Home Flipping Rises to the Highest Level

• 3 min read
Home Flipping Rises to the Highest Level

MARKET MOVERS

  • Home flipping rises to the highest level this century. US homes purchased in the first quarter of 2022 as the result of a flip are increasing, according to real estate database ATTOM. Through the first quarter of the year, 9.6% of home resale transactions, good for some 114,000 single-family houses and condos, were the result of a flip. That's about double the nearly 5% rate from the same period last year.

  • US personal spending is revised sharply lower in first-quarter data. US consumer spending expanded in the first quarter at the softest pace of the pandemic recovery, marking a surprise sharp downward revision that suggests an economy on weaker footing than previously thought. Outlays rose an annualized 1.8%, down from 3.1% prior estimate. The latest GDP figures also showed a bigger build in inventories.

  • U.S. first-quarter GDP shrank 1.6%. The contraction in the gross domestic product was the first since the onset of the pandemic in early 2020. GDP in the second quarter is on track to grow less than 1%, according to the latest Wall Street estimates. Some forecasters put growth at as little as 0.1% but others see the economy expanding by 3%-plus. Read more here.

  • Snap announces the Snapchat+ subscription plan that costs $3.99 a month. Launched in nine countries including the U.S., the paid subscription service could help Snapchat diversify its revenue sources if it turns out to be popular. The Plus plan includes pre-release, experimental, and exclusive features such as pinning your close friend as BFF and customizing the app’s icon. Read more here.

  • Industrial real-estate developers are hot on cold-storage warehouses. Nearly 3.3 million square feet of refrigerated warehouse space was under construction through the second quarter of this year nationwide without companies slated ahead of time to take up the sites, some 1,000% more than was built in 2019. The cold-storage market is largely insulated from an economic slowdown because people have to keep eating.

  • LVMH buys California wine giant Joseph Phelps as the high-end drinks market soars. The deal delivers Moet one of the best-known California winemakers, famous for its red table wines and premium Insignia label, and deepens its foothold in the U.S., its largest market. The terms of the deal were not disclosed. Demand is still surging for high-end champagnes, wine, and spirits despite fears of recession and inflation.

  • Most commodities are now in the bear market. Zinc, Copper, and Iron have all seen double-digit drops and this is a confirmation that the market has started to price in the slowdown that we will be faced with over a couple of coming quarters. Every time we see a recession, a slowdown in global trade, and a material slowdown in the construction sector in China, we should also expect commodities to follow south. Source(15:18)

WHAT TO WATCH

  • Amazon cloud unit on course for $3 trillion value, Redburn says. Amazon Web Services’ revenue jumped 37 percent to US$18.4 billion in the first quarter even as the company’s core e-commerce business saw a decline in sales. The Amazon cloud unit is better positioned than rivals run by Microsoft and Alphabet Inc. because it has lower costs and better technology, according to analysts.

  • SpaceX Starlink crashes through a new growth record. SpaceX is reporting Starlink subscriber growth that suggests production is very close to what's needed to support its growth in subscribers. 400,000 Starlink subscribers in May. 500,000 Starlink subscribers in June. Subscriptions are growing by leaps and bounds. It may be setting SpaceX Starlink up for a long-awaited IPO. Read more here.

  • Goldman sees ‘rapid’ growth in chip stocks. A new innovation in semiconductor technology is likely to benefit several companies, according to Goldman Sachs — and investors may be underestimating its potential impact, the bank said. Silicon carbide, or SiC, is a chemical compound increasingly used in semiconductors and is more efficient than traditional silicon. They see potential SiC market growth in the future. Read more here.
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