Real Estate Crash thread

[4matic]

Zillow owned house going for less than they paid two months ago.
https://www.zillow.com/homedetails/3...18614239_zpid/

[Core Shot]

Ha. That’s fucking awesome.

Zillow buys houses and loses money, but makes it up on volume!

[altasnob]

Isn't Zillow the realtor on Zillow owned homes, just like Redfin? Since they get commission, are they really going to lose much money? Plus, think of all the buyer data they will get off of this. I think this is Zillow and Redfin's grand plan.

[4matic]

Here's another. It's interesting that Zillow no longer lets you search by recent price change. After transaction costs at the list price they have to be under water $50k plus on this one. Their stock is down 50% since March.

https://www.zillow.com/homedetails/3...47808031_zpid/

[liv2ski]

Here's another. It's interesting that Zillow no longer lets you search by recent price change. After transaction costs at the list price they have to be under water $50k plus on this one. Their stock is down 50% since March.

Fuck those greedy cunts. I hope they get crushed.

[rideit]

Don’t you fear, kids, something newer, slicker, and even more predatory will come along and upend Zillow, just you wait.

[4matic]

Don’t you fear, kids, something newer, slicker, and even more predatory will come along and upend Zillow, just you wait.

Blackstone has that power

[Core Shot]

Yeah, I was gonna say blackrock

Fuck those evil fucks.

They make Goldman Sachs look like mother Theresa.

I always though black stone was a subsidiary. Nope.

Just a sister company of two sociopathic freaks.

=======
Blackstone is the largest landlord in the U.S. as well as the largest real estate company worldwide, with a portfolio worth $325 billion. In June 2021, Blackstone agreed to buy Home Partners of America, a company that rents single-family houses, and its 17,000 houses, for $6 billion.

Blackstone and BlackRock sound alike for a reason. Blackstone’s co-founder, billionaire Steve Schwarzman, said during an interview on Squawk Box that he and Fink “started in business together. We put up the initial capital.” BlackRock used to be called Blackstone Financial, but Fink went off on his own. Schwarzman said, “Larry and I were sitting down and he said, ‘What do you think sort of about having a family name with ‘black’ in it,’” and BlackRock was born.

Blackstone became notorious for swooping in after the housing bubble burst and buying tens of thousands of homes at deeply discounted prices. They then turned them into single-family rentals, taking advantage of the recession.

In 2017, Bloomberg reported: “Blackstone built its rental-home business with an advantage few if any other buyers could match: billions of dollars in credit from large banks. Its Invitation Homes subsidiary quickly became the largest single-family home landlord in the U.S., with 50,000 properties. Altogether, hedge funds, private-equity firms and real estate investment trusts have raised about $20 billion to purchase as many as 200,000 homes to rent.”

Now, with many struggling due to yearlong business shutdowns and lockdowns, and home prices rising, many Americans are having difficulty finding affordable single-family homes to buy.

[Core Shot]

https://www.lifestyleassetgroup.com/

Yeah sure. Let me buy an overpriced home with random strangers in an LLC.

What could go wrong?

[Benny Profane]

Fractional ownership!

[Benny Profane]

Don’t you fear, kids, something newer, slicker, and even more predatory will come along and upend Zillow, just you wait.

And yet, agents will still walk away with their 6%.

[altasnob]

S&P CoreLogic Case-Shiller Home Price Index released for June (most accurate statistic for state of housing market, but it lags two months). Top three year over year growth were Phoenix at 29.3%, San Diego at 27.1%, and Seattle at 25% (same top three for the last five months).

To put in perspective, Seattle’s price growth set a new record for the third month in a row, blowing past the 18% year-over-year growth the region saw in 2005, before the housing crash.

Nationally, home prices were up nearly 19% compared to a year earlier, the highest jump in more than 30 years of index data. Prices climbed by double-digit percentages in all 20 major cities the index tracks.

But there are early signs of a cooldown. The Case-Shiller index shows while Seattle-area prices jumped about 5% from February to March, that monthly rate has been declining since. From May to June, prices increased 1.5%, according to the index.

https://www.seattletimes.com/busines...back-to-earth/

[sirbumpsalot]

S&P CoreLogic Case-Shiller Home Price Index released for June (most accurate statistic for state of housing market, but it lags two months). Top three year over year growth were Phoenix at 29.3%, San Diego at 27.1%, and Seattle at 25% (same top three for the last five months).

To put in perspective, Seattle’s price growth set a new record for the third month in a row, blowing past the 18% year-over-year growth the region saw in 2005, before the housing crash.

Nationally, home prices were up nearly 19% compared to a year earlier, the highest jump in more than 30 years of index data. Prices climbed by double-digit percentages in all 20 major cities the index tracks.

But there are early signs of a cooldown. The Case-Shiller index shows while Seattle-area prices jumped about 5% from February to March, that monthly rate has been declining since. From May to June, prices increased 1.5%, according to the index.

https://www.seattletimes.com/busines...back-to-earth/

Jeez....seems like Seattle housing has been going up 20% a year for the last 15 years.....

[Benny Profane]

I'm pretty sure that in a year or two, there's going to be a ton of people trying to get out of homes they really don't like, for many reasons. Blows me away that so many homes have been bought so quickly without inspections or just patient thoughts about the neighborhood or other factors.

[liv2ski]

Jeez....seems like Seattle housing has been going up 20% a year for the last 15 years.....

Back when we bought our properties I did the math assuming 3% appreciation on average. Turned out to be more like 6.75% compounded annually over the years. Frickin nuts.

[Iowagriz]

Certainly not as bad as many of the popular areas, but this was reporting today in Missoula.

Data released this month from the Missoula Organization of Realtors showed the median price of a house in the urban area from January to July 2020 was $332,000, but in the same period this year, it was $435,000, a roughly 30% increase. The MOR also noted the average days on the market dropped from 119 to 85.

[TAFKALVS]

Condo down the street from me sold for $289k 2 years ago. Listed yesterday for $749k. Curious if it sells.

[Ted Striker]

2314 Harris Ave

Closed at 700k and the predatory douchebag buyer is renting it out at $3500/mo

Ad: Minimum Qualifications: 700+ credit score, no evictions, no felonies against person or property in the last 5 years, $10,500.00 monthly income and 3 years good rental history

[Shredhead]

Closed at 700k and the predatory douchebag buyer is renting it out at $3500/mo

Yeah, how dare the douchebag, breaking even.

[Ted Striker]

You must be new in this thread. Everyone is either a take pity on little ole me or a wealthy predator.

It's definitely a strange play. 6% gross return assuming he can get full year occupancy, and 3500 is above average in this town.

[altasnob]

Ad: Minimum Qualifications: 700+ credit score, no evictions, no felonies against person or property in the last 5 years, $10,500.00 monthly income and 3 years good rental history

Seattle (one of the most tenant friendly cities in America) has a law that says you must rent to the first qualified applicant. I think it is a good law that prevents landlords discriminating against families, race, ect. But a way to get around it is to make your qualifications exceptionally high so if the landlord is ever sued by an applicant who is turned down, landlord can point to the failure to meet their high qualifications. And when the landlord breaks their own rule and rents to the person they want (who doesn't meet the qualifications) they are not going to be sued about it.

[sirbumpsalot]

$2.4M in Bozeman....is this a screaming deal?

https://www.zillow.com/homedetails/1...4928276_zpid/?

[Benny Profane]

Whoever owns that did not grow up in Bozeman, 10-1.

[sirbumpsalot]

Whoever owns that did not grow up in Bozeman, 10-1.

LOL....there are 3 of them in that neighborhood for $1.7M+ some sold for $800,000 3-4 yrs ago. Some high end finishes in this newer swanky neighborhood across the main road for less $$ :

https://www.zillow.com/homedetails/1...25621646_zpid/

[altasnob]

Whoever owns that did not grow up in Bozeman, 10-1.

Almost none of the people who grew up in places like Bozeman, Bend, Bellingham, Jackson, Aspen are actually from there. It's just a bunch of people who moved there 10-20 years ago complaining about people who moved there 5-0 years ago.

The conversations I had with people on the chairlift in Bachelor last year were hilarious. My great grandparents are buried in Bend, my grandmother lived there (may have been first female to summit Mt. Washington). I have been going there my whole life and have lived there for a summer. But I claim no ownership of the place. Yet everyone I rode with would constantly lament about newcomers and the Ikon pass (I have Ikon). When I did some digging, all of them recently moved to town from California.