patrick.net

HeadSet says

I presume he assumed loans from veteran sellers

He could own 2 at a time. Not sure if the rules have changed. Rent one out and live in the other (technically). Both have to be primary at first for purchase and then move to the next. He just bought a house out in Montana (he lives there) that I crashed a week or so ago. He's down to one house now. But yeah, for a middle class bachelor he's done decent on housing tax free cap gains.

zzyzzx says

Resubmit next week, 10k less, and add a line at the end stating all rejections must be signed as proof the sellers were made aware of it.

It's a nice thought, but the whole point of being a realtor is to block all direct communication between buyer and seller. That's so that the realtor can "lose" bids that don't benefit him to the maximum amount personally.

Every buyer should always send a copy of his bid to the owners directly, though I'm sure buyer's agents have rules against that as well.

Added image to original post to make it easier to see in thread lists.

Patrick says

the whole point of being a realtor

Ahem, bro, it's ®ealtor, - got it?

https://www.realestateconsulting.com/speedy-escape-from-housing-market-slump-unlikely/

And that is what the $600,000 home is now worth.

https://www.reddit.com/r/REBubble/comments/xl4wq4/update_watched_a_property_bread_crumb_price_drops/

‘The housing market may have to go through a correction’: Mortgage rates hit 6.29%, Freddie Mac says

https://finance.yahoo.com/m/c9971b8a-06fe-307a-8997-1c38e2e3fd90/%E2%80%98the-housing-market-may-have.html

Anyone that has to sell at inflated prices because they bought their home recently, then I hope they have an assumable mortgage at a rate less than 4%.

Than it may not be painful for them. But how much pain is this housing crash really going to be ?

Most people who will sell likely have no to very little of a mortgage balance or they still have a significant amount of equity even with a 30% drop in prices from early 2022 peak.

It is not as if subprime mortgages are a risk especially relative to 2007.

.

DJIA down almost 3 percent today In keeping with the alleged Shemitah? Looks like the Hummer fleet is stripping fast.

DJIA bumped back up to 2 percent down. Back to about April 2020 levels minus the purchasing losses of inflation (20 percent?) since then?

If we get 50 percent inflation next year, which is quite possible, then purchasing power is declining rapidly, no matter what the ostensible bolus.

Ceffer says

DJIA down almost 3 percent today

Ceffer says

DJIA bumped back up to 2 percent down.

Then down for the day at -1.6%.

Looks like the PPT was busy late in the day.

S&P 500 is about 9% above February 2020 levels. In real or inflation-adjusted terms, it is below February 2020 levels.

So the Fed got what it wanted as far as COVID-pandemic asset gains being wiped out.

Housing naturally takes longer to respond but I would not be surprised if it drops to mid 2021 levels within the next 2 years.

.

BayArea says

Patrick says

zzyzzx says

Looks like money laundering.

Redfin doesn’t show that sale price. Maybe just a print error?

Error with "7". house wasn't listed for sale. Last sold for 307,000 1.5 year ago.

One thing I remember in San Diego is that the most desirable areas ALWAYS had demand, even in a job loss recession. Prices dipped somewhat but rich people, in general, always have cash and aren't as impacted by the economy. Everyone has to live somewhere even in economic disaster.

The coming contraction will be painful for many.

porkchopexpress says

The coming contraction will be painful for many.

Having worked in RE during the housing crisis. It's not painful. People need to realize you're not going to jail for not paying debt, but I think a lot of people believe that's a consequence. Even intelligent people. It's not YOUR fault that interest rates or prices got insane. Walk away. Besides credit score damage, there's nothing else. At least on a primary home. Even investments. You take the ding. 7 years later it's gone completely no matter what. AND you could still get financing for a home within 3-4 years or get creative.

My advice is take the emotion out of it. You think the banks have emotion about it? Hells no. They know they're raping 90% of their customers. If you're the 10% that screws them that's called business.

A new weird in the housing market.

“Since the vast majority of homeowners who might consider moving have a mortgage rate far below current levels, there’s very little new supply hitting the market.”

https://www.redfin.com/news/housing-market-update-welcome-to-the-new-weird/?inquirySource=365

This may explain why…

https://www.redfin.com/news/homeowners-locked-into-low-mortgage-rates/

Need job losses for more people to sell.

porkchopexpress says

One thing I remember in San Diego is that the most desirable areas ALWAYS had demand, even in a job loss recession. Prices dipped somewhat but rich people, in general, always have cash and aren't as impacted by the economy. Everyone has to live somewhere even in economic disaster.

The coming contraction will be painful for many.

What portion of their water comes from the Colorado River these days?

https://www.nbcnews.com/politics/pandemics-real-estate-jobs-boom-turning-bust-layoffs-hit-rcna48811

The pandemic's real estate jobs boom is turning into a bust as layoffs hit

As housing sales slow amid higher interest rates, thousands of workers who found jobs in the booming housing market of the pandemic are now facing widespread layoffs with steeper cuts expected ahead.

Some of the biggest players in the real estate industry, including RE/MAX, Redfin and Wells Fargo, have announced layoffs in recent months totaling thousands of jobs. Industry analysts are projecting the cuts could eventually be on par with what was seen during the housing crash of 2008.

According to the National Association of Realtors, the number of homes being sold in the U.S. fell nearly 20% between August 2021 and August 2022 in large part because of the Federal Reserve's decision to begin raising interest rates in March in an effort to bring down decades-high inflation. As a result, home mortgage interest rates have doubled this year, pricing an increasing number of buyers out of the market.

“It’s gonna be tough, layoffs are a common occurrence right now,” said Linda McCoy, head of the National Association of Mortgage Brokers, who has been in the mortgage industry for 30 years. “It’s scary, because you just don’t know where or when it’s going to stop.”

It’s a stark reversal from where the housing-related job market has been over the past two years. As more people found themselves working from home and interest rates hit record lows, a surge of buyers entered the market looking for new homes. Existing home sales last year reached their highest level since 2006.

The demand for housing, and the jobs that were created, provided a bright spot in a bleak job market for workers during the first two years of the pandemic. Many of them were looking to pivot from industries hit hard by the pandemic, such as hospitality, food service, health care and education, according to industry analysts.

Over that period, 200,000 people became real estate agents, according to data from the National Association of Realtors.

In addition to the demand for houses, many homeowners looked to refinance their mortgages. Mortgage firms rapidly started hiring workers, some straight out of college or with little experience, said McCoy.

The number of people employed as loan originators or processors grew 31% from the start of 2020 to the end of 2021, according to data from SimpleNexus.

Some companies offered five-figure bonuses to new hires and thousands of dollars a month in bonus pay, said Myiesha Lacy, who has worked in the real estate finance industry for 20 years and was recently laid off from her job at Sprout Mortgage when it went out of business.

While the overall job market remains strong with the economy adding 315,000 jobs in August, industry analysts warn the trends in the housing sector could have a wider ripple effect as fewer people buying homes means cuts to spending in other areas, such as appliances, furniture and renovations.

“The housing market is in a sense holding back the economic growth or even pushing the overall economy slightly negative, and it has a ripple effect,” said Lawrence Yun, chief economist for the National Association of Realtors.

Workers in the mortgage industry have been among the hardest hit as demand for refinancing and home sales tumble. More than three dozen companies in the mortgage sector have shut down, been acquired or announced job cuts in the past six months, eliminating thousands of jobs, according to a tally by NBC News.

Wow, thousands of jobs? Out of over 160,000,000 jobs, we've lost thousands? Katie bar the door!!

Inventories are definitely starting to uptick in Santa Cruz, Capitola, Live Oak and Soquel. There are punch throughs of large price drops on some, though prices are still ridiculous. Will the Silicon Valley jet setters save RE prices in Santa Cruz? Only the nose knows.

My ARM @ 5.5%/5 for 25 years is looking REAL good right now.

Rates will drop. They can go higher, but if you can afford the payment what difference does it make? If you want to buy, you're going to. If you have to rent, you're still paying the landlords PITI at minimum. So a renter is paying the same interest rates, generally with a 10-30% premium depending on what the landlord bought it for. Outside of CA, you need a roof over your head.

If prices drop who cares. Most or all of us lived through the worst housing crisis in modern history. High interest rates for qualified borrowers is substantially better than 2006-08. And sure prices will stall or drop slightly. Until there's more building I cannot envision a crash in most areas. The hipster areas will be hit first though.

Booger says

Most or all of us lived through the worst housing crisis in modern history.

THIS is the worst housing crisis ever in history right now.
Many will lose their homes and jobs. There will be no money in the economy for consumption (US GDP is what, 70% consumption?) so the economy will tank.
There are bubbles everywhere, not just housing, hence the saying 'the bursting of the everything bubble".
An entire generation is in for a very, very rude awakening as reality bites. (Not necessarily a bad thing as the woke agenda will lose steam).
America no longer has an industrial base.
This time the bansters won't be bailed out and so will go under.
Maybe the ATMs will stop dispensing cash and debit cards won't work in supermarkets as the system goes under.

But it could get even worse than that, when all else fails they take you to war. There are some that believe a limited nuclear war against Russia is winnable!
They are insane and still believe in their Build Back Better Great Reset.

.

charlie303 says

This time the banksters won't be bailed out and so will go under.

Are you sure about that???

I forget to mention the US Govn.
US$30 Trillion in debt and needing at least US$1 Trillion extra every year to make up the budget deficit.
Where's that money going to come from? The printing press? Who else is going to want to hold the debt? China?
How is the US Govn going to pay the interest on US$30 Trillion? Is that why they are arming IRS agents?
Who's going to pay for all the welfare? Food, shelter, medicine, etc?
How are public sector workers like the police for example, going to feel when their pensions evaporate into nothing?
What will happen when the US Govn goes bankrupt?

Very interesting times indeed.

.