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Tag Archives: California Daydreaming

Catastrophic Plunge in Jobs & Labor Force in Los Angeles, San Francisco/Silicon Valley Smacks into Housing Bubbles

Holy cow, Los Angeles. The economy is gradually opening up. But the exodus has started hard and heavy. And the influx has stopped. By Wolf Richter for WOLF STREET. A little anecdotal thingy before we get into the horrifying data: I was on a call with a guy from Google – they want my WOLF STREET media mogul empire to spend money advertising on Google. He was working from home, and since he no longer has to go to Google’s office in Redwood City, he moved home to his parents in St. Louis,...

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Week 8 of the Collapse of the U.S. Labor Market: Nearing a Previously Unthinkably Deep Bottom?

“Insured unemployment rate” in California spiked to 27.7%, “continued claims” hit 4.8 million. In terms of “initial claims,” Georgia & Florida move into 1st and 2nd, ahead of California. By Wolf Richter for WOLF STREET. State unemployment offices have processed 2.98 million “initial claims” for unemployment  insurance in the week ended May 9, according to the US Department of Labor this morning. This brings the total number of initial claims processed over the past 8 reporting...

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“Pent-up Supply” is Building up in the Housing Market: Example of San Francisco Bay Area’s North Bay

“The next big shoe to drop will be when appraisers call a declining market in early August.” By Wolf Richter for WOLF STREET. The Virus has thrown the housing market into turmoil. Housing moves slowly. It took the last housing bust four years to play out. But the underlying dynamics can change quickly. So here are some of the underlying dynamics from the four counties that form the North Bay of the San Francisco Bay Area: Marin (just north of the Golden Gate Bridge), Sonoma and Napa...

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How the Unicorn Blowup & Oil Bust Bleed into Commercial Mortgage-Backed Securities

CMBS get to eat it all: Amid overvalued vacant collateral, there is a new thingy: Tenants delaying rent payments and landlords asking for forbearance. By Wolf Richter for WOLF STREET. The office segment of the commercial real estate market – and the debt and the commercial mortgage-backed securities (CMBS) that are backed by it – are going through serious gyrations on a combination of factors. Companies have figured out how to make work-from-home manageable. Other companies are moving...

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Housing Market under COVID-19: Regular Folks Pull Back, Nonresident Foreign Investors Blocked, Large US Investors Gone, iBuyers Frozen

Demand is a lot weaker in some places than in others. By Wolf Richter for WOLF STREET. Mortgage applications to purchase a home in the US during the week ended April 17 plunged by 31% from a year ago, and by 41% from the peak in January, the Mortgage Bankers Association reported today. It was the fifth week in a row of year-over-year plunges and the third week in a row in the minus 31-35% ZIP code. The purchase mortgage applications data – based on weekly surveys of banks, nonbanks,...

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Week Two of the Collapse of the Labor Market

This type of sudden, previously unimaginable fall-off-the-cliff data about the lockdown-economy is gut-wrenching. By Wolf Richter for WOLF STREET: Today, we got another dose of preliminary fall-off-the-cliff data about the lockdown economy: 6.648 million people filed initial unemployment claims in the week ended March 28, seasonally adjusted, about ten times the prior record set in 1982, according to the US Department of Labor this morning. This is on top of the upwardly revised 3.307...

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Week Two: How COVID-19 Lockdowns Impact US Housing Market. Mortgages Give Clues: It Gets Uglier

“Nobody has any taste for risk anymore. All of those exotic loan programs have ceased. All investors buying that paper are gone”: mortgage broker. By Wolf Richter for WOLF STREET: The lockdown regime has changed the once booming housing market. Real estate businesses, such as real estate brokers, mortgage brokers, and other types of businesses, and the government offices that make it all work are now considered “essential” under federal guidelines and under California lockdown rules....

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CoronaWar Battlegrounds: New York Leads in Growth, Minnesota Bends it Best. California Hot Spots v. Italy & South Korea. Pain in Spain

Madrid area hospitals were forced into wartime-triage, denying care to the elderly in order to give the young a better chance. By Wisdom Seeker, a WOLF STREET Commenter with a physical sciences Ph.D., San Francisco Bay Area: This post takes a fresh look at key battlegrounds in the CoronaWar which we discussed last week. For local readers, I’ll take a unique and fresh look at the Bay Area, LA and California. Around the US and globally, Spain joins Italy’s misery, but New York continues...

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How Will Coronavirus Lockdowns Impact the US Housing Market? First Data Points Are Out. They’re Ugly

And it’s just the first inkling of what’s in store for home sales. By Wolf Richter for WOLF STREET: Most of the housing market data that we’re going to see over the next month or two – such as median price indices and sales volume indices — or four-plus months for the Case-Shiller Index – will reflect the era before the Covid-19 fallout. But on Tuesday last week, March 19, the real-estate world changed brutally. The five-county San Francisco Bay Area went into lockdown, followed in...

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How a Landlord of Neighborhood Malls Deals with the Lockdown Crisis his Tenants Face

“Our Retail Marshall Plan” By Wolf Richter for WOLF STREET: There are now lockdowns in place in many cities and counties in the US. Since Tuesday, the five most populous counties of the San Francisco Bay Area are in lockdown. Some types of stores are still open as “essential businesses,” including grocery stores, hardware stores, auto parts and repair shops, dry-cleaners, pharmacies, gas stations, and other “essential” stores. Restaurants had to close their dining rooms but can sell...

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