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☆ A fund manager who's outperformed 99% of his peers over the last 10 years shares 2 beaten-down homebuilder stocks he's betting on — and says the housing market is set to turn around next year with mor
▼ + stars: | 2022-12-06 | by ( William Edwards | ) www.businessinsider.com time to read: +4 min

The US housing market has dramatically slowed this year. This is because Smead sees a recession unfolding next year as his base case scenario, in which case mortgage rates would reverse. Yields on 10-year Treasury notes usually fall in a recession, as investors flock toward safehaven assets. "And you're more likely to get to 5.3% mortgage rates if you have a recession." Falling mortgage rates will raise affordability for prospective homebuyers, and will wake up demand that has been waiting on the sidelines for better buying conditions, he said.

☆ Remote Work Is Gutting Downtowns, Will Cost Cities $453 Billion
▼ + stars: | 2022-12-06 | by ( Emil Skandul | ) www.businessinsider.com time to read: +13 min

Even 2 1/2 years later, most city downtowns aren't back to where they were prepandemic. Without more-robust policies to address failing downtowns, cities are going to start hurting. The increased cancellations of office leases have cratered the office real-estate market. Since 2016, only 112 commercial office spaces in the US have been converted, while 85 projects are underway or have been announced, according to CBRE's data. The birth of the central social districtTo avoid a commercial real-estate apocalypse, cities will need to streamline conversions.

☆ Buy this online real estate stock now before the sector rebounds in 2024, UBS says
▼ + stars: | 2022-12-02 | by ( Carmen Reinicke | ) www.cnbc.com time to read: +2 min

Investors should consider loading up shares of online real estate stock Zillow now as the sector is poised for a rebound in 2024, according to UBS. Housing rebound For Zillow, UBS expects that as the macroeconomic backdrop improves, it will be able to make tangible progress towards its goals and see its valuation multiple re-rate higher. Currently, shares price in 16% revenue growth, and UBS forecasts Zillow can grow revenue at 18.5% in 2024 and 15% in 2025. This has also given investors a solid entry point to buy shares as they've slumped more than the broader market so far this year. "We see the current period of maximum uncertainty as a good entry point for Buy-rated Zillow shares for longer-term investors," wrote Walmsley.

☆ Housing has a fair amount of room to fall, says Morgan Stanley's Egan
▼ + stars: | 2022-12-01 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailHousing has a fair amount of room to fall, says Morgan Stanley's EganJim Egan, Morgan Stanley U.S. housing strategist, joins 'Power Lunch' to discuss why the housing market is going to get worse, why housing starts and sales are poised to fall even lower and how insurance prices play into the housing market.

☆ Watch CNBC's full interview with Morgan Stanley's Jim Egan
▼ + stars: | 2022-12-01 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with Morgan Stanley's Jim EganJim Egan, Morgan Stanley U.S. housing strategist, joins 'Power Lunch' to discuss why the housing market is going to get worse, why housing starts and sales are poised to fall lower and how insurance prices play into the housing market.

☆ Private equity is starting to bet big on the cloud. Here's why firms like Blackstone are making the move.
▼ + stars: | 2022-11-30 | by ( Bianca Chan | ) www.businessinsider.com time to read: +7 min

Like other Wall Street firms upended by the technology, PE firms' motivation to make the move is tied to harnessing the copious amounts of data they manage. GFT works with more than 20 private-equity firms for digital transformation, including a handful of tier-one PE companies, he said. Some PE firms have tried to leverage their scale for pricing discounts among cloud providers, Mahenthiran said. Major cloud providers, like AWS, Microsoft Azure, and Google Cloud Platform, have been hungry for more Wall Street market share. That hasn't stopped PE firms from trying to hire out data-science and cloud teams to help front-office researchers find new opportunities and oversee internal cloud infrastructure, Vyas said.

☆ US government entities Fannie Mae and Freddie Mac were just cleared to purchase mortgages of over $1 million for the first time because home prices are still so high
▼ + stars: | 2022-11-29 | by ( Kelsey Neubauer | ) www.businessinsider.com time to read: +3 min

Fannie Mae and Freddie Mac help make mortgages available by purchasing them from lenders. The limit will top $1 million for the first time in 2023, reflecting a new norm in US housing. Fannie and Freddie are the largest buyers of US home mortgages and are credited with providing constant liquidity in the housing market through their purchases, even during downturns. Their scope in residential markets is capped by the so-called conforming loan limit, which per a 2008 law is set in accordance to changes in home prices. Outside the priciest areas of the country — which include areas around New York, Washington, DC, and coastal California — the conforming loan limit will also rise by 12.2%, to $726,200.

☆ Home purchases by investors plunged 30% in the 3rd quarter as high prices and rising rates drive housing slump
▼ + stars: | 2022-11-22 | by ( Carla Mozée | ) www.businessinsider.com time to read: +4 min

The typical home bought by investors cost $451,975, up 6.4% from a year earlier but down from the second quarter. Meanwhile, investor purchases of high- and mid-priced homes declined more than those of low-priced houses during the July-through-September period. The potential for substantial declines in home prices puts investors at risk of losing money, stoking their pullback in purchases, Redfin said. Investors lost market share for the second consecutive quarter in buying about 17.5% of all homes that were purchased. Those buying rates were higher in the second quarter and a year ago, at 19.5% and 18.2%, respectively, but were still up from 15% before the pandemic.

☆ U.S. housing faces longer descent to basement
▼ + stars: | 2022-11-22 | by ( Ben Winck | ) www.reuters.com time to read: +3 min

NEW YORK, Nov 22 (Reuters Breakingviews) - The U.S. housing market is destined to keep sliding. The highest mortgage rates in 15 years have stifled demand, leading the pace of existing home sales to slow 31% since January. An influx of new supply should depress prices from pandemic-era highs, but affordability will be squeezed well into 2023. With existing owners locked into lower mortgage rates, they’re unlikely to put their homes up for sale, curbing supply. Housing starts for single-family homes decelerated to a seasonally adjusted annual rate of 855,000 units in October, the Census Bureau said on Nov. 18.

☆ China property stocks surged amid warnings of weak reality, high expectations
▼ + stars: | 2022-11-21 | by ( Evelyn Cheng | ) www.cnbc.com time to read: +5 min

China's housing prices fell in October due primarily to falling prices in less developed, so-called Tier-3 cities, according to Goldman Sachs analysis of official data. Future Publishing | Future Publishing | Getty ImagesBEIJING — China's real estate sector isn't yet poised for a quick recovery, despite a rally this month in stocks of major property developers. Last week, property developer stocks surged after news the central bank and banking regulator issued measures that encouraged banks to help the real estate industry. A drawn-out recoveryAnalysts differ on when China's property market can recover. "I think the real estate sector will become lesser of a drag to the economy in 2023," Tommy Wu, senior China economist at Commerzbank AG, said Wednesday.

☆ Here's why the Fed may have won already but is still acting like nothing has improved
▼ + stars: | 2022-11-20 | by ( Jim Cramer | ) www.cnbc.com time to read: +9 min

We can bet that they will be one-upping each other about how high they want to take fed funds, the overnight bank lending rate. They seem to want to ignore anything that's succeeded since the Fed's rate increase cycle began back in March. I think that, again, if the Fed were to wait through Christmas they would see the layoffs and the corporate failures. One thing that's for certain, the buyers of the 2-year may be more sensitive to the data than the Fed. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.

☆ U.S. existing home sales plunge; tight inventory keeps prices rising
▼ + stars: | 2022-11-18 | by ( Lucia Mutikani | ) www.reuters.com time to read: +5 min

"The combination of rising house prices and mortgage rates have sent housing affordability plummeting," said Daniel Vielhaber, an economist at Nationwide in Columbus, Ohio. The 30-year fixed mortgage rate breached 7% in October for the first time since 2002, according to data from mortgage finance agency Freddie Mac. "A deteriorating housing market, nagging inflation and an aggressive Fed puts the economy on unsure footing for 2023." Even as demand weakens, housing supply remains tight, limiting the slowdown in house price inflation. The median existing house price increased 6.6% from a year earlier to $379,100 in October.

☆ U.S. existing home sales dive; tight supply keeps prices elevated
▼ + stars: | 2022-11-18 | by ( Lucia Mutikani | ) www.reuters.com time to read: +4 min

"Higher mortgage rates and still-elevated prices remain key constraints for home sales," said Rubeela Farooqi, chief U.S. economist at High Frequency Economics in White Plains, New York. Existing home sales dropped 5.9% to a seasonally adjusted annual rate of 4.43 million units last month. Economists polled by Reuters had forecast home sales would tumble to a rate of 4.38 million units. The 30-year fixed mortgage rate breached 7% in October for the first time since 2002, according to data from mortgage finance agency Freddie Mac. At October's sales pace, it would take 3.3 months to exhaust the current inventory of existing homes, up from 2.4 months a year ago.

☆ Morning Bid: Cat, mouse and 5%
▼ + stars: | 2022-11-18 | by ( ) www.reuters.com time to read: +4 min

A look at the day ahead in U.S. and global markets from Mike Dolan. The cat-and-mouse game between the Fed and financial markets has intensified around 5% peak interest rates next year as next week's Thanksgiving holiday hoves into view. In Europe, the euro , euro bond yields and bank stocks (.SX7P) climbed on Friday as the European Central Bank prepared for the start the biggest withdrawal of cash from the euro zone's banking system in its short history. The crypto world continued to lick its wounds amid unfolding revelations and reverberations surrounding the collapse of exchange FTX. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ U.S. housing starts tumble in October amid soaring mortgage rates
▼ + stars: | 2022-11-17 | by ( ) www.reuters.com time to read: +2 min

Housing starts decreased 4.2% to a seasonally adjusted annual rate of 1.425 million units last month, the Commerce Department reported on Thursday. Data for September was revised higher to a rate of 1.488 million units from the previously reported 1.439 million units. Multi-family housing construction has fared better as the soaring mortgage rates force many potential home buyers to remain renters. Mortgage rates have jumped in response to rampant inflation, which has compelled the Federal Reserve to unleash the fastest interest rate-hiking cycle since the 1980s. The 30-year fixed mortgage rate is averaging above 7%, the highest since 2002, according to data from mortgage finance agency Freddie Mac.

☆ Morning Bid: Bear Hunt
▼ + stars: | 2022-11-17 | by ( ) www.reuters.com time to read: +5 min

Long-term sovereign bond yields have been falling sharply all week in advance of finance minister Jeremy Hunt's new budget, dragged down largely by U.S. disinflation hopes. UK 10- and 30-year gilt yields outperformed, however, dropping to their lowest since early September before backing up slightly on Thursday. U.S. housing starts numbers out later will give another glimpse at the state of the ailing property sector. Reverberations continued around the world from this month's latest implosion in the crypto universe and the failure of the FTX exchange. Major crypto player Genesis Global Capital suspended customer redemptions in its lending business on Wednesday, citing the FTX collapse.

LONDON, Nov 16 (Reuters) - If financial markets bore the brunt of this year's interest rate shock, housing now stands in the firing line. With long-term U.S. fixed mortgage rates above 7% for the first time in 20 years, and more than double January rates, U.S. housing sales and starts are already feeling the heat. "We see a relatively greater risk of a meaningful rise in mortgage delinquency rates in the UK," Goldman said this month. While Australia and New Zealand have higher variable mortgage rates, British mortgage holders also have a higher vulnerability to rising joblessness. All of which bodes ill for UK house prices - although forecasts are still far from apocalyptic.

☆ Here's why Home Depot and Lowe's are booming in a housing market bust
▼ + stars: | 2022-11-16 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +3 min

Suzanne Kreiter | The Boston Globe | Getty ImagesWith rising mortgage rates, homeowners are staying in place. By the end of the first quarter of this year, before the steep runup in mortgage rates caused the housing market to falter, homeowners had a collective $11 trillion dollars in so-called tappable equity, according to Black Knight. That equity is part of a three-pronged driver of home improvement, according to the CEO of Lowe's, Marvin Ellison. "The growth rate for improvement spending will slow due to declines for existing home sales," said Robert Dietz, NAHB's chief economist. "However, an aging housing stock, work from home trends and a decline for household mobility all favor remodeling spending."

☆ Here are Wednesday's biggest analyst calls: Apple, Nvidia, Tesla, Amazon, Zoom, Walmart & more
▼ + stars: | 2022-11-16 | by ( Michael Bloom | ) www.cnbc.com time to read: +5 min

Here are Wednesday's biggest calls on Wall Street: UBS reiterates Apple as buy UBS said wait times for Apple's iPhone are hitting "extreme levels." Bank of America reiterates Amazon as buy Bank of America said Amazon is a key beneficiary of automation. UBS downgrades Advance Auto Parts to neutral from buy UBS said in its downgrade of Advance Auto Parts that it's losing share. UBS reiterates Walmart as buy UBS said the stocks is undervalued after the company's earnings report on Tuesday. Credit Suisse reiterates Nvidia as outperform After a change in analyst coverage, Credit Suisse named the tech company as a top pick. "

☆ Raymond James downgrades Home Depot, says there are challenges ahead despite solid earnings report
▼ + stars: | 2022-11-16 | by ( Sarah Min | ) www.cnbc.com time to read: +2 min

Hold off on Home Depot for now, according to Raymond James. Analyst Bobby Griffin downgraded shares of Home Depot to market perform from outperform, foreseeing challenges next year for the housing sector. Home Depot posted on Tuesday better-than-expected results for the third quarter , while reaffirming its full-year outlook. "[Any] potential decrease in home prices ... could hinder consumer's perceived return on investment in their homes following several years of record spend in the category," Griffin wrote. Still, Griffin said the long-term investment case for Home Depot remains intact, as he expects that the retailer will continue to take market share from here.

☆ Private equity is opening up to the public cloud, setting up a new battleground for AWS, Microsoft, and Google to win over Wall Street
▼ + stars: | 2022-11-15 | by ( Bianca Chan | ) www.businessinsider.com time to read: +7 min

Like other Wall Street firms upended by the technology, PE firms' motivation to make the move is tied to harnessing the copious amounts of data they manage. GFT works with more than 20 private-equity firms for digital transformation, including a handful of tier-one PE companies, he said. Some PE firms have tried to leverage their scale for pricing discounts among cloud providers, Mahenthiran said. Major cloud providers, like AWS, Microsoft Azure, and Google Cloud Platform, have been hungry for more Wall Street market share. But the wait-and-see approach has put PE companies far behind their Wall Street peers.

☆ Here's why it may take a while for housing inflation to cool off
▼ + stars: | 2022-11-14 | by ( Greg Iacurci | ) www.cnbc.com time to read: +2 min

Allison Dinner | Getty ImagesThere are signs inflation may fall further in coming months, but housing threatens to mute any improvement. The consumer price index, a key barometer of inflation, rose 7.7% in October from a year ago. That may seem counterintuitive at a time when many observers have said the U.S. is in a "housing recession." The shelter category is up 6.9% in the last year. The rental and housing markets are coolingBusà Photography | Moment | Getty ImagesWhy shelter prices lag

☆ Stock market rally will be put to test in week ahead, after yields fall and tech surges
▼ + stars: | 2022-11-11 | by ( Patti Domm | In | ) www.cnbc.com time to read: +10 min

This week, bond yields also came off their highs and were sharply lower, paving the way for gains in tech and growth shares. They include Fed Vice Chair Lael Brainard, New York Fed President John Williams and Minneapolis Fed President Neel Kashkari to name a few. Hogan said that group includes Bullard, Brainard and San Francisco Fed President Mary Daly. Many strategists are calling the move higher a bear market rally, and some expect it will fizzle in December while others say it could continue into the new year. Friday Earnings: JD.com, Foot Locker, Buckle 8:40 a.m. Boston Fed President Susan Collins 10:00 a.m.

At the COP27 climate conference in Egypt, companies and country delegates are discussing ways of enhancing the market for green bonds, or bonds that are linked to projects deemed environmentally beneficial. POPULAR DESPITE THE 'GREENIUMS'Also known as "use of proceeds bonds," green bonds involve a company or government raising money for projects considered environmentally beneficial. SUSTAINABILITY-LINKED BONDSSustainability-linked bonds, or SLBs, comprise a newer and smaller market than green bonds. SOCIAL BONDS, SDG BONDS, AND MOREBeyond bonds focused on environmental outcomes, lie pools of money for related goals around social equity or fair living standards. Social impact bonds, or impact bonds, differ from social bonds in linking financial returns to the desired outcome.

☆ Former Mayor Kirk Watson faces off against a slate of opponents in Austin, Texas' mayoral election
▼ + stars: | 2022-11-08 | by ( Hanna Kang | ) www.businessinsider.com time to read: +2 min

Six candidates are vying to be the next mayor in Austin, Texas' mayoral race: Anthony Bradshaw, Phil Campero Brual, Celia Israel, Gary Spellman, Jennifer Virden, and Kirk Watson. Polls close in the state at 7 p.m. local time. Given the state has multiple timezones, the first polls close at 8 p.m. EST and the last polls close at 9 p.m. EST. Virden is a real estate broker and former Austin City Council candidate. Watson, along with Israel, has considerable previous experience in politics: He's both a former Austin mayor and former state senator.

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