonathan Hopper, chief executive of buying agency of Garrington Property Finders, told the Standard. ‘The gravity-defying price rises are starting to ease.'”

“Housing rents have fallen by 10 to 15 per cent in parts of Bengaluru and other cities. A number of properties, especially flats, are vacant as tenants who left for their hometowns to be safe from the Covid-19 surge, cope with financial instability or avoid getting stuck in lockdown are yet to travel back. Farook Mahmood, the chairman of Silverline Realty, said that Bengaluru had seen a dip in the range of 10 to 15 per since March last year, linking the trend to job losses, salary cuts, falling business and oversupply of rental apartments. ‘Landlords were not ready to reduce rents during the first wave. They have realised now that there is no point in waiting for higher rents as senior professionals and company executives are facing salary cuts,’ said GN Rishikesh, a property owner and consultant in east Bengaluru.”

“Landlords in Sydney and Melbourne who rely heavily on international students are asking up to 10 per cent less for rent than they were a year ago just to keep their properties occupied. Chinese international real estate website Juwai.com says the average asking price for units in the city’s inner west, which is popular with international students, has fallen by 9.8 per cent over the past 12 months. Meanwhile, rents in the area are down 8.8 per cent compared to a year ago.”

“Christine Cheung from Loyalventure Property in the Docklands estimates ‘around 20 per cent’ of the rental properties she has on her books, mostly in the CBD, are sitting empty. She says many landlords have had to slash their rents just to attract tenants, and even then, they don’t always find anyone. Ms Cheung says most landlords have opted to sit tight and wait for international borders to reopen rather than sell at a loss. ‘The price is too low to sell, and even if they wanted to sell, no one wants to buy a CBD apartment at the moment. There are too many negative comments, and vacancies are too high,’ she says.”

“The spectre of ghost houses has haunted New Zealand for years, but it’s actually a bit of a bogeyman, says property commentator Ashley Church​. With a lack of supply blamed for the country’s housing crisis, the nearly 200,000 unoccupied dwellings identified in the 2018 Census would surely be a handy addition to Aotearoa’s housing stock. These empty houses range from modest suburban properties to million-dollar dumps, with even Sir John Key’s palatial former residence in Auckland, which sold for over $20 million in 2017, reportedly sitting empty.”

“The average number of people per household has been 2.7 since 2006, while the population grew significantly. ‘If we’d had a shortage of housing, that average household occupancy figure should have got higher since 1987, it should have gone up – it’s gone down. It’s gone from 3.29 in 1986 to 2.87 in 2013, it’s actually dropped,’ he said. ‘There’s only two ways that could happen – the population’s dropped, which it didn’t, or we built more houses than we needed.'”

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This Post Has 124 Comments

  1. ‘How do we get out of this? I’m done. I’m finished,’ he said of phone calls he gets from other owners…‘I’m between a rock and a hard place’

    That’s some red hotcakes right there!

    1. That first paragraph on this thread is a very RARE example of the media actually reporting that median household incomes do not support current shack prices.

  2. ‘There’s only two ways that could happen – the population’s dropped, which it didn’t, or we built more houses than we needed’

    Recently I posted some number showing the exact same thing in Vancouver. Yet these cities have ridiculous shack prices. Why? The loan to income cap in NZ is around 10.

    1. “Recently I posted some number showing the exact same thing in Vancouver. Yet these cities have ridiculous shack prices. Why? The loan to income cap in NZ is around 10.“

      – So, just like for the ongoing U.S. student loan slow-motion train wreck, gubmit student loan limit guarantees, set the tuition limits, since lenders will do the loan at any amount that the gubmit will guarantee to. It’s taxpayer-backed. It’s not their money. It’s the same for the housing “market” too via gubmint-backed GSE mortgate loan limits.

      – This is classic moral hazard and should never be encouraged in the financial markets. However, this is business as usual now in our Keynesian utopia called the global economy.

      – It’s OK to risk other people’s money, but not your own. This is the golden calf god of 21st century economics. No one builds wealth by industry and hard work, just borrow the money risk-free. If you need moar, we’ll just conjure it up out of thin air, ex nihilo.

      – Example: The real yield on “high-yield” (aka “junk”) bonds is now negative. There’s no risk premium; no interest rate penalty for higher risk.

      – Centrally planned, command-and-control economies are the envy of the world. Many people plan their vacations now to visit these bastions of free markets and prosperity. Countries such as North Korea, Venezuela, and Cuba. People go there so that they can marvel at their highly successful economic systems and even try to emulate them through Democratic Socialism here in the U.S. now. I’m sure this will end well this time too. 🙂

      “Government does not solve problems; it subsidizes them.” – Ronald Reagan

      “If you want more of something, subsidize it; if you want less of something, tax it.” – Ronald Reagan

      Subsidies are a shell game, not a net addition to national wealth. – Thomas Sowell

      Government does the least good and the most harm through subsidies. – James Cook

      “The nine most terrifying words in the English language are, ‘I’m from the government and I’m here to help.’ ”- Ronald Reagan – 40th president of US (1911 – 2004)  

  3. ‘most landlords have opted to sit tight and wait for international borders to reopen rather than sell at a loss. ‘The price is too low to sell, and even if they wanted to sell, no one wants to buy a CBD apartment at the moment’

    Don’t give it away! Couldn’t if you wanted, but still.

    ‘Christine Cheung from Loyalventure Property in the Docklands estimates ‘around 20 per cent’ of the rental properties she has on her books, mostly in the CBD, are sitting empty’

    Any one have a calculator? What’s the NOI on these thousands of empty airboxes?

  4. ‘Has the Canadian housing market reached its zenith? Will the red-hot housing market begin to cool down?’

    Over and again. Shock – gosh, it can’t be ending – can it? What did you think was going to happen? I read way too much 40-50% increase in a year! that the writers don’t mention it’s bat sh$t crazy for increases like that. Some of it is statistics, some of it REIC lies. But if remotely true, there has to be rampant appraisal fraud going on.

    ‘Real estate agents and market analysts alike will undoubtedly hone in on the summer months like a guided missile!’

    Watch out for that tree, George.

  5. ‘Canada was excoriated as a racist, hypocritical failure Tuesday as MPs who don’t intend to seek re-election said their official farewells to Parliament. Mumilaaq Qaqqaq, the New Democrat MP for Nunavut, used the opportunity to blast Canada as a country built on the oppression of Indigenous People and whose history is “stained with blood.”

    ‘Bloc Quebecois MP Simon Marcil also blasted Canada’s treatment of Indigenous People, calling Sir. John A. Macdonald, Canada’s first prime minister, a “racist.”

    ‘But he spread his condemnation more broadly. He argued that the notion of Canada as a progressive, environmentally friendly, egalitarian and democratic country is false on all fronts, citing examples aimed at proving the country’s essential hypocrisy.’

    ‘He maintained Canada has only a “fragile” national identity, in which Albertans are more proud to be Albertans and Quebeckers more proud to be Quebeckers than they are to be Canadians. The only distinguishing cultural feature, he added, is hockey – and even then, he noted, the Toronto Maple Leafs can’t win.’

    https://www.theglobeandmail.com/politics/article-canada-excoriated-as-racist-failure-during-farewell-speeches-by/

  6. OMG! I just did a Zillow and learned that, according to them, the value of my house over the past thirty days had DECREASED by $18,262!

    Reality just might be raising its ugly head.

    1. A related article from about a month ago …

      Housing price gains hit 7 week low, meaning the real estate boom may be at its peak | Fortune
      https://fortune.com/2021/05/13/covid-housing-boom-peak-real-estate-realtor-price/

      (snip snip snip)

      New data from Realtor.com shows that price growth in the housing market, which has been soaring for almost 10 months, is starting to slow, hitting its lowest level in seven weeks. Year-over-year increases in home prices were actually down last week, marking a slowdown in a 39-week–long trend.

      It’s hardly the “bursting bubble” that some bears fear. The housing market is still incredibly strong, but this could be a sign that the days of basically setting your price when selling a home could be about to end.

      “This week the housing market took a very tiny step in a buyer-friendly direction,” said Danielle Hale, chief economist at Realtor.com. “It is still solidly a seller’s market, with homes selling 28 days faster year over year for the week ending May 8. However, homebuying opportunities could be on the horizon.”

        1. 1. Even accounting for 0% down, low interest rates, and Bank o’ Boomer, Millenials still don’t have the income to make the PITI for half-million dollar houses.

          2. Even with “free” money from the Fed, Blackrock & Co. won’t be able to collect rent high enough to make the PITI on those same half-million dollar houses.

          3. Both Millenials and Blackrock remember 2008, and both are independently making the wise decision to bail.

      2. So if solidly a sellers market, why was it a good time to buy? Does that mean if it’s a weak sellers market, it’s a weak buyers market too?

    2. That’s interesting. I just set up a search in my neighborhood on redfin when learned I could filter the results by only price reductions. So this will be coming to my inbox each day to get a pulse. I also have one for foreclosures only set up in zillow. Foreclosure.com looks decent too, but have not signed up yet. Definitely will be ready this time. I hope I can be patient enough over the next couple years and don’t jump in until it hits pretty darn close to the bottom.

    3. That can’t be right. The negative sign must have been a typo.

      California real estate always goes up.

  7. Joe Biden Asks Americans to Report ‘Radicalized’ Friends and Family to the Government

    June 17, 2021

    by Eric Lendrum

    In an unsettling development, the administration of Joe Biden is asking American citizens to betray friends and family who have different political views, and report them to the government for allegedly being “radicalized,” as reported by Breitbart.

    In addition to seeking tips from American citizens to turn in their friends and loved ones, the official also said that the government would be working with tech companies to increase surveillance on alleged “radicals.”

    https://tennesseestar.com/2021/06/17/joe-biden-asks-americans-to-report-radicalized-friends-and-family-to-the-government/

    Control and opposition in Nazi Germany

    In order to maintain his absolute power, Hitler needed to ensure the total loyalty of the people to him.

    Part of History Life in Nazi Germany, 1933-45

    By August 1934, Hitler was a dictator in Germany.

    In order to maintain his absolute power he needed to ensure the total loyalty of the people to him. He used a wide variety of methods to achieve this.

    The Police State

    Hitler and the Nazis created a Police State to exercise control over the population. There were three main parts to it:

    The Sicherheitsdienst (SD) was the intelligence-gathering agency of the SS. It was responsible for the security of Hitler and other top Nazis and was led by Himmler’s right-hand man, Reinhard Heydrich.

    To help these organisations a spy network made up of ordinary people was established across the Germany.

    At a local level, Blockleiters were in charge of listening to gossip, keeping an eye on neighbours and informing on anything suspicious in a block of flats or a group of houses.

    https://www.bbc.co.uk/bitesize/guides/z2p3k2p/revision/1

    1. The definition of “radicalized” is going to be expanded to include anyone opposed to the globalist agenda.

      1. “… anyone opposed to the globalist agenda.”

        That behavior would be considered “mentally disturbed” and would require treatment at a re-education facility.

    2. At a local level, Blockleiters were in charge of listening to gossip, keeping an eye on neighbours and informing on anything suspicious in a block of flats or a group of houses.

      History records that Blockleiter technical eavesdropping crews were flummoxed after recording millions of German surveillance targets reminding each other that realtors are liars.

    3. People on my current jobsite openly talk about killing the president every day, and we all just have a big laugh.

      Traitors will hang. This means you, globalist sh*tbags.

  8. Portland’s commie “leadership” are going to have to appeal to the Soros scum to be on their best behavior, now that Portland’s riot squad has resigned en masse.

    Portland Police’s entire riot squad of 50 RESIGNS in protest after cop was charged with assault for striking ‘activist photographer’ during BLM protest that saw federal building set alight

    https://www.dailymail.co.uk/news/article-9698507/Portland-Polices-riot-squad-RESIGNS-cop-indicted-striking-activist-photographer.html

    Portland’s 50-person riot squad resigned in protest Wednesday in solidarity with one of their colleagues indicted for striking a photographer they claim was a rioter.

    The resignations were effective immediately, according to the Portland Police Bureau, and come after the indictment on Tuesday of Officer Corey Budworth, for assault during an incident in which he allegedly struck photographer Teri Jacobs in the head during a riot last August.

    1. Lets see businesses and homeowners in Portland will basically lose everything eventually because they allowed this. Serves them right.

      1. because they allowed this

        Please stop blaming residents for all the ill that befalls some of these cities and states. What do people not understand about Soros-funded and rigged elections?! It doesn’t matter who residents vote for if Soros and his ilk, like Zuckerberg, are throwing so much money at elections at every level coupled with control of the voting machines.

          1. RR
            ☹️👍🏻
            That’s a common theme now – it’s our fault, like we have any significant control.

  9. “After five years and several price chops, the domed penthouse atop the historic former NYPD headquarters at 240 Centre Street finally found a buyer — for about a quarter of what the seller first expected.

    Weren’t gonna give it away, huh, greedheads? How’d that “sticking to yer guns” work out for ya?

  10. Now that it’s being offered at half its 2009 price, perhaps a buyer will finally step off the sidelines.”

    Or perhaps a buyer will hold out for oh, say, half its 1999 price. Although any high-net-worth buyer in that segment of the market is going to price in California’s descent into a radical-left Venezuela-like banana republic where “tax the rich!” is already the battle cry.

  11. “More than 2 million homeowners are behind on their mortgages and risk being forced out of their homes in a matter of weeks, a new Harvard University housing report warns.

    Is that a lot?

    1. 777 scam digital coins, dropping in lockstep like a rock, except for the ones that are tethered to actual assets…

      Do the HODLers begin to suspect they may have been snookered at such moments in time?

  13. Equality = equal oppurtunity

    Equity = enforced outcome

    Matthew Lohmeier: Equity policy could potentially be illegal discrimination

    Jun. 18, 2021 – 4:20 – Lt. Col. Matthew Lohmeier joins ‘Tucker Carlson Tonight’ to discuss how ‘tribalism’ is creeping into US military

    https://video.foxnews.com/v/6259375622001/

  14. Karen King, who is five months behind on her mortgage in Birmingham, Alabama, told CBS MoneyWatch she is ‘terrified’ that her home could be taken away.

    Not your house, Karen. Never was. Anyway, shouldn’t you be out haranguing the non-mask fetishists?

  15. ‘I can’t necessarily pay extra on the mortgage, so I’m hoping I could work out something with them,’ King said, adding that she’s willing to tack on five payments at the end of her home loan. ‘I actually would prefer a deferment.’”

    Mr. Banker is not a philanthropist, Karen. Better start packing boxes.

    1. I’m liking the idea of her tacking on five payments (with accrued interest of course) to her mortgage. More than five, even. My hopes are she would NEVER stop sending me monthly payments.

      Think of it: She works her butt off at a job she probably hates then willingly sends me huge chunks of her hard-earned paychecks each and every month so as I can loaf around at the beach, or wherever.

      Debt slavery at its finest; No way I would want this to end.

      1. I would think the way to go for Mr Banker would be to occasionally work out a refinance arrangement for debtbeats that just tacks on any missed payments and additional accrued interest to the end of loan, rather than deal with the bad optics and hassle of a foreclosure.

        At the end of the loanowner’s life, they will have rented from the bank forever at above market rates, and the bank will be able to cash in on the deceased owner’s home equity wealth gains when they take possession. It’s win-lose relationship for Mr Banker.

        1. I very much like the refinance idea in that they always generate hefty fees. Ideally these pukes would endeavour to refinance their mortgages every other week but as of yet they are not quite that stupid – close, but they are not quite there.

    2. Mr. Banker is not a philanthropist

      He very well may be for social image and business purposes.

  16. So, I supply them with names and numbers I have, to call these people, see if you can get help, and I’m willing to work with them and stuff, but at some point, the bank’s gonna be knocking on my door,’ McDonald said.”

    Someone’s knocking at the door
    Somebody’s ringing the bell
    Do me a favor
    Open the door
    And let ’em in

    https://www.youtube.com/watch?v=5EBhsSReJqU

  17. “Now that it’s being offered at half its 2009 price, perhaps a buyer will finally step off the sidelines.”

    Remember…. 2009 prices were still 250% higher than long term trend and double construction cost. It was a mere step down a long painful flight of stairs everyone is currently looking down.

    Dallas, TX Housing Prices Crater 12% YOY As Builders Slash Prices Double Digits

    https://www.movoto.com/tx/75209/market-trends/

        1. Dr Copper was clinging to the cliff by his fingernails up until a couple of days ago, when the meanies at the Fed stepped on his fingers.

        1. I’m on the edge of my chair to see how today’s cratering commodities prices spill over into housing. People grabbed housing for the same reason they snapped up commodities: to hedge against anticipated runaway inflation. The slightest hint from the Fed that they might some day raise rates off the floor was all it took to send commodities and cryptocurrencies into a tailspin.

          Won’t show up in housing prices for a while, though, as housing price statistics always lag present market conditions by a few months. Following housing price indexes is akin to driving while looking out the rear view mirror. They are perpetually out of date.

          1. The Financial Times
            Capital markets
            Reflation trades pummelled as Fed shift resets markets
            Commodities and value stocks hit while dollar surges after US central bank signals earlier rate rise
            The US Federal Reserve
            Investors might be starting to question the US Federal Reserve’s commitment to its new more flexible inflation targeting regime
            Robin Wigglesworth, Tommy Stubbington, Colby Smith and Neil Hume 15 minutes ago

            The “reflation trade” that has dominated financial markets since the emergence of coronavirus vaccines last year has been pummelled after the Federal Reserve unexpectedly signalled a shift in its stance on inflation.

            Commodity prices have tumbled while long-dated US government bond prices raced higher after Fed officials this week reacted to unexpectedly strong inflation data by moving forward their forecasts for when it might start raising interest rates. The dollar was headed for its best week since last September on Friday.

            The Fed’s shift marks a major setback for investors who this year have rushed to buy securities that might benefit from faster inflation, betting that the combination of exceptionally easy monetary and fiscal policy and a global economy emerging from its Covid-19 lockdown would cause prices to spike.
            …

        2. Stick around. When the Fed’s Everything Bubble bursts for real, “spectacular” won’t even begin to describe the carnage as trillions in Yellen Bux valuations get vaporized.

        1. $600? It was $260 a little over a year ago. The answer is “nothing happens.” It is back to normal pricing.

  18. Another family we have known for well over a decade just let it slip that they are leaving California permanently. I can’t remember another period since we moved here when so many people we know personally suddenly decided it was time to pull the plug on California living.

      1. That’s pretty much the US writ large. Since Nixon took us off the gold standard and the globalists completed their capture of the Republicrat duopoly, it’s been all downhill.

    2. My two best friends in CA just bought second homes in other states as a plan B in case conditions erode further in CA. Another close friend I mentioned before is leaving for TX next month. My cousin and her husband are now discussing leaving CA for TX. Another relative in LA sold the home and will be moving out of CA in the near future. Guy across the street moved to Kansas last month. I thought I had resolved to stay here for the long run despite being resolved to watching CA disintegrating around me. But with COVID passports being rolled out in CA and the prospect of not being able to shop for groceries without being hassled by a masked brain damaged GED level pothead asking for a QR code on a digital device I’m just waiting to see which states preserve a reasonable semblance of freedom so I can decide where to move. I can’t stay here to be herded, tracked, digitally tattooed like a farm animal.

      1. My two best friends in CA just bought second homes in other states as a plan B in case conditions erode further in CA.

        Bahahahahahaha. What a joke.

  19. To Manhattan libtards reaping what you voted: stamp your little feet! Stamp ’em, stamp ’em!

    New Yorkers demand action as 8,000 homeless remain in hotels in Midtown where crime has spiked 170%: Mayoral hopeful Andrew Yang says ‘families have a right to walk the streets and not fear for our safety’

    https://www.dailymail.co.uk/news/article-9700071/New-Yorkers-demand-action-political-stand-NYCs-homelessness-crisis.html

    Residents of Midtown Manhattan have demanded action over New York City’s continuing homelessness crisis that appeared at a political standstill on Thursday night.

    Their demands came as pictures taken by DailyMail.com on Thursday showed homeless people sleeping on sidewalks without shoes, using drugs and drinking alcohol, or passed out next to empty or smashed bottles.

  20. Not one of these worthless GOPe corporate stooges will even mention the #1 cause of soaring inflation: the Fed’s deranged money printing.

    Republicans point to inflation in bid to retake Congress

    https://apnews.com/article/joe-biden-health-coronavirus-pandemic-inflation-business-8d4f2830ec505756f4dae7ce4435c709

    WASHINGTON (AP) — Gas prices have whizzed past $3 per gallon in much of the nation. The cost of used cars and new furniture, airline tickets, department store blouses, ground beef and a Chipotle burrito are on the rise, too.

    Many economists say the price increases are fueled by the aftereffects of a global pandemic and probably won’t last. But Republicans are hoping to storm into next year’s midterm elections arguing that steep government spending under President Joe Biden and a Democratic-controlled Congress has triggered inflation that will ultimately hurt everyday Americans.

      1. Tweetcoins are still outrageously overpriced. A lot of the world’s billionaires will be the bagholders. They jumped in at the peak. Musk, Dalio, Cuban – fawk ’em all.

      2. The blood in the crypto water is such a bright shade of red today that it hurts my eyez.

        Watch out for those circling sharks, HODlerz!

        1. I don’t pay much attention to the space, but today’s price drops don’t seem to be anything remarkable. Weren’t they falling 25% in a day’s time a few weeks back? Extreme volatility seems to be the norm. I expect a billionaire tweet to juice them forthcoming.

        1. Can’t find the metadata for the chart, but my impression is that it is an index to the price of a two-year Treasury note. The Fed’s announcement of earlier rate hikes has the effect of driving up yields, which explains the sharp drop in price, as bond prices and yields move in opposite directions.

          The small magnitude decline in percentage terms reflects the short-term duration.

  23. Remind me again why anyone would buy an insanely overpriced shack in a commie-run, gang-infested, drought-stricken state that’s circling the drain.

    Hydropower plant at California’s drought-stricken Lake Oroville could shut down for first time since 1967 as heat wave torches the Southwest and Gov Gavin Newsom declares state of emergency

    https://www.dailymail.co.uk/news/article-9699617/California-Gov-Newsom-declares-state-emergency-temperatures-soaring-118F.html

    1. Ca passed prop1 a billion dollar bond issue to store water and nothing was built nothing . Expect CA to try and pass another billion dollar bond issue to ” store water”

      Store water code for boosting pensions ?

  24. Wait until the under-capitalized, poorly maintained energy grids in the Peoples Republic of California start breaking down under load. How much for your shack now, denizens of this sweltering furnace-land?

    Death Valley, Las Vegas smash records as heat wave in West persists

    https://www.foxnews.com/us/death-valley-las-vegas-smash-records-as-heat-wave-in-west-persists

    A blistering heat wave lingering over the western U.S. has smashed record temperatures in multiple states, increasing wildfire danger and worsening historic and life-threatening drought.

    Triple-digit highs were felt in Arizona, Utah, Colorado, Nevada as well as in California, where Gov. Gavin Newsom signed an emergency proclamation on Thursday over concerns regarding energy grid capacity.

    1. Gov. Gavin Newsom signed an emergency proclamation on Thursday over concerns regarding energy grid capacity.

      Hey, I’ve got a great idea – let’s put everybody in electric cars to tax the grid!

      1. Hybrids are the best of both worlds. My husband’s Toyota RAV4 Hybrid is working out really well for us.

        1. Hybrids are the best of both worlds. My husband’s Toyota RAV4 Hybrid is working out really well for us.”

          I’ve been driving my wife’s Kia Niro around 👍 don’t see too many of them outside of CA.

  25. One agency chief described the market shift as buyers becoming more ‘realistic rather than romantic’ in what they’re willing to pay.

    There’s nothing romantic about getting schlonged.

    1. Based on what we are seeing in prices of commodities and cryptocurrencies, I would describe the market shift as tectonic.

      Won’t show up for a while in the housing data, though…

  26. Sale by Dutch auction simply doesn’t work unless the seller keeps reducing the price until market value is discovered. Otherwise the listing will just twist in the wind indefinitely.

    “Joe Montana has tossed his Napa Valley estate onto the market again. Now, the price has been sliced to $24.5 million. Montana and his wife initially listed the villa for $49 million in 2009. Two years later, the price was lowered to $35 million. In 2019, it was relisted for $28.9 million. Now that it’s being offered at half its 2009 price, perhaps a buyer will finally step off the sidelines.”

    1. This is the right way to conduct a Dutch auction: Keep slashing the asking price until a buyer makes an offer.

      Although Fookahany could have cut his losses much sooner and avoided further losses to inflation by starting out with a price near market value ($10 million in 2021 dollars).

      “Ahmass Fakahany and his wife sold the 5,500-square-foot co-op at last for $10 million, property records show. When the unit first hit the market in 2015, Fakahany set the asking price at $40 million. When no buyers came forward, the price was slashed repeatedly: First to $35 million in 2016, and again to less than $28 million in 2017. In 2019, it tumbled to under $20 million.”

  28. “half its 2009 price”

    That’s pretty misleading, given how much inflation the Fed has generated in the past twelve years. I guess real journalists aren’t too keen on how to adjust for inflation. But I can do the math.

    CPI-U in
    June 2009 = 213.022
    June 2021 = 268.551

    Inflation adjustment from 2021 to 2009 dollars:

    213.022 / 268.551 = 79.32%

    Current list price in 2009 dollars:
    $28.9 million × 79.32% =
    $22.9 million

    Real dollar % reduction off original list price =
    100% – $22.9m / $49m = 53.2%.

    That’s a lotsa crater…and the market value is even lower, or else it would have sold by now in a bid war with multiple offers.

  29. U.S.
    West Risks Blackouts as Drought Reduces Hydroelectric Power
    Heat waves across the West are already straining electricity supplies, as severe drought crimps hydroelectric power generation

    Who needs water or electricity. Let’s all live in Vegas

    1. California libtards are a selfless, resilient, altruistic bunch. They’ll all pull together to dramatically reduce their energy and water consumption for the common good.

      I slay me….

    1. Good grief!

      “According to Oxford Economics, house prices are growing at over 10% year-over-year in many major economies.”

    2. (snip)

      “Stories of madness abound. Real estate agents have told CNN Business about increasingly rabid methods clients have deployed to secure properties — from bidding $1 million over the asking price to paying a competing bidder hundreds of thousands of dollars just to walk away.”

      This is what a market top looks like.

      1. Another feature of a market top:

        Shriveling sales volume in response to a parabolic price spike.

        Lots of signs are certainly presenting themselves…

      2. The question is: Who do I believe… A realtor or a Urinalist from CommunistNotNews network

        1. The NAR is an industry of dissemblers. So is the globalist media. So don’t believe realtors OR Real Journalists.

  31. Wannabe moguls like this guy, who leveraged up to buy twenty single-family rental homes, go a long way towards explaining why there aren’t enough single-family homes to go around for American families who just want a place to live in.

    One house per customer, pleaze…or if laissez faire is the rule, then let these guys enjoy their losses when their high-risk gambling empires collapse.

    “Rick McDonald said he owns 23 rental properties, and the majority are single-family homes. He said he’s struggling to cover his own costs with the slowdown in income. ‘I probably have 20% of all my properties where the tenants are behind in their rent or haven’t paid anything,’ he said.”

    1. “One house per customer, pleaze…or if laissez faire is the rule, then let these guys enjoy their losses when their high-risk gambling empires collapse.”

      What, you don’t want to help ameliorate his losses? Remember, we’re all in this together! 🙂

    1. Like all globalist Quislings, they turn the truth on its head. “Voter suppression” led to an Orwellian dictatorship? No, unchallenged electoral fraud on a vast scale, enabled by the willful complicity of all those who were supposed to ensure the integrity of the system, has paved the way for a quasi-dictatorship where truth-tellers are censored, silenced, and banished and the majority has no say at all in the “democratic” process.

    2. I would like to nominate Katy Perry and Orlando Bloom to be the first recipients of the My @ss award.

      They will be called the “assies” and be awarded annually to the Woke Better from the entertainment world who performs the most full of sh#t Woke propaganda piece.

      PS

      Crisis actors will not be eligible to receive the My @ss award due to the fact that they are trained exclusively in the art of False Flag acting in made for prime time evening news propaganda.

  34. Here is a story that will warm Mr. Bankers heart:

    The housing market is so crazy, this $600,000 ‘horror’ is drawing multiple cash offers

    Available homes are so scarce that this ‘nightmare’ listing seems like a steal — even though it’s covered in graffiti and smells awful

    It’s covered in obscenity-laced graffiti, and smells like “there’s a dead body in there,” Mimi Foster, a real-estate agent with Falcon Property Company in Colorado

    Yet her frank listing that describes the damage done to this home in gruesome detail has gone viral since she posted it three days ago. What’s more, Foster has also received multiple offers — many in cash, and above the $592,500 asking price — for the home she describes as a “little slice of hell.”

    https://www.marketwatch.com/story/the-housing-market-is-so-crazy-this-600-000-horror-is-drawing-multiple-cash-offers-11624037045

  35. There is something exhilirating about watching a herd of stampeding bulls race over the edge of the nearest cliff.

    1. Not to worry, HODLers. The dips buyers will come in early next week to buoy the market, and the Fed seems likely to backpedal somewhat on its recent hawkish statements that generated so much consternation.

    2. Yahoo Finance
      Why the stock market is diving
      Brian Sozzi
      Fri, June 18, 2021, 9:05 AM·2 min read

      For the second time this week, the Federal Reserve has rattled the inherent bullish psyche of investors.

      St. Louis Federal Reserve President James Bullard — who very often is seen as a dove on policy by Fed watchers — surprised markets on Friday with language on interest rates that some on Wall Street deemed aggressive.

      “I think it’s natural that we’ve tilted a little bit more hawkish here to contain inflationary pressures,” Bullard said in a CNBC interview, citing recent improvement in the economy. Bullard said he sees the potential for an interest rate increase as soon as 2022, ahead of the timeline of most Wall Street forecasts (and his colleagues inside the Fed).

      The Dow Jones Industrial Average tanked more than 500 points by early afternoon trading as investors digested Bullard’s more hawkish tone on the path of Fed policy. All of the Dow’s components were in the red, except for dirt-moving equipment maker Caterpillar (CAT). Loss leaders for the index included Intel (INTC), Walgreen’s Boots Alliance (WBA) and American Express (AXP).

      The Nasdaq Composite, Russell 2000 and S&P 500 were also solidly in the red.

      “These comments are pretty aggressive,” EvercoreISI strategist Dennis DeBusschere said in a note. “Notice what he didn’t say. Transitory [inflation]. Never even comes up.”

      Bullard’s comments arrive two days after the Fed caught the attention of investors with a more hawkish dot plot stemming from their latest policy meeting. Fed officials penciled in two rate hikes by the end of 2023.
      …
      Given the increased hawkishness by the Fed this week, traders on the Street are starting to brace for a pickup in volatility.

      “The market has held up pretty well, but the more comments we get like this, the worse it could get over the coming days. FYI. He [Bullard] seems pretty clear that tighter financial conditions are coming. Stocks have downside risk if this is the last thing we will hear from the Fed into the weekend,” DeBusschere added.
      …

      1. Fed’s Bullard says he expects first rate hike late next year

        St. Louis Fed President cites potential housing bubble as reason he’s leaning toward ending Fed purchases of mortgage-backed securities

        The Fed is buying $80 billion of Treasurys and $40 billion of mortgage-backed securities, along with keeping interest rates close to zero, to support the economy.

        Bullard said he expected “in-depth discussions” of slowing the asset purchases would start now that Fed Chairman Jerome Powell had opened the door for the debate. It may take “several meetings” for the Fed to “get organized,” he added. The Fed meets every six weeks. The next meeting is in late July.

        Bullard said he was “leaning” toward supporting an end to the purchases of mortgage backed securities given the “booming housing market” and talk about a bubble in the sector.

        “I would be a little concerned about feeding into the housing froth that seems to be developing,” Bullard said.

        “I’m leaning a little bit toward the idea that maybe we don’t need to be in mortgage-backed securities,” he said.

  36. I’m gonna miss TABOR the day it gets repealed:

    Colorado’s economy has recovered so quickly that the legislature will have to refund taxpayers under TABOR.

    Colorado taxpayers will be refunded as much as $2.8 billion in tax revenue collected over the three fiscal years because the state’s economic recovery from the coronavirus crisis has been so swift and strong and because of growth limits under the Taxpayer’s Bill of Rights.

    https://coloradosun.com/2021/06/18/colorado-tabor-refunds-2022-coronavirus/

  37. The globalist-owned Democratic Party is corrupt to its core.

    Why Doesn’t Soros and Clinton Connected Colorado Secretary of State Griswold Want a Forensic Audit In Her State? Because There’s Likely Lots of Fraud

    https://www.thegatewaypundit.com/2021/06/doesnt-soros-clinton-connected-colorado-secretary-state-griswold-want-forensic-audit-state-likely-lots-fraud/

    Yesterday, Colorado Secretary of State Jena Griswold released a statement that claimed she would not allow outside auditors to come into Colorado and perform an election audit of the 2020 results in Colorado.

    Maybe Griswold doesn’t want an audit in Colorado because then the citizens there would wake up and see their state’s election process is totally corrupt. One very quick statistic tells us this. In the 2020 Election, there were half a million more votes for Joe Biden than there were for Obama, Hillary, and President Trump. Simply put, there is no way Biden had half a million more votes than Hillary. No way.

  38. Globalist media is pushing the “housing shortage” narrative. Wait until the eviction moratorium expires and millions of deadbeats are told to GTFO so their kulak landlords can sell and eliminate their exposure to gub’mint-enforced “compassion.” Wait until two million mortgage deadbeats have to ante up the money they owe or start packing boxes. Wait until the FBs who massively overpaid start walking away from their underwater shacks in their millions as housing bubble 2.0 bursts.

    https://www.marketwatch.com/articles/home-builder-lennars-stock-is-a-buy-51624050583?mod=mw_latestnews

  39. The run on guns and ammo that began in 2020 and dramatically intensified when Biden was “elected” shows no signs of abating. It’s ironic that globalist oligarchs funding and controlling gun-control efforts and “astroturf” anti-2A movements have at the same time bankrolled the destabilizing and destructive insurrectionists and radical-left Democrats that have caused so many Americans to stockpile guns & ammo.

    Ammo shortage shows no sign of improving: Smith & Wesson

    https://www.foxbusiness.com/markets/ammo-shortage-shows-no-sign-improving-smith-wesson

    1. The Democrat Party is the party of white genocide, and they don’t even bother trying to hide it anymore.

      Globalists, we have your names, we have your addresses. You renounced your United States citizenship when you stole the 2020 election. And in consideration of that, you are effectively an occupying army, and we are the partisan resistance behind enemy lines.

      De-radicalize this, globalist sh*tbags. You think this is a f*cking game? Watch what happens when we wake up and the coastal elitists no longer have water, electricity, or police.

      Van Halen — Hang ‘Em High:

      https://www.youtube.com/watch?v=PJM2paIyn2c

  40. It’s been a year …

    PORTLAND, Ore. (AP) — A Portland, Oregon, man has been sentenced to five years in prison after pleading guilty to first-degree arson for starting a dumpster fire near the city’s North Precinct during a protest.

    Authorities say Gavaughn Street-Hillerich, 23, was recorded intentionally setting fire to a large dumpster near the exterior of the police precinct on June 26, 2020. The dumpster was pushed up against plywood on the windows, which had been installed to protect windows and prevent break-ins, according to the Multnomah County District Attorney’s Office.

    Man Sentenced to 5 Years for Setting Fire During Protests | Oregon News | US News
    https://www.usnews.com/news/best-states/oregon/articles/2021-06-14/man-sentenced-to-5-years-for-setting-fire-during-protests#:~:text=A%20Portland%2C%20Oregon%2C%20man%20has,North%20Precinct%20during%20a%20protest.&text=June%2014%2C%202021%2C%20at%2010%3A43%20p.m.&text=PORTLAND%2C%20Ore.

    1. When you post a link to an article on the HBB, the “#:~:text=A%20Portland%2C%20Oregon%2C%20man%20has,North%20Precinct%20during%20a%20protest.&text=June%2014%2C%202021%2C%20at%2010%3A43%20p.m.&text=PORTLAND%2C%20Ore.” should be cropped from the link.

      Despite your nickname, you are giving free money to the Real Journalists. Real Journalists hate America, and they need to be summarily executed and removed from society.

      All that garbage on the end of that URL string, why not just take an extra few seconds, and deny them the opportunity to monetize your post?

      1. Ben Jones we are moving to a “wartime” mentality and economy here. Why should -LAZY- HBB posters be allowed to give free money to corporatist commercial websites that advocate for the extermination of white people?

        At some point, some of you may wake up and realize how the country you were born in is being raped and destroyed.

        Globalists, this is the part you don’t understand. You are an invasive species of nation wrecking parasites.

        And it’s been decades now. We are going to take a stand, and we are going to say NO.

        If you voted against America you have forefegited your right to live here and we are happy to come help with separating your head from your neck, GLOBALISTS.

        Thanks again, Senor Jones.

        These people need to die. Let’s make it happen 🙂

      2. When you post a link to an article on the HBB, the “#:~:text=A%20Portland%2C%20Oregon%2C%20man%20has,North%20Precinct%20during%20a%20protest.&text=June%2014%2C%202021%2C%20at%2010%3A43%20p.m.&text=PORTLAND%2C%20Ore.” should be cropped from the link.

        Good point, Deplorable…The JT extension should be made strip this out automatically when posting links, and when rendering the page for anyone using it…I’ll see if I can get that in there.

    1. “Juneteenth” is one of the most annoying words I’ve heard. Whoever coined it should be kicked in the jimmies.

    1. Great work happening at the audit. Those against it are America last! Those who call it a fraudit or disparage the efforts are completely lost and need to he sidelined.

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