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2022 Apr 29, 9:29pm 608,163 views 5,698 comments
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656
zzyzzx
2022 Aug 28, 4:42am
zzyzzx
2022 Aug 28, 4:42am
https://www.wsj.com/articles/shorting-zillow-is-your-best-bet-in-housing-this-year-11661556266
Shorting Zillow Is Your Best Bet in Housing This Year
Think the real-estate market is in for a price cut? The biggest one could still come to Zillow’s stock
Non-paywall version:
https://archive.ph/MHSpJ
U.S. home seekers are desperately eyeing an expected turn in housing prices, but the best near-term deal in real estate could come from yet another price cut to Zillow’s stock.
Having lost two-thirds of its value over the past 12 months on the heels of its home-flipping implosion, Zillow Group has already fallen to a market capitalization of barely $8 billion, despite the fact that virtually every U.S. adult is still “surfing” its namesake site monthly. Zillow might continue to draw a crowd, but that won’t earn a business model based on transactions much money.
More pain is likely coming. On its second-quarter conference call, even Chief Executive Rich Barton, known for his upbeat, colorful divinations, described the housing market as undergoing a “rebalancing.” In July, sales of new single-family homes fell nearly 30% on an annual basis and nearly 13% versus June. New home inventory has ballooned to the highest level in more than a decade. Zillow now expects transactions to “meaningfully contract” as inventory rises this year.
In perhaps the biggest sign that Zillow isn’t expecting a miraculous recovery in the near-term, Mr. Barton said he launched an employee-retention plan this month, including an off-cycle grant of restricted stock units to employees—ultimately accepting an expected 2% dilution over a few years in an attempt to ensure his top talent doesn’t flee over lower compensation, much of which is often based on equity value.
Yet Wall Street might not have fully digested this warning sign. Analysts’ third-quarter sales estimates for Zillow’s agent ads business (its largest) have come down by an average of just 12% since the company’s second-quarter report. On average, those estimates are still 7% above the midpoint of Zillow’s guidance.
Perhaps investors should take Zillow at its word. You might think fewer potential transactions would have agents upping their ad spending to compete for the smaller number of buyers there. But it seems that isn’t the case: Chief Financial Officer Allen Parker candidly said on the second-quarter call earlier this month that in a quickly declining macroeconomic environment, agent ad spending tends to slow down as buyer demand wanes. Importantly, he also said the slowdown in spending on Zillow’s platform tends to lead the market’s transaction declines, implying Zillow could see outsize weakness sooner rather than later.
Zillow’s agents don’t pay for idle eyeballs; they pay for motivated leads. A decline in their platform spending would suggest that, at least when the chips are down, they don’t feel like they are getting enough of those leads yet from Zillow. That might help to explain why 234 million people surf Zillow’s apps and sites monthly (a figure equivalent to over 90% of U.S. adults), but Zillow monetizes only 3% of U.S. real-estate transactions.
Longer-term, this will probably improve. Its new partnership with automated home-flipping market leader Opendoor means Zillow will collect a referral fee when its users choose to sell directly to Opendoor. But the bigger hope is that those whom Opendoor turns down, or who decide to sell the traditional way, can be fed as quality leads to Zillow’s so-called “Premier Agents.” It also brings to the platform home sellers it can try to monetize on a subsequent home purchase, via adjacent services like mortgages, title and escrow.
Getting into bed with the company that just last year was its rival in iBuying had to be hard for Zillow, given its own failure in that business. So its decision to pursue a partnership despite that underscores Zillow’s belief in the scope of the opportunity on the seller side of transactions for its own platform.
Zillow wants to evolve from America’s favorite pastime to its best-paid quarterback on both sides of the real-estate game. The fact that its mobile app has over three times the number of monthly active users as its closest competitor means that, if anyone can do it, Zillow probably can
Shorting Zillow Is Your Best Bet in Housing This Year
Think the real-estate market is in for a price cut? The biggest one could still come to Zillow’s stock
Non-paywall version:
https://archive.ph/MHSpJ
U.S. home seekers are desperately eyeing an expected turn in housing prices, but the best near-term deal in real estate could come from yet another price cut to Zillow’s stock.
Having lost two-thirds of its value over the past 12 months on the heels of its home-flipping implosion, Zillow Group has already fallen to a market capitalization of barely $8 billion, despite the fact that virtually every U.S. adult is still “surfing” its namesake site monthly. Zillow might continue to draw a crowd, but that won’t earn a business model based on transactions much money.
More pain is likely coming. On its second-quarter conference call, even Chief Executive Rich Barton, known for his upbeat, colorful divinations, described the housing market as undergoing a “rebalancing.” In July, sales of new single-family homes fell nearly 30% on an annual basis and nearly 13% versus June. New home inventory has ballooned to the highest level in more than a decade. Zillow now expects transactions to “meaningfully contract” as inventory rises this year.
In perhaps the biggest sign that Zillow isn’t expecting a miraculous recovery in the near-term, Mr. Barton said he launched an employee-retention plan this month, including an off-cycle grant of restricted stock units to employees—ultimately accepting an expected 2% dilution over a few years in an attempt to ensure his top talent doesn’t flee over lower compensation, much of which is often based on equity value.
Yet Wall Street might not have fully digested this warning sign. Analysts’ third-quarter sales estimates for Zillow’s agent ads business (its largest) have come down by an average of just 12% since the company’s second-quarter report. On average, those estimates are still 7% above the midpoint of Zillow’s guidance.
Perhaps investors should take Zillow at its word. You might think fewer potential transactions would have agents upping their ad spending to compete for the smaller number of buyers there. But it seems that isn’t the case: Chief Financial Officer Allen Parker candidly said on the second-quarter call earlier this month that in a quickly declining macroeconomic environment, agent ad spending tends to slow down as buyer demand wanes. Importantly, he also said the slowdown in spending on Zillow’s platform tends to lead the market’s transaction declines, implying Zillow could see outsize weakness sooner rather than later.
Zillow’s agents don’t pay for idle eyeballs; they pay for motivated leads. A decline in their platform spending would suggest that, at least when the chips are down, they don’t feel like they are getting enough of those leads yet from Zillow. That might help to explain why 234 million people surf Zillow’s apps and sites monthly (a figure equivalent to over 90% of U.S. adults), but Zillow monetizes only 3% of U.S. real-estate transactions.
Longer-term, this will probably improve. Its new partnership with automated home-flipping market leader Opendoor means Zillow will collect a referral fee when its users choose to sell directly to Opendoor. But the bigger hope is that those whom Opendoor turns down, or who decide to sell the traditional way, can be fed as quality leads to Zillow’s so-called “Premier Agents.” It also brings to the platform home sellers it can try to monetize on a subsequent home purchase, via adjacent services like mortgages, title and escrow.
Getting into bed with the company that just last year was its rival in iBuying had to be hard for Zillow, given its own failure in that business. So its decision to pursue a partnership despite that underscores Zillow’s belief in the scope of the opportunity on the seller side of transactions for its own platform.
Zillow wants to evolve from America’s favorite pastime to its best-paid quarterback on both sides of the real-estate game. The fact that its mobile app has over three times the number of monthly active users as its closest competitor means that, if anyone can do it, Zillow probably can
658
Ceffer
2022 Aug 28, 11:26am
Ceffer
2022 Aug 28, 11:26am
West side Santa Cruz is particularly crime prone, drug gangs etc., still, prices are high over there. $300k price drop for a more Eastie home that might go for 600-700k in a nice neighborhood in Texas (looks like areas of Texas have inflated, too). There are probably about twice as many listings as there were a month ago, maybe even more.
659
GNL
2022 Aug 28, 11:45am
GNL
2022 Aug 28, 11:45am
ZipperTits says
Isn't this disingenuous? How much of the investor's actual money is tied up in the investment? Not $1.6 million.
Cap rate is collapsing for San Jose market.
This means an investor would get more ROI just by parking their dough in t-bills than buying and renting housing here.
https://youtu.be/IZ65sM01K6U
Disclosure: All of the above should be outright false according to the PatNet Real Estate 'expert' community.
Isn't this disingenuous? How much of the investor's actual money is tied up in the investment? Not $1.6 million.
660
Ceffer
2022 Aug 28, 3:57pm
Ceffer
2022 Aug 28, 3:57pm
I forgot in CalfuckUornia Prop 19 limited the use of prop 13 inheritance. Heirs have to take occupancy within time limits as primary residence, or tax base valuation goes up. I doubt this will stop some from using houses as rentals under the radar, but the idea of leaving inherited houses fallow and empty for generations got harder.
661
Booger
2022 Aug 28, 5:23pm
Booger
2022 Aug 28, 5:23pm
https://finance.yahoo.com/news/census-bureau-3-8-million-100000978.html
Census Bureau: 3.8 million renters will likely be evicted in the next two months
ERECTION INTENSIFYING!!!
Census Bureau: 3.8 million renters will likely be evicted in the next two months
ERECTION INTENSIFYING!!!
662
Patrick
2022 Aug 28, 5:37pm
Patrick
2022 Aug 28, 5:37pm
zzyzzx says
Oh, lol, I didn't know that former Zillow CEO Spencer Rascoff had been canned:
https://www.housingwire.com/articles/48253-zillow-replaces-ceo-spencer-rascoff-with-original-ceo-rich-barton/
More pain is likely coming. On its second-quarter conference call, even Chief Executive Rich Barton
Oh, lol, I didn't know that former Zillow CEO Spencer Rascoff had been canned:
https://www.housingwire.com/articles/48253-zillow-replaces-ceo-spencer-rascoff-with-original-ceo-rich-barton/
In what can only be categorized as a shocking development, Zillow Group announced Thursday that Spencer Rascoff is stepping down as the company’s CEO, a position he’s held since 2010.
665
Patrick
2022 Aug 28, 6:03pm
Patrick
2022 Aug 28, 6:03pm
ZipperTits says
True, one way or another, the buyer has to carry the cost of buying the house.
There are two sources of income from owning a house:
1. getting rent (or avoiding paying rent)
2. land appreciation (the building itself always falls in value over time as nature rots it away)
If the land is not appreciating, then the only income is the rent. If that rent does not cover the expenses of owning, then it's a loss.
In this case, the rental income from investing in the house is 26101 / 1619785 = 0.016, which is 1.6%
If the land is not appreciating, it's a bad investment because that's a shitty return.
Income from land appreciation is just parasitical sponging off of the need for others to be in that area for work, as Henry George documents so thoroughly in Progress and Poverty.
Parasitical sponging off of others' wages worked as long as California was growing, but now that it's not, that unearned income from owning land without doing work cannot be counted on. This is very interesting. What happens now?
Banks are going to find that most of their loans are underwater, and people who had "money in the bank" are going to find it hard to get that money back, since the bank literally doesn't have it anymore, having lent it out to borrowers who then lost it.
The Fed will probably once again buy up the bad loans by money-printing, but this is inflationary, and everyone who owns dollars will find that they are footing the bill for banks that made bad loans and borrowers who overpaid.
I suppose that inflation will buoy the house price to some degree, in effect transferring wealth from responsible savers to irresponsible buyers and lenders.
No. It isn't disingenuous because investor lending costs has to be deducted from that income.
True, one way or another, the buyer has to carry the cost of buying the house.
There are two sources of income from owning a house:
1. getting rent (or avoiding paying rent)
2. land appreciation (the building itself always falls in value over time as nature rots it away)
If the land is not appreciating, then the only income is the rent. If that rent does not cover the expenses of owning, then it's a loss.
In this case, the rental income from investing in the house is 26101 / 1619785 = 0.016, which is 1.6%
If the land is not appreciating, it's a bad investment because that's a shitty return.
Income from land appreciation is just parasitical sponging off of the need for others to be in that area for work, as Henry George documents so thoroughly in Progress and Poverty.
Parasitical sponging off of others' wages worked as long as California was growing, but now that it's not, that unearned income from owning land without doing work cannot be counted on. This is very interesting. What happens now?
Banks are going to find that most of their loans are underwater, and people who had "money in the bank" are going to find it hard to get that money back, since the bank literally doesn't have it anymore, having lent it out to borrowers who then lost it.
The Fed will probably once again buy up the bad loans by money-printing, but this is inflationary, and everyone who owns dollars will find that they are footing the bill for banks that made bad loans and borrowers who overpaid.
I suppose that inflation will buoy the house price to some degree, in effect transferring wealth from responsible savers to irresponsible buyers and lenders.
666
GNL
2022 Aug 28, 6:09pm
GNL
2022 Aug 28, 6:09pm
Patrick says
What seems weird to me, is that, what if I only have $50,000 of my own $$ invested in the house via down-payment? The return is pretty good, no?
ZipperTits says
No. It isn't disingenuous because investor lending costs has to be deducted from that income.
True, one way or another, the buyer has to carry the cost of buying the house.
There are two sources of income from owning a house:
1. getting rent (or avoiding paying rent)
2. land appreciation (the building itself always falls in value over time as nature rots it away)
If the land is not appreciating, then the only income is the rent. If that rent does not cover the expenses of owning, then it's a loss.
In this case, the rental income from investing in the house is 26101 / 1619785 = 0.016, which is 1.6%
If the land is not appreciating, it's a bad investment because that's a shitty return.
Income from land appreciation...
What seems weird to me, is that, what if I only have $50,000 of my own $$ invested in the house via down-payment? The return is pretty good, no?
667
Patrick
2022 Aug 28, 6:14pm
Patrick
2022 Aug 28, 6:14pm
GNL says
You're talking about leverage.
Leverage works both ways. If you bought that house for $1,619,785 and the house goes down in value by 50000 / 1619785 = 3% then your $50,000 is gone.
What seems weird to me, is that, what if I only have $50,000 of my own $$ invested in the house via down-payment? The return is pretty good, no?
You're talking about leverage.
Leverage works both ways. If you bought that house for $1,619,785 and the house goes down in value by 50000 / 1619785 = 3% then your $50,000 is gone.
668
Patrick
2022 Aug 28, 6:18pm
Patrick
2022 Aug 28, 6:18pm
It's very much like buying stock on margin. You can borrow to buy stock, up to a point, and you may increase your returns that way.
Or you may increase your losses.
When you buy a house, you're also buying the risk that the price of that house will decline. The amount of risk you assume is inversely proportional to your downpayment.
A small downpayment is a big risk.
Or you may increase your losses.
When you buy a house, you're also buying the risk that the price of that house will decline. The amount of risk you assume is inversely proportional to your downpayment.
A small downpayment is a big risk.
669
Patrick
2022 Aug 28, 6:24pm
Patrick
2022 Aug 28, 6:24pm
I suppose the whole game comes down to how much the Fed is going to bail out land owners and the banks at the expense of people who own dollars when land values fall.
670
WookieMan
2022 Aug 28, 6:52pm
WookieMan
2022 Aug 28, 6:52pm
Patrick says
My current house was bought on my MIL's margin account I had her set up. We're up at least $150k with no money out of pocket to purchase.
I can pretty much get any house I want in flyover country. MIL is an alcoholic now with other issues, so a bit more difficult to convince here to loan. My SIL also is currently fucking her over trying the same thing with a kitchen remodel. No new kitchen yet. $50k she borrowed. So done with family.
It's very much like buying stock on margin.
My current house was bought on my MIL's margin account I had her set up. We're up at least $150k with no money out of pocket to purchase.
I can pretty much get any house I want in flyover country. MIL is an alcoholic now with other issues, so a bit more difficult to convince here to loan. My SIL also is currently fucking her over trying the same thing with a kitchen remodel. No new kitchen yet. $50k she borrowed. So done with family.
671
AD
2022 Aug 28, 10:49pm
AD
2022 Aug 28, 10:49pm
Lowes is at $200. Its 52 week high was $263.
It was $125 in early 2020 before the COVID pandemic crash. It likely may bottom (again) within the range of $160 to $180.
.
It was $125 in early 2020 before the COVID pandemic crash. It likely may bottom (again) within the range of $160 to $180.
.
672
Patrick
2022 Aug 29, 7:40am
Patrick
2022 Aug 29, 7:40am
Patrick says
The only thing that limits the Fed is the threat of popular revolt as inflation keeps rising.
I suppose the whole game comes down to how much the Fed is going to bail out land owners and the banks at the expense of people who own dollars when land values fall.
The only thing that limits the Fed is the threat of popular revolt as inflation keeps rising.
673
zzyzzx
2022 Aug 29, 8:46am
zzyzzx
2022 Aug 29, 8:46am
https://finance.yahoo.com/news/housing-worst-time-to-buy-151827122.html
Yahoo Money Housing expert: ‘This might be the worst time you could buy’
Yahoo Money Housing expert: ‘This might be the worst time you could buy’
674
zzyzzx
2022 Aug 29, 9:15am
zzyzzx
2022 Aug 29, 9:15am
https://www.barrons.com/articles/the-housing-market-is-in-recession-what-it-means-for-home-buyers-51661617521
The Housing Market Is in Recession. What It Means for Home Buyers.
The Housing Market Is in Recession. What It Means for Home Buyers.
676
Patrick
2022 Aug 29, 9:44am
Patrick
2022 Aug 29, 9:44am
https://kunstler.com/clusterfuck-nation/the-wild-west/
The Fed Chair, Mr. Powell, said all the parts out loud at the annual Jackson Hole banker meet-up last week: look out below, we’ve decided to take this sucker down (in the immortal words of George W. Bush), since pretending to stoke prosperity via Modern Monetary Theory only results in, duh, ruinous inflation. This raises the question, though, as to which is more politically damaging: inflation or depression? It is really only the difference between having plenty of worthless money or having no money at all.
677
zzyzzx
2022 Aug 29, 10:24am
zzyzzx
2022 Aug 29, 10:24am
https://www.deseret.com/utah/2022/8/26/23323488/housing-market-home-prices-house-rich-cash-poor-bubble-recession-crash
They bought at the height of the housing frenzy. Now they’re ‘house rich, cash poor’
They bought at the height of the housing frenzy. Now they’re ‘house rich, cash poor’
678
Ceffer
2022 Aug 29, 11:37am
Ceffer
2022 Aug 29, 11:37am
More price drops around Santa Cruz. Now, when that beach front 3,000 sq. ft. bungalow drops to 250K, I'm buying.
679
REpro
2022 Aug 29, 12:23pm
REpro
2022 Aug 29, 12:23pm
Ceffer says
Well, if it drops as you wish for, that will be 100,000 buyers betting on this same bungalow.
More price drops around Santa Cruz. Now, when that beach front 3,000 sq. ft. bungalow drops to 250K, I'm buying.
Well, if it drops as you wish for, that will be 100,000 buyers betting on this same bungalow.
680
Patrick
2022 Aug 29, 1:18pm
Patrick
2022 Aug 29, 1:18pm
ZipperTits says
The whole fake epidemic was essentially a fake dirty bomb attack already.
fake a dirty bomb attack
The whole fake epidemic was essentially a fake dirty bomb attack already.
682
Eman
2022 Aug 29, 7:22pm
Eman
2022 Aug 29, 7:22pm
ZipperTits says
A lot of misinformation and examples being thrown around IMO.
The housing market has been on the mend and dropping, no doubt about that. Will it continue to drop? Probably. By how much? It’s anyone’s guess.
This YouTuber said he has experience in commercial real estate while he talked about single family homes and calculated them based on cap rate. Then he compared Denver, San Jose and Pittsburgh cap rates. Why didn’t he use Detroit as an example and told everyone to buy there?
Which institutions do we know who bought rentals in Denver and San Jose markets with 1.6% and 3% cap rate? I’ve seen articles where they bought in suburban markets of Atlanta, etc…. With 5-7% cap rate a few years ago.
Also, these institutions borrow at COFI rate. It’s around 1.5% at the moment while Fed fund rate is 2.5-2.75%. Even commercial banks are still lending at 3.75%-4% for 5/1 ARM. It’s because their profit margin is 2.25-2.5% above COFI. This means they don’t foresee rates to remain high within the next 5 years. Follow the money. Be objective will benefit us.
Cap rate is collapsing for San Jose market.
This means an investor would get more ROI just by parking their dough in t-bills than buying and renting housing here.
https://youtu.be/IZ65sM01K6U
Disclosure: All of the above should be outright false according to the PatNet Real Estate 'expert' community.
A lot of misinformation and examples being thrown around IMO.
The housing market has been on the mend and dropping, no doubt about that. Will it continue to drop? Probably. By how much? It’s anyone’s guess.
This YouTuber said he has experience in commercial real estate while he talked about single family homes and calculated them based on cap rate. Then he compared Denver, San Jose and Pittsburgh cap rates. Why didn’t he use Detroit as an example and told everyone to buy there?
Which institutions do we know who bought rentals in Denver and San Jose markets with 1.6% and 3% cap rate? I’ve seen articles where they bought in suburban markets of Atlanta, etc…. With 5-7% cap rate a few years ago.
Also, these institutions borrow at COFI rate. It’s around 1.5% at the moment while Fed fund rate is 2.5-2.75%. Even commercial banks are still lending at 3.75%-4% for 5/1 ARM. It’s because their profit margin is 2.25-2.5% above COFI. This means they don’t foresee rates to remain high within the next 5 years. Follow the money. Be objective will benefit us.
683
Eman
2022 Aug 29, 9:28pm
Eman
2022 Aug 29, 9:28pm
ZipperTits says
Let’s wait and see the default rate. You’re speculating at the moment.
Banks don’t call loans due as long as payments are made. Have you seen the rate of rent increases in some of those markets. If they can command high rents, lower chance of them defaulting on the loans.
Quit being a dick. Be objective. Look at the data. Rising rents can service higher interest rates. These institutions are playing a different game with their borrowing cost unlike the little sheeples who have to pay higher rates.
Show where I said housing prices will not decline earlier this year. CA home prices have hit the max housing affordability index, which means the top is in. The question is how much will it fall. I follow data. I don’t talk out of emotions and say wishful 💩
Eman says
Which institutions do we know who bought rentals in Denver and San Jose markets with 1.6% and 3% cap rate?
The ones who bought in those markets. Was fine when interest rates were low. But not now when they are high.
Let’s wait and see the default rate. You’re speculating at the moment.
Banks don’t call loans due as long as payments are made. Have you seen the rate of rent increases in some of those markets. If they can command high rents, lower chance of them defaulting on the loans.
Quit being a dick. Be objective. Look at the data. Rising rents can service higher interest rates. These institutions are playing a different game with their borrowing cost unlike the little sheeples who have to pay higher rates.
Show where I said housing prices will not decline earlier this year. CA home prices have hit the max housing affordability index, which means the top is in. The question is how much will it fall. I follow data. I don’t talk out of emotions and say wishful 💩
684
Eman
2022 Aug 29, 9:34pm
Eman
2022 Aug 29, 9:34pm
This just hit the inbox. 7/1 ARM is 3.65% for owner occupant. 4.35% for investment. This is the reality like it or not.
What do you think will happen if the economy hit a bump in the next few years? If history is any guidance, the Fed will cut rates to 0% again. Rates will drop to the 2%ish again. It’s time to refinance and lock in that 30-year fixed then. Voila.
What do you think will happen if the economy hit a bump in the next few years? If history is any guidance, the Fed will cut rates to 0% again. Rates will drop to the 2%ish again. It’s time to refinance and lock in that 30-year fixed then. Voila.
686
zzyzzx
2022 Aug 30, 5:50am
zzyzzx
2022 Aug 30, 5:50am
https://www.reddit.com/r/RealEstate/comments/x0ruq1/no_one_showed_up_at_our_open_house/
No one showed up at our open house!
My favorite response:
Same thing happened to me. My realtor was very, very optimistic. When we lowered the price it was like magic...people all of the sudden showed interest. Not hoards of people, but more than zero. Don't be bummed out however, if you still get people bidding under your new, low price. At least you'll be selling.
No one showed up at our open house!
My favorite response:
Same thing happened to me. My realtor was very, very optimistic. When we lowered the price it was like magic...people all of the sudden showed interest. Not hoards of people, but more than zero. Don't be bummed out however, if you still get people bidding under your new, low price. At least you'll be selling.
687
Al_Sharpton_for_President
2022 Aug 30, 5:55am
Al_Sharpton_for_President
2022 Aug 30, 5:55am
zzyzzx says
Raleigh, NC: Black or African American (Non-Hispanic): 28.1%.
https://www.reddit.com/r/RealEstate/comments/x0ruq1/no_one_showed_up_at_our_open_house/
No one showed up at our open house!
Raleigh, NC: Black or African American (Non-Hispanic): 28.1%.
689
zzyzzx
2022 Aug 30, 6:02am
zzyzzx
2022 Aug 30, 6:02am
https://nationalmortgageprofessional.com/news/housing-market-inflection-point
Black Knight analyst says data shows clear signs that housing-price growth “tipped from deceleration to decline” in July.
Black Knight analyst says data shows clear signs that housing-price growth “tipped from deceleration to decline” in July.
690
Misc
2022 Aug 30, 9:23am
Misc says
Looks like I called this one right. Bank of America trying to help out those landlords holding rental properties in Black areas.
So Real Estate prices should crash because of higher rates...time to get the Blacks to buy. So Bank of America decides that NOW is the time to make zero down payments available to Blacks. ---- You know they're gonna fall for it again.
I called this back on July 6.
https://www.bloomberg.com/news/articles/2022-08-30/bofa-tests-no-down-payment-mortgages-for-minority-communities?srnd=premium#xj4y7vzkg
It should be about time for the Washington establishment to start expanding opportunities for generational wealth building. Especially for the marginalized members of society. I mean the Blacks fell for it under Bush's "ownership society". Mortgage brokers fell all over themselves to put Blacks into subprime mortgages that shot up in payments after a year or so. Sure, they made these products available at the height of the housing bubble when prices were stupid, but the mortgagees had "character". After the bubble burst, and by golly the mortgage payments that doubled just weren't paid; the Blacks were worse off than they started as a percentage of them as homeowners.
Think they will fall for government help again ????
Their track record ain't the greatest.
Looks like I called this one right. Bank of America trying to help out those landlords holding rental properties in Black areas.
So Real Estate prices should crash because of higher rates...time to get the Blacks to buy. So Bank of America decides that NOW is the time to make zero down payments available to Blacks. ---- You know they're gonna fall for it again.
I called this back on July 6.
https://www.bloomberg.com/news/articles/2022-08-30/bofa-tests-no-down-payment-mortgages-for-minority-communities?srnd=premium#xj4y7vzkg
691
zzyzzx
2022 Aug 30, 10:09am
zzyzzx
2022 Aug 30, 10:09am
https://www.reddit.com/r/investing/comments/x130fv/what_happens_when_major_firms_start_dumping_mbs/
What happens when major firms start dumping MBS?
What happens when major firms start dumping MBS?
692
zzyzzx
2022 Aug 30, 10:13am
zzyzzx
2022 Aug 30, 10:13am
OpenDoor taking another bath:
https://www.redfin.com/CA/San-Marcos/1481-Beechtree-Rd-92078/home/6311329
https://www.redfin.com/CA/San-Marcos/1481-Beechtree-Rd-92078/home/6311329
695
Eman
2022 Aug 30, 4:18pm
Eman
2022 Aug 30, 4:18pm
ZipperTits says
Have you ever witnessed any lender calling the loan due when the borrower is not in default? Bank would cut or freeze the line of credit to reduce risks. Banks are in the business of lending. The last thing they want to do is to call any loan due as foreclosing can get very expensive.
I’m not BSing. I live in the trenches and breathe this stuff everyday. I underwrite many deals to get one. I share real life experience in the hope people can learn from it instead of listening to fake news from the MSM.
As I shown in the quote above, 4.25% for 30-year fixed is available for OO housing in the Bay Area, not 5.5-6% as the MSM are touting.
Emwe're.
ys
Let’s wait and see the default rate. You’re speculating at the moment.
Default rate has nothing to do with what I was talking about.
Stop the bullshit.
Have you ever witnessed any lender calling the loan due when the borrower is not in default? Bank would cut or freeze the line of credit to reduce risks. Banks are in the business of lending. The last thing they want to do is to call any loan due as foreclosing can get very expensive.
I’m not BSing. I live in the trenches and breathe this stuff everyday. I underwrite many deals to get one. I share real life experience in the hope people can learn from it instead of listening to fake news from the MSM.
As I shown in the quote above, 4.25% for 30-year fixed is available for OO housing in the Bay Area, not 5.5-6% as the MSM are touting.
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https://finance.yahoo.com/news/pimco-kiesel-called-housing-top-160339396.html?source=patrick.net
Bond manager Mark Kiesel sold his California home in 2006, when he presciently predicted the housing bubble would pop. He bought again in 2012, after U.S. prices fell more than 30% and found a floor.
Now, after a record surge in prices, Kiesel says the time to sell is once again at hand.