LibreMax Capital’s main fund notched returns of roughly 6% through July this year, according to a person familiar with the matter, after betting on asset-backed securities and rotating out of commercial and residential mortgage debt and collateralized loan obligations.
The LibreMax Partners Fund, which totals about $1 billion, invests in structured products tied to both corporate and consumer debt. The fund gained about 4% in the first half of last year, as previously reported by Bloomberg. Separately, LibreMax has raised $1 billion across two other funds, namely the LibreMax Core Fund and LibreMax Dislocation Fund, added the person, who declined to be identified as the details are private.
LibreMax believes that structured bonds, which repackage debt into securities of varying risk and size, will outperform junk debt, citing “historically high yields” and fundamentals underpinned by strong consumer finances and record-low unemployment, Chief Investment Officer Greg Lippmann wrote in a July 27 letter to investors, obtained by Bloomberg.
In that vein, the firm increased its ABS exposure while lowering its allocations to commercial mortgage debt, CLOs and residential mortgages. Within ABS, it invested across subprime auto bonds, consumer unsecured, aircraft, solar and credit card securities, the letter details.
The Dislocation Fund, launched earlier this year, capitalizes on market volatility by buying stressed structured bonds at a discount, which are likely to appreciate once the market normalizes, added the person close to the matter.
A LibreMax representative declined to comment.
The New York-based hedge fund anticipates more volatility over 2023 and into the first half of 2024, as persistently high inflation or a recession seem more likely than a soft landing, Lippmann wrote. Lippmann, a former Deutsche Bank AG trader, famously bet against subprime mortgages before the 2008 financial crisis. He appeared in Michael Lewis’s book “The Big Short” in 2010.
Boosting Credit Returns
The fundraising comes during a tough year for US credit markets, which have been roiled by aggressive interest rate hikes from the Federal Reserve and the collapse of multiple US regional banks. The banking tumult that started in March led to corporates postponing or pulling financings across the ABS market, while delinquencies in debt like subprime auto bonds and credit card-backed notes are expected to rise.
LibreMax sees opportunities in whole business debt in particular. It participated in a $90 million advance to Coinstar LLC, giving the coin kiosk operator flexibility to restructure about $1 billion in whole business securitization deals that reached a key repayment date in late April, as reported by Bloomberg.
“We will look to source similar investment opportunities going forward,” Lippmann wrote.
CLOs have had a slower 2023 compared to ABS. Issuance is down about 24% year-over-year at around $69 billion, while ABS sales are 7.6% lower year-over-year at $191.4 billion, data compiled by Bloomberg News shows. LibreMax moved away from lower-quality US CLO debt and equity, selling around $90 million in market value, according to the letter. Those proceeds were used to move up the capital stack with the purchase of about $75 million of US investment-grade debt. Still, the bulk of LibreMax’s activity was in Europe, where it invested in short-duration tranches, including equity, the letter noted.
Meanwhile, the CMBS market rout continues as landowners default on mortgages and credit risk spikes. LibreMax bought short-duration investment-grade bonds that may present low double-digit yields, where it believes “the market mispriced the extension likelihood and where returns are still attractive to moderate extensions.”
In residential mortgage bonds, LibreMax moved down the capital stack based on certain borrowers’ performance, reads the letter. The firm is also seeking out opportunities in single-family rental bonds, where companies have struggled to raise rents amid higher expenses.
Lippmann is also “concerned” about the unsecured private credit market, which he says may become “troublesome” if rates stay higher and economic growth slows. He also notes that LibreMax has increased the investment-grade portion of its portfolio to 28%, from 12% in December 2021.
LibreMax and its CLO platform Trimaran Advisors, which it acquired in 2018, collectively had about $9.6 billion of assets under management as of the end of June, according to the note.
The past year hasn’t been particularly good for tech or housing. As a consequence, the number of real estate, mortgage and general housing tech firms to make the annual Inc. Magazine list of the 5,000 fastest growing private companies in America declined in 2023. In all, 37 companies made the cut this year, down from 53 a year ago.
The self-reported list ranks U.S. based firms on percentage revenue growth from 2019 to 2022. To qualify, companies must have been founded and generating revenue by March 31, 2019. They must be U.S.-based, privately held, for-profit, and independent–not subsidiaries or divisions of other companies–as of December 31, 2029. The minimum revenues required are $100,000 for 2019 and $2 million for 2022.
The fastest-growing housing tech firm in 2023 was OptiFunder, which claims to produce the mortgage industry’s only optimization software built to systematically decision warehouse funding allocations and automate the complicated process of funding through loan sale. Based in Missouri, OptiFunder had a three-year growth rate of 4,767%. It was ranked the 98th-fastest growing private company in America in 2023.
Transactly, a real estate transaction platform that provides automation, integrations and tech-enabled services that significantly reduce process time, placed 126th in 2023. Another Missouri-based company, Transactly had a three-year growth rate of 3,852%.
Also appearing in the top 200 list was CertifID, an Austin, Texas-based company that makes software to cut down on wire fraud in the real estate industry. The company, led by Tyler Adams, raised $12.5 million in a Series A funding round in 2022.
Interestingly, none of the top three companies on the 2023 list made the cut in 2022. But several well-established housing tech companies made consecutive appearances in this year’s Inc. 5000 edition.
Homelight, a platform for homebuyers and sellers, was No. 403 in this year’s ranking with a 1,444% three-year growth rate. The company was ranked 351 last year.
LoanStar Technologies, which connects lenders with borrowers who are traditionally underbanked or unbanked, also made the list again. The company was No. 469 in this year’s ranking, up from 958 last year. Its three-year growth rate was 1,241%.
Mortgage origination platform Maxwell, which was in the top 200 last year and a HW Tech 100 award winner in 2021, was ranked No. 658 in the 2023 Inc. 5000 list.
Other established names to make the Inc. 5000 list in 2023 include home equity investment firm Point; co-living platform PadSplit; one-time unicorn Orchard, which operates a digital home buying and selling marketplace and was a 2023 HW Tech 100 award winner; single-family investment property marketplace Roofstock; RentSpree, a rental software platform that connects real estate agents, owners and renters; Curbio, one of leading tech-enabled pay-at-closing home improvement solutions; EasyKnock, a real estate firm that offers homeowners a way to access their home’s equity using a sale-leaseback program; and New Western, a marketplace that serves over 150,000 real estate investors across the country.
Two companies on the list have been on the Inc. 5000 list an impressive five times: Total Expert, which offers CRM and data-driven customer engagement solutions, turning customer insights into actions to increase loyalty and drive growth; and FirstClose, a tech solution provider for HELOC and home equity lenders.
Here’s the complete list of tech firms:
Rank
Company
Growth (3-yr Avg.)
Year Founded
Description
98
OptiFunder
4,767%
2018
Finance company helping independent mortgage lenders choose among funding options and streamline the process.
126
Transactly
3,852%
2017
Real estate transaction platform providing automation, integrations and tech-enabled services that significantly reduce process time.
193
CertifID
2,807%
2017
A company dedicated to fighting wire fraud for the real estate industry.
403
Homelight
1,444%
2012
Providing a platform that helps deliver better outcomes for homebuyers and sellers.
469
LoanStar Technologies
1,241%
2016
Enabling lenders to connect and lend to customers who are traditionally underbanked or unbanked.
487
LiveEasy
1,204%
2013
Real estate software company changing the way people manage their move and their homes.
497
BOSSCAT
1,175%
2018
Digitizing home inspection data to create instant repair estimates for homeowners and real estate professionals.
510
PadSplit
1,152%
2017
Creator of a co-living market platform enabling workers to live in the communities they serve.
533
ReBuilt
1,096%
2015
Vertically integrated marketplace helping homeowners sell their unwanted property and real estate investors find great off-market deals.
545
BatchService
1,081%
2018
A real estate data and SaaS provider using real-time intelligence to help businesses identify opportunities.
658
Maxwell
890%
2015
Digitizes the mortgage-origination process for small to midsize banks, credit unions, and independent mortgage lenders.
678
TriusLending
869%
2003
A mid-Atlantic real estate investment firm and financing lender focused on short-term private lending and long-term rental loans.
744
Point
791%
2015
Home equity investment firm that has enabled more than 10,000 homeowners to unlock their home’s equity without additional monthly expenses.
769
InstaLend
766%
2015
A tech-enabled real estate loan lender providing fast and affordable capital to residential developers through streamlined technology and automated workflow.
933
Coviance
630%
2015
Cloud-based financial firm enabling lenders to scale home equity loans and deliver a clear to close for borrowers in hours.
984
Orchard
602%
2017
Making home buying and selling stress-free, fair and simple with a focus on helping homeowners unlock their equity.
992
RentSpree
598%
2016
Rental software platform that connects real estate agents, owners and renters to simplify the rental process from listing to lease.
997
American Mortgage Mortgage
594%
2019
A 100% employee-owned company providing solutions to mortgage industry challenges, which benefit clients and employees.
1,032
Realync
575%
2013
A real estate video engagement platform unlocking authentic experiences that connect and convert across the prospective renter and resident lifecycle.
1,068
Fund That Flip
555%
2014
An end-to-end real estate investing solution for serious, experienced investors, including Saas products and financing for residential redevelopers and builders.
1,375
Roofstock
425%
2015
End-to-end investing platform for the single-family rental home sector providing integrated, data-driven technology and curated investment recommendations for investors.
1,403
SavvyMoney
417%
2009
A leading provider of credit score solutions, serving over 1000 financial institutions by combining real-time data with digital personalization tools.
1,467
Curbio
393%
2017
Helping real estate agents prepare homes before they go to market so they sell quickly and for the best price.
1,486
Yoreevo
386%
2017
Offering streamlined, stress-free home shopping by providing a technology-driven approach executing transactions more efficiently and saving customers money.
1,522
MIOYM
377%
2008
Real estate firm that identifies and rehabilitates distressed single-family residential properties, later selling them to first-time home buyers nationwide.
1,532
EasyKnock
375%
2016
Real estate firm offering homeowners an innovative way to access their home’s equity using a sale-leaseback program.
1,588
Leverage Companies
358%
2019
Real estate investment firm that uses a proprietary, data-driven platform to source premium opportunities for investors.
1,943
EmpowerHome
289%
2006
A partner to real estate teams and agents, offering exclusive programs to ensure sellers get top dollar for their properties.
1,971
Mobility Market Intelligence
285%
2010
A market leader in data intelligence and market insight tools for the mortgage and real estate industries.
1,985
Keeping Current Matters
282%
2007
Helps real estate agents save time and build confidence with easy-to-deliver marketing content powered by the latest market insights.
2,669
LodeStar Software Solutions
197%
2013
Firm offering software that saves mortgage lenders and professionals time and money by automating their closing cost disclosure.
2,824
MoxiWorks
189%
2012
Firm offering cloud-based, real-estate-productivity technology helping brokerages and agents thrive in the residential real-estate space.
2,936
Lender Toolkit
179%
2015
Provider of automated, innovative and comprehensive AI-powered mortgage technology solutions that streamline the mortgage origination process for mortgage lenders.
3,370
Total Expert
149%
2012
CRM and data-driven customer engagement solutions for financial institutions, turning customer insights into actions to increase loyalty and drive growth.
4,105
FirstCloseFirstclose.
110%
2000
Technology solution provider for HELOC and home equity lenders nationwide, helping lenders increase profitability and reduce cost.
4,196
NewWestern
106%
2008
Real estate marketplace that connects more than 100,000 local investors looking to rehab houses with sellers.
4,423
Down Payment Resource
96%
2008
A technology provider helping the housing industry connect homebuyers with homebuyer assistance, to make affordable home financing opportunities more accessible.
Source: Inc. 5000 – 2023
Additionally, two appraisal firms were named to the Inc. 5000 list in 2023: Kairos Appraisal Services, a national appraisal management company implementing technology to expedite the appraisal process through data, geocoding, scheduling and interactive communication tools. Kairos was No. 1,283 on the Inc. 5000 list with a three-year growth rate of 457%. Miami-based Marketwise Valuation Services, another AMC, was No. 2,629 overall with a three-year growth rate of 205%.
Rank
Company
Growth (3-yr Avg.)
Year Founded
Description
1,283
Kairos Appraisal Services
457%
2015
National appraisal management company implementing innovative technology to expedite the appraisal process through data, geocoding, scheduling and interactive communication tools.
2,629
Marketwise Evaluation Services
205%
2017
Appraisal management company for the lending industry, dedicated to providing the highest quality appraisal management services and property condition inspections.
Inside: Are you looking for a safe and convenient way to buy and sell gift cards? If so, CardCash may be the perfect option for you. This comprehensive review will explore everything you need to know about this popular online marketplace.
Gift cards often seem like the perfect hassle-free gift solution, but receiving a card from a retailer that doesn’t align with your interests can result in unused potential and wasted money.
This is a common occurrence, with Americans currently holding around $21 billion in unused gift cards (source).
I know I have plenty of unused gift cards – probably around $300 worth laying around.
In response, companies like CardCash.com have stepped in to make these cards useful again and alleviate this universal frustration.
The simple goal is to help you extract value from those unwanted or unused gift cards by providing a platform to sell them safely. The solution not only converts unused cards into cash but also offers the opportunity to swap them for discounted cards from preferred retailers or a prepaid Mastercard.
Here is my CardCash review on the simplicity of getting cash for my unused gift cards.
In an era of savvy shopping and financial mindfulness, CardCash is a promising solution to make the most of every gift card.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
What is CardCash?
CardCash is a valuable online platform you can tap into for buying, selling, and exchanging gift cards. A brainchild of Elliot Bohm and Marc Ackerman, it was launched in 2009 with the goal of solving the problem of unused gift cards in America.
Via the CardCash platform, you can:
Sell your gift cards for up to 92% of the card’s value based on the popularity of the retailer.
Use CardCash to purchase gift cards, at a discounted rate, in bulk from over 1100 brands including big names like Amazon, Walmart, Starbucks, and CVS.
Swap your gift card for another retailer. You won’t get the same value though.
Remember, though, you won’t quite get the full value of your card as CardCash keeps a small percentage.
Does CardCash pay you instantly?
No, CardCash does not provide instant payments with cash.
Instead, after your order is approved, payments are typically made within a 48-hour window. This is due to standard processing times.
However, if you select another gift card. That will be available once your order is approved.
The invoice for the gift card claims to offer approximately 92% of the card’s value, but it’s worth noting that the actual payout can be lower at times.
How Does CardCash Work?
CardCash is a brilliant platform if you’re looking to sell, buy, or exchange gift cards. Here’s a quick guide on how you can get started:
Sign up on CardCash.com.
To sell a gift card, enter the merchant’s name and the balance on the gift card.
CardCash will give you an offer; if you accept, you get paid via mailed check, ACH payment, or PayPal. Or you can opt for a Prepaid Mastercard or another retailer gift card of your choice.
To buy a gift card, browse through the list of available cards and pick one that suits you.
Proceed to payment and enjoy your discounted gift card!
Pro Tip: Always check the price differences between the card value and the purchase price for the best deals.
How much does CardCash pay for gift cards?
Contrary to what CardCash claims, you won’t receive the full 92% of your gift card’s value.
The actual amount you’ll get depends largely on how popular the issuing merchant is. For popular sellers like Amazon or Walmart, you might get closer to their claim, but not always.
Sadly, for less-known retailers, offers might sink as low as 50% of your gift card’s worth.
Pros of CardCash
Considering an online platform for buying, selling, or swapping gift cards? CardCash is definitely one to consider.
Personally, I wanted to test it out and today you can find my CardCash Review.
The distinct features of CardCash include:
A wide selection of gift cards from over 1100 retailers
Instant payment in cash or a swap for another gift card when you sell your unused gift cards
Exclusive offers and discount opportunities for regular users
Convenience as the platform is easy to use and provides a hassle-free experience for users who buy or sell gift cards.
Unused gift cards can be sold for cash or swapped for your preferred merchant’s gift cards, giving value to otherwise wasted money.
Very user-friendly: It’s simple and effortless to buy and sell gift cards on this platform – a massive plus for users.
With all these advantages, CardCash makes a pretty compelling case as your go-to online gift card marketplace.
CardCash, a reputable gift card marketplace, might just be the perfect match for your needs!
Cons of CardCash
Before you decide to use CardCash, it’s important to weigh the drawbacks of the platform against its benefits.
Recognizing these concerns helps you make an informed decision and avoid potential hiccups along the way.
Here are the top cons to using CardCash:
Lower Payouts: When you decide to sell your gift cards on the platform, you might receive lower payouts than you’d expect. Be sure to carefully evaluate these potential losses.
Merchant isn’t on Platform: Not all merchants are available on the platform, which is unfortunate.
Short Buyer Protection Guarantee: Compared to other gift card marketplaces, CardCash’s 45-day buyer protection guarantee feels rather insufficient. For comparison, Raise offers a guarantee for a full year.
Disappearing Balances: Many users have reported issues with their card balances mysteriously disappearing, which can be quite unsettling. Learnwhy this unfortunately happens.
Is CardCash Legit?
Yes, CardCash is legit.
They’re a longstanding player in the gift card industry, thanks to robust security measures and a user-friendly platform.
Established over a decade ago, they have experience in offering a secure platform for buying, selling, or trading gift cards.
How do you go about sending eGift cards to CardCash?
Converting eGift cards works essentially the same way as converting physical gift cards. You still get the same benefits whether you are converting eGift cards or physical ones.
All you need to provide is the relevant information about the eGift card.
The payment process for selling eGift and physical gift cards is the same.
You can receive payment in cash or you can exchange for another gift card of your choosing.
Expert Tip: Make sure to accurately provide all necessary details regarding your eGift card to ensure a smooth transaction process.
CardCash Common Questions
CardCash is a website that allows you to buy, sell, and trade gift cards.
I tested out the site with various gift cards as part of my Cardcash review.
As this concept may be new to you, let’s answer some common questions about CardCash and give you our honest opinion on whether or not it’s a legit website.
1. Are CardCash transactions safe?
CardCash transactions are generally safe.
As a reputable marketplace for gift cards, CardCash enforces strict security measures like other platforms such as eBay or Amazon. However, it’s important to remember that you’re dealing with third parties that could potentially misuse gift card PINs.
To counteract this, CardCash offers a money-back guarantee for unsatisfied purchases. For example, if a gift card you bought is exposed as fraudulent, you can get your money back.
Despite this, always exercise caution, and use common sense while making transactions.
2. Are there any fees when buying or selling a gift card?
When you’re buying or selling gift cards on CardCash, there are no fees applied to your transactions.
The platform allows free signup and doesn’t charge for usage.
Purchasing a gift card? Absolutely zero fees. All you pay for is the discounted cost of the card itself.
Selling a gift card? No worries, still no fees. After providing your card details and balance, you’ll receive an offer. If you accept, the payment goes directly to you via check, PayPal, or direct deposit with no extra charges.
For instance, you have a $50 Best Buy gift card. After inputting the details, CardCash offers $45. If you accept, the $45 is sent to you without any deductions.
3. Is there any risk of identity theft when buying or selling gift cards?
Identity theft is when someone unlawfully obtains and uses your personal information, often for fraudulent purposes.
No, there should not be the risk of identity theft when buying or selling gift cards.
4. Is CardCash safe to use?
CardCash is definitely safe for use.
Operating since 2009, the platform is not only registered but also provides users with advanced security measures to secure personal data and transactions.
With a physical address and listed contact number, assistance is always at hand. Think of CardCash like a vault – your unused gift cards are safe to sell on it and your personal details are locked away securely.
5. Does CardCash buy stolen gift cards?
No, CardCash does not buy stolen gift cards. That is 100%, not their intent.
When you sell a gift card to CardCash, they require you to provide certain personal details to comply with federal anti-money laundering laws. CardCash uses these details to verify the authenticity of the sale and the seller.
However, remember that CardCash is an online marketplace where third-party vendors sell cards. Although most users are honest, there’s a risk of encountering scams unfortunately, and you should always exercise caution when using the platform.
Learn how to handle an Amazon package says delivered but not received.
6. Is it safe to buy gift cards with a credit card?
It is safe to buy gift cards with a credit card as long as you are using a reputable source.
When you use a credit card, you have the added protection of being able to dispute the charges if you do not receive the gift card or if it is not what you expected.
Make sure you are on CardCash’s legit website and you see the lock on the search bar indicating a secured website.
7. Are there any drawbacks to using CardCash?
One key drawback is the misleading discount rates.
Partner websites listed on CardCash may promise higher discounts than they actually deliver, leaving you scratching your head when your wallet feels lighter than expected.
As part of my Cardcash review, my Red Robin gift card valued at $25 would only receive $15.75 cash, which is 63% of its value.
Another significant concern is the 45-day buyer protection. Your best bet is to use your gift card within this limited time frame to avoid losses.
8. What are CardCash’s payout options?
For most, you want a direct, monetary form of compensation which is quite advantageous for those individuals who prefer having cold, hard cash as opposed to holding onto a gift card that they will never use.
Here are CardCash’s payout options:
Cash: CardCash allows users to sell their gift cards in exchange for cash. You can get a mailed check, ACH payment, or PayPal.
Prepaid Mastercard: Besides cash, CardCash also gives users the option to receive their payment via a Prepaid Mastercard. This is a convenient option, especially for those who like to keep their funds digital or for those who might not have convenient access to a bank.
Another gift card: One of the unique payout options provided by CardCash is the ability to exchange a gift card for another one. This option typically gives you a higher payout amount as well. But, you are limited to the merchants offered.
Just remember, payouts can fluctuate and might be less depending on the popularity of the gift card’s merchant.
9. Is it safe to sell gift cards on CardCash?
CardCash is a trusted platform where you can safely sell your unwanted gift cards.
However, keep in mind that you probably won’t get the full face value of the card, as the company keeps around 8-10% of its value.
Despite this, it’s a reliable way to make some money from unused gift cards. Card Cash is not a scam
10. What should I do if I have a complaint about CardCash?
If you’ve got complaints about CardCash, it’s crucial to voice them right away – that’s how issues get resolved.
Try reaching out to their customer support using the “Contact Us” form on their website.
If your complaint is due to balance discrepancies within 45 days of purchase, then email [email protected].
If that doesn’t work, send a detailed email to [email protected]. Be sure to mention specific problems and desired outcomes.
Most importantly, if there’s an issue with a gift card you bought, ensure you file a complaint within 45 days of purchase to receive a full refund.
My CardCash Review
Having firsthand experience with CardCash, I can share my insights about the process and how it measures up to my expectations.
Firstly, the process was indeed straightforward to navigate. The platform has been designed in a very user-friendly way that facilitates convenience and efficiency. It’s quite simple to get onboard, sell, or purchase a gift card.
However, there was a slight hitch – the value percentage offered. This slippage is more than I anticipated.
According to my experience and perception, the payouts for selling gift cards felt a bit lower than expected.
Here were the values I was given:
=> Olive Garden = 71% of value => Red Robin = 63% of value => Chili’s = 70% of value => DoorDash = not an option to sell
Gauging the 45-day buyer protection guarantee initially, it seemed impressive as it ensures a refund if the gift cards don’t function as advertised. However, there’s a catch – the gift cards should be used within this 45-day window, as the 45-day guarantee goes away.
In a nutshell, the experience with CardCash has been a positive experience. Personally, I would have rather been given the cash to use as a please versus a gift card.
However, all of the local gift card exchange kiosks don’t trade in gift cards. So, I felt my options were limited and chose to use CardCash.
FAQ
Yes, selling gift cards for cash is legit.
You need to use a verified site to avoid a scam.
A credit card is needed on CardCash for several reasons.
In order to use the service, you must have a credit card so that you can be properly verified. This is necessary in order to protect both the buyer and the seller.
This CardCash Review Should Help You
So, you’re considering CardCash for buying or selling gift cards, huh?
Well, on the positive side, CardCash offers an easy channel for getting rid of unwanted gift cards or buying new ones with a discount – sounds like a good deal, right?
Buying gift cards with a credit card from sites like CardCash can be safe, provided you take some precautions.
For me, it was a simple process and I chose another gift card.
Consequently, it’s important to remember that you’re purchasing second-hand gift cards, which could potentially have odd issues come up.
To ensure your value, make use of the 45-day guarantee. For example, if you’re planning a big purchase next month, buy the gift card now and make sure to use it within this timeframe. This minimizes the risk of being left with a worthless card after the guarantee period.
So, do your homework, understand how CardCash operates before diving in, or consider other options for more reliable service.
Just remember, while buying, you pay about 90-92% of the card value, and while selling, you get the same.
Know someone else that needs this, too? Then, please share!!
Step into the inviting realm of Massachusetts’ charming small towns, where timeless beauty, community warmth, and a rich history blend harmoniously. From scenic landscapes to cultural treasures, each town unfolds a unique narrative waiting to be explored. Join us as we embark on a journey to discover 7 beautiful small towns in Massachusetts.
1. Adams, MA
Median sale price: $162,000
Walk Score: 82
This town’s heritage is reflected in its historical sites and museums, offering glimpses into its past. Adams’ community thrives through local events that bring residents together in celebration. Whether you’re indulging in local cuisine, exploring cultural gems, or partaking in town gatherings, everyone can find something to love in Adams.
Homes for sale in Adams, MA
Apartments for rent in Adams, MA
2. Athol, MA
Median sale price: $360,000
Walk Score: 66
Athol opens its arms to those seeking a blend of nature and culture. The town’s natural beauty is mirrored in its outdoor spaces and recreational opportunities. Athol’s artistic soul is showcased through local galleries and creative workshops. If you’re wandering amidst natural wonders or immersing yourself in artistic expression, Athol offers a peaceful escape for all who live there.
Homes for sale in Athol, MA
Apartments for rent in Athol, MA
3. Lenox, MA
Median sale price: $700,000
Walk Score: 65
Lenox provides an elevated New England experience with a plethora of cultural attractions. You’ll often find locals at the renowned Tanglewood Music Center, enjoying outdoor concerts in the stunning Berkshire Hills. Looking for more to do? The historic Ventfort Hall provides a glimpse into Gilded Age opulence, while hiking trails in Kennedy Park offer opportunities to appreciate the region’s natural beauty.
Homes for sale in Lenox, MA
Apartments for rent in Lenox, MA
4. Hardwick, MA
Median sale price: $318,600
Walk Score: 25
Hardwick offers a quiet retreat where history and nature converge in harmony. Residents often explore the iconic Hardwick Common, a historic district with preserved colonial-era architecture. The Hardwick Winery provides a delightful spot for tastings and events, while the Quabbin Reservoir invites outdoor enthusiasts for hiking and birdwatching.
Homes for sale in Hardwick, MA
Apartments for rent in Hardwick, MA
5. Dighton, MA
Median sale price: $551,000
Walk Score: 4
Dighton beckons with a rural charm that resonates with those who appreciate simplicity. The town’s scenic landscapes invite leisurely walks and opportunities for rural exploration. Dighton’s strong sense of community is upheld through local gatherings and shared appreciation for its surroundings.
Homes for sale in Dighton, MA
Apartments for rent in Dighton, MA
6. Marion, MA
Median sale price: $882,500
Walk Score: 13
Marion encourages you to savor coastal beauty and a maritime heritage. The town’s connection to the sea is mirrored in its waterfront activities and nautical charm. Marion’s spirit is celebrated through events that honor its seafaring traditions and bring neighbors together. The town’s artistic flair is showcased in local galleries and creative workshops.
Homes for sale in Marion, MA
Apartments for rent in Marion, MA
7. Essex, MA
Median sale price: $800,000
Walk Score: 54
With its seaside features, Essex provides a unique and enriching place to call home. Locals often enjoy exploring the Essex Shipbuilding Museum, delving into the town’s history of boat building. The stunning Crane Beach becomes a sanctuary for relaxation and outdoor activities during the summer months, while the annual Essex ClamFest celebrates the area’s culinary delights.
Homes for sale in Essex, MA
Apartments for rent in Essex, MA
Wrapping up small towns in Massachusetts
Massachusetts’ small towns offer a diverse array of experiences that celebrate nature, history, and community. Each town unveils its unique character through cultural offerings, natural beauty, and shared gatherings. Whether you’re drawn to cultural sophistication, serene landscapes, or coastal retreats, these small towns in Massachusetts are sure to delight.
New homes made up close to one-third of for-sale units in the second quarter, as an ongoing scarcity of existing inventory helped keep the level near a record high, Redfin reported.
New construction accounted for 31.4% of the market, the largest portion in the quarterly period on record. The number increased from 30.3% between April and June last year, but was down from the first-quarter all-time record of 33.6%.
By comparison, new homes represented just 17% of for-sale inventory in the second-quarter of pre-pandemic 2019.
A combination of pandemic-related factors are propping up new-home numbers, even as builders are producing a smaller number of units compared to a few years ago. Surging interest rates, which are almost 4% higher today from their level in early 2022, resulted in a lock-in effect, where homeowners are now hesitant to move to take out a new mortgage at current levels, leaving the existing-sales market sluggish.
Meanwhile, outstanding inventory remains from a pandemic-fueled building rush in 2021 and early 2022, providing some potential opportunities for aspiring buyers while resale-home availability remains low, Redfin said.
“Builders are still building but homeowners aren’t selling, so new construction is the only option for many buyers,” said Shauna Pendleton, a Redfin agent in Boise, Idaho.
In June, the total amount of for-sale inventory fell 15% on an annual basis to an all-time low, the real estate brokerage said. The existing-home market fueled the drop, with an 18% decline year-over-year. The number of newly built single-family homes for sale, though, increased 4.5% by comparison, leading builders to offer a number of concessions to buyers in order to move units off the market.
Redfin’s quarterly data coincides with similar recent findings by other housing researchers. Online listing service Realtor.com said overall home selling trends were pointing to the potentially lowest sales numbers this year in over a decade.
At the same time, new-home buying activity is showing hints of resilience in the overall housing market. Consumers are still willing to consider purchasing even amid elevated rates, economists have noted. The volume of loans taken out to purchase newly built units is consistently higher in 2023 compared to year-ago levels, according to the Mortgage Bankers Association, which also recently said the segment would be “key to the housing market recovery in 2023.”
The market with the highest share of new homes for sale relative to total numbers was El Paso, Texas, at 52.1%; followed by Omaha, Nebraska; Raleigh, North Carolina; and Oklahoma City, at 45.5%, 42.1% and 39.3%, respectively.
While builder-constructed homes in Boise made up a 38.3% slice of inventory in the second quarter, landing the city fifth on the list of metropolitan areas ranked by total market share, it also experienced the largest annual decline in new houses put up for sale. The share decreased by almost 11 percentage points from 49% one year earlier.
The city that experienced the second largest decline was Austin, Texas, where new homes on the market decreased to 30.4% of inventory compared to 34.5% in the second quarter of 2022. Honolulu, which ranked third in this category, saw its new-home share drop to 2.8% from 6.4%.
While Fed rate hike forecasts indicate the worst is behind us, mortgage rates are still going up.
In fact, they hit a new 52-week high this morning, surpassing the brief highs seen back in October.
That puts the 30-year fixed at its highest level in more than 20 years, averaging around 7.5%.
This will likely grind the housing market to a halt, which was already grappling with affordability woes prior to this most recent leg up in rates.
The question is why are mortgage rates still increasing if long-term signals indicate that relief is in sight?
The 30-Year Fixed Mortgage Is Now Priced Close to 7.5%
Depending on the data you rely on, the popular 30-year fixed is now averaging roughly 7.5%, up from around 6% to start the year.
If we go back to the start of 2022, this rate was closer to 3.5%, which is a shocking 115% increase in little over a year.
And while mortgage rates in the 1980s were significantly higher, it’s the speed of the increase that has crushed the housing market.
Additionally, the divide between outstanding mortgage rates held by existing homeowners and prevailing market rates has created a mortgage rate lock-in effect.
In short, the higher mortgage rates go, the less incentive there is to sell your home, assuming you need to buy a replacement.
Aside from it being extremely unattractive to trade a 3% mortgage for a rate of 7% or higher, it can be out of reach for many due to sheer unaffordability.
As such, the housing market will likely enter the doldrums if mortgage rates remain at these 20-year highs.
But Isn’t the Fed Done Hiking Rates?
As a quick refresher, the Federal Reserve does not set consumer mortgage rates, but it does make adjustments to its own federal funds rate.
This short-term rate can dictate the direction of longer-term rates, such as 30-year mortgages, which track the 10-year Treasury pretty reliably.
Mortgage-backed securities (MBS) and 10-year bonds attract the same investors because the loans generally last the same amount of time.
Typically, investors get a premium of about 170 basis points (1.70%) when they buy MBS as opposed to government-guaranteed bonds.
Lately, these mortgage spreads have nearly doubled, to over 300 basis points, as seen in Black Knight’s graphic above, thanks to general volatility and an expectation these loans will be refinanced sooner rather than later.
But what’s strange is both the 10-year yield and mortgage rates have continued to rise, despite the Fed’s tightening campaign being seemingly over.
To illustrate, a recent Reuters poll found that the Fed is likely done raising interest rates, “according to a strong majority of economists.”
And we’re talking strong. A 90% majority, or 99 of the 110 economists, polled between August 14-18, believe the federal funds rate will stand pat at its 5.25-5.50% range during the September meeting.
And about 80% of these economists expect no further rate hikes this year, which tells you we’ve already peaked.
Meanwhile, a majority among the 95 economists who have forecasts through mid-2024 believe there will be at least one rate cut by then.
So not only are the Fed rate hikes supposedly done, rate cuts are on the horizon. Wouldn’t that indicate that there’s relief in sight for other interest rates, such as mortgage rates?
Mortgage Rates Need Some Convincing Before They Fall Again
As I wrote last week in my why are mortgage rates so high post, nobody (including the Fed) is convinced that the inflation fight is over.
Yes, we’ve had some decent reports that indicate falling inflation. But declaring victory seems foolish at this juncture.
We haven’t really experienced much pain, as the Fed warned when it began hiking rates in early 2022.
The housing market also remains unfettered, with home prices rising in many areas of the country, already at all-time highs.
So to think it’s job done would appear crazy. Instead, we might see a cautious return to lower rates over a longer period of time.
In other words, these higher mortgage rates might be sticky and hard to shake, instead of a quick return to 5-6%, or lower.
At the same time, the argument for 8% mortgage rates or higher doesn’t seem to make a lot of sense either.
The one caveat is if the Fed does change its mind on rate hikes and resume its inflation fight.
But that would require most economists to be wrong. The other wrinkle is increased Treasury issuance thanks to government spending and concurrent selling of Treasuries by other countries.
This could create a supply glut that lower prices and increases yields. But remember mortgage rates can tighten up considerably versus Treasuries because spreads are double the norm.
To sum things up, I believe mortgage rates took longer than anticipated to reach cycle highs, will stay higher for longer, but likely won’t go much higher from here.
Now that short-term rates seem to have peaked, as the Fed watchers indicate, long-term rates will need to slowly digest that and act accordingly.
In the meantime, we’re going to see even less for-sale inventory hit the market at a time when supply has rarely been lower. This should at least keep home prices afloat.
A short ladder attack is a supposed trading condition in which hedge fund sellers come together to drive down a stock price that is already undergoing bearish pressure. Retail investors are often seen as the victims in this situation.
While not a purely defined strategy, some individual investors believe that these efforts work to the detriment of smaller traders. The theory is that as an asset’s price moves lower it prompts other investors to dump shares, leading to prices spiraling even lower.
How Does a Short Ladder Attack Work?
The short ladder attack strategy became notorious during the meme stock craze of early 2021 when shares of companies like GameStop (GME) and AMC Entertainment (AMC) experienced intense volatility and massive short squeezes. It was alleged that large investors responded with short ladder attacks to drive prices back down.
In 2022, there was even some chatter that various cryptocurrencies were targeted for the same bearish strategy.
A short ladder attack begins when an institution builds a large short position in a security. Being short involves buying shares, then immediately lending them out with the goal of re-acquiring them at a lower price. As the asset drops in value, the short seller profits.
The maximum profit on a short play is when the asset drops to $0, perhaps when bankruptcy is made official by the targeted company. A short ladder attack is meant to give the impression that shares of a stock (or any asset) are not worth what bullish investors believe, thus inducing other traders to dump shares or simply discourage others from buying.
Are Short Ladder Attacks Legal?
Short ladder attacks are usually legal trading tactics, but when market manipulation laws are breached, it becomes a serious crime. It is important to recognize that short selling volatile assets is an age-old Wall Street practice.
In general, there is nothing nefarious about shorting a stock. In fact, according to the U.S. Securities and Exchange Commission (SEC), short sellers add liquidity to the market. More liquidity can reduce trading costs for other market participants.
During bear markets, however, short sellers often come under scrutiny from both regulators and the investing public for their perceived efforts to bring down key stocks and the broader market.
In extraordinary situations, shorting stocks is sometimes ruled illegal — at least temporarily. Regulators will occasionally ban selling groups of assets short with the goal of stabilizing financial markets during periods of turmoil, such as during the Great Depression and the financial crisis of 2008-09. Beyond those instances, short selling is not illegal.
Short ladder attacks are infamous in the sense that traders engaging in such a strategy seek to drive asset prices lower. The tactic is not illegal, however. At times, though, there can be illegal attempts to take a stock price down.
Where is the line drawn? It’s when a trader manipulates the laws using malicious activities like lying about a company, bribing others to not buy shares of the targeted firm, or the practice of spoofing.
Example of a Short Ladder Attack
Short ladder attacks are not something traders see every day. In fact, they can be hard to spot. It’s not a truly defined term, rather it is a loose theory.
Still, market analysts and traders can suspect a certain stock is under this “attack.” Potential examples include popular Wallstreetbets meme stocks from early- to mid-2021: GameStop (GME), AMC Entertainment (AMC), and Bed Bath & Beyond (BBBY).
When shares of those companies began to falter during the first quarter of 2021, after their meteoric rise in the preceding weeks, conspiracies began to arise within internet chat rooms. Retail investors, who had lost money by being long those shares, claimed they were victims of unscrupulous trading strategies employed by large funds by way of short ladder attacks. It was thought that hedge funds came together to enter low bids that drove those securities lower.
Ask a short seller, and they might tell you that this strategy does not exist. After all, conspiracies to drive down a share price could venture into the market manipulation area, which would be against financial market rules.
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How Can You Identify a Short Ladder Attack?
Even as big-time traders dismiss the practice, short ladder attacks are thought by some retail traders to be a normal practice. Spotting these maneuvers is no easy task since selling pressure can come from a host of market participants for a variety of reasons.
Perhaps there is bad news about a company that might fundamentally bring about the bears (who have no ill intent). Maybe a stock drops below a key technical level, leading to further selling. Moreover, it could be that major company insiders are dumping shares simply to raise cash for personal reasons. All these scenarios can give the impression of a short ladder attack.
You still might wonder, “what is a short ladder attack?” in real life. Some possible hallmarks could be high volume on downward price moves. Also, be on the lookout for brief squeezes in which short sellers are forced to engage in covering — when bears quickly buy back stock they are short to avoid steep losses. Also, stocks with high short interest could be targets of a short ladder attack. Basically, whenever floods of offers hit a stock for no apparent reason, that could be a short ladder attack signature.
You might recall the mother of all short squeezes (colloquially named MOASS) term. It’s when a flood of buyers bid up shares that were being shorted by other investors. GameStop’s example was one to behold in that the price jumped hundreds of percent over the course of a few days.
Short Ladder Attacks and Wallstreetbets
According to those on Wallstreetbets, short ladder attacks exist to work against individual investors. By flooding the market with offers, the supply/demand balance tips greatly in favor of the bears. Posts on Wallstreetbets attempted to call out the practice, but little (if any) regulatory action has been taken.
This abusive ploy is alleged to be executed by a consortium of hedge funds, prime brokers, and even potentially regulators and clearinghouses. Target stocks are determined and prioritized, almost like a hit list. After driving shares lower, the short sellers avoid capital gains tax since they never have to cover their shares.
The Takeaway
Short ladder attacks are alleged bearish trading activities performed by large institutional traders that work against retail traders who are long a stock.
While the practice is not illegal on its own, crossing the line into market manipulation will catch the eye of regulators. Many large hedge fund managers claim to be unaware of such a practice. Additionally, research firm Muddy Waters is highly skeptical that short ladder attacks truly exist. Still, retail traders on internet stock trading forums claim they were victimized by short ladder attacks.
Qualified investors who are ready to try their hand at options trading, despite the risks involved, might consider checking out SoFi’s options trading platform. The platform’s user-friendly design allows investors to trade through the mobile app or web platform, and get important metrics like breakeven percentage, maximum profit/loss, and more with the click of a button.
Plus, SoFi offers educational resources — including a step-by-step in-app guide — to help you learn more about options trading. Trading options involves high-risk strategies, and should be undertaken by experienced investors.
With SoFi, user-friendly options trading is finally here.
Photo credit: iStock/seb_ra
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Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire amount invested in a short period of time. Before an investor begins trading options they should familiarize themselves with the Characteristics and Risks of Standardized Options . Tax considerations with options transactions are unique, investors should consult with their tax advisor to understand the impact to their taxes. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Nestled along the coastline of South Carolina, Charleston is renowned for its cobblestone streets, centuries-old architecture, and vibrant culinary scene. This city is timeless and dynamic with a legacy shaped by its pivotal role in American history, its alluring waterfront, and a unique blend of Southern hospitality. But you may be wondering, what is Charleston known for? Whether you are looking to rent an apartment in Charleston or purchase a home in the area, in this Redfin article, we look at 6 things that make Charleston the city as it’s known today.
1. Distinct churches
Charleston boasts several churches that reflect the city’s rich history and cultural heritage. The city’s religious landscape encompasses many denominations and architectural styles. Historic churches such as St. Michael’s Episcopal Church, dating back to the 18th century, showcase exquisite Gothic Revival architecture. The Circular Congregational Church, known for its unique circular shape, is a testament to Charleston’s nonconformist roots. The French Huguenot Church is a tribute to the city’s early French Protestant settlers. At the same time, the Kahal Kadosh Beth Elohim synagogue, one of the oldest in the United States, highlights Charleston’s Jewish community. With over 400 places of worship, it’s no wonder Charleston is nicknamed, “The Holy City.”
2. Exquisite Southern cuisine
From soul-warming comfort foods to innovative reinterpretations of classic dishes, Charleston’s food scene offers a journey through Southern cuisine. At the heart of Charleston’s culinary identity are iconic Lowcountry staples such as shrimp and grits, which blend fresh local seafood and creamy grits. Reflecting its agricultural roots, Charleston also focuses on farm-to-table dining, where restaurants showcase produce from local farms. Classic Southern ingredients like okra, collard greens, and cornbread are lovingly prepared and given modern twists in upscale eateries and down-home diners. And, of course, you can always dive into the delicious barbecue delights Charleston is known for.
3. Historical buildings
Known for its preservation efforts, Charleston showcases several centuries of diverse architectural styles. The city’s Historic District features antebellum mansions with intricate wrought ironwork, showcasing the pre-Civil War era. Some notable examples include The Nathaniel Russell House and the Aiken-Rhett House. The Four Corners of Law, a convergence of governmental and religious buildings, showcase the city’s legal, religious, and civic heritage. As one of the oldest cities in the United States, Charleston boasts many colonial-era buildings, such as the Pink House and the Heyward-Washington House. The preservation efforts extend to historic churches like St. Philip’s Episcopal Church and the Circular Congregational Church. Not to mention, the city is connected by beautiful, well-preserved cobblestone streets.
4. Beautiful sandy beaches
From the bustling shores of Folly Beach to the tranquil expanses of Isle of Palms and Sullivan’s Island, Charleston’s beaches offer diverse experiences. Some notable beaches include Folly Beach, frequented for its laid-back atmosphere which draws surfers and sunbathers alike. In addition, Isle of Palms and Sullivan’s Island provide a more serene escape with their pristine stretches of sand and relaxed ambiance.
5. Rainbow Row
Rainbow Row is one of Charleston’s most iconic and picturesque landmarks, showcasing vibrant historic houses along East Bay Street. The thirteen colorful Georgian and Federal-style houses are a visual delight and hold a historical significance dating back to the 18th century, as they represent Charleston’s resilience and revival after a devastating fire in 1776. Once facing neglect, these homes were restored in the 20th century, breathing new life into the neighborhood and sparking a preservation movement that continues to shape Charleston’s identity.
6. Watersports and activities
Charleston’s waterfront offers engaging activities that capitalize on the city’s coastal allure. The Charleston Harbor is the perfect location for boat tours and charters providing opportunities to sail its tranquil waters while taking in panoramic views of the city’s skyline and historic landmarks. Waterfront parks like Waterfront Park and White Point Garden offer spots for picnics and leisurely strolls, inviting visitors to savor the cool ocean breeze and revel in the lush green spaces. For those seeking more active pursuits, kayaking and paddleboarding allow for an up-close encounter with the harbor’s natural beauty, with chances to spot dolphins and diverse marine life.
Indianapolis, IN, is a city steeped in history and holds a treasure trove of intriguing facts to be explored in its vibrant culture. Beyond its renowned sports heritage and iconic landmarks, this captivating metropolis offers a tapestry of stories that underscores its unique character. From its unexpected role in culinary innovation to its electric sports scene, Indianapolis certainly unveils a world of fascinating surprises. Whether you are looking to rent an apartment in Indianapolis or purchase a home in the area, these six fun facts captivate the essence of this remarkable city.
1. Indianapolis as a sports city may be a bit of an understatement
Indianapolis stands proudly as a prominent sports city known for its fervent sports culture and rich history of hosting major sporting events. Home to iconic venues like Lucas Oil Stadium and the Indianapolis Motor Speedway, the city has established itself as a sports enthusiast hub. Indianapolis is notably associated with the Indianapolis 500, one of the world’s most prestigious auto races. Additionally, the city’s devotion to basketball is showcased by hosting the NCAA Men’s Basketball Tournament and its strong support for the Indiana Pacers.
2. Sliced bread was invented in Indianapolis
Sliced bread has an unexpected origin in Indianapolis. Otto Frederick Rohwedder, an inventor, introduced the world to sliced bread in 1928 when he unveiled his patented bread-slicing machine in this Midwest city. This groundbreaking invention revolutionized the baking industry by allowing for pre-sliced, consistent, and convenient portions of bread, making it a staple in households nationwide.
3. The Children’s Museum of Indianapolis is the largest children’s museum in the world
The Children’s Museum of Indianapolis holds the esteemed title of the world’s largest children’s museum. This iconic institution offers an immersive experience with an impressive collection of interactive exhibits spanning diverse topics, from science and history to arts and culture. With its vastness comes the opportunity for children to explore and engage in many hands-on activities, fostering learning through play and exploration. There are many exhibits to explore, from life-sized dinosaur exhibits to simulated space missions.
4. Indianapolis is known as the crossroads of America
Indianapolis, often called the “Crossroads of America,” holds a pivotal and strategic position within the United States transportation network. This well-deserved moniker stems from the city’s unique geographical location at the intersection of major highways, railroads, and air routes that crisscross the nation. Serving as a vital hub for both commercial and recreational travel, Indianapolis offers unparalleled connectivity, making it a central point for the movement of goods, people, and ideas.
5. Indianapolis is home to the legendary Indianapolis 500
Indianapolis, a city steeped in motorsports history, proudly claims one of the most iconic and prestigious events in the racing world—the legendary Indianapolis 500. Held annually at the historic Indianapolis Motor Speedway, this famous race has captivated racing enthusiasts for over a century. Established in 1911, the Indianapolis 500, often referred to as the “Greatest Spectacle in Racing,” showcases the skill, speed, and endurance of drivers as they navigate the famed 2.5-mile oval track.
6. The city is home to one of the oldest bars in the state
Established in 1850, the Slippery Noodle Inn is known as an entertainment hub that has hosted countless generations of patrons, including famous musicians and notable figures. With its exposed brick walls, rustic decor, and nostalgic charm, the bar invites visitors to step back while enjoying live music, classic cocktails, and a lively atmosphere.
Nestled in Arizona’s picturesque landscape, Prescott is a city that seamlessly blends history, natural beauty, and community spirit. Prescott exudes a sense of timelessness as Arizona’s first territorial capital while embracing modernity. Beyond its charming streets and stunning vistas, this city holds many intriguing facts that have helped shape its character today. Whether you are looking to rent an apartment in Prescott, or purchase a home in the area, this Redfin article will explore five captivating facts about Prescott and its enduring significance in both the past and the present.
1. Prescott was named after someone who had never been to Arizona
Amidst the American West’s expansion, Prescott emerged as a settlement, chosen to serve as the Territorial Capital of Arizona In 1864. This decision was made due to Prescott’s central location and its potential to foster commerce, government administration, and development in the newly carved Arizona Territory. The city’s establishment coincided with the Civil War. It was named in honor of William H. Prescott, one of the most distinguished historians of the 19th century, but who also ironically had never set foot in what would become the great state of Arizona. The city of Prescott served as the capital until 1867 when the designation was moved to Tucson and later to Phoenix.
2. The city has a rich mining history
Prescott’s history is rooted in mining, a legacy that played a vital role in shaping the city’s growth and character. With the discovery of gold in the nearby Bradshaw Mountains during the 1860s, Prescott swiftly evolved into a bustling mining town, drawing prospectors and settlers seeking their fortunes. The Bradshaw Mountains yielded valuable minerals like gold, silver, and copper, fueling a mining boom that transformed Prescott into a regional economic powerhouse. Though the initial rush subsided, mining remained a cornerstone of Prescott’s economy for decades, with the city’s landscape dotted with historic structures from its mining bygone days.
3. Prescott is part of the “Quad-City” area
Prescott is part of a region known as the “Quad-City” area, a collective term that encompasses four distinct municipalities nestled in the heart of north-central Arizona. Alongside Prescott, this community consists of Prescott Valley, Chino Valley, and Dewey-Humboldt. These cities form a network that shares resources, amenities, and a common identity. The Quad-City area is known for its picturesque landscapes, moderate climate, and harmonious urban and rural living blend.
4. The Yavapai tribe first inhabited the area of Prescott
The surrounding area of Prescott is the ancestral homeland of the Yavapai tribe, the region’s original inhabitants. Before European settlement, the Yavapai people established communities in the valleys and mountains surrounding present-day Prescott. With a deep connection to the land, they thrived through a lifestyle centered around hunting, gathering, and cultivating resources. The Yavapai’s intricate knowledge of the local flora, fauna, and ecosystems enabled them to flourish within the diverse terrain. Their cultural traditions, spiritual beliefs, and unique way of life created a harmonious relationship between their community and the natural environment.
5. Half the city burned down in 1900
In 1900, Prescott faced a significant event called the “Great Fire of 1900.” Erupting on the Fourth of July, the fire consumed a substantial portion of Prescott’s downtown area. Fueled by strong winds and dry conditions, the flames swiftly spread through wooden structures, shops, and residences. The fire’s path of destruction altered the city’s landscape, leaving many historic buildings and landmarks reduced to ashes.