Real Estate and foreclosure thread

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Boomers Own Half of U.S. Wealth. So Why Are We Seeing More Homeless Boomers? | WSJ​

May 13, 2024 #Boomers #RealEstate #WSJ

Baby boomers have the highest median net worth by generation, holding about half of U.S. wealth—with much of it tied in real estate. And while many of these older boomers aren’t moving out of their homes, younger boomers reaching retirement are increasingly facing homelessness.

WSJ breaks down this trend and explains its impact on the housing market and the U.S. economy.


6:51

Chapters:
0:00 The baby boomer trend
0:32 Boomers aging in place
2:14 Boomers facing homelessness
4:34 Why there are these two extremes
 

2 sisters sued their insurer after it offered $5,000 to fix their wrecked home after a storm. They won $18 million.​

  • A jury awarded sisters $18 million in damages from an insurance company after their home was flooded.
  • The sisters sued American Reliable after being offered just $5,000 for repairs.
  • According to their attorney, the house was unliveable, with the heating system destroyed.
The home of two California sisters was badly flooded during a February 2019 rainstorm but when they filed a claim with their insurance company, American Reliable, they were offered just $5,000 for repairs.

More:

 

4 Takeaways From Our Homeowners Insurance Investigation​

As climate change gets worse, the immediate effects are becoming painfully obvious: More frequent and severe storms, wildfires, hurricanes and other types of extreme weather are wreaking havoc and pushing millions of Americans out of their homes each year.

Less obvious, but arguably even more important, are the consequences of those disasters, which are threatening the foundations of modern American life even for people who aren’t affected directly by extreme weather. One of the best and most recent examples is the insurance market. Insurers are spending more to fix damaged homes as disasters intensify. In response, they’re raising rates, squeezing homeowners already struggling with rising mortgage costs, and even abandoning some markets altogether. (Read our full story here.)

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Beverly Hills 90210 Mansions Lose Fire Coverage as Insurers Flee​

Peter Mac was closing the sale of a home in the Hollywood Hills, a four-bedroom, five-bath estate with an infinity pool perched above the lights of Los Angeles. The new house had been on the market for two years, with the price tumbling to $25.6 million from an original listing of $48 million.

But before the final sign-off in February, Mac presented the buyer with a fire insurance quote: $200,000 a year.

“She almost fell off her chair,” said Mac, a broker with The Agency. “She wanted to renegotiate.”

More:

 

Credit Card and Auto Loan DELINQUENCIES SURGING!​

May 19, 2024 #realestate #housingmarket #homeprices

Delinquencies in all forms of debt, are on the rise, and when it comes to credit card an auto loan debt, it is literally surging. At this rate, we will be at all time record highs in a year from now. You're also starting to see Mortgage debt delinquencies rise as well.


18:23

Articles Mentioned in the Video

- https://apple.news/Aqq13nKqBTjiaViPO9...
- https://apple.news/AZHheYCPVRVObZPf6U...
- https://apple.news/ASC0ntGUDTX6GLXF43...
- https://apple.news/AJwqcU6tRRCqgB3Z21...
 
New Home builders and getting worse and worser. Giving buyers the old slimy high pressure time share like sales. All focusing on the interest rate and forgetting the home.

 
Hey @Casey Jones - how true is this?

Montana’s real estate bonanza turns political as property taxes soar​

GLEN, Mont. — The pastoral expanse that Art Mangels has called home for 10 years comes with views of snowy peaks, banks on the trout-rich Big Hole River and acres of grasslands traversed by bears, moose and muskrats.

These days, it also comes with a property tax bill 35 percent higher than in 2022.

The spike is one effect of a western Montana pandemic real estate boom that has transformed Bozeman, two hours away, into what Mangels calls “Bozeangeles,” and is reverberating here in Beaverhead County, where cows far outnumber people. The ripples are threatening to cross from personal into political. Like other longtime residents, Mangels has soured on the state’s crimson-red legislature and governor.

“What’s happened is the real rich people have bought up a lot of acreage, a lot of big ranches,” the retired potato farmer, who now runs struggling fishing cabin rentals, said as he sat at the kitchen table in the cozy home he shares with his wife. “We’re farmers over 50 years, and then for 10 years here, we’ve contributed greatly to the economy. And now we’re getting penalized for it.”

Four years after covid sent a new class of remote workers in search of stunning scenery and cheaper housing across the Mountain West, residents are reeling from tax hikes driven by extraordinary growth in property values. While taxes remain relatively low, the increases have been jolting to homeowners already stressed by higher gas, grocery and insurance prices. The Montana Free Press reported that some counties here saw median increases of up to 46 percent.

More:

 
Yup.

It's real.

I'm living through it.

It affects everything - rent, cost of businesses (their rent or tax on property) and even who can live where, and under what circumstances.

Two years ago, when I thought I'd be homeless (but with an RV trailer, then) I was pricing out a long-term space rental. Prices blew me away - $800 a month was the market. But I heard some sad stories from potential neighbors, too.

There was a couple in a nice fifth-wheel trailer, in a crappy vacant lot in a rural crossroads area (but a business district) and they had a story. Kids had grown and moved out. They wanted to downsize, and a Californicator made an unbelievable offer for their McRanch, not far from there.

They accepted. They figured they could live in the trailer for a few months until they could find a condo in a good price range.

That was two years earlier; and the unbelievable price they were paid, now sounds like a bargain.

I myself passed on a townhouse condo outside incorporated limits, for $85k. It had everything, including an HOA. Nope, I'd wait for a better deal.

It's probably just as well, because even out in the county, taxes are exploding. I could have found myself forced to sell by the tax bill.
 
The second-order-effect of this is, non-professionals basically CANNOT AFFORD TO LIVE in these areas.

Bozeman, Missoula, Kalispell, Whitefish.

I'd seen this years ago, on a small scale - in Aspen, Colorado, 1990. Servers and ski-resort operators couldn't afford to live within driving distance. Aspen is remote - no interstates or major highways going in or out. Obviously the developers, and now the high-worth part-time residents, want it that way.

It's less wonderful for restaurant owners, who cannot afford to pay waiters and cooks wages that enable apartment-rental, and cannot even provide lodging. Land was and is so damn expensive.

Now it's the WHOLE WESTERN PART OF MONTANA. Even unappealing little towns, far from the glitter of tourism. I knew Libby, Montana, from 25 years ago, working for a contractor to the Burlington Northern railroad (now BNSF) and I knew prices were cheap there. And the inbreeding, common. That kind of village.

But, even there, prices have increased fivefold.
 
Same thing happened in Jacksonhole. The workers are bused in cause no one can afford to live in town.
 
The second-order-effect of this is, non-professionals basically CANNOT AFFORD TO LIVE in these areas.

Bozeman, Missoula, Kalispell, Whitefish.

I'd seen this years ago, on a small scale - in Aspen, Colorado, 1990. Servers and ski-resort operators couldn't afford to live within driving distance. Aspen is remote - no interstates or major highways going in or out. Obviously the developers, and now the high-worth part-time residents, want it that way.

It's less wonderful for restaurant owners, who cannot afford to pay waiters and cooks wages that enable apartment-rental, and cannot even provide lodging. Land was and is so damn expensive.

Now it's the WHOLE WESTERN PART OF MONTANA. Even unappealing little towns, far from the glitter of tourism. I knew Libby, Montana, from 25 years ago, working for a contractor to the Burlington Northern railroad (now BNSF) and I knew prices were cheap there. And the inbreeding, common. That kind of village.

But, even there, prices have increased fivefold.
I looked at few trailers. This one is in good shape, not far from me. https://www.facebook.com/marketplac...ghtspeed_banner&referralCode=messenger_banner

Broker I spoke to said there are also auctions in Springfield, MO and Fayetteville, Arkansas. Also the prices are better in the Fall.

I’m sitting on 14 acres. FWIW
 
While all recent posts reveal cracks in the overall of the RE market, the primary point remains you have to have a ready, willing and capable buyer for an offer to be extended. The other side of the ledger requires a seller willing to accept the timing, terms and conditions of said offer. What the national in the knows are saying is that the absence of transplants from higher cost to more moderate priced markets is stalling things on the buyer/offer side... the cross town or local move market can't handle the loss of a low interest rate to flip w/expenses to a dreamier home. The seller side is unfortunately filled with show me the money listings, with sellers unwilling to go back to repairs and concession models.

So the euphoria has been replaced with a level of indifference...

Note to all Hurricane area, especially beach type properties, if the hurricane season is a sliver of projected, an insurance primer I was forced to listen through states flatly we could see premiums rise 2 to 3 times current levels....
 
We haven't even had a major Hurricane hit in how long now? Feels like we've been in a hurricane with big tornados for the last 40 days and 40 nights.
 

SENIOR CITIZENS FORCED OUT OF RETIREMENT!​

May 26, 2024 #realestate #housingmarket #homeprices

I keep discovering different reasons why this economy is not nearly as great as we're being told. A big one right now is retirees that are being forced to go back to work because of a bad economy. If things are be great, then they would be able to stay home and enjoy their retirement.


19:30

Articles Mentioned in the Video

- https://apple.news/AakPJg0s5TgGfOB24Q...
- https://apple.news/AiRa2WrdPQIyDu95XN...
- https://apple.news/A4UkP3jyyQx2S9ldUM...
 
VD,
That is of course the problem across the board. bad data = bad conclusions. More precisely, you can drive the end point by skewing the core data because most do not have the skill, subject area expertise or range bound awareness to understand when the outcome just doesn't pass the feel test. As we both know everyone who has ever even driven past a home is now a RE expert... zillow is all knowing ... and whatever market data released that justifies the absurdity of my purchase is gospel...

There is a huge reckoning coming, loads of people are going to be pretty upset when the true reality of realty sets in..
 
I am not a salesman. I would be the worlds worst salesman. So I don't really get what in the hell people are thinking. I required a structural inspection, because ya know they had treated for termites and the LR floor was not quite a bouncy house. The realtor felt like neither the buyer or seller should have to pay. They got some yahoo contractor to add one 4x4 and concrete block. Lol. I'm sure the deal could have fallen apart over $200.

What really gets me are the sophisticated RE investors. Many of them with channels like the above. They see the collapse coming BUT everyone just thinks its going to be like the last (in this case 2008). I don't think that happens now. Real Estate is going to be an awful investment, probably for a generation (~20 years). When everyone thinks you are an idiot for buying a home then its time to move.
 
I am not a salesman. I would be the worlds worst salesman. So I don't really get what in the hell people are thinking. I required a structural inspection, because ya know they had treated for termites and the LR floor was not quite a bouncy house. The realtor felt like neither the buyer or seller should have to pay. They got some yahoo contractor to add one 4x4 and concrete block. Lol. I'm sure the deal could have fallen apart over $200.

What really gets me are the sophisticated RE investors. Many of them with channels like the above. They see the collapse coming BUT everyone just thinks its going to be like the last (in this case 2008). I don't think that happens now. Real Estate is going to be an awful investment, probably for a generation (~20 years). When everyone thinks you are an idiot for buying a home then its time to move.
Unfortunately, sophisticated RE investors often only understand one area to make money, more RE.... So their answer to every question always comes back to buy this RE then hold, flip that hold to another RE hold, rinse repeat. Have a number of 1031 exchange clients, they will do anything to avoid taxes, including eating huge monthly costs to avoid it..

New technologies around secrets revealed will be the next wave, we are going to lose enough people over the next five years, that there will be a surplus of housing. It's another reason why the dems are flooding the border, they know and understand how this is going to roll out.
 

Affordable housing to stay out of reach in major economies due to lack of supply​

BENGALURU, May 31 (Reuters) - Major economies grappling with housing crises will struggle to crank up the supply of affordable homes in coming years, according to a Reuters poll of property analysts who said more government intervention was needed to improve the situation.

House prices in most major property markets were forecast to rise over 4% this year thanks to supply lags and expectations that top central banks will cut rates soon. That is a relatively modest appreciation as property values are already very high.

An acute lack of starter homes, a perennial problem made worse during the COVID-19 pandemic, was not likely to be addressed anytime soon, according to experts polled May 9-30 across markets in the U.S., Canada, Britain, Germany, India, Australia and New Zealand.

That suggests most new homebuyers will have to stretch further or consider waiting even longer to save up enough of a deposit to own a home.

More:

 

Real Estate Agents Are RUNNING OUT OF MONEY!​

May 31, 2024 #realestate #housingmarket #homeprices

Ever since 2022, the number of active real estate agents has been consistently dropping, and since the National Association of Realtors knows this, they are now hiding the data so we are not fully aware of how many agents are in the business. But it's more important to look at why are they running out of money. It's because the housing market is so unaffordable that transaction volume is lowest that we have seen since the start of the pandemic.


21:35

Articles Mentioned in the Video

https://apple.news/AmM9VlkM4SoWYHY7AO...
https://apple.news/AGuTaYBGdTze5hNL-s...
https://wolfstreet.com/2024/05/23/cen...
https://apple.news/A4fDPzrnvSDKxqUvfP...
 
Ever since 2022, the number of active real estate agents has been consistently dropping, and since the National Association of Realtors knows this, they are now hiding the data so we are not fully aware of how many agents are in the business. But it's more important to look at why are they running out of money. It's because the housing market is so unaffordable that transaction volume is lowest that we have seen since the start of the pandemic.
I've watched his channel, time to time. He's not wrong but he brings little to the discussion, and he plods and hammers obvious points.

Why the market is shrinking should be obvious. It's priced out of reach of average buyers. It's become, like stawks, a market of a few whales, demanding ungodly sums for very mediocre houses.

Even allowing that some buyers could entertain huge purchase prices, seven-percent interest (which is historically normal) preclude their borrowing. And VERY few people have that much CASH laying around. Even liquidating a stawk portfolio, exposes the buyer to CapGains taxes, which are obscene, now.

So the market shrinks.

This is how markets work. Fewer buyers at the price, prices fall. Of course sellers resist, and we find out how many of them are just flippers who cannot accept they wound up holding the bag. Eventually they'll either sell at a loss or default, and these properties all become corporate-owned rentals.

Until taxes destroys the corporations holding them. And yes, that happens, too. Go down the list of major conglomerates of 50 years ago, and today. Entirely different list.

We're just at an end-phase of a bubble economy.

And real-estate agents, who are just people paid for their schmooze- and yakking-abilities, are the front-line footsoldiers. I have little concern for them...it takes little to get into that field and they're easily shaken out, too. Meantime, they made a few $20k commissions...hey, savor it, Karen.
 
We're just at an end-phase of a bubble economy.

And real-estate agents, who are just people paid for their schmooze- and yakking-abilities, are the front-line footsoldiers. I have little concern for them...it takes little to get into that field and they're easily shaken out, too. Meantime, they made a few $20k commissions...hey, savor it, Karen.
Dang cj, tell us how you really feel...
Can you imagine even for an instant what it is like working in and around todays customer base in any sort of retail environment? Seriously, look in the mirror and picture having maybe 500 to 1000 of those mugs to work with...! My database had 6000 names at its peak, my team lead had 22,000. Managing and assisting RE transactions is a 7 day, 80hr/week pain in the butt job, loads of driving, negotiating, problem solving and far too much hand holding and counseling. Yes, there was a load of part timers, who were not very good but sometimes scored a check. They are on the path to extinction as brokers pass costs back to agents, forcing non producers out of the field.

When I started they said it took 243 contacts to make a sale, 243 different people you had to have a conversation with for the cash register to ring. Average sales were under 250k at that point, so at 3% for the side commission was 7500 before splits and office charges. My net as a nubie was under 50% but let's say I did get that so 3750 divided by 243 equals a whopping 15 bucks per contact, showing, listing presentation. The average agent, across all the mls's closes 6.3 deals a year(2021 data, they no longer reveal results), so that got them a whopping 24k for a year but you had to make 1500 contacts or roughly 4 per day to get that...

So where do you draw the line? You have little concern as it takes little to get into RE, what about bagging groceries do you have little concern for those folks? People who work in gas stations? Night watchman? School bus drivers? House cleaners? Construction workers? Sign people on road crews? Day care workers?

So dear cj, just what is legitimate employment from your perspective...... and don't ever call me a Karen again!
 
Dang cj, tell us how you really feel...
Can you imagine even for an instant what it is like working in and around todays customer base in any sort of retail environment? Seriously, look in the mirror and picture having maybe 500 to 1000 of those mugs to work with...! My database had 6000 names at its peak, my team lead had 22,000. Managing and assisting RE transactions is a 7 day, 80hr/week pain in the butt job, loads of driving, negotiating, problem solving and far too much hand holding and counseling. Yes, there was a load of part timers, who were not very good but sometimes scored a check. They are on the path to extinction as brokers pass costs back to agents, forcing non producers out of the field.

When I started they said it took 243 contacts to make a sale, 243 different people you had to have a conversation with for the cash register to ring. Average sales were under 250k at that point, so at 3% for the side commission was 7500 before splits and office charges. My net as a nubie was under 50% but let's say I did get that so 3750 divided by 243 equals a whopping 15 bucks per contact, showing, listing presentation. The average agent, across all the mls's closes 6.3 deals a year(2021 data, they no longer reveal results), so that got them a whopping 24k for a year but you had to make 1500 contacts or roughly 4 per day to get that...

So where do you draw the line? You have little concern as it takes little to get into RE, what about bagging groceries do you have little concern for those folks? People who work in gas stations? Night watchman? School bus drivers? House cleaners? Construction workers? Sign people on road crews? Day care workers?

So dear cj, just what is legitimate employment from your perspective...... and don't ever call me a Karen again!

Some people would rather just live in the woods than deal with these folks. Money be damned.

It is the amount of hand holding and counseling that I didn't see and seems ridiculous. ANY buyer that needs that should be told to go home and grow up, you are NOT ready to buy a house. Of course, that doesn't really help the money go round.
 
So where do you draw the line? You have little concern as it takes little to get into RE, what about bagging groceries do you have little concern for those folks? People who work in gas stations? Night watchman? School bus drivers? House cleaners? Construction workers? Sign people on road crews? Day care workers?

So dear cj, just what is legitimate employment from your perspective...... and don't ever call me a Karen again!

Goes without saying, I'm generalizing. Yes, there are knowledgeable professionals in the field. I'm still negative on them because, who makes it seems to depend on shmooze-ability. I speak from personal contacts: One guy I worked a summer job with, three summers, went on to found a real-estate firm in the resort area where we had been, and is now the region's biggest agency.

I won't take away his ability to run a large-cash-flow business, manage 90 agents (most of them wombynz) and be there for every twisted Woke charity event, profess concern for things like COE-Vidd and "Health" and mouth platitudes about "Unprecedented Challenges." But success in that field requires all the personal qualities I DETEST.

Then there was my own buying and selling. Bought once, sold twice - my own home and my parents'. What I found was a subspecies of h.Sapiens that was buried FAR on the dark side of the Bell Curve. Not the actual agents I'd contracted with - both of them (two different urban areas) were blowsy and conspicuous, in a Jaguar and a Lexus, overdressed. The Ohio agent overcharged me in violation of State law. Later a class-action suit worked its way through. Of course the Class Actors, looters themselves, made it difficult for me to become part of the Class. We were probably talking less than $500, and it would have been endless repetitive filings, and digging for records...so I just threw the notices away.

What I got little of, was actual salesmanship. And showing the homes...was quite the learning experience.

I surmise that the only requirement to get a real estate sales license, is a pulse. Maybe a cheat sheet for the rote state examinations. I saw next to no salesmanship when other agents, going off multiple-listing services, came and "showed." I had to show. Mouselike, one of them hanged in the background.

I'm glad you have a going business. I'm glad you take pride in it. But know this: From what casual observations the public has, those esteemed qualities are not readily seen.
 
The problem is not so much the agents. Yes, probably 80% of them have no business doing it but ended up there because they hadn't been good at much else. The REAL problems are Lawyers (ie Satan in a real translation). They can't do much of anything, say anything, blah blah blah all because of all the rules and being scared of getting sued. And it was all designed this way.
 
Goes without saying, I'm generalizing.

I'm glad you have a going business. I'm glad you take pride in it. But know this: From what casual observations the public has, those esteemed qualities are not readily seen.
cj,
You are a pretty bright fellow, sometimes you can be totally dense and insensitive. Since to my knowledge you do not own or have the current ability to buy real property, probably best to focus on your 90+ onces and leave this topic to those with some skin in the game, but I'm just generalizing....

Perhaps you remember our conversation, where I told you how the majority of ex pat single males had trouble long term in Costa Rica, as the lack of committed relationship, little life structure and too much partying led to a lack of compassion towards and inability to relate to others?

It happens here in the states as well, sometimes in south carolina, sometimes bfe montana...
 

NBC2 Special Report: Florida's Insurance Crisis​

Jun 1, 2024

Property insurance has been the biggest issue to impact homeowners since the housing crash in 2008. With the 2024 hurricane season starting on June 1, instead of the same old hurricane show, we wanted to bring you a special on something that impacts you the most.


23:30
 
skin in the game

An interesting turn of phrase to remember. It is just a game. A game that many Humans play and like to use as a Scoreboard. It can be an exciting, challenging and rewarding one but also dangerous and potentially very detrimental game. Games can also end abruptly or have the rules changed at any time.

I for one do not have much skin in the game. But I can observe the game and see what is happening. I can also comment on the situation as much as I can comment on my favorite football teams moronic offensive coordinators. I will probably get some right and some wrong.
 
Not news, just something I came across. Reminds me of the "Sears houses."

 
Not news, just something I came across. Reminds me of the "Sears houses."



There are still plenty of them out there. Mostly older and not young Gen Z but some of them are still learning how. I just did a land purchase and the guy was buying a cabin on the river so that he could build a home on the land up a decent little hill. No kit for him, he had some logs and was planning on building a little log home all on his own.
 
That was probably entirely predictable. Taxes here at least are behind 1.5 years so I can tell you eveyone's are gonna jump a lot starting in August this year. The assessments were up 26% in town. A good agent could have given her the heads up.

Of course, it was good for business to ignore it and now get a shot at another commission. Good for them, bad for society.
 
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