Real Estate Industry

The Housing Crisis: 10 years later (Part 4)

This post original appeared on our buisness Facebook page on October 8, 2018.

This post original appeared on our buisness Facebook page on October 8, 2018.

With the housing market cooling in major cities, with former fed chairs predicting major corrections, mortgage fraud risk rising, no document loans increasing, its important to remember that the safe guards put in place after 2008 have been slowly dismantled.

"Those who cannot remember the past are condemned to repeat it." ~George Santayana

The stock market and jobless rates looked amazing until 1 month before the collapse... but the underlying factors had been predicting a collapse for 1.5 years.

What went so horribly wrong? https://www.thisamericanlife.org/…/another-frightening-show…

The life cycle of a toxic asset: https://www.npr.org/se…/124587240/planet-money-s-toxic-asset 
https://www.thisamericanlife.org/418/toxie


The Housing Crisis: 10 years later (Part 3)

This post original appeared on our buisness Facebook page on October 1, 2018.

This post original appeared on our buisness Facebook page on October 1, 2018.

Mortgage Backed Securities/Collateralized Debt Obligations (CDO/CLO) are big complex ideas - but are simple when broken down. These "American Life" broadcasts discuss how money is made off of bad investments and when prices go down. And the article below discusses the CLO market as of June 2018... to quote their summary:

"As of June 30, the S&P/LSTA Index imputed default rate was 1.28%, the highest level in 2018 but still very close to the levels last seen in November 2007."

All while the housing sector of CLO's sees a decline, and the spreads are very reminiscent of Nov/Oct 2007. In short, if CLO's are any indicator, a market retraction on the order of 2008 may not make it to the 2020 that experts are predicting.

A look at the 2008 CDO market: https://www.thisamericanlife.org/355/the-giant-pool-of-money

1 year later, a look at the CDO market: https://www.thisamericanlife.org/…/return-to-the-giant-pool…

A look at now and the future:

A 2018 look at the CDO market: https://www.tcw.com/…/Monthly_Commenta…/07-10-18_Loan_Review

The NYC market is currently softening, with trends similar to 2009: https://www.cnbc.com/…/nyc-real-estate-becomes-a-buyers-mar…

The Housing Crisis: 10 years later (Part 2)

This post original appeared on our buisness Facebook page on September 24, 2018.

This post original appeared on our buisness Facebook page on September 24, 2018.

This movie gives a dramatic look at what we reported last week in a fun to watch, easy to laugh through, and deeply disturbing look at how bad the bad actors in the real estate market got. When you look at this in correlation to recent data that mortgage fraud is on the rise, it paints a difficult picture to look at.

The Big Short: a true story. Its well worth the watch.
https://www.imdb.com/title/tt1596363/

A look at now and the future:

Mortgage fraud risk spikes in Q2 2018: https://www.housingwire.com/…/46820-corelogic-mortgage-frau…

Four financial experts who called the 2008's collapse and their thoughts on the current market: 
https://www-barrons-com.cdn.ampproject.org/…/financial-cris…

The $1.5 Trillion student debt crisis:
https://www.forbes.com/…/student-loan-debt-statistics-2018/…

The Housing Crisis: 10 years later (Part 1)

This post original appeared on our buisness Facebook page on September 17, 2018.

This post original appeared on our buisness Facebook page on September 17, 2018.

What does the housing market have to do with plot of the movie "The Producers?"

One of the lies that was told during/after the housing crisis of 2008 is that "No one saw it coming!" However, some did, and warned the world loudly. Many in the financial markets knew and made billions. In the coming weeks we will look at the macro housing market, by looking back, and looking at lessons that we can learn. Now 10 years later, real estate professionals nationwide are warning that the lessons we learned in 2008 are being forgotten, and that the odds of another financial collapse are rising, and estimated by the majority by Q1 2020.

A number of great reporters have done an amazing job at presenting this information to the public over the past 10 years. We encourage you to take a listen/read/watch at this compilation of how the housing market of the United States brought the world to its knees, in hopes that we can avoid another collapse. When banks are allowed to bet against homeowners... its a recipe for disaster. With mortgage fraud on the rise and the legislation (Dodd Frank) that aimed to restrict this behavior targeted for repeal, you have to ask why?

A deep look at the 2008 crisishttps://www.thisamericanlife.org/405/inside-job

Looking at now and the future:

Two former Fed Chairmen predict a crash in 2020: https://www.forbes.com/…/4-financial-savants-warn-about-t…/…

Mortgage fraud on the rise:
https://www.housingwire.com/…/46820-corelogic-mortgage-frau…

Promises of Dodd Frank repeal continue: https://www.cnbc.com/…/trump-signs-bank-bill-rolling-back-s…

Is your house too big for the new buyer pool?

Business-Growing-Pains-Can-You-Grow-Too-Fast-Small-1024x741.jpg

Recent trends in national real estate are showing a rejection of the McMansions of the 1990-2000’s in favor of smaller, more efficient homes. At Town and Country we have seen this trend in new construction especially across the region, with large homes often having much higher costs to construct than the home is valued upon completion.

Baby Boomers, who grew up during some of the largest growth in the nation’s economy, built big as a general trend. Millennial, who have come of age in the turbulence of the economy since 2000, seem to not have the appetite for these larger homes and the larger costs that come along with them.

Nationally, a bubble appears to be forming/popping among these large homes, and our data supports that this trend will have a large effect on the market of large homes in the years to come (unlike many national trends of 6% annual growth or the collapse of 2008). If you plan on building a home in the next 5 years it is an absolute necessity that you get an appraisal BEFORE you sign a contract. It may save you hundreds of thousands of dollars.

https://www.businessinsider.com/millennials-vs-baby-boomers-big-houses-real-estate-market-problems-2019-3

Mortgage Backed Securities, CDO/CLO's: Made easy

In this week’s continuation, we look back at Mortgage Backed Securities, and what they’re become.

A giant pool of money…

A giant pool of money…


Mortgage Backed Securities/Collateralized Debt Obligations (CDO/CLO) are big complex ideas - but are simple when broken down. These "American Life" broadcasts discuss how money is made off of bad investments and when prices go down. And the article below discusses the CLO market as of June 2018... to quote their summary:

"As of June 30, the S&P/LSTA Index imputed default rate was 1.28%, the highest level in 2018 but still very close to the levels last seen in November 2007."

All while the housing sector of CLO's sees a decline, and the spreads are very reminiscent of Nov/Oct 2007. In short, if CLO's are any indicator, a market retraction on the order of 2008 may not make it to the 2020 that experts are predicting.

A look at the 2008 CDO market: https://www.thisamericanlife.org/355/the-giant-pool-of-money

1 year later, a look at the CDO market: https://www.thisamericanlife.org/…/return-to-the-giant-pool…

A 2018 look at the CDO market: https://www.tcw.com/…/Monthly_Commenta…/07-10-18_Loan_Review

The NYC market is currently softening, with trends similar to 2009: https://www.cnbc.com/…/nyc-real-estate-becomes-a-buyers-mar…

A entertaining look at the most damaging financial event since the Great Depression.

A entertaining look at the most damaging financial event since the Great Depression.

This movie gives a dramatic look at what we reported last week in a fun to watch, easy to laugh through, and deeply disturbing look at how bad the bad actors in the real estate market got. When you look at this in correlation to recent data that mortgage fraud is on the rise, it paints a difficult picture to look at.

The Big Short: a true story. Its well worth the watch.
https://www.imdb.com/title/tt1596363/

Mortgage fraud risk spikes in Q2 2018: https://www.housingwire.com/…/46820-corelogic-mortgage-frau…

Four financial experts who called the 2008's collapse and their thoughts on the current market: 
https://www-barrons-com.cdn.ampproject.org/…/financial-cris…

The $1.5 Trillion student debt crisis:
https://www.forbes.com/…/student-loan-debt-statistics-2018/…

2008 vs. 2020: What can we learn from the past to protect our future?

What does the housing market have to do with plot of the movie "The Producers?"

What does the housing market have to do with plot of the movie "The Producers?"

One of the lies that was told during/after the housing crisis of 2008 is that "No one saw it coming!" However, some did, and warned the world loudly. Many in the financial markets knew and made billions. In the coming weeks we will look at the macro housing market, by looking back, and looking at lessons that we can learn. Now 10 years later, real estate professionals nationwide are warning that the lessons we learned in 2008 are being forgotten, and that the odds of another financial collapse are rising, and estimated by the majority by Q1 2020.

A number of great reporters have done an amazing job at presenting this information to the public over the past 10 years. We encourage you to take a listen/read/watch at this compilation of how the housing market of the United States brought the world to its knees, in hopes that we can avoid another collapse. When banks are allowed to bet against homeowners... its a recipe for disaster. With mortgage fraud on the rise and the legislation (Dodd Frank) that aimed to restrict this behavior targeted for repeal, you have to ask why?

A deep look at the 2008 crisis: https://www.thisamericanlife.org/405/inside-job

Two former Fed Chairmen predict a crash in 2020:  https://www.forbes.com/sites/lawrencelight/2018/07/31/4-financial-savants-warn-about-the-great-crash-of-2020/#2de307cc6197

Mortgage fraud on the rise:
https://www.housingwire.com/articles/46820-corelogic-mortgage-fraud-risk-spiked-in-the-second-quarter?utm_source=dlvr.it&utm_medium=twitter&utm_campaign=housingwire

Promises of Dodd Frank repeal continue:  https://www.cnbc.com/2018/05/24/trump-signs-bank-bill-rolling-back-some-dodd-frank-regulations.html