The Price of Homes

Here’s a good article on corporations buying homes and how it messes with the housing market.

Image

Zillow was buying up homes and flipping them, making them more expensive for first-time homebuyers. However they have reported that they are going to stop doing this because of lost profits,” a backlog in renovations and other operations due to labor and supply constraints”. Other companies do this too. Redfin, for example. They are called i buyers. These companies compete with regular homebuyers despite a shortage of properties on the market.

This is why you see first-time homeowners struggling to find a home because they are being outbid with CASH from companies like this who then flip these homes and resell them or even worse rent them. These companies make extreme profits from house flipping.

Image

Corporations Like Blackrock Are Buying Up Thousands of Houses, Pricing Americans Out of the Market.

I have seen this in the remote corner of Arizona where I live and if it’s happening here, it’s happening everywhere.

 

Have you Noticed?

“The Internet” is incapable of eliminating child pornography, one of the root causes for child trafficking, but can censor, block, and delete all “conspiracy theories” and facts. They contact trace those who’ve been in contact but covid… and it’s just too difficult to find those who steal and molest children using the Internet as a vehicle.

 

Inflation

(Breitbart) On Wednesday, House Minority Leader Kevin McCarthy (R-CA) reacted to Federal Reserve Chair Jerome Powell saying inflation was going on in the United States prior to Russian President Vladimir Putin’s invasion and destruction of Ukraine.

McCarthy, on Fox News Channel’s “The Faulkner Focus,” argued inflation “continues to get worse because of the Democratic policy” in which “they attacked” energy independence.

“It continues to get worse because of the Democratic policy. You had the Fed chair just now admit it is not about Putin. It started when the Democrats had one-party rule in Washington,” McCarthy emphasized. “The first thing they did was spend $2 trillion. They … had the government pay people not to work, raising the price of what it costs for small businesses to survive.

Then you watched their action about crime and others building within the streets. You watched what they did when we were energy independent. They attacked. You know, the strength of the country is not just your military — it is whether you have an economy that’s strong. And going after energy actually made us weaker in the process around the world but added to inflation because the thing people don’t quite understand — oil doesn’t just go into your car. It goes into your clothing, into the purchasing of your phone, it goes into the print on a box. So, it raises the prices on everyone.”

An Associated Press review finds that state and local governments have spent nearly $1 billion worth of federal coronavirus aid on projects that have little to do with combating the pandemic.

Scamdemic…

 

The Food Crisis

Ukraine & Russia are both top grain exporters. Closing Ukrainian ports & sanctioning of Russian trade are causing severe market disruption. Governments are now scrambling to secure new suppliers, but market volatility means not everyone is willing to sell.

And there is fuel.

 

The Status of the Fronts

Four weeks after the invasion launched by Moscow, several cities are under shelling, while the fronts are almost frozen. The railways leading into Ukraine have been destroyed for the most part and that’s how the Russian army moves logistics.

Rail gauges around the world.

19 COMMENTS

  1. Definitely agree on housing prices. They are going crazy regardless of where you live. The bubble will be epic when it bursts.

    Between food shortages, fuel shortages, and inflation it is going to be an ugly couple of years. I do not see us digging out of this quickly regardless of how Republicans do in the mid-terms.

    Why is it that when a conservative government is in power and they try to institute a policy it is tied up in courts seemingly forever but when a liberal government is in power their policies sail through unhindered? Examples include the Pipeline, the border wall, EPA regulations, federal spending etc.

  2. I wonder what it is about Estonia that allows them to have such low energy dependence. Or is it that nothing goes on there and they just huddle inside near-freezing buildings, hence minimal energy use? That seems improbable. If nothing else, the hordes of Finns who take the ferry over to buy cheap alcohol would not put up with it.

    Nordic migratory boozing patterns are interesting. As I understand it, the Finns go to Estonia to buy cheap booze by the case, which they then drag home on little handcarts. The Norwegians and Swedes go to Denmark to buy (relatively) cheap(er) booze. The Danes go to Germany for what THEY consider cheap booze.

      • The Dilbert cartoons featured “Estonians”. They gave them a slightly different name, “Elbonians” to protect the innocent, I guess.

        This from Scott Adams: People from a fictional Fourth World nation, used as a parody of outsourcing. Their culture is radically different from Western culture, and their patriarchy often annoys Alice. Their country is covered in waist-deep mud which they keep wet using expensive bottled water, as revealed in one strip. The main vehicle of their national airline is essentially a giant slingshot. At one point, the French declared war on Elbonia because they tried to launch a satellite with the town slingshot, thereby flattening the French Embassy before Dilbert can intercede; Elbonia ultimately benefited from the war, because the sale of pieces of French bombs became a significant part of the national income. At another time Dogbert lobbied Switzerland to “liberate” Elbonia’s oil. Dogbert once became the king of Elbonia, but Dilbert convinced him to abdicate. Elbonia was first described as an Eastern European nation that had recently overthrown communist rule. Scott Adams stated in Seven Years of Highly Defective People that Elbonia was created to allow for a foreign nation inoffensive to people outside the United States, and is based on the average American’s perception of any country without cable television.

    • Heh, something *finally* that my Cold War experience has some slight bearing on. We were told that wasn’t an accident, the Russians/Soviets had a different gauge on purpose for this reason. Russia and the former USSR is the only dark green country I see on that map, after all. Any invading Germans would have to change trains in Poland/Ukraine and there’d be time to destroy those railheads if the Germans or whoever decided to come east again. NATO wasn’t stupid and those places were probably not going to last more than a day or two if the Soviets had decided to invade westward.

  3. Housing
    People have just so much income, even with two or more in a residence working. When the vulture capitalists start making the monthly strokes the system collapses. Looking back a few years, the smart money said it wouldn’t happen in places like Detroit.

    Used car prices will remain high only so long as lenders will finance purchases. Circa 2002, people with a 700+ FICA Score weren’t getting financed with less than 45-50% down. I had 35 3/4 ton and one tone pickups scattered around several used truck lots. I considered myself fortunate to get rid of all at my cost, forget profit.

    • I know a real estate agent here in Metro Detroit who was acting as an agent for property purchasers in China. They had a formulaic spreadsheet to calculate what properties they would buy. They bought a lot. He pointed out a calculation error in their spreadsheet which actually encouraged them to buy more. They visited once and all took their pictures with him.

  4. Housing prices-
    I watched this video last night, she was doing the research on the corporations buying all the houses with cash. She is a realtor in the Tampa area.

    https://www.youtube.com/watch?v=AiO1J_20WUA&t=296s

    I guess “60 Minutes” did a piece on the cash buying too, this was what she was talking to.

    Anyway her research showed around (I have really crappy internet here and have to pull this out of my memory which isn’t much better than this internet) 21% of the “affordable” homes ($300k-$450k, ya I think that amount is nuts) in 2021 were bought with cash.
    That means that 79% of the homes were bought the normal way.

    FWIW I looked at the town she studied on Zillow, not much between $200k and $300k for sale at all.

  5. Hello LL, Not sure how Ukraine war ends. Suspect Putin is wondering too. Can’t walk away and Putin will not listen to the UN, NATO or Biden. He could listen to China if it set some agreeable terms and “ordered” Russia to cease and desist. China gets to be a great peacemaker and saves a friend. Maybe not now but eventually. Don’t know how you could get a commission on it though might be useful for your friends in China to consider. Just a thought.

    • I reckon it’s going to continue until Ukraine at least consider the basic concessions Russia were demanding before they invaded. Realistically, the western world have made it clear it’s in for a penny in for a pound. Taking the whole of Ukraine is a sunk cost so to speak.

      What I do find frustrating is people don’t seem to realise this isn’t the US invading Iraq after flattening everything with air strikes. This is more like the sort of fighting we haven’t seen in 50+ years, well trained near peer adversaries, with significant fortifications. The contact line in the Donbass has fortifications dating back to the second world war for example.

      From what I can tell, the initial moves were fast armored punches to seize key nodes. It was more important to get there and grab them, than it was to avoid casualties or material losses. Possibly the intent was to get a quick victory and surrender/negotiated settlement.

      Now I reckon it’s more like the second half of WW2, concentrating on trapping and reducing forces. My guess is once the coast is cleared they will push north from there. The DPR/LNR forces will continue to pin Ukrainian forces, and the Russians will close and reduce that “cauldron”. Kiev I don’t reckon is a priority, the forces there will secure it but not make any serious efforts. The main difference is Russian appear to be taking care to minimise civilian casualties.

      The wildcard I see is Poland and Hungary. Maybe they move in with “peacekeeping” forces and secure the west of Ukraine, possibly reintegrating the areas with their significant ethnic minorities.

      But take my view with a grain of salt. I was never an orifacer, or had any real training in strategy etc. Just a digger. End of the day, none of us really have idea what the objectives are, beyond what’s been publicly stated. I’d just like the waste of it all to stop.

  6. stagflation is about to hit all the main sectors. nobody can afford the ridiculous retail prices, and the corps that do buy will wind up holding the bag when the bubble bursts like ’08. at current prices i can’t move, nor build, nor buy a new/used truck. sure, all that i have is worth a fortune, but i can’t replace it even with fixer-uppers and come out when lumber is over 100% higher than last summer. luckily i bought all the material for my barn on the downturn and saved a ton. now the tax man is coming to stick it to me this summer. can’t win.

    • I was talking to one of my sons today and he had been in construction with his own company up until ’08. He was talking about getting into it again.
      I reminded him of how the crash closed his business. He was glad I reminded him.
      He started a couple other businesses at the time and did so well, he forgot about the crash part.

  7. Zillow took it on the chin on several homes here in FoCo. They wound up selling them at a loss. Prices have significantly increased in the 4+ years we’ve been here, and even with the increased valuation of our former little house in Long Beach ($812k? You’re joking!), it would be a tough call to move here in 2022.

    TPTB, or who’s pulling the strings behind Slow Brandon and the Ho, completely fail in regards to understanding how things are interconnected in the Real World, aka, “The Ripple Effect”. They’re screwing around with things that can hurt them, and are too stupid to realize it.

  8. Regulators are intentionally allowing startup corporate assholes to game the housing market,
    because Our Masters hate suburbs, the middle class, and wealth that they don’t personally control.

    Letting some buncha business school C students wreck housing serves their goals, for free.

    -Kle.

  9. “Wallstreet guts Mainstreet” for their gain. Same story, different year.

    The Big Short & Margin Call – scammers in nice suits and fancy offices. Zillow is another greedy snake-oil group who created an avenue to thieve. But we should all live in tenements…like those dour “Russian!” buildings with no heat. Keeps the masses under the thumb trying to survive.

LEAVE A REPLY

Please enter your comment!
Please enter your name here