patrick.net

GNLusedtobeWine says

How can a financial institution lend at rates lower than inflation? Fraudulent market?

It should not.
Have you notice that recently banks simply don't care about people money. They can have as much as they need from thin air.
Use to be that banks were in competition with each other by offering higher interest rate on saving accounts, CDs, no fee services. Not anymore.
Economic is out, politics is in.

Guys you have to learn that there will never be a peak. Inflation is permanent, and will only get worse.

Selling is stupid, only reason I'm selling my CA house is because I hate CA government and paying them property taxes. If I didn't hate them that passionately, I'd keep it as a rental and bank on appreciation which is huge.

Al_Sharpton_for_President says

3. Colorado Springs

Yeah I noticed Colorado Springs real estate has started to cool down and prices have dropped some. Florida panhandle like Pensacola, Niceville, South Walton, and Panama City are not on the list. I wonder why because its been very active here as far as development.

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It's real estate Monkey Pox!

More inventory coming up in Santa Cruz, common to see hundreds of thousands of reduction off previous asking prices. It looks like speculators are bailing (20 percent of residential market?).

Surprising to see stuff come up so fast. Kind of unheard of since the last couple of years. Heard Santa Cruz is the second most expensive rental market to San Francisco. Little lady we see on walks said her landlord (rooming house) doubled their rent overnight. Combine that with general inflation, all kinds of fuckation for people without reserves.

FortWayneAsNancyPelosiHaircut says

Selling is stupid, only reason I'm selling my CA house is because I hate CA government and paying them property taxes. If I didn't hate them that passionately, I'd keep it as a rental and bank on appreciation which is huge.

Smart decision in my opine. I recall when you hadn't decided. keeping it might be smart in a red state in the right area. Even in TX I may sell mine before the 30 year mortgage is up. Reason being San Antonio tends to spread out in an urban sprawl concentric circle. People move outward for the nicer places and the interior goes to shit.

My former nice high school is full of gang bangers now.

Plus you can prob buy a more local quad-plex for what you sell it for. Investing in RE for appreciation is risky as all hell. Go for cash flow. Let the appreciation be the icing on the cake. If it comes and goes no problem. When it comes sell if you want.

Sell now or be priced down FOREVER!

On that note I move to SA in about 6 weeks. I'm going to rent at first and most of the houses in the area are owned and leased by Progress Residential. Same neighborhood as mine are.

OMG, big mistake but I don't have time to change it now and am interested in learning what people experience with my competition.

Nice house but I have to pay $15/month for a stupid smart lock (they use that to call it a smart home). I think the central air can be automated with my phone. There was a dumb $125 service fee. I've been dinged $35 twice for using a credit card to pay for stuff because they put artificial pre-payment deadlines and my bank still isn't connected via AHC. I'm going to be late because some more fees were not clear up front but I don't care. They'll have to push it out. I'm not doing that again. I have renters insurance but they will be charging me $17/month until I put their name on it.

The longest lease I've ever read in my life slanted hard toward them. I have to give 60 days notice. After 12 months if it goes month to month it goes to 120% without notice. I'm responsible for fixing broken sprinklers?!

Needless to say I'm just going to use it for a 10 month landing pad then find something else. I'm not going to kick out my renters.

Anyone who thinks I'm not providing a great service as a landlord there doesn't know WTF they are talking about.

Also, we need to put the kibosh on these large corps buying up houses. This is my first experience of, "You'll own nothing and be happy", - my ass

This is typical for renting from our corporate overlords, and they should be avoided.

just_passing_through says

On that note I move to SA in about 6 weeks. I'm going to rent at first and most of the houses in the area are owned and leased by Progress Residential. Same neighborhood as mine are.

OMG, big mistake but I don't have time to change it now and am interested in learning what people experience with my competition.

Nice house but I have to pay $15/month for a stupid smart lock (they use that to call it a smart home). I think the central air can be automated with my phone. There was a dumb $125 service fee. I've been dinged $35 twice for using a credit card to pay for stuff because they put artificial pre-payment deadlines and my bank still isn't connected via AHC. I'm going to be late because some more fees were not clear up front but I don't care. They'll have to push it out. I'm not doing that again. I have renters insurance but they will be charging me $17/month until I put their name on it.

The longest lease I've ever read in my life slanted hard t...

This ^^^

Fuck corporate ownership of SFH properties. The mom & pops are awesome, at least those that are not hand to mouth. The hand to mouth landlords try to scam, but they don't have the money for lawyers when you threaten them with a lawsuit, so they usually back down.

I lived in a corporate owned apartment. They wanted me to sign some rediculous agreement (they were switching how the utility charges were apportioned). I dug up state law showing what they were doing was illegal and made them sign my agreement where I ended up paying a fixed amount - otherwise I'd tell the state AG what they were trying to do. I enjoyed watching that corporate cunt writhe while she signed.

Booger says

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Booger, it is waterfront property on 1.72 acres. That will attract the type who want an expensive fishing boat moored in the back. Its tax assessment or assessed value went from $200,000 in 1999 to $600,000 in 2020. As a very rough order of magnitude (ROM) estimate, I would say it is worth $600,000 times 1.20 or $720,000.

So $800,000 is not unreasonable. What gets me is that it was last sold in 2021 for $1,025,000.

Back around July 2021 the 30 year rate was 3% and now is around 5%, so a 20% drop in price is in line with the general rule that real estate drops 10% for every 1% increase in the 30 year rate.

I wonder who bought it and why they are trying to sell it at a loss now.
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https://www.zillow.com/homedetails/14254-Mount-Pleasant-Rd-Jacksonville-FL-32225/44584254_zpid/

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I don't see screened in back yards. Maybe there are less skeeters that far North?

just_passing_through says

I don't see screened in back yards. Maybe there are less skeeters that far North?

Yeah, Jacksonville like Florida panhandle is still Florida especially with respect to mosquitoes, wetlands, palm trees, and even citrus. Both get warm weather but about 75 days less warm weather than South Florida. Beach weather is from early March to mid November, whereas South Florida's beach weather is about 10 months.

You can grow Hamlin oranges and grapefruit as far north as the border with Georgia or Alabama.

I suspect that Jacksonville has a mosquito control board that is very effective.

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ad says

Al_Sharpton_for_President says

3. Colorado Springs

Yeah I noticed Colorado Springs real estate has started to cool down and prices have dropped some. Florida panhandle like Pensacola, Niceville, South Walton, and Panama City are not on the list. I wonder why because its been very active here as far as development.

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Housing crash is moving from West to East and may skip the Midwest. It may take until 2023 for it to hit Florida.

I'm still waiting for Boise to drop

Booger says

Housing crash is moving from West to East and may skip the Midwest. It may take until 2023 for it to hit Florida.

Depends as long as there are enough people from the North who are selling homes at a greater price than the homes they buy in Florida.

But I agree, as I am seeing some cooling off here in the Florida panhandle as prices have obviously peaked.

My wife said our townhome (2 miles from the beach) should have a bottom price of a value that is based on 4% annual appreciation from when we bought it in summer 2016.

We bought it for $187,000 so that means (1.04)^6 x $187,000 which is $237,000. The last price sold for an identical home was $300,000 about 4 months ago.

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Hold my beer.

RedStar says

I'm still waiting for Boise to drop

You'll be waiting for a long time. Wookieman says price reductions are unpossible.

ad says

Depends as long as there are enough people from the North who are selling homes at a greater price than the homes they buy in Florida.

Demographics in certain parts of Florida, St Petersburg in particular, suggests that people need to be frantically moving into the area to replace all the people dying to keep the population steady. Also, Florida, and a few other places, are famous for having people migrate in waves. It's possible, maybe more like probable, that the pandemic simply pushed people's timeline forward too, and demand for housing in Florida at current prices is a huge deterrent as well. Same for Atlanta and Charlotte.

ad says

I wonder who bought it and why they are trying to sell it at a loss now.

Probably for carryover losses anticipating the market was going down and they had a good year doing something else to avoid a big tax bill. Rarely does anyone sell at a loss for fun. It was likely a tax strategy and they just paid a little PITI and wrote off a big tax bill. A $225k loss can get you out of some big tax bills if it was an investment and not owner occupied.

https://www.statesman.com/story/business/technology/2022/08/12/homeward-real-estate-startup-austin-tx-layoffs/65402005007/

Austin real estate startup Homeward to lay off 20% of employees

https://finance.yahoo.com/news/us-homebuilder-confidence-hits-worst-140000974.html

US Homebuilder Confidence Hits Worst Slump Since 2007 Collapse

zzyzzx says

https://finance.yahoo.com/news/us-homebuilder-confidence-hits-worst-140000974.html

US Homebuilder Confidence Hits Worst Slump Since 2007 Collapse

Hold my beer, zzyzzx.

Strange, Santa Cruz has opened up with sales more than tri-valley so far, with the 'low end' in tri-valley giving the first signs. I laugh, because the 'low end' people in rinky dinky condos could be living on McMansion estates in Texas. They mostly display their 'wealth' with vehicle mania.

https://www.fa-mag.com/news/wells-fargo-plans-major-retreat-from-mortgage-business-it-long-dominated-69227.html

Wells Fargo Plans Major Retreat From Mortgage Business It Long Dominated

Buffett isn't dumb.

Booger says

Wells Fargo Plans Major Retreat From Mortgage Business It Long Dominated

Not sure as they make about $800 on the mortgage origination fee and then they can sell the mortgages via mortgage back securities (MBS) in order to remove the liability from their financial books. They make at least a 20% profit from the origination fee after accounting for salaries, overhead, etc.

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Patrick says

Buffett isn't dumb.

Buffet probably isn't stupid, but he's not a genius so much as he's connected. Don't think the government doesn't directly assist him.

https://finance.yahoo.com/news/stock-market-live-news-updates-august-16-115939840.html

The stock market isn't bothered by a cratering housing market

zzyzzx says

https://finance.yahoo.com/news/stock-market-live-news-updates-august-16-115939840.html

The stock market isn't bothered by a cratering housing market

Just what exactly is the stock market trading on? A hot economy? TBTF? "The fed always has our back"?

ad says

Booger says

Wells Fargo Plans Major Retreat From Mortgage Business It Long Dominated

Not sure as they make about $800 on the mortgage origination fee and then they can sell the mortgages via mortgage back securities (MBS) in order to remove the liability from their financial books. They make at least a 20% profit from the origination fee after accounting for salaries, overhead, etc.

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The forecast is for an increase in foreclosures. Foreclosures are expensive because of all the legal fees, insurance and customer contact demand. Wells Fargo is good to get out. I say that based on my previous mortgage experience,

https://www.bloomberg.com/news/articles/2022-08-16/buyers-get-cold-feet-home-sale-cancellations-jump-in-july

US Home-Sale Cancellations Soar in July as Buyers Pull Back

https://www.cnn.com/2022/08/15/homes/rising-rent-wages-housing

Majority of Americans say they're worried about being able to pay for housing