Split... I spend a good bit of time in the real estate industry now... the bubble burst is on the horizon. I see SO MANY listings that include "Price Cut" in the first caption. The percent of home listings that include the cut has increased measurably in the past 3 months... and there are many more that will have to "cut" their price if they really want to sell!! This always happens before the burst... because these rate hikes have escalated to a level which has priced out many would-be home buyers. The monthly carrying cost for interest alone either puts some people in a negative cash flow position (which causes them to take pain in other expense areas... which they don't want to do) or at breakeven... which makes them lose sleep at night. Tensions have been running high since the pandemic began and continue to get worse... so many fixed costs for the average Joe are no longer fixed... they keep escalating to levels never seen before by many people.
Cash is King... it was yesterday, it is today and will be tomorrow... ALWAYS.
The COOP BOD's, if smart, will protect their cash position to weather what might be oncoming storms that will make today, seem mild.
Until we hit bottom, anything can happen. Not one person saw gas at $5+ per gallon. Imagine if one year ago someone on this board said gas was going to $5 and beyond... they would have been laughed at and ignored.
Time to put the seat belts on and at least be ready for more big hits... who knows... we went from no baby formula (SMH)... to high gas prices now... to some of the most insane comments being made by many in the public forum. THIS... is the new normal... crazy times... and crazy talk.
COOP is not stupid... they realize that although rate hikes help them... they also put a big damper on new loans. In the end, I believe COOP will be fine... but for now, the PPS will not be what most want.
AIMHO, STRIKE
