June 25, 2018

Inflated By Government Schemes And Taxpayers’ Money

A report from the North Shore News in Canada. “Sales in the top end of the North Shore real estate market are continuing to fall and prices are beginning to edge downward. The most recent statistics from the Greater Vancouver Real Estate Board point to a continuing slump in the housing market from its frenzied peak two years ago. Sales of single-family homes to the end of May were down 77 per cent in West Vancouver from the peak of the market in 2016, said Brent Eilers, a West Vancouver real estate agent with over 35 years’ experience. In North Vancouver, sales are down about 54 per cent over that two-year time frame.”

“An average West Vancouver selling price of $3.8 million at the peak of the market is now down to about $3.2 million, said Eilers. In the highest end of the luxury market, that change is even more pronounced. ‘If you talk to people who have homes worth over $4 million . . . they’re down a ton,’ said Eilers.”

The Financial Mail on the UK. “Britain’s ten biggest builders have seen the value of their shares drop by a combined £3.6 billion in the last two weeks as fears grow that the housing market is heading for a downturn. Vince Cable, the Liberal Democrat leader, said: ‘Housebuilding bosses seem to have secured excessive pay and bonus packages just before a downturn in the market – housebuyers will be furious. Shareholders will also be left wondering why these executives should be able to award themselves such obscene packages after claiming credit for a market that has been inflated by Government schemes and taxpayers’ money.’”

From The National on Dubai. “Whether it’s driving a hard bargain with your landlord or looking for a new place, prices are dropping across the board. A flood of new properties in existing suburbs and desert communities has also helped. ‘The handing over of new properties to the market has caused an oversupply of stock in Dubai, this in turn has driven the rental prices down in 2018,’ says property agent Tony McMahon from HMS Homes. All of the apartments and villas below have seen substantial drops in the asking price.”

From the South Africa Times. “Namibia’s housing market seems to be correcting itself, as prices, especially in the upper tiers, are dropping sharply. This comes after a decade during which Namibia’s property prices shot through the roof to be among the highest in the world. Sam Mwando, a lecturer in the department of land and property sciences at the Namibia University of Science and Technology, questioned then whether the latest ‘catchphrase’ in advertisements ‘selling under valuation’ meant that there had been an oversupply of overpriced properties on the market by developers. ‘Residential prices are bound to drop if the supply of property in the long-term outstrips effective demand. When that happens, then the housing bubble bursts,’ he said.”

From the South African. “Residential sales experts have noted a decrease in average gross yields for realtors, the first downward trend of its kind in seven years. Property specialists believe this is due to an oversupply of overpriced properties within the City Bowl and Atlantic Seaboard. Property sector strategist at FNB Home Finance, John Loos, explains that after outperforming the rest of South Africa for ten years, the City Bowl’s freehold property market has taken a hit: ‘A correction was expected to happen. The Atlantic Seaboard and City Bowl showed a combined growth of over 111% the past five years, which is simply exceptional.’”

The Hindu Business Line on India. “Excess leverage for land accumulation, combined with lack of sales, has taken the debt levels of real estate developers to more than ₹4 lakh crore as of December-end 2017. As developers are unable to service debt, industry experts believe a repayment crisis could be looming large. Moreover, there is a supply glut with unsold inventory levels as high as almost four years. ‘I don’t see any reason for a mid-size or small developer to differentiate and emerge a winner. They should join hands with some private individuals and recapitalise or else a stage will come when lenders will have to take a haircut, which has already started happening,’ said Amit Bhagat, CEO, ASK Property Investment Advisors.”

From Bloomberg on China. “Real estate is the driver of the Chinese economy. By some estimates, it accounts (directly and indirectly) for as much as 30 per cent of gross domestic product. Keeping housing prices buoyant and development robust is thus an overriding imperative for China - one that is distorting policymaking and worsening its other economic imbalances.”

“Despite reforms in recent years, there’s little question that Chinese real estate is in bubble territory. From June 2015 through the end of last year, the 100 City Price Index, published by SouFun Holdings, rose 31 per cent to nearly US$202 per square foot. That’s 38 per cent higher than the median price per square foot in the United States, where per-capita income is more than 700 per cent higher than in China. Worried about these prices, and about growing indebtedness among developers, China’s State Council has hatched a plan to encourage rentals.”

“This is a thoroughly misguided way to address the problem. For one thing, rental yields in China are extremely low. In big cities, such as Beijing and Shanghai, yields are hovering around 1.5 per cent (compared to an average of about 3 per cent in the US and 4 per cent in Canada). Wages in China simply aren’t high enough to keep up with the credit fuelled rise in asset prices, and thus developers can’t earn a reasonable rate of return by renting out units. A tax break won’t fix that.”

“Worse, developers are heavily weighted down with debt, much of it short-term. Many are paying out 7 to 8 per cent bond yields, with debt-to-equity ratios of around 380 per cent. Encouraging them to rent out their housing surplus thus drives a money-losing trade: Developers rent to consumers to make a 1.5 per cent yield, while paying a combined debt-and-equity cost of capital of almost 10 per cent.”

“That 8.5 per cent negative yield multiplied by millions of units amounts to an enormous subsidy for renters, but it significantly worsens developers’ debt problems. Actively encouraging this is not exactly standard economics.”

The New Zealand Herald. “We are now well along the downward track on the real estate cycle; and if you can predict when the upturn will start, you can probably predict when interest rates will rise too. Over at Westpac, economists write: ‘In Auckland, house prices are now falling gradually on a monthly basis, are down 2 per cent since February. Average prices in the region are now back at August 2016 levels.’”

From Domain News in Australia. “Mortgage-reliant buyers struggling to get finance ratcheted up the pressure on housing prices in Sydney’s budget and mid-priced suburbs at the weekend. On Saturday, Jon Snead of The Agency-North, passed in a two-bedroom apartment at 11/52-54 Pitt Street, Redfern. The property received no genuine offers despite its sub-$1.2 million guide price. Mr Snead said several buyers who turned out to look at the flat had said they needed to get their finance sorted. ‘What’s stopping people from buying is a bit of greed from vendors who say, ‘I’m not selling for less than this,’ he said.”

“Dragging down the citywide clearance rate have been suburbs such as Cabramatta with a five-month auction success rate of just 25 per cent, Liverpool (28.1 cent), Brighton-le-sand (34.4 per cent) and Pennant Hills (36 per cent). On Saturday, a large number of properties – 74 homes – were withdrawn from their scheduled auction sale.”

From MarketWatch. “It’s hard to argue there are deep divisions between the so-called red and blue states in the U.S., but one thing seems to be bringing the country together: sky-high real-estate prices. While voters often tell pollsters they want to move to places with like-minded neighbors, home economics is starting to trump politics. ‘The way you depolarize the country isn’t with political rhetoric. It’s with a moving van,’ said Redfin CEO Glenn Kelman, who lives in Seattle. ‘I know people who’ve never met someone who voted for Trump. (They are) imaginary creatures. Anyone we imagine, we can imagine a monster. But when you meet a conservative, or you meet a liberal, you immediately moderate your views.’”

“Most of the time — by a ratio of nearly 8 to 1 — a blue-stater moved into a red state rather than the other way around during the past 12 months, Redfin said. ‘When I go to Texas or other parts of country known as conservative, there’s a real feeling that’s going to change. Nevada, Arizona, Texas, those are solid red states. Those states all (are experiencing) massive amounts of migration,’ he said. ‘San Francisco thought it had a monopoly on enlightenment and diversity, but that attitude is beginning to seem quaint. (Places like San Francisco) are increasingly a ‘no-fly zone for people with families,’ he said. ‘With anyone who is director-level and below, the conversation is, ‘We can’t afford to live here.’”




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135 Comments »

Comment by Ben Jones
2018-06-25 08:02:14

‘Encouraging them to rent out their housing surplus thus drives a money-losing trade: Developers rent to consumers to make a 1.5 per cent yield, while paying a combined debt-and-equity cost of capital of almost 10 per cent.’

‘That 8.5 per cent negative yield multiplied by millions of units amounts to an enormous subsidy for renters, but it significantly worsens developers’ debt problems. Actively encouraging this is not exactly standard economics’

Smart as a whup, these Chinese.

Comment by Mafia Blocks
2018-06-25 09:43:29

China is a disaster. An unmitigated growing disaster.

“Venezuela’s Oil Sales To China Set To Plunge To 8-Year-Low”

https://oilprice.com/Latest-Energy-News/World-News/Venezuelas-Oil-Sales-To-China-Set-To-Plunge-To-8-Year-Low.html

Comment by brazendetre
2018-06-25 14:24:14

Thats part of why I’m still bullish on oil and bought a bit more lately. Opec is raising to cover the shortfall in Venezuela but that is only to keep the price stable IMO. Saudis want the price where it is to get a good chunk of $ with their IPO and Trump wants the domestic frackers to be healthy so I expect a steady price and producers recovering from the crash we had a couple years ago to the high 20s when I last added.

Comment by Mafia Blocks
2018-06-26 07:35:27

Yes I’m very bullish on lower oil prices.

“Oil Prices Are Falling Fast”

http://www.kpax.com/story/38290757/oil-prices-are-falling-fast-heres-why

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Comment by Albuquerquedan
2018-06-25 14:30:54

It is not a question of demand but supply. China cannot buy what is not available. Now if they have a full trade war with the US its demand will plunge.

Comment by brazendetre
2018-06-25 17:45:22

And they want to respond with tariffs on food from the US. Good luck with that. The stable genius won before the battle started.

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Comment by Albuquerquedan
2018-06-26 06:21:05

It is true unless he has the rug pulled from under him by the globalists. High food prices are one of the few things the Chinese rulers fear. Trying to reduce imports from the US will not cause a serious drop in world demand for US farm products. It will just shift around the sales.

 
 
 
 
 
Comment by Ben Jones
2018-06-25 08:12:09

‘Sales of single-family homes to the end of May were down 77 per cent in West Vancouver from the peak of the market in 2016, said Brent Eilers Vancouver, sales are down about 54 per cent over that two-year time frame.’

‘An average West Vancouver selling price of $3.8 million at the peak of the market is now down to about $3.2 million, said Eilers. In the highest end of the luxury market, that change is even more pronounced. ‘If you talk to people who have homes worth over $4 million . . . they’re down a ton’

Huh, if you read the Vancouver Sun or others, they’ll tell you “it’s to the moon Alice!” Maybe someone’s a lion?

‘In addition to perennial favourites “f#ck bob rennie” and/or “bob rennie asshole,” some of the more interesting search terms that drove traffic to this blog over the past year included the following:

“vancouver real estate rise in the early 70s and fraudulent real estate schemes”
“the worst one on the real housewives of vancouver”
“1960s cates park hippie faire north vancouver”
“what happen to vancouver its a shithole”
“douchebag hipster yoga bc resident”
“joel solomen douche”
“seymour pacific is f#cked”
“vancouver is f#cked”

A few of the comments posted to this blog in 2016: “That sums [up] the sh#thole pretty well in one picture.”

Comment by b for banker
2018-06-25 08:33:05

we always think - we are smart and would head to the hills when the downturn starts.

Comment by b for banker
2018-06-25 08:38:26

[incorrectly pressed the wrong button]

If i bought a house 20 years ago at say $400k, and some fool last year was offering me $4M ….

Unless i had really tight family circumstances to be in the neighbourhood, i would have hoped that i would have cashed in and put it is a safer, diversified investment.

Comment by oxide
2018-06-25 18:25:33

$4 million is enough to go full-bore Oil City. Buy and fix up a homestead for $200K, work half-time at Wal-Mart for walking money, and enjoy a farm life. Or, if you have a masters degree, take 18 quick education credits to qualify to teach in the schools. Or, just buy a small condo in a small town and sit on your butt.

Or be like Johnny and blow it on wine and cremation cannons. :roll:

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Comment by BlackSwandive
2018-06-25 18:59:26

$4m is more than just Oil City, you don’t need to work at all and can afford to just move around and live in rentals. There’s plenty of “walking money” available from just laddering CDs.

 
Comment by BlueSkye
2018-06-25 21:12:30

“$4 million is enough to go full-bore Oil City…work half-time at Wal-Mart for walking money…”

I wish you were joking.

 
 
 
 
 
Comment by Ben Jones
2018-06-25 08:14:28

‘As developers are unable to service debt, industry experts believe a repayment crisis could be looming large. Moreover, there is a supply glut with unsold inventory levels as high as almost four years. ‘I don’t see any reason for a mid-size or small developer to differentiate and emerge a winner. They should join hands with some private individuals and recapitalise or else a stage will come when lenders will have to take a haircut, which has already started happening,’ said Amit Bhagat’

Predicting is pretty useless IMO. Understanding what’s happening right now is much more important. I could be putting out half a dozen posts a day right now.

 
Comment by Professor 🐻
2018-06-25 08:14:30

Another day, another triple digits down on the Dow…

The machines warn of ‘significant’ downside risks facing the stock market
By Shawn Langlois
Published: June 25, 2018 8:09 a.m. ET
Crucial information for the U.S. trading day
Just ask the robots.

Blue chips on Friday managed to avoid their longest losing streak since 1978, putting an end to eight-straight down days with a triple-digit pop.

Everything’s fine, right?

Comment by Professor 🐻
2018-06-25 08:42:09

If you are trading the Dow, the trend ain’t your friend.

Dow tumbles 312 points, at risk of closing below 200-day moving average as trade-war fears spook
By Mark DeCambre
Published: June 25, 2018 10:14 a.m. ET

The Dow Jones Industrial Average was trading sharply lower early Monday and on track to finish below its closely watched long-term moving average, which could herald more pain for the blue-chip gauge. The Dow (DJIA, -1.63%) most recently, was down about 312 points, or 1.2%, at 24,261. If the Dow ends beneath 24,280.25, it’s 200-day moving average, it would represent the first slide below that level since early May and the Dow hasn’t close below its long–term trend line since the summer of 2016, according to FactSet data. Technical traders use moving averages to help gauge an asset’s long-term and short-term momentum.

 
Comment by Professor Bear
2018-06-25 08:49:19

It’s early Monday morning, and the Dow is already off by over 400 points. It could be a long week ahead for Wall Street traders!

Comment by hwy50ina49dodge
2018-06-25 09:48:19

“It could be a long week ahead for Wall $treet trader$!”

No worrie$, their bo$$es vacation locale$ have robu$t cell $ervice!

Comment by hwy50ina49dodge
2018-06-25 09:49:45

Typo mi$take: cell / $ell

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Comment by Albuquerquedan
2018-06-26 06:25:22

A very profitable weak for Wall Street “traders”. They love the rollercoaster. We are very likely to see over 3% growth this quarter. Slowly the overinflated stock market, inflated by Obama’s picks to the Federal Reserve, actually is getting justified by fundamentals.

 
 
Comment by Professor 🐻
2018-06-25 23:08:49

The stock market always goes down.

The Wall Street Journal
Markets
Trade Tit-for-Tat Takes Another Chunk Out of Asian Stocks
Asian markets declined Tuesday, on the heels of heightened trade tensions
By Mike Bird
June 25, 2018 10:48 p.m. ET

Asian stocks continued to decline almost across the board Tuesday, after heightened trade tensions hit U.S. equity markets again overnight. U.S. equity futures were flat during morning Asian trading.

Tuesday’s Big Theme

Trade, trade, trade. Asian markets were largely in the red, led by a 1.8% drop in the Shanghai Composite and a 1.5% fall for Hong Kong’s Hang Seng index. The tumble comes after a U.S. stocks selloff deepened Monday in response to news that the White House favors further restrictions on Chinese investment in…
To Read the Full Story
Subscribe

 
Comment by Professor 🐻
2018-06-26 06:26:56

Now that the stock market is doing badly and investors are terrified, would this be a good time to buy the dip?

 
 
Comment by Ben Jones
2018-06-25 08:16:08

‘San Francisco thought it had a monopoly on enlightenment and diversity’

Sometimes the jokes write themselves.

Comment by Apartment 401
2018-06-25 09:07:59

California is the most impoverished state in the country.

Comment by Mafia Blocks
2018-06-25 11:49:32

“Fannie Mae Issues Mortgage Fraud Alert For Southern California”

https://www.nationalmortgagenews.com/news/fannie-mae-issues-mortgage-fraud-alert-for-southern-california

PhoneyMae…. always a dollar short and a day late.

 
Comment by dandroidz
2018-06-25 14:01:08

And their ilk are emigrating to cheaper states and bringing their terrible ideals and policies. Make Red States Expensive and Taxed Again.

 
 
 
Comment by Mortgage Watch
2018-06-25 08:20:15

Washington DC 20010 Housing Prices Crater 10% YOY As Housing Sentiment Plummets

https://www.zillow.com/washington-dc-20010/home-values/

*Select price from dropdown menu on first chart

 
Comment by Ben Jones
2018-06-25 08:28:34

‘Britain’s ten biggest builders have seen the value of their shares drop by a combined £3.6 billion in the last two weeks as fears grow that the housing market is heading for a downturn’

Is £3.6 billion a lot? How many pesos is that?

Comment by b for banker
2018-06-25 08:34:32

be more specific :-) - Canadian, US, Mexican, Chinese or Australian pesos

Comment by Mafia Blocks
2018-06-25 08:37:36

Donkey Dollars

Comment by Albuquerquedan
2018-06-25 15:34:03

Are those ASSetts?

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Comment by OneAgainstMany
2018-06-25 08:34:25

Big Tech Isn’t The Problem With Homelessness, It’s All Of Us
Wired
By Adam Rogers
6-21-2018

“Yet on a single night in January of 2017, San Francisco had 6,858 homeless people. Santa Clara County, home of San Jose and a decent chunk of Silicon Valley, had 7,394. (Los Angeles County had 55,188.) California overall had 134,278 homeless people, half of them completely unsheltered, most of them in cities. That’s one quarter of all the homeless people in the US. San Francisco’s recent mayoral race turned, in part, on homelessness, and the governor’s race may, too. The city is turning into a Brechtian horror show where young men wearing Airpods and backpacks emblazoned with the names of gig-economy apps weave e-scooters among people passed out in their own filth.”

“That’s not even the most frustrating part. This is: Everyone who works on homelessness agrees on the way to fix the problem. Build more homes. Not coincidentally, more places for people to live would help alleviate all sorts of other problems, from climate change to income inequality. But the kinds of housing California needs are not the kinds that get built. The reasons amount to an obstacle course built from policy mistakes, economic vicissitudes, and prejudice. “This is not something like pancreatic cancer, where thousands of scientists are striving to find a solution for a really difficult problem that we literally don’t know what to do about,” says Margot Kushel, a professor of medicine at UCSF who studies homelessness. “We actually know what to do. We just lack the will.””

https://www.wired.com/story/big-tech-isnt-the-problem-with-homelessness-its-all-of-us/

Comment by Ben Jones
2018-06-25 09:01:52

‘weave e-scooters among people passed out in their own filth’

‘San Francisco thought it had a monopoly on enlightenment and diversity’

Ahem…

‘Everyone who works on homelessness agrees on the way to fix the problem. Build more homes.’

That’s your problem, oh enlightened one, “everyone” has their head up their a$$.

Comment by Albuquerquedan
2018-06-26 06:31:17

That’s your problem, oh enlightened one, “everyone” has their head up their a$$.

Yes, work is the number one answer to homelessness and real money backed by something valuable which encourages investment over speculation is the other. Home flipping was very rare when “money” was not being created out of thin air. Of course, that is the problem it is not money but currency being created. We have no real money and no bitcoin is not money.

 
 
Comment by oxide
2018-06-25 09:15:54

I have no problem with building and subsidizing basic apartments for employable families. But ONLY for employable families. That is, those subsidized tenants should have to produce a document from the employer as evidence that the tenant had put in, for example, 20 hours a week of satisfactory employment for six months.* If they don’t, then no more housing subsidy, at least not on that valuable land in the city.

At the same time, the local govs would build or renovate some housing outside of downtown for the less employable homeless. So if the subsidized tenant loses their job, they still have a place to go. But I don’t see why the non-working homeless should receive practically free housing when the hard-working middle class struggles to pay for the same housing.

———————
*When I was in graduate school, in order to defer paying my undergraduate student loans, I had to obtain a document from the registrar certifying that I was indeed enrolled in full-time study. And I had to do that every semester. So IMO requiring similar documentation from subsidized tenants is not unreasonable.

Comment by MGSpiffy
2018-06-25 10:23:31

I’m in general agreement with you, but I would expand the help to more than just employable families.

Some people have disabilities that limit their employability, but still are doing all they can to have a normal and productive life.

For the last few years, I’ve been helping a person I went to school with and competed academically - one of the very smart, ambitious and goody two-shoes kids - we tied for #3 in our class. When she was 18 she was in a snowmobile accident and that crunching sound was 3 of her vertebra getting broken. As she got older complications from that eventually made her unfit and unable for full time work (she has a multiple plates in her spine, etc) Now in her 50s and on SSDI, all she wants is to live a small, simple life, but still has all the values and desire to be productive in her community. It took YEARS to get her approved for section 8, so she was forced to basically couch surf all that time.

Anyway, IMHO what 100% has to be there though is a desire and willingness on the part of the person receiving help to integrate into and follow the rules of society the best they can. Are they a plus or minus to the people living around them? I draw the line on crime and drug use as that’s destructive to everyone else.

Comment by OneAgainstMany
2018-06-25 11:56:42

I respect that view. I ascribe to the “housing first” solution, as mentioned in the article. That is because I have seen the research as it relates to homelessness, drug abuse, and mental illness. It seems paradoxical that extending a shelter to someone before they are clean and before they are taking meds would lead to better outcomes. The orthodox thought is that doing so would create an disincentive to get clean or seek medical treatment. But in actuality, the reverse is true. If you just extend housing, no strings attached, and harbor no illusions that a certain segment of the population will stay addicted and mentally ill with a poor prognosis, that is when you actually can start to make progress. And it is cheaper when you start to factor in the more nebulous costs (e.g. “economic assessments of helping the homeless tend not to include other costs, like deployment of first responders to encampments, periodic showpiece cleanups of those encampments, street cleaning services, losses in tourism and business dollars, and all the other things cities pay attention to.”)

It is basically accepting the reality of addiction and mental illness. As an aside, homeless accomodations can be rather spartan. The key is safe and structurally sound, and in sufficient number to avoid the ER revolving door, which is super expensive.

“People who are chronically homeless—defined as being without shelter four times a year or more—and who often have addiction or mental health problems are well served by a philosophy called Housing First, which finds them what’s called permanent supportive housing that provides access to services as well as shelter. Until recently, even homeless advocates found this idea radical. Best practice was first to get people off drugs if they were addicted or on them if they were mentally ill—before they were eligible for housing. That’s not the state of the science anymore. “You basically come as you are,” Kushel says. “There is no assumption you’ll be clean and sober or take psychiatric medications. Once you’re in housing, the supportive services wrap around you.”

The trick, though, is that there has to be enough housing available to make all this happen.”

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Comment by Carl Morris
2018-06-25 14:26:05

The trick, though, is that there has to be enough housing available to make all this happen.

Well…right. I won’t argue with your best practices for dealing with addiction and mental illness. So in a situation where it has become normal to speculate in housing and price out all the “losers”, what do we do with the people who are NOT mentally ill or addicted, but who have lost the speculation game and have nowhere to live? If we are providing housing to the mentally ill and addicted we’re going to end up providing housing to them too…because they can force themselves into one of those categories if necessary.

 
Comment by oxide
2018-06-25 15:25:52

I respect that giving housing to the unemployables, so to speak, will help them to get clean. But are they owed free housing in pricey cities where land and housing is at a premium? I believe not. I believe that the working (and paying) population should have first dibs at that housing so that they can have a better commute and make the city a better place. What rights are being violated if the unemployables are housed away from the city? Do they need to be surrounded by city in order to get clean?

 
Comment by Montana
2018-06-25 17:02:45

Nimby. “Away from the city” is still somewhere.

 
Comment by OneAgainstMany
2018-06-25 20:06:53

Do they need to be surrounded by city in order to get clean?

I would say no. I think we can move services on the periphery. Interestingly enough, in downtown Salt Lake there has been a major homeless crisis (though nothing like the scale of California). The mayor put forth a plan to distribute a concentrated homeless encampment (Rio Grande) into smaller areas in the greater Salt Lake area. The backlash was immediate and stiff. Some of the facilities were donated and were reasonable, but the residents were having none of it. They lined up with pitchforks and said, “Put these people someone else.” The article basically captures it well. And as Carl said, housing for the addicted and mentally ill competes with the “losers” in the speculation war.

I do think that there is a supply problem, contrary to what many on this board believe. There is not enough of the right type of housing being built, and too much of the wrong type and in the wrong areas. But there is not enough housing being built in urban areas, so you get sprawl. Also, the tax code and the influx of foreign money only add the distortion, but I generally agree with the sentiment that there is not enough supply of affordable housing in thriving city centers.

 
Comment by BlueSkye
2018-06-25 21:26:41

“in thriving city centers…”

I’m wondering why you want to provide free housing for the hard core unproductive in the most expensive locations. Are you putting up your own money to do that or use mine?

 
 
 
 
Comment by BlackSwandive
2018-06-25 13:52:51

When you blow housing bubbles, the price increase is in the land not the structure. This makes building affordable housing impossible short of a land grant from the city. It’s why builders go up into the sky with attached product, and why sfr lots shrink to the point where you can shake hands with your neighbor by simply opening a side window. They have to get as many square feet of livable space per square foot of dirt as they can in order to turn a profit.

Housing bubbles are ultimately HORRIBLE for the economy and the population as a whole, and end in absolute destruction as we’ve already seen. While places like SF are an easy target because of their brain dead politics and feces covered sidewalks, it’s no coincidence that homelessness has exploded the world over in conjunction with the respective local housing bubbles. The once “entry-level” housing stock has moved up in price where the masses simply don’t have the money to pay for it, and rents have exploded this time around.

There is a special place in hell for central bankers. They know exactly what they’re doing, but they lie through their teeth the entire time. Draghi should be swinging from the gallows, or at the very least living in a cold, dark prison cell, wasting away on bread and water. The same goes for Granny Yellen, Bernanke and Greenscum.

Comment by Montana
2018-06-25 17:07:22

Entry level houses are rentals here. Good roi doncha know.

Is that typical?

Comment by Carl Morris
2018-06-25 17:42:35

Is that typical?

I think that’s a new thing with the speculators buying them all up. But I don’t expect it to last forever. I expect someone to eventually lose a lot of money on them and they’ll go back to being cheap houses for relatively poor people.

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Comment by Mortgage Watch
2018-06-25 08:47:27

Rainier, OR Housing Prices Crater 18% YOY As Housing Market Seizes Up

https://www.movoto.com/rainier-or/market-trends/

 
Comment by Ben Jones
2018-06-25 08:47:49

‘after outperforming the rest of South Africa for ten years, the City Bowl’s freehold property market has taken a hit: ‘A correction was expected to happen. The Atlantic Seaboard and City Bowl showed a combined growth of over 111% the past five years, which is simply exceptional.’

That it is John. Or was. You get a boom, you get a bust. That’s how it works.

Comment by taxpayers
2018-06-25 12:22:31

I thought land was free in sa- just steal it from whitey

 
 
Comment by PDneXt
Comment by Ben Jones
2018-06-25 09:08:19

‘I know people who’ve never met someone who voted for Trump. (They are) imaginary creatures. Anyone we imagine, we can imagine a monster.’

People in Seattle need to get out more often.

Comment by b for banker
2018-06-25 09:17:57

You really dont know how bad it is in downtown seattle - *** Amongst Caucasian ***

The eastside (Bellevue, Redmond etc) have many but not a majority off conservative (if not Repub voters). This is from all races

In Seattle there are some conservative voters amongst Indians, Chinese, S/American, etc. But especially amongst middle and upper middle class voters in nice neighbourhoods - it is amazingly very liberal.

Comment by Ben Jones
2018-06-25 09:23:09

Sounds kinda Appalachian if you ask me.

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Comment by Mafia Blocks
2018-06-25 09:54:35

Carnation, WA Housing Prices Crater 12% YOY As Seattle Housing Bust Accelerates

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

 
 
 
Comment by MGSpiffy
2018-06-25 10:08:40

The people in Seattle who voted for Trump mostly kept their mouth shut in the face of extreme hostility from the very loud liberal throngs.

What I saw during the last election was a large contingent of people who were gloating about Hillary’s certain win and extremely hostile to anyone who deviated from the ‘official party line’ - It wasn’t safe to bring up legitimate issues for the kind of honest intellectual discussion we once took for granted - you would get attacked, vilified, and loudly slandered for just trying to start the conversation.

I wound up voting third party due to issues with both sides, but more importantly I kept my mouth shut.

Comment by Ben Jones
2018-06-25 10:11:10

‘It wasn’t safe…’

I remember that when I’d see a Trump bumper sticker, I’d think, that person is brave. In Arizona.

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Comment by taxpayers
2018-06-25 11:15:44

and armed

 
Comment by Ben Jones
2018-06-25 11:53:42

‘Rep. Maxine Waters told her supporters to “push out” members of the Trump administration from public spaces. “If you see anybody from that Cabinet in a restaurant, in a department store, at a gasoline station, you get out and you create a crowd and you push back on them, and you tell them they’re not welcome anymore, anywhere,” Ms. Waters said Saturday during a rally in Los Angeles.’

 
Comment by Carl Morris
2018-06-25 14:27:37

That seems like the kind of thing that could backfire if there are more of “them” than you realized.

 
Comment by Boo Randy
2018-06-25 16:55:46

Comrade Pelosi scolds Comrade Waters for instigating her Red Guards into mob assaults on Trump officials. Comrade Pelosi, while no less evil than Comrade Waters, knows full well what’s going to happen if the Red Guards provoke a backlash from the silent, but already pissed off, majority.

https://www.cnbc.com/2018/06/25/nancy-pelosi-rebukes-maxine-waters-for-comments-on-trump-administratio.html

 
Comment by CryptoNick
2018-06-25 17:32:21

DJT to Max: “Watch out what you wish for.”

 
Comment by Ben Jones
2018-06-25 17:48:54

Somebody will end up getting hurt like at the baseball game shooting.

 
Comment by Neuromance
2018-06-25 18:00:41

Ben Jones: ‘Rep. Maxine Waters told her supporters to “push out” members of the Trump administration from public spaces.

“Clausewitz clearly says that war is good for something: achieving political goals. “War is not merely an act of policy but a true political instrument, a continuation of political intercourse, carried on with other means. What remains peculiar to war is simply the peculiar nature of its means.”

We have politics so we can resolve our deep seated differences peaceably. Otherwise we descend into that which we seek to avoid - settling differences of policy through violence.

Maxine’s exhortations towards physical aggression are naive, if she believes there won’t be a consequence.

“The Nazis entered this war under the rather childish delusion that they were going to bomb everyone else, and nobody was going to bomb them. At Rotterdam, London, Warsaw, and half a hundred other places, they put their rather naive theory into operation. They sowed the wind, and now they are going to reap the whirlwind.” — Bomber Harris

 
Comment by Boo Randy
2018-06-25 18:27:50

“I did not call for harm for anybody. The president lied again,” Waters said.

You decide…

Waters made comments over the weekend about getting out and pushing back on people with differing political ideologies, saying, “If you see anybody from that cabinet in a restaurant, in department store, at a gasoline station, you get out and you create a crowd. And you push back on them. Tell them they’re not welcome any more, anywhere!”

She then turned to “the children.”

“But let’s not talk about that. Let’s focus on the children. That’s what this is all about. It is about the fact that children have been snatched from their parents’ arms,” Waters said, moving away from the controversy over her comments.

Waters then burst into tears after being confronted with the fact that major Democrats are denouncing her harassment claims.

“They don’t really say I’m out of line. What they do is try to find a way talk about civility without attacking me or anybody else as the leader of the Democratic Party, I expect that she would do everything that she could to make sure nobody believes that Democrats are out here harassing anybody or causing any violence,” Waters said of House Minority Leader Nancy Pelosi, who denounced Waters’ harassment comments Monday.

 
Comment by oxide
2018-06-25 18:34:56

Even the Washington Post — who seems to enjoy more than anything else inviting readers to dredge up images of trains and showers — wrote an editorial titled “Think before you mob,” to advise against following Water’s advice. The comment section — again invoking showers etc — disagreed en masse, declaring that democracy was in danger and that the time for peaceful protest was over.

 
Comment by BlackSwandive
2018-06-25 19:15:56

Who voted that nasty old racist crank in, anyways?

 
Comment by rms
2018-06-25 20:04:06

“Tell them they’re not welcome any more, anywhere!”

That sounds pretty thorough… almost genocidal.

 
Comment by Boo Randy
2018-06-25 20:23:36

Public officials have the right to go about their lives unaccosted. Trump supporters have never engaged in this kind of mob behavior or harassment against Obama or Clinton administration appointees. Even if we loathed them from a political standpoint, we would never dream of bothering them if we encountered them out and about. Maxine’s Red Guards are going to push too far, and they’re not going to like the reaction they provoke.

http://thesilicongraybeard.blogspot.com/2018/06/this-protesting-officials-in-public-is.html

 
Comment by Neuromance
2018-06-26 04:43:50

I’m actually not too concerned about civil war. People are too comfortable with their opioids, food, clothing, shelter and obesity. But, as Ben noted, this will incite lone wolves.

If political officials should be menaced whenever they are out in public, it’s a small step from driving them out of the public square, to a thrown brick. And if they deserve a thrown brick, it’s a small step to more than that.

Maxine feels pretty safe in her enclave but the forces she’s trying to invoke will escape her control.

 
Comment by Mr. Banker
2018-06-26 05:56:04

“Who voted that nasty old racist crank in, anyways?”

She is supported by strong base. She now garners about 70% of the votes. As of now she is unstoppable.

https://en.m.wikipedia.org/wiki/Maxine_Waters

 
Comment by JAMESJIM
2018-06-26 07:48:53

just take her out, problem solved

 
Comment by hwy50ina49dodge
2018-06-26 09:08:19

“Somebody will end up getting hurt like at the baseball game shooting.”

Or on a visit to a Safeway store …

On January 8, 2011, just a week into her third term, Giffords was a victim of an assassination attempt near Tucson at the hands of gunman Jared Lee Loughner, at a Safeway supermarket where she was meeting publicly with constituents. Loughner shot Giffords in the head with a thirty-three round magazine Glock pistol;] he shot twenty-four others, killing six and wounding eighteen, among them federal judge John Roll and a 9-year-old child, Christina-Taylor Green, before Loughner was disarmed, arrested and charged with murder and attempted murder. Giffords was later brought to a rehabilitation facility in Houston, Texas, where she recovered some of her ability to walk, speak, read and write.

 
 
Comment by In Colorado
2018-06-25 13:30:49

I remember when Seattle was inexpensive and it was still undesirable. Unless you worked for Boeing there was not a single good reason to live there. The weather blows. At least you get decent weather in California.

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Comment by redmondjp
2018-06-25 15:02:08

There are so many ex-Californians in Seattle now that it’s hard to tell the difference, besides the weather, of course.

 
Comment by b for banker
2018-06-25 15:12:17

it started with the MSFT money in the ’90’s.

 
 
Comment by oxide
2018-06-26 05:24:11

The hatred isn’t reserved for Trump supporters. You remember DailyKos, the liberal blog. Well, just after Super Tuesday, the blog owner declared that Hillary had won the primary, and therefore the blog had no choice but to go full-court press for Clinton, and that the Bernie supporters need to pound sand or face the ban hammer.

Of course the blog nearly disintegrated, and the later news of the primary being rigged and Clinton’s snubbing of “in-the-bag” states didn’t help. Masses of angry Bernie fans protested by voting for Jill or stayed home, which basically elected Trump.

Of course, Dems forgot that the same thing happened in 2000 with Gore, but Trump is reminding them of that, bigly. The Dems are pretty united against Trump now. 2018 might be good for Dems, but I expect 2020 to be another bloodbath.

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Comment by BlackSwandive
2018-06-25 19:07:32

“…said Redfin CEO Glenn Kelman, who lives in Seattle. ‘I know people who’ve never met someone who voted for Trump. (They are) imaginary creatures. Anyone we imagine, we can imagine a monster. But when you meet a conservative, or you meet a liberal, you immediately moderate your views.’”

This liberal azzhat is oblivious to the world around him. There are PLENTY of Washingtonians who voted for Trump, many of them Democrat and Bernie Sanders supporters.

Comment by Albuquerquedan
2018-06-26 06:34:45

Yes, but they are not so unhinged that they froth at the mouth when they know someone has a different political opinion than they have. Thus, they just stay quiet and vote.

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Comment by Ben Jones
2018-06-25 09:05:25

‘In January, GE announced a fourth-quarter after-tax charge of $6.2 billion and a $3 billion cash capital contribution to its insurance subsidiary that will expand to $15 billion by 2024. The contribution was necessary after the company discovered liabilities stemming from its long-term-care reinsurance portfolio, which it mostly exited between 2004 and 2006. Flannery told analysts he had “underappreciated the risk in this book.”

Comment by OneAgainstMany
2018-06-25 12:00:34

Basically the high cost of healthcare, and GEs terrible actuarial math, dropped it from the DOW.

 
 
Comment by b for banker
2018-06-25 09:10:53

Regarding the below. Does any know what the comparable stats %GDP in the US, Canada and Europe?

This link seems to indicate 15-18%. https://www.nahb.org/en/research/housing-economics/housings-economic-impact/housings-contribution-to-gross-domestic-product-gdp.aspx

Dividing from the table here seems to indicate 13%
https://bea.gov/iTable/iTable.cfm?reqid=51&step=51&isuri=1&5114=a&5102=1#reqid=51&step=51&isuri=1&5114=a&5102=1

So is China so out of whack - or are the stat categories not comparable.

—————–
From Bloomberg on China. “Real estate is the driver of the Chinese economy. By some estimates, it accounts (directly and indirectly) for as much as 30 per cent of gross domestic product. Keeping housing prices buoyant and development robust is thus an overriding imperative for China - one that is distorting policymaking and worsening its other economic imbalances.”

“Despite reforms in recent years, there’s little question that Chinese real estate is in bubble territory. From June 2015 through the end of last year, the 100 City Price Index, published by SouFun Holdings, rose 31 per cent to nearly US$202 per square foot. That’s 38 per cent higher than the median price per square foot in the United States, where per-capita income is more than 700 per cent higher than in China. Worried about these prices, and about growing indebtedness among developers, China’s State Council has hatched a plan to encourage rentals.”

Comment by Ben Jones
2018-06-25 09:14:11

‘Everyone who works on homelessness agrees on the way to fix the problem. Build more homes.’

Comment by oxide
2018-06-25 09:22:32

How hard would it be for *ahem* Alibaba to create a *ahem* “second headquarters” in one of those ghost cities, and move people out to the sticks where housing cheaper, and heck already built? Seems more efficient that building more giant towers in Shanghai. I guess there’s not enough profit in that?

Comment by Carl Morris
2018-06-25 10:36:30

Not sure how many HQ type employees Alibaba even has…but it might not be as many as you think. To me it seems like most of the new generation Chinese companies are just a website/wechat page sending out stuff to an army of non-employee delivery people.

It’s the last generation of heavy iron stuff like Huawei and Lenovo that have big buildings full of people but they are already fairly spread out among the big cities. I suppose they could move a bunch to a ghost city but they have the same problem as we have…the really critical people want to be where the action is and get paid enough that they don’t mind if it’s expensive.

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Comment by OneAgainstMany
2018-06-25 12:08:13

“A Series of Mysterious Packages”
NPR
Planet Money

“MALONE: Celina had no explanation for this. And there was nothing she could do. She was getting weird packages, and they kept coming.

SALAS: Third package comes about - fourth package comes about, like - the fifth package was…

MALONE: One of them had a crappy ring inside.

FOUNTAIN: Yeah. She got a headphone case, but no headphones.

MALONE: There was Silly Putty.

SALAS: Oh, there was Silly Putty. I completely forgot about that. When did that come? That came after the piggy bank.

MALONE: Yeah. There was a piggy bank as well.

FOUNTAIN: But all of the weird junk paled in comparison to the fuzzy keychain.

SALAS: It think it was trying to mock, like, mink, but it looked like raccoon. And it just was - it was terrible.

MALONE: Wait. It was, like, fur?

SALAS: Yes. It was terrible. I opened it and, like, let it drop to the floor. And it was…

(LAUGHTER)

SALAS: …That keychain should have never seen the light of day.

(SOUNDBITE OF MUSIC)

MALONE: These ghost packages full of, like, seemingly random junk, there are reports of people getting these all over the country, all over the world, even.

FOUNTAIN: There was a woman in London who got not one, but two fake Nike sweatshirts.

MALONE: There was a couple near Boston who got a flashlight and an outdoor TV cover.

FOUNTAIN: And a woman on Long Island who got some compression socks and a cellphone case.

MALONE: Why are people being haunted by ghost packages?”

“sellers may engage in fictitious or phantom transactions with themselves or collaborators in order to artificially inflate their search results rankings.”

https://www.npr.org/templates/transcript/transcript.php?storyId=606517326

 
Comment by OneAgainstMany
2018-06-25 12:14:14

Folks, I give you Alibaba…

 
Comment by oxide
2018-06-25 18:40:51

I was speaking figuratively about Alibaba. I’m wondering why those companies in China can’t fan out to the ghost cities where housing is pre-made. Or maybe everyone could work@home from their Tiny Pagoda.

But I guess the Chinese like their vibrant downtown and artisan coffee too just like Americans do.

 
Comment by Carl Morris
2018-06-25 22:34:30

But I guess the Chinese like their vibrant downtown and artisan coffee too just like Americans do.

The ones with money do. My wife is in the business of providing that coffee, all the way from the plantation to the cup.

 
 
 
Comment by Mafia Blocks
2018-06-25 09:49:36

China’s massive stock sell-off pushes benchmark index down to breach the 3,000 mark

“China’s Massive Stock Sell-Off Pushes Benchmark Index own To Breach The 3,000 Mark”

http://www.scmp.com/business/china-business/article/2151472/chinas-massive-stock-sell-pushes-benchmark-index-down-breach

 
 
 
Comment by Ben Jones
2018-06-25 09:17:53

‘prices, especially in the upper tiers, are dropping sharply. This comes after a decade during which Namibia’s property prices shot through the roof to be among the highest in the world’

I suppose there aren’t many bloggers out there who’ve paid attention to such things. Yes, these off the beaten path countries like Nigeria were, around 2014, the most expensive shacks on the planet. More than London, Manhattan, Hong Kong.

Of course, at the same time, Calgary was the golden city of Canadian shack flippers. Now it’s craterville.

Comment by oxide
2018-06-25 10:02:19

Heh, I still invite anyone to play GoogleEarth in Lagos, Nigeria. Yes, there are some areas where somebody (who?) is building modern-looking effing boxes of air on the Atlantic coast. But then travel just a mile away to the interior of the city. And marvel at the kind of neighborhood you’re buying into.

Comment by taxpayers
2018-06-25 11:16:50

I’m still holding that 50,000,000,000 Nigerian check

Comment by OneAgainstMany
2018-06-25 12:13:01

Oil money explains this. Some Nigerians have lots of it. Per capita, it is nothing like UAE, Qatar, or even Saudi Arabia. But there is lots of money sloshing around in some places. Heck, if all these tech companies in San Francisco that host the likes of LinkedIn, Google, Twilio, Zipcar, Github, Okta, Dropbox, and Facebook can have “people passed out in their own filth”, I’m sure that some posh places can exist in Nigeria too.

And people wonder why I support electric vehicles. It’s partly environmental, partly economical, but also partly philosophical. So many corrupt regimes, including terrorist regimes, are supported primarily by oil money.

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Comment by Mafia Blocks
2018-06-25 12:19:19

Housing

Big Pine Key Housing Prices Crater 12% YOY

https://www.movoto.com/big-pine-key-fl/market-trends/

 
Comment by brazendetre
2018-06-25 14:48:01

Its world class stupidity to not acknowledge where the energy comes from that gets stored in those batteries that electric vehicles use - incredibly inefficient with todays best technology. Long haul trucks? LMAO. Musk will be in jail or hanged (possibly by his own hand) before you see those on the road in material numbers.

Unicorn thinking by fools and another huge misallocation of capital, not unlike the housing market and crypto.

 
Comment by oxide
2018-06-25 18:45:23

I’ll support an electric vehicle when I can drive from DC to, say, Cedar Rapids Iowa without planning the trip around fuel stops, and not spending more than 20 minutes at a fuel stop. Until then, to me, an all electric car is a golf cart, or the vehicle that Leonardo DiCaprio drives on the way to his 747.

That said, I’d rather not tempt fate talking about Musk that way.

 
Comment by OneAgainstMany
2018-06-25 20:17:03

Musk will be in jail or hanged (possibly by his own hand) before you see those on the road in material numbers.

Check out Workhorse, an American company in Ohio and Indiana making excellent electric Trucks. They are filling plenty of orders for fleet vehicles. You could also look at Nikola One, or VW and Seimens in Germany. Electrification of trucks is coming, long-haul and short, whether Tesla survives or not.

 
Comment by OneAgainstMany
2018-06-25 20:21:52

The thing is that Harley-Davidson is likely to go bankrupt before Tesla does. Telsa’s problem is that they can’t produce vehicles fast enough. Harley-Davidson’s problem is that their target demographic is dying of diabetes, opioids, alcoholism, and heart disease.

 
Comment by Carl Morris
2018-06-25 22:35:48

The youngsters aren’t big on costume parties.

 
Comment by rms
2018-06-25 23:33:14

“Harley-Davidson’s problem is that their target demographic is dying of diabetes, opioids, alcoholism, and heart disease.”

I always had this vision of an educated faux biker… a guy who knocked-up his college sweetheart and married a corporate cubicle. Twenty-five years later he is experiencing a midlife crisis, and he needs a $20k hawg and the signature leather apparel. Yeah, I’m from San Jose, not Milwaukee.

 
Comment by oxide
2018-06-26 06:57:49

ISTM the hawgs waxed and waned with Vietnam. Millenials never picked it up as a hobby. Hawgs just don’t mix with peacetime indebted broke minimalist soyboy snowflakes.

 
Comment by Mafia Blocks
2018-06-26 07:30:52

Housing my good friends.

Butte Falls, OR Housing Prices Crater 11% YOY

https://www.movoto.com/butte-falls-or/market-trends/

 
Comment by OneAgainstMany
2018-06-26 07:31:16

From Harley-Davidson’s CEO’s own mouth:

Our future must be more about the software. Not digital code software, but people. And how they think, and why they ride, and in fact, maybe why they don’t ride. The numbers are clear and they do not support the status quo. Overall ridership needs to grow in order for our industry to remain vital. It’s plain and simple.

This also explains why HD is making a push into electric motorcycles. They are late to the party, but I give them credit for trying:

https://electrek.co/2018/04/27/harley-davidson-electric-motorcycles-younger/

The younger crowd is more likely to be on an electric bike or zipping around one of those Bird or Lime scooters. A “hawg” has very little appeal.

But it looks like HD’s CEO is outsourcing more production to Europe because of the Trump tariffs. There was that little Twitter spat yesterday that was very interesting. It makes me think about the gentleman from Belgium who was in my hospital last year who almost died. I took care of him for several days as he was pretty severely injured on a coast to coast tour of the US that he had been waiting most of his life to take. It made me realize that there is a certain segment of Europeans that pretty much mirror the HD demographic. But they too are old and are aging out.

 
Comment by Carl Morris
2018-06-26 10:26:53

If I were Harley I would definitely make some in China. I see a few rich guys getting together on weekends to ride Harleys and European bikes in Shanghai and I there is enough money floating around I could see it becoming a big deal there. Much more likely than growing here.

 
Comment by OneAgainstMany
2018-06-26 13:23:37

GM sells more cars in china than the US, so I wouldn’t be surprised if HD starts to cater to the Chinese market.

 
 
Comment by Albuquerquedan
2018-06-26 11:11:22

I can help you get it cashed for a $10,000 fee.

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Comment by Boots on the Ground in Ptown
2018-06-25 16:02:30

Ben your blog is a valuable macrocosm of the phenomena surrounding real estate over the past 2 decades. A vault collection documenting human behaviour and RE activity as related to game theory and common knowledge, to borrow from Ben Hunt. On that note, I thought most of the other HBB participants would enjoy this podcast from two of my favorite minds in finance:

https://soundcloud.com/superinvestors/ben-hunt-on-the-unparalleled-power-of-narrative-in-the-financial-markets

Comment by hwy50ina49dodge
2018-06-25 21:56:26

“Ben your blog is a valuable macroco$m of the phenomena $urrounding real e$tate over the past 2 decade$.”

ahmen … pass the butter please …

 
 
 
Comment by Mortgage Watch
2018-06-25 09:32:31

Frisco, TX Housing Prices Crater 8% YOY As Market Implodes

https://www.movoto.com/frisco-tx/market-trends/

 
Comment by Ben Jones
2018-06-25 09:43:10

‘The property received no genuine offers despite its sub-$1.2 million guide price. Mr Snead said several buyers who turned out to look at the flat had said they needed to get their finance sorted. ‘What’s stopping people from buying is a bit of greed from vendors who say, ‘I’m not selling for less than this’

‘no genuine offers despite its sub-$1.2 million guide price’

They will look back at 1.2M and wonder how could they be so blind. But go ahead, chase that market down.

‘Dragging down the citywide clearance rate have been suburbs such as Cabramatta with a five-month auction success rate of just 25 per cent, Liverpool (28.1 cent), Brighton-le-sand (34.4 per cent) and Pennant Hills (36 per cent).’

If you had told people there a year ago that auction sales would be so low I doubt anyone would have believed you.

 
Comment by Mafia Blocks
2018-06-25 09:45:48

Nothing speaks collapsing demand like this.

“Realtors Abandoning China’s Resort Island As Sales Plunge”

https://www.businesstimes.com.sg/real-estate/realtors-abandoning-chinas-resort-island-as-sales-plunge

 
Comment by Ben Jones
2018-06-25 10:27:42

‘Over at Westpac, economists write: ‘In Auckland, house prices are now falling gradually on a monthly basis, are down 2 per cent since February. Average prices in the region are now back at August 2016 levels.’

Another once world beater sees the bubble pop. How many is that now?

 
Comment by Sam (SW)
2018-06-25 11:08:55

Even new home sales are falling. It’s as if no one can afford anything?

https://www.zerohedge.com/news/2018-06-25/hew-home-sales-rebound-south-home-prices-plunge-13-month-lows

 
Comment by Mortgage Watch
2018-06-25 11:25:49

Tualatin, OR Housing Prices Crater 16% YOY

https://www.movoto.com/tualatin-or/market-trends/

 
Comment by taxpayers
2018-06-25 12:26:48

Lake house hunt- the kids are always 13-15, ready to ditch mom n dad
beach front bargain- salty hoa
international house haters- $300 a sq ft in Mexico?

HIVtv

Comment by oxide
2018-06-25 18:47:25

dude get with the program you need shiplap and sliding barn doors

 
 
Comment by Langley guy
2018-06-25 12:53:32

‘If you talk to people who have homes worth over $4 million . . . they’re down a ton,’ said Eilers.”

Wow, too shy to tell numbers… How many doses dollars in a ton?

 
Comment by dandroidz
2018-06-25 14:00:04

The migration to red states is hypocracy at its finest by these elitist leftists. Screwed up their own homes of Chicago, NYC, NJ, CA, Seattle, jack up the taxes and cost of living, and poof…move to cheaper pastures.
Then they go “gee why are these people so backwards? It was so progressive in *insert city xyz*”. The south is “behind the times” except for when it comes to affordability and actual economic production. The South holds a vast majority of the industrial base of the US now. Furniture, cars, airplanes, ships, and tooling are all built in those red states.

Look at Charleston SC. Speak to the locals there and its been a NY infestation. Trying to change the southern coastal way of life to the way it was back home. The sad thing is they can do that because they come with so much cash out equity from their blue state holes….

Comment by whirlyite
2018-06-25 14:29:20

+ Googleplex

Comment by whirlyite
2018-06-25 14:31:10

My bad - meant to say “+ googolplex”

 
 
Comment by hwy50ina49dodge
2018-06-25 21:52:09

“The $ad thing is they can do that because they come with so much ca$h out equity from their blue $tate hole$”

Why focu$ on low tide$?, … High tide$ is yet to hit yer $outhern $hore$ …

 
 
Comment by Mortgage Watch
2018-06-25 14:37:30

Alexandria, VA 22303 Housing Prices Crater 15% YOY As Land Prices Tank Nationwide

https://www.zillow.com/alexandria-va-22303/home-values/

*Select price from dropdown menu on first chart

 
Comment by CryptoNick
2018-06-25 14:55:55

Cryptocurrency
Bitcoin Just Hit a New Low for 2018. Here’s How Much You Would Have Lost If You Bought at the Peak
By Brad Tuttle 10:49 AM EDT

The price of Bitcoin dropped to $5,755 on Sunday afternoon. That marks the lowest point for the cryptocurrency so far in 2018, dipping below the year’s previous low of $5,967, hit on February 6.

The last time a unit of Bitcoin was worth less than $5,800, it was November 2017, according to CoinDesk.

The Bitcoin crash of 2018 comes half a year after many cryptocurrencies skyrocketed in value. At its peak last December, Bitcoin was trading as high as $19,783.

To do some very simple math: If you had bought one unit of Bitcoin way back in early February 2017, when it was worth around $1,000, that investment would have been worth over $19,000 toward the end of last year.

On the other hand, what if you jumped into the cryptocurrency craze late and purchased Bitcoin at the peak?

If you bought Bitcoin on December 17, 2017, when it was worth roughly $19,000, you would be down roughly 70% today, when the price of Bitcoin is about $6,000. In other words, if you bought $1,000 worth of Bitcoin at the peak, it would be worth around $300 right now.

http://time.com/money/5320970/bitcoin-price-low-2018-peak/

 
Comment by Boo Randy
2018-06-25 17:01:44

Vince Cable, the Liberal Democrat leader, said: ‘Housebuilding bosses seem to have secured excessive pay and bonus packages just before a downturn in the market – housebuyers will be furious. Shareholders will also be left wondering why these executives should be able to award themselves such obscene packages after claiming credit for a market that has been inflated by Government schemes and taxpayers’ money.’”

Another posturing twit from another oligarch-captured Establishment political party, pretending to stamp his little feet, while his party cravenly sells out the middle and working classes to their globalist donors.

 
Comment by Mortgage Watch
2018-06-25 19:10:42

San Diego, CA 92129 Rental Rates Crater 12% YOY As Housing Bust Ravages SoCal

https://www.zillow.com/san-diego-ca-92129/home-values/

*Select price from dropdown menu on rental chart

 
Comment by Boo Randy
2018-06-25 19:38:46

Hot-money flows of Yellen Bux are bidding up Hong Kong shacks to insane valuation levels.

http://www.scmp.com/property/hong-kong-china/article/2152317/will-hong-kong-keep-its-crown-worlds-biggest-luxury-housing

 
Comment by Boo Randy
2018-06-25 19:45:33

Shares in Countrywide, the UK’s largest real estate group, fall 30% after it issues a second profit warning.

Oh dear….

https://www.bbc.com/news/business-44599602

Comment by Ben Jones
2018-06-25 19:49:50

From 140 in January to 60.

Comment by Boo Randy
2018-06-25 20:01:07

Reminds me of the drop in Bear Stearns in 2008. 60 was where Jim Cramer gave his infamous “Bear Stearns is fine!” rant to the CNBC-viewing lemmings, before Bear Stearns dropped to $2, then went bankrupt.

Comment by Boo Randy
2018-06-25 20:27:01

Jim Cramer: “Bear Stearns is fine!”

https://www.youtube.com/watch?v=V9EbPxTm5_s

(Comments wont nest below this level)
 
 
 
 
Comment by aNYCdj
2018-06-26 05:47:38

Curb Appeal? In Easton, You’re Soaking In It

It’s a custom built 10,000+ sq ft masterpiece, by a guy who *really* knew what he was doing…

https://patch.com/connecticut/weston-ct/curb-appeal-easton-youre-soaking-it

 
Comment by Boo Randy
2018-06-26 06:41:17

Even with trillions of Yellen Bux sloshing around looking for a place to die, house price growth is slowing as the Fed’s asset bubbles move into their terminal phase.

https://www.zerohedge.com/news/2018-06-26/us-home-price-growth-slows-april-hots-new-record-high

 
Comment by Professor 🐻
2018-06-26 06:43:16

Chinese stocks enter bear market as trade war heats up
By Daniel Shane June 26, 2018: 3:26 AM ET

The gloom is deepening for Chinese stocks.

The benchmark Shanghai Composite slid into bear market territory on Tuesday, closing more than 20% below its recent high in January. The index fell 0.5% on the day.

Chinese stocks have come under pressure in recent weeks from concerns over an economic slowdown and an emerging trade war with the United States.

 
Comment by oxide
2018-06-26 07:02:37

Da fuuuuuq? Someone needs to send that listing to McMansion Hell.

 
Comment by Mortgage Watch
2018-06-26 07:16:55

Santa Cruz, CA 95060 Housing Prices Crater 10% YOY As California Housing Market Plummets

https://www.zillow.com/santa-cruz-ca-95060/home-values/

*Select price from dropdown menu on first chart

 
Comment by jeff
 
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