Real Estate Digital Sales - REDS

Real Estate Digital Sales is a uniquely fresh Mobile Marketing Machine! RealEstateDigitalSales.com SaaS (Software as a Service) provides an automated service for DIY FSBO Role Players. REDS SaaS is the strong right arm of the FSBO/Role Players Empowerment SaaS, enabling a Commission Saving Connect Direct experience. GoReds.Today CMS is the Real Estate Information/Advertising/SM Marketing arm of RealEstateDigitalSales.com

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New Home Sales Puke In November

New home sales collapsed in November, plunging by 11% MoM, its second biggest monthly drop since 2015  Source: Bloomberg Sending the new home sales SAAR reeling back to 841k (drastically below the 995k expected)... The median selling price rose 2.2% from a year earlier to $335,300, with 17% of new homes sold in Nov. cost more than $500,000, up from 14% prior month. All of which helps explain the plunge in home builder sentiment. https://www.zerohedge.com/markets/new-home-sales-puke-november Read the full article

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Taxpayers On The Hook For Nearly Half Of Apartment Building Mortgages

Taxpayers On The Hook For Nearly Half Of Apartment Building Mortgages This is not the ideal time to own an apartment building. Millions are struggling to pay rent and despite the extension of the federal eviction moratorium through Jan. 31 in the latest stimulus bill, a lot of people will likely face eviction in the coming months. According to data released in November, 17 million households are behind on rent or mortgage payments. Of course, this has a trickle-down effect. If renters can’t pay their rent, that makes it difficult for apartment building owners to keep up with their mortgage payments. If they default, who’s on the hook? ncreasingly, the US taxpayer. Total outstanding mortgages on multifamily housing property stood at $1.65 trillion in Q3. That was up by about $31 billion from Q2, according to data compiled by the Mortgage Bankers Association. Of that amount, the federal government backs $798 billion. That’s 48.4% of all mortgages on multifamily properties. Uncle Sam backs these loans through Government Sponsored Enterprises (GSEs), such as Fannie Mae and Freddie Mac, along with government agencies such as Ginnie Mae. GSEs often securitize these loans into commercial mortgage-backed securities (CMBS) that are sold to investors. This practice with single-family home mortgages led to the housing crisis in 2008. In simple terms, government-backed means that the US taxpayer is ultimately on the hook for any losses. The US government got into multifamily real Read the full article

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CORONAVIRUS AND THE PROPERTY MARKET

The Coronavirus has impacted property market trends across the globe. We look at the good, the bad and the uncertain effects of the pandemic on real estate. An uncertain future for commercial real estate  During Australia’s national peak of the Coronavirus pandemic, 4.3 million people (almost a third of our workforce) were working from home.* As a result, Sydney and Melbourne’s office vacancy rates doubled in the first half of the year.* Unsurprisingly, the first six months of 2020 saw investment in commercial real estate tumble. Globally, direct commercial real estate investment fell 29% year-on-year to $321 billion. Travel restrictions also hindered international investors from carrying out due diligence on potential real estate investments across their borders.* Even now that workers are starting to return to offices in many cities, there may not be a return to pre-Coronavirus occupancy levels. Already, some corporate staff surveys indicate around half their workforces want to continue working remotely – for at least some of the time.* Some companies are redesigning their offices to create spaces more suited to socially-distant office meetings or collaborative projects, while others are downsizing and renting desks or rooms in a shared office space. This has always been a popular option for freelancers and self-employed people who want the freedom of self-employment, but also the community and connection that comes with a shared workplace. Commercial property experts Read the full article

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48% Of U.S. Small Businesses Fear That They May Be Forced To “Shut Down Permanently” Soon

What would the United States look like if we lost half of our small businesses?  The reason I ask that question is because approximately half of all small business owners in the entire country believe that they may soon be forced to close down for good.  Not even during the Great Depression of the 1930s did we see anything like this.  The big corporate giants with extremely deep pockets will be able to easily weather another round of lockdowns, but for countless small businesses this is literally a matter of life and death.  Every day we are seeing new restrictions being implemented somewhere in the nation, and the politicians that are doing this are killing the hopes and dreams of countless small business owners.  According to a recent Alignable survey, 48 percent of U.S. small business owners fear that they could be forced to “shut down permanently” in the very near future… Based on this week’s Alignable Q4 Revenue Poll of 9,201 small business owners, 48% could shut down permanently before year’s end.In fact, this number jumped from 42% just two months ago, demonstrating how several factors have converged to devastate small businesses: COVID resurgences, forced government reclosures, elevated customer fears, and a surge in online shopping at Amazon and other national ecommerce giants. When a small business with only a few employees closes down forever, it never makes any national headlines. But the truth is that small businesses are the heart and soul of our economy, and Read the full article

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If You Thought 2020 Was Bad, Watch What Happens In 2021

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TENANTS, LANDLORDS FACE IMMINENT CRISIS AS PANDEMIC LIFELINES EXPIRE

January is going to be a mess. America's small-time landlords, along with their tenants, are in trouble as safety nets are set to expire. Tenants haven't paid rent in months, with a looming eviction moratorium expiring at the end of December. According to Reuters, the lack of rental income for landlords has also been troublesome, with many skipping mortgage payments, potentially resulting in a firesale of properties in the year ahead. For 12 million Americans and their families - this Christmas will be their worst - as the extended unemployment benefits that have kept many of them afloat are set to expire later this month. Then on New Year's Day, the Centers for Disease Control and Prevention's eviction moratorium expires, which could result in a massive wave of evictions in the first half of 2021. At the moment, $70 billion in unpaid back rent and utilities are set to come due, according to a new report via Moody's Analytics Chief Economist Mark Zandi. Last month, Maryland utility companies began to terminate customers with overdue bills, many of which were unable to pay because of job loss due to the coronavirus downturn. New research from the Aspen Institute warns 40 million people could be threatened with eviction over the coming months as the real economic crisis is only beginning. According to Stacey Johnson-Cosby, president of the Kansas City Regional Housing Alliance, landlords are also in deep turmoil. She said more than 40% of the landlords surveyed in her coal Read the full article

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The Crashing Rental Market Could Set Off The Next Housing Crisis

The Crashing Rental Market Could Set Off The Next Housing Crisis The Crashing Rental Market Could Set Off The Next Housing Crisis by Tyler Durden   We have extensively followed the collapse in rental prices since the beginning of the pandemic here on Zero Hedge (for examples, look here  and here and here). In addition to prices collapsing, some tenants affected by the lockdowns have simply decided they no longer want to pay rent and are stiffing their landlords with little consequences. There's not doubt that many renters - including many businesses - don't have the means they once did to pay their rents. And though we knew the fall in prices was likely to get worse before it got better, the Wall Street Journal is taking it one step further and now asking the question of whether or not the rental price plunge could actually set off the next housing crisis. Another question also remains: how bad will the eviction scene be when the protections against eviction put into place by federal and local government expire? It is estimated that such moratoriums may wear off by January 2021, or even sooner. At that point, renters will need to pay up for the months they've missed. The Federal Reserve Bank of Philadelphia released a study of unemployed workers last week that estimated outstanding rent debt could reach $7.2 billion before the end of 2020. Moody's has estimated that it could reach an astounding $70 billion if there is no further stimulus. Moody's estimates that 12. Read the full article

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Freddie Mac Multifamily Midyear Outlook Reveals Pandemic’s Effect on Market

Freddie Mac Multifamily Midyear Outlook Reveals Pandemic’s Effect on Market Freddie Mac Multifamily Midyear Outlook Reveals Pandemic’s Effect on Market MCLEAN, Va., July 31, 2020 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) Multifamily projects marginal reductions in rents and increased vacancies as the multifamily market responds to the economic effects of the COVID-19 pandemic. Although total multifamily origination volume is expected to decline in 2020 compared with 2019, the company anticipates its own production volume will remain consistent as it serves its mission to provide liquidity to the market. “The economic challenges brought on by the COVID-19 pandemic will have a meaningful impact on the multifamily market in 2020,” said Steve Guggenmos, vice president of Multifamily Research and Modeling at Freddie Mac. “The industry entered the current recession on solid footing and is well-positioned to absorb the impacts of the recession due to substantial growth over the past several years. While we anticipate the total multifamily volume to decrease in 2020, Freddie Mac is supporting lending liquidity as other market participants moved to the sidelines.” The Multifamily 2020 Midyear Outlook from Freddie Mac’s Multifamily Research Center is available online here. Read the full article

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For Sale By Owner vs Realtor: Here are the Pros and Cons of Each

For Sale By Owner vs Realtor: Here are the Pros and Cons of Each For Sale By Owner vs Realtor: Here are the Pros and Cons of Each By Larissa Runkle   Getting ready to sell your house? Then it’s time to consider whether to hire a real estate agent or go it alone. If you have some experience with real estate, you might feel equipped to sell your own home and cash in on the savings of not paying a Realtor. Going the “for sale by owner” or FSBO route can be a great option for some sellers, but it’s not for everyone. We’ll explain some pros and cons on each side of the for sale by owner vs. realtor debate. What is a FSBO? Rather than hiring a real estate agent to market, show, and ultimately sell your home, in a for sale by owner transaction you’ll be doing all of those things yourself. A lot of people think selling their own home can’t be that difficult. After all, you know more about your house than anyone, right? But there are factors to consider before committing yourself to the many hours (and legalities) that go into selling a home yourself. Here are a few to keep in mind: FSBO: Pros and Cons of Selling Your Home Pro: Control You’ll have full control over how the homeselling process goes, at least on your end. You’ll schedule home showings and open houses, arrange inspections and review contracts. But with great power comes great responsibility. Read the full article

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It's Now Virtually Impossible To Get A Bank Loan As Lending Standards Soar

It's Now Virtually Impossible To Get A Bank Loan As Lending Standards Soar It's Now Virtually Impossible To Get A Bank Loan As Lending Standards Soar by Tyler Durden   One quarter ago we pointed out something concerning: shortly after JPMorgan reported that its loan loss provision surged five fold to over $8.2 billion for the first quarter, the biggest quarterly increase since the financial crisis, in preparation for the biggest wave of commercial loan defaults since the financial crisis (a number which in the latest quarter surged to $10.5 billion along with all other banks' loan loss provisions)... ... the bank hinted that things are about to get much worse when it first halted all non-Paycheck Protection Program based loan issuance for the foreseeable future (i.e., all non-government guaranteed loans) because as we said "the only reason why JPMorgan would "temporarily suspend" all non-government backstopped loans such as PPP, is if the bank expects a default tsunami to hit coupled with a full-blown depression that wipes out the value of any and all assets pledged to collateralize the loans." Shortly after, the bank also said it would raise its mortgage standards, stating that customers applying for a new mortgage will need a credit score of at least 700, and will be required to make a down payment equal to 20% of the home’s value, a dramatic tightening since the typical minimum requirement for a conventional mortgage is a 620 FICO score and as little as 5% down. Read the full article

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The Four Horsemen Of Disinflation: The Coming Rent-pocalypse

The Four Horsemen Of Disinflation: The Coming Rent-pocalypse The Four Horsemen Of Disinflation: The Coming Rent-pocalypse by Tyler Durden   One month ago, we discussed "The Most Important Question In Finance Today", namely whether in the aftermath of the covid pandemic the world ends up with runaway inflation or price-crushing deflation. Today, Bank of America provides some additional perspective on what it calls the "inflation rollercoaster." Separating the inflation stories As BofA notes, the pandemic has created significant disinflationary shock to the US economy, with the latest CPI report showing core inflation running at a meager 1.2% yoy clip and core PCE later this month likely to come in at 1.1%. That said, it is important to note that current inflation readings are suggesting conditions are much worse than they actually are. Indeed, most of the deceleration can be attributed to a handful of idiosyncratic components. The underlying trend is stickier and has slowed more modestly. Looking ahead, the underlying trend slows with rental inflation holding the key. This means that the rollercoaster will eventually turn-the base effects will turn positive in March 2021-and accelerate before settling at a higher, although still likely below target. Consistent with this thinking, Bank of America expects core CPI to trough at 0.8% yoy in 1Q 2021 before rising to 1.6% by the end of next year. Read the full article

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Commercial Mortgage Delinquencies Near Record Levels

Commercial Mortgage Delinquencies Near Record Levels Commercial Mortgage Delinquencies Near Record Levels By Dorothy Neufeld   Delinquency rates across commercial properties have shot up faster than at any other time. As thousands of restaurants, hotels, and local businesses in the U.S. struggle to stay open, delinquency rates across commercial mortgage-backed securities (CMBS)—fixed income investments backed by a pool of commercial mortgages— have tripled in three months to 10.32%. In just a few months, delinquency rates have already effectively reached their 2012 peaks. To put this in perspective, consider that it took well over two years for mortgage delinquency rates to reach the same historic levels in the aftermath of the housing crisis of 2009. The above chart draws data from Trepp and illustrates the recent shocks to the CMBS market, broken down by property type. Storm Rumblings While there is optimism in some areas of the market, accommodation mortgages have witnessed delinquency rates soar over 24%. Amid strict containment efforts in April, average revenues per room plummeted all the way to $16 per night—an 84% drop. Property Type January 2020 June 2020 Accomodation 1.5% 24.3% Retail 3.8% 18.1% Multifamily 2.0% 3.3% Office 1.9% 2.7% Industrial 1.6% 1.6% Overall 2.1% 10.3% Similarly, retail properties have been rattled. Almost one-fifth are in delinquencies. Read the full article

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The 3 Crisis Waves Coming - Debt, Recession, Economic crisis 2020

The 3 Crisis Waves Coming - Debt, Recession, Economic crisis 2020   https://youtu.be/ysr_nq2Cv5g Read the full article

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"Tsunami" Of Evictions Could Make 28 Million Americans Homeless This Summer Alone

"Tsunami" Of Evictions Could Make 28 Million Americans Homeless This Summer Alone "Tsunami" Of Evictions Could Make 28 Million Americans Homeless This Summer Alone by Tyler Durden   With the pandemic continuing to sink its claws into the United States, economic conditions have also failed to improve for millions of people. As a result, nearly one-third U.S. households – representing 32 percent – have still not made their full housing payments for the month of July, according to a survey from online rental platform Apartment List. And with public health experts warning people to continue to “Stay at Home,” the slogan is taking on a perverse new meaning as humanitarian disaster looms for some 28 million people in the U.S. who are facing eviction and homelessness in the immediate future. About 19 percent of those surveyed were unable to make any housing payment in the first week of the month, while 13 percent paid a portion of their rent or mortgage. The numbers represent the grim fact that for four months now, a “historically high” amount of U.S. households have been unable to pay their housing bill, either on time or in full. It also represents an increase from 30 percent in June and 31 percent in June. According to Apartment List, those most likely to miss their payments were younger, low-income, or renters. Other experts warn that Black and Latino families face the highest risk of eviction. Read the full article

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The Sinking Titanic’s Great Pumps Finally Fail

The Sinking Titanic’s Great Pumps Finally Fail The Sinking Titanic’s Great Pumps Finally Fail by Charles Hugh Smith   The greater fools still partying in the first-class lounge are in denial that even the greatest, most technologically advanced ship can sink. On April 14, 1912, the liner Titanic, considered unsinkable due to its watertight compartments and other features, struck a glancing blow against a massive iceberg on that moonless, weirdly calm night. In the early hours of April 15, the great ship broke in half and sank, ending the lives of the majority of its passengers and crew. The usual analogy drawn between the Titanic and our financial meltdown stems from the initial complacency of the passengers after the collision. Some passengers went on deck to play with the ice scraped off the berg, while most returned to the festivities still working their magic as midnight approached. The class structure of Edwardian Britain soon came into play, however; as the situation grew visibly threatening, the First Class passengers were herded into the few lifeboats while the steerage/Third Class passengers--many of them immigrants--were mostly kept below decks, sealing their doom. But there are even more compelling analogies than initial complacency turning to panic. Consider this diagram of the great ship: The large black rectangles on the lower deck represent the coal bunkers; they were located adjacent to the boilers which powered the engines. Read the full article

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Forget the V, W or L Recovery: Focus on N-P-BForget the V, W or L Recovery: Focus on N-P-B

Forget the V, W or L Recovery: Focus on N-P-B Forget the V, W or L Recovery: Focus on N-P-B by Charles Hugh Smith   The only realistic Plan B is a fundamental, permanent re-ordering of the cost structure of the entire U.S. economy. The fantasy of a V-shaped recovery has evaporated, and expectations for a W or L-shaped recovery are increasingly untenable. So forget V, W and L; the letters that will shape the future are N, P, B: there is No Plan B. All the hopes for a recovery were based on a quick return to the economy that existed in late 2019. All the bailouts and stimulus programs were based on this single goal: a quick return to The Old Normal. This was Plan A. For all the reasons that have been laid out here over the past six months, The Old Normal is gone for good. The Old Normal economy was too precarious, too brittle and too fragile to survive the toppling of any domino, as the only Plan A "solution" was to push destabilizing extremes to new extremes, i.e. doing more of what failed spectacularly and increasing the fragility of precariously fragile systems. A short list of what's been irreversibly destabilized due to a systemic collapse in demand, exponential rise in risk and uncertainty, dependence on over-indebtedness, imploding global supply chains, structural decline in income and employment and the rapid emergence of new business models that obsolete high-cost, inefficient, sclerotic, bureaucratic monopolies include: 1. Healthcare 2. Higher education 3. Read the full article

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How The Housing Crash Will Happen - Video

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