What I’m Reading
June Gloom: CRE market participants are increasingly negative as capital market woes take a toll. RCLCO released a new report saying that sentiment of real estate professionals has slipped nearly down to the range the firm associates with market distress and recession. Globe Street Today’s CRE market conditions are almost the exact inverse of the early days of COVID when property fundamentals were challenged but capital markets were a fire hose of liquidity. Today, property fundamentals are still generally strong but capital markets are a dumpster fire.
Keep It: Inventories are getting to the point where reverse logistics (returns) are becoming cost prohibitive. As a result, stores are weighing the concept of refunds without returns. CNN Business This seems as though it has some very negative behavioral incentives once word gets out….
Last One Out Please Turn the Lights Out: Mortgage volume is slowing to a drip and home lending employees are facing the risk of job cuts. Bloomberg
Flipping Out: Home flipping hit its highest level since 2000 in the 1st Quarter. However, profit margins hit a 13-year low. Attom The data for the 1st quarter didn’t even capture the full increase in mortgage rates, which will result in further pressure. This will not end well.
Running on Empty: Refining capacity in the U.S. is about a million barrels a day below what it was prior to the pandemic. That’s left the country unable to meet its fuel needs as more people are commuting, traveling and driving as they emerge from the throes of the pandemic. NPR
Chart of the Day
“When lots of expensive homes sell & the bottom falls straight out of the cheap end of the market, median prices will go up. But that is not a picture of a hot market”
Source: Financial Times
WTF
Peep Show Part I: A man on a Southwest flight reportedly AirDropped a sexually explicit photo to all passengers on Saturday — leading to police waiting to escort him off the plane upon his arrival. NY Post
Peep Show Part II: A man was arrested after allegedly exposing himself in a Dollar Tree store because Florida. News Channel 8
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
Visit us at RanchHarbor.com