Home News Mortgage Rates More Than Double In 10 Months Adds Stress to Buyers and Flippers – Mish Talk

Mortgage Rates More Than Double In 10 Months Adds Stress to Buyers and Flippers – Mish Talk

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Mortgage rate chart provided by Mortgage News Daily, with commentary by Mish.

Deal’s death stresses Flipper

Since the beginning of the year, mortgage rates have fallen from 3.35% to 7.30%.

Prices haven’t gone down much yet, resulting in a lack of deals and more stress in the flippers.

alex thomas is interesting tweet threadAbout flipping the house.

flip the house

  • Key takeaways from last week’s Fix & Flipper survey: 1) Interest rates have slowed trading significantly and prices are falling broadly. 2) There is a lot of talk about flippers changing strategy, holding and renting instead of flipping, or exiting the space altogether.
  • #Atlanta Flipper: “Many highly leveraged flippers will either have to pay out of pocket to sell or default on a no-recourse loan. We won’t see improvement until late 2024. Not reaching the point, cash flush investors will have some bargains.
  • #Baltimore Flipper: “Sellers have not yet reacted to market changes. Sellers need to lower prices.”
  • #BostonFlipper: “It’s hard to predict how far prices will go, and it’s hard to buy a project based on future value.”
  • #Boulder Flipper: “Higher rates not only make things harder, they make things more competitive.
  • #CharlestonFlipper: “The sales market is definitely headed down and some regions are seeing prices drop month-to-month. This trend should set prices for new purchases. “
  • #Dallas Flipper: “Buying paused as buyers withdraw from the market.”
  • #FortWayne Flipper: “Millennials are our biggest buyer segment, too young to remember mortgage rates of 2-3%. Higher rates scare them. It might help, but I think there’s going to be a big recession when home values ​​are adjusted significantly.”
  • #Fort Worth Flipper: “Buying an investment property in this market is currently very difficult. Most sellers still want a lot of money and there aren’t many available.”
  • #Fresno Flipper: “Interest rates have pushed prices out of the affordable range. Flippers need lower prices to maintain decent profit margins.”
  • #HiltonHead Flipper: “Finding a Flip with an acceptable ROI on paper has been difficult. It’s too risky, I’m waiting for some stability before starting a new project.”
  • #LasVegas Flipper: “This market is still overpriced and wholesale prices are overstated. Rehabilitation costs are increasing and it is difficult to find reliable contractors. It will not be completed within budget.”
  • #Las Vegas Flipper: “It’s very difficult to find deals in a downtrending market. Sellers and wholesalers are asking for too much. I’m silent until
  • #LosAngeles Flipper: “The market has slowed down a lot. Traffic is down a lot, offers are down, and all buyers are writing modest offers.”
  • #Memphis Flipper: “Until 3 months ago, we were getting offers from investors paying cash. Yes, but of course this is not as desirable as quick cash payments.”
  • #Nashville Flipper: “Sales are slowing month by month and prices are under pressure. This is expected to continue and could get worse.”
  • #Orlando Flipper: “We are currently focused on buying and holding in areas of high demand.”
  • #PhoenixFlipper: “Prices are dropping and inventory is skyrocketing. Looking to buy, rehab or rent rather than flip.”
  • #Richmond Flipper: “It’s not worth flipping now unless you buy at a significant discount to offset the price drop. Prices have stabilized and more stock is now available at a better price We will consider re-entering the market later in 2023.”
  • #RiversideSanBernadino Flipper: “Homes are selling at about -5% to -10% lower than they were this spring.”
  • #Sacramento Flipper: “It’s time to buy and hold. Sellers in this market are in a situation where they need to sell.”
  • #Sacramento Flipper: “It’s time to buy and hold. Sellers in this market are in a situation where they need to sell.”
  • #SanDiego Flipper: “Homeowners are now aggressive in negotiating and are slashing sales prices significantly given the ever-shrinking market.”
  • #San Francisco Flipper: “Home prices are falling.
  • #Tacoma Flipper: “We are waiting for the situation to stabilize and move on from there. Interest rates are not helping.”
  • #Tampa Flipper: “The pressure is downwards and comp data sold is becoming less useful. Prices are down up to -1% per month. We should do more. Six months old data is dangerous for house flippers.”
  • We would like to thank our partners at Flatiron Realty Capital and @SundaeHQ for participating in this research.

housing is local TMs

At every cycle, housing bulls shout “housing is local,” even as deals and price drops spread from city to city and almost everywhere.

Depression is also local. Almost everything is local, unless otherwise.

I’m sure some places won’t be affected by this, but good luck finding them. This leads to denial and hope.

denial and hope

walk in the market

What I’m looking at is listing at desired price, listing at desired rent price, still relisting at desired price, relisting at desired rental price…. property sitting is.

This is called walking down the market, always looking for the price that could have been obtained in the last month.

scroll to continue

Existing home sales fall for eighth straight month, down 1.5%, NAR says

Existing Home Sales Data from St. Louis Fed

Existing Home Sales Data from St. Louis Fed

noticed on october 20th Existing home sales fall for eighth straight month, down 1.5%, NAR says

Pending home sales down 31% y/y, 10.2% in September

Pending Home Sales Chart by Trading Economics

Pending Home Sales Chart by Trading Economics

noticed on october 29th Pending home sales down 31% y/y, 10.2% in September

don’t worry, it’s all local

Homes will be divided one lot at a time until a national decline of 27.4% in 10 months and a steady deterioration in 11 days.

Meanwhile, the Federal Reserve is desperate to kill housing.See my report for discussion Fed Chairman Powell: ‘It’s too early to think of a moratorium on rate hikes’

Origin of this post: MishTalk.Com.

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