“Common sense is not a gift. It’s a punishment because you have to deal with everyone who doesn’t have it.” Common sense tells us that what goes up, must come down. Tulip bulbs, Florida real estate in the 1920s, cryptocurrency, and now sneakers. People need a place to live, but they don’t need to own fancy shoes hoping they’ll go up in price. The secondary market for Air Jordans, Nike Dunks and Air Force 1s is tumbling, with some limited-edition shoes selling for 30 percent less than they did several months ago. The sneaker resale market, which as of last year was racking up $6 billion in annual sales, has now hit a moment where supply exceeds demand. It’s bad out there: Nike Dunk Low Retro White Blacks that resold for $290 in February are now selling for under $200, and the Air Jordan 1 Retro High OG “Patent Bred,” is now selling for $230, down from $300 in February. The sell-off comes as investors in sneakers seek to unload their wares, potentially related to a tighter economic landscape in general. The average transactions at StockX, the sneaker resale marketplace co-founded by Rocket’s Dan Gilbert, were down 20 percent in June. (Today’s podcast is available here and today’s has an interview with Scott Haymore, Head of Mortgage Pricing and Secondary Markets at TD Bank, on what secondary marketing heads spend their days doing and the accessibility of homeownership. This week’s is sponsored by Candor. With Candor’s Machine as an Underwriter, lenders modernize their manufacturing infrastructure making them immune to margin, capacity, and staffing challenges forever.)

Published On: July 27, 2022 / Categories: Mortgage News /