What Does a Trillion-Dollar Company's Downfall Have to Do with Your Home's Value?

Monthly Market Report
April 1- April 30, 2023
Have you heard the news about Blackstone?

No, I'm not talking about some ancient mystical artifact or a sci-fi villain. I'm talking about a trillion-dollar corporation that has been making waves in the real estate market, and boy, have they stirred up quite the storm!

Buckle up because we're about to take a wild ride through their downfall and how it might impact your humble abode.

 

Picture this: Blackstone, with pockets deeper than the Mariana Trench, has been on a shopping spree for the last several years, gobbling up entire subdivisions faster than a kid devouring candy on Halloween night. You know, just your everyday trillion-dollar corporation stuff.

But here's the twist – they've been making it harder for regular folks to grab a piece of the American dream and own our own homes. Rude, right?

Well, it seems like their empire was built on a foundation of cheap debt and soaring house prices. But guess what? The housing market is doing a pirouette into a downturn, and prices are dropping faster than a clumsy magician's hat.

Yep, you heard that right. Major cities across the US are experiencing a rollercoaster ride of falling house prices. Wheee!

 

According to Redfin, nearly every major city in the country is seeing YoY reduction in prices compared to the peak last summer.

Here are a few examples:
-Los Angeles - down 8%
-Las Vegas - down 10%
-Boise - down 15%
-Austin - down 15%
-Denver - down 6%
-Seattle - down 9%
 
Now, here's where the plot thickens. Blackstone's investors have been doing a five-month-long marathon trying to withdraw their moolah. But Blackstone, with their limited liquidity, has decided to play hide-and-seek with their funds. It's like a never-ending game of financial cat and mouse. Meow!

To add more drama to the mix, Blackstone has defaulted on bonds worth over a billion dollars. That's right, billion with a "B"!

 

Whoooops!

Bonds backed by European stores, fancy New York apartments, and the glitz and glamour of Las Vegas properties are feeling the pinch. Looks like their empire is cracking faster than a smartphone screen dropped from a skyscraper.

And you know what's even more intriguing? The mainstream media, with all their flashy headlines and breaking news, has conveniently brushed aside this trillion-dollar crisis. Are they in cahoots with Blackstone? Is it a secret society of real estate moguls controlling the narrative? We might never know, my friend.

One thing we do know, if Blackstone fails and they default on their loans, the tens of thousands of single family properties they own will join the upcoming rush of foreclosures flooding the market.

It's anybody's guess when that will be, but rest assured I will continue to diligently study the market and update you so you'll be among the first to know.

Now onto this month's market update:

 
Click Here for the Full Comprehensive Report

5 most expensive sales this month

  1.  1.  1455 Chandler Rd, Lake Oswego -- $5,100,000
     2.  17435 Wren Ct, Lake Oswego -- $3,600,000
     3. 13151 Thoma Rd, Lake Oswego -- $3,530,000
     4. 14655 Uplands Dr, Lake Oswego -- $3,390,000
     5. 13581 Goodall Rd, Lake Oswego -- $3,100,000
Real Estate in the News
-Realtor.com
 
Housing Market Update: Homes Sell Quickly as Historic Drop in Listings Fuels Competition Among Buyers
-Redfin
-Zillow News
-Housing Wire

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