We Just Came From A Few Years Of Record Everything
It’s Friday desk clearing time for this blogger. “As the market gets more competitive, mortgage lenders are looking for ways and means to cut costs. The quarterly Fannie Mae survey of lenders had found that despite lenders making significant investments to improve operational efficiencies, margins had declined over the past few years. The survey also painted a sobering picture of the housing market, indicating that mortgage demand sentiment had reached a three year low. Lenders’ profit margin outlook also took a dive and remained in the negative territory for the seventh consecutive quarter.”
“Time to beg for a raise. The price of being a homeowner touched a nine-year high in the first quarter, with borrowers in some parts of the U.S. spending half their income on mortgages, according to Zillow. ‘For the past few years, historically low mortgage rates provided the silver lining for buyers as prices rose higher and higher,’ said Aaron Terrazas, senior economist for Zillow. ‘That affordability edge is getting thinner. In markets that have seen some of the biggest increases in home values, housing costs already take up a larger share of income than they did historically, making it all the more difficult for buyers.’”
“The affordability squeeze is worst on the West Coast, including in the Silicon Valley area, where homeowners spend more than half their incomes on mortgage payments, according to Zillow.”
“Home sales are spiking in Lafayette Parish and the overall housing market looks relatively stable, according to a new report. Increased sales in the plus-$300,000 range aren’t keeping up with the glut of new listings, particularly when it comes to resales. Year-over-year sales in the high-end range were up 13 percent in May, but new resale listings, which far outnumbered those for new construction, were up 31 percent. ‘The problem has been in that there has been too much supply coming on the market, and that is particularly exacerbated in the upper end resale market,’ said William Bacque, president of Van Eaton and Romero.”
“The Chicago Tribune has already warned of a bubble in the city’s house flipping ‘frenzy.’ ‘Denise and I were amazed at the state this house was in – these unethical flippers are little more than con-men trying to make a quick buck at the expense of Chicagoans looking for a home,’ said Charles Bellefontaine of Chicagoland Home Inspectors. ‘Make no mistake about it: These homes are dangerous. Sooner or later, the effect of ‘quick flipping’ is going to result in tragedy. This is a ticking time bomb that is coming about purely because of greed with no concern for consequences. As home inspectors, we are vigilant against this threat and condemn this unethical behavior. Who wants to buy a potential death trap?’”
“Vancouver’s real estate market has been electric for the past few years. Prices in the British Columbian city have been soaring since 2015, but tightened lending, higher interest rates across Canada, the city’s new government and tax worries may dampen the mood. Prices were down 4.6% to and average of C$1.3 million (US$1.07 million) compared to the month before, according to Zolo, which updates data in real time. That’s a 7.2% decrease from the previous year, as of June 4.”
“‘We just came from a few years of record everything—record sales, record prices, record time on the market,’ said Vancouver-based agent Leo Wilk. ‘That was from about 2015 to honestly about four weeks ago. ‘Interest rates are up and banks are tightening up lending. That has slowed things down. Anytime you decrease buying power, buying decreases.’”
“Turkish sales of housing rose for the first time in four months after the government introduced incentives such as slashing mortgage rates charged by state-run banks. House purchases via mortgages fell 11.7 percent in May from a year ago, a slower pace of decline than previous months, the data showed. A slump in mortgage lending, prompted by a rise in interest rates, had been the main factor in depressing the market. Turkish housebuilders have also cut prices. In May, 40 large firms jointly reduced the price of some new housing by 20 percent to stimulate demand and sell off old stock.”
“Property owners will have to brace themselves for lower returns and rising vacancies as more tenants battle to pay their rent. The market has weakened so much that rentals in some areas are down more than 30% year on year. This is particularly true for Cape Town, where buy-to-let owners have been forced to either lower their asking rentals or face the prospect of sitting with empty properties. That signals a sharp reversal of fortunes for Cape Town landlords. This time last year, rentals in the Mother City were still testing new highs, and demand for properties to let seemed never ending.”
“Letting specialist Grant Rea says there has been a significant shift from October to a rental market that is oversupplied. Rea says many landlords who were letting their units on a short-term basis through Airbnb have found that the returns don’t justify the time and effort involved. In addition, increased competition in the Airbnb market has placed pressure on rates. ‘Many [landlords] have returned to long-term letting, which has flooded the rental market as a result,’ he says.”
“It would be India’s first privately built and managed city, one of five planned for 30,000 to 50,000 people each. Today Lavasa is an incomplete shell housing some 10,000 people, a symbol of the excesses gripping the world’s second-most-populous nation. This onetime hilltop paradise is becoming for some a hell on earth. Signs of neglect are everywhere: maintenance is late or nonexistent. And that’s for the construction already done. For the unfinished building works—i.e. most of it—there is little happening.”
“Arguably even worse off than current residents are the thousands of people who have put down their life savings or borrowed money to buy property here, only to fear it may never get built. ‘In 2012, when we first came to this place, it was booming—from being a vibrant place it has come down to be a ghost town,’ said David Cooper, a 63-year-old resident of Lavasa’s home for senior citizens, Aashiana. ‘There is hardly anyone who wants to stay.’”
“For a glimpse of where Lavasa may be heading, look to Aamby Valley, another affluent township outside Mumbai turned ghost town built by a separate developer. That $5.5 billion township is facing liquidation after its backer defaulted. ‘Selling big land banks like Lavasa or finding investors who can write big checks for a project like that would be quite a struggle in the current environment,’ said Amit Goenka, managing director of Nisus Finance Services Ltd. ‘There are just too many distressed sellers and not enough buyers in this market.’”
“In China’s Inner Mongolia province, in the middle of the Gobi desert, row upon row of largely vacant apartment towers line the streets of Kangbashi, a new district of the city of Ordos. Earlier this month, Xu Yongfen and his family moved into one 28-story building. But most apartments remain unoccupied, their doors still covered in plastic wrap, and at street level, barren storefronts are visible in all directions. ‘This area is nearly totally empty,’ Mr. Xu says.”
“Built by the dozen across the country, the new areas reflect—and were meant to accelerate—China’s economic boom. As the country’s growth has slowed, many of them have become serious liabilities, deep in debt, with little prospect of full occupancy anytime soon. Officials have since reduced their population goal to 300,000, and they are just halfway there. An early resident, Hu Richa, has been waiting seven years for more neighbors. Still, he says, ‘There’s barely anyone living here.’”
“Sold apartments aren’t necessarily occupied. Chinese families often use them as investments or to hold until their children become adults, which explains why Kangbashi is so thinly populated. Asked about excess inventory in the new district, an Ordos housing official said that Kangbashi is still growing toward its capacity. ‘Supply is low, and the need is large,’ she said.”
“The Sabah Housing and Real Estate Developers Association (Shareda) has written to Chief Minister Datuk Seri Shafie Apdal to request the State Government to hold roundtable discussions with developers and stakeholders over the issue of the overhang in residential properties. Shareda president Chew Sang Hai said the association would put forward several proposals to the government, including acquisition of overhang residential units by the government for People’s Housing Project (PPR) or 1Malaysia People’s Housing Programme (PR1MA).”
“He said the issue of residential overhang would be greatly alleviated if the government would absorb the unsold units in the market. He added that the overhang was defined as unsold completed property that have been in the market for more than nine months. Chew said property overhang in Sabah had reached 25 percent, majority of which are bumiputera units. ‘When the market is bullish, these overhang properties will gradually be absorbed. But the number of overhang units is accumulating in the current market slowdown,’ he said. He said developers could previously sell off 80 to 90 percent of their properties upon launching. ‘Given the current market circumstances, hitting 60 to 70 percent sales for a project is already considered an amazing feat.’”
“Changes proposed to restrictions coming on foreign buyers may go too far and risk exposing New Zealand to a dangerous over-supply of housing, says ANZ chief economist Sharon Zollner. ‘It might seem like a far-fetched concept here in New Zealand with our chronic housing shortages, a sharp increase in housing supply is not everywhere and always a good thing, in the big picture,’ she said. Zollner said the Australian ANZ research team expected prices to fall 10 per cent from their peak to lowest point in Sydney and Melbourne. That was driven in large part by credit availability, she said, but more apartments could be expected to become available over the next year or two, as prices continued to stall.”
“‘If a significant number of foreign investors were to not settle because prices were heading south, it would amplify the downward pressure on the housing market,’ she said. Former ANZ and now independent economist Cameron Bagrie said investors who had previously looked for capital gains would not get them, but yields - the measure of rent compared to purchase price - were not high enough for investors who wanted properties for income. ‘There will be a new wave of buyers who are more yield-based investors but at the moment the numbers don’t stack up, it’s a Mexican stand-off.’”
“A founding member of one of Australia’s biggest real estate fund managers Charter Hall’s Cedric Fuchs has warned of serious vulnerabilities in the housing market with people not adequately prepared for the risks of a downturn. The fund manager said there was growing complacency in the residential property markets especially when it came to managing debt. ‘I don’t think a lot of people have done stress tests when they have gone to buy residential property,’ he told The Australian Financial Review. ‘I don’t think people know where these fingers of vulnerability lie. It’s very much like an avalanche. Nobody knows where the voids are under the fingers of snow that can pull everything down.’”
“Now, as house prices around the country start to show negative growth - the ABS this week recorded the first annual price fall in Sydney since the March quarter 2012, Mr Fuchs says people should exercise extreme caution in the housing market, even with record low interest rates. ‘We have seen a very artificial thing happen with the central banks pulling interest rates down - I think the last time interest rates went that low was 500 years ago.’”
“‘It’s one big experiment. I think people are in unchartered waters. A lot of people who kept missing out at auctions thought their affordability was still ok because of lower interest rates. The debt has increased dramatically and I don’t think people have stress tested for when the rates go up. Nobody really knows how the debt sits and who is behind it.’ Mr Fuchs tells the story of a recently divorced friend who he was amazed to learn had heavily leveraged five houses.”
A poster here said I made too much of the shortage horse hockey the REIC spins.
‘It might seem like a far-fetched concept here in New Zealand with our chronic housing shortages, a sharp increase in housing supply is not everywhere and always a good thing, in the big picture…If a significant number of foreign investors were to not settle because prices were heading south, it would amplify the downward pressure on the housing market’
When these pie-holes stop, I’ll stop.
‘Asked about excess inventory in the new district, an Ordos housing official said that Kangbashi is still growing toward its capacity. ‘Supply is low, and the need is large’
Can you believe this crap?
‘Kangbashi is still growing’
Yeah, it’s piling up so much you’re gonna need waders pretty soon.
For the incessant BS, or for the deepening inventory glut?
The Housing Hens would love to censor you.
Desperate DebtDonkeys. Desperate desperate DebtDonkeys
‘Lenders’ profit margin outlook also took a dive and remained in the negative territory for the seventh consecutive quarter’
Has the MSM informed you of this turn of events? This is truly shocking.
‘The affordability squeeze is worst on the West Coast, including in the Silicon Valley area, where homeowners spend more than half their incomes on mortgage payments’
This was the subject of a report I posted here a while back. All of the most expensive shack markets were exactly where price to income was the highest. Every single one. And the more expensive, the higher the ratio. It’s not rich people pushing up prices, it’s leverage.
“Denise and I were amazed at the state this house was in, these unethical flippers are little more than con-men trying to make a quick buck at the expense of Chicagoans looking for a home,’ said Charles Bellefontaine of Chicagoland Home Inspector”.
Had a guy come over to help me last year with some of the house stuff that I had been procrastinating on. Running cables thru walls, adding some attic insulation, painting, etc. I needed a second set of hands and frankly I didn’t feel like going up in the attic during 100+ degree temps to lay insulation. Wife found someone who moved here from SoCal.
Guy was a flipper. Buy a house, give it the Dwell fix-up while living in house, sell house and walk away with a profit kinda guy. Heard all about the flipping life while he was helping me. He told me that he had flipped something like 7 houses over the last 5 years.
Personally, I found his attention to detail lacking and his home repair skills to be less than I had hoped for. I ended up doing much more of the job than I had originally envisioned. I was constantly having to redo his work to the point where I ended up doing the electric myself.
The kicker was the attic insulation job. While I was getting more insulation at the local Home Depot I left my new worker with instructions to lay out the stuff I already had. When I got back to my house I was shocked to see that the insulation was laid in upside down with the vapor barrier on the wrong side.
I can only imagine the kinda of job that this guy did when it came to replacing electrical boxes, re-routing gas lines, laying tile and the moving of load bearing walls on his soon to be flipped properties. Yikes!
Had a doctor friend buy a flip in Salt Lake during the last bubble. It was over $800K. She invited the wife and I up for a weekend visit. The workmanship on the redo wasn’t great and on the drive back I commented to my wife that I wondered what kind of prep and waterproofing was going on under the dreadful tile job the flippers did in the showers. About a year later, while the doctor was sleeping, pretty much most the entire floor of the master shower collapsed into one of the basement bedrooms.
Evidently, the floor joists under the original shower had very bad prior rot that wasn’t replaced during the flip and the new job was done so poorly that even more water was allowed to penetrate the area which finally caused the shower to end up downstairs.
Careful, steadykat.
There are several people who peruse and likely post on this board regularly that have done and/or are actively doing pretty much what you describe here.
They’ve made LOTS of money screwing people over.
The “realtors are liars” bromide appears daily on this board. I think people such as you describe above are far worse than any realtor. A great deal more unethical and amoral than any realtor.
Kensington, MD Housing Prices Crater 14% YOY As Empty Housing Inventory Reaches New High
https://www.movoto.com/kensington-md/market-trends/
Ben, Ben…
Living well is the best revenge. Don’t forget that.
And “I told you so” s can be delicious.
He’s probably referring to me. Usually happens that way.
But now I think I see what Ben is getting at. The real estate industry is screaming “shortage, we need more housing, give us some yellenbucks… An uh, can we have some tax breaks too? We’ll make 1% of our units affordable. And, uh, well, since we only built luxury, can you give the poors some money to pay our luxe rent rates? … … What do you mean no? You’re throwing children on the street! Don’t you know there’s a shortage?”
Yeah, it’s BS from the REIT.
In 2005 I was invited to be on a XM radio broadcast to 11 million listeners. I said at the time there was a no shortage of housing and that it was going to be a disaster. Shortage and urgency are the oldest snake oil tricks in the book.
“Step Right Up” lyrics
Tom Waits
Step right up, step right up, step right up,
Everyone’s a winner, bargains galore
That’s right, you too can be the proud owner
Of the quality goes in before the name goes on
One-tenth of a dollar, one-tenth of a dollar, we got service after sales
You need perfume? we got perfume, how ’bout an engagement ring?
Something for the little lady, something for the little lady,
Something for the little lady, hmm
Three for a dollar
We got a year-end clearance, we got a white sale
And a smoke-damaged furniture, you can drive it away today
Act now, act now, and receive as our gift, our gift to you
They come in all colors, one size fits all
No muss, no fuss, no spills, you’re tired of kitchen drudgery
Everything must go, going out of business, going out of business
Going out of business sale
Fifty percent off original retail price, skip the middle man
Don’t settle for less
How do we do it? how do we do it? volume, volume, turn up the volume
Now you’ve heard it advertised, don’t hesitate
Don’t be caught with your drawers down,
Don’t be caught with your drawers down
You can step right up, step right up
That’s right, it filets, it chops, it dices, slices,
Never stops, lasts a lifetime, mows your lawn
And it mows your lawn and it picks up the kids from school
It gets rid of unwanted facial hair, it gets rid of embarrassing age spots,
It delivers a pizza, and it lengthens, and it strengthens
And it finds that slipper that’s been at large
under the chaise lounge for several weeks
And it plays a mean Rhythm Master,
It makes excuses for unwanted lipstick on your collar
And it’s only a dollar, step right up, it’s only a dollar, step right up
‘Cause it forges your signature
If not completely satisfied, mail back unused portion of product
For complete refund of price of purchase
Step right up
Please allow thirty days for delivery, don’t be fooled by cheap imitations
You can live in it, live in it, laugh in it, love in it
Swim in it, sleep in it,
Live in it, swim in it, laugh in it, love in it
Removes embarrassing stains from contour sheets, that’s right
And it entertains visiting relatives, it turns a sandwich into a banquet
Tired of being the life of the party?
Change your shorts, change your life, change your life
Change into a nine-year-old Hindu boy, get rid of your wife,
And it walks your dog, and it doubles on sax
Doubles on sax, you can jump back Jack, see you later alligator
See you later alligator
And it steals your car
It gets rid of your gambling debts, it quits smoking
It’s a friend, and it’s a companion,
And it’s the only product you will ever need
Follow these easy assembly instructions it never needs ironing
Well it takes weights off hips, bust, thighs, chin, midriff,
Gives you dandruff, and it finds you a job, it is a job
And it strips the phone company free take ten for five exchange,
And it gives you denture breath
And you know it’s a friend, and it’s a companion
And it gets rid of your traveler’s checks
It’s new, it’s improved, it’s old-fashioned
Well it takes care of business, never needs winding,
Never needs winding, never needs winding
Gets rid of blackheads, the heartbreak of psoriasis,
Christ, you don’t know the meaning of heartbreak, buddy,
C’mon, c’mon, c’mon, c’mon
‘Cause it’s effective, it’s defective, it creates household odors,
It disinfects, it sanitizes for your protection
It gives you an erection, it wins the election
Why put up with painful corns any longer?
It’s a redeemable coupon, no obligation, no salesman will visit your home
We got a jackpot, jackpot, jackpot, prizes, prizes, prizes, all work guaranteed
How do we do it, how do we do it, how do we do it, how do we do it
We need your business, we’re going out of business
We’ll give you the business
Get on the business end of our going-out-of-business sale
Receive our free brochure, free brochure
Read the easy-to-follow assembly instructions, batteries not included
Send before midnight tomorrow, terms available,
Step right up, step right up, step right up
You got it buddy: the large print giveth, and the small print taketh away
https://www.azlyrics.com/lyrics/tomwaits/steprightup.html
https://www.youtube.com/watch?v=-SFFRaIUisY
Now that there are some lyrics!
And then finally, when there’s noth’n left…and you can’t borrow another buck from the bank or buy another case of booze….you bust the joint out…………………………………..you light a match.
https://www.youtube.com/watch?v=ZPtjyqgZAUk
It feels like we’re almost there, doesn’t it?
Real Estate Industrial Complex (REIC, not REIT)
Behold, Yellen bucks go to money heaven:
‘For a glimpse of where Lavasa may be heading, look to Aamby Valley, another affluent township outside Mumbai turned ghost town built by a separate developer. That $5.5 billion township is facing liquidation after its backer defaulted. ‘There are just too many distressed sellers and not enough buyers in this market.’
The waste of natural resources is despicable. Greed has ruined the world.
Correction: Greed unchecked has ruined the world.
There always has been and always will be greed. Lots of it. It’s why greed is seen as a sin.
What’s different is that greed is being encouraged, especially fiscally. Take away the punchbowl and society becomes much less capable of indulging.
If we lived in a capitalist society, greed would be kept in check.
But we do not live in a capitalist society, so it isn’t.
‘The market has weakened so much that rentals in some areas are down more than 30% year on year. This is particularly true for Cape Town, where buy-to-let owners have been forced to either lower their asking rentals or face the prospect of sitting with empty properties…Rea says many landlords who were letting their units on a short-term basis through Airbnb have found that the returns don’t justify the time and effort involved. In addition, increased competition in the Airbnb market has placed pressure on rates. ‘Many [landlords] have returned to long-term letting, which has flooded the rental market as a result’
You’ve been disrupted. Enjoy the silicon valley snake oil.
They had a bubble in South Africa, where the ANC is threatening to confiscate property from people based solely on the color of their skin?
I can guess you can have a bubble anywhere. Cape Town is rationing water and has cut consumption by half, pushing “Day Zero”, the day water taps go dry, to sometime in 2019.
They’re right on an inexhaustible body of water. Build a desalination plant and STFU.
The problems occurring in South Africa today don’t have anything to do with water availability. Detroit was once called the Paris of the West and Rhodesia was considered the breadbasket of the African continent, things change.
https://www.zerohedge.com/news/2018-06-15/hitler-south-africa-tells-white-people-he-wont-kill-themyet
Besides, clean, pressurized, potable water is the white mans technology and why would any self-respecting African want to appropriate the white devil’s ju-ju?
Build a desalination plant and STFU.
You’re expecting the ANC to do that? They can only keep the lights on because Boers and Afrikaners are tasked with that job.
Realtors are liars.
…. and every closing a crime scene.
‘Bagrie said investors who had previously looked for capital gains would not get them, but yields - the measure of rent compared to purchase price - were not high enough for investors who wanted properties for income. ‘There will be a new wave of buyers who are more yield-based investors but at the moment the numbers don’t stack up, it’s a Mexican stand-off.’
Hold on here Cameron. Are you saying these new investors will actually want something that makes a profit? Because that’s going to mean defaults and “mortgagee sales” as you say down there. That’s the only way the “numbers stack up.”
Speaking of numbers that don’t stack up…
4-plexes in Portland shouldn’t cost $1.4M. That exceeds Southern California pricing I’ve seen. This place would’ve been about $350K in the early 2000s. Estimated mortgage = $7844/month. Yeah, good luck with that. “But it had a $62K price reduction!”
https://www.zillow.com/homes/for_sale/Portland-OR/apartment_duplex_type/53837864_zpid/13373_rid/1_pnd/priced_sort/45.705939,-122.440224,45.380848,-122.90989_rect/10_zm/
Oh dear…
Net Income Actual $73793
https://www.teamzebrowski.com/homes/3932-N-Albina-Ave/Portland/OR/97227/82285332/
That’s not even a “4 plex” in the historical sense. It’s a converted SFR.
‘ ‘We have seen a very artificial thing happen with the central banks pulling interest rates down - I think the last time interest rates went that low was 500 years ago.’
I’ve read it was 5,000 years, but anyway…
‘It’s one big experiment. I think people are in unchartered waters. A lot of people who kept missing out at auctions thought their affordability was still ok because of lower interest rates.’
We’ve got a few of those around here.
‘The debt has increased dramatically’
This big experiment, boy was it unprecedented! Bernanke said so himself each time he unprecedented it again. Now we all get to hang on and see what happens. It could be a complete disaster, no one knows! Gosh, isn’t central banking fun?
Everything is a lie. Everything.
But then that means your statement is a lie, which means nothing is a lie, which means . . . whoa. Dont do the brown acid kids, its a bummer maaaaan!
‘We just came from a few years of record everything—record sales, record prices, record time on the market,’ said Vancouver-based agent Leo Wilk. ‘That was from about 2015 to honestly about four weeks ago. ‘Interest rates are up and banks are tightening up lending. That has slowed things down. Anytime you decrease buying power, buying decreases.’
Note to all you supply and demanders: if you want lower shack prices (and I know you really don’t) just stop the loan gravy - crater.
The thing is that Vancouver does not have a lot of industry/jobs. There is tv/movies as a low cost option vs LA. There are financial jobs (but few compared to Toronto), and it used to be HQ for the gold / natural resource companies (but they have started moving out because of the low cost).
If the China $ stops coming in, and real estated industry crashes - they are in a huge world of hurt
Does it really matter where the borrowed money is sourced?
Not really.
sorry i think it does.
If the FAD drops, there is not something intricately based in Vancouver to help cushion the blow.
I also think it does matter where and how it was borrowed.
If it’s non recourse, they can walk away.
In most of the world loans ARE full recourse, see the post below about the British show “can’t pay we’ll take it away”, where lenders confiscate everything you have if you default.
Remember the FB’s who kept the Suburbans paid fir with HELOCs after losing the house during the previous bust? That doesn’t happen in other countries.
Given the rules in other countries, it amazes me that anyone would get into a major debt.
They’re already in a world of hurt. No additives needed.
CR8ER.
https://www.coinbase.com/charts
Crypto HODLers are so butthurt! And it’s a very long way from here down to $0. Many more Yellen bux will meet an untimely end before it’s over.
I just got this email:
Point Dume - Malibu’s hottest neighborhood - Open Sunday
28873 SELFRIDGE DR, MALIBU | $5,495,000
Just Reduced
I looked it up:
https://www.zillow.com/homedetails/28873-Selfridge-Dr-Malibu-CA–265/20555770_zpid/
$5,495,000
Price cut: -$403,000 (6/19)
Price History
Date Event Price
06/19/18 Price change $5,495,000-6.8%
02/19/18 Listed for sale $5,898,000+90.3%
08/17/15 Sold $3,100,000-4.6%
05/12/15 Price change $3,250,000+0.3%
04/02/15 Price change $3,240,000-6.1%
09/04/13 Listing removed $3,450,000
04/27/13 Listed for sale $3,450,000+65.2%
06/07/11 Sold $2,088,500-12.8%
05/06/11 Price change $2,395,000-7.7%
04/06/11 Listed for sale $2,595,000
01/08/11 Listing removed $2,595,000
10/20/10 Listed for sale $2,595,000+9.7%
07/29/08 Sold $2,365,000+211%
06/29/98 Sold $761,000
05/29/98 Sold $761,000+181%
02/23/94 Sold $270,969
I’m not sure if there has been any work done on the property, but the 2015 purchaser who paid $3,100,000 is the bagholder on this one. That’s over $1,000,000 above the 2011 price. Asking $5.5 million? Pffft - this person is going to get crucified.
The current owner paid 3M 3 years ago. Will they get that much for it?
Doubtful considering it can be built for $200k.
Lol okay.
Then you should build a few and sell them for a killer profit.
“Point Dume - Malibu’s hottest neighborhood”
Sold for $270,969 in 1994. Add $300k for the remodeling and I’ll bid $570k ….because it’s Malibu.
https://en.wikipedia.org/wiki/Point_Dume
‘Point Dume was named by George Vancouver in 1793 in honor of Padre Francisco Dumetz of Mission San Buenaventura.[2] The name was misspelled on Vancouver’s map as “Dume” and was never corrected.[3] In the early 1980s, real estate development interests began pronouncing the name “du-MAY” and spelling it “Dumé”; this did not catch on.’
Farking UHS. It’s Point DOOM!
The Zestimate is $6M+.
Who even looks at “Zestimates?” They’re so fake.
Zinflated
This listing was the subject of a post recently. I believe it was a realtor who bought it for $1.27M in Jan of 2018, and then listed it for $998k in May for an apparent $270k loss.
It closed in June for $1.25M. Still a loss for the seller, but not quite the $270k as was suggested.
https://www.redfin.com/CA/San-Mateo/1527-Noe-Ave-94401/home/1348897
There’s a whole bunch of fraud and crime going on with that one. But then again it’s California.
It’s not surprising a REALTWHORE would pull some shenanigans to offload an albatross purchased on a whim, with minimal losses. The real question is: who was the straw buyer?
I saw this headline from New York:
‘Airbnb questions hotel union’s campaign contributions to City Council members. The home-sharing firm’s public relations campaign includes a report and TV ads against the proposed legislation.’
Jeebus knows that a legal industry can’t be allowed to lobby against an illegal one.
The AirBnB arrangement that I like is the homeowner who is renting out an unused bedroom. The ones that irk me are the hotelification of an apartment, house, or an entire neighborhood.
Cities that have passed laws restricting short-term rentals should be able to opt to eliminate any illegal posts directly on AirBnB’s platform such that they don’t even appear.
Yesterday’s thread had an article about everyone in Portland getting hit with AirBnB fees, even that “divorced single woman” who was renting out a room in her house. Why didn’t she just get a roomie? Sure, she can charge more per night with airbnb, but she would need to have a guest almost every single night. (heh, maybe that’s what this divorced single woman wants.)
“The AirBnB arrangement that I like is the homeowner who is renting out an unused bedroom.”
Oh, yeah, that’s really safe, especially if the FB has young daughters. Can you say “sketchy?”
Numerous murders that have occurred at AirBnB’s. One of first stories is about a “guest” that was found bloody and dead, face down in a chocolate cake.
https://duckduckgo.com/?q=airbnb+murders&t=osx&ia=web
People can decide what works for them or not. I personally would not AirBnB an empty room while I have a young child. But I know a retired couple that has a basement apartment with a separate entrance and they rent it out all the time. As for the safety issue, you can find those crazy stories like that all the time. But guess what, people also die by murders all the time in, you know, just regular old houses, apartments, condos. There are millions of people booking a listing on AirBnB every night without incident.
“There are millions of people booking a listing on AirBnB every night without incident”.
Tell that to the guy with his face buried in the chocolate cake.
Maybe he was Arkancided.
https://latest.13d.com/boom-global-megacities-bust-contagion-economy-real-estate-30d0951e21bc
‘A pattern of weakness is becoming apparent in megacity housing markets around the world. By the end of May, home prices in Sydney had fallen 4.7% year-over-year. In Toronto, the average price of a single family home had fallen 13% since the market’s peak in April of last year. Meanwhile, in February, London saw its first annual decrease in prices in more than eight years, which accelerated in March and April. And in the first quarter of this year, Manhattan saw the median price-per-square foot fall 18% year-over-year.’
‘A recent report by the IMF sounds a troubling alarm: “a simultaneous decline in house prices across the globe could lead financial and macroeconomic instability.”
‘The IMF’s argument is intuitive. Accommodative monetary policy following the Global Financial Crisis drove an unprecedented flood of institutional and individual investor capital into real estate, with cross-border flows concentrating in cosmopolitan megacities. This has dramatically divorced megacity property-appreciation rates from economic fundamentals — primarily the spending power of residents.’
Parts of London have been swirling the bowl for at least a couple of years and the same with Manhattan. What about Miami Beach? What about Cape Town, Oslo, Auckland, Melbourne, Vancouver, Dubai, Lagos, Kuala Lumpur, and Phnom Penh?
Regarding London swirling the bowl… If you get bored on one of your trips there’s a great British show on Youtube called ‘can’t pay we’ll take it away’ that follows high court debt collectors around London. They are able to walk into someones home and start taking things. What is most interesting is looking at the various neighborhoods there and seeing how much diversity they have imported. Frankly, most of the place looks like a slum. It’s great irritainment.
What is most interesting is looking at the various neighborhoods there and seeing how much diversity they have imported.
Oh yes. The Free Sh!t Army living in the same nabes as high wage earners in their million pound plus townhomes.
I also noticed the the council (welfare) housing flats’ parking lots are full of pricey cars. The amount of fraud is mind staggering.
“I also noticed the the council (welfare) housing flats’ parking lots are full of pricey cars.”
Ditto for the projects here… auto-bling.
“Oh yes. The Free Sh!t Army living in the same nabes as high wage earners in their million pound plus townhomes.
I also noticed the the council (welfare) housing flats’ parking lots are full of pricey cars. The amount of fraud is mind staggering.”
LOL - it sounds like California, Portland, Seattle.
London - why bother?
LOL - it sounds like California, Portland, Seattle.
It’s far worse. I was utterly blown away with what I saw in London. The Free Sh!t Army and the managerial class literally live across the street from each other.
“It’s far worse. I was utterly blown away with what I saw in London. The Free Sh!t Army and the managerial class literally live across the street from each other.”
Stanley Kubrick’s, “A Clockwork Orange” (1971) was prescient regarding the UK’s socialist imagination.
“The Funeral of Queen Mary Extended-Clockwork Orange HQ”
https://www.youtube.com/watch?v=KfEx4ZII-Os
OMG - this show is BRUTAL.
You got to watch this.
“OMG - this show is BRUTAL.”
+1 Bend the knee lymies! LMFAO
thanks a lot ipfreely
I spent 4 hours yesterday watching instead of doing something constructive.
Some of the people are clearly hard luck cased, some are folks are small business (car repair, resturants etc).
But so many seemed out of it or unlucky. What amazes me is how entitled these folks seemed.
I thought that the folks that get free housing in Seattle are bad …. but wow
“A pattern of weakness is becoming apparent in megacity housing markets around the world.”
The big cities are going to get clobbered, but the far flung towns with few jobs where prices were run up are going to get absolutely crucified.
Promise?
No prediction is more accurate than one whose occurrence is already underway, although unbeknownst to many.
‘A report by the Tempe Police Department said the driver, Rafaela Vasquez, repeatedly looked down and not at the road, glancing up a half second before the car hit Elaine Herzberg, 49, who was crossing the street at night. The report said police concluded the crash, which has dealt Uber Technologies Inc a major setback in its efforts to develop self-driving cars, would have been “entirely avoidable” if Vasquez had been paying attention.’
‘Vasquez could face charges of vehicular manslaughter, according to the report, which was released late on Thursday in response to a public records request. Vasquez looked up just 0.5 seconds before the crash, after keeping her head down for 5.3 seconds, the Tempe police report said. Uber’s self-driving Volvo SUV was traveling at just under 44 miles (71 km) per hour.’
‘The report found that Vasquez “was distracted and looking down” for close to seven of the nearly 22 minutes prior to the collision.’
‘According to a report last month by the National Transportation Safety Board, which is also investigating the crash, Vasquez told federal investigators she had been monitoring the self-driving interface in the car and that neither her personal nor business phones were in use until after the crash. That report showed Uber had disabled the emergency braking system in the Volvo, and Vasquez began braking less than a second after hitting Herzberg.’
‘Uber shuttered its autonomous car testing program in Arizona after the incident, and says it plans to begin testing elsewhere this summer, although in some cities it will have to first win over increasingly wary regulators.’
https://www.reuters.com/article/us-uber-selfdriving-crash/uber-driver-was-streaming-hulu-show-just-before-self-driving-car-crash-police-report-idUSKBN1JI0LB
I don’t know if she can be called the driver if she was watching TV.
Cellphone zombies behind the wheel are a lethal threat to pedestrians and bikers. She should lose her driving privileges for life.
Just prohibit self-driving cars on public roadways. Problem solved.
‘…the crash, which has dealt Uber Technologies Inc a major setback in its efforts to develop self-driving cars, would have been “entirely avoidable” if Vasquez had been paying attention.’
This perfectly illustrates one of the main problems with self-driving cars, which is that many people will buy into the hype and let their guard down, due to mistakenly assuming the robotic drivers are as reliable as a human driver.
Apparently this is not the case.
Self driving cars make for cool demos. But they aren’t ready for prime time, and there’s no telling when, or if ever, they will be.
What scares me are the people who are watching videos, texting, and Hulu on their phones now and who are not in self-driving cars.
Sarasota, FL 34231 Housing Prices Crater 7% YOY As Fraud Permeates Housing Market
https://www.zillow.com/sarasota-fl-34231/home-values/
*Select price from dropdown menu on first chart
Bitcoin!
It’s time to dig deep into all that home equity that is just sittin’ there doin’ nuthin’, it’s time to extract all the equity that you possibly can and …
… and BUY THE DIP!
https://www.coindesk.com/price/
$127 million Yellen Bux screamed out their last as a pair of grotesquely overpriced town houses were exchanged for all-time insane prices even in debauched currency.
To paraphrase Forrest Gump, sometimes there just aren’t enough central banker zeros and ones to throw at overpriced shacks in speculative housing bubbles.
http://www.scmp.com/business/article/2152093/twin-repulse-bay-town-houses-fetch-us12746-million-snatching-price-record
More extend and pretend in the EU, as Greece gets a “final” 15 billion GBP “loan” so it can keep servicing its (unpayable) debts, of course with an extended grace period - you know, to give them more time to come up with the money, which they surely intend to do. In return, Greece promised further “reforms” and, of course, more austerity for the proles.
https://www.bbc.com/news/business-44573548?intlink_from_url=https://www.bbc.com/news/topics/c40rjmqdqrlt/greece&link_location=live-reporting-story
An idea for our friends in Greece:
The people screamed loudly as the whip came down,
His blood shined brightly on the foreclosed acre,
Slowly the moneylender sinks into the troubled ground,
And another meritless parasite meets his maker.
Amen.
If you want to have a good time while visiting Greece bring some peanut butter and jelly.
“More extend and pretend in the EU, as Greece gets a “final” 15 billion GBP “loan” so it can keep servicing its (unpayable) debts…”
Another bailout of London’s Finance Industry courtesy of the Queen’s subjects.
Draghi and Merkel know that the minute any of the PIIGS defaults on its unpayable debts, it’s game over for the ECB and EU financial systems. If creditors try to collect on the credit default swaps they bought as insurance, that would start a chain-reaction meltdown of the countless trillions of derivatives that were never meant to be paid out. DB along had more than 75 TRILLION in notional derivatives exposure at last count - more than could possibly be covered in the event of another systematic financial crisis and cascading defaults.
Endless “extend and pretend” is a lot cheaper, and defers the financial reckoning day until Draghi, et al run out of road to kick the can. Then they better hope their financier pals save room for them on their Gulfstreams as they flee the pitchforks and torches to some offshore hidey-hole.
Too-big-to-fail is the driving force in ECB policy.
“If you [Greece] owe the bank $100, that’s your [Greece's] problem. If you [Greece] owe the bank $100 million, that’s the bank’s [Germany and France's] problem.” - J. Paul Getty
$512B in fictitious valuation was wiped off Chinese markets this week…that’s going to leave a mark.
When the contagion spreads to other Ponzi markets and asset bubbles, this is going to be popcorn-worthy.
http://www.scmp.com/business/china-business/article/2151996/china-stocks-verge-bear-market-after-week-saw-us514-billion
How does that compare to Bitcoin losses so far? Lotta Yellen bux finding their way to money heaven as of late.
Americans devoting the biggest share of their income to their mortgages since 2009. Heckova job, Ben & Janet.
https://www.bloombergquint.com/business/2018/06/21/americans-devote-biggest-share-of-income-to-mortgages-since-2009
Increasingly unaffordable rents and wealth inequality - even the lefties are getting their panties in a twist over the housing bubble, though they strenuously avoid any accurate discussion of the villains responsible for creating it.
https://www.huffingtonpost.com/entry/housing-crisis-inequality-harvard-report_us_5b27c1f1e4b056b2263c621e
The schlonging has begun in earnest for Canadian FBs.
https://wolfstreet.com/2018/06/22/mind-the-directional-shift-in-the-housing-bubble-in-bc-canada/
If Yellen hadn’t assured us the Fed sees no bubbles, I swear I’d be seeing them everywhere.
https://www.zerohedge.com/news/2018-06-21/897-square-feet-palo-alto-bungalow-listed-26-million
Thirty Years On, How Well Do Global Warming Predictions Stand Up?
The short answer, is not all that well.
(snip)
“In 2007, Hansen stated that most of Greenland’s ice would soon melt, raising sea levels 23 feet over the next 100 years. Subsequent research published in Nature magazine demonstrated this to be impossible.”
Well, what a surprise! It’s too bad so many “denier’s” careers were trashed over the years due to thdir challenges to this nonsense.
All of this made possible by a totally dumbed-down population of ignorant pukes.
https://wattsupwiththat.com/2018/06/22/thirty-years-on-how-well-do-global-warming-predictions-stand-up/
What a surprise: the polar latitudes are still fawking cold!
National spotlight falls on Connecticut’s transgender athlete debate
Sean Patrick Bowley
June 22, 2018
When Bulkeley’s Terry Miller and Cromwell’s Andraya Yearwood finished 1-2 in the girls’ 100-meter dash at the CIAC State Open championship earlier this month, a story that had been a statewide issue suddenly exploded into the national consciousness.
The two 16-year olds are transgender athletes who had just recently begun the physical transition from male to female.
https://www.gametimect.com/national-spotlight-falls-on-connecticuts-transgender-athlete-debate/
Protesters descend on Kirstjen Nielsen’s home: ‘No justice, no sleep’
By Jessica Chasmar - The Washington Times - Friday, June 22, 2018
A group of protesters gathered outside Homeland Security Secretary Kirstjen Nielsen’s Virginia townhouse Friday morning, chanting “no justice, no sleep” and blaring audio of immigrant children crying.
https://www.washingtontimes.com/news/2018/jun/22/protesters-descend-kirstjen-nielsens-home-no-justi/
She should get an air horn, use it, and blow out their eardrums.
Funny how 20-30 years of immigrant children crying (and putting them in cages a decade ago) was perfectly acceptable until the past few weeks.
Soros, Clinton, Mueller, Merkel, Bush and their merry band of globalists must be really peeved. And scared to death.
Whatever it takes to divert attention away from the FBI and DOJ fiasco. Right? Right. Even if that diversion means protesting against the very things that you instilled in the first place.
How many FBI agents like Sally Moyer were in the mob? With creatures like these entrusted to uphold the rule of law, it’s no wonder we’re devolving into a banana republic.
http://www.dailymail.co.uk/news/article-5875505/FBI-agent-Sally-Moyer-seen-time-identity-revealed.html
‘I can tell you in no way did my political or what I understand of [Agent 1], no political anything is going to interfere with us doing our job as professionals,’ Moyer told the inspector general.
Um, yeah. This helps explain why despite Crooked Hillary’s 30 years of scandals, sleaze, influence peddling, and sending highly classified information over a non-secure private server, Screech and her ilk can break the law with complete impunity.
Rules are for the little people.
They “sound like” a public nuisance. Haul ‘em away.
I’m unaware of any instance where Trump supporters or conservatives for that matter ever engaged in such harassment of any Obama officials at their homes or while encountering them in public, nor do I know of anyone on the right who would ever condone such vile behavior. It’s a sad statement on how uncivil and bullying “progressives” have become toward anyone who doesn’t adhere to their ideological line.
This problem seems easily solved: call the police on people, of whatever political stripe, who disturb the peace and harass public officials.
“How many FBI agents like Sally Moyer were in the mob?”
They should all be grateful this FBI agent wasn’t there.
FBI agent accidentally shoots man while dancing
Published on Jun 3, 2018
https://www.youtube.com/watch?v=DdWfRIlYfjg
“How many FBI agents like Sally Moyer”
How is that whole thing not bigger than Watergate?
Littleton, CO Housing Prices Crater 26% YOY As Housing Inventory Floods Denver Area
https://www.movoto.com/littleton-co/market-trends/
Great news: The U.S. is winning the trade war!
The Trader
Dow Drops 2%, but U.S. Is Winning the Trade War
Photo: Getty Images
By Ben Levisohn
June 23, 2018
Vital Signs
Is this what winning looks like?
Sure, the Dow Jones Industrial Average dropped 509.59 points, or 2%, to 24,580.89 last week as concerns about an escalation in trade tensions helped sink the market. The S&P 500 fell 0.9%, to 2754.88, and the Nasdaq Composite declined 0.7%, to 7692.82, to end a four-week winning streak.
…
‘IT’S A HUMAN RIGHT’: MEXICAN PRESIDENTIAL CANDIDATE ON MASS EXODUS TO AMERICA
5:45 PM 06/22/2018
Dominic Mancini
Mexican presidential candidate Andrés Manuel López Obrador (AMLO) called for mass immigration to the United States during a speech Tuesday declaring it a “human right” for all North Americans.
“And soon, very soon — after the victory of our movement — we will defend all the migrants in the American continent and all the migrants in the world,” Obrador said, adding that immigrants “must leave their towns and find a life in the United States.”
http://dailycaller.com/2018/06/22/mexican-candidate-immigration-speech/
It seems bizarre for a political leader to encourage his citizens to leave the country.
Not if they’re the kind of citizens that are a liability or undesirable.
Hong Kong developers are rushing to sell empty (read: unsold) flats before a new vacancy tax kicks in. That should help the.comps.
http://www.scmp.com/property/hong-kong-china/article/2151701/hong-kong-developers-rush-sell-empty-flats-ahead-new
China’s central planners are losing control as the defaults start coming fast and furious.
https://www.bloombergquint.com/china/2018/06/22/china-moves-to-quell-systemic-bond-risks-after-wave-of-defaults
A liquidity crunch and rising defaults among levered-up Chinese developers. Oh dear…we’ve seen this movie before and know how it ends.
https://www.bloombergquint.com/global-economics/2018/06/21/china-s-property-market-seen-most-at-risk-as-cash-squeeze-hits
A short but excellent video …
https://youtu.be/bEcdGK4DQSg
This Deal Shows How the Junk-Credit Market is Still Irrationally Exuberant
(snip)
(Leveraged loans – they’re called that because they’re extended to junk-rated and highly leveraged companies, such as Asurion – are too risky for the banks to keep on their books. So banks sell them to loan mutual funds, or slice-and-dice them into structured Collateralized Loan Obligations (CLOs) and sell them to institutional investors. The banks get the fees but slough off the risk to mutual funds and other sitting ducks.
… other sitting ducks.
😁
https://wolfstreet.com/2018/06/22/this-is-proof-the-junk-credit-market-is-still-irrationally-exuberant/