Too Many Expensive Houses That Just Aren’t Selling
A report from the Commercial Appeal in Tennessee. “Among cities where at least 250 homes were flipped last year, Memphis ranks No. 1 for the portion — 11.7 percent — of all metro area home sales that involved a flip. Thomas Byrd generally sees house flipping as bad for Memphis. Flips and out-of-town investors inflate the price of houses for working Memphis families, which helps keep them in rental housing, said Byrd, a broker with ERA Legacy Realty who heads the local chapter of black real estate agents. ‘In some cases you may see a house in Frayser and you look for comps and you see it’s $124,000,’ Byrd said. ‘And you say, ‘Whoa, where did that price come from?’ You see the same agent working the deal and he may be selling it to somebody in California or Australia.’”
The Orange County Register in Florida. “Southern California isn’t exactly flipping over real estate. New data from Attom shows flips were on the upswing nationally in 2016 while declining locally. ‘Many local flippers are being priced out of the Southern California market and are either going further inland or to other states to flip, or not flipping at all,’ Attom’s Daren Blomquist says. ‘One flipper I talked to in Norwalk who has been doing this for 25 years said he has completely stopped buying and even compared the market to what he was seeing in 2008.’”
From Space Coast Daily in Florida. “There are now 247 single-family homes, condos and town homes built in 2017 for sale in Brevard County, according to the BrevardMLS.com. Last year, 233 properties sold that were built in 2016. ‘New home sales have continued to be strong for Adams Homes across the Southeast. Although hard cost increases have pushed home prices up, historically low interest rates have kept buyer excitement high’ says Elizabeth Porter, Regional Manager for Adams Homes. ‘Adams Homes has made a strong investment in lots to prepare for continued growth and we’re optimistic about the future.’”
The Greensboro News and Review in North Carolina. “The irony is rich. Residents incorporated northwest Guilford County’s three towns — Oak Ridge, Stokesdale and Summerfield — from 1989 through 1999 as protection from Greensboro’s annexation and the taxes and eventual crowding that come with that. But now Summerfield finds its quiet way of life challenged from, of all places, within. Some Realtors and residents say the town has too many expensive houses that just aren’t selling. Their solution: a new type of zoning called Planned Development that would allow developers to build less expensive, more concentrated housing on large tracts.”
“Churchill Brown has lived here for 17 years. The SunTrust real estate banker says he has no vested interest in any development. Still, as a homeowner he understands the need — the town is filled with mostly expensive homes. Summerfield has scores of smaller, older houses in subdivisions built before the town incorporated, but new construction has kept the median home price high — $336,000 in 2014, according to officials.”
“‘Ultimately what happens over time, if people want to make a move, they lose money,’ Brown said. ‘I’ve seen it play out on my street.’”
“Veteran Greensboro real estate executive Betty Smith said there’s simply an oversupply of big lots. Statistics show hundreds of large lots and houses are going unsold in northwestern Guilford County. In Summerfield, Stokesdale and Oak Ridge, up to 1,900 developed and undeveloped lots were available in January, according to research provided by Smith. That research shows the average new home price in the Summerfield/Oak Ridge area was $528,973 and $392,336 in the Stokesdale area. ‘We have a large number of lots already on the ground and there’s not a lot of buyers,’ she said.”
From The Real Deal on New York. “From name dropping to price chopping. One of the biggest price reductions in the city’s luxury market last week was a West Village townhouse that boasts an impressive guest list. In total, 12 properties asking more than $10 million received price reductions greater than 5 percent in the period between Monday March 6 through Tuesday, March 14, according to data from StreetEasy. The nearly 5,900-square-foot penthouse at Zeckendorf Development’s 50 UN Plaza hit the market in December, asking $25.25 million. Last week, $5.3 million was shaved off the price tag, a discount of 21 percent.”
“215 Sullivan Street: This six-bedroom, seven bathroom townhouse at Broad Street Development’s condo conversion sold for $17.4 million in March last year. The buyer, who used an LLC, is hoping to make some quick cash — and put it back on the market for $22.5 million in December. Last week, the seller downgraded expectations and dropped the price by 11 percent. It’s now on the market for $20 million.”
‘There are now 247 single-family homes, condos and town homes built in 2017 for sale in Brevard County…Last year, 233 properties sold that were built in 2016.’
But there’s no building going on…
I’ve seen an uptick in new construction in my little burg, and with precious few exceptions, they’re all McMansions.
same here. 3000 plus square feet is all I am seeing.
Here is a local example:
http://www.liverichfield.com/prairiestar
These are south of us in Berthoud.
1600 sq ft homes starting at 340K!
Click under “available homes” to see the insanity up front. They don’t even show the 3000+ sq ft models. Those must start at 500K!
You can get a 4000 sq ft golf course house in my nabe for less!
I drive past this joke on my way to work. There seems to be a lot of construction going on there and most of the houses look huge. Not sure if they are spec homes or if they already have buyers for them.
Here’s the Minturn A model:
Beds: 2 | Baths: 2
Sq. Ft.: 1,910 | Garages: 2
Price: $396,200
This is so wrong on so many levels. In the DC area, $400K will buy you 4 bedrooms right on the Metro subway stop. 1900 sq ft anywhere will get you a spacious 4 generous bedroom SFH. (HA will sneer at me, but he knows it’s true.)
The google map shows that this is nearly zero-lot line crap, and it’s in the middle of nowhere. Hope these people aren’t planning on commuting to Denver.
Hope these people aren’t planning on commuting to Denver.
Since it’s right on US 287, it’s a 35-40 minute drive to Broomfield or Boulder from Berthoud. I suspect that most who live there will be commuting to either Ft. Collins, Longmont, Louisville, Broomfield or Boulder, as there are absolutely no high paying jobs whatsoever in Berthoud and precious few in Loveland, which became an employment wasteland when HP pulled out.
This is indeed very wrong and way overpriced, even when compared to the high prices in Berthoud (which is higher than Loveland). Those are Denver prices, for basically living in the boondocks.
Walkscore 93/100 here in Cherry Creek.
I don’t know what the walkscore is at PrarieStar, but I wouldn’t be surprised if it was in the single digits. There is NOTHING remotely close to it. Downtown Berthoud, where all the stores are, is a hefty hike from there.
A walkscore is similar to a bond rating score… the rankings can be bought, IMHO.
Bawn and bred in Brevard County. There’s some good fishing there, but mosquitoes and hurricane risk are hell.
We’re at about 1.3MM units per year…+/- 80-85% of “normal”.
That’s the mantra the California builders sang just before the bust.
The song was much different before the bust.
Before the bust, CA builders peaked at approximately 200k units started per year. The country peaked at over 2MM.
In 2016, there were +/- 100k-110k units started in CA.
http://www.mercurynews.com/2017/03/06/opinion-kansen-chu-prevailing-wage-bill-would-increase-cost-of-housing/
A friend of mine sent this to me today…we are our own worst enemies when it comes to creating policies that lower the cost of housing.
http://www.capoliticalreview.com/capoliticalnewsandviews/ab-199-job-killer-bill-will-worsen-housing-affordability-crisis/
“Housing Crisis
The state is facing a crisis in housing affordability and supply. The two are inextricably linked, as the Legislative Analyst’s Office points out in a February 9, 2016 study, “Perspectives on Helping Low-Income Californians Afford Housing.”
It is estimated that California has a housing deficit of approximately 1 million units across all income levels.
The California Department of Housing and Community Development estimates that the state must build at least 180,000 units per year to keep pace with demand, not accounting for the backlog of 2 million units that has accrued over the last several decades.
The industry is producing approximately half of that and homeownership rates are at abysmal levels—the lowest level since the 1940s—currently ranking 49th nationally.”
Bad data right there. Garbage in/garbage out.
Alameda, CA Housing Prices Crater 11% YoY
https://www.zillow.com/alameda-ca/home-values/
‘a crisis in housing affordability and supply’
Which I can solve in one simple theoretical action: eliminate the higher loan cap for the state at government loan backers and set it at the rate for the rest of the country. Crater, no more crisis.
Jeebus, San Francisco is building more housing than it has in 70 years. Look at the downtown LA skyline. How long are you guys going on with this shortage nonsense?
California is a big state. Not everyone lives in downtown SF or downtown LA (nor wants to).
Overbuilding in those two markets does not mean there is overbuilding in the state as a whole.
It’s not just those two markets. It’s Manhattan, Miami Beach. These are the most expensive land markets in the US and they’re drowning in supply. There is no shortage of land anywhere in the world. Tokyo proved it 27 years ago.
But why does no one here ever take me up on this theoretical solution? Just consider it for a moment: if house prices would crash if loans were pulled back, what’s the point of overbuilding to accomplish the same thing? And I only suggested a mild pull back, to the caps elsewhere. Take the example further and you could wipe out this shortage nonsense in every city and town.
Yeah, we can go the route of Greensboro. Or we could just get the US government out of the shack lending biz.
This discussion was specifically about CA.
Do you know of overbuilding in any other market in California? I don’t.
If you want to go national fine. The same logic applies. There is overbuilding in markets where capital is attracted (primarily “gateway” markets), few other places.
BTW, I like the strategy of getting the government out of the lending market. I’ve suggested a politically feasible path to get there too, because creating a massive recession by simply stopping all backing by Fannie/Freddie/FHA overnight would be political suicide.
My simple idea is to mandate gradual increases to down payment requirements to get government backing…over time, GSE loans would simply no longer be competitive with the free market.
One thing to consider…your solution implies that GSE loans are driving up prices in ALL markets. I would agree that GSE loans are meaningful in terms of pricing in many markets.
However, that thesis doesn’t explain how:
1. Many non-supply constrained markets still have pricing well below GSE levels (I would submit ample supply has kept prices low despite loan availability); and
2. Many supply constrained markets have pricing well above GSE levels (I would submit that supply constraints forced prices higher, despite GSE loans being unavailable for higher priced homes).
specifically about CA
Only a greedy fool would buy property anywhere in CA. It’s way overpriced. It would either make you rich to buy a house (greedy) or break your back (fool). Poorest state in the Union, full of greedy fools.
My question is this;
Of the 4.4 million defaulted and excess housing units in CA, how many are empty? 60%? 85%?
‘political suicide’
As we’ve seen recently, conventional politics can change sometimes. Here’s what might happen: if I am right and this is a bubble, all bubbles collapse. The people in the US have been scarred by the housing bubble and what happened afterward. We have a president that said straight out there’s a bubble and blamed the central bank. There is real change coming to that bank in the next few years. If this thing blows, it’s gonna fall on the GSE’s and HUD. There won’t be any Barney Frank’s wagging his finger at wall street cuz they didn’t do this thing. IMO, the people aren’t going to put up with bailing GSE’s/HUD out unless some heads roll and we’ll likely have a long discussion about financing policy, house prices and how to proceed. To think after another crash the status quo will continue is political suicide.
Another solution is on the tax side. The problem is that the market is too susceptible to investment frenzy. Either eliminate tax deductions on homes or change the tax deduction into a fixed rate tax credit, say (20%) to help those in the 15% bracket or lower. Also, eliminate all tax incentives on expenses for renting business of single family homes or townhomes. With that, combined with high costs of selling homes, we can reduce this crazy proportion of investors in the market.
To think after another crash the status quo will continue is political suicide.
I recall speaking to a guy who was a former executive at Fannie. He commented on how occasionally a new representative would be elected with part of the platform being the shutdown/reform of the GSEs.
According to him, their M.O. in such cases was to open a lending office in the aforementioned politician’s district.
The next thing you know, the politician had a photo op cutting the ribbon to open the office, and had a few photos taken with a tearful new owner of a home in his/her district in front of the office.
Next thing you know, the politician’s opposition to the GSEs magically melted away. There is a lot of political capital that can be obtained by helping a single mom buy a home for her family.
And as we know quite well, politicians are very adept at deflecting blame as it suits them.
And then there is this:
http://www.cnbc.com/2017/03/20/private-label-mortgage-bonds-are-rising-from-the-grave.html
Politicians love potential new scapegoats arising.
usceptible to investment frenzy. Either eliminate tax deductions on homes or change the tax deduction into a fixed rate tax credit, say (20%) to help those in the 15% bracket or lower. Also, eliminate all tax incentives on expenses for renting business of single family homes or townhomes. With that, combined with high costs of selling homes, we can reduce this crazy proportion of investors in the market.
Eliminate the MID (it mainly helps the wealthy anyway).
Eliminate the $500k profit tax free on sale (I personally know people who owned more than one rental home with the intent to live in each one as a primary residence for the necessary time before selling as they planned to ultimately exit).
There is real change coming to that bank in the next few years.
I think Neel Kashkari might be making a play for Yellen’s job…he has direct experience with the aftermath of the last crash via TARP, and in being a vocal opponent to Yellen, he may be gaining a bit of political capital.
Could be interesting…especially since his view on making financial markets more stable includes large banks holding MUCH more capital than they do now, much to the dismay of the large banks (poor, poor, sad panda large banks).
“The problem is that the market is too susceptible to investment frenzy.”
Take away the government guarantees, and that private equity will disappear overnight.
Well not really… not at all.
The reality is household formation is at 50 year lows, housing demand at 20 year lows, record high housing inventory levels(even higher than 2007 levels) and rental rates and housing prices falling.
Speculative fools build empty houses with no buyer lined up. Degenerate gamblers buy empty houses with no tenant lined up. Both end up bankrupt.
‘This 12,000-square-foot home on Coopers Neck Lane in Southampton once served as the summer home for the nephew of industrialist Andrew Carnegie. The home went on the market back in August 2015, and was originally priced at $37.5 million. A year-and-a-half later, the house is still on the market, but now asking $29.5 million.’
I’m out shredding on my skateboard today. I stopped at an open house for some free food. They were trying to get me under contract before I walked out the door.
“It’s clear that the house was originally built with entertaining guests in mind.”
The kind of parties where congressmen and/or senators end up spending the night with an over-developed 14-yr/old and manipulated later as needed.
Denver County, CO Rental Rates Crater 5% YoY
https://www.zillow.com/denver-county-co/home-values/
Diane Olick says we should all hurry to buy. If this was not a family blog I think I would use her last name to form a reply:
http://www.msn.com/en-us/money/realestate/shopping-for-a-home-you-better-act-fast/ar-BByhV8U?li=BBnbfcN
I always take the advice of Diane Olick! **rolls eyes**
If you ever need to display an example of a shill use her!
FWIW, the Real Estate industry makes Diana Olick’s payday.
“Among cities where at least 250 homes were flipped last year, Memphis ranks No. 1 for the portion — 11.7 percent — of all metro area home sales that involved a flip.”
So Memphis is the latest Housing Bubble ground zero.
Do you remember back when the Bubble was only in places where everyone wanted to live?
It’s very telling that these locusts can mostly only find renters anymore. When the economy swings into full recession, those distant landlords are going to be hating life.
But they can always be walking in Memphis….
Renters in poor minority areas and they are getting ripped off in the process. They have no idea they overpaid. “It’s only $125k Marge, how can we go wrong?”
‘Do you remember back when the Bubble was only in places where everyone wanted to live?’
But they have a mobile cereal bar:
https://cerealbarfoodtruck.com/
How’s that grilled cheese truck business doing?
This is so ridiculous, I had to look it up:
http://www.bizjournals.com/memphis/news/2017/01/03/coming-soon-a-cereal-bar-on-wheels.html
The article says that a 26-ounce container will cost about $5, including toppings and milk (syrup upgrade $1). I’m guessing that’s a typo and should be maybe 2.6 ounces. The website is full of hard-hitting questions relevant to today such as:
Cereal first of milk first?
Is cereal soup?
Do oats count as a vegetable? Is milk considered a broth?
This has got to be a prank. I cant… even..
It will go IPO for several hundreds of millions….
It probably already exists in Dumver and is rated 5 stars on Yelp.
and is rated 5 stars on Yelp
Best Froot Loops on the front range.
Really, how hard is it to pour a bowl of cold cereal? Sure, making pancakes and bacon takes some work, not to mention the cleanup, but breakfast cereal?
I dated a girl who delivered for Uber Eats.
People with money in Denver are so lazy.
FWIW, having ready to eat food delivered to your door is hardly new. The only difference with Uber Eats is that you can now get it from just about any restaurant. Of course, it’ll cost you.
I use Door Dash here…on some Friday evenings, if I have a choice between:
1. Cooking dinner;
2. Ordering out and then going out and picking up the food; or
3. Pushing a few buttons on my phone, paying an extra $15, and cracking open a cold one or two while I wait for the food to arrive,
#3 is a pretty easy decision, depending on the week.
It’s especially easy if I’m my wife is out of town, and I’ve got the kids.
“Do you remember back when the Bubble was only in places where everyone wanted to live?”
When exactly was that?
When Stockton was booming?
Or Hemet?
Or Lancaster?
They were booming once, but long before we were born.
Princeville, Hawaii Housing Prices Crater 8% YoY
https://www.zillow.com/princeville-hi/home-values/
‘One flipper I talked to in Norwalk who has been doing this for 25 years said he has completely stopped buying and even compared the market to what he was seeing in 2008.’
How long will it take for the facade of California’s latest faux permanently-high-plateau to fade away into the next ruinous price collapse?
Oh no does that mean no more Flip or Flop on HGTV? Oh wait Christiana and Tarek broke up. Update: as of this writing they are back together and filming their new season. These two clowns got back together when they realized there is no other work for them other than the Flip or Flop gig
They aren’t back together romantically, they are just back together filming. It will be interesting to see how they start off the episodes. They usually show them in their McMansion kitchen looking at comps over breakfast. Can’t do that now. I guess they’ll start them off driving around in the SUV to avoid the showing the (former?) family home.
she looks like a construction worker
If you ever want a lesson on “how good neighborhoods go bad” and “nothing is immune to this rule…”
Go visit Graceland. It is practically a war zone for miles in any direction with Graceland as a small oasis.
I am sure Elvis picked a really nice neighborhood to build his dream house back in the day…
—-
A report from the Commercial Appeal in Tennessee. “Among cities where at least 250 homes were flipped last year, Memphis ranks No. 1 for the portion — 11.7 percent — of all metro area home sales that involved a flip.
Memphis? Yikes I was just in Nashville yes it may be the up and coming city of the region but because of the snaking Cumberland river and the mess of highway interchanges the city is a navigational nightmare. And conditions of the roads themselves are bordering on third world .
‘Summerfield has scores of smaller, older houses in subdivisions built before the town incorporated, but new construction has kept the median home price high — $336,000 in 2014, according to officials.’
‘Ultimately what happens over time, if people want to make a move, they lose money’
The price of the new construction isn’t causing people to lose money when they sell. There could be excess inventory - OOPS!
Strange so many claim they know SFR input costs but none of them identify what the cost is.
Strange indeed.
lol, a new CNBC reality show about flippers in trouble:
http://www.cnbc.com/the-deed/
we need to flush some speculators!
Two minute video. Nice, simple analysis of the high end Greenwich, CT market and the stagnation.
Is Greenwich, Connecticut Ground Zero of U.S. Housing Risk?
https://www.youtube.com/watch?time_continue=137&v=xYlb8fKrnog
I will let you know about the low end in a couple of months palmetto.
Thanks, phony, it looks like the “low end” is doing well and will for a bit longer.
“Low End” = $2 million and below….
Dear Gawd.
That’s exactly what I’ve been talking about, 2ban, the ridiculous inflation at the “low end” compared to the languishing “high end”. Some of the houses going for $1-2 million would be about $200,000 to $500,000 in any other market.
But, Greenwich! Greenwich!
At least the weather is better in San Jose and Palo Alto.
Old Greenwich and Riverside among other places in Greenwich are really pretty nice.
Too expensive sure, but what isn’t?
“At least the weather is better in San Jose and Palo Alto.”
Better than most of the country, IMHO.
We had a black-ice warning, yesterday, and there is still ice on our local hills. Moderate intermittent rain is forecast through next weekend too. Columbia Basin.
‘Ridiculous inflation at the “low end” compared to the languishing “high end”.’
Same thing happened everywhere in Bubble 1.0. As they exhaust each bracket of credit-worthiness and slide ever lower down the credit-score scale to keep the ponzi going, the price range the new borrowers are able to afford is lower and lower. Luxury languishes while there are bidding wars at the bottom of the barrel. Even if bottom of the barrel means $2 mil! Lol.
“bidding wars at the bottom of the barrel. Even if bottom of the barrel means $2 mil! Lol.”
Lol is right. It’s panic bidding, or panic buying. Second verse, same as the first, buy now or be priced out forever.
People are going to be pissed later on when they realized they overpaid for the “low end”. Suckers.
Delray Beach, FL Housing Prices Crater 7% YoY
https://www.zillow.com/delray-beach-fl/home-values/
20 or so years ago we did some “affordable” houses in a less desirable hood in Delray or Boynton Beach.
One afternoon I was delivering a couple of bundles of studs to the framers when I was stopped in a school zone by a crossing guard for the kids to cross the road after school. While I was stopped a young African American woman opens the passenger door of my F-150 and jumps in. Admittedly pretty damn startled I asked her WTF she was doing.
What came next was almost as shocking, she said…
You don’t want a date?
I said…
No I don’t want a fuqing date! Now please get out of my truck!
She said…
But you stopped.
I said…
I stopped for the GD school crossing!
She made me drive her 3 blocks up before she would get out of my truck.
‘Veteran Greensboro real estate executive Betty Smith said there’s simply an oversupply of big lots. Statistics show hundreds of large lots and houses are going unsold in northwestern Guilford County. In Summerfield, Stokesdale and Oak Ridge, up to 1,900 developed and undeveloped lots were available in January, according to research provided by Smith. That research shows the average new home price in the Summerfield/Oak Ridge area was $528,973 and $392,336 in the Stokesdale area. ‘We have a large number of lots already on the ground and there’s not a lot of buyers’
What’s interesting about this article is the target audience. It’s purely local. This paper doesn’t expect anyone outside of town to read it. So for internal consumption, it’s a call that they have a bubble in a way. A problem that the town needs to address by building more.
Do you suppose Quicken has pulled back on lending because of the oversupply? In a rational world this would happen. Over and over, the focus is on supply and not demand. Demand that is fed by outside, unmovable federally backed lending. So we build and develop at ever higher prices until we are stuck.
That research shows the average new home price in the Summerfield/Oak Ridge area was $528,973 and $392,336 in the Stokesdale area.
In hicksville Greensboro? I don’t even want to hear what asking prices are in Chapel Hill.
From what I have heard, Fort Collins has been restricting subdividing, which has created an artificial lot shortage, which is pathetic as there is plenty of empty land around the Fort. Perhaps this is why Windsor has taken off.
‘In hicksville Greensboro? I don’t even want to hear what asking prices are in Chapel Hill.’
My exact same reaction. I don’t know what makes that part of NC so attractive. Are there some kind of high falootin’ golf courses near that?
“Summerfield would be the biggest loser,” McClellan said, “because it would lose its heart.”
It would sell its soul for profit, like so many other places.
Southlake, TX Housing Prices Crater 6% YoY
https://www.zillow.com/southlake-tx/home-values/
Coworker just bought a house here in NoVA. So that’s another renter off the market! The house is pretty far out in the sticks, $580Kish. Single income household.
I’m going to continue looking for a higher paying job, I know I can make more in this market.
Me, too.
Ethan
Were you born in Northern VA?
Nope, lived here less than 3 years. Originally from the Norfolk - Virginia Beach MSA.
“The house is pretty far out in the sticks, $580Kish. Single income household.”
$580K. No so long ago that would buy a real mansion with acreage. Now it just buys a Tyvek clad shack on a zero lined lot. And the owner would be some big cheese and not some worker bee borrowing 5 years of pay to buy it
It’s not small, 3K sqft not including basement I believe.
In a neighborhood, not a huge amount of land. House is 2 years old.
Did they see this?
Falls Church County, VA Housing Prices Crater 10% YoY
https://www.zillow.com/falls-church-city-county-va/home-values/
Try epa,state, hud etc
N va is going to take a hit
‘When crude oil prices crashed into the $20 range early last year, it had most oil-producing nations quaking in their boots. That’s because few countries can make much — if any — money at that price point. I say most because there are a handful of producers that were still able to make a tidy profit at that price point. Leading the way was Saudi Arabia. According to data from energy industry consultant Rystad Energy, on average it cost Saudi Arabia less than $9 to produce a barrel of oil last year. That’s the cheapest in the world, though fellow OPEC countries Iran and Iraq can produce for around $10 per barrel as well.’
I guess falling oil prices won’t be accelerating those economies, though I sure enjoy paying less to fill up the tank.
The USA exports oil and spends trillions on wars for oil in the middle east. Explain that.
It’s always been a lie, just like saying shacks built for $25k are “worth” a million. Now we find we’re producing all the oil we need, like we always could, and hmmm, still up to our necks in the ME. There are powerful interests that need war and the threat of war to exist. It was never about oil. And there’s Israel.
Oil is extremely profitable…. Even at sub $20/barrel price.
Ironically, it is the lower price than will boost their demand and increase their profits in addition to accelerating the economy and creating jobs like only falling prices to dramatically lower and more affordable levels can do.
Keller, TX Housing Prices Plummet 10% YoY On Skyrocketing Housing Inventory
https://www.zillow.com/keller-tx/home-values/
Yeah I just decided to save up enough money to buy a home for all cash OUT of Kommiefornia when I can retire.
Are you headed to AZ? Bring sunscreen and a hot and get a white car.
“This Is Going To Blow Sky High” - Observations On Canada’s Housing Market
Zerohedge - 20 March 2017
There are, apparently, two very important things to know when dealing with real estate. First, you have to face your fear; this fear is to be ignored and then you should ‘just do it’ and ‘buy now’. The next step is find what you can afford and then buy it. Ignore all ‘non-doers’, don’t overanalyze or focus on the numbers, just fucking buy. To allay fears the speakers are actually quite clever as they shift between a long to short term focus when it suits. For example, now is a great time to buy because short-term the market is on fire. If, however, markets cool then you just hold because it always goes up long-term - and you are a savvy long-term buyer, aren’t you? By showing no scenario where you can lose I can see how this pitch works on the susceptible.
The second important factor in real estate is financing. Not everyone has money, so what can they do? The answers were shocking. Be ‘creative’ was the first response. Pool your money, borrow from friends and family, own just 5% of a house, get the money however you can and just do it - remember, it only goes up. Other financing suggestions were get cozy with a lender and they will ‘bend the rules’ for you! The fact that the biggest condo developer in Canada (Brad Lamb) said lenders will bend (but not break, apparently) rules to get you financing in front of 15k people with most people smiling and nodding was shocking.
Nowhere in any of this was there ever a mention of risk, the dangers of leverage, how terrible negative equity can be, how that can trap you, etc
48$ oil means tough sledding for Canada,especially w the lib fruitloop treudau in charge
Buy MF now, or be priced out forever. After all, there is a land shortage. Or not, check out Otay Mesa. Land as far as the eye can see.
https://www.bisnow.com/san-diego/news/multifamily/strong-economic-fundamentals-and-rent-growth-fueling-multifamily-sales-in-san-diego-61620
Multifamily Investors Drawn To San Diego’s Strong Fundamentals
“Nearly half (49.3%) of San Diego’s 3.2 million residents live in rental housing according to a new JLL multifamily report, which noted the average rent is $1,627/month and apartment occupancy is 97.6%. San Diego is one of the hottest apartment sales markets in the nation, with $2.6B in transactions last year, due to its strong multifamily fundamentals.”
“…SD’s natural barriers—the Pacific Ocean, Camp Pendleton, mountains and the Mexico border—limit new development, driving up existing property values. “There are fewer core deals, and return margins on core deals are very thin, so we’re seeing a lot of activity on the value-add side, as well as in development space.” Most new development is infill or in outlying areas of the county, and “opportunities are hard to come by,””
B-b-b-ut its. . . a . . . desert! What, you cant drink the ocean?
Carry on Clownifornians, carry on. That fantasy you’re sold will come to fruition. Some day.
Yes, you can drink the ocean. Desalinization plant, powered by wind and solar, or wave action.
In China, they built a train that goes straight through an apartment building.
http://www.telegraph.co.uk/news/2017/03/20/incredible-train-disappears-block-flats-chinas-mountain-city/