Today the Labor Department released the jobless claims numbers again for last week, and the claims are beginning a new trend of ticking up higher.
In the week ending June 19th, the Labor Department reports another 411,000 jobless claims filed. The previous week of 412K was revised to 418,000.
These numbers equate to roughly three and a half of fully-packed University of Michigan football stadiums.
As noted in last week’s jobless claims report, The WinePress noted that half of the country is cutting their Covid related benefits and stimulus checks because of reported labor shortages.
Crazy Housing Market Gets Even Crazier
The following report is from the Trends Journal:
A Florida real estate agent received 36 offers on a home recently. Among the offers, 13 were for more than the asking price, 12 were at least $15,000 above the asking price, six waived home inspections, four offered to rent the house back to the current owners until they moved, and 11 agreed that even if the house appraised at less than their offer, they would still give the owners the extra cash.
Surrendering the right to renegotiate if the house appraises for less than was offered means “you don’t have a right to walk away anymore,” Austin real estate agent Sean Waeiss told Business Insider.
The problem with this is, we’re not missing appraisals by $10,000 — we’re missing appraisals by $50,000, by $75,000, by $90,000.
The Florida story, related by Business Insider, and Waiess’s comment illustrates a dominant rule in today’s overheated housing market: cash is king and first-time home buyers, and those without bulging pockets, are increasingly locked out. (See “Home Prices Climb, New Starts Reach 14-Year Record,” Trends Journal, 20 April, 2021.)
Somebody between the ages of 25 and 35, they’re a first-time homebuyer, they’ve saved up a good chunk of cash for their down payment — maybe it’s $50,000, maybe it’s $100,000 — they can’t buy…right now…because they’re not cash-rich.
They could probably afford the monthly payment. They have good income. They have a good nest egg. But it’s not enough.
TRENDPOST: Not only rich households but also investment companies are laying down cash and snatching houses away from less well-heeled families, as we reported in “Invitation Homes to Buy $1 Billion Worth of Houses This Year” in our 1 June, 2021, issue.
Today’s housing market is helping to ensure that Bigs own more and more assets, while everyone else must compete for a share of the leavings.
TREND FORECAST: The housing market will remain strong since demand is much greater than supply. However, it will decline as interest rates rise, but unlike the Panic of ’08 when subprime mortgages helped crash the markets, this time, home prices will only moderately decline.
AUTHOR COMMENTARY
The rich ruleth over the poor, and the borrower is servant to the lender.
Proverbs 22:7
And the same old song and dance repeats itself, as I am sure you already know: the stock market continually sees massive gains and new record highs, and mainstream media economists on both sides of the coin are telling us that we are in a “boom!” -Oh please, give me a break.
And as The WinePress reported last week with the World Economic Forum’s partners, Blackrock, is buying it all up. Then you have to factor in that other large banks and private firms and institutions are pricing people out. Moreover, the Federal Reserve continues to create their revolving door mechanism: issue debt out of one hand while buying it up with another. So if you wondered why the housing market is not dying down and the stock market remains, these are some of the reasons why.
Why Is The Housing Market On Fire? What The Media Never Wants To Talk About
The Quickest Way To Know The Economy Is Broken Beyond Repair
Just the WEF stated: You’ll own nothing and be happy, and they ain’t playing around either.
Remember When Trump Spoke At The World Economic Forum With His ‘Good Friend’ Klaus Schwab?
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
The WinePress needs your support! If God has laid it on your heart to want to contribute, please prayerfully consider donating to this ministry. If you cannot gift a monetary donation, then please donate your fervent prayers to keep this ministry going! Thank you and may God bless you.
