Implode-Explode Heavy Industries news feed Tracking the many faces of the global credit implosion. en-us iehi-feed-65617 Mon, 20 Sep 2021 14:29:00 GMT Evergrande debt: Collapse could have domino effect on China properties While the struggling developers are tiny individually, compared to Evergrande, they make up about 10%-15% of the total market on aggregate, Zeng said. She warned that a collapse could result in a "systemic" spillover to other parts of the economy.


Some economists have warned that the collapse of Evergrande could become China's "Lehman moment" -- a reference to the bankruptcy of Lehman Brothers as a result of the subprime mortgage crisis, which triggered the 2008 global financial crisis.

However, Capital Economics senior global economist Simon MacAdam described that narrative as "wide of the mark."

iehi-feed-65616 Mon, 20 Sep 2021 13:34:38 GMT Dow futures skid nearly 2% Monday as fear of market contagion from China's Evergrande intensifies iehi-feed-65614 Fri, 17 Sep 2021 22:20:20 GMT Growing number of U.S. suburbs now dominated by renters Of the nearly 5 million residents who moved to suburbs surrounding the 50 largest U.S. metro areas, almost 80% were renters, the analysis found. And while the ranks of suburban homeowners grew 3% between 2010 and 2019, suburban renters jumped 22% over that period. 

Overall, roughly a quarter of the more than 1,100 suburbs near the nation's 50 largest metro areas are renter-dominated, according to Rent Cafe. Some 21 million people rented their homes in the suburbs as of 2019, up from 17 million a decade ago.

Millennials and members of Generation Z account for most suburban renters, Census data show. Rent Cafe notes that 55% of suburban renters are younger than 45, with median household earnings of around $50,000.

Meanwhile, the pandemic is expected to further fuel the shift away from suburban homeownership in favor of renting. Remote work opportunities have generated more interest in suburban areas within striking distance of cities.

iehi-feed-65612 Fri, 03 Sep 2021 17:19:17 GMT Eviction Moratoriums Force Landlords To Liquidate Properties iehi-feed-65611 Thu, 02 Sep 2021 18:12:51 GMT Foreclosure Moratorium Alert! Homeowners Scramble To Find Help iehi-feed-65610 Sun, 08 Aug 2021 13:18:42 GMT Was The Great Pandemic Migration To Miami Overhyped? The Miami metro netted a loss of 42,100 people in 2020, 11% more net move-outs than in 2019, the CBRE analysis found. 

More New Yorkers did move to Florida than normal. The post office data logged 25,843 moves to Miami/Fort Lauderdale from the New York/Jersey City area in 2020. The year prior, when there was no pandemic, there'd been 20,794 similar moves.

Willett said the bump in NY-to-Miami movers represented "a meaningful increase, not just a small increase, but when you look at the grand scheme of migration into and out of South Florida, the flows from places like New York are still a very small portion of the moves to begin with."

... By far, young single urbanites made the most moves, while a demographic "GenXUrban" -- with kids, cars and mortgage payments -- made the fewest.

iehi-feed-65608 Sun, 01 Aug 2021 15:59:08 GMT Soaring Post-COVID Home Prices and the Fed So what can the Fed do about any of this? Officials, including Mr. Bullard, have suggested that it might make sense for the Fed to slow its monthly purchases of Treasury debt and mortgage-backed securities soon, and quickly, to avoid giving housing an unneeded boost by keeping mortgages so cheap.

Discussions about how and when the Fed will taper off its buying are ongoing, but most economists expect bond-buying to slow late this year or early next. That should nudge mortgage rates higher and slow the booming market a little.

But borrowing costs are likely to remain low by historical standards for years to come. Longer-term interest rates have fallen even as the Fed considers dialing back bond purchases, because investors have grown more glum about the global growth outlook. And the Fed is unlikely to lift its policy interest rate -- its more powerful tool -- away from rock bottom anytime soon.

Ideally, officials would like to see the economy return to full employment before lifting rates, and most don't expect that moment to arrive until 2023. They're unlikely to speed up the plan just to cool off housing. Fed officials have for decades maintained that bubbles are difficult to spot in real time and that monetary policy is the wrong tool to pop them.

For now, your local housing market boom is probably going to be left to its own devices -- meaning that while first time home buyers may end up paying more, they will also have an easier time financing it.

And they'll have an easier time ending up underwater whenever this boom reverses...

iehi-feed-65607 Fri, 30 Jul 2021 14:54:40 GMT Pandemic Housing Boom Is Over! iehi-feed-65606 Sat, 17 Jul 2021 16:11:21 GMT Going back to the office or permanent remote: the future of WFH iehi-feed-65598 Tue, 08 Jun 2021 17:05:33 GMT Foreclosure Warning! Lenders To Resume Foreclosures On July 1st iehi-feed-65586 Sat, 27 Mar 2021 16:01:51 GMT Select Portfolio Servicing Is Busted Jerking Around People Of Color, Again! iehi-feed-65584 Wed, 24 Mar 2021 13:24:40 GMT United Wholesale Mortgage Declares War On Rocket Mortgage iehi-feed-65580 Mon, 15 Mar 2021 14:38:24 GMT The Biden American Rescue Plan: What It Means For Housing iehi-feed-65541 Tue, 15 Dec 2020 15:52:51 GMT Are Novad Management Consulting CEO Davon Kelly And His Staff MIA? iehi-feed-65540 Tue, 15 Dec 2020 15:44:17 GMT Novad Management Consulting: Worst Reverse Mortgage Servicer Ever! iehi-feed-65539 Tue, 15 Dec 2020 15:42:51 GMT Reverse Mortgage Scam Alert! Novad And FHA Defraud US Army Veteran iehi-feed-65535 Tue, 15 Dec 2020 15:17:56 GMT Cities build way too many luxury apartments and condos. Will the pandemic change how they grow? The crisis in luxury housing is also an example of the pandemic accelerating a trend rather than creating one. Even before COVID-driven job losses forced people to downsize, developers chased luxury housing on a scale no market could match. In January, the Wall Street Journal reported that builders in the U.S. were on track to create more new units of housing in 2020 than in any year since the 1980s. The catch was the 80 percent of those expected 371,000 new rentals are Class A properties geared toward high earners. Given the high cost of land and labor, it's simply easier to turn a profit building housing for the wealthy, developers said.


But only delusions of grandeur--of slippery ideas like permanence and "placemaking," which is developer lingo for this particular kind of urban revitalization--could encourage the idea that raising entire glossy neighborhoods from scratch would make cities more livable or civically minded. And as it turns out, the things cities chased for so long are part of the reason people are turning away from them.

iehi-feed-65532 Sun, 06 Dec 2020 23:11:51 GMT Shopping for a bargain on NYC's Billionaires' Row | Financial Times Over the past decade, the chairman of Extell Development, New York's foremost developer of super-luxury properties, has bequeathed to the Manhattan skyline not one but two of the super-tall towers that have rechristened 57th Street as "Billionaires' Row". In one of those towers, One57, Extell sold the penthouse to computer mogul Michael Dell for a then-record $100.5m in 2014. But now the city's luxury property market is in the grip of a once-in-a-century pandemic. With foreign buyers unable or unwilling to even visit the US to shop for real estate, Barnett expects to take a hit on three of his residential projects -- he won't say which. On others he may just break even after undertaking the Herculean task of erecting a new building in Manhattan.

"It's very, very, very frustrating to build the most beautiful buildings in the world -- super quality, super finishes -- and to have to sell at a loss," he laments. But to property buyers, a luxury developer's pain may well be their gain. Across New York City, developers are cutting prices on luxury properties in a desperate attempt to move inventory. They are also picking up closing costs and throwing in other inducements for those brave -- or foolish -- enough to jump into a market and commit to a multimillion-dollar purchase just as a second wave of Covid-19 is bearing down on the city.

"It's a golden opportunity to buy now," Barnett says, estimating that "bottom fishers" were benefiting from price cuts of about 20 per cent. "The only reason not to buy now would be if you think that either the pandemic is going to continue for a much longer time, or you think that the world won't come back to more or less normal post-pandemic." Whether the market will come back -- and over what time period -- is hardly certain. New York City's luxury property sector had been mired in a slump before Covid-19. Some properties were so wildly overpriced, developers admit, that even a 20 per cent discount may not be much of a bargain, after all.


Extell's first super-tall, One57, is now flanked by a half-dozen others in and around 57th Street. Among them is Extell's soon-to-be-completed Central Park Tower, a gleaming, 1,550ft dagger in the skyline that is the city's tallest residential building and cost a reported $3bn. Most of its 179 units are unsold. Developers were encouraged by signs of a pick-up in business at the beginning of the year -- only for Covid-19 to effectively close the shop. Activity slowed to a trickle over the summer. Some buyers actually sacrificed their deposits to walk away from deals. The mood was not helped by reports -- some hysterical -- about surging crime and an exodus of wealthy residents from a decaying and dystopian metropolis. "I mean, who wants to buy in a city that everybody's trying to move out of?"

Fox quips -- quickly making clear that she does not actually believe that's the case. Business has since stabilised. From October 1 through November 15, the volume of deals in Manhattan was $2.54bn, a 2 per cent increase over the same period a year earlier, according to Serhant, a New York broker. The number of deals in the $5m to $10m range was up 7 per cent, while those in the $10m to $20m range were down 44 per cent. "The fact that the city is above the Q4 number to date in the midst of a pandemic is promising in that it shows buyers are still circling the market," says Garrett Derderian, Serhant's director of market intelligence. He predicts that the arrival of viable vaccines could be a "game changer".

iehi-feed-65530 Wed, 25 Nov 2020 16:51:30 GMT Reverse Mortgage Scam Alert! Novad And FHA Defraud US Army Veteran iehi-feed-65529 Sat, 21 Nov 2020 18:20:45 GMT Deadbeat Donald Trump Stiffs 14 Cities Out Of $2 Million For MAGA Rallies