- Jun 2, 2016
- 6,814
- 8,029
Think about it. If the market goes down due to opening of inventory then it forces prices down. If prices go down interest rates go up. If interest rates go beyond 4% the Federal government won't be able to handle their debt service....in other words they become insolvent. Same reason they jumped in a bought tons of corporate(junk bonds)...hello zombie companies is going to become hello zombie RE....This is disappointing. They're just kicking the can down the road. I was hoping the foreclosures (and evictions) would start by the fall (Sept 1, Oct 1 time frame). This just pushes it a few more months.
Seen it happen several times here in the N. Atlanta suburbs, including the house next door to us. (With the house next door, I personally thought the buyer was nuts on general principle, but at least in that case the former owner was the GC on the house when it was built and was/is a pretty anal guy. If there was something that needed fixing, then the previous owner didn't know about it.)
During the last RE bubble bust, I went to a conference about what types of things created the bubble. I sh1t you not, there was a home in Atlanta that was sold multiple times without being seen. the kicker is that it was a façade. Literally three walls....a veneer. It had been appraised and everything. Sold like 4 times. No buyer ever visited the home. Craziest thing I ever heard about. This market has nothing on crazy. Stupid, yes, but crazy, there was crazy sh1t back then.
This is a good article on the current housing market, and BlackRock - who they call "the boogeyman" (I tend to agree, going by the description in the article):
The Housing Crunch
But this outrage is misdirected. If we have any chance of fixing the completely messed-up, unaffordable U.S. housing market, we should direct our ire toward real culprits rather than boogeymen.
The U.S. has roughly 140 million housing units, a broad category that includes mansions, tiny townhouses, and apartments of all sizes. Of those 140 million units, about 80 million are stand-alone single-family homes. Of those 80 million, about 15 million are rental properties. Of those 15 million single-family rentals, institutional investors own about 300,000; most of the rest are owned by individual landlords. Of that 300,000, BlackRock—largely through its investment in the real-estate rental company Invitation Homes—owns about 80,000 . . .
Megacorps such as BlackRock, then, are not removing a large share of the market from individual ownership. Rental-home companies own less than half of one percent of all housing, even in states such as Texas, where they were actively buying up foreclosed properties after the Great Recession. Their recent buying has been small compared with the overall market.
During the last RE bubble bust, I went to a conference about what types of things created the bubble. I sh1t you not, there was a home in Atlanta that was sold multiple times without being seen. the kicker is that it was a façade. Literally three walls....a veneer. It had been appraised and everything. Sold like 4 times. No buyer ever visited the home. Craziest thing I ever heard about. This market has nothing on crazy. Stupid, yes, but crazy, there was crazy sh1t back then.
He started signing contracts on pre-construction houses, then sold the contracts for $20k-$50k more than he got the contract for to other buyers (who actually wanted to live in the house). He did this at least a dozen times before they started cracking down on the practice.
The best part is as my buddy from Ohio, Congressman Jim Jordan pointed out to Jerome Powell yesterday during testimony is that there are currently 9 million jobs available in the U.S.....yep....time for more midnight gardening....More government interference into the inevitable!
U.S. officials expected to extend eviction moratorium by 30 days as fears about renters mount
Federal officials are expected to extend a national moratorium on evictions by 30 days, although no final decision has been made, according to two people familiar with the matter.
The decision will be made by the Centers for Disease Control and Prevention, which first implemented the moratorium. The eviction moratorium was set to expire June 30.
Biden administration officials are expected to make clear that they see this extension as probably the last one, according to the two people, who spoke on the condition of anonymity to discuss private deliberations. The White House is ramping up efforts aimed at preventing evictions, in particular by accelerating the disbursal of federal aid to millions of renters across the country. These efforts are being led in part by Gene Sperling, who was brought into the administration to oversee implementation of the administration’s $1.9 trillion relief package, which included tens of billions in rental aid.
More government interference into the inevitable!
U.S. officials expected to extend eviction moratorium by 30 days as fears about renters mount
Federal officials are expected to extend a national moratorium on evictions by 30 days, although no final decision has been made, according to two people familiar with the matter.
The decision will be made by the Centers for Disease Control and Prevention, which first implemented the moratorium. The eviction moratorium was set to expire June 30.
Biden administration officials are expected to make clear that they see this extension as probably the last one, according to the two people, who spoke on the condition of anonymity to discuss private deliberations. The White House is ramping up efforts aimed at preventing evictions, in particular by accelerating the disbursal of federal aid to millions of renters across the country. These efforts are being led in part by Gene Sperling, who was brought into the administration to oversee implementation of the administration’s $1.9 trillion relief package, which included tens of billions in rental aid.
The eviction moratorium is killing small landlords,’ says one, as ban is extended another month
The one-month extension of the Centers for Disease Control and Prevention’s eviction moratorium was welcome news for tenants but another nail in the coffin for some struggling landlords.
Groups representing landlords had been lobbying hard to end the moratorium and now warn even another month will put some of those landlords out of business.
“Each passing month further escalates the risk of losing an ever-increasing amount of rental housing, ultimately jeopardizing the availability of safe, sustainable and affordable housing for all Americans,” wrote Bob Pinnegar, CEO of the National Apartment Association, in a release. “Flawed eviction moratoriums leave renters with insurmountable debt and housing providers holding the bag as our nation’s housing affordability crisis spirals into a housing affordability disaster.”
The majority of the nation’s landlords are individual investors. They own about 23 million units in 17 million properties, according to the U.S. Census. More than 6 million renter households are behind on rent, also according to the Census. Landlords have next to no recourse.
Howard Simon owns a small building in Massachusetts with three rental units. He hasn’t received the rent on one of them since last October and is out about $7,000 so far.
“I have mortgages, I have expenses for repairs to that particular building, I’m losing one-third of the rent just because of this,” said Simon. “And you know the other tenants who are occupying the other two units, they’re trying their hardest and doing their best
Simon has contacted the delinquent tenants but said they will not respond, nor will they apply for the aid available to them. While about $34 billion in federal assistance has been distributed to states for back rent and utilities, getting that cash to landlords has been an onerous process because the tenant must be involved.
“In my particular instance the tenant is not cooperating with even completing the application. I’m just a small landlord, and I’m not a big corporation like many of the other large rental organizations, so although the funding is very helpful, if the tenant doesn’t cooperate everything falls apart,” said Simon.
Before the extension of the eviction ban, there would have been about 473,000 eviction filings in July and August, according to calculations by Zillow from Census estimates. That is down by about 100,000 from what was forecast last March. The improvement is due to the federal aid reaching some renters as well as an overall improvement in the economy and employment. The numbers are likely to decline further with an extra month of breathing room.
Still, landlords say they are angry at the way the federal aid, $46 billion from two different relief packages, has been both allocated and distributed.
“If the rental assistance bureaucracy is a monster, then the local governments that created them are Dr. Frankenstein,” said Dean Hunter, CEO of the Small Multifamily Owners Association and a landlord himself. “They’ve required the states and the cities to create entire new infrastructures to get the money out, instead of using the existing community based organizations and safety nets.”
Hunter contends that small landlords are being treated like large corporations but instead should have been included in the small business relief package, the Paycheck Protection Program.
“This is the most excessively and overly broad taking of private property in my lifetime,” said Hunter. “The eviction moratorium is killing small landlords, not the pandemic.
After extending the moratorium, the Biden administration outlined measures it would take to further assist both renters and landlords. It said the U.S. Treasury would clarify “how grantees may achieve economies of scale by obtaining information in bulk from utility providers and landlords with multiple units to help speed the determination of household eligibility and to bundle, in a single payment, approved amounts for the benefit of multiple eligible tenants.”
That, and other efforts from state and local governments, should help some, but if landlords don’t get the relief they need, there will be ramifications for the wider housing market.
“What there is going to be a tsunami of is a loss of naturally occurring, affordable housing, because small landlords are going to sell their properties,” said Hunter.
I suspect it is another attempt to crush part of the middle class. Think about it for a second, along with service and hospitality, small businesses took the major hit from covid. Big businesses really haven't missed much of a beat and some have gotten stronger in their part of the market.Isn’t this all by design, as part of the Great Reset”, to eliminate ownership of private property and business by the middle class, so that only big corporations and the elites own anything?
We're from the government, and we're here to help.
I'd just blame it on the postal service not wanting to deliver mail in bad neighborhoods...seems the minorities aren't receiving their bills....This is both financial and political, so I'm going to plug it here (Maxine Waters is involved in this, so of course.....credit scores are "racist"):
House Democrats propose government-run credit reporting system
“Although credit scores never formally take race into account, they draw on data about personal borrowing and payment history that is shaped by generations of discriminatory public policies and corporate practices that limit access to wealth for Black and Latinx families,” Amy Traub, associate director of policy and research at Demos, testified at the hearing.
In a 2020 survey of 5,000 people by Credit Sesame, 54% of Black Americans and 41% of Hispanic Americans reported having a credit score below 640, while 37% of white Americans and 18% of Asian Americans reported the same.