True. I’m just on the fence. I’m not totally against them, but a house recently built a couple of houses down was done poorly and cod compliance has been coming out there for the last two month.
So when’s the housing bubble bursting?
- Thread starter Dr. Truth
- Start date
True. I’m just on the fence. I’m not totally against them, but a house recently built a couple of houses down was done poorly and cod compliance has been coming out there for the last two month.
You know the builder name?
I would stay away from them, but I would recommend getting a third party inspector before drywall and after the drywall is done. They have to fix anything that’s found.
My friends who had new builders over the past few years haven’t had any issues also. Just FYI
The Most Splendid Housing Bubbles in America, June 2024 Update. San Francisco, Seattle, Phoenix, Portland, Denver, Dallas, Las Vegas still below 2022 Peak
by Wolf Richter • Jun 25, 2024 • 0 Comments
New Highs: Boston, New York, Miami, Los Angeles, San Diego, Washington DC, Chicago… Rate-Cut Mania subsides, price growth begins to slow.
By Wolf Richter for WOLF STREET.
Rate-Cut Mania, which started in November and peaked in February, left its imprint on the housing market. The S&P CoreLogic Case-Shiller Home Price Index, released today and dubbed “April,” is a three-month moving average of home prices whose sales were entered into public records in February, March, and April. So that’s still in the Rate-Cut Mania time-frame. Since then, Rate-Cut Mania has largely subsided.On a month-to-month basis, the 20-City Case-Shiller Home Price Index rose by 1.4% in “April” (moving average of February, March, and April), a deceleration from the 1.6% jump in the prior month:
- Month-to-month, prices rose in all 20 metros covered by the index, ranging from +0.1% for condos in the New York Metro to 2.2% for single-family houses in the Boston metro.
- Year-over-year, the 20-City Index was up 7.2%, a deceleration from the 7.5% increase in “March” and from 7.4% in “February.”
- Compared to the previous all-time high of June 2022, the index was up 3.5%.
Prices were below their 2022 highs in 7 of the 20 metros in the Case-Shiller index (month of peak):
- San Francisco Bay Area: -7.9% (May 2022)
- Seattle: -6.3% (May 2022)
- Phoenix: -5.0% (June 2022)
- Portland: -4.4% (May 2022)
- Denver: -3.7% (May 2022)
- Dallas: -3.0% (June 2022)
- Las Vegas: -2.5% (July 2022)
The most splendid housing bubbles by metro.
San Francisco Bay Area single family houses: the San Francisco metro in the Case-Shiller Index covers a five-county portion of the nine-county Bay Area.- Month to month: +2.0%
- Year over year: +4.7%.
- From the peak in May 2022: -7.9%.
San Francisco Bay Area condos: Condos are a big part of the market in the Bay Area, particularly in San Francisco itself.
- Month to month: +0.8%.
- Year over year: +0.7%.
- From the peak in May 2022: -9.0%.
- Just a hair above May-August 2018.
Seattle metro:
- Month to month: +2.0%.
- Year over year: +7.5%.
- From the peak in May 2022: -6.3%.
Phoenix metro:
- Month to month: +0.6%.
- Year over year: +4.8%.
- From the peak in June 2022: -5.0%.
Portland metro:
- Month to month: +1.1%.
- Year over year: +1.7%.
- From the peak in May 2022: -4.4%.
Denver metro:
- Month to month: +1.3%.
- Year over year: +2.0%.
- From the peak in May 2022: -3.7%.
Dallas metro:
- Month to month: +1.2%.
- Year over year: +3.4%.
- From the peak in June 2022: -3.0%.
Las Vegas metro:
- Month to month: +1.2%.
- Year over year: +8.3%.
- From the peak in July 2022: -2.5%.
Tampa metro:
- Month to month: +0.7%.
- Year over year: +3.6%.
- Eked past its July 2022 high by 0.5%
Los Angeles metro
- Month to month: +1.3%.
- Year over year: +8.6%.
- From prior high in May 2022: +4.0%
San Diego metro:
- Month to month: +1.2%.
- Year over year: +10.1%.
- From prior high in May 2022: +3.6%
Washington D.C. metro:
- Month to month: +0.9%.
- Year over year: +6.4%.
- From prior high in June 2022: +4.7%.
Boston metro:
- Month to month: +2.2%.
- Year over year: +7.9%.
- From prior peak in June 2022: +3.9%
New York metro:
- Month to month: +1.3%.
- Year over year: +9.4%.
- From prior peak in June 2022: +11.4%
Miami metro:
- Month to month: +1.3%.
- Year over year: +9.4%.
- From prior peak in July 2022: +11.4%
To qualify for the Most Splendid Housing Bubbles, the metro must have experienced home-price inflation since 2000 of about 200% or more at the peak. The indices were set at 100 for the year 2000. Today’s index value for San Diego of 443 is up 343% since 2000, making San Diego the most splendid housing bubble on this list, ahead of Miami and Los Angeles.
Home-Price Inflation. The Case-Shiller Index uses the “sales pairs” method, comparing sales in the current month to when the same houses were sold previously. Price changes are weighted based on how long ago the prior sale occurred. Adjustments are made for home improvements and other factors (37-page methodology). By measuring how many dollars it takes to buy the same house over time, the Case-Shiller index is a measure of home-price inflation. San Diego had 343% home price inflation since 2000. Over the same period, the consumer price inflation, as measured by CPI, amounted to 86%.
The remaining 6 of the 20 metros in the Case-Shiller index (Chicago, Charlotte, Minneapolis, Atlanta, Detroit, and Cleveland) had less home-price inflation since 2000, despite the price spikes in recent years, and don’t qualify for this list.
Chicago, with an index value of 205 is up by 105% from the year 2000, and therefore far from qualifying for this list. But the 44% price spike since the Fed started its money-printing binge in March 2020 has been splendid nevertheless, so here it is anyway:
- Month to month: +1.7%
- Year over year: +8.7%.
- From the prior high in July 2022: +8.5%
Deadline looms for B.C. municipalities to allow multiplexes on single-family lots. Here's what we know so far
A look at the B.C. government's new policy that is designed to get more housing units built but could also result in higher lot values.
@4 Dimensional
One thing that also helps if you know the builder's name ... try searching threads about them on Reddit. Either just in general, or specific to your city.
I see that occasionally on my city's Reddit ... people will ask for general thoughts about a certain builder / developer for houses & condos ... just to gauge peoples' takes.
Good recommendation
Thanks.
Side note ... some of the best advice I got during the real estate search was from a coworker years back. He's just under 20 years older than me, and had bought a place 1 year prior.
After shift report I would look over some of the spec sheets from open houses with him. Did this a few times a week for 6 months.
That was helpful because he'd lived in different cities over the years, and drives alot so he's familiar with length of commutes. What areas are more desirable in getting to & from work, etc. What spots were more up & coming and so on.
Did a dirt build and got to verify every step of the process. Trust me you’ll have no problems. Just ask alot questions and take notes and videos.
Inside Toronto’s slumping condo market
There’s a record number of Toronto condominiums on the market right now, and despite record immigration, and an ever-worsening housing crisis, nobody seems to want to buy them. So how hard is it to offload a condo in one of North America’s hottest property markets? What happened to all of the...
thebigstorypodcast.ca
I got an inspector to look at everything before they went to the next step in the build. The few things were pointed out were fixed fast and inspected.
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Thank you so much, fellas. I going to look into this some more.
Freddie Mac’s second mortgage pilot approved by FHFA
The Federal Housing Finance Agency (FHFA) on June 21 issued a conditional approval for Freddie Mac to engage in a pilot program to purchase single-family closed-end second mortgages.That conditional approval represented the first time a proposed new product from Freddie Mac or Fannie Mae was published for public comment under the process required by Congress and implemented through FHFA’s “Prior Approval for Enterprise Products” regulation that became effective in April 2023.
“The limited pilot will allow FHFA to explore whether this closed-end second mortgage product effectively advances Freddie Mac’s statutory purposes and benefits borrowers, particularly in rural and underserved communities,” FHFA Director Sandra L. Thompson said.
FHFA noted the conditional approval of the pilot includes several limitations, including a maximum volume of $2.5 billion in purchases; a maximum duration of 18 months; a maximum loan amount of $78,277; a minimum seasoning period of 24 months for the first mortgage; and eligibility only for principal/primary residences.
Thompson explained in a statement that the conditional approval was informed by comment letters FHFA received as well as other considerations, including that the product is authorized under specified sections of Freddie Mac’s Charter Act. The Charter Act permits Freddie Mac to purchase “residential mortgages that are secured by a subordinate lien against a one- to four-family residence” subject to certain conditions.
In addition, FHFA found the product to be in the public interest. Freddie Mac’s purchase of closed-end second mortgages is intended to allow borrowers to maintain their low interest rate first mortgage while accessing a portion of the equity in their homes.
Furthermore, while the volume cap ensures that any second mortgages acquired through the pilot would represent a small number of Freddie Mac’s aggregate loan acquisitions, FHFA also approved the pilot subject to additional safety considerations. Those include the expectation that the pricing of eligible second mortgages and their capital requirements will appropriately reflect the risks that they pose. That should mitigate the risk that Freddie Mac will displace activity already occurring in the home equity market, which is primarily concentrated in offerings to higher-income borrowers, as the objective is to reach borrowers who otherwise would be subject to more expensive alternatives, such as a cash-out refinance, according to Thompson’s statement.
After the pilot program concludes, FHFA will analyze the data on Freddie Mac’s purchases of second mortgages to determine whether the objectives of the pilot were met. Any increase to the volume or extension of the duration of the pilot, or a conversion of the pilot to a programmatic activity, would be treated as a new product that is subject to public notice and comment and FHFA approval, the agency said.
Metrotown office project faces receivership as New York lenders call in $50 million loan
New York-based lenders call in loan.
He’s going to get fired for this
Or if he owns his own company, people are going to stop using him.
Right...
House prices in these pandemic hotspots are set to nosedive
Home prices in certain pandemic hotspots across the nation are expected to nosedive soon, with four major metropolitan areas most impacted.
$2.1M being returned to investors who lost 15 times that much in real estate fraud, BCSC says
Investors who collectively lost millions in a real estate scheme will soon be getting a small portion of their money back, according to the B.C. Securities Commission.
'What if we say no?': Burnaby defies B.C.'s transit-oriented housing laws
New provincial legislation requires B.C. cities to allow taller buildings near transit hubs by June 30. Burnaby won't comply.
www.burnabynow.com
Burnaby has followed the province’s two other major housing changes, legalizing multiplexes citywide and new development financing, but the transit-oriented areas legislation has proved controversial.
Brentwood residents have petitioned against the “transit-oriented areas,” the three rings radiating 200, 400 and 800 metres from SkyTrain stations, where the province has told municipalities to allow a minimum of eight- to 20-storey buildings.
The city lobbied the province for an exemption, but the province rejected Burnaby’s request.
If they dont gtf…