Homes Sell Below List Price for First Time Since 2021

MARKET MOVERS

• Homes sell below the list price in the US for the first time since March 2021. The shift is largely because of surging mortgage rates, which have dented affordability and kept many would-be buyers on the sidelines, forcing sellers to accept lower prices. The average sale-to-list price ratio fell to 99.8% in the four-week period ended Aug. 28. It hasn’t been below 100% since March 2021, Redfin said.

• Million-dollar homes are losing luxury status as buyers get less space for their money. The phenomenon of “shrinkflation” is also hitting homes, where buyers are getting less space for their money. For homes in the $1 million range, that means home buyers are no longer getting spaces with luxury status, according to new research from real estate website Zillow. Read more here.

• GM offers to buy out Buick dealers that don’t want to invest in EVs. The buyout offers, which are being outlined to Buick dealers Friday, are the latest efforts by GM to accelerate the company’s electric vehicle plans and transform its sales network. All of Buick’s roughly 2,000 U.S. franchise dealers will be given the opportunity to take a buyout.

• Meta acquires a Berlin startup to boost its virtual-reality ambitions. Meta Platforms Inc. has acquired Lofelt, a Berlin startup whose technology aims to replicate the illusion of touch in virtual reality, the tech giant said on Friday. The terms of the deal couldn’t be determined. A June financial filing describes Meta as Lofelt’s sole shareholder. Lofelt specializes in haptic technology.

• OpenSea's volume dropped 99% since they first peaked of $406 million in a single day. On August 28th, volume dropped to around 5 million dollars down 99%, according to decentralized app tracker Dapp Radar. On a monthly basis, OpenSea's volume has dropped 90%, according to Dune analytics. The floor price of a Bored Ape has now dropped by 53%. Source(4:22)
  

WHAT TO WATCH

• Elon Musk and Twitter are set to face off at Omnibus Hearing next week. Chancellor Kathaleen McCormick said in a filing Friday she will consider several pending legal motions from both parties, such as Mr. Musk’s recent request to add allegations from a whistleblower complaint by Twitter’s former head of security, Pieter Zatko, to his counterclaims. Mr. Musk has also requested that the five-day nonjury trial be pushed to November from October.

• CVS is in advanced talks to buy Signify Health. CVS appears to have beat out other heavy hitters including Amazon.com and UnitedHealth, which had been circling Signify for a deal that could be announced soon. UnitedHealth never submitted an official bid. They plan on acquiring Signify for around $8 billion. Read more here.

• The FTC is investigating Amazon's deal to buy One Medical. The FTC’s move to investigate the deal could delay its completion as federal competition investigations often take months to finish. Significant U.S. antitrust probes on average take about 11 months, according to data compiled by law firm Dechert LLP. FTC Chairwoman Lina Khan is a known critic of Amazon.

• Russia to keep Nord Stream pipeline shut. Kremlin-controlled energy company Gazprom PJSC said late Friday it would suspend supplies of gas to Germany via the Nord Stream natural-gas pipeline until further notice, raising the pressure on Europe as governments race to avoid energy shortages this winter. Gazprom said it had found a technical fault during maintenance of the pipeline. Read more here.

• National house price declines 4% in 2023, and 5% in 2024, says Ivy Zelman. There are factors arguing for national price declines. First, prices appear significantly too high using real prices, and price-to-income and price-to-rent ratios. Also, the recent sharp year-over-year increase in monthly payments for the same house will put downward pressure on house prices. Read more here.

JUST ANOTHER DAY AT THE OFFICE

Today we toast you: the American worker, the entrepreneur, the small business owner, the investor. You are the economy. The ones creating a bigger & better future. Which brings us back to the question up top regarding the value of one man. Is 70 year old Saban and his 87.8% win rate worth the 8 year contract price?