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Economics & Trade

They better. The Feds been signaling it for months and every economist is on board with it.
 
Housing prices are driving inflation but keeping interest rates high is the solution?

Seems like dropping interest rates is a key step toward opening up the housing market.
 
Multifamily developers can't afford to start because the projects don't pencil with current loan terms. That's driving them to the private equity market if they've got a project that there is demand for.
 
part of the issue is that we treat homelessness as a supply side problem only
 
Biff Tannen said:
Multifamily developers can't afford to start because the projects don't pencil with current loan terms. That's driving them to the private equity market if they've got a project that there is demand for.
Click to expand...

Can you please walk us through the economics of penciling?
 
I can't tell if you're being sarcastic, but the capital costs and construction costs are higher than the value of the project upon completion. Especially when buyers are going to purchase at an 80%+ loan-to-value and the cap rate is affected by the mortgage rate. Institutional grade apartments were selling at 3% cap rates a few years ago, based on projected lease-up, before completion of construction. Same property now would be a 4+% cap, stabilized, resulting in a lower value, despite higher development costs. Development does not pencil. Loan doesn't exit. Bank will not loan. Developer sits on land.
 
Rates reacted to the problem with that bank in NY. The Fed cannot create problems for these banks. SIVB was not a failed bank….it got shredded by Fed Policy and the timing of their inflows. The Fed has to be careful.
wages up over inflation. GOOD THING maybe cut Musk and zukerburgs compensation. This gilded age shit of hammering labor is a mistake.
 
Greedflation is killing the view of Biden’s economy. It’s BS done by these companies that decided that Americans will still pay inflated prices. Why would they drop them…making banging profits every quarter!
 
warak said:
Greedflation is killing the view of Biden’s economy. It’s BS done by these companies that decided that Americans will still pay inflated prices. Why would they drop them…making banging profits every quarter!
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They blame Biden for corporate greed but they’d all him a communist for trying to fix it by stabilizing prices.
 
PhDeac said:
They blame Biden for corporate greed but they’d all him a communist for trying to fix it by stabilizing prices.
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It’s horseshit! I would say they did it to get the big tax breaks again, but I doubt any of them think they need fucking tRump. He is a fool to be used at their will and he will bend over for them…and the magas think he is working for them, one of the greatest dRump cons.
 
I googled realtors collusion and I'm not sure what we're talking about. Lots of results.
 
In general, we need realtors because realtors work hard to make sure we need realtors.
 
Deacfan2009 said:
I googled realtors collusion and I'm not sure what we're talking about. Lots of results.
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www.nytimes.com

Home Sellers Win $1.8 Billion After Jury Finds Conspiracy Among Realtors

The influential National Association of Realtors and several brokerages were ordered to pay damages to home sellers who said they were forced to pay excessive fees to real estate agents.
www.nytimes.com www.nytimes.com

ruling from fall 2023

saw that the brokerage group was appealing to the supreme court to rule on this
 
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