It Is Very Much A Confidence Game
It’s Friday desk clearing time for this blogger. “The price of a tech mogul’s Los Altos Hills compound is now listed for about $38 million less than the original asking price, Socket Site has discovered. In Silicon Valley, where real estate is scarce and high-paying jobs abundant, homes famously sell for over asking, so it’s interesting that the price on this one has dropped so dramatically. The house at 27500 La Vida Real first went on the market with a big splash for $88 million in November 2015. The five-bedroom, 12-bathroom home never sold and the price was then dropped to $68 million last May and then to $55 million in June. Still without a buyer, is now listed for $49.99 million, that’s roughly 43 percent less from the original asking price.”
“Loudoun County Supervisor Matt Letourneau said residents often oppose any move to add housing in their communities for one simple reason. ‘They’re tired of sitting in traffic,’ he said. ‘Frederick County, Maryland, and Loudoun County, Virginia — both are seeing a lot of growth in housing. Route 15 goes between those two — it’s a parking lot from Leesburg to Point of Rocks,’ Letourneau said. ‘Every afternoon. I mean, literally, a parking lot.’”
“John Foust, a Fairfax County Supervisor said there’s no shortage of market-priced housing. ‘The challenge is obviously what the market won’t deliver — and that is affordable and workforce housing,’ he said.”
“They each saw year-over-year declines, but Arlington’s was smaller and, as a result, the county posted the largest average per-square-foot price for real estate across Northern Virginia in August. At an average of $456 per square foot, Arlington was down 3.4 percent from $472 a year before, but Falls Church (which had seen a per-square-foot cost of $530 in August 2017) was down 18.3 percent to $433. Alexandria, which placed third in Northern Virginia at $374, was down $22 per square foot, or 5.6 percent, for the month.”
“A rise in interest rates and slowing home sales have caused a decline in Dallas-Fort Worth residential mortgage activity. North Texas home loan activity fell 6 percent in the second quarter compared with the same period last year, according to Attom Data Solutions. The number of D-FW home purchase loans was down 15 percent. Any decline in home loan originations is significant for North Texas, which has one of the country’s largest concentrations of mortgage industry businesses and workers. Several companies have already begun cutting back on the ranks of workers because of the reduced loan activity.”
“The decline in home mortgage activity in North Texas comes as housing activity is slowing in many neighborhoods. ‘I would expect this somewhat disappointing spring selling season will be a bit of a wake-up call for home sellers, and they will eventually consider lowering asking prices, which in turn will bring some buyers back to the table,’ said Daren Blomquist, senior vice president at Attom Data Solutions.”
“The Foxrock childhood home of Nobel laureate and writer Samuel Beckett, which has been on the market since 2013, has dropped its asking price by €1 million following a change of selling agent. Cooldrinagh was originally brought to market in the depths of the downturn, seeking an ambitious €4.25 million. This price was later amended to €3.5 million, though it still failed to attract buyer interest. Now the property is being returned to market with a 21 per cent price drop and a €2.75 million asking price.”
“The fall in rents has created a lot of buzz in the real estate market with tenants taking advantage of the situation, going for better options. ‘The rents have gone down between 15 and 20 per cent in many areas. This has given people an opportunity to negotiate with their landlords or look for other options as new buildings keep coming up,’ Salman Jalil, head of property division at Al Balushi Investments, told Muscat Daily.”
“Q: Can you say that the administration of high rents by landlords and realtors was responsible for the large number of vacant houses in Ikoyi, Lekki and Maitaima among others? Chief Kola Akomolede, Principal Partner, Kola Akomolede and Co: Again this is another problem we had, over the years during the boom years; we were living in artificial economy. The rents people were paying were just unreasonable. The high rents were not determined by market forces. For example, people are paying as much as $100,000 on a 3-bedroom flat in Ikoyi. I don’t know anywhere, even in America where people pay $100,000 as rent for a 3-bedroom flat; talk less of Ikoyi in Lagos? The rent was artificial. So with the boom coming to an end, some of the owners found it difficult to see the reality when rents started falling and people were asking them to take $50,000 and $40,000.”
“Initially they were saying no because the reality did not dawn on them on time. Some of them are still vacant till today because of the owner are not yet aware that the situation that created that artificial rent is no longer there. There still have those artificial rents especially in Lagos and Abuja. But the truth is that nobody that works honestly will be able to be paying $100,000 as rent. That is why some of these houses are still vacant.”
“The number of construction permits issued by the government rose more than 10 percent from a year earlier in the first seven months of this year. Liu Pei-chen, a research fellow at the Taiwan Institute of Economic Research, said it remains to be seen whether the local property market has bounced back. The economist said the local property market has been faced with a supply glut, so even though the value of the newly launched housing projects is expected to hit NT$1 trillion (US$32.47 billion) this year, less than 40 percent of the projects are expected to be sold. Liu said the local property market remained awash in empty homes.”
“An investor who purchased an off-the-plan ‘dream home’ in Brisbane from cold-calling property spruikers lost more than one-third of its value when he resold, despite several years of booming residential property markets. Mal Jones, a father of three, says he was persuaded by a ‘free’ trip to Queensland with his wife, Michelle, and persuasive pitches about tax breaks, leveraging and confident predictions about future growth.”
“But eight years after investing $415,000 (including commissions, management and refinancing costs), the property was sold for $295,000 – a loss of $120,000, or almost 29 per cent. ‘I trusted advisers’ professional opinion,’ Jones, whose children are aged between and 17 and 27, says about the deal. ‘It is very much a confidence game about future returns and I bought into it,’ he says. ‘I feel stupid about the outcome. I should have done more due diligence.’”
“In 2010 Jones accepted an invitation from a cold caller to have an adviser from Reventon, a Melbourne-based property company, visit his Eltham home for a ‘free’ consultation valued at $300. Property prices were running red hot in 2010 after a succession of interest rate cuts intended to protect the Australian economy from the global financial crisis. His purchase was financed with two loans with interest rates of more than 7 per cent. The intention was to find a tenant and let rent pay off the mortgages as rising capital boosted the resale value.”
“But property prices tanked and the highest weekly rent was $350, which meant an annual shortfall of about $12,000. Jones estimates total commission payments to be more than $40,000. ‘Foolishly we believed everything we were told about rising markets, capital gains and rental income,’ says Jones, who wishes he had consulted with his accountant and third parties to analyse the deal. ‘I went into the deal with eyes wide open,’ he says. ‘It looked too good to be true – and it was.’”
“Jones says he is grateful he got out when he did because similar properties in the same postcode are selling for even less.”
“His experience is consistent with market analysis by BIS Oxford Economics that found the number of negative or flat off-the-plan transactions in Brisbane was 26 per cent and 53 per cent respectively. ‘The substantial apartment pipeline, particularly in inner Melbourne and inner Brisbane, will deepen this issue with commencements on track to increase and remain high in the next two years,’ it concludes.”
‘In Silicon Valley, where real estate is scarce and high-paying jobs abundant, homes famously sell for over asking, so it’s interesting that the price on this one has dropped so dramatically’
Eee-bola!
So here in Milpitas, there was this apartment I was looking at in June this year. Very nice, recently built (in 06/07) and near the Great Mall. We went there for a tour and asked about any discount or concession. None! I went elsewhere. Today, there are many units for rent and they are offering 6 weeks free.
Checkout Amalfi Apartments on Zillow
“LEASE BY 9/16 AND GET 6 WEEKS FREE RENT + $500 OFF ADDITIONAL CONCESSION ON SELECT UNITS!”
Nice place but I need an attached garage. With 2 young kids, I can’t have them running around in the parking garage. A ton of new buildings…
Just wait until after Halloween. Halloween to Valentine’s day is the dead zone for leasing, unless of course you live in a university town. Leasing agents have a big incentive to fill up the place in the next 6 weeks.
“The house at 27500 La Vida Real first went on the market with a big splash for $88 million in November 2015. The five-bedroom, 12-bathroom home never sold and the price was then dropped to $68 million last May and then to $55 million in June. Still without a buyer, is now listed for $49.99 million, that’s roughly 43 percent less from the original asking price.”
I’m trying to figure out what is remarkable about the situation. Is it that prices are falling, or rather than the ask price was way above what the market could bear, even at the peak of the greatest Housing Bubble in human history?
27500 La Vida Real
Sold for $4.5mil in 2004. LOL
I’m curious how much land comes with the joint, if Zillow shows the correct property boundary. Lots of trees around the entire property — much bigger lot than anything surrounding it anyway. Still though, someone is high on his own supply wanting that much cash. I do find it funny there are that many crappers in the house though. Guess it’s set up for party-central.
‘Any decline in home loan originations is significant for North Texas, which has one of the country’s largest concentrations of mortgage industry businesses and workers. Several companies have already begun cutting back on the ranks of workers because of the reduced loan activity’
Oh dear…
mortgage industry businesses and workers
Let them eat ramen.
“Let them eat ramen.”
Hehe… generic too, not Top Ramen.
Mal Jones, a father of three, says he was persuaded by a ‘free’ trip to Queensland with his wife, Michelle, and persuasive pitches about tax breaks, leveraging and confident predictions about future growth.”
Stupid should hurt.
Free stuff can be some of your most expensive decisions.
And nothing is more expensive than free stuff from the government
“Initially they were saying no because the reality did not dawn on them on time. Some of them are still vacant till today because of the owner are not yet aware that the situation that created that artificial rent is no longer there.
Slapping vacancy taxes on greedhead owners and landlords would fix a lot of problems.
Or just stop giving them incentives to keep places empty.
Tax changes will make people in many states actually have to pay the taxes that are already in place. Appreciation has already stopped and in many places reversed; the refi churn that vacant dwelling speculators rely on as a substitute for rental income will follow. Up to now it hasn’t looked expensive to keep places empty, but it will be soon.
His purchase was financed with two loans with interest rates of more than 7 per cent. The intention was to find a tenant and let rent pay off the mortgages as rising capital boosted the resale value.”
“But property prices tanked and the highest weekly rent was $350, which meant an annual shortfall of about $12,000.
How many speculators made flawed assumptions about rental income, as well as endless appreciation, that are now biting them in the a$$? Our boy Jones is likely emblematic of millions of greedy speculators who counted on renters to cover their mortgage while their shack kept appreciating to new heights. Now they’re discovering the joys of cratering prices and renters who feel under no obligation to make their mortgage payment when there’s much better deals to be had.
I hope speculators like this (and their lenders) get so badly burned that they will be a cautionary tale for a generation to come.
I didnt want to pull the equity but it was just sitting there. I wanted to put it to work. Can u blame an american?
My son rents a house in San Francisco. It is owned by a Chinese tech worker who moved back to China. The rent of $50k/year is $20k short of covering the PITI.
We are wondering how long the owner will continue the housing subsidy.
Are you sure he has a mortgage on it?
Yes. $950k, fixed at 3% for 7 years. Paid $1.4M.
San Francisco, CA Housing Prices Crater 13% YOY As Housing Glut And Defective Appraisals Ravage Bay Area Homeowners
https://www.zillow.com/san-francisco-ca-94109/home-values/
*Select price from dropdown menu on first chart
So f’in brutal. $100K for rent in Lagos Nigeria. Other than foreign oil company managers - who would pay.
I love it - artificial vs market vs (we are in trouble) rent. Oh well.
“Initially they were saying no because the reality did not dawn on them on time. Some of them are still vacant till today because of the owner are not yet aware that the situation that created that artificial rent is no longer there. There still have those artificial rents especially in Lagos and Abuja. But the truth is that nobody that works honestly will be able to be paying $100,000 as rent. That is why some of these houses are still vacant.”
A comedy writer doesn’t have to write jokes, he just has to read the news …
“An investor who purchased an off-the-plan ‘dream home’ in Brisbane from cold-calling property spruikers lost more than one-third of its value when he resold, despite several years of booming residential property markets.”
See what I mean? Bahahahahahahahaha.
“Mal Jones, a father of three, says he was persuaded by a ‘free’ trip to Queensland with his wife, Michelle, and persuasive pitches about tax breaks, leveraging and confident predictions about future growth.”
The most expensive trip he and his wife are ever likely to take is the FREE trip to Queensland.
“But eight years after investing $415,000 (including commissions, management and refinancing costs), the property was sold for $295,000 – a loss of $120,000, or almost 29 per cent.”
Now comes the punch line …
“‘I trusted advisers’ professional opinion,’ Jones, whose children are aged between and 17 and 27, says about the deal. ‘It is very much a confidence game about future returns and I bought into it,’ he says. ‘I feel stupid about the outcome. I should have done more due diligence.’”
Bahahahahahahahahahahah (Ben, you really need to find a way to add a laugh track to your blog).
“In 2010 Jones accepted an invitation from a cold caller to have an adviser from Reventon, a Melbourne-based property company, visit his Eltham home for a ‘free’ consultation valued at $300. Property prices were running red hot in 2010 after a succession of interest rate cuts intended to protect the Australian economy from the global financial crisis. His purchase was financed with two loans with interest rates of more than 7 per cent.”
7 percent. 😁
“The intention was to find a tenant and let rent pay off the mortgages as rising capital boosted the resale value.”
😁
“But property prices tanked and the highest weekly rent was $350, which meant an annual shortfall of about $12,000. ”
What a surprise!
“Jones estimates total commission payments to be more than $40,000.”
😁
“‘Foolishly we believed everything we were told about rising markets, capital gains and rental income,’ says Jones, who wishes he had consulted with his accountant and third parties to analyse the deal.”
CAUTION: Surprise alert!
” ‘I went into the deal with eyes wide open,’ he says. ‘It looked too good to be true – ”
Steady yourself …
… and it was.’”
Amazing!
I’ll give this guy credit for being willing to share his bagholder tale of woe, knowing he’s going to be mocked and ridiculed for being such a greedy mark.
He said he did it to warn others. The articleis mainly about the dangers of off-plan (Australian for pre-construction condos) investing. As the report says, there are going to be many thousands more people like Mal.
Loudoun guy here. Route 15 between just north of Leesburg Outlet Mall and Point of Rocks is a parking lot because it’s only a one lane road with many people from Maryland using it instead of 270/Beltway to get to NoVa to work. It’ll never expand in the near future because Western Loudoun residents would never approve of it. They love their small town ‘Remember back when’ days of old.
Like their bumper sticker says “Don’t Fairfax Loudoun”!
‘At an average of $456 per square foot, Arlington was down 3.4 percent from $472 a year before, but Falls Church (which had seen a per-square-foot cost of $530 in August 2017) was down 18.3 percent to $433. Alexandria, which placed third in Northern Virginia at $374, was down $22 per square foot, or 5.6 percent, for the month’
18%?
Falls Church Eeee-bola!
I see it here in Loudoun too. More homes available for sale, much longer DOM, “Back on the market, sale fell through”, price cuts abound….I also saw my first short sale in a while! For such a booming “Everything is great” market there shouldn’t be a short sale.
Me thinks this Ebola is going to spread into the fall/winter.
September 11, 2018
From WTOP on DC. “When talking about D.C.’s hottest housing markets, new H Street, Columbia Heights and Petworth waterfronts usually float to the top. While Upper Northwest sells, overall the ultra high end of D.C.’s housing market has slowed, and multimillion dollar properties are the most likely category to see price cuts and long list-to-sell times.”
“‘A lot of foreign buyers have dried up because their home countries are making it harder for them to divest assets, and also it is more difficult for LLCs to buy because they now have to be named as to who the buyer is,’ Corey Burr, with TTR Sotheby’s International’s Chevy Chase office, told WTOP.”
http://thehousingbubbleblog.com/?p=10619
Are rents also falling around DC, or just home prices. Oxide?!
Falls Church has a growing “demographic” that has some people frightened. My doctor was a long time resident - but what she saw one 4th of July prompted her to sell her house and move to another more “patriotic” neighborhood.
Are you saying that white supremacists have moved in and ruined the neighborhood?
Are you saying that domestic terrorists attacks have not increased with our open borders?
“Of the 3,252,493 refugees admitted from 1975 to the end of 2015, 20 were terrorists, which amounted to 0.00062 percent of the total. In other words, one terrorist entered as a refugee for every 162,625 refugees who were not terrorists.
Refugees were not very successful at killing Americans in terrorist attacks. Of the 20, only three were successful in their attacks, killing a total of three people and imposing a total human cost of $45 million, or $13.84 per refugee visa issued. The three refugee terrorists were Cubans who committed their attacks in the 1970s and were admitted before the Refugee Act of 1980 created the modern rigorous refugee-screening procedures currently in place.”
https://www.snopes.com/news/2017/06/07/threat-extremists-more/
But sure, keep on worrying about your “demographic”.
Sticking to discussions about real estate - which is affected by open borders. Facts and liberalism don’t mix - so why bother ?
Of the 3,252,493 refugees admitted from 1975 to the end of 2015, 20 were terrorists, which amounted to 0.00062 percent of the total. In other words, one terrorist entered as a refugee for every 162,625 refugees who were not terrorists.
How many are hostile to the United States but haven’t yet resorted to violence since they know they do not have the numbers?
It’s facts and politicians that don’t mix.
And you’re the one that brought up the terrorist issue.
Yellen says “Fed should commit to future ‘booms’ to make up for major busts“. Basically keep interest rates low, let inflation run higher, let asset bubbles grow larger. Similar to Bernanke’s “high pressure economy.”
Just a few minor issues with that:
1) The Fed is a tool of the politicians. Historically, inflation harms their re-election chances.
2) Asset bubbles grow due to volatile speculative demand. Also, the longer they run, the more investment (human capital, physical investment, and debt) they draw in. Eventually, when the speculative demand tries to cash out (I used the word ‘volatile’ for a reason - it is an important part of this), the crash is socially harmful and leaves a lot of debt and dislocation in its wake.
3) Artificially low interest rates, lower than the market cost of renting money, leads to malinvestment and excessive risk taking by corporations. If a corporate leader can saddle a corporation with vast debt, and get a once-in-a-lifetime payout now (see private equity doing this to companies like Toys R Us and Colt, as well as reading Yellen’s husband’s paper, Nobel (equivalent) laureate Akerloff’s “Bankruptcy for Profit” paper), that leader will do so.
We have multiple natural experiments on this phenomenon - keeping interest rates artificially low for extended periods of time - and to paraphrase Greenspan, history has not dealt kindly with it.
On the other hand, post-bust Fed policy has been hugely lucrative for Wall Street…
You can make more money with a flop than a hit.
If one believes that the Austrian monetary over-stimulus theory plays a role in mal-investment, then allowing the economy to “run hot” is really just blowing the bubble bigger. But if you do not ascribe to that theory, and I suspect Yellen doesn’t as a labor economist, then her prescription might make sense. But I think it is absolute folly. Inflation hurts those at the bottom of the income distribution the most and these are the folks who have been left behind in the economic recovery. GDP growth can occur when all of the gains in wealth and income are narrowly distributed to the top .1% or top 10%.
This type of insanity reminds me of something my father used to absurdly to make a point about things that just can’t happen: “The firings will continue until morale improves.”
The version I learned was, “The beatings will continue until morale improves.” I believe this version is applicable to an inmate population, not a workforce.
RE: ‘…allowing the economy to “run hot” is really just blowing the bubble bigger.’
Also longer. Long-time posters will recall speculation here circa 2008 that prices would bottom out by 2013. Instead, quantitative easing targeted on the housing sector was used to reflate prices, bringing back dismally low affordability before prices were able to reach a fundamental bottom. Who knows if the Fed will continue its targeted support of housing prices under new leadership?
4) With greatly protracted booms, the boom-bust cycle frequency is sufficiently attenuated so that whoever’s policy drove the boom phase is long gone from office by the onset of the next bust.
Very true. I think what we’ve seen up to about the beginning of this year was mostly the last administration. The new tax law is having a huge impact on cash repatriation and share buy backs and some impact on capital investments. We won’t really know until about mid next year how the tax laws will start to impact the broader economy. It will probably be in January when the tariffs have an impact because of lag.
i pulled some equity to put grub on the table.
$ounds like financial “pulled-pork” pita$ on yer menu
Burke, VA Housing Prices Crater 9% YOY As DC/NoVA Housing Glut Escalates
https://www.movoto.com/burke-va/market-trends/
I asked my 12 year old paperboy what he thought about this and he told me that this should not be treated as some sort of unforseen revelation because the numbers were there all along.
“What’s killing Sears? Its own retirees, the CEO says”
https://money.cnn.com/2018/09/14/news/companies/sears-pension-retirees/index.html
I would add People took the anti smoking campaigns seriously and retiree benefits such as early retirement at 55 with full pay, pension spiking should have ended long ago because 40% smoked back then VS 13% today and people were not expected to live long and lots should have died by now from lung cancer obesity heart attacks.
I think the actuaries never were tough enough with lawmakers and corporate executives, and should have adjusted the payouts for this, pensioners were supposed to work 30 year and payout for 15 not 30 and 30.
“Sears, originally a mail-order catalog company…”
Ironically Sears was Amazon without the Internet.
If Sears closes enough stores, they might be able to just being a mail-order catalog company again, but over the internet.
“Top housing regulator Mel Watt declined to participate in an investigation of claims that he had sexually harassed a woman who worked for him, according to portions of the investigator’s report obtained by POLITICO.
Agency employee Simone Grimes this year accused Watt, who oversees mortgage-financing giants Fannie Mae and Freddie Mac, of repeatedly making sexual advances when she tried to discuss salary concerns.”
https://www.politico.com/story/2018/09/14/mel-watt-harassment-1933046
“…declined to participate in an investigation…”
Isn’t that special. How come all the other prominent men whose careers were destroyed by Me2 allegations couldn’t play that card?
Project Veritas — We are unmasking the Deep State. Here’s why:
https://www.projectveritas.com/2018/09/14/unmasking-the-deep-state-manifesto/
Mr. Banker, China commits heresy and says that housing is not for speculation:
http://www.chinadaily.com.cn/a/201809/14/WS5b9b4be1a31033b4f465613e.html
Key language for the China Daily Post:
The new rules aim to adhere to the policy that “houses are for living, not for speculation,” said the Beijing Municipal Housing Provident Fund Management Center, adding that the government will lead Beijing citizens toward more rational housing consumption.
According to the National Bureau of Statistics, China’s property market remains generally stable, with new home prices in four first-tier cities — Beijing, Shanghai, Shenzhen and Guangzhou — rising 0.2 percent in July from a month ago.
The new rules come as no surprise, showing Beijing’s property market is still under strict control, which is also in line with the overall planning of provident fund loans, said Yan Yuejin, research director with the E-house China R&D Institute.
‘Key language’
That’s a few years old.
The policy but not the article. The globalists do not want a Chinese collapse and are actively preventing policies that would cause that to happen. The Chinese collapse is a prerequisite to any global housing bubble burst. We are seeing signs of a weaken China and that is in Australia and countries most tied in to the Chinese speculators. But to pop the bubble you need a Chinese collapse not a Chinese slowdown. The US should facilitate that collapse but the PTB will remove Trump from office before they will allow that to happen.
“The US should facilitate that collapse but the PTB will remove Trump from office before they will allow that to happen.”
Which PTB? The masked Deep State?
I thought that the U.S. President was chosen by election, but now I stand corrected.
Are you blind, you do not see the measures that the deep state took to ignore the crimes of Hillary? Do you not see the efforts being made to force people to compose and implicate Trump to avoid jail time? The crimes they are charged with are the usual slap on the wrist crimes that all the swamp creatures engage in with impunity. You have Rothstein actually advise Trump to fire Comey and then find that a special prosecutor needs to be named when he follows the written advice. What we are seeing is an attempted coup occurring due to Trump’s opposition to open borders and unfair trade deals. No wonder you missed the opportunity to buy in San Diego at half the price.
Cannot wait until this tape comes out:
https://www.thegatewaypundit.com/2018/09/breaking-james-okeefe-teases-next-weeks-hit-deep-state-should-be-worried/
Just one example: 2yrs ago, china was on the brink of collapse, but the Fed swooped in to save china– the same Fed that collapsed the US on numerous occasions.
In 2015/2016 we saw the Chinese economy skidding, the Shanghai stock market was down, the yuan, the Chinese currency, was depreciating, all the opposite of what we’d seen the years before that.
China was to naturally go into recession like everywhere else. That sent shock waves to the globalists because the Chinese economy, their most sacred cow, was under threat of a recession .
But globalists, once again, intervened and saved China from a recession.
Crucially, what traitorous Janet Yellen’s Fed did was to cushion China’s huge ponzi problems by very globalist policies from the American side. It put off raising American interest rates so as to ensure that China would become a military superpower and would not collapse.
An example of a globalist trying to tell us that hurting the Chinese economy is bad. I guess we should wait while an aggressive military power continues to get more wealthy and militarily strong with our money and technology:
https://finance.yahoo.com/news/apos-regret-apos-trump-apos-082700718.html
The comments to the story are intelligent and insightful.
Also from the China mouthpiece: “This infant formula is safe. So are these vaccines. There is no problem with this pork either.”
as an american you are entitled to free money via home equity.
Update to a home I’ve been watching (posted on here recently), the Home just sold at over 50% off the asking price last year. My areas RE market is seeing some good reductions but still has a long way to go.
https://www.zillow.com/homedetails/2920-Granite-Creek-Rd-Scotts-Valley-CA-95066/16122806_zpid/
Price History
DATE EVENT PRICE
09/14/18 Sold $2,175,000
09/10/18 Listing removed $2,498,000
07/26/18 Back on market $2,498,000
06/30/18 Pending sale $2,498,000
05/29/18 Price change $2,498,000
04/15/18 Price change $2,698,000
03/06/18 Listed for sale $2,998,000
01/23/18 Listing removed $3,999,000
11/20/17 Price change $3,999,000
11/04/17 Listed for sale $4,479,000
08/27/04 Sold $2,000,000
03/28/96 Sold $700,000
11/06/95 Sold $720,000
Perhaps the more salient details than the fantastically optimistic opening price in the Dutch auction sale are
1. It sold in 2004 for almost three times the 1995 price;
2. The eventual 2018 sale price barely exceeded the 2004 sale price, suggesting this investor lost money after transaction and holding costs;
3. Given that the Fed is taking away the punchbowl and investors are heading to the exits, losses for those investors who haven’t sold yet are likely to worsen from here on out to the final death throes of the mania.
One example: 2yrs ago, china was on the brink of recession, but the Fed swooped in to save china– the same Fed that collapsed the West on numerous occasions,
In 2015/2016 we saw the Chinese economy skidding, the Shanghai stock market was down, the yuan, the Chinese currency, was depreciating, all the opposite of what we’d seen the years before that.
China was to naturally go into a recession, just like every other country. That sent shock waves to the globalists because the China was their most sacred cow.
So globalist traitors, once again, intervened and saved China from recession.
Crucially, what traitorous Janet Yellen’s Fed did was to cushion China’s huge ass ponzi problems by very homosexual globalist policies from the American side. It put off raising American interest rates so as to ensure that China would become a military superpower and would not collapse.
Will U.S. Dollars Fix Israel’s Economy? (1985)
https://www.washingtonpost.com/archive/opinions/1985/06/09/will-us-dollars-fix-israels-economy/3e670715-737f-409d-8943-d943675e1a58/
Yet China is collapsing anyways.