Celebrate The Good News Everyone!!!

[The Rabbi]

New Furniture Orders and Shipments dipped in March by 1%. Which leaves me to conclude that no one is actually living in these homes which are being purchased.

Good to know that speculators are still willing to do their part in propping up the economy.

No, people are fleeing 2% 10-year Treasuries and borrowing mortgage money at 4% with the idea housing will improve at 5%. The entire "improvement" is a fake, caused by unprecedented amounts of dollars being force fed into the system. As soon as the Fed takes its foot off the gas you will see asset prices deflate like nothing before.

 

[LoneLaugher]

You can always hope, Ribeye.

 

[The Rabbi]

You can always hope, Ribeye.

Fuck you. Go and "service" some construction workers.

 

[LoneLaugher]

You can always hope, Ribeye.

Fuck you. Go and "service" some construction workers.

You seem upset. Something bothering you?

 

[AmazonTania]

It could, but that isn't the case here. Many of these homes are unoccupied, with at least more than 11% homeowner units and more than 20% rental units.

OP was referencing a blurb about housing starts in May. I'd guess none of them are occupied yet, they are probably still being framed.

Furniture sales in March certainly wouldn't impact a house started in May.

The statistics I mentioned earlier were just Orders and Shipments. Sales are another matter, but they are down as well. Furniture sales have been steadily declining all year, with sales dropping -0.8% in April and -0.5% in May.

Either way, orders are down. Shipments are down. Sales are down.

I've been bought two homes in my life but looked at dozens each time, never viewed one available furnished. I'm aware these homes exist, but I'd guess they are by far the minority.

I'm just not convinced seeing a 1% dip in new furniture sales should lead one to conclude none of the homes being sold are actually occupied.

Majority of the homes which actually need furnishing are newer homes or homes which generally are being moved into. Furniture sales are not increasing, but the exact opposite. Majority of these homes which are being sold are being sold by speculators, but very little is actually happening to these homes.

 

[AmazonTania]

New Furniture Orders and Shipments dipped in March by 1%. Which leaves me to conclude that no one is actually living in these homes which are being purchased.

Good to know that speculators are still willing to do their part in propping up the economy.

No, people are fleeing 2% 10-year Treasuries and borrowing mortgage money at 4% with the idea housing will improve at 5%. The entire "improvement" is a fake, caused by unprecedented amounts of dollars being force fed into the system. As soon as the Fed takes its foot off the gas you will see asset prices deflate like nothing before.

Yields are increasing, as well as Mortgage Rates, but I don't think this has to do with people fleeing the bond market into the mortgage market. Bank foreclosures are really picking up, as banks are more optimistic on the housing market believe there are bidders out in the market.

When you combined the increase foreclosures with the speculation homes which are eventually going to start selling, your going to have more sellers and not as many buyers. The real buyers are ultimately going to be priced out of the market.

 

[SteadyMercury]

Majority of these homes which are being sold are being sold by speculators, but very little is actually happening to these homes.

So you're saying all of the homes are being bought by speculators, most are also being sold by speculators?

I recently saw 30% as a number for percentage of recent home sales that are speculator driven. Where do you get your info that it is so much higher?

 

[AmazonTania]

Majority of these homes which are being sold are being sold by speculators, but very little is actually happening to these homes.

So you're saying all of the homes are being bought by speculators, most are also being sold by speculators?

I recently saw 30% as a number for percentage of recent home sales that are speculator driven. Where do you get your info that it is so much higher?

I'm saying majority of the homes which are being sold by Speculators are not having anything done to these homes.

As for how many Real Estate Transactions are being conducted by speculators. I don't know that. According to the Profiles of Home Buyers and Sellers, only 9 percent of FSBO. The All Cash Deals depends on the area. Phoenix has these transactions closer to the 50's.

 

[SteadyMercury]

That would make sense. I'd assume the areas that took the biggest price dive like Phoenix, Las Vegas, etc. would have the higher rates of speculator activity as a percentage of home sale transactions.

But I think it would be interesting to know what percentage of home sales actually involve a person/family having intent to occupy the property.