Atlantic Team

Are you looking to buy, sell, invest or rent in Hamptons real estate. If so, let the Atlantic Group be your source for what you need to know...

[*Walter Bloomberg @DeItaone]

REDFIN REPORTS HOME PRICES ARE RISING IN EVERY MAJOR METRO FOR THE FIRST TIME SINCE 2022

[The All-In Podcast @theallinpod]

$1 TRILLION of Florida Coastline Real Estate May Be Untenable

@friedberg explains:

-- there is $500B-$1T in real estate value on the FL coastline

-- avg FL homeowner pays ~1% of home value in insurance

-- that 1% is based on a disaster event happening once every 100-200 years

-- however, due to a bunch of factors, hurricanes are becoming more frequent and more severe

-- so the insurance math has changed dramatically: disaster events could happen every 20-30 years instead of 100-200

-- because of this, flood insurance costs are skyrocketing, making it untenable for most people

-- so, the state of FL has stepped to subsidize flood insurance

-- however, due to the damage from helene and milton, this program is effectively bankrupt

without subsidized flood insurance, we could see major economic and social issues, which @friedberg describes:

"So if the value of your home dips by 25%, because everyone starts selling their homes, leaving Florida, or they can't get insurance..."

"... the people that live in Florida, most of them have their net worth tied up in their home, are going to see their personal net worth wiped out or cut in half."

"... there are so many people that have put their entire net worth into their home, the value of their home is written to a point that it no longer makes sense, given the frequency at which homes are going to get destroyed."

[CNBC @CNBC]

Biden plans Hamptons trip for campaign fundraisers https://t.co/wD4mLbtxvz

[Lance Lambert @NewsLambert]

U.S. existing home sales, by year:

5.3 million - 2018
5.3 million - 2019
5.6 million - 2020
6.1 million - 2021
5.0 million - 2022
4.1 million - 2023

Goldman Sachs is forecasting....

4.1 million - 2024
4.2 million - 2025

[Dominic Chu @TheDomino]

I remember seeing tons of stories written over the last 10-15 years...advocating for renting vs. owning...how it's such a bigger headache w/ home ownership & just paying rent to someone else to handle all that stuff was the way to go.

That may or may not be the case...but owning has been a decently effective hedge against inflation 👇

[QE Infinity @StealthQE4]

Redfin CEO says housing is in a recession and he’s never seen anything like it in 20 years as CEO.

He summarized the problems well. Worth the read👇👇

Link attached below

“Last year, existing home sales fell to their lowest point in almost 30 years. The housing market froze, and it’s only just begun to thaw. Mortgage rates were the highest they’ve been in more than 20 years, and they’ve come down since, but are still high compared with those of the pandemic. In the past week or so, mortgage rates surged again, reaching their highest level in months, 7.50%. Home prices are high, too. “The cost of buying a home has gone up again, and prices haven’t come down,” Kelman said. “So the Fed keeps trying to tame inflation with rate increases, but at least one sector is untamable, and that is housing.”

It’s anxiety-inducing, he said. Housing is a basic need, and would-be buyers who held out last year are tired of waiting. Millennials who’ve delayed starting a family, putting off plans, can only wait so long, Kelman said. He’s never seen anything like it, calling it the “worst situation” for the housing market. “Housing is in this recession, and the rest of the economy is booming,” he said.
“I was the CEO during the Great Financial Crisis,” he continued. “Sales volume went down but prices did, too.” One problem fixed another, Kelman said. Usually when sales decline, prices drop too, and then sales increase later—that’s the cycle, he said. Homes become affordable again, and sales pick up because of it. This situation is very different. Interest rates are up, and sales volume has fallen through the floor, as he put it, but home prices haven’t followed. “Some of that is just this artifact of 30-year mortgages,” he said. Everything the Federal Reserve is doing has no real effect on homeowners, apart from keeping them where they are. “It actually has the perverse effect of keeping home prices high,” Kelman explained.”

[ForeGetTheScore @CooliganFields]

50,000 #bitcoin offer for a 2 bedroom NY apartment turned down

Now worth $3,500,000,000

[Atlantic Team @DEAtlanticTeam]

Well said.

[StripMallGuy @realEstateTrent]

No, that broker didn’t make that $50k in 30 days for “doing nothing”

They made it after years of:

-Learning the signs that a buyer is real
- Showing up at networking events so they can build
relationships you will benefit from
-Staying on top of industry trends so they can provide
you with an informed view
-Losing countless deals they spent non-stop hours
helping put together, to walk away with knowledge,
but not a penny
-Providing years of info and free market data
-Learning which lenders will actual close on schedule
-Learning which comps are actually relevant to you
-Knowing how to assist the appriser so that your deal, well, appraises.
-Having the knowledge to price your property correctly.

That doctor didn't make that $2k for just those 40 minutes they spent on your procedure, either.

[Paul Graham @paulg]

One thing people selling expensive things often don't grasp is that the people who can afford them are often too busy to deal with the work involved in buying them. So if you're selling expensive consumer goods, make them really easy to buy.

[Lance Lambert @NewsLambert]

#NEW Zillow issues an upward revision for its home price forecast

Zillow expects U.S. home prices to rise +3.5% between December 2023 and December 2024

Its previous 12-month outlook was +0.0%

[Atlantic Team @DEAtlanticTeam]

Great points…

[Melissa Savenko @melissasavenko]

MULTIPLE entities have tried to disrupt the commission-based, co-broked residential real estate transaction model.

Rex.
Foxton's.
Purple Bricks.
Zillow Offers.
Opendoor.

Even Redfin keeps re-making its model into a more and more traditional commission-based brokerage model.

And other options HAVE been available for decades.

FSBO.
We Buy Ugly Houses.
Assist-to-Sell.
MLS-only listing.
Limited service.
Fee for service.
Discounted commission.

There is a reason people keep coming back to the full service, commission-based model.

Selling or buying a house isn't like selling or buying any plain old commodity.

If you think real estate agents aren't worth it and you can sell your house better yourself, you do you.

But I personally am pretty tired of listening to people who clearly don't know what they are talking about asking dumb questions like "why hasn't anyone disrupted the sale of real estate yet?"

Multiple companies have tried. Based on the success - or lack thereof - of those companies, it seems most people want full service representation when buying or selling a home.

**Surfacing this as a main post, was previously a comment.

[Atlantic Team @DEAtlanticTeam]

Happy Holidays !

[CNET @CNET]

Current Mortgage Rates for Dec. 25, 2023: Rates Cool Off for Homeseekers https://t.co/9GvA6cxilF

[Atlantic Team @DEAtlanticTeam]

@XAtlanticTeam 🤣

[Atlantic Team @DEAtlanticTeam]

Happy Thanksgiving from our family to yours! 🦃

[Genevieve Roch-Decter, CFA @GRDecter]

Good Morning Everyone! U.S housing starts unexpectedly rise to a 6-month high!

New-home construction crushed expectations in November, rising by 1.56 million versus 1.36 million expected.

A remarkable 7+ standard deviation beat, according to Bloomberg.

The surge is likely tied to the decline in interest rates.

The 10-year yield, which was at +5% in October, saw a decrease to 4.2% in November.

Relaxed financial conditions directly trickling through to benefit the real economy

[Liz Ann Sonders @LizAnnSonders]

U.S. Pending Home Sales Index has fallen by 44% from its peak, which makes current drop largest maximum drawdown in history … overall level is also at lowest in history

[Atlantic Team @DEAtlanticTeam]

$ZG reporting a somewhat mixed bag for 2024…

[*Walter Bloomberg @DeItaone]

🔸Zillow Predicts More Homes for Sale, Improved Affordability in 2024

🔸Zillow: Home Buying Will Remain Expensive, So Expect Competitive Market for Homes That Need Some Work and for Single-Family Rentals

[Brian Sullivan @SullyCNBC]

Cant overstate impact of ruling just out saying National Assoc of Realtors conspired to inflate commissions.

NAR has beaten back every challenge to the realtor business model for decades.

That may now change.

Just one lawsuit but market whacking real estate related stocks.

2-3% total realtor commission on the way?

Hundreds of thousands of families rely on that income

[unusual_whales @unusual_whales]

The CEO of the National Association of Realtors has stepped down.

This week, the National Association of Realtors was found guilty of colluding to inflate or maintain high commission rates, and have been ordered to pay damages of $1.78 billion.

[Atlantic Team @DEAtlanticTeam]

@acnewsitics No joke saw her pick up a man at a real estate showing; while staying at her ex in laws house.