Canada bans foreign home buyers for two years to cool its housing market

Hyperinflation train leaving the station. https://t.co/iKx9yV8SyL

— Jordan Schachtel @ dossier.substack.com (@JordanSchachtel) April 9, 2022

Gold prices soar

Gold prices send Thai, Indian buyers into frenzy as war stokes inflation https://t.co/JvR45LqOvi via @scmpnews

— Emerging Markets Capital (@EMC_Asia) March 24, 2022

Average new home sales price rises above $500K for the first time ever

Average new home sales price rises above $500K for the first time ever

— zerohedge (@zerohedge) March 23, 2022

President Manchin Doin' Work. Blocked another fucking Obama Commie from the FOMC board

President Manchin Doin' Work. Blocked another fucking Obama Commie from the FOMC board. Go Go Joe!  https://t.co/lWiW3t00fZ

— Tom Luongo (Mr. Ungovernable) (@TFL1728) March 14, 2022

lowest unemployment rates are led by Republican governors.

NEW: 17 of the top 20 states with the lowest unemployment rates are led by Republican governors. pic.twitter.com/aAzFUAU8Sb

— RNC Research (@RNCResearch) March 14, 2022

"entire streets that were rental houses."

Thank you, Lew Rockwell.

Writes Greg Privette:

Hi Lew,

I read a housing market blog regularly. 

The gentleman who runs the blog posts paragraphs from various articles along with links to the original in case you want to read the entire thing. I am seeing article excerpts like the following regularly:

A report from WGHP on North Carolina. 

Investment firms are scooping up more and more homes for sale in the Triad. Diane Spivack, a resident of Brightwood Farm, started asking herself who her neighbors were when she saw some people on her street not maintaining their homes or abiding by the HOA code. She quickly discovered more than 100 of the over 600 homes in her neighborhood aren’t owned by a person or family but by a handful of hedge funds and investment groups. The homes are then rented to single families.

After the last housing melt down a lot of the housing stock that had come into being during the late 90’s and early 2000’s wound up being owned by banks and equity firms and became rentals. When I was looking for a new place to rent about five years ago, I found what appeared to be nearly entire streets that were rental houses. They were managed by far off property management firms. The only difference this time is the houses are being bought up ahead of the crash by equity firms. When money is “free” they do not care what they pay. A lot of housing is moving to ownership by these firms. The process is additionally creating a bigger downstream problem by raising the price of houses so the rubes who buy now are even farther underwater than they otherwise would be, making them more susceptible to losing the house during the next crash. Yet more housing stock to wind up in the hands of the banks to be sold off cheap to the equity firms while the taxpayers bail out the banks. A truly viscous cycle with the final result being “You will own nothing and be happy”.

 

RENTALS INCREASE BY 3.6% ACROSS THE U.S.

Thanks to Martin Armstrong

Freddie Mac’s annual Multifamily Outlook report foresees rent rising by 3.6% across the US in 2022. “Given the robust demand for housing this year, we believe that upward price pressure for both rental and for-sale housing will continue in the short term as we continue to experience an overall housing shortage across all housing types,” the report noted. Furthermore, as CPI data is lagged, the sharp increase in rent prices has not fully factored in inflation. “We believe the sharp increase in housing costs captured by the CPI over the past two months is likely just the beginning.”

The report stated that consumers believe inflation will decline over the next five years, but expectations for 2022 have increased by 50 bps to 3%. For the 12 months ending in October 2021, rents increased 14.9% on average. The report noted additional contributing factors for rising demand:

Renters who would have moved last year who did not due to the pandemic

Two years’ worth of college graduates who are leaving home for the first time

Professionally managed units (which this data is derived from) were more able to adapt to changing conditions brought on by the pandemic than smaller operators and therefore more likely to capture the demand than smaller operators

A reallocation of budget toward housing from government stimulus or cutting other expenses during the pandemic

Former roommates choosing to live on their own

High-density areas that already experienced a pandemic exodus are expected to have the lowest growth rates. Rent is expected to drastically rise above the national average in the following cities:

Phoenix: 7.6%

Las Vegas: 7.0%

Tampa, Fla.: 6.9%

Tuscon, Ariz.: 6.5%

Albuquerque, N.M.: 6.2%

Atlanta: 5.9%

Sacramento, Calif.: 5.8%

Riverside, Calif.: 5.7%

West Palm Beach, Fla.: 5.5%

Fort Lauderdale, Fla.: 5.2%