Market Update November 10, 2021

11/09/21 TORNADO WARNING SURVIVORS
In case you didn’t get yesterday’s tornado alert: “Meteorologists suspected that a severe thunderstorm, capable of producing a tornado, was detected near Seabeck.”

The tornado didn’t ultimately materialize, but [above] is what it looked like.

HOLIDAY SLOWDOWN IS UPON US
Real estate is cooling off a bit, both in terms of activity, price movement, and anything “breaking-news” worthy. So, out of respect to your time, I’ve included some pertinent articles that I’ve been keeping a close watch on.

Yellen: Federal Reserve won’t allow inflation to reach 1970s levels.
Choice quote: “Yellen sought to assure that the inflation situation will be ‘watched carefully.’ She said the Federal Reserve ‘wouldn’t permit’ a return to the double-digit inflation levels seen in the 1970s.”

…MEANWHILE……MEANWHILE…

Wholesale prices rose 8.6% year over year in October, tied for highest ever
Choice quote: “… the Fed has conceded that inflation pressures are lasting longer than thought… Goldman Sachs economists over the weekend noted the ‘inflation overshoot will likely get worse before it gets better.'”

…IT’S NOT JUST HERE……IT’S NOT JUST HERE…

China has a big inflation
problem and it’s pushing up
prices worldwide
Choice quote: “Vegetable prices
jumped 16% in October, mainly due
to heavy rainfall and rising
transportation costs… Gasoline and
diesel prices rose more than 30%”

34% of home purchases in 3Q 2021 were all cash.
Choice quote: “Institutional investors were extremely active. They represented 7.3% of all SFH and condo buys in the third quarter.”

…I WONDER IF IT’S TIED TO THIS……I WONDER IF IT’S TIED TO THIS…

Building and Renting Single- Family Homes Is Top-Performing Investment
Choice Quote: “Close to 100,000 built-to-rent homes will have started construction this year… Investors have poured about $30 billion in debt and equity into the sector in 2021, with many billions more in future commitments.”

…OK LAST ONE I PROMISE……OK LAST ONE I PROMISE…

Evergrande teeters on edge of default as $148 mln payment falls due
Choice Quote: “It would be quite a surprise if the funds do not flow to the trustee in the requisite timeframe given the immediate cross-default and ripple effect on suppliers and the wider People’s Republic of China real estate market.”

Now go and impress your friends with the breadth of information!

I expect the both locally and nationally news cycle will be rather slow for the next few months. If you’d like me to cover a topic that you’re curious about, such as,”What are Non-Fungible Tokens (NFTs)?” or “Is it worth to build an ADU?” please let me know.