Real Estate News and Auction

RE/MAX, Anywhere pay eight-figure sums to settle class action suit, NAR is embroiled in scandal and Douglas Elliman faces housing discrimination claims

On "Unsellable Houses," Leslie Davis and Lyndsay Lamb say there's one type of home they're always confident they can sell: a starter home.

Gross profit on a typical house flip increased to $66,500 in the second quarter from $56,250 in the first quarter, according to ATTOM.

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The relationship between unemployment and mortgage rates is complex and influenced by various economic factors. Here's an overview of how unemployment can affect mortgage rates:

1. Inverse Relationship: Unemployment and mortgage rates often have an inverse relationship. When unemployment rates rise, it can lead to lower mortgage rates. This is because central banks, like the Federal Reserve, may lower interest rates to stimulate economic activity during times of high unemployment. Lower interest rates can make mortgages more affordable and attractive to borrowers.

   • Source: How Does the Federal Reserve Affect Mortgage Rates?

2. Demand for Home Loans: High unemployment rates can lead to decreased demand for home loans. When fewer people are employed or have job security concerns, they are less likely to take on new mortgages. This decreased demand can put downward pressure on mortgage interest rates as lenders compete to attract borrowers.

   • Source: The Most Important Factors Affecting Mortgage Rates

3. Economic Data Impact: Economic data related to employment, such as job gains or losses, can impact mortgage rates. Positive job gains may lead to expectations of higher economic growth, which can result in higher mortgage rates.

   • Source: Job gains' relationship to mortgages – it's complicated

4. Market Sentiment: Unemployment data can also influence market sentiment. If there is concern about a weakening job market and its potential impact on the overall economy, investors may seek the safety of bonds, which can lead to lower yields and, in turn, lower mortgage rates.

   • Source: Mortgage Rates vs. Unemployment: Keep a Close Eye on ...

In summary, there is an observable relationship between unemployment and mortgage rates, with high unemployment often leading to lower mortgage rates. However, it's important to note that this relationship is just one of many factors influencing mortgage rates, which can also be influenced by inflation, government policies, and global economic conditions.

 

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Campbell Harvey, a Duke University finance professor, says the Fed's read on inflation is out of whack, making a recession likely.

While it seems like the real estate cooled off, it's still hotter than other large metros. Susan Campbell has what it means for our pocketbooks and buyers.

Rate projections suggest many Fed officials see a rising “neutral rate,” which keeps inflation and unemployment stable in the long run.

The state's mild winters are often a plus for people who move here. So how does that growing population interact with a shrinking water supply?

Annual home price growth increased in July, following six consecutive months of gains, CoreLogic reported. But 11 states in the West saw major home price declines. Despite growing home prices and rising mortgage rates, there are still ways to find the best mortgage deals.

Through tangible examples and success stories, let's explore the lucrative potential that lies within real estate, empowering entrepreneurs to make informed investment decisions.

Q3 has been a challenging quarter for Opendoor the stock, down 33% since the company reported Q2 earnings on August 3rd. Tepid forward guidanc

• These are the 10 things sellers can do to make the inspection go smoothly for them
  On inspection day the home should be empty of the owners - this gives the Buyer time to get acquainted with the property.
  Pets should be removed or crated.
  If something isn't working properly - don't try to hide it - inspectors will find it. You may raise questions that will cause concern for the Buyer and impact the sale. Simply leave a note indicating you know the item is broken.
  Replace blown lightbulbs in all parts of the home. Test all smoke detectors to make sure they are working properly.
  Please make sure your oven and stovetop are clean so they can be tested without setting off the smoke alarm.
  Have clear access to the electrical panel, water heater, attic, crawlspaces, heating systems, garage and garage GFCIs, and other areas that will need to be inspected.
  Change or replace your HVAC filter.
  If there is a septic inspection, please make sure the lid is accessible and exposed.
  If the house is vacant, please make sure all utilities are turned on.
  The house should be clean inside. Gutters should be clean outside. Trim trees and shrubs around the exterior.

Federal Reserve Chair Jerome Powell said Wednesday that the central bank will leave its benchmark interest rate unchanged, the second time this year the Fed opted against raising rates. Photo: Chip Somodevilla/Getty Images

Visualizing Existing Home Sales

A collaboration between Mike DelPrete and Aziz Sunderji There is an abundance of data about the U.S. housing market – and for every metric, there are an infinite number of ways of slicing and dicing the data.

Why it matters: What’s needed is a way of simplifying the data – ultimately, data should tell a story and provide meaning.

• This week I am teaming up with real estate data visualization specialist Aziz Sunderji of Home Economics to contextualize yesterday's existing home sales report.

401,000 homes were sold across the country in August, and we think the best way to contextualize the data is to compare these figures to the same month in prior years. By this measure, home sales last month were the lowest since August 2010. Sales in the West have declined against the long-run average more than in other regions (though the Northeast is not far behind). Transactions are holding up better in the Midwest and in the South. Momentum in home sales over the past six months has been sluggish, and well below historical averages. And sales are consistently falling below the historical average, especially during the past five months -- although August was a slight improvement over July.  The current downturn shows signs of similarity to past housing downturns, both in velocity and duration. Our ask: Use these charts! Include them in your own research and use them to educate consumers, board members, and peers.

• The more we collectively understand the data – and make meaning from it – the better decisions we’ll make to move forward with clarity.

  The latest guest for my podcast is Pritesh Damani, CTO at Real Brokerage. I’ve talked about real estate’s Netflix vs. Blockbuster moment in my recent presentations and research, and Real is one of those companies managing to grow quickly in a down market. Give it a listen!  

Is a housing market crash imminent in 2023 or 2024? That's the trillion-dollar question as a major mortgage originator issues a dire warning.

Existing home sales fell almost 1% in August and were down about 15% over the past year, according to new data from the National Association of Realtors. Aarthi Swaminathan, personal finance reporter for MarketWatch, joined CBS News to discuss the 

Wall Street players are angling for control of Columbia Property Trust’s distressed debt, an increasingly common fight in CRE.

Some neighborhoods are welcoming the added oversight of short-term vacation rentals in Phoenix.

Shopping malls get new lease on life as 24/7 communities

Get headache-free cash flow with PPR Capital Management: http://investwithppr.com/

Commercial real estate is facing a deadly “Doom Loop.” This type of scenario only happens during a shaky real estate market, where prices are falling, banks lock up their lending, owners are forced to sell, and prices crash. Once this cycle starts, it’s very hard to get it to stop, and the last time we saw a “Doom Loop,” America’s residential real estate market fell off a cliff. So, is the same in store for 2023?

There are promising signs that a “Doom Loop,” even on a small scale, could impact the commercial real estate market. Small banks, which are HIGHLY concentrated in commercial real estate lending, have a very bleak outlook with rates rising and short-term loans coming due. The good news? This could FINALLY force commercial real estate sellers to wake up to reality and offer their properties at a price the market agrees on. What’s going to happen next? Stick around and find out!

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0:00 The "Doom Loop"
2:02 The Commercial Real Estate Crash
3:41 Banks Buckle Under Pressure
7:58 Prices Crash, Defaults Spike
10:13 What Happens Next
13:01 Is Residential Real Estate Safe?
14:19 What to Do NOW