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Economic News

Time, Time, Time is on Your Side as long as you own a time machine

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In the last two days I have had calls from several people not realizing it’s 2010. Is there a real estate/mortgage time machine out there that people are finding and jumping into?

The first person wanted 100% financing on a $1,400,000 property that was going to be owner occupied with credit scores in the low six-hundreds.

Her premise was that the county had it worth $1,800,000 so she had “equity.”

(Note: lenders always took the lower of appraised value or sale price and never looked at what a county would assess a place for!)

Another occupant of the time machine was someone saying that they lived in a place outside Philadelphia a few years ago and wanted to see how to buy a place there now.

I was calling her at a New York phone number that was a land line home phone.

When asked if she had a job in the Philly area, she said no and I had to explain that she needed to buy it as an investor with at least 20% down. She said she would research more and hung up.

So, these two phone lets me know that the time machine exists but makes me wonder who’s in there with these people. Could it be the old Indy mac and Countrywide loan officers that took these types of loans?

Wow! Now we know where they are. They work at the Time Machine sales company.

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15 Comments

15 Comments

  1. Benn Rosales

    July 14, 2010 at 11:10 am

    Fred, we must find that time machine ourselves and go back! I miss indy and countrywide! Oh the good ol days! While we’re at it, we should probably grab some stock in the oil spill clean up sector. 🙂

  2. Fred Romano

    July 14, 2010 at 12:51 pm

    You can count me in! I want a ride in that time machine of yours too 🙂

  3. Joe Loomer

    July 14, 2010 at 9:33 pm

    Great post, Fred, it’s funny the differences in locations – in our area, tax values are typically much lower than FMV in one county (Columbia), pretty much accurate in another (Richmond), and irrelevant in others. That one line caught me – how different it is – and how hyperlocal real estate truly is.

    To the thrust of the post I would say the number one issue my agents face these days is the oblivious approach to purchasing power – buyers believing just because they want to buy that their particular worthiness to purchase should not be a consideration.

    Navy Chief, Navy Pride

    • Benn Rosales

      July 14, 2010 at 10:00 pm

      hey Joe, log out and just enter your twitter username, not the link or @

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Economic News

Boomers retirement may be the true reason behind the labor shortage

(ECONOMY) Millennials and Gen Z were quick to be blamed for the labor shortage, citing lazy work ethic- the cause could actually be Boomers retirement.

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Older man pictured in cafe with laptop nearby representing boomers retirement discrimination.

In July, we reported on the Great Resignation. With record numbers of resignations, there’s a huge labor shortage in the United States. Although there were many speculations about the reasons why, from “lazy” millennials to the number of deaths from Covid. Just recently, CNN reported that in November another 3.6 million Americans left the labor force. It’s been suggested that the younger generations don’t want to work but retiring Boomers might be the bigger culprit.

Why Boomers are leaving the labor force

CNN Business reports that 90% of the Americans who left the workplace were over 55 years old. It’s now being suggested that many of the people who have left the labor force since the beginning of the pandemic were older Americans, not Millennials or Gen Z, as we originally thought. Here are the reasons why:

  • Boomers are more concerned about catching COVID-19 than their younger counterparts, so they aren’t returning to work. Boomers are less willing to risk their health.
  • The robust real estate market has benefitted Boomers, who have more equity in their homes. Boomers have more options on the table than just returning to work.
  • Employers aren’t creating or posting jobs that lure people out of retirement or those near retirement age.

As Boomers retire, how does this impact the overall labor economy?

According to CNN Business, there are signs that the labor shortage is abating. Employers are starting to see record number of applicants to most posted jobs. FedEx, for example, just got 111,000 applications in one week, the highest it has ever recorded. The U.S. Bureau of Labor Statistics projects that the pandemic-induced increase in retirement is only temporary. People who retired due to the risk of the pandemic will return to work as new strategies emerge to reduce the risk to their health. With new varients popping up, we will have to keep an eye on how the trend ultimately plays out.

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Economic News

Is the real estate industry endorsing Carson’s nomination to HUD?

(BUSINESS NEWS) Ben Carson’s initial appointment to HUD was controversial given his lack of experience in housing, but what is the pulse now?

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NAR strongly backs Dr. Carson’s nomination

When President-Elect Donald Trump put forth Dr. Ben Carson’s name as the nominee for Secretary of Housing and Urban Development, NAR President William E. Brown said, “While we’ve made great strides in recent years, far more can be done to put the dream of homeownership in reach for more Americans.”

At the time of nomination, the National Association of Realtors (the largest trade organization in the nation) offered a positive tone regarding Dr. Carson and said the industry looks forward to working with him. But does that hold true today?

The confirmation hearings yesterday were far less controversial than one would expect, especially in light of how many initially reacted to his nomination. Given his lack of experience in housing, questions seemed to often center around protecting the LGBT community and veterans, both of which he pledged to support.

In fact, Dr. Carson said the Fair Housing Act is “one of the best pieces of legislation we’ve ever had in this country,” promising to issue a “world-class plan” for housing upon his confirmation…

>>>>>Click to continue reading…<<<<<

#CarsonHUD

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Economic News

Job openings hit 14-year high, signaling economic improvement

The volume of job openings is improving, but not across all industries. The overall economy is improving, but not evenly across all career paths.

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young executives

job openings

Job openings hit a high point

To understand the overall business climate, the U.S. Labor Department studies employment, today releasing data specific to job vacancies. According to the department’s Job Openings and Labor Turnover Survey (JOLT) for April, job openings rose to 5.38 million, the highest seen since December 2000, and a significant jump from March’s 5.11 million vacancies. Although a lagging indicator, it shows strength in the labor market.

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The Labor Department reports that the number of hires in April fell to 5 million, which indicates a weak point in the strong report, and although the volume remains near recent highs, this indicates a talent gap and highlights the number of people who have left the labor market and given up on looking for a job.

Good news, bad news, depending on your profession

That said, another recent Department report notes that employers added 221,000 jobs in April and 280,000 in May, but the additions are not evenly spread across industries. Construction jobs rose in April, but dipped in professional and business services, hospitality, trade, and transportation utilities. In other words, white collar jobs are down, blue collar jobs are up, which is good or bad news depending on your profession.

Additionally, the volume of people quitting their jobs was 2.7 million in April compared to the seven-year high of 2.8 million in March. Economists follow this number as a metric for gauging employee confidence in finding their next job.

What’s next

If you’re in the market for a job, there are an increasing number of openings, so your chance of getting hired is improving, but there is a caveat – not all industries are enjoying improvement.

If you’re hiring talent, you’ll still get endless resumes, but there appears to be a growing talent gap for non-labor jobs, so you’re not alone in struggling to find the right candidate.

Economists suspect the jobs market will continue to improve as a whole, but this data does not pertain to every industry.

#JobOpenings

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