An Acknowledgment That Time Is Of The Essence
A report from KY 3 in Missouri. “If you’re a seller, you can feel pretty good about the market right now. Tyler and Samantha Richardson own Richardson Real Estate, but they double-up as house flippers like the ones so popular on TV these days, gutting and renovating homes. As to the reason more people are looking to buy homes now? ‘Interest rates are hanging around 4.5%,’ Tyler said. ‘But the feds have announced they’re going to make a couple more hikes this year so they’re gonna keep pushing. Next year you could see ‘em at 6%. Not to be a cheesy sales guy but now’s the time to buy if you want to capitalize and have more buying power.’”
“So if you’re on the look for a new home, their advise is to be aggressive. If you snooze, you lose. ‘One client wrote a personal letter about how their family moved here and tried to get that sentimental edge,’ Tyler recalled. ‘We’ve had clients just knock on the door and ask if they were interested in selling their home. It takes a foot-on-the-pavement approach. You have to go find that right home.’”
The Kitsap Sun in Washington. “Michael Bowes and Bea Schuster, the brother-sister real estate agent team, are part of a growing group of real estate agents, mortgage lenders and house flippers that, in an airtight market, find properties off-the-radar. In this, the ultimate seller’s market, even the most distressed of properties raise an agent’s eyebrow. It’s a ‘pressure cooker’ housing market, said Christin Webb, a broker with John L. Scott.”
“A $160,000 home in West Bremerton, for example, required 15 truckloads to remove all the trash from the squatters that inhabited it. ‘We could tell this home had good bones,’ said Schuster, who took a chance on it. The home’s now filled with all new counter-tops, flooring, fixtures and appliances. It could be easily sectioned off into a duplex, making it more attractive given the demand for area housing. And it’s now back on the market at $329,950.”
“They work quickly. The market could change. There’s an acknowledgment that time is of the essence. ‘The market’s very hot,’ said Mark Goodwin, a contractor that often works on homes whose sales are handled by Schuster and Bowes. ‘Quick flips are very important. You make checklists and punch them out. You don’t want to be caught holding the ball.’”
From Bloomberg on Florida. “A Jean Nouvel-designed condo project in Miami Beach, Florida, just got the area’s biggest residential construction loan in almost a year, putting the luxury tower on a path to completion in a market that’s saturated with others. New York developer Michael Stern closed last week on $137 million in financing from Madison Realty Capital to build Monad Terrace, Stern said in an interview. It was the largest loan for housing construction in Miami-Dade County since June, according to Real Capital Analytics Inc.”
“Cranes are crowding the skyline in Miami Beach as builders add more condos in a city that’s already working through a glut of them. There are 2,963 condos currently listed for sale in Miami Beach, and they have spent an average of 199 days on the market, according to CraneSpotters.com. In the South Beach enclave, where Stern is building Monad Terrace, condo sales fell 11 percent in the first quarter from a year earlier to 242, according to appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate. Buyers got discounts of 10.4 percent on average, the firms said.
“‘It’s a good bellwether for the market,’ Stern, who’s also building a condo tower on Manhattan’s Billionaires’ Row, said of the financing. ‘We expect it to have a huge impact on sales.’”
From WWD on New York. “Carmen Marc Valvo is struggling to sell his Hamptons hideaway. The high-end evening wear designer has had to lower the price of his Bridgehampton house by more than $1 million to $6.95 million after failing to find a buyer since it hit the market last June. Valvo appears to be the latest victim of the slowdown in the Hamptons’ luxe housing market. The glitzy summer hot spot’s high-end property market isn’t as strong as it once was on the back of political and economic uncertainty and Valvo is one of the many homeowners who are having to become more realistic on pricing in order to secure a sale.”
The Financial Times on Connecticut. “Local lawmakers need to find new sources of income to alleviate the state’s budget crisis created by years of overspending and an over reliance on tax dollars from the finance sector. Connecticut has raised income tax three times in the past decade, but now, struggling to meet its pension and healthcare obligations to state workers and facing a projected deficit of $240m for this financial year alone, it is under pressure to find a solution.”
“Marquee companies, most recently General Electric, have shifted their headquarters away from the state, denting tax revenue and hitting property prices. Barry Sternlicht, CEO of Starwood Capital, left the state for Florida in 2016 while declaring Greenwich the worst housing market in the US. ‘You can’t give away a house in Greenwich,’ he said at the time.”
“According to data from Miller Samuel, a real estate appraisal firm, and Douglas Elliman, a real estate brokerage, sales of single family homes in the town in the first quarter of 2018 were down 22.2 per cent from the previous year. One of the town’s zip codes, 06831, ranked the 65th-wealthiest district in the country in 2010, had slipped 300 places by last year with the median sales price dropping from $1.1m to $895,000 over the same period, according to PropertyShark. ‘I would short Greenwich real estate if I could,’ says one fund manager who lives in the town and asked not to be named.”
“Thomas Peterffy, the billionaire founder of Interactive Brokers, also left for Florida. His 80-acre estate in Greenwich, the largest in the town, sat on the market for more than two years. With an initial price tag of $65m, the home eventually sold for $21m.”
‘got the area’s biggest residential construction loan in almost a year, putting the luxury tower on a path to completion in a market that’s saturated with others’
Fly away Yellen bucks, into the dark night.
‘Even with a 30% y-o-y decrease, TriBeCa pulls through as NYC’s priciest neighborhood’
There’s a table at the bottom. Oh dear, Brooklyn…
A reader sent this in:
‘WeWork, the office-leasing startup, is looking to raise more cash through its first bond sale, despite already raising billions in venture funding. WeWork is planning to sell $500 million (£358 million) in high-yield notes, per reports from the Financial Times and Bloomberg this week.’
‘And bond documents reviewed by the two publications reveal some startling numbers — here’s a summary: WeWork owes $18 billion in rent. The company has more than 14 million square feet of office space, with suitably massive lease obligations, though WeWork has the option of closing locations if it can’t pay those bills.’
‘WeWork is burning cash. Revenue from memberships more than doubled last year, to $822 million, but expenses also more than doubled, to $1.81 billion. Net losses came to $934 million, according to Bloomberg.’
‘It isn’t really about tech startups. About 20% of WeWork’s occupants are in financial, legal, and business services, while 15% work in software. ‘
WeWork has free beer.
That makes my wee wee work.
You don’t buy beer, you just rent it.
Tech bubble 2.0, indeed!
Wait? Whut? Another rent-seeking middleman??
(Posting from a remote location literally on the Gulf of Mexico)
‘Airbus has secured an additional order for one H225 with the Japan Coastguard (JCG), extending on its existing fleet of eight Super Pumas. The Asian Sky Group first quarter suggests that the H225 is moving towards a buyers’ market. The average price of the H224 has fallen since the fourth quarter of 2017 from $25.8 million to $19 million. So far in 2018, one H225 has been sold in Asia.’
I was going to interview with Airbus’s helicopter group, until I learned how paltry the pay was. The job was in Ft. Collins and they had no trouble filling it despite the low pay.
You’re better off staying with Spacely Sprockets.
Ha! Jetson!!!!
Why do you need a helicopter when you have a flying car?
Guy I worked with just got an offer with Nvidia doubling his pay and lets him work from home in flyover country. Maaaaggggaaa!
That’s what I’m talking about. The only problem is when the economy noses over and he gets laid off in flyover country. Or China in my case.
Kind of where I am right now. I WFH but get paid Silly Valley pay (Maybw a bit on the low side) which seems to be 30-40K more than local wages.
All work situations are temporary; only the duration remains TBD. Once you realize that, you get flexible, network, fly low (dont spend like crazy) and appreciate what you got while you got it.
I took a gig with a 1.5 year duration working in my version of paradise and am riding the wave - in more ways than one - for 12 years now. I’d like to see more people do it - screw the high prices, traffic and fascists lording over everyone.
“All work situations are temporary; only the duration remains TBD. Once you realize that, you get flexible, network, fly low (dont spend like crazy) and appreciate what you got while you got it.
“I took a gig with a 1.5 year duration working in my version of paradise and am riding the wave - in more ways than one - for 12 years now. I’d like to see more people do it - screw the high prices, traffic and fascists lording over everyone.”
FANTASTIC!
It surprises me that these companies don’t force a pay cut for the full-time W@H in flyover country. The gov could do it very easily; simply base the locality pay on the W@H address. But I don’t think they do.
Hey Donk
It surprises me that these companies don’t force a pay cut for the full-time W@H in flyover country. The gov could do it very easily; simply base the locality pay on the W@H address. But I don’t think they do.
They use a different method. Let you ride the gravy train until the moment they can replace you with a cheaper option and then abandon you in flyover country. In most cases they don’t pay the big bucks for too long. In the long term cases it means they really need YOU and they’d have to pay regardless.
Hood River, OR Housing Prices Crater 16% YOY As Speculators Default At Record Rates
https://www.movoto.com/hood-river-or/market-trends/
Can someone please inform the Nat. Realtor’s Association what’s going on? Here is what they are peddling on CNN.com today:
“With a flourishing labor market, steady economic growth and wages finally starting to rise, home prices aren’t expected to slow down anytime soon.”
“There is no let-up to rising home prices,” said Lawrence Yun, chief economist at the National Associate of Realtors, in a statement Tuesday morning. “Even as the tightening job market is starting to boost incomes, those looking to buy are facing a double whammy of fast rising home prices and higher mortgage rates.”
As a wise man once said, “Realtors are liars.”
He’s right.
Buy a house today and your lifetime of losses will be incalculable.
You can say that again.
Actually, the loses are very easy to calculate, but few can be bothered. All they can see is “property ladder” and endless appreciation.
Even if the appreciation never ended, since few pay it off (and continue to borrow more to pay for cars and other stuff) they reach retirement and still owe a huge wad on the shack with a big monthly nut. Selling and “downsizing” won’t work unless they move to oil city, and few want to do that. Most will find that they will have to continue working, assuming they can still find work, to supplement their Social Security and meager 401K savings.
It’s worth doing the math, but it won’t help if you are living in the mania.
Four months of retirement and I am doing fine. Spending less than social security and haven’t touched my savings. Not paying interest is essential.
Not paying interest is essential.
Or any other monthly nuts that gobble up income.
More like they reach retirement AGE but still don’t retire. They hocked the house to send the kids to college, and then want to stay in their expensive area “to be near the grandchildren.”
… those looking to buy are facing a double whammy of fast rising home prices and higher mortgage rates.”
To a totally dumbed-down population of ignorant pukes these two things appear to be compatible.
“Not to be a cheesy sales guy but now’s the time to buy if you want to capitalize and have more buying power.”
Except you are a cheesy sales guy.
Now’s the time to buy if you want to see your (yet to be earned) money flushed down the toilet.
Or sent to me.
😁
Keller, TX Housing Prices Crater 6% YOY As Dallas Housing Correction Advances
https://www.movoto.com/keller-tx/market-trends/
‘They work quickly. The market could change. There’s an acknowledgment that time is of the essence. ‘The market’s very hot,’ said Mark Goodwin, a contractor that often works on homes whose sales are handled by Schuster and Bowes. ‘Quick flips are very important. You make checklists and punch them out. You don’t want to be caught holding the ball.’
Wait a minute Mark. Are you suggesting this is temporary and the people buying these overpriced flips might get burned?
It’s almost like they’ve been caught holding the ball before.
From the first link:
‘Tyler and Samantha Richardson own Richardson Real Estate, but they double-up as house flippers like the ones so popular on TV these days, gutting and renovating homes…”We seem crazy,” Samantha says with a laugh.’
You can see the reality show thing has people acting like reality show actors.
‘But to flippers? “I would rather look at something like this,” she said while surveying a completely gutted home. “And be able to put my touches on it. The worst house we ever renovated was horrible. And we (fixed it up and) sold it to my mother.”
Sticking it to good ol Mom.
DebtDonkeys and HousingHens.
Who are these people!
They are God’s gifts.
This another reminder to folks why you should not flip houses:
Realtors are the Level One investor. They get the best of the best houses to flip.
If they pass, the Realtors turn to Level Two investors. Surgeons, hedge fund manager types who have a bunch of money to invest and don’t care much about the risk. Realtors buy/sell and get kickbacks from their contractor friends.
If they pass, it’s the poor Level Three schmucks who watch the flipper shows thinking there I see money to be had. No Real Estate analyst would pass up a chance to get some easy flip money.
So before you see an awesome ‘flip potential’ on the market, remember you are getting the worst cut of the meat.
I had a job offer in CT not long ago. Decided to turn it down as the taxes were too much. High income tax, high sales tax and $20k property tax on a $500k home.
And still it’s not enough for the progs running the state.
It will never be enough.
yup Financial aid for ‘dreamers’ becomes a reality in Connecticut
https://ctmirror.org/2018/04/25/financial-aid-dreamers-becomes-reality-connecticut/
The State’s residents will have to deal with the nightmare of higher taxes.
More More More Government confiscations
NYC’s War On E-Bikes Takes Toll On Immigrant Delivery Workers
http://gothamist.com/2018/04/26/e-bike_immigants_nypd_nyc.php#photo-1
“Over roughly ten hours on a Saturday in January, Zhu biked nearly 60 miles to make 34 deliveries; he said he earned a little more than $80.
“Being a delivery worker is the lowest rung of work in society,” Zhu said.”
There, but for the grace of God, go I…
On the bright side, he must be very slim and fit.
CT is ILLANNOY’s step child.
A while ago I received a job offer (engineer) in SF.
About a 20% raise.
I told them you need to add another 40% to the offer just to make the offer comparable to my OLD salary based on COST OF LIVING in SF.
I get calls from recruiters all the time about jobs in SF/SJ. I don’t even bother going into details, I just say thanks for calling (or emailing), but given the taxes and cost of living, I’m not going to waste either of our time since I know you won’t pay me what it would take for me to move there.
My current employer is solving that issue by opening an office in Atlanta and backfilling attrition from Silly Valley with people in Atlanta.
The problem with that is that sometimes you can’t find the people you need in other places. People who understand OS internals and who can work on say kernel or hypervisor virtualization code are different from guys who write Javascript front ends or SQL code.
Amen to that, SD. And they are getting harder and harder to find. The people who only got started in the last 10 years or so ago tend to know nothing about what goes on “under the hood” (and that’s the ones who supposedly specialize in C++)
(and that’s the ones who supposedly specialize in C++)
Yeah..the recent ‘front-end devs’ know far less. I was really surprised to have a coworker not be familiar with the issues related to floating-point values and why “1.01″ isn’t really “1.01″.
I suppose this is an indication I fall in the old curmudgeon “kids these days” camp?
(to be fair, I’m a ‘front-end dev’ these days but that’s a somewhat recent change)
It’s good to see eng’s getting job offers out there. There are enough overpaid keyboard tappers.
A while ago I received a job offer (engineer) in SF.
About a 20% raise.
I don’t think that even a 100% raise would cover the increased cost of living and taxes.
So I guess Engineer is a job that Americans won’t do, eh? Time to ramp up the H1-B lobby machine.
“A while ago I received a job offer (engineer) in SF.”
There are a number of Civil Engineering jobs in the San Jose area that will fetch $120k/yr, but you won’t get far on that unless your wife is a Pharmacist. It’s just too expensive to raise a family in the south bay right now. Employee turn-over is no longer a worker thing… it’s now affecting the professions.
I agree, I used to live in East Bay till Jan this year. we decided to move to NJ for another job. (I can’t say the housing price is much cheaper for some neighborhoods here, but you don’t see 25 biddings on one house)
Property taxes here in NJ is insane though, but the school system is better comparing to most parts in SF.
But srsly, when is the bubble going to burst? the rate is climbing up!
Arlington(Rosslyn), VA Housing Prices Crater 27% YOY As Flood Of Defaulted Housing Slams Market
https://www.zillow.com/north-rosslyn-arlington-va/home-values/
*Select price from dropdown menu on first chart
i have a ticker of rising house prices on my computer.
Got enough equity yet for some box wine?
The Donald took some time out from his busy day with the President of France yesterday to retweet a Kanye West tweet.
Best. Timeline. Ever.
And Shillary started following him on twitter - odd that she would now considering that the media spends 24/7 claiming that hes a mentally troubled alt-right nazi along with the Dilbert guy and the rest of the deplorables.
Truly amazing times we live in.
Truly amazing times we live in.
Yup. Got a relative who actually once upon a time worked with Scott Adams. That relative hates Trump but likes Adams’ cartoon work, said it was a valuable description of a modern engineer’s work life.
An exec in a company I worked for sends out a newsletter type thing weekly. In it he talks about, among other things, books he’s reading. A while back he mentioned Peter Thiel’s book and said something like while I think Thiel is an awful human for supporting Trump, his ideas are still terrific. Fair enough, the guy is mature enough to separate his feelings about the man vs the man’s ideas. But since this company is a hard core leftist echo chamber, he was pilloried by his “progressive and inclusive” co-workers for daring to do that. I love diverse liberals who hate anyone who doesn’t think exactly like them.
It’s sooooo easy to accidentally fall out of line and find yourself being purged. I’m guessing that since he has now failed the purity test that you will soon be hearing about his resignation, and that he’s leaving the firm to “spend more time with his family”.
He might as well have worn a MAGA hat to work. And a T-shirt with a bulls-eye, front & back.
Could the exec request some diversity training?
Could the exec request some diversity training?
Oh, he’ll get “trained”, fer sure.
when home prices go up it stimulates the consumer economy. It sure beats working for a living.
When home prices go up it stimulates my monthly income. And you are correct, it does beat working for a living.
High debt loads depress consumer spending. Thus, the initial result of a housing bubble is to promote consumer spending as the new loan amounts enter the economy, however as they are paid back Mr. Banker drains the house buyers like a vampire. Thus, the need to have open borders to create new victims to be debt donkeys. Effectively it works like a Ponzi scheme. It also is similar to seven year car loans, at first they promoted vehicle sales, now they are starting to depress them since people have cars with no equity and cannot get a new loan since many are too far underwater to afford the payments even when the dealer is willing to finance the sale.
“It also is similar to seven year car loans, at first they promoted vehicle sales, now they are starting to depress them since people have cars with no equity and cannot get a new loan since many are too far underwater to afford the payments even when the dealer is willing to finance the sale.”
To amortize is “to put to death”. If you amortize a loan you put it to death by paying it off.
When you drive a car you are putting its value to death. If you put your car’s value to death at a rate that is faster than the rate the value of the loan that financed the car is put to death then you are an idiot and also you are one of my preferred customers and I truly hope you spawn many, many children.
Seems like every car commercial during Jeopardy has varying amounts down, but the payments are $200/month. The balloon payment is flashed briefly in the fine print.
they flash some fine print bs on the bottom of the screen u cant even read. Then they tell u how much your gonna save by downing an overpriced car. They never mention the price until your in the boiler room with earl.
These things have balloon payments at the end?!
What percentage of people getting these loans actually understand that?
The same percentage of people who fully understand the definition of “adjustable”.
People refinance negative equity into a new loan. It’s a perpetual loan rolled into a new vehicle over and over. At some point it has to end, but that point isn’t here yet.
“High debt loads depress consumer spending.”
As long as “homeowners” can tap into their equity the good times will roll. I saw parking lots chock full of new expensive cars in north San Diego county and the restaurants were packed with people waiting in line to get in. Of course, once the easy money spigot gets shut off it will be a different story.
“With an initial price tag of $65m, the home eventually sold for $21m.”
Now THAT is a haircut!
Now THAT is a haircut!
alternatively: “now _that_ was a wishing price!!”
Kensington, MD Housing Prices Crater 7% YOY As Federal Budget Cuts Deepen DC/NoVA Housing Correction
https://www.movoto.com/kensington-md/market-trends/
put down your natty lite and try one of the pinapple sculpins from ballast point. you will never drink that p@ss water again.
Hello DumpsterFire
Anchorage, AK Housing Prices Crater 6% YOY
https://www.movoto.com/anchorage-ak/market-trends/
This……
Robert said. ‘They have 24 hours before the seller gets two to three offers. It’s a stampede getting into a house. I’ve never seen this.’”
Plus this…..
It’s a ‘pressure cooker’ housing market, said Christin Webb, a broker with John L. Scott.”
Equals ?????? Fill in the blank HBBer’s
“Cooked goose” comes to mind.
Equals a good time to be a seller.
I could not help myself - had to post this one……
http://www.businessinsider.com/woman-lost-home-after-spending-13000-on-weddings-2018-4
It appears that the population of Great Britain is just as dumbed-down as the totally dumbed-down population of The Colonies.
“I Was Rich And Gorgeous, Now I’m Just Broke And Fat”
https://www.youtube.com/watch?v=jqDLqWNA9Eg
Reminds me of the Bankrupt by Beanies family…
https://youtu.be/PgDsyj5eLmo
A nation of dummies.
My guess is that she keeps going to weddings in the hope of meeting a guy for herself.
America’s favorite dad might do a dime each with his homies.
my house went up a 100.00 today.
According to zillow, my house went up 4.6% in the past 30 days.
nice i like to hear good things r happening to risk takers.
According to zillow, my house appreciated 10K in just 30 days, which is pure and unadulterated horsesh!t,
Housing my good friends….. Housing.
Albany, OR Housing Prices Crater 16% YOY
https://www.movoto.com/albany-or/market-trends/
Hard to tell whats happening in Albany. Lots of traffic and huge trucks racing around. Been looking for a used pickup and the prices are laughable what people want. ($4000 over blue book) Going to wave off till things slow down and people are forced to sell. I live in the Corvallis area and it just seems calmer and safer here. Prices are still holding up here, but you get the gut feeling that this housing run has peaked.
Poway, CA Housing Prices Crater 7% YOY As San Diego County Enters Recession
https://www.zillow.com/poway-ca/home-values/
*Select price from dropdown menu on first chart
u have talked about a recession for 10 years. The trend is your friend.
And others here have talked about imminent stock market crashes for 4-6 years.
And others predicted $20/barrel oil prices, and still others predicted $100/barrel oil prices.
The trend is your friend…until it isn’t.
And so it goes.
And others predicted $20/barrel oil prices
If I’m not mistaken, it was HA who was predicting that.
Because Arab oil costs $6 to produce. And I’m Heidi Klum.
Production cost for US oil is $6/bbl. Saud oil is $4/bbl as of 2016.
You’re Donk Craterton, not Heidi Klum.
“And I’m Heidi Klum.”
Recently saw a photo of her… aging nicely.
“And I’m Heidi Klum.”
Appearances are so deceiving. And temporary. But I still like them.
Housing my friends.
Dewey Beach, DE Housing Prices Crater 11% YOY
https://www.movoto.com/dewey-beach-de/market-trends/
I was forced to cover my shorts in amzn today.
Seeing is believing!
Bahahahaha … you pukes who believe that should watch this video …
https://youtu.be/ohmajJTcpNk
Loanowners are loosers.
You are debt slaves, you don’t “own” anything…
renting from the bankers? Seems they do let u paint the walls.
Hey Red Sox fans you are next to be indoctrinated
BOSTON (1010 WINS/AP) — Boston has approved a plan to change the name of Yawkey Way, the street outside Fenway Park named in honor of a former Red Sox owner some have said was racist.
https://1010wins.radio.com/articles/name-yawkey-way-outside-fenway-park-changed-over-racist-past
Call it “Racis Way” instead.
Beverly, MA Housing Prices Crater 17% YOY As Boston Housing Correction Expands
https://www.movoto.com/beverly-ma/market-trends/
San Fran Junkie heaven
Drug Users Take Over Corridors Of San Francisco Civic Center BART Station
http://sanfrancisco.cbslocal.com/2018/04/25/drug-users-san-francisco-civic-center-bart/
The thing about stuff like this is that it happens gradually and people simply get used to it and accept it as normal. It makes me glad to live in my sleepy little burg (though I know it won’t last)
looks like amzn could be at 2000 soon.
” Only in America can a company’s operating numbers go down the drain and yet still be credited with a headline GAAP-manipulated net income “beat.” I find much humor in this absurdity. Others might find it, upon close examination, to be pathetic or even tragic.
After all, it doesn’t take much investigation to see that underneath this mountainous eruption of auto debt there is a nasty cycle of defaults brewing, and that if any company happily moved the metal to any borrower who could fog a rearview mirror, it was General Motors. Again.”
http://davidstockmanscontracorner.com/cycling-blindly-in-chartland-but-look-out-below/
Go long fb amzn netflix and alpahbet! There is no downsdie thx to central bank put.
Holmes Beach, FL Housing Prices Crater 5% YOY As Boomers Flood Market With Retirement Properties
https://www.movoto.com/holmes-beach-fl/market-trends/