Pulling A Rabbit Out Of A Hat
A report from the Bellingham Herald in Washington. “Rents in Bellingham and other Whatcom County cities have declined in the past several months according to a new study, but local observers say they’re not seeing rent declines and don’t see the housing crisis easing. Average monthly rent for the Bellingham metro area was $1,547 in June, according to Zillow. That’s an annual countywide drop of 2.2 percent and it shows a steady decline in metro-area rental prices from a peak of $1,672 a month in October 2017. Bellingham rents have been falling steadily since a peak of $1,734 in October 2017, according to Zillow.”
“Tom Follis, a Bellingham real estate appraiser and broker, said he suspects that the Zillow report is an aberration. ‘I think it’s an anomaly rather than a trend,’ Follis said. ‘There a lot of ‘for rent’ signs out, no question. But they’re aimed at the college students.’”
The Tribune Star in Indiana. “As two more large-scale apartment projects prepare to open, there are indications the Terre Haute rental market may have reached capacity, especially for certain demographics. Another housing development that has been on hold for more than a year is now undergoing closer scrutiny and a veteran local builder cautions against further investment in rental properties. ‘Anyone building rental units right now is making a mistake,’ said Rick Jenkins, who has constructed apartments as well as single-family homes. ‘The market is very soft in newer, higher-priced units … that are renting for $1,000 per month or more.’”
“Some apartments are offering discounts on monthly rental rates and move-in specials, actions that suggest they are responding to competition.”
From Press Connects in New York. “New York City-sized rents — backed in part by a government grant and tax breaks — have arrived in Binghamton. The first wave of an expected 122 apartments at 50 Front St. is now being marketed at prices rarely before seen in the region. One- and two-bedroom units at the city’s newest apartment complex are being listed between $1,720 and $2,440. Three-bedroom units are also planned, though pricing on those has not been disclosed.”
“Those rents are raising eyebrows among some in the local real estate market. ‘I don’t know who’s going to rent these things,’ said Eric Strong, a Binghamton real estate agent who specializes in rental properties. ‘It will be pulling a rabbit out of a hat. They are setting a new standard if they can get that.’”
“Among the amenities of this development on the west banks of the Chenango River are a fitness center with cardio machines and free weights; a business center; an outdoor terrace with fireplace; a dog park; in-apartment washer and dryer; quartz countertops; stainless-steel appliances; secure parking below the building; and wifi in all common areas. Rental rates for the apartments are comparable to the mortgage payments on a huge Binghamton home.”
The Denver Channel in Colorado. “Residential builders in the Denver area are set to complete more than 15,000 new apartments this year, a substantial increase over last year’s numbers, according to RentCafe. RentCafe estimates that metro Denver will see about 15,187 new apartments completed in 2018. That’s an increase of 150 percent compared to 2017’s numbers and puts Denver among the top three metros in the country for new apartment construction.”
“The metro area with the largest number of new apartments entering the market this year is also the country’s biggest city overall: New York. The Big Apple will see nearly 20,000 new apartments by year’s end. Coming in second place is the Dallas-Fort Worth metro area, which is expected to complete construction on more than 17,000 apartments in 2018.”
The Colorado Springs Gazette. “Apartment dwellers dug deeper into their pocketbooks during the second quarter as Colorado Springs-area rents hit another record high. Monthly rents averaged $1,156.76 during the April-June period, about $15 more than the previous record set during the same quarter last year, according to the Colorado Division of Housing and the Apartment Association of Southern Colorado. Some of the newest apartments that were opened during the first quarter and being filled in the second quarter were higher-end, amenity-filled units that carry higher rents — likely helping to push up the overall rental costs, said Laura Nelson, the Apartment Association’s executive director.”
“‘When you get some more of those luxury units coming on line, you do see that bit of a spike,’ she said.”
“The area’s apartment vacancy rate of 6.3 percent in the second quarter was unchanged from the first quarter and nearly identical to that of a year ago, the report showed. With a total of 49,494 apartments in the Springs area, the 6.3 percent rate translated to just 3,139 vacant units in the second quarter. ‘When you take 6.3 (percent) of 49,000 units, that’s not a whole lot for a city our size,’ Nelson said.”
“The number of units added by builders and developers in the second quarter totaled just 222. During the first half of this year, 234 apartments have been added; a year ago during the same period, the number of new units totaled 770. More units are on the way. ‘We need thousands more,’ Nelson said. ‘It is a complete supply and demand issue. I know people don’t like to see the high-end ones come on line, but really, they still add to the supply. Those folks who can afford them will move up and that will open up a unit that maybe is more affordable for someone else.’”
From USA Today. “Here’s an alternative to both a hotel and an Airbnb: a pop-up hotel. That’s the concept that startup WhyHotel has introduced to Washington, D.C., and Baltimore and hopes to expand across the country. Last year, WhyHotel began operating these pop-up hotels within newly-built luxury rental apartment buildings that have yet to lease out all their units. Once a building is completed, it can take a year or two to fill up. WhyHotel has swooped in to offer owners the ability to make money off their empty units.”
“Guests, in turn, can enjoy amenities of the apartment. Some, such as pools, gyms or dry-cleaning services, might even overlap with services offered at a hotel. Jason Fudin, WhyHotel’s CEO, says they can charge a decent premium because ‘these are the newest and nicest buildings in the city.’ The company recently received $3.94 million in seed funding, which it will use toward opening one or two more hotels this year and another six to 12 next year.”
From Patch Illinois. “The owner of a 221-unit apartment tower on Howard Street has put the building on the market less than two years after purchasing the property for $46 million, Crain’s Chicago Business reported. The 2008-built building has been sold three times since falling into foreclosure during the Great Recession, Crain’s reported. Due to increasing supply of rental property along the North Shore, the median cost of apartments has grown at less than half of the rate of the Chicago suburbs overall.”
“There are nearly 1,000 new apartment units currently planned or being built in Evanston, which has increased the risk of oversupplying the market, according to Crain’s. HFF is marketing the 415 Premier property as an opportunity for new buyers to carry out improvements and charge higher rents, Crain’s reported.”
The Journal Sentinel in Wisconsin. “A Walker’s Point upscale apartment project that’s been decades in the making has started converting its third historic building — with one more to go. River Place Lofts will eventually total about 150 units when that final building is completed on Milwaukee’s near south side. River Place Lofts was initially planned as condominiums. Developer Peter Moede began converting the Beam House in 2001, when new condos were going up throughout the downtown area.”
“Work on the Beam House stopped for three years while Moede fought a raze order issued by city building inspectors. By the time that dispute was resolved, the condo market was starting to become overbuilt. Moede repaired the fire damage, which was covered by insurance, but put his development plans on hold. Several years after the 2007-2008 housing market collapse and the related global recession, work began on converting the Beam House to apartments. By then, there was strong demand for high-end rental housing throughout the downtown area. The apartments at River Place Lofts’ four buildings are being constructed with enough space and high-quality finishes to some day convert to condos, Moede said.”
“‘It’s going to come back,’ he said about the condo market. ‘But there’s still people who want to rent. People want flexibility. They don’t want to be tied down.’”
“One-bedroom apartments in the Finishing House will be around 1,000 square feet, commanding about $1,500 to $2,000 in monthly rents. The Dock House also has features not found in most downtown area apartments, such as a lounge where residents can store wine in refrigerated cases; a cigar lounge with a humidor; and a pontoon boat docked along the canal.”
‘With a total of 49,494 apartments in the Springs area, the 6.3 percent rate translated to just 3,139 vacant units in the second quarter…‘We need thousands more’
3,000 vacant apartments and you want thousands more? This is clearly not rational. In a world of single digit cap rates, 6% will wipe away profits. But these guys aren’t looking at rental profits. They expect to sell for huge returns in a short period of time. Which is the definition of speculating.
“Those folks who can afford them will move up and that will open up a unit that maybe is more affordable for someone else.’”
I’m in Denver not the Springs, but no, I will not be moving up and opening up an affordable unit for someone else.
Who writes this garbage?
Chino Hills CA Housing Prices Crater 6% YOY As Southern California Gags On Bloated Housing Inventory
https://www.movoto.com/chino-hills-ca/market-trends/
Colorado Springs housing is benefiting from the booming legal marijuana industry coupled with banks still treating revenue from this source as illicit. So the growers and sellers are using houses as piggy banks. Plus, there has been a veritable flood of California equity locusts descending on the Front Range and Colorado Springs, which has also driven up housing. In addition, a lot of people priced out of the Denver market have bought places in Briargate in northern Colorado Springs. Last but not least, the five military bases in the area and the payrolls they provide have offered strong support to the local housing market.
‘metro Denver will see about 15,187 new apartments completed in 2018. That’s an increase of 150 percent compared to 2017’s numbers’
‘The Big Apple will see nearly 20,000 new apartments by year’s end. Coming in second place is the Dallas-Fort Worth metro area, which is expected to complete construction on more than 17,000 apartments in 2018′
It’s been well established that NY and Dallas don’t need more apartments, much less luxury which is what these almost certainly are. So MSM, just what explains so much money being poured into this when absorption in Dallas for instance, is almost zero?
Example:
‘A new StreetEasy report notes that for the first time in the past seven years, there is a record high number of homes available for sale, says StreetEasy, and fewer transactions are taking place than in years past.’
‘Pointing to a surge in inventory on their site, StreetEasy is optimistic that conditions will likely lead to price cuts for units that have been lingering on the market for some time and will cause more sellers to meet the demands of interested buyers. While it’s not clear what caused the surge, there are more homes to choose from of various sizes across multiple neighborhoods and price points, as its result.’
‘Since last June, housing inventory priced between $500,000 and $750,000 rose 39 percent in Manhattan and 32 percent in Brooklyn. Inventory increased in nearly three out of four neighborhoods in Manhattan, Brooklyn, and Queens (89 out of 122 analyzed neighborhoods) and in 47 of those, housing stock had increased by at least 25 percent from last summer. Per StreetEasy, the increase was driven by newly listed homes, not homes that have been listed for extended periods of time.’
‘The report encourages home shoppers to sit tight if they haven’t seen a home that they love just yet. More inventory is expected to hit the market this fall and there will be more room to negotiate lower prices, as well as more sellers willing to make concessions.’
‘it’s not clear what caused the surge’
NY Curbed, meet the Denver Channel:
‘The Big Apple will see nearly 20,000 new apartments by year’s end’
Here’s a shot of the 4th floor pool deck seen from the 6th floor upper patio area in the courtyard of a building by Union Station I did some electrical work in. The building takes up the whole block, has its own Excel Energy substation, a Whole Foods, a Walgreens, and a Chinese restaurant as ground floor retail. There are three 13 story towers that go above level 6-7. Some of the Avalanche and Nuggets live there…
https://imgur.com/a/mshUFiI
Looks fantastic. I would live there.
Looks Chinese. Not just the building but also the lack of direct sunlight at the pool. Gotta stay as white as you can.
Ben, who will buy all these buildings? If it’s not profitable for the building owners now, then it won’t be profitable for any buyers, so who’s gonna buy? Are they now creating these buildings for the sole purpose of trading them upward indefinitely?
At some point, someone’s going to refuse to be the bagholder. At least with end-consumers in individual shacks, the bagholder could sell to Fannie/Freddie, like in the last bubble. But Fannie/Freddie don’t buy the mortgages on these buildings the way they do for individual shacks… do they??
The GSE’s back a large percentage of multi-family. Some probably cash-flowed under their pro-forma, but reality is creeping in. When they pitched it to their investors, most everyone thought rents would never go down and appreciation was the big fat cherry on top. It was classic mania thinking.
The only way it’ll work out is default, new owners have a lower basis and can meet the market. Useless amenities go away, etc. But here’s the problem: oversupply. They have so overshot demand that even default prices may be iffy in the next few years. This “oh no, let’s make em condos, no lets make em apartments” like the WI article are pretty typical. They are doing the same thing in Miami, Seattle and Chicago right now. Reversions. When did we see that before?
It’s so silly now we see reversions to (temporary - who knows?) hotel deals run by cash burning silicon valley outfits. That’s gotta be a sign of the apocalypse.
But Fannie/Freddie don’t buy the mortgages on these buildings the way they do for individual shacks… do they??
“The Fannie Mae DUS Multifamily Loan program is one of the single largest sources of capital to the multifamily housing market.”
http://www.crefcoa.com/fannie-mae-products.html
This AEI symposium on the GSEs was quite interesting and informative: http://www.aei.org/events/should-fannie-mae-and-freddie-mac-be-shrinking-or-expanding-their-activities/
‘Once a building is completed, it can take a year or two to fill up.’
Maybe if there isn’t enough demand.
‘these are the newest and nicest buildings in the city.’ The company recently received $3.94 million in seed funding’
So you aren’t making a profit either.
“They think that their hosue, not yet finished, is now worth about $100,000 less than the $639,900 they agreed to pay.”
https://www.thestar.com/business/real_estate/2018/07/29/first-time-homebuyers-in-barrie-squeezed-by-falling-property-values.html
‘That’s an annual countywide drop of 2.2 percent and it shows a steady decline in metro-area rental prices from a peak of $1,672 a month in October 2017. Bellingham rents have been falling steadily since a peak of $1,734 in October 2017′
‘Tom Follis, a Bellingham real estate appraiser and broker, said he suspects that the Zillow report is an aberration. ‘I think it’s an anomaly rather than a trend,’ Follis said. ‘There a lot of ‘for rent’ signs out, no question. But they’re aimed at the college students.’
An appraiser and a broker. That’s convenient. So the guys holding the vacant apartments can just go down to the bank and say, “hey I can’t pay my mortgage - it’s aimed at college students!”
My daughter is at WWU Bellingham, and the rents are indeed high around the campus with the students packed-in tight sometimes two to a bedroom. The curbside trash piles at the end of the Spring quarter reminded me of California. A simple meal in a trendy diner downtown is nearly $20/person. But it was no different than when I was at CalPoly SLO.
Certain locations will always have something - usually closeness to campus/corporate HQ/etc that lots of people want/need- that gives them a price premium.
That doesn’t make them immune to downturns though, just gives them a relative premium, and the supply of preferred locations is constrained by definition.
Rents have fallen 10% in 9 months time. Can you say cr8er? That’s an absolute free fall.
‘The owner of a 221-unit apartment tower on Howard Street has put the building on the market less than two years after purchasing the property for $46 million…The 2008-built building has been sold three times since falling into foreclosure during the Great Recession, Crain’s reported.’
Each flip for big profits no doubt.
‘Due to increasing supply of rental property along the North Shore, the median cost of apartments has grown at less than half of the rate of the Chicago suburbs overall. There are nearly 1,000 new apartment units currently planned or being built in Evanston, which has increased the risk of oversupplying the market’
And why wouldn’t they build a thousand apartments? They can sell them for twice what it costs to build. At least that’s what has been going on for a few years now.
And then:
‘a veteran local builder cautions against further investment in rental properties. ‘Anyone building rental units right now is making a mistake,’ said Rick Jenkins, who has constructed apartments as well as single-family homes. ‘The market is very soft in newer, higher-priced units … that are renting for $1,000 per month or more.’
But by this time it’s too late, and they’re fooked.
‘The market is very soft in newer, higher-priced units’
Here’s a question for the media I keep coming back to: how can a country this size see such whopping numbers of “high-end” apartments and condos in every major metro, but also in small cities and towns all over Kansas, Iowa, Indiana, etc? That’s a pretty unlikely outcome if you think about supply and demand.
Maybe there’s something else going on.
I was wondering the same thing. With nothing but high-end apartments being built, it seems like a developer could make a killing building mid-tier apartments. Finding tenants would be no problem. Yet there are no such apartments being built. Is there some kind of tacit agreement among developers that none of them will build apartments that bring down rent prices?
‘tacit agreement among developers that none of them will build apartments that bring down rent prices’
No, it’s the prevailing cost of land. Near urban land all over the US doubled or tripled starting around 2012. This is where the root of the bubble is. If land was affordable, structures couldn’t command bubble prices.
So the only apartments/condos that “pencil out” at bubble land prices are luxury, etc.
Someone on Wolfstreet theorized that since many of the loans are government backed they will become future low income housing.
I think they will get sold as condos.
uh oh 2011 Binghamton flooding, look closely where the rivers meet there was high damage at that location…..I had a relative ( who since passed) in the city back then
https://www.wunderground.com/blog/JeffMasters/tropical-storm-lees-flood-in-binghamton-was-global-warming-the-final.html
https://www.weather.gov/bgm/pastFloodSeptember072011
This is worth saving for later this evening. Enjoy!
“The Money Deluge - How the Rich get Richer”
https://www.youtube.com/watch?v=t6m49vNjEGs
Louisville, CO Housing Prices Crater 8% YOY As Depreciation And Property Taxes Clobber Boulder Area Homeowners
https://www.zillow.com/louisville-co/home-values/
*Select price from dropdown menu on first chart
‘Rents in Bellingham and other Whatcom County cities have declined in the past several months…but local observers say they’re not seeing rent declines and don’t see the housing crisis easing’
This is an interesting statement. Just why do these local observers (REIC) cling so tightly to the idea of a crisis?
‘Rental rates for the apartments are comparable to the mortgage payments on a huge Binghamton home’
Oh, right, higher rents mean more shack sales, or so the story goes. And this explains why the “local observers” always responded with glee at every increase in rents the past few years. Now: “It’s still a crisis everybody! Shortage! Ignore all those for rent signs!”
What a bunch of a–hats.
But why *wouldn’t* higher rents mean more shack sales? High rent is why I bought my shack, and another million renters who bought probably felt that same as I did.
A two-bed for $2440? You can buy a 2/2 condo for less than half that, within a couple blocks:
https://www.zillow.com/homedetails/19-Front-St-J-Binghamton-NY-13-5/29720856_zpid/?fullpage=true
Willing to drive 1 minutes to downtown? You can get something a little nicer for about the same price:
https://www.zillow.com/homedetails/147-Hudson-St-Johnson-City-NY-137-/54573618_zpid/?fullpage=true
Bellevue, WA Rental Rates Crater 12% YOY As Seattle Housing Prices Plummet
https://www.zillow.com/downtown-bellevue-wa/home-values/
*Select price from dropdown menu on rental chart
The sidebar advert on HBB is for a new two-building complex of el-luxo airbox rentals in downtown DC:
http://www.lydianlyric.com
One building is a little more luxe than the other, but neither offers much in the way of amenities: Luxe kitchens, dog-wash station, pool deck with outdoor kitchen, WiFi.
1 bed / 1 bath: $2400-2700/mo.
2 bed / 2 bath: $4400/mo.
They are offering one month free rent for new leases. Oh wowee!
Only TWO of the 200+ units are 2 bed/2 bath. So there is almost no possibility of living with a roommate.
Good luck to them.
Realtors are liars.
Tyson has a new $ 800 per square ft condo opening
$ 800 sq ft is 800k for 2/2 + HOA
instead buy a teardown in pimmit hills and rebuild
Tear downs in Pimmit Hills are 600k.
Looking at the available units, I see 3x 2-bedroom units, but going by the flooplan layout, only ~7% of the units are 2 bedroom, the rest 1 bedroom or 0 bedrooms (the Urban loft plan).
Like nearly all the new construction, they need to maximize the dollars per sq/ft coming in, which means smaller units - demographics be dammed. No 3 bedrooms and even the 2 bedroom layout doesn’t look very suitable for anyone with kids.
Colleyville, TX Housing Crater 5% YOY As Inventory Backs Up Leaving Dallas Area Sellers Desperate
https://www.movoto.com/colleyville-tx/market-trends/
One-bedroom apartments in the Finishing House will be around 1,000 square feet, commanding about $1,500 to $2,000 in monthly rents.
What a waste. My block of Cold War shacks can fit 3 beds in 1000 square feet. Instead, they should have built 500 sq ft studios at $700 each and they would fill up in a microsecond. My first apt was a 540 sq ft 1/1. Cozy but adequate.
Sounds like my first house. It was 65 yrs old.
Loved it.
Binghamton n terra haute (hot earth)
2 hot spots
The bubble pop will be accelerated w re tax increases
Centreville VA Housing Prices Crater 8% YOY As Housing Correction Whacks NoVa/DC Market
https://www.movoto.com/centreville-va/market-trends/
Darn hangovers! Parties would be so much funner without them.
Prepare for the biggest stock-market selloff in months, Morgan Stanley warns
Published: July 30, 2018 12:03 p.m. ET
‘We think the selling has just begun,’ analysts say
By Ryan Vlastelica
Markets reporter
The U.S. stock market has been partying all throughout July, and a hangover is coming.
That’s according to analysts at Morgan Stanley, who said that Wall Street’s rally is showing signs of “exhaustion,” and that with major positive catalysts for trading now in the rearview mirror, there’s little that could continue to propel equities higher.
…
job requirements,supervision property agent, CalVet home loans
1. Basic principles of land economics.
2. General concepts and practices in property appraisal and building construction.
3. Principles, methods and techniques involved in real property appraisal.
4. Provisions of the Military and Veterans Code as it relates to real property.
5. Legal procedures and documents involved in real property transactions.
6. Real property law.
7. Common methods of describing real property.
8. Property values and the effect of social, economic and political trends upon value, price and cost of
improvements.
9. Provisions of the Military and Veterans Code and departmental rules relating to the purchase of farms
and homes for veterans.
10. California real estate law and practice.
11. Principles and methods of appraisal, title examination, building plans analysis, minimum property
standards, and building codes relating to acquisition of property for veterans.
12. Materials, methods, equipment, and practices used in the construction and inspection of single-family
dwellings.
13. Principles of functional planning, design, and plot planning for residences.
14. Identification of structural instability and hazards to real property.
15. Legal procedures, instruments, and terminology used in purchasing, selling, renting, leasing, and
repossessing real property.
16. Basic training methods and principles of supervision.
17. Legal opinions, court decisions, pending legislation, departmental rules and policies relating to
acquisition of property for veterans, economic trends, growth patterns and other factors which may
affect property values, loan demand or otherwise bear on the operation of the Val-Vet loan program.
18. Principles of management.
19. Operating methods and practices of headquarters sections.
20. Principles and practices of developing community relations and disseminating public information.
21. The Department’s Equal Employment Opportunity Program objectives.
22. A manager’s role in the Equal Employment Opportunity Program and the processes available to meet
equal employment opportunity objectives.
23. Methods of directing regional operations to achieve efficient and effective program implementation.
24. Management problem-solving techniques for effective decision-making.
25. Principles of policy development and formulation.
!00K a year
What is Dr Copper trying to tell us?
Chile
Chile is canary in copper mine as price of metal falls
Country’s economy is caught in fallout from China slowdown and trade wars
Economic reforms in Chile have been thrown in to doubt by a plunge in the price of copper © EPA
Benedict Mander in Buenos Aires 4 hours ago
Concerns are growing in Chile that it could be the first country in resource-rich South America to feel the impact of the slowdown in China and the US’s escalating trade war with Beijing, with a fall in copper prices already putting pressure on the economic agenda of President Sebastián Piñera.
…
The challenges faced by Chile are a warning signal for other commodity exporters in the region, economists said, especially given the metal’s reputation for predicting turning points in the global economy.
“[Copper] could be something of a canary in the coal mine,” said Carlos Végh, World Bank chief economist for Latin America and the Caribbean. “If there are fundamentals in the world economy that cause commodity prices to fall in the near future, then it may well be that copper is proving to be the first victim.”
…
https://www.youtube.com/watch?v=XopSDJq6w8E
Chinese ghost cites falling apart
Hi Ben,
I seldom post but I thought you might appreciate this story that appeared in The Bohemian, a very small newspaper here in Sonoma County that is passed out for free around towns. The author does a great job reporting the “brown envelopes of cash” that get passed around between developers and local politicians. This story describes an 860 unit proposed development on 82 acres that the developer wants to squeeze in on a site that may be on an earthquake fault and is definitely in a possible wildfire path.
This is the follow up story that explains the judge’s ruling:
Note that the judge states that since there are no minutes for the behind closed door meeting, we can’t accuse the Board of Supervisors of any violation of The Brown Act. That’s a reassuring message to anyone who thinks they might want to violate The Brown Act and get away with it.
Oh, bother. Sorry about the lack of link. The two stories are at Bohemian.com. The first one is entitled The Fate of Chanate. The second one is Judge Spikes Chanate Agreement. I’ll try to link them below but apparently this is difficult for me. No wonder I seldom post!
https://www.bohemian.com/northbay/the-fate-of-chanate/Content?oid=6621048
https://www.bohemian.com/northbay/judge-spikes-chanate-agreement/Content?oid=6630635
Tanks Pat, fun.$ad read, love the $henanigans $miling $limy deviloper$ try to pull over on the $leeping citizen$.
& the beat$ goe$ on, & the beat$ goe$ on …
Thank you, hwy! I was impressed at how well this tiny paper covered this story. Our big paper, The Press Democrat, didn’t do nearly as well. I suspect the PD is concerned about making our local Board of Supes and our local developers look bad. This developer is currently in hot water because a senior complex he built burnt to the ground during the fires and the staff abandoned many of the residents, some whom were in wheel chairs and some with dementia. No one died because family members came in and heroically moved these residents out themselves in the dark, with no electricity through the flames. My 88 year old father and I had gone out to this senior complex weeks before the fire to check it out and the thought of trying to rescue him, the way these family members had to rescue their loved ones, still makes me very angry. These developers are only in it for the money.
These developers are only in it for the money.
Why is this such a surprise to you?
No surprise. Simply stating a fact.
Kings Beach CA Housing Prices Crater 16% YOY
https://www.movoto.com/kings-beach-ca/market-trends/
“Rents in Bellingham and other Whatcom County cities have declined in the past several months according to a new study, but local observers say they’re not seeing rent declines and don’t see the housing crisis easing.”
Denial ain’t a river in Egypt…
“Average monthly rent for the Bellingham metro area was $1,547 in June, according to Zillow. … Bellingham rents have been falling steadily since a peak of $1,734 in October 2017, according to Zillow.”
June 2018 was eight months since October 2017. The annual rate of rent decline is thus
((1547/1734)^(12/8)-1)*100% = -15.7%.
So much for Oxide’s failed theory that rents always go up.
Somewhere, right now, is a Realtor who is lying to you.
Even if you can’t hear it, that Realtor is lying…
Take a look Apt401… Published 2 days ago.
Are Realtors lying?
“REALTORS report strong demand”
http://www.wellsvilledaily.com/news/20180728/strongrealtors-report-strong-demandstrong
And do you know why that is, Apartment 401? It’s because realtoRs are liars.
Borrowed from
Mike & The Mechanics Lyrics
“The Living Years”
Say it loud, say it clear
You can listen as well as you hear
It’s too late when we buy
To admit we don’t know Realtors Lie
Raising re taxes faster than appreciation
= upstate ny,western pa,
House prices going up less than inflation
CA w prop 13 just the opposite
Discuss
Well, it seems like that would be a one, two combo that arrest any increase in prices and quickly start the decline. I was visiting my mom and step father this summer and I happened to see the property tax assessment for their cabin. It is a modest place in what I would consider an economically challenged area since it is located far away from any major employer or university and is not close to a major highway or freeway. The property tax assessment was about 3 month’s of our rent. The money that they spend on upkeep and maintaining this place just seems foolish.
I posted that research article last week about how 2 out of 5 homes are owned by boomers and that demography is destiny. In 10 years there will be a massive sell-off. It’s not the 65-75 year-olds that sell, its the 75-85 who sell (downsize, move to nursing home, move back in with family, etc.).
Prices
Littleton, CO Housing Prices Crater 22% YOY
https://www.movoto.com/littleton-co/market-trends/
Swooping. Apartments are starting to swoop now. Whatever happened to the days when an apartment would behave itself and stand still while you lived in it? No, modern apartments have to swoop. I predict a lot of broken lamps.