Strange Times In A Strange Sector: The US Housing Market Goes “Brutal”

By: John Rubino Published: Friday, 6 April 2018

Real estate tends to ride an emotional rollercoaster, as anyone who made it through the 2000s can attest. But in some ways the current market is even stranger than those of past cycles. Consider:

Home buying market so brutal, some home buyers make offer sight unseen

(CNBC) – This spring home-buying season should be a coming-out party for Millennials, many of whom are finally ready to make a purchase after hunkering down for years in their parents’ basements or expensive apartments.
The only problem: Much of the food at the party is gone, and what’s left is priced like caviar.

Although solid job and income growth is emboldening many prospective home buyers, record low housing supplies are driving up prices and curbing sales, especially for Millennials looking to buy starter homes.
“For home buyers, this is shaping up to be one of the most difficult years in recent memory,” says Ralph McLaughlin, chief economist of Veritas Urbis Economics, which studies the housing market.

For sellers, it will be a standout spring that brings big profits, unless those sellers themselves are looking to buy a larger home in the same metro area. “It’s going to have the feel of a hot market,” marked by multiple offers and bidding wars, says Lawrence Yun, chief economist of the National Association of Realtors (NAR).
Already, house hunters are waiving inspections, making offers without even seeing homes and bidding well above asking price. Yet Yun predicts sales will be flat compared to spring 2017 because of the skimpy supplies and reduced affordability for many buyers.

“This year’s (spring) buyers may be competing against some of those buyers who have been unsuccessful during the past few months,” Zillow Senior Economist Aaron Terrazas says. “Increasingly, the traditional seasonal boundaries around home shopping season … are becoming less pronounced” as the fierce competition forces buyers to lengthen their searches.

Some of the hottest markets in recent years — such as Seattle, Las Vegas and San Jose — have continued to post double-digit annual price increases. Now, they’ve been joined by cities such as Nashville, Salt Lake City and Kansas City.

t wasn’t supposed to be like this. Starting a few years ago, retiring Baby Boomers were supposed to downsize en masse, flooding the market with houses bought in the 1970s, 80s and 90s and producing a buyer’s paradise full of 70-year-old sellers on their way to Florida and eager to entertain any reasonable (or less than reasonable) offer. Based purely on demographics, today’s media should be full of stories about cocky Millennial buyers who feel no need to pull the trigger.

And even without a tsunami of downsizing retirees, you’d think soaring prices would convince more homeowners to take their profits to avoid being roundtripped as many were in Great Recession. But no. Boomers are retiring, home prices are soaring, buyers are getting desperate…and hardly anyone is willing to sell.
To find out how things got so weird so fast, I checked with Peter Miller, author of The Common-Sense Mortgage and regular contributor to the Mortgage Reports website. Here’s his take:

If you’ve been reading industry news releases the inventory shortage is a huge concern.
“Total housing inventory at the end of February rose 4.6 percent to 1.59 million existing homes available for sale, but is still 8.1 percent lower than a year ago (1.73 million) and has fallen year-over-year for 33 consecutive months. Unsold inventory is at a 3.4-month supply at the current sales pace (3.8 months a year ago).”
There are number of reasons for the inventory shortage.

First, home prices have been going up consistently in most markets for the past six years. This may sound encouraging but it also means that today’s seller will be tomorrow’s buyer, someone competing for homes which may require a bigger mortgage and steeper monthly payments.

Second, there are transaction costs associated with, first, the sale of a property and, second, the purchase of a replacement residence.

Third, millions of owners have fixed-rate mortgage financing in place at 4% or less. If they move the rate they pay goes up.

Fourth, for people in the upper brackets and for individuals who live in high-cost, high-tax areas it may be difficult to justify the sale of a current residence given tax reform.
Fifth, new construction is insufficient to meet demand. Multifamily construction starts were down 10 percent in 2017.

Sixth, many people no longer have the income certainty they once had. The typical work week is no longer 40 hours. Artificial intelligence, machine learning, robotics, outsourcing, downsizing, and rightsizing are threatening the hours and employment of both blue-collar and white-collar workers alike. We see more and more examples of flexible work schedules as opposed to set working hours known in advance. The result is that increasing numbers of workers earn different amounts each month. I suspect many sellers wonder if they can still qualify for the mortgage they got a few years ago.

Okay, that makes sense. Higher mortgage rates raise the cost of moving, even if it’s to a smaller place. And work isn’t what it used to be, which means mortgages aren’t the sure thing they once were.
This shrinks the transaction pipeline but raises the average amount of leverage — which adds yet another point of fragility for the next downturn.

??? David Seaman FaceBook Live: Sealed Indictments NOW Unsealed Takedown Imminent It’s Over???

JoshTolley

Published on Apr 4, 2018

Trump is about to make arrests according to Jerome Corsi. Treason charges and military tribunals may happen THIS YEAR! Will Hillary end up in Gitmo? Will Obama be sent to Leavenworth?

Robert Kiyosaki – The Next Financial Crash Will be Like an “Avalanche”- It’s Time To Be Alert! Prepare For The Imminent Economic Collapse

By Amber William

The economic crisis is here. The second financial bubble is going to soon burst, and there’s nothing anyone can do about it. The Federal Reserve has set up the American economy for financial collapse for printing trillions of dollars back in 2008 and 2009.

The Federal Reserve’s policies of printing trillions of dollars back in ’08-09 have locked into place a serious financial crisis at some point in our future. Going so far as to intimate the financial collapse and market crash will occur at least some time in the next two years, “It’s unavoidable, and even Donald Trump can’t stop it.
Top economists predict that within the next 18-24 months, the imminent economic collapse will happen. The Federal Reserve has set up the American economy for financial collapse and market crash for printing trillions of dollars back in 2008 and 2009.

The Federal Reserve’s policies of printing trillions of dollars back in ’08-09 have locked into place a serious financial crisis….Robert Kiyosaki – The Next Financial Crash Will be Like an “Avalanche”

I have been studying markets and long term macroeconomic trends as both a hobby and a work related venture for quite a few years now. As an employee of the railroad industry, our traffic levels are heavily affected by market downturns. I can personally describe the effects of the 2008 market crash when traffic levels fell drastically enough to put me out of work. Whenever a market downturn begins, the railroads are one of the first industries to suffer, and the effects last longer and hit harder than those seen in the consumer goods industries such as retail. Therefore, I will cite the railroad and our traffic patterns in answering your question.

What will be the cause of the next financial crash? Well, that’s simple. The cause hasn’t changed substantially since 1913 when the Federal Reserve System came into existence and fundamentally changed the American economy from a mostly free market system to a mixed economy in which members of the board of governors exercised substantial control over the money supply. Each and every meltdown from the Great Depression of the 1930s to the housing crisis in 2008 can ultimately be laid at the foot of the Federal Reserve System and its economic policy of the time. Each crash had a unique catalyst which the history books have reflected as the “cause” but the Federal Reserve and its monetary policy have always created the market conditions which start the catalyst moving.

In an attempt to keep this response short and concise, I wont dig too deep into the history of the Federal Reserve or why it was created. Just know that the Fed was created in 1913 under questionable legislative and constitutional conditions. The Fed serves as a lender of last resort, allowing the federal government to create literally endless sums of money, passing the inflation on to the taxpayer as a hidden and “stealth” inflation tax. The Fed regulates the interest rates throughout the broader economy by adjusting the “discount rate,” or the fund rate that the federal government pays interest back to the Fed. When the Fed lowers the fund rate, the result is ultimately lower interest rates on the consumers. When the Fed raises the fund rate, the opposite is the result. See in the following table the historical Fed interest rate policy from the 1970s to the present.
The impending economic collapse is hidden from most. People only see a rising stock market, not the negative underlying factors that will cause the whole system to crash.

The only other times in our history when stock prices have been this high relative to earnings, a horrifying stock market crash and economic collapse has always followed. Will things be different for us this time? We shall see, but without a doubt this is what a pre-crash market looks like. This current bubble has been based on irrational euphoria that has been fueled by relentless central bank intervention, but now global central banks are removing the artificial life support in unison. Meanwhile, the real economy continues to stumble along very unevenly. This is the longest that the U.S. has ever gone without a year in which the economy grew by at least 3 percent, and many believe that the next recession is very close and economic collapse imminent. Stock prices cannot stay completely disconnected from economic reality forever, and once the bubble bursts the pain is going to be unlike anything that we have ever seen before.

If you think that these ridiculously absurd stock prices are sustainable, there is something that I would like for you to consider. The only times in our history when the cyclically-adjusted return on stocks has been lower, a nightmarish economic collapse and stock market crash happened soon thereafter… There are more market crash inducing bubbles waiting to burst than ever before in the history of US markets. The most obvious is the artificial manipulation of the stock market via quantitative easing. QE has manipulated the US stock market higher since 2009.

But now, central banks have painted themselves into a corner. Bubbles are artificially created and cannot be gently deflated. They eventually burst. A stock market crash is the inevitable result.

Fiat Currency Has Led To The Collapse Of Almost Every Economy, The Dollar Is Next

X22Report

Published on Apr 3, 2018

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Report date: 04.03.2018

Trump threatens to dump NAFTA again, the deal has gone no where and it is time to get rid of the globalist trade rules. NY Fed introduces a LIBOR replacement SOFR, basically exchanging one manipulated system for another.Iran is finalizing the paper work to enter the Eurasian Economic Union. Almost all fiat systems end up in failure. There has been a long history of the central bank fiat system and each one has failed with hyperinflation as the last signal

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Intro Video Music: YouTube Free Music: Cataclysmic Molten Core by Jingle Punks

Intro Music: YouTube Free Music: Warrior Strife by Jingle Punks

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Use the information found in these videos as a starting point for conducting your own research and conduct your own due diligence before making any significant investing decisions.

The Move To Remove The Central Bank And Reset The Economic System Is A Go – Episode 1534a

X22Report

Published on Apr 2, 2018

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Report date: 04.02.2018

Subprime auto market has run its course, the traffic to the dealerships is now drying up. Homeowners are tapping their equity in their home refis, we are now seeing the same pattern as we saw back in 2008. The first quarter of this year was a disaster, the US had to borrow an extreme amount just to make the economy look half decent. Wyoming is in the process of passing a law that will allow gold to be counted as money, the same goes for cryptocurrency. There is now a bill in government that the dollar should be pegged to gold.

All source links to the report can be found on the x22report.com site.

Most of artwork that are included with these videos have been created by X22 Report and they are used as a representation of the subject matter. The representative artwork included with these videos shall not be construed as the actual events that are taking place.

Intro Video Music: YouTube Free Music: Cataclysmic Molten Core by Jingle Punks

Intro Music: YouTube Free Music: Warrior Strife by Jingle Punks

Fair Use Notice: This video contains some copyrighted material whose use has not been authorized by the copyright owners. We believe that this not-for-profit, educational, and/or criticism or commentary use on the Web constitutes a fair use of the copyrighted material (as provided for in section 107 of the US Copyright Law. If you wish to use this copyrighted material for purposes that go beyond fair use, you must obtain permission from the copyright owner. Fair Use notwithstanding we will immediately comply with any copyright owner who wants their material removed or modified, wants us to link to their web site, or wants us to add their photo.

The X22 Report is "one man's opinion". Anything that is said on the report is either opinion, criticism, information or commentary, If making any type of investment or legal decision it would be wise to contact or consult a professional before making that decision.

Use the information found in these videos as a starting point for conducting your own research and conduct your own due diligence before making any significant investing decisions.