June 5, 2018

The Deceit, Fraud And Greed Is Breathtaking

A report from the San Mateo Journal in California. “Forty-six percent of Bay Area residents are planning to leave the region in the next few years, according to a survey from the Bay Area Council. The survey results show a 6 percent increase from last year in residents who want to relocate. In 2016, 34 percent of survey respondents said they were planning on leaving. Residents cite housing costs, overall high costs of living and traffic as reasons to move out of the area. ‘These results are tough to report, but we can’t let this growing pessimism become a self-fulfilling prophecy,’ said council president Jim Wunderman.”

From ABC 7 News. “It’s hard to say when residents hit a tipping point, but there have been plenty of reasons the past few years why more Bay Area residents say they want to move out of the area. Last year, we saw one example when an average four-bedroom home in Sunnyvale sold for more than $800,000 over the asking price. The cost of housing continues to rise. Home prices in Santa Clara County jumped 23 percent from last year to a medium price of $1.13 million dollars, according to CoreLogic.”

“A Palo Alto Weekly survey earlier this year found that residents looked at families earning nearly $400,000 a year as simply middle class, still struggling to pay the bills and make ends meet.”

From Palo Alto Online. “One west Menlo Park home’s lease agreement didn’t allow for open houses or Realtor tours more than three times a week for limited times, not enough for a full-blown marketing campaign. Another home in Atherton hadn’t been listed on the market since the 1970s and family members weren’t sure they wanted to list the home to a broad buyers’ market. Both homes were put up for sale ‘off market,’ a type of sales strategy in which the home’s availability is only narrowly advertised to certain real estate agents and potential clients.”

“Over the past five years, Coldwell Banker agent Tim Kerns, who sells in the top 1 percent of agents internationally, said about 40 percent of his sales were ‘off market.’ Realtor Tom LeMieux of Pacific Union in Menlo Park said a big advantage for sellers is that the number of days the home is on the market isn’t tracked unless a home is listed on the Multiple Listing Service, so there is no negativity associated with property if it doesn’t sell quickly. If there is limited or no activity on a home, that someone is trying to sell off market, he said, at some point you need to go to Plan B … an on-market strategy.”

From Quartz. “If you want a gauge the degree of inequality in the US, watch what America’s venture capitalists are funding. One of their most recent is FlyHome, a real estate brokerage that announced a $17 million funding round led by Andreessen Horowitz May 31. It is a service to help people buy homes in America’s hottest housing markets. The problem with these markets is not merely price, which is remarkable since the median home price in San Francisco is now $1.61 million, double the average from just five years ago, and once affordable Brooklyn tops out above $1.4 million. It’s that people, and investors, are making all cash offers.”

“The service is a symptom of a larger global problem. Cities are where the world’s economies are growing, and where opportunities are for those who need them most. Yet housing is now an investment vehicle tied to the financial system, rather than people’s incomes. The expectations of skyrocketing housing prices, and a flood of cheap capital to purchase them, is driving home values beyond actual increases in earnings. That’s created an oversupply of luxury housing at the expense of affordable homes.”

From Business Insider. “In San Francisco, a bedroom at one of the city’s luxury apartment dwellings for $1,290 a month is, all things considered, a steal. A startup called HomeShare offers just that. Founded in 2016, HomeShare leases apartments in expensive new buildings and splices them into additional units, so more tenants can split the rent for less per person. A two-bedroom becomes fit for three after HomeShares installs an upholstered partition in the den, with rents in San Francisco starting at $1,290 per month.”

“The company announced on Monday that it’s expanding to five markets — San Francisco, Silicon Valley, New York, Seattle, and Los Angeles — thanks to new partnerships with major real-estate developers. Jeff Pang, founder and CEO of HomeShare, said the startup has placed over 1,000 individuals into housing, mostly in San Francisco’s white-hot rental market. Pang is of the unpopular opinion that San Francisco does not have a housing shortage. Instead, he says there’s a glut of supply — but it’s all in the luxury housing segment, which is out of reach for some renters.”

From ABC 10 News. “A new web-based rental service called Bungalow has moved into San Diego, offering young professionals a chance to live in a large house in a prime neighborhood for less than what they’d pay for a studio apartment. Bungalow is already in 6 other cities, and now manages three homes in San Diego. One is in Bankers Hill, the other two in Point Loma. The company searches rental listings for large, luxurious homes. They then contact the owner and arrange a three-year lease. Bungalow then rents each individual room in the home.”

“But Bungalow’s neighbors aren’t thrilled. In Loma Portal, where Bungalow manages a six bedroom house, people who have lived there for years say they worry about parking issues. They also fear that the website turns single-family homes into mini-apartment complexes, which could disrupt the feel of the community.”

“‘I know it’s hard to get rentals here that are affordable, but I think this is going one step beyond that,’ says Glynns Mueller, who also didn’t like the idea of a commercial property moving into her neighborhood. ‘I’d like to see it stay residential.”

From the Marina Times. “San Francisco City Attorney Dennis Herrera announced in early May that his office was seeking to penalize two property owners $5.5 million for illegally renting out apartments on Airbnb, a short-term rentals site. Darren and Valerie Lee had used the Ellis Act to evict tenants from a Clay Street property that was then used for short-term rentals, according to the city attorney’s office. The Lees paid $276,000 to the city to settle a suit over the practice, and a court authorized an injunction that prohibits them from using any of their properties in the city for Airbnb in violation of the law.”

“‘However, a painstaking two-year investigation by the city attorney’s office has found that in just the first 11 months that the injunction was in place, the Lees violated it more than 5,000 times, booking more than $900,000 in short-term rentals and pocketing more than $700,000 in illicit revenue from 14 units,’ the city attorney’s statement said. Not a single unit was registered with the city’s Office of Short-Term Rentals.”

“According to the city, the couple got quite creative in eluding city inspectors — but not creative enough. They reportedly used phony leases and staged the apartments so they looked as if they were lived in; dirty dishes in the sink and damp towels from the bathroom. One problem was that ‘every apartment was staged in the same way,’ Herrera’s office noted. ‘This couple’s deceit, fraud, and greed is breathtaking,’ Herrera said.”

From the Mercury News. “How does the low-end pricing on an Oakland rental look these days—and what might you get for the price? This studio apartment, located at 2451 Seminary Ave. in the Bancroft Business neighborhood, is listed for $1,295 month for its 575-square-feet of space. The unit carpeted floors and granite countertops. The building has on-site management. Pets are not allowed. Walk Score indicates that the surrounding area is quite walkable, is bikeable and offers many nearby public transportation options.”

From the San Francisco Chronicle. “In the Silicon Valley, where homes prices are famously skyrocketing, it’s interesting when the price on a home goes down. And it’s especially compelling in the case of a tech mogul’s Los Altos Hills compound that’s now listed for $33 million less than the original asking price. The house at 27500 La Vida Real first went on the market with a big splash for $88 million in November 15, making it one of the most expensive listings ever in the Silicon Valley. It never sold and the price was then dropped to $68 million last May.”

“Still without a buyer, the home owned by entrepreneur Kumar Malavalli is now listed for $55 million, showing it was clearly overpriced when it first hit the market.”

The Los Angeles Times. “A real estate developer pleaded not guilty Monday to charges that he made illegal donations to local politicians while pushing for them to support his $72-million apartment project. Samuel Leung, the developer behind the Sea Breeze project in L.A.’s Harbor Gateway neighborhood, was charged in February with conspiring to launder campaign money and offering bribes to a legislator.”

“Prosecutors with the L.A. County district attorney’s office said Leung and an associate, Sofia David, recruited employees, family members and others as ’straw donors’ to funnel money to local politicians in the hopes of getting a Sepulveda Boulevard lot rezoned so that homes could be built there. The criminal charges came more than a year after a Times investigation into political donations linked to Leung.”

“As of Monday morning, David, who had a warrant issued for her arrest in February, had yet to be arrested in the case, according to Deputy Dist. Atty. Eugene Hanrahan. The Times has been unable to locate her for comment. The Times’ investigation found that more than 100 donors linked directly or indirectly to Leung had made contributions totaling more than $600,000 to area politicians while Sea Breeze was under review. Eleven of those donors denied making contributions or said they did not remember doing so.”

“Before the charges were filed, Leung told reporters who approached him at the Department of Building and Safety that he did not reimburse any donors, but declined further comment. The Sea Breeze project was slated for a vacant site that was designated for manufacturing, not housing. The Department of City Planning and a city commission had opposed a zone change. But Mayor Eric Garcetti and the City Council backed the change, allowing the project to move forward. In the criminal complaint, prosecutors singled out donations from Leung and his associates to political committees that backed eight politicians.”




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116 Comments »

Comment by Ben Jones
2018-06-05 08:43:20

‘offering young professionals a chance to live in a large house in a prime neighborhood for less than what they’d pay for a studio apartment. Bungalow is already in 6 other cities, and now manages three homes in San Diego. One is in Bankers Hill, the other two in Point Loma. The company searches rental listings for large, luxurious homes.’

Why don’t they just rent these shacks to one family? Oh, right, it’s the poorest state in the union.

Comment by 2banana
2018-06-05 09:03:11

Oh look!

An app that makes houses into mini apartments! Without any of those pesky taxes, safety, health, parking or fire codes!

 
Comment by snake charmer
2018-06-05 12:09:45

Are Millennials that good at getting along in close quarters, without technology to mediate human interactions? I am reminded of the intro to the MTV series “The Real World.” “Seven strangers … picked to live in a house … to find out what happens … when people stop being polite!”

The owners of the house should take one of the bedrooms and turn it into a “confessional.”

Comment by aNYCdj
2018-06-05 13:37:28

Talk about Millennials…….Hudson’s Bay to close up to 10 Lord & Taylor stores, including Fifth Avenue in New York

https://www.usatoday.com/story/money/2018/06/05/hudsons-bay-lord-taylor-stores-nyc-fifth-avenue/672197002/

The decision to close the Lord & Taylor store on Fifth Avenue comes after the company recently decided to sell the property to co-working real estate firm WeWork.

Comment by Tarara Boomdea
2018-06-05 16:44:00
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Comment by b
2018-06-05 16:46:11

so where do the upper middle class women shop? I cannot see the dropping $1000 on a jacket/skirt from amazon.com?

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Comment by aNYCdj
2018-06-05 18:35:30

http://gothamist.com/2017/10/24/lord_taylor_sells_landmark_building.php

he century-old, 676,000-square foot Lord & Taylor flagship store on Fifth Avenue will become office co-working behemoth WeWork’s new headquarters. The department store’s parent company, Hudson Bay, sold the building for $850 million.

 
Comment by aNYCdj
2018-06-05 18:38:04

WeWork pushing members out of Chelsea offices to expand its corporate HQ $20 billion co-working giant irks some tenants by abruptly telling them to clear by the end of the month

http://www.crainsnewyork.com/article/20171009/REAL_ESTATE/171009904/wework-pushing-companies-out-of-chelsea-offices-to-expand-its-corporate-hq

 
Comment by Tarara Boomdea
2018-06-05 18:53:55

Now all the stores that were pretty intimidating to go into (when I was young and working around there) on Fifth are gone: B. Altman, Lord & Taylor and Bonwit Teller. They were the big ones, anyway.

I like Trump (now) but I wonder what the story was with this:
Developer smashed panels

 
Comment by aNYCdj
2018-06-05 19:49:20

My best guess it was all approved to be demolished, nobody really wanted it, then at the last second some SJW preservationist demanded hundreds of workers stop working and save it or they will embarrass Trump in the headlines

 
Comment by Tarara Boomdea
2018-06-05 20:15:57

It’s true - no one went as berserk as they do now about those kind of things. In retrospect, it’s a shame.

I used to shop there minimally (in my pretentious youth).

 
Comment by oxide
2018-06-06 07:45:40

Upper class women shop at Talbots, JJill, Macy’s, or other mall stores. Or catalogs like Coldwater Creek.

 
 
 
Comment by oxide
2018-06-06 07:43:59

The youngsters in The Real World were GenXers. GenX are still somewhat traditional, and hadn’t grown up with “sharing” everything. Millenials are so focused on Tindr and sharing, they might fare better as roommates.

 
Comment by RangerOne
2018-06-07 17:25:19

Um young people have been sharing larger homes for rentals for a long time. Mostly they are college kids with minimal income or young professionals just starting out.

When shit gets weird is in the bay when you start seeing highly paid middle aged men living like college kids. If in fact that is happening then this is extending the viability of splitting rent among 2 or more highly paid individuals. That is bound to lead to unrealistic rents for traditional families which are limited to 2 incomes at most and in many cases a single income if god forbid a spouse stays home to raise children.

Its is pretty trivial for 4 single google employees to split 8-10k rent on a 4 bedroom home. Its a joke for a family.

 
 
 
Comment by Ben Jones
2018-06-05 08:45:49

‘According to the city, the couple got quite creative in eluding city inspectors — but not creative enough. They reportedly used phony leases and staged the apartments so they looked as if they were lived in; dirty dishes in the sink and damp towels from the bathroom. One problem was that ‘every apartment was staged in the same way,’ Herrera’s office noted. ‘This couple’s deceit, fraud, and greed is breathtaking’

They’re just disrupting! These “startups” are breaking the law all over the planet.

Comment by 2banana
2018-06-05 09:07:51

as opposed to the Yellen Bucks of QE1, QE2, QE3, QE4, Operation Twist, HARP, HAMP, TARP, trillion dollar yearly deficits, adding more to the debt than all other administrations combined and accounting for inflation, bank bailout after bank bailout, UAW bailouts, Jon Corzine, etc, etc, etc…

+++++

‘This couple’s deceit, fraud, and greed is breathtaking,’ Herrera said.”

 
 
Comment by Ben Jones
2018-06-05 08:47:06

From the last link:

‘In response to questions from The Times, each politician mentioned in the complaint has said they were not offered bribes by either Leung or his representatives. Hanrahan, the deputy district attorney, declined to comment Monday on whether a bribe could be offered to a lawmaker without his or her knowledge.’

‘Yusef Robb, who advises Garcetti on political matters, said in February that the committee that received the money was “an entirely independent committee of which we were barely aware and had nothing to do with,” not his mayoral campaign. Donors linked to Leung provided $60,000 to an independent expenditure committee, Committee for a Safer Los Angeles, which backed Garcetti for mayor in 2013.’

“I don’t believe I’ve ever met him, talked to him,” Garcetti said a few days after the charges were filed. “The full weight of the law should come down on this guy.”

‘The next hearing in the case is scheduled for August. If convicted, Leung faces up to four years and eight months in state prison.’

Stay classy California.

 
Comment by Ben Jones
2018-06-05 08:49:29

‘So many people are picking up sticks and moving out of the Bay Area due to the crushing costs of living there, it’s causing problems for U-Haul, reports SFGate. The truck rental company is having trouble getting their vans back because so many people are renting them for a one-way trip out of town. The high demand, and dwindling supply of trucks, of course, is leading U-Haul to jack up its prices. While a U-Haul from Las Vegas to San Jose will cost you about $100, one the opposite direction will cost upwards of $2,000. Turns out it even costs a fortune to leave the Bay Area.’

Comment by 2banana
2018-06-05 09:10:16

Eventually, like all places where liberals/progressives have power…

They will prevent you from leaving or take everything you have before you leave.

Cause it is for the children.

And Bernie still thinks Valenzuela is an example to follow…

Comment by Overbanked
2018-06-05 14:48:45

Tax Freedom Day 2018: May 6

Tax Freedom Day 1979: April 22

https://taxfoundation.org/tax-freedom-day-2014-data-tables/

 
 
Comment by Kirk
2018-06-05 12:28:30

Just moved from San Diego to Portland. Flew to Phoenix to pick up a truck and saved $3,000.

Comment by rms
2018-06-05 16:18:24

“Flew to Phoenix to pick up a truck and saved $3,000.”

+1 Thinking outside the box!

 
Comment by b
2018-06-05 16:48:20

smart. I guess ingenuity and reasonable frugality is something that a lot of people have lost touch with

 
 
 
Comment by Ben Jones
2018-06-05 08:54:48

‘The Mays family, Shannon, Jason, Jackson and Katie, have lived in Vacaville for almost 20 years. “We left the Bay Area to come to Vacaville because of crowding and crime and costs of housing,” Shannon said. “When we moved up here to Vacaville, to Solano County, we loved it at first. Like the first 10 years were great,” Jason said.’

‘But now, they’re moving again and leaving California. “If you had told me even a year ago, ‘Oh, you’re moving to Oklahoma,’ I would have thought you were crazy,” Shannon said.’

“Over the last few decades, more people have been leaving California for other states than have been coming here,” Brian Uhler, with the Legislative Analyst’s Office, told FOX40. Uhler says between 2007 and 2016, six million Californians left the state.’

“California’s cost of living, which is primarily driven by our housing costs, are higher than pretty much any other state in the country,” Uhler said. “And as a baseline, that means people are going to be more likely to leave California for other states.”

Hold on people. I have it on reliable information that the state guvmint has a bill pending that will fix all this stat! Of course, they’ve been saying that for a while.

Comment by TIC TOK
2018-06-05 11:12:22

I know a couple who moved from Sunnyvale to Okla City. They hated it and moved back after 2 years. Too many icky bible people and guns. So they are back paying $3k a month rent for an apt.

Comment by Carl Morris
2018-06-05 11:50:49

Sounds like it worked out for everyone involved.

 
Comment by ibbots
2018-06-05 12:00:27

Yeah, there’s a really big difference between OK and Vacaville, not in a good way either.

‘Jason Mays says he got the idea to move to Oklahoma from reading an article online.’

What could go wrong?

Comment by Oxide
2018-06-05 12:18:06

What article about Oklahoma DOESN’T mention icky bible people and guns? Especially since Trump was elected. Flyover is supposed to be full of racist gun-toting nat-si’s who think jayzus rode to school on a t-Rex.

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Comment by ibbots
2018-06-05 14:16:30

The change in climate alone will likely make these folks regret their decision. Of all the places to go, OK is pretty far down the list if you ask me. It does have a pretty part, the Broken Bow Mountains in east OK. I guess this is the May’s Oil City move….

 
 
 
Comment by snake charmer
2018-06-05 12:13:38

The one place where I’ve really seen people move to, and then return within a couple of years, is Boston. I’ve never been there myself, but I get the sense that it is a really tough place for newcomers to make friends. Is there anyone here from Boston with some thoughts on this?

Comment by brazendetre
2018-06-05 14:47:45

I’m not from there but had to work there as well as deal with way too many transplants so that may be a better perspective. I would sum them up with the word “abrasive”. Think Bill Burr, without the sense of humor. They think people from elsewhere are slack jawed yokels, but they learn the hard way every place has its own way of doing business and you adapt or get slapped.

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Comment by MIke in Carlsbad
2018-06-05 19:53:51

abrasive is an understatement. I go there for work from San Diego occasionally. The last time I went to a deli and I was asked what kind of bread I said “I don’t know baguette”. The lady went ape, “I don’t know where you’re from but its white or wheat sliced”. The local that brought me there for lunch said “Excuse him he is from California” that seemed to make the wench even more deranged “OH, well we are REAL people over here in Boston…” As she sported the worst fake tan I’ve ever seen and a terrible boob job.

The lame attitude, vindictive driving style, and non stop sports talk makes it my least favorite city, and I’ve spent sleepless nights in Elizabeth NJ (called cops at 3am) and Baltimore around 1am lost from the airport and I still say Boston is the worst.

I guess I’m lucky to have bought at the bottom of the last bubble from a bank, $187k, 4 miles from the beach in an airbox in San Diego and 3 miles to work, its not big, but I can be mortgage free tomorrow if I want, that is freedom.

 
Comment by Tarara Boomdea
2018-06-05 20:34:01

On the east coast, the last thing we can be accused of is holding back. I have never been mean to anyone here (Vegas) but I was never mean in NY. However, when someone asks you what you think, we generally will just lay it on the line and our definitions of “being mean” might be different.

When I worked temp, my co-workers would say, wow, just tell us what you think in a sarcastic way when I told them what I thought. My brother, in his interactions with co-workers here has found the same reluctance to tell it as you see it (wrong or not).

 
Comment by Tarara Boomdea
2018-06-05 20:41:21

I left something out. In general, retail workers on the east coast (at least when I left in 2006 and before that) in general can be extremely rude at worst, uncaring at best.

When we got here, I thought the grocery cashiers and baggers were screwing with me because they were so polite and helpful. I was a cashier through my high school years and I’m ashamed to say, we were not nice, but in our defense, the people we were serving we not nice either.

 
 
 
 
 
Comment by 2banana
2018-06-05 08:58:55

IMHO - way to low on the overvalued percentage…

+++++

Of the nation’s 50 largest housing markets, 52 percent were considered overvalued in April.
CNBC - Diana Olick - 6/5/2018

Of the nation’s 50 largest housing markets, 52 percent were considered overvalued in April. CoreLogic determines affordability “by comparing home prices to their long-run, sustainable levels, which are supported by local market fundamentals (such as disposable income).” In March, 50 percent of markets were considered overvalued.

Not all expensive markets, however, are considered overvalued. San Francisco, for example, where prices are up more than 12 percent from a year ago, is considered at value, because local incomes can support the area’s prices. Boston is also considered at value.

Overvalued markets include Denver, Washington, D.C., Houston, Miami, New York, Las Vegas and Los Angeles.

Rising mortgage rates also continue to weaken affordability. Rates have been rising steadily since this year. While they did take a step back last week, as bond yields dropped, they are on the rise again this week. Mortgage applications to purchase a home have also been falling for several weeks.

Comment by b
2018-06-05 16:50:51

RE: “Not all expensive markets, however, are considered overvalued. San Francisco, for example, where prices are up more than 12 percent from a year ago, is considered at value, because local incomes can support the area’s prices. Boston is also considered at value.”

i dont understand how this is true - yes there are a lot of tech / bio-tech workers - but majority of both cities are mostly regular careers.

 
 
Comment by Mr. Banker
2018-06-05 09:02:51

“California Water Law Could Prevent Showering, Doing Laundry on Same Day”

“California Governor Jerry Brown signed two bills that will force water districts and municipalities to permanently adopt even more aggressive water rationing level than during the state’s 5-year drought.
The San Jose Mercury News reported that Brown issued a press statement that a changing environment means the state must begin to conserve water resources in preparation for the next drought. Brown started: “We have efficiency goals for energy and cars – and now we have them for water.”

(snip)

“According to the attentive folks at The Organic Prepper, this allotted water ration exceeds the amount required for taking a shower and doing a single load of laundry and excludes taking baths altogether.

“Failure by any water district or municipality to meet its 2027 mandatory water rationing goals may result in $1,000 per day fines in normal years and $10,000 a day during inevitable drought emergencies.”

But … but … but swimming pools.

http://www.breitbart.com/big-government/2018/06/05/california-water-law-bans-showering-and-doing-laundry-on-same-day/

Comment by cactus
2018-06-05 09:10:23

Voting today they have a measure to exclude property taxes on water reclamation projects. Why do I have a feeling this will back fire and end up saving 5 big corporations billions in taxes ?

And another trying to get transportation taxes to go for transportation.

Wheres it going now? Pensions? airplane rides ? hookers?

Comment by 2banana
2018-06-05 09:14:51

Pensions and illegals.

Free sh!t Army votes don’t come cheap.

 
 
Comment by 2banana
2018-06-05 09:12:43

Millions of illegals in California.

Massive traffic.
Massive fraud.
Destruction of schools.
Etc.

and using massive amounts of water.

California deserves everything coming to them.

Comment by Ben Jones
2018-06-05 09:15:26

Stolen water. I’ve read there is a huge aquifer under the desert from around Palm Springs to western Arizona such as Lake Havasu City that southern California is making a move on. Twisting arms and no doubt some fat envelopes or promises of such.

Comment by In Colorado
2018-06-05 10:50:37

Something like that could get tied up in the courts for years, fat envelopes notwithstanding.

Water is a very precious commodity in the Southwest, and the drought hasn’t made the situation any better. I seem to recall that some years ago Arizona won a big victory vs California regarding the Colorado river. I’m sure the Arizonan’s are very aware of this aquifer and will fight tooth and nail for it’s share of it.

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Comment by Dave
2018-06-05 13:42:00

If CA reduces just 5% of its Ag industry, there would be plenty of water for all. Every civilization that has relied on irrigation has failed. Lettuce and berries growing in a desert to feed the masses all over the world. Dumb.

Comment by Young Deezy
2018-06-06 07:55:10

Or we could, you know, stop importing millions of 3rd world peasants who reproduce like cockroaches and consume resources (like water) as though it was going out of style. When you look at the number of “Californians” who are immigrants or the children of recent immigrants, you realize that without these people the population numbers in CA would be significantly lower, leading to less demand for resources.

Comment by rms
2018-06-06 09:14:11

“…3rd world peasants who reproduce like cockroaches…”

FWIW, we have retirement accounts whereas they rely on their children many of whom won’t make it to their teens.

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Comment by rms
2018-06-05 16:26:30

“…by establishing statewide water efficiency standards.”

Many soCal municipalities don’t have metered water while up in the SF bay area they do have them and pay dearly. The southland needs to get onboard before any other rate hikes are imposed further north.

 
 
Comment by Bay Area Native
2018-06-05 09:05:11

Love the Bay Area theme today Ben. Here is something to look at, this owner who is a licensed Realtor purchased this home in January 2018. Per the MLS notes, she decided that being a landlord was not for her. Not the home is Listed for $999,000 and has been on the market for 24 days.

This idiot is about to loose over $300,000 in less than 6 months. Hey, but the Bay Area market is HOT!!. I’m starting to see the cracks in the market and waiting for this baby to BURN

https://www.redfin.com/CA/San-Mateo/1527-Noe-Ave-94401/home/1348897

Comment by Ben Jones
2018-06-05 09:09:38

She lost more than that if you include the remodel:

For Sale
$998,000
Zestimate®: $1,278,564

‘Remodeled 3BR 2BA Home near schools, trails, parks, shopping centers with short drives to HWY 92 & 101; new stainless steel appliances with remodeled kitchen and granite countertops’

05/12/18 Listed for sale $998,000-22.5%
01/03/18 Sold $1,288,000+33.1%
12/20/17 Listing removed $968,000
12/07/17 Listed for sale $968,000+10.3%
07/31/17 Sold $878,000+35.1%
07/14/17 Listing removed $650,000
07/06/17 Listed for sale $650,000

https://www.zillow.com/homedetails/1527-Noe-Ave-San-Mateo-CA-94401/15530155_zpid/

What an ugly shack. Something suspicious in that July 2017 activity.

She’s been disrupted.

Comment by Bay Area Native
2018-06-05 09:27:52

Listing removed just means the home went “Pending” on the MLS. I have full access to MLS info. Here are the dates and agent notes:

OFFERS ARE DUE BY 11:00AM, TUESDAY, DECEMBER 19TH, 2017

Dates
$968,000 Original: 12/07/2017
List Price: $968,000 List: 12/07/2017
Sale Price $1,273,000 Sale: 12/20/2017

This was a flip by the previous buyer who purchased on July 31,2017 and he’s the one who did the remodel. The current owner is still loosing their shirt but I don’t feel bad for her - she did pay CASH!!

Comment by ibbots
2018-06-05 10:26:59

There have been several stories about everything going for over list in the Bay Area. Isn’t a strategy to under price a unit to encourage a bidding war?

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Comment by Bay Area Native
2018-06-05 10:37:31

True ibbota, but when under pricing they tend to look at offers in 10-14 days. For this particular home in San Mateo it’s been on the market over 23 days. I’ve also reached out to the listing agent and he has acknowledged the owner is going to take a loss.

She is *ucked!

 
 
 
Comment by rms
2018-06-05 16:36:02

“She’s been disrupted.”

Star Trek Klingon Disruptor
https://www.youtube.com/watch?v=X00tnDF-_90

 
 
Comment by taxpayers
2018-06-05 10:21:04

Bay Aryans w Natze gold

bahhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh

 
 
Comment by Ben Jones
2018-06-05 09:05:53

‘Over the past five years, Coldwell Banker agent Tim Kerns, who sells in the top 1 percent of agents internationally, said about 40 percent of his sales were ‘off market.’ Realtor Tom LeMieux of Pacific Union in Menlo Park said a big advantage for sellers is that the number of days the home is on the market isn’t tracked unless a home is listed on the Multiple Listing Service, so there is no negativity associated with property if it doesn’t sell quickly.’

So those days on market numbers are UHS horse-hockey!

Comment by 2banana
2018-06-05 09:15:58

Ha! The dark web of selling houses.

 
 
Comment by Ben Jones
2018-06-05 09:22:20

‘The house at 27500 La Vida Real first went on the market with a big splash for $88 million in November 15, making it one of the most expensive listings ever in the Silicon Valley. It never sold and the price was then dropped to $68 million last May. Still without a buyer, the home owned by entrepreneur Kumar Malavalli is now listed for $55 million’

You’ve been disrupted Kumar.

Comment by 2banana
2018-06-05 09:37:09

The top end always freezes up first…

 
Comment by oxide
2018-06-05 10:03:42

Here’s the $55 million house:

https://www.zillow.com/homedetails/27500-La-Vida-Real-Los-Altos-Hills-CA-94022/69299302_zpid/?fullpage=true

It’s Zestimated for $12.8 million.

Design-wise it’s pretty meh. For that kind of money the effing thing better look like Neuschwanstein Castle.

Comment by Mafia Blocks
2018-06-05 12:12:48

Hey Donk

 
 
 
Comment by Carl Morris
2018-06-05 09:35:20

This morning a local Chinese acquaintance asked me if I knew anybody that might want his nice house in Granite Bay right on Folsom lake. He has it listed for 1.2M. It’ll be interesting to watch and see if there is anything unusual driving his decision to sell now.

Comment by 2banana
2018-06-05 09:52:26

What is a best guess on property taxes?

Comment by Carl Morris
2018-06-05 10:19:21

Something a little odd on that. It sold for nothing back in 2013 so the tax assessment is only 480k so the taxes are about 6k/yr. Apparently there was some kind of massive remodel or scrape and rebuild done a couple of years ago because suddenly it was listed for 1.3M in 2017 and then sold later in the year for 1.15, apparently to my acquaintance. Now he seems to be trying to get out from under it only about 9 months later. He’s asking a little more than he paid but not enough to cover the transaction expenses.

Comment by 2banana
2018-06-05 10:44:03

Sounds like no permits or inspections.

Because if you did a “there was some kind of massive remodel or scrape and rebuild done a couple of years” there be a YUUUUGGEEE tax hit

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Comment by Carl Morris
2018-06-05 11:05:22

I was thinking about that but my guess was that the YUGE tax hit just hasn’t happened yet, but will soon.

 
Comment by In Colorado
2018-06-05 14:11:37

If they only remodeled and did not add square feet, they should be covered by Prop 13. If they did add space, my understanding is that the existing space is not reassessed.

 
 
 
 
Comment by oxide
2018-06-05 10:10:26

Is this the house? It’s the only house in Granite Bay right on the lake that is listed for that price.

https://www.zillow.com/homedetails/7772-Lakeshore-Dr-Granite-Bay-CA-95746/17677890_zpid/?fullpage=true

Property taxes are $5557/year. Which really isn’t bad for house of that calibre.

Comment by Carl Morris
2018-06-05 10:20:23

Yeah, that’s it. But look at the valuation/tax history.

Comment by oxide
2018-06-05 10:40:20

I don’t know California taxes very well. I keep confusing CA with CO and Mella-Roos with TABOR with homestead tax laws.

Tax valuation is $477K, taxes are $5557. So whoever buys the house at $1.2M will pay $15K in taxes? I don’t know…

But taxes or not, that’s a SCHWEET-looking house. Multilevel, huge views, fun landscape, waterfront, two kitchens, no pool but there’s a hot tub, “nice” furnishings but not arrogant. [carpet's gotta go tho] Much better than the $55M thing over in Silly Valley.

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Comment by Carl Morris
2018-06-05 10:43:41

From my perspective it’s a nice house in Granite Bay, which means all “10″ schools, and on the lake. But it’s only 3br, which is an issue at that price point. I told my wife this morning that the first thing I thought of when I looked at it was that it looked like the perfect rich Chinese guy “second wife” house, for the extra family he keeps in the USA.

 
Comment by Bay Area Native
2018-06-05 11:49:20

He’s trying to sell because the market is softening and the word is getting out. I’ve had several investors contact me trying to sell their inferior location real estate to jump into more desirable areas. Apparently they think that will save their equity. We are going to see a %50-60% correction here in the Bay Area in the next 6-9 months.

I was around during the 2008 crisis, there was a point I had 50-60 listings at any given time (all short sales) We were doing daily intakes on people who were trying to modify their loans and or short sell. Client intakes were with prominent RE attorney’s, BK and family law attorneys all to go over deficiency laws here in CA. It’s all about to happen again and anyone who purchased in the past 4-5 years is about to take a hair cut.

 
Comment by b
2018-06-05 16:58:02

with respect Bay Area Native, there are a lot of (very naive) folks on the sidelines waiting to buy. I think it will have to be a 3+ year downturn period to even get to a 25% loss.

 
Comment by taxpayers
2018-06-06 06:47:44

big gov will make it so
smelly Mel Watt

 
Comment by Mafia Blocks
2018-06-06 07:04:06

“I think it will have to be a 3+ year downturn period to even get to a 25% loss.”

During the last minor correction prices fell 40% in 18 months.

 
Comment by Carl Morris
2018-06-06 09:30:28

Yeah, people on the sidelines tend to hold off while prices are falling in hopes they will fall even further. Which is why the Fed has to get involved, or else losses will get real.

 
Comment by Mafia Blocks
2018-06-06 10:04:44

When it comes to housing, losses are always real. It’s the nature of depreciation.

 
Comment by Mot
2018-06-07 13:50:03

This time, given this administration, the Fed won’t get involved. It will take a couple more rate hikes for the idea to sink in. At that point, prices will regress to the California “norm” of 6x income.

And then the next up cycle will start again.

 
Comment by Carl Morris
2018-06-07 16:34:20

This time, given this administration, the Fed won’t get involved.

I agree that this administration changes things, but still I think the Fed will still get involved. The alternative is too severe. If you let all this pent up energy do what it wants to do, heads will roll.

If you are right and heads are allowed to roll (or by the time they try to stop it, it’s too late to stop), it will be a long time before the next up cycle starts.

 
 
 
Comment by Ben Jones
2018-06-05 10:20:48

05/31/18 Price change $1,235,000-0.3%
04/18/18 Listed for sale $1,239,000+7.7%
08/30/17 Sold $1,150,000-10.1%
07/09/17 Pending sale $1,279,000
06/03/17 Price change $1,279,000-0.5%
04/21/17 Price change $1,285,000-1.1%
03/03/17 Listed for sale $1,299,000+142,804%

Flipped it to a flipper.

 
Comment by rms
2018-06-05 16:58:07

“Is this the house?”

I imagine it’s really difficult to leave that lifestyle for a spec home especially for the busty split-tail bird with #4 waist.

 
 
 
Comment by Mortgage Watch
2018-06-05 09:40:42

Pullman, WA Housing Prices Crater 21% YOY As State Economy Slows

https://www.movoto.com/pullman-wa/market-trends/

 
Comment by TIC TOK
2018-06-05 11:07:12

Yo ABC…what is a medium price? Oh you mean median? These are the elite MSM members that think are smarter than us little people.

 
Comment by Albuquerquedan
2018-06-05 11:43:01

I heard on public radio today that the Chinese are buying up North Korean real estate in anticipation of a deal between the US and North Korea. In the border town mentioned houses have appreciated 50 per cent. I hope it is a good sign bit I have to admit I am shocked. First, that NK has private property for sale, second that a foreigner could buy it and third NK has real estate agents. You have to admit they are a bit like cockroaches to survive under that government.

Comment by Carl Morris
2018-06-05 11:53:52

I had heard people were speculating on the NK borders (north and south), but I hadn’t heard anything about inside of NK.

Comment by Albuquerquedan
2018-06-05 15:42:56

Carl, you are probably correct the reporter called it a North Korean border town but it could very well be A Chinese town bordering North Korea. It would make a lot more sense.

 
 
Comment by Oxide
2018-06-05 12:29:49

That’s pretty risky. So, what happens if NK is lying? (A very high probability) And reneges on whatever deal? Are these Chinese going to blame Trump when their NK property tanks and/or is confiscated. Are they going to demand that the US military defend this property?

Comment by BlueSkye
2018-06-05 18:57:40

You think the Chinese will demand the US military defend their malinvestments in China? Very strange.

Comment by oxide
2018-06-06 08:27:12

Heh. You never know. American makes deal, you speculate depending on that deal, deal falls through, blame America. Why not. The rest of the world likes to do it. They love globalism… as long as they’re on the receiving side of the globalist goodies.

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Comment by Mortgage Watch
2018-06-05 12:26:18

Hallandale Beach, FL Housing Prices Crater 26% YOY As Vacation/Coastal Property Market Crash Accelerates

https://www.movoto.com/hallandale-beach-fl/market-trends/

 
Comment by xstate
2018-06-05 15:57:38

I’ve noticed that this blog tends to mention and is fascinated by Millennials as of recent. Let me ask this: where on earth do people think that any millennial with brains would pay ridiculous prices for this stuff in Cali or anywhere else for that matter? I wouldn’t give $500.00 total for half of the houses they push nowadays.

Comment by rms
2018-06-05 17:10:01

“…fascinated by Millennials as of recent.”

They’re fun to disparage, but they’ve got some advantages, e.g., Tinder dating rather than toughing it, and the birds are well groomed these days… no wool like back in the day.

 
Comment by BlueSkye
2018-06-05 17:39:08

Unfortunately, odds are that nearly half of your so-called Millenials are below average intelligence. Between the dumb, the dishonest and the greedy, it’s all uphill for the rest of us.

Comment by Carl Morris
2018-06-05 18:08:51

Unfortunately, odds are that nearly half of your so-called Millenials are below average intelligence.

Just like every generation.

Comment by redmondjp
2018-06-05 22:49:20

No, honestly I think they are worse (of course this is a generalization). I work with a bunch of them (30-somethings, all of which have been promoted into management ahead of all of the 50-60 year old people with more brains and experience) and they think they know everything. They won’t even listen to those of use who know more than they do.

Very frustrating to watch our organization go down the drain because of this.

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Comment by DF
2018-06-06 06:55:38

Interesting…I’m 36 (so I’m an early Millennial), and everyone seems to get along/work together reasonably well where I work.

 
 
 
 
Comment by Apartment 401
2018-06-05 17:58:25

Millennials are garbage.

Every article I read about the increase of STD’s, depression, financial anxiety among millennials only confirms this.

Comment by rms
2018-06-05 18:05:06

“Millennials are garbage.”

FWIW, my generation has thrown them under the proverbial bus.

 
Comment by xstate
2018-06-05 19:46:44

And are you a member of the garbage generation?

 
Comment by Mr. Banker
2018-06-06 04:06:23

Millennials are profit centers. Amusing ones at that.

 
 
 
Comment by Apartment 401
2018-06-05 18:11:32

Ben Jones, real journalists from The Atlantic dot com provide the following narrative titled “Just Say It’s Racist” and subtitled “The American press is caught between describing Trumpism accurately and avoiding the wrath of the president and his supporters”

https://www.theatlantic.com/politics/archive/2018/06/just-say-its-racist/561962/

Last I heard, job openings in the United States were at an all time high and black unemployment is at an all time low.

The Democrat Party hates jobs, hates work, and only supports MS-13, AntiFa, and the restoration of the Cloward-Piven strategy as their economic policy.

If you hate jobs, hate employment, and love illegal aliens, vote Democrat Party, LOLZ.

Comment by Ben Jones
2018-06-05 18:33:21

‘Former FBI Deputy Director Andrew McCabe has requested the Senate Judiciary Committee provide him with immunity from prosecution in exchange for testifying at an upcoming congressional hearing focused on how senior officials at the FBI and Justice Department handled the investigation of Hillary Clinton’s private email server, according to a letter obtained by CNN.’

https://www.cnn.com/2018/06/05/politics/andrew-mccabe-immunity-grassley/index.html

Comment by Ben Jones
2018-06-05 18:38:27

‘Lawmakers on Tuesday are scheduled to interview the first of three current and former FBI officials set to appear before the House Judiciary and Oversight committees this month as part of their ongoing review of how the Department of Justice handled the Clinton and Russia investigations, according to congressional aides.’

‘Assistant Director Bill Priestap, the head of the FBI’s counterintelligence division, is expected on Capitol Hill Tuesday, according to aides familiar with the planned interview. The committees are planning to also question Michael Steinbach and John Giacalone — two former executive assistant directors of the FBI’s National Security Branch — later this month.’

‘Priestap is of interest to lawmakers for his role supervising the Clinton email investigation. He was named assistant director of the counterintelligence division in December 2015 by then-FBI Director James Comey.’

https://abcnews.go.com/Politics/lawmakers-question-fbi-officials-review-clinton-probe/story?id=55644798

From what I’ve read this Priestap guy is the one with the goods.

 
Comment by jeff
2018-06-05 21:58:33

Hillary On Wiping Her Secret Server: “Like With A Cloth?”

https://www.youtube.com/watch?v=9Rha6Wamfp0

 
 
Comment by oxide
2018-06-05 18:39:23

Trump’s policies would be much more widely accepted if Trump himself wasn’t such a whining snowflake. “My ratings went down… boo hoo I’m gonna pardon myself…”

Comment by Apartment 401
2018-06-05 18:50:45

I interviewed for a job at 4pm on a Monday and had an offer in my email inbox at 10am Tuesday. This is in the private sector, after wasting 5+ years of my life as a federal government contractor.

So yeah, nice narrative. Some of us like to work.

Comment by rms
2018-06-05 20:33:11

Can an electrician function with colorblindness? Seriously.

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Comment by ChuckA
2018-06-06 04:32:26

I worked at a “cabling” company in college, they would not hire you if you were color blind. They had an install go wrong - wired up willy nilly - It looked right to him!

You also had to be good with heights and ladders - which they had a test for, worlds tallest and rickety step ladder - LOL. They had someone who wouldn’t climb ladders or scafolding despite being “Ok” with heights.

 
Comment by rms
2018-06-06 08:07:28

Thanks!

 
 
 
 
 
Comment by jeff
2018-06-05 22:20:43

The time draws nigh.

 
Comment by Professor 🐻
2018-06-06 01:10:06

“Forty-six percent of Bay Area residents are planning to leave the region in the next few years, according to a survey from the Bay Area Council. The survey results show a 6 percent increase from last year in residents who want to relocate.”

Because everyone wants to leave there?

Comment by Carl Morris
2018-06-06 09:37:48

Because everyone wants to leave there?

Nice accent :-).

 
 
Comment by Professor 🐻
2018-06-06 06:18:52

Calling all debt donkeys! It’s time to get into a high-rate subprime loan and purchase your dream home!

How to buy a house even if you’re still in debt
By McCall Robison
Published: June 6, 2018 5:04 a.m. ET
A few numbers you need to know
Bloomberg

Many people consider buying a house to be the finish line after conquering the hurdles of debt. But that doesn’t always have to be the case. Yes, buying a house is one of the more difficult achievements, especially when you’re sitting on a mound of debt, but that doesn’t mean it’s impossible. You can buy a house if you’re already in debt. Even if you currently have too much debt to seal the deal, these tips will get you closer to the finish line:

Comment by Mafia Blocks
2018-06-06 06:36:39

“Calling all debt donkeys!”

Can we get Donk Craterton to weigh in with a hoof or two?

 
 
Comment by Albuquerquedan
2018-06-06 06:49:38

I blame the lenders even more than the borrowers. While the borrowers probably got deep in debt through irrational decisions, it might even be rational to take on more debt to essentially buy that lottery ticket. If the house soars in value you can pay off the debt. If not, you will just be filing bankruptcy and that was probably going to happen anyway. The lender seems to be gaming the system even more. Earning high interest rates and counting on the government to bail out the system if the economy tanks and these type of people cannot pay. It Suggests the lenders know they will be bailed out. Thus, we are no different with China where you put money into the stock market or housing when the government wants that to happen and you hope you are well connected enough to know when the government changes policy. The invisible hand of the market controls little, the invisible hand of secret government policy is king

Comment by Mr. Banker
2018-06-06 08:03:19

“I blame the lenders even more than the borrowers.”

I congratulate both the lenders and the borrowers.

I congratulate the lenders because they have a good thing going for themselves; I congratulate the borrowers because they make this so.

While my congratulations to lenders is sincere my congratulations to borrowers is less than sincere. Much less. But, nevertheless, they get to soak up my words of congratulations because this goes with the job and these people are too stupid to realize this fact.

 
 
Comment by taxpayers
2018-06-06 06:50:39

aside from the derivatives trading it seems every gimmick from the last bubble is available
3%
0 down via dept of AG ?

 
Comment by Mafia Blocks
2018-06-06 07:38:32

“Samuel Leung, the developer behind the Sea Breeze project in L.A.’s Harbor Gateway neighborhood, was charged in February with conspiring to launder campaign money and offering bribes to a legislator.”

Is this how it’s always done?

You’re going to jail Mr. Leung…….. you’re going to jail.

 
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