ADVERTISEMENT

OT: Why the real estate market is not in a bubble: Q1 2023 update video added to OP

Better chart. Another thing that will help housing.
fredgraph.png
Yup. These are charts we posted back in june but for whatever reason people wanted to ignore.
 
Yup. These are charts we posted back in june but for whatever reason people wanted to ignore.
Although they might be measuring aggregate mortgage service vs aggregate income which reduces it given those with no mortgage. But still a big picture take away is aggregate balance sheets in pretty good shape.
 
Yup. These are charts we posted back in june but for whatever reason people wanted to ignore.

I mean...when you see the people wishing for a crash it's pretty clear why they're wishing for one.

It's pretty interesting to watch people root for the economy to collapse, but I'm sure more bizarre is yet to come.
 
  • Like
Reactions: 365Poster24Seven
Haha dont link gerli. Hes a youtuber and since 2011 has been calling for a collapse. Estimated he makes $250K/yr off his youtube page views. Hes called 13 of the last zero crashes and has refused any debates because he knows hes a grifter who prays on fools haha

With that said, cancel rate is true. People went under contract a year ago when rates were 2.875% and now cant qualify for that same price at 6.20%

Mortgage rates gonna touch the 5’s today. Markets not in a bubble and people gotta stop reaching for it to be 2008
Hate the player, not the game.
Merely incidental and coincidental find, but this person is from Seattle, replying to a tweet about tech laoyoffs in Seattle.



We Are Doomed Reaction GIF
 
Starting to see signs of market softness. One listing in my area started at 1.3775mm in 9/2022 is now 912.5k. Don’t know the whole story but they are chasing the market down. My neighbor’s house that’s similar sold 1.275mm in 5/2022.
 
Starting to see signs of market softness. One listing in my area started at 1.3775mm in 9/2022 is now 912.5k. Don’t know the whole story but they are chasing the market down. My neighbor’s house that’s similar sold 1.275mm in 5/2022.
Maybe they are desperate? Maybe they are @Plum Street , didn't hire a realtor and did a poor market evaluation.

House down street from me listed Nov15 and has not budged on price.

I've noticed an uptick in texts from purported buyers and realtors inquiring if one of our properties are for sale. I report every one of these as spammers.
 
Maybe they are desperate? Maybe they are @Plum Street , didn't hire a realtor and did a poor market evaluation.

House down street from me listed Nov15 and has not budged on price.

I've noticed an uptick in texts from purported buyers and realtors inquiring if one of our properties are for sale. I report every one of these as spammers.
Lol plum street asks advice here so plum street don’t make those mistakes
 
Maybe they are desperate? Maybe they are @Plum Street , didn't hire a realtor and did a poor market evaluation.

House down street from me listed Nov15 and has not budged on price.

I've noticed an uptick in texts from purported buyers and realtors inquiring if one of our properties are for sale. I report every one of these as spammers.
They hired a broker. They chase the market down meaning they were always priced above market. Now it’s got a stigma because it sat too long and the huge price reduction.
 
  • Like
Reactions: Scarlet1984
Lol plum street asks advice here so plum street don’t make those mistakes
Good point. Good to ask. Sellers almost always seem to suffer from inherent bias that their home is worth more than the actual worth.

Every situation is different even in cold markets. When we sold our last home, we got an insultingly low offer. We were not in a hurry to sell, and we were on vacation at the time. We told our realtor that we would respond when we got home from vacation.

The realtor was apologetic. A second offer came in 2 days later. A day or two after that, the original offerors offered over asking price.
 
Maybe they are desperate? Maybe they are @Plum Street , didn't hire a realtor and did a poor market evaluation.

House down street from me listed Nov15 and has not budged on price.

I've noticed an uptick in texts from purported buyers and realtors inquiring if one of our properties are for sale. I report every one of these as spammers.
Are you one of the people who text me back "Fvck you"? I send out 500 texts a week.
 
  • Haha
Reactions: Knight Shift
Starting to see signs of market softness. One listing in my area started at 1.3775mm in 9/2022 is now 912.5k. Don’t know the whole story but they are chasing the market down. My neighbor’s house that’s similar sold 1.275mm in 5/2022.
Address of both houses so I can take a look? Demand has picked up across the board nationwide to start the year and even moreso in NJ
 
Hate the player, not the game.
Merely incidental and coincidental find, but this person is from Seattle, replying to a tweet about tech laoyoffs in Seattle.



We Are Doomed Reaction GIF
Of course. Refi game is dead. Around 70% of mortgage holders have rates under 4%. Mortgage apps are also at 2008 levels right now. Only bizz theyre getting is purchases, past 2 years was the busiest theyll ever be as everyone and their mother refi’d
 
  • Like
Reactions: Knight Shift
Nah. My concern is that some of the texts might be robotexts and I will get on some list or something.
Do you ever get responses of interest in selling?
Yep. I think I made 30k in commissions last year off of text messages that converted to listings. I showed kyk that software and his head damn near exploded. I do it for listings and property management business. We got an 8 unit under management from the texts a few months ago. It's way easier for people than cold calls.
 
Yep. I think I made 30k in commissions last year off of text messages that converted to listings. I showed kyk that software and his head damn near exploded. I do it for listings and property management business. We got an 8 unit under management from the texts a few months ago. It's way easier for people than cold calls.
Just wait until someone files a TCPA lawsuit will cost you way more than $30K to defend…
 
Yep. I think I made 30k in commissions last year off of text messages that converted to listings. I showed kyk that software and his head damn near exploded. I do it for listings and property management business. We got an 8 unit under management from the texts a few months ago. It's way easier for people than cold calls.
Can attest to this. I use it now too. Its unreal
 
I’m in summit
So heres the data. The softness your seeing was anecdotal and an exception in Summit, not the norm.


Key data points for single family homes, this for November the most recent full month of data that is on hand (rates have come down a full point since then fyi)

- median sales price up 27.8% from November 2021
- 16 sales in November on average they went for 4.3% above ask
- .9 months supply of inventorh
 





🤷‍♂️🤷‍♂️🤷‍♂️ demographics + rate lock down thats the answer
 
Just too many people at peak household formation age and too little supply for all of them.


 


Will be interesting to see where rates go. If the market starts pricing in a march fed pause spreads should slowly come in between 10-year and mortgages. MBA has 5.2% rates projected by end of 2023 which implies ARM’s with a 4 handle. Fascinating market. Very unique
 
Lol Fed is not pausing rates. 3.4 unemployment and 500 K new jobs. They might have to go back to. 5 increases and one of the feds goals is to bring home affordable ability back into line.
 
Lol Fed is not pausing rates. 3.4 unemployment and 500 K new jobs. They might have to go back to. 5 increases and one of the feds goals is to bring home affordable ability back into line.
The Fed has nothing to do with home affordability. It has two jobs.....inflation and employment. Inflation is plummeting and essentially over and the job market is holding up nicely. Look for a formal pause at the March Fed meeting. Powell knows where the CPI math is heading. This is why he was so calm and dovish on Wed.
 
  • Like
Reactions: FastMJ
I really don’t believe that jobs report. My company has been the exception still hiring big time even when the market was slowing down over the last year. However we are slowing down over the last 4 months. With layoffs in progress and jobs slowing down, I bet this number get corrected like a few months ago.
 
@kyk1827 and @RUskoolie (or anyone else)- we are landlords for a couple of multifamily properties, and this is part of our investment mix for when we retire.

Something we got from a friend- have you ever heard of Pro One Seven Capital Partners? They are looking for investors at various ranges for a commercial retail property in Kansas. I've seen @kyk1827 mention real estate syndicates that pay a cashflow dividend in addition to capital appreciation.

Is that outfit a legit one? We prefer our approach of being close to (on top) of the action and being hands on landlords rather than passive. To us, it's fun, and it will give us more control and something to actively do in retirement. Maybe passive is not for us? Maybe we are a couple of simpletons and should stay in our lane? LOL.
 
@kyk1827 and @RUskoolie (or anyone else)- we are landlords for a couple of multifamily properties, and this is part of our investment mix for when we retire.

Something we got from a friend- have you ever heard of Pro One Seven Capital Partners? They are looking for investors at various ranges for a commercial retail property in Kansas. I've seen @kyk1827 mention real estate syndicates that pay a cashflow dividend in addition to capital appreciation.

Is that outfit a legit one? We prefer our approach of being close to (on top) of the action and being hands on landlords rather than passive. To us, it's fun, and it will give us more control and something to actively do in retirement. Maybe passive is not for us? Maybe we are a couple of simpletons and should stay in our lane? LOL.
Stay away.
 
ADVERTISEMENT
ADVERTISEMENT