Home ‘Buyers Walk Away,’ Cancelling Agreements at Record Pace Because Projected Payments Rising – ‘They Cannot Afford’ to Buy – New Redfin Data, Graphics; Plus MHVille REITs, Stocks Update
In a segment report shown below a mainstream news source – CNBC – cited Redfin. So, to round out the picture more completely, MHProNews turned to Redfin to obtain their seemingly increasingly referenced data. Following the Redfin factoids, additional manufactured housing market insights will be provided along with our Daily Business News on MHProNews equities report.
In August 2022, U.S. home prices were up 6.9% compared to last year, selling for a median price of $406,586. On average, the number of homes sold was down 18.4% year over year and there were 555,996 homes sold in August this year, down 681,386 homes sold in August last year. The national average 30 year fixed rate mortgage rate is at 5.2% and up 2.4 points year over year. [MHProNews note: that apparently errant interest rate figure (i.e.: 5.2%, etc.) is contradicted by CNBC further below].
MHProNews note: the graphics reveal that as interest rates are rising the volume of new and existing housing sales in the U.S. are declining. As a result, inventories are rising and in several markets prices on housing are dropping.
t;/a>
Then, per CNBC on 9.26.2022 is the following.
Home purchase cancellations are above 15% for the second straight month. It’s important to know the financial repercussions
by Sarah O’Brien
In August, 15.2% of home purchase agreements fell through, similar to 15.5% in July, according to a new report from Redfin.
The average mortgage rate reached 6.7% last week, up from 3.3% heading into 2022.
It’s important to know if you can walk away from your agreement without losing your deposit”
MHProNews note: compare those inbound states per the graphic from Redfin, shown above, to the latest top ten manufactured housing shipment states, per the Manufactured Housing Association for Regulatory Reform (MHARR). Note that most of the top ten manufactured housing states are ‘inbound’ migration states.
Back to the report referenced above from CNBC was the following. Note that they have framed this report as if it is advice being given to a prospective home buyer.
Amid higher interest rates and a softening housing market, home buyers are continuing to back out of purchase contracts at an elevated rate.
About 64,000 home-purchase agreements were canceled in August, according to a new report from Redfin. That’s equal to 15.2% of home contracts initiated during the month and similar to the 15.5% canceled in July. A year ago, the share was 12.1%.
If you’re considering joining the ranks of those who walk away from a deal in progress, it’s important to know whether it will cost you to do so. Or, if you haven’t yet signed a contract but are nearing that point, it’s worth determining if you can cancel at some point in a way that doesn’t result in forfeited money.
Your deposit may be at stake
Typically, buyers provide what’s called an earnest money or “good faith” deposit when an offer is made on a home, although the specifics vary from state to state. The amount is usually 1% to 5% of the purchase price but can run as high as 10% depending on the local market.
The deposit is kept in an escrow account and goes toward your down payment or other closing costs when you finalize the purchase at settlement.
In August, 15.2% of home purchase agreements fell through, similar to 15.5% in July, according to a new report from Redfin.
The average mortgage rate reached 6.7% last week, up from 3.3% heading into 2022.
It’s important to know if you can walk away from your agreement without losing your deposit.
Contingencies can help protect buyers
Given the financial risks of a broken contract, it makes sense to ensure the final purchase is contingent upon certain aspects of buying a house. Common contingencies relate to home inspection, appraisal and financing.
For example, if the inspection were to reveal problems with the house that are unacceptable to you, a home inspection contingency generally would mean you can walk away and get your deposit back. Or, if the appraisal were to fall short of the agreed-upon sale price or you cannot secure a mortgage at a rate or terms specified in the contract, you could back out without losing your money. …”
MHProNews noted several weeks ago on 8.27.2022 by citing data from the National Association of Realtors that the U.S. has entered “a housing recession.” These facts reveal a significant shift away from the sellers market in post-COVID19 pandemic declaration 2020 and into 2021. It was fueled by lower interest rates, too little inventory, high demand and often a desire to escape bigger cities for more suburban and/or lower tax jurisdictions that might also have less crime.
MHProNews Note: depending on your browser or device, many images in this report can be clicked to expand. Click the image and follow the prompts. For instance, in some browsers, you will click to open the image in a new window, and then click to open that new window image to expand its size. Then, to return to this page, use your back key, escape or x out to exit. In each case, follow the browser/device prompts.
Additional Information with More MHProNews Analysis and Commentary in Brief
A look at a competing manufactured housing industry trade publication on this date reveals that of their last 18 articles, there is little or no mention of these facts and trends. If that was the source someone was relying on for authentic housing or manufactured housing industry trends, they would be out of luck. Rather, that other publication’s focus is often thinly veiled a pitch for this or that company, favored group, and/or the Manufactured Housing Institute (MHI). Nearly as important as access to capital is the access to the best, most accurate information possible. That is the flip side of the powerful and pithy observation made by Warren Buffett nonprofit linked actor, advocate, and nonprofit board member Danny Glover.
The Danny Glover quotation: It’s not only a monopoly of wealth it’s a monopoly of information as well” is a penetrating insight from the award-winning “Shadows of Liberty” documentary drama. Shadows of Liberty exposed the political, media, corporate, government, and regulatory nexus. It explores examples from left and right with impact of money and information manipulation. Glover served on a Buffett funded board.
It is in that context of capital and control or influence over information that the following two reports should come to life for objective reality seeking industry professionals. Because nonprofits and foundations exert a significant influence over a range of economic, political, cultural and other issues plus their related policies.
Once someone grasps that accurate information is a valuable commodity, and that some sources are routinely paltering in a fashion that supports a particular viewpoint or agenda, the reality of modern American life and how that relates to manufactured housing’s 20 plus years of underperformance begins to come to light.
One must keep in mind that thousands of professionals fill jobs in manufactured housing that have less than 5 to 10 years of total manufactured home industry experience. That means that they (perhaps you or some of those you work with) have never seen truly more robust times in manufactured housing. For those who read other sources in MHVille that carry water for MHI and who don’t read enough from this publication, they may think that these are good times. It is better than the industry’s all time historic lows, but that isn’t saying much is it? If another so-called industry trade publication fails to periodically show their readers the kind of factual information revealed below it reflects why withholding such information is a type of control by those who know these facts but attempt to mask, distract away from, or otherwise diminish its true meaning.
Dated and at times inaccurate or misleading information is available on the Manufactured Housing Institute (MHI) website, which may explain why MHProNews and MHLivingNews has robust traffic and high levels of engagement when new visitors arrive. That is per third-party metrics. Note: depending on your browser or device, many images in this report can be clicked to expand. Click the image and follow the prompts. To return to this page, use your back key, escape or follow the prompts.
Facts and evidence matter. Because there is so much news that is ignored or spun, there is a day by day need to unpack the news, examine it carefully, and see that news through the lens of the obvious historic underperformance of manufactured housing. From an investors point of view, for instance, manufactured housing ought to be soaring. But when companies that draw investment money are carefully examined, the disconnects between their performance, potential, and various realities begins to come into focus.
Examples that could be sighted for examination include Cavco Industries and RHP Properties. But there are others that are problematic, numbers of which are linked further below. Note: while not every Manufactured Housing Institute (MHI) member is an arguably ‘black hat’ brand, but the close relationship between problematic behavior and MHI membership calls to mind the following from Warren Buffett in July of 2021. In a pull quote that ought to be in all caps and highlighted for emphasis was this one: “…the bad guys win. They know more games.” One of those games is carefully explored in the report linked below the report below that features one of Buffett’s sons, Buffett himself and his longtime strategic ally, William “Bill” Gates III.
NOTICE: Based on feedback, a modification of our Daily Business News on MHProNews recap of yesterday evening’s market report is provided. It will still include our left (CNN Business) and right (Newsmax) ‘market moving’ headlines. The macro market moves graphics will provide context and comparisons for those invested in or tracking manufactured housing connected equities.
Reminder: several of the graphics on MHProNews can be opened into a larger size. Click the image and follow the prompts in your browser or device to OPEN In a New Window. Then, in several browsers/devices you can click the image and increase the size. Use the escape or back key to return.
Headlines fromleft-of-center CNN Business – from the evening of 9.26.2022
A massive gamble
U.S. dollar bills are are pictured with British GDP notes on September 24, 2022 in Bath, England.
Analysis: The British pound’s crash will make inflation worse and push interest rates higher
Forget a soft landing. The market’s best hope is a ‘growth’ recession
As the 2022 midterms draw closer, Biden and Democrats are attempting various efforts to stir up their base and encourage or ‘buy’ votes, such as through the constitutionally questioned student loan forgiveness plan. Democratic House Speaker Nancy Pelosi previously said the plan would require Congressional approval. What happened to that? Who died and made Biden a ruler by fiat? Joe Biden and some of his admin officials announced inflation is ‘zero percent’ for the prior month. What? Who believes that who is going to the grocery store? It was running at 9.1 percent the previous month, but many believe that the actual rate of inflation is about double that claim. Yes, gas prices have fallen, due to an apparent drop in global demand as an economic slowdown is taking place. The Washington Examiner said that a historic record 88 percent now thinks that the U.S. is on the wrong track under Biden. As the value of the dollar erodes, that impact should be considered when looking at stock market performance. Note: depending on your browser or device, many images in this report can be clicked to expand. Click the image and follow the prompts. To return to this page, use your back key, escape or follow the prompts.
LIVE UPDATES US stocks close lower as dollar surges
UK authorities try to calm panicked markets
British pound plummets to record low against the dollar
UK prime minister defends tax cuts as pound plummets
Amazon puts a second Prime Day sale on the calendar
The rich are the biggest winners of Britain’s tax-cutting gamble
Walmart enters the Roblox metaverse
As the internet goes dark in Iran, activists fear what’s next
While DeSantis was flying legal asylum seekers to Martha’s Vineyard, business owners in his state were struggling for workers
Twitter CEO to be deposed in lawsuit against Musk
U.S. Federal Reserve Board Chairman Jerome Powell holds a news conference after Federal Reserve raised its target interest rate by three-quarters of a percentage point in Washington, U.S., September 21, 2022.
Take no prisoners: In the Fed’s inflation fight, no one is spared
Diamond jewelry in the window of a store in the Diamond District neighborhood of New York, U.S., on Thursday, May 5, 2022. Russia's invasion of Ukraine is fracturing a billion-dollar trade that spans the permafrost-laden diamond mines of Siberia, secretive trade houses in Antwerp, dusty polishing powerhouses in India and New York's glittering designer jewelry stores.
Expect big holiday sales on everything but the bling
FILE PHOTO: A man holds an iPhone 14 as Apple Inc's new models go on sale at an Apple store in Beijing, China, September 16, 2022. REUTERS/Thomas Peter
Apple has started making the iPhone 14 in India as China headaches mount
A massive gamble
U.S. dollar bills are are pictured with British GDP notes on September 24, 2022 in Bath, England.
Analysis: The British pound’s crash will make inflation worse and push interest rates higher
Forget a soft landing. The market’s best hope is a ‘growth’ recession
LIVE UPDATES US stocks close lower as dollar surges
UK authorities try to calm panicked markets
British pound plummets to record low against the dollar
UK prime minister defends tax cuts as pound plummets
Amazon puts a second Prime Day sale on the calendar
The rich are the biggest winners of Britain’s tax-cutting gamble
Walmart enters the Roblox metaverse
As the internet goes dark in Iran, activists fear what’s next
While DeSantis was flying legal asylum seekers to Martha’s Vineyard, business owners in his state were struggling for workers
Twitter CEO to be deposed in lawsuit against Musk
U.S. Federal Reserve Board Chairman Jerome Powell holds a news conference after Federal Reserve raised its target interest rate by three-quarters of a percentage point in Washington, U.S., September 21, 2022.
Take no prisoners: In the Fed’s inflation fight, no one is spared
Diamond jewelry in the window of a store in the Diamond District neighborhood of New York, U.S., on Thursday, May 5, 2022. Russia's invasion of Ukraine is fracturing a billion-dollar trade that spans the permafrost-laden diamond mines of Siberia, secretive trade houses in Antwerp, dusty polishing powerhouses in India and New York's glittering designer jewelry stores.
Expect big holiday sales on everything but the bling
FILE PHOTO: A man holds an iPhone 14 as Apple Inc’s new models go on sale at an Apple store in Beijing, China, September 16, 2022. REUTERS/Thomas Peter
Apple has started making the iPhone 14 in India as China headaches mount
“In the business world, the rear-view mirror is always clearer than the windshield.” – Warren Buffett. That begs a key question. Why don’t more people LOOK at the rearview mirror so they can learn more about the patterns that influence what’s ahead? Note: depending on your browser or device, many images in this report can be clicked to expand. Click the image and follow the prompts. To return to this page, use your back key, escape or follow the prompts.
SUCCESS
Residential single family homes construction by KB Home are shown under construction in the community of Valley Center, California, U.S. June 3, 2021. REUTERS/Mike Blake
Why it’s getting even harder to keep a roof over your head
FILE – This April 13, 2019, file photo, shows homes in suburban Salt Lake City. Americans shopping for a home this spring may face more competition than they have in years.
Mortgage rates rise to nearly 6.3%, the highest level since 2008
What rising interest rates mean for you
A sale sign stands outside a home in Wyndmoor, Pa., Wednesday, June 22, 2022. If you’re settling into a new home, you might be looking to fill it with furniture. But after your rent or mortgage, security deposit and moving expenses, there might not be much left over for your dream couch or dining room set.
Hurricane Ian Projected to Hit Florida as Category 4
Congress Negotiators Set $12 Billion for New Ukraine Aid
More than $12 billion in Ukraine-related aid will be included as part of stopgap spending bill that would fund the federal government into mid-December, a source said Monday. [Full Story]
In instances such as Apollo, Berkshire Hathaway, Blackstone or others, manufactured housing may only be part of their corporate interests. Note: depending on your browser or device, many images in this report can be clicked to expand. Click the image and follow the prompts. To return to this page, use your back key, escape or follow the prompts.
Related Stories
Dick Morris: Tucker Carlson’s Dangerous Pro-Russian Views
Russia Gunman Detained After Shooting at Siberian Draft Office
Russia: No Decision on Closing Border Amid Mobilization
Kremlin: Russia, US Have ‘Sporadic’ Contact Over Nukes
UK Sanctions Russians Linked to ‘Sham’ Referendums in Ukraine
Ukraine Probes Suspected Mass Burial on Russia Border
Newsmax TV
Mike Waltz: GOP Must End Woke Agenda in Military | video
Tim Burchett: Gender Surgeons ‘Chasing Dollars’ | video
Blaine Holt: We Need to Hear From Xi Jinping Soon | video
Gordon Chang: ‘Something Is Terribly Wrong’ in China | video
Dick Morris: Dems Try to Beat Trump in Court, Not Vote | video
Tom Fitton: Biden’s COVID ‘Emergency’ Political Tool | video
Fred Fleitz: Biden’s UN Speech ‘Probably Infuriated’ Putin | video
Davidson: COVID Fraud Reports ‘Tip of the Iceberg’ | video
Newsfront
Questions Surround FBI Raid Arrest of Pennsylvania Pro-life Father
Serious questions have been raised regarding the arrest last week of a Catholic pro-life speaker as donations continued to pour in for the father of seven…. [Full Story]
France’s Macron Lands 1st State Visit of Biden’s Presidency
French President Emmanuel Macron will travel to Washington in early [Full Story]
Cubans Approve Gay Marriage by Large Margin
Cubans Approve Gay Marriage by Large Margin
Cubans approved gay marriage and adoption overwhelmingly in a Sunday [Full Story]
Lindsey Graham: ‘Putin’s Days Are Numbered’
Lindsey Graham, R-S.C., mocked Vladimir Putin’s decision to [Full Story]
Lanternflies From China Wreak Havoc on US Crops
Don’t be fooled by the colorful, polka-dotted wings – entomologists [Full Story] | Platinum Article
Man Arrested for Planning ‘Las Vegas-Style’ Massacre
A California man, who has apparent ties to the U.S. Army Delta Force, [Full Story]
Dick Morris: Tucker Carlson’s Dangerous Pro-Russian Views
Carlson appears to have a lot invested in Russia winning its war [Full Story]
Ed Snowden Granted Russian Citizenship by Putin
President Vladimir Putin signed a decree on Monday granting Russian [Full Story]
Hurricane Ian Projected to Hit Florida as Category 4
Hurricane Ian was growing stronger as it approached the western tip [Full Story] | video
Sinema: Restore 60-Vote Senate Threshold
Kyrsten Sinema, D-Ariz., on Monday said the Senate should [Full Story]
CBS Poll: 87 Percent of GOP Back Migrant Relocations
According to a new poll from CBS News, the vast majority of [Full Story]
Cheney: I’ll Do ‘Whatever It Takes’ to Stop Trump
Liz Cheney, R-Wyo., pledged to do “whatever it takes” to ensure [Full Story]
Biden Host Braves After Atlanta All-Star Game Snub
A conservative group is calling foul on President Joe Biden’s [Full Story]
At Least 50 Killed in Iran Protests, Internet Blacked Out
Protests continue to spread across Iran, a week after 22-year-old [Full Story]
Twitter Might Reinstate Trump’s Account: Report
A financial news site posting early Monday stirred talk that Twitter [Full Story]
NASA Rolls Artemis Moon Rocket Back Amid Ian Threat
NASA on Monday said it will roll its giant moon rocket off its [Full Story]
Russia’s Nord Stream 2 Pipeline Leaking Into Baltic Sea
The Danish authorities on Monday asked ships to steer clear of a five [Full Story]
Florida Brings No Cost Solar to These Zip Codes
Smart Lifestyle Trends
Claver-Carone Ousted in IDB Vote After Investigation
The governors of the Inter-American Development Bank (IDB) voted on [Full Story]
Canada to Lift All COVID Travel Restrictions Oct. 1
Canada will drop all COVID-19 restrictions for travelers from Oct. 1, [Full Story]
Rihanna to Headline the Next Super Bowl Halftime Show
Rihanna will take center stage at February’s Super Bowl halftime show. [Full Story]
Twitter Interviewing Elon Musk, Known to Be Combative
Billionaire Elon Musk’s tendency to dish out insults while being [Full Story]
Global Citizen Festival Generates $2.4 Billion in Pledges
The 10th anniversary of the Global Citizen Festival, which included [Full Story]
Related
Pelosi Booed at Climate-Change Music Fest in NYC’s Central Park |video
Pollsters Fear They Will Blow It Again in Midterms
Pollsters at major public firms, academic institutions, and campaign [Full Story]
Video Report: Survivors Recount Lebanese Boat Disaster
Jerusalem correspondent Daniel Cohen has the latest on the tragedy [Full Story] | video
Facebook Censoring Content on FBI Whistleblower
Facebook appears to be censoring private messages related to an FBI [Full Story]
Jimmie Johnson to Retire from Full-time Racing
Seven-time NASCAR champion Jimmie Johnson is retiring from full-time [Full Story]
Toomey Blasts Biden’s ‘Irresponsible’ Use of Cold War-Era Defense Law
Pat Toomey, R-Pa., on Monday blasted President Joe Biden for [Full Story]
White House: New Rule Will Show ‘True Cost’ of Plane Tickets
President Joe Biden will announce a new initiative Monday that would [Full Story]
Antitrust Case vs American Airlines, JetBlue Heads to Court
The government’s antitrust lawsuit against American Airlines and [Full Story]
James Earl Jones Retires From Voicing Darth Vader
James Earl Jones is stepping back from portraying one of the most [Full Story]
Swastika-Wearing Gunman Kills 15, Wounds 24 in Russian School Shooting
A gunman with a swastika on his teeshirt killed 15 people, including [Full Story]
Incredible Miniature Telescope Lets You See for Miles
More Newsfront
Finance
Amazon to Hold Holiday Shopping Event in October
Amazon said Monday that next month it will hold a second Prime Day-like shopping event, making it the latest major retailer to offer holiday deals earlier this year to entice cautious consumers struggling with tighter budgets…. [Full Story]
Starbucks Wants Union Bargaining to Begin
Wall Street Drops, Dow in Bear Territory
SEC Charges 3 in N.J. Deli $100M Valuation Scheme
Steve Forbes: No Need to ‘Make People Poor’ to Fight Inflation
More Finance
Health
Increased Blood Clot Risk Remains Nearly a Year After COVID
An increased risk of blood clots persists for close to a year after a COVID-19 infection, a large study shows. The health records of 48 million unvaccinated adults in the United Kingdom suggest that the pandemic’s first wave in 2020 may have led to an additional 10,500 cases… [Full Story]
Beware: Health Apps Share Your Personal Information with Advertisers
More Women Are Freezing Eggs, But Pregnancy Not Guaranteed
Study: Gardening, Art Boost Mental Health and Ease Anxiety
Study: Jobs With Highest Risk for ALS
===================================
NOTE 1: The 3rd chart above includes the Canadian stock, ECN, which purchased Triad Financial Services, a manufactured home industry lender
NOTE 2: Drew changed its name and trading symbol at the end of 2016 to Lippert (LCII).
NOTE 3: Deer Valley was largely taken private, say company insiders in a message to MHProNews on 12.15.2020, but there are still some outstanding shares of the stock from the days when it was a publicly traded firm. Thus, there is still periodic activity on DVLY.
Note 4: some recent or related reports to the equities named above follow.
2022 …Berkshire Hathaway is the parent company to Clayton Homes, 21st Mortgage, Vanderbilt Mortgage and other factory-built housing industry suppliers. · LCI Industries, Patrick, UFPI, and LP each are suppliers to the manufactured housing industry, among others. · AMG, CG, and TAVFX have investments in manufactured housing related businesses. For insights from third-parties and clients about our publisher, click here.
Disclosure. MHProNews holds no positions in the stocks in this report.
· For expert manufactured housing business development or other professional services, click here.
· To sign up in seconds for our industry leading emailed headline news updates, click here.
To get our x2 weekly industry-leading emailed news headlines, click here. We recommend that news tips NOT use company, nonprofit or organizational emails or cell phones. To report a news tip, click the image above or send an email to iReportMHNewsTips@mhmsm.com – To help us spot your message in our volume of email, please put the words NEWS TIP or COMMENTS in the subject line.
All on Capitol Hill were welcoming and interested in manufactured housing related issues. But Congressman Al Green’s office was tremendous in their hospitality. Our son’s hand is on a package that included a copy of the Constitution of the United States and other goodies. Tamas has grown considerably since this photo was taken.
By L.A. “Tony” Kovach – for MHProNews. Tony earned a journalism scholarship along with numerous awards in history. There have been several awards and honors and also recognition in manufactured housing. For example, he earned the prestigious Lottinville Award in history from the University of Oklahoma, where he studied history and business management. He’s a managing member and co-founder of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com. This article reflects the LLC’s and/or the writer’s position and may or may not reflect the views of sponsors or supporters.
