A Pocketful Of Sand In California
The Santa Cruz Sentinel reports from California. “This year, 380 notices of default have been posted for Santa Cruz County property owners behind on their mortgage payments. That’s double the number at this time in 2007 and more than was issued in all of 2005. Already, 130 homes have been sold at foreclosure sales this year, compared to 29 at this time in 2007. William Purdy, a Soquel real estate attorney, sees the economy spiraling downward.”
“‘Two or three people a day come in to see us about their real estate investments going sour,’ he said. ‘Homes with $700,000 to $800,000 debt are worth only $500,000. When the market turns and you’re leveraged to the max, you have a pocketful of sand.’”
“‘I told you last year there was a tidal wave coming,’ said Purdy. ‘It’s wave after wave. People are flocking to bankruptcy court.’”
“One example he cited: A salesman with a six-figure income who earned nothing in January and February.”
“‘It’s like watching a million people handcuffed,’ Purdy said. ‘You see some fall into the water and drown. You notice some of the ones drowning are pulling others off the boat. Then you notice your handcuffs and you’re going to be in the water.’”
The Contra Costa Times. “Adjusted for seasonal changes, the East Bay lost 100 jobs in February. That came on top of a January loss of 5,300 jobs, also seasonally adjusted, the Employment Development Department reported.”
“A widening array of housing and mortgage woes have descended on the East Bay with a vengeance.”
“‘The East Bay is seeing the effect of the housing market,’ said Jon Haveman, a partner and economist Beacon Economics. ‘Housing permeates into all the other sectors of the economy.’”
“Some industries linked directly to housing have suffered job losses over the last several months. But appears the housing difficulties are no longer confined to residential real estate. ‘You certainly are having continued problems in construction and finance that are related to housing,’ Haveman said. ‘But now we are seeing offshoots into other sectors of the economy.’”
“Jeff Michael, director of the Stockton-based Business Forecast Center at University of the Pacific, said residents of the area who have endured the evaporation of much of the equity in their homes may have changed their spending habits.”
“‘Spending was pushed up during the housing boom as people tapped their home equity lines and bought cars, big TV sets, and took vacations,’ Michael said. ‘People may be cutting back a little bit as they realize their house is worth less.’”
The San Francisco Chronicle. “San Francisco city officials have expected to be short hundreds of millions of dollars for next year’s budget, but they will have to cut even more, according to a report released Friday by three City Hall budgeting offices.”
“Mayor Gavin Newsom said he was ready to take the political heat for cuts in the number of workers and in programs and services. ‘I don’t want to have to walk down the road that Vallejo walked down,’ said Newsom, referring to the Solano County city facing bankruptcy.”
The Orange County Register. “Orange County’s job market remained weak in February, and economists say there’s no turnaround in sight. According to figures released Friday by the state’s Employment Development Department, local employers shed 21,800 jobs in the 12 months through February.”
“The biggest loser in the past 12 months is — no surprise — the financial activities sector. Over that period, 18,500 finance related jobs were lost in Orange County. Credit intermediation, or lending, jobs accounted for 75 percent of that drop, a loss of 13,800 jobs.”
“Esmael Adibi, an economist at Chapman University in Orange, expressed doubt that the state would find ready buyers for its bonds given the current turmoil in the credit markets. With the state facing a $14 billion budget deficit, ‘the Wall Street firms are going to ask, ‘Where are you going to get the money to pay?’ he said.”
The Sacramento Bee. “Rancho Cordova-based home builder Reynen & Bardis Communities Inc. and a dozen related entities owe more than $1.9 million in late property taxes and penalties, Sacramento County property tax records show.”
“The taxes, which were due in December, are the latest fallout from the real estate downturn and one that has sent a ripple through the city of Elk Grove. And, if the April property tax payments are missed as well, the city response could be swift, prompting an accelerated property foreclosure.”
“Observers blamed the economy for the plight of the cash-strapped company, as well as that of other builders in similar fiscal straits.”
“‘People are talking about whether we’re in a recession,’ said John Hodgson, project manager for Elk Grove’s 1,900-acre Laguna Ridge planning area, where Reynen & Bardis entities have large holdings. ‘The home-building industry is not in a recession. It’s in a depression.’”
“‘It’s a perfect storm of very unfortunate economic events that no one could have possibly predicted,’ said Michele McCormick, spokeswoman for Reynen & Bardis Communities.”
“Hodgson, who represents 18 owners that control 90 percent of Laguna Ridge acreage, is disheartened. ‘It’s kind of sad when you go out there and you can see (unobstructed) a mile and a half,’ he said. ‘There are beautiful roads, beautiful parks and (virtually) no homes.’”
The Union. “Bill and Susan Ross’ Grass Valley housing development was set to be sold at auction on the courthouse steps Thursday, but a last-minute house sale is giving them another chance to hang onto their investment.”
“Now the auction will be held on April 3 at the same venue, the foreclosure agent said.”
“As many as 15 prospective buyers lost interest, because the project wasn’t completed on time, Tim Peterson, chief credit officer of Citizens Bank, said. By the time the houses were ready for sale, the real estate market had declined, Ross said.”
“‘This is a major investment but I wasn’t banking on it to make a bunch of money off it,’ Ross said. ‘I just wanted to do something good for the community.’”
“Renter Derek Ackley criticized the project’s design. He said Wednesday that he ‘wouldn’t buy a house here. It’s like an apartment.’”
The LA Downtown News. “Is the touted renaissance of Downtown Los Angeles falling back into the dark ages, a victim of the recently reported downturn in sales and rentals?”
“I believe there is no housing crisis. The demand for housing Downtown and across Southern California remains high. The population keeps growing and families keep being formed. The very real crisis that exists is in the province of housing pricing and product.”
“‘You don’t have to be a rocket scientist to know your project is in trouble when your client tells you to go back to the drawing board and redesign the condo you were working on for a rental,’ said an architect trading anonymity for candor. ‘And if he doesn’t pay for the redesign, you know you also are in trouble.’”
“I believe there is no housing crisis. The demand for housing Downtown and across Southern California remains high. The population keeps growing and families keep being formed. The very real crisis that exists is in the province of housing pricing and product.”
Just can’t quite bring themselves to say “There is a housing crisis”….period. They have to contradict themselves and obfuscate the truth. Gotta love the MSM, they just can’t bring themselves to reach an unqualified realization.
I believe in the Joshua Tree.
Does the REIC baboon you’re quoting want to place a bet on who’s right?
Got Popcorn?
Neil
‘I/we/they didn’t see it coming’.
Oh, when a house goes in 99 from $240k to over $1mill without anything different added, like Chippendale dancers at my beck and call or hot and cold running chefs and pedicurists/masseuses added..then that runup wasn’t warranted. That said house didn’t have added insulation,complete infrastructure redo, fancy furniture, twinkling lights and mood enhanced countertops, so I know it when it hit $500+++ and it was indian lease land, then no way is it worth nor did anyones pay increase to cover a massive increase like that. And it is all around. So, until we see those above mentioned added perks, do I think this runup wasn’t foreseen.
Another runon sentence proffered by yours truly.
Trying to fix that characteristic.
End.
The Joshua tree tells no lies.
That’s for certain sure!
I don’t know. I don’t think there is a crisis, either. Rather, IMO what we are seeing is an inevitable and necessary correction.
The people screaming inflammatory stuff like crisis are Chairman Gross and Ho Chi Zandi. Notice that the only people making any sense on this in Washington are not running for office?
Ho Chi Zandi- great stuff!
–
“I don’t know. I don’t think there is a crisis, either.”
Right, Ben, the only problem is supply and demand at the current prices. I never thought that prices coming down to levels at which people can afford them would be a crisis. The crisis was during 2004-07 when prices were outrageous and reckless mortgage lending was all the rage.
People got it all wrong as to when we had the housing crisis.
Jas
The crisis is that there are a lot of ordinary people who don’t realize that they provided the money for the lending boom and that they are the ones who are not going to be paid back. Once that realization hits them, look out.
I agree, Ben. We don’t have a housing crisis–there is plenty of housing available for purchase and rent.
What we have is a credit-market crisis due to the effects of unreasonably-loose lending standards, and those on the hook for its aftermath (lenders and owners both) are crying to be rescued.
The system will purge and fix itself if we only leave it alone.
Exactly. This correction is what ends the crisis. The popular view as seen on TV is backwards.
There is a crisis elsewhere. It helps the denial process to accuse the wrong thing.
the crisis is that people do want to buy a house but the prices remain in the stratosphere.
so we have the demand for housing.
what we are lacking is the prices to fill the demand.
i think over the next 5 or 10 years we will fix that also.
a 4% drop in the dow, now that’s a crisis
Then you notice your handcuffs and you’re going to be in the water.
Proverbs 22:7
‘The rich rule over the poor, and the borrower is servant to the lender.’ (Proverbs 22:7)
Dint even have to look it up—one of the few, and I do mean ‘few’ benefits of being raised by Mormon fundamentalists who thinked that memorizing scripture was more important than buying shoes for kids.
How Did you get away girl?
Az City didn’t entice you?
You are looking down the barrel of a $44.4 Million magnum, and it’ll blow your budget clean off, and I know what you’re thinking, punk…
In all this confusion~
Are you short $500 Million or $600 Million?
Go ahead, make my day and slash some more pay…
“San Francisco city officials have expected to be short hundreds of millions of dollars for next year’s budget, but they will have to cut even more, according to a report released Friday by three City Hall budgeting offices.”
“Mayor Gavin Newsom said he was ready to take the political heat for cuts in the number of workers and in programs and services. ‘I don’t want to have to walk down the road that Vallejo walked down,’ said Newsom, referring to the Solano County city facing bankruptcy.”
‘I don’t want to have to walk down the road that Vallejo walked down,’ said Newsom, referring to the Solano County city facing bankruptcy.”
Will they cut enough? Politically, cutting is tough. But if it isn’t done, then everything falls apart uncontrolled.
As Ben noted, its not a crisis, its a correction.
Got Popcorn?
Neil
“‘Spending was pushed up during the housing boom as people tapped their home equity lines and bought cars, big TV sets, and took vacations,’ Michael said. ‘People may be cutting back a little bit as they realize their house is worth less.’”
Translation, the whiny bastards were denied further MEW; the sheeple now have to live within their means and they don’t like it. Nor do the hoards of salespeople who are starting to see, but haven’t accepted, that they aren’t part of the gifted elite.
I updated my real estate emotions on my blog. A few side comments, but we’ll be in desperation for a long time. Then panic… then capitulation, then its time to start browsing during despondency so that one can buy during the emotional state of depression. (I still think it won’t be that economic state… but I think I’m on the optimistic side of the bears…)
Got Popcorn?
Neil
Will most of those who took HELOCs lose their house? What if they aren’t underwater, but can’t pay the higher mortgage? Forced to sell? Maybe they will live in their car or boat lol
Ha! One should be so lucky as to live on a boat.
My grandmother-in-law lived for years in a Connestoga wagon. Her family lost the Colorado Peach orchard back in the teens. They took up farming in central Kansas just in time for the dust bowl. They made it. Salt of the earth, backbone of America kind of gal. She became president of the Burdett Kansas bank. We could use more like her.
Was she hot?
I bet she was totally hot, with freckles and an apron and a sunbonnet and knew how to cut hay with a scythe and other cute stuff.
The real question here is; could she take her farmgirl/banker arms and tie you into an excited pretzel, and would you scream when she did? I believe is what you’re REALLY asking.
I’m not a screamer. I like breaking out in Frank Sinatra ballads.
By God I’m sick and tired of these tards complaining about having a HELOC facility pulled:
“I was robbed!”
As if it were their money, sitting in a bank account! The sheeple clearly deserve what is going to happen to them…..
As per my earlier post. How about those DQ numbers?
http://dqnews.com/Charts/Monthly-Charts/LA-Times-Charts/ZIPLAT0802.aspx
Palmdale 93550 down 46%YOY. WOW!!! Bad news? It’s still accelerating to the downside.
–
dude,
LA Co. PPSF (SFR only) is down 19.4% from Jun’06 and Jul’07 peak ($404-$405) to current $326. Palmdale is doing lot worse (and for very good reasons):
City Zip Code PPSF Since Jun’06
Palmdale 93550 -58.7%
Palmdale 93551 -34.6%
Palmdale 93552 -20.1%
Palmdale 93591 -34.8%
$293 PPSF for 93550 in Jun’06 and $238 in Jul’06 was outrageous. The current $121 is more like it, no?
People who bought in Palmdale during Jun-Jul’06 were dopes.
Jas
The word “Crash” still isn’t being used in the mainstream media.
When “Housing Crash” is on the covers of Time, Newsweek, etc. we can start to look for a bottom in my opinion.
AND the accompanying article states ‘Real Estate, Worst Investment Ever’
The local politicians can’t admit that their economies are depressed because they have no quick fixes. Voters are big on quick (painless) fixes.
The real estate folks can’t admit that the housing market has crashed because then they can’t justify their jobs. Not that they ever could, really, but they need to get out and look for other employment NOW. Trouble is, where does a stupid, unskilled liar apply for work these days?
We couldn’t manage to raise taxes when money was growing on trees (Pinocchio-fashion), imagine raising them now?
Pushing credit cards at my campus to college kids-
Oh I know the answer to that question…It is a Politician.
Do I win a prize?
Your $600 check is in the mail.
How about topless pole dancers at the local Deja Vu spot?
Actually, what that Downtown LA News article said was that the problem is that there is no affordable housing. The author has hope, but I think that the lack of affordablity IS a crisis.
That problem is in all bubbly states, cities and towns. Judging by 1998 prices, hopefully houses drop to that level so they become easily affordable again. How does a $50k starter house in half of Florida sound?
we’re supposedly not bubbly here but median is still 4-5x family median.
Is median salary like $18k annually?
In NW PA, houses are like 1.7x median salary making them very affordable.
Dude - there are reasons that homes in NW PA are so cheap. Having spent four years (including winters!) in North Central PA (which is somewhat milder but with similar socioeconomic conditions), I feel I am justified in providing this mini-analysis.
1. It is COLD in the winter. Every TV weather guy in PA would always point to the little town of Bradford as having the coldest temps in the state. Seriously, this was their ‘feel good’ moment. “Aren’t you glad you’re not in Bradford, where it is 20 degrees colder at 3?” Of course, they probably have something else they say in Bradford - it’s just too depressing.
2. This probably fits in the weather category again, but NW PA is known for “lake effect snow” - the result of cold Arctic air from Canada blowing across the comparatively warm Lake Erie, dumping tons of snow downwind. Just ask any of the fine citizens of Buffalo how wonderful lake effect snow is and how it contributes to strong property value growth.
3. Rural PA, while scenic in its own way, is pretty depressed. Not a lot of economic activity outside farming, etc. Not a lot of cultural activities unless you drive to the bigger cities. I remember making midnight runs to the Taco Bell in the mid-90s - it was 50 minutes away! The movie theater had one screen. Don’t like the movie? Too bad, wait until they change it in a few months. And don’t get me started with deer season…
So there are definite tradeoffs. That said, yes, the housing prices are very very low - like new car prices. But do not forget, winters are extremely bad and the infrastructure sucks (PA has some of the worst roads in the country) so that is part of the price you pay for living so cheap. There are many worse places to live, and if you are into that sort of lifestyle, you may be very content. But most people would not be.
–
So the prices coming down, say 50% from here (more would be better), will resolve the crisis, or solve the problem. But, Fannie and Freddie CEOs want to “stabilize” the prices! Who are they serving? Not the American People.
Jas
“‘It’s a perfect storm of very unfortunate economic events that no one could have possibly predicted,’ said Michele McCormick
Unbelievable.
Ah, tired of the same cliches, I see.
light at the end of the tunnel…
the perfect storm…
unfortunate economic events…
flocking to BK court…
you don’t have to be a rocket scientist…
its econ 101…
its the economy
JT them all, why waste a good trout?
‘ll wager that Michele never read The Economist or any of the ecominc reports that Thornburg contributed to or, heaven forbid, the HBB. Each and every one of those sources raised a multitude of flags on the upside. But Michele and her ilk couldn’t have known because they were too busy basking in the glow of their financial genius as RE investors.
There are plenty of areas in the LA/Phoenix areas that just haven’t had the declines crowed about here and in blogs elsewhere. I’d like to see some real retraction and price drops, but it just ain’t so Joe. My sister-in-law’s place in the Hollywood Hills is holding its value very well and she’s even had several people ask if she’d consider selling even though she has no sign and no interest in selling. My brother’s place in Ahwatukee is holding price so far. It really is a question of location desirability. As for much of the Inland Empire areas and desert communities in AZ and CA outlying areas - yeah it’s pretty sucky.
“There are plenty of areas in the LA/Phoenix areas that just haven’t had the declines crowed about here and in blogs elsewhere.”
Seems there is no lack of people willing to mortgage themselves to the teeth to reach for the most expensive home they can buy. They might as well take the risk, since the MSM is telling everyone that they can count on being bailed out by Uncle Sam once they are underwater.
That said, a buyer with an emotional attachment to a unique piece of property might pay any price, especially if they made a mint selling their old rat trap at the peak and held on to the money. Niche markets are disappearing fast, and an economic downturn will accelerate this. But a few inquiries do not translate into an appreciating housing market.
Median Foothills housing price drops 14 percent, from the Arizona Republic, reports that the median price for a Ahwatukee Foothills resale dropped to $343,000 in July, a 14 percent decline from July 2006. Jay Butler, director of Arizona State University Realty Studies, said the housing market continued an “uninspiring trend” in July. He said medians continue to bounce around from month to month, but in general are falling because it is harder to get financing on expensive homes and there is more competition from the increasing inventories of new homes and the opportunity to get cheap homes through foreclosures.
http://www.arizonahomes411.com/PageManager/Default.aspx/PageID=890729&NF=1
15 October 2007
Ahwatukee home values continue decline
Home values in Ahwatukee Foothills have continued to fall since the first of the year, as they have in most Valley cities.
The city’s older 85045 ZIP code neighborhoods fell the most, according to the most recent data from Information Market. The 10.7 percent drop between Jan. 1 and the end of August put the median home value at $485,000. The 85044 ZIP declined 6 percent, putting the median home price at $300,000. In 85048, prices fell 1.9 percent to $385,000.
“Realtors need to have a discussion with sellers because appraisal value and market value are two different things now,” said Debi Gotlieb, a residential real estate agent with Coldwell Banker.
http://davidroney.blogs.com/informer/2007/10/ahwatukee-home-.html
I know someone trying to sell in the Hollywood Hills, for $9,000 more than the 2005 purchase price. It’s been on the market for over 100 days.
But I guess its holding its value.
Check these prices bank owned REO’s in Hollywood Hills and Phoenix. Google: Bank of America REO: Google” Countrywide REO
Google: Washington Mutual REO, Google: Chase REO Google:
Wells Frago REO.
REO’s -Central Banks To The Rescue:
Just hit Google News Today, March 22th, Sat
http://www.marketwatch.com/news/story/central-banks-mull-buying-mortgages/story.aspx?guid=%7B19410245-4C72-499F-B3AA-145238C529CC%7D
Gotta read the comments on that link. They are even more furious than we are, and the first few are pissed.
really is a question of location desirability
sure.. location, location etc is important, but we are witnessing a rare period of correction that will transcend location. The active property market of all localities will bow and worship the god of affordability, or it will be cast into the lake of fire..
“My brother’s place in Ahwatukee is holding price so far.”
I doudt it
Patience, girl.
“Last fall, houses were staying on the market longer but the prices weren’t dropping. That has changed. For every 10 houses, there are only a few qualified buyers. Fairfield County has seen a significant decrease in sales and prices.”
Correction: for every 10 houses, there is one qualified buyerr.
Comment by Natalie
2008-03-21 16:36:05
There is no American dream of owning a house in California anymore. The house prices are too high and out of range for the majority of their population. Sellers refuse to lower their asking price much at all and I’ve been watching the listings … so we’re at a standstill. Personally California house prices are to high for the majority of the population as well as the quality of life is poor. Most retirees are leaving the state as well as young couples that seek affordable housing. High house prices, taxes, poor education, traffic and illegal immigration issues, etc — tell me, what’s so good about CA these days ???
(besides the weather and beaches. What’s wrong with other states?)
Labor and productivity drive everything. Are you serious about making a movie? There are other places you could go, but for everything from writers to actors and the rest California is loaded with useful resources. Are you serious about developing and delivering some new technology to the market? California is also loaded with all the variety of eggheads needed for hardware, software, bioware, and whatever else. Genuinely new products, processes, and ideas matter more now than ever, and California is rich with people and institutions that make such developments happen.
I got that question marked wrong back in elementary school. Correct answer was: California has many different climates for whatever setting a movie might have - river, desert, mountain, shore, forest, snow! (It also attracts characters from all points, for bit parts, I mean - he he.)
Is there no dream in this world beyond buying a house?
Ummm, yeah, like buying 10 houses for minimal leverage, and becoming an upper-class “slum” lord. That’s a dream.
“To get loan insurance from MGIC Investment Corp., the country’s largest mortgage insurer, South Florida borrowers with a 620 credit score have to put down 10 percent on loans of $650,000 or less.”
More proof we are only halfway to the bottom. Got 20% down?
Don’t misunderstand my previous post. I realize that the Housing appreciation factor is swamped everywhere. If my sister-in-law and brother hadn’t bought at least three years before the bubble, no way they could afford to buy where they bought. I’m with most people on this blog, housing prices got real crazy and made it tough/impossible for many solid middle-class people to buy houses that doubled/tripled/quadrupled in a short time frame. I think it sucked and I’d like to see the prices fall to earth too. For areas I’d like to relocate too, housing is still to damn overpriced.
Tell them to sell their house before they end underwater owing more than the house is worth. House prices could fall to 1998 levels. They overpaid and prices are going to fall below what they paid.
http://www.suburbanchicagonews.com/heraldnews/business/berko/854010,4_3_JO21_BERKO_S1.article
Priced out of Florida. I should show my dad this article, he doesn’t understand why I want to leave that state for Pennsylvania which is much, much, much cheaper! I live in PBC where (correctly priced) houses hover in the $130/foot range. It’s almost impossible to get a house for below $80/foot anywhere half decent in Florida. This is a big improvement from peak prices of near $200/foot in PBC. But when other states have houses for as little as $20/foot, there is no comparsion! In NW pennsylvania, I can get a nice condition house for $25 to $40 a square foot plus basement and attic.
Furthermore, you used to be able to get a house for $70/foot in PBC and $45/foot in cheaper parts of Florida. Why buy a house that’s almost 100% overpriced and catch a falling knife? The only good thing my parents can say about Florida is the sunshine and lack of winters. I can see many other good things about other states.
“Observers blamed the economy for the plight of the cash-strapped company, as well as that of other builders in similar fiscal straits.”
Blaming the victim. The economy is now the victim of the past over building and housing price bubble, no?
Jas
–
“‘This is a major investment but I wasn’t banking on it to make a bunch of money off it,’ Ross said. ‘I just wanted to do something good for the community.’”
Do-gooders like Angelo Mozilo? Just do what is good for you honestly and you will be doing a lot of good for others.
Jas
“‘It’s like watching a million people handcuffed,’ Purdy said. ‘You see some fall into the water and drown. You notice some of the ones drowning are pulling others off the boat.”
It’s more like watching a million dumbasses drown after PUTTING THEMSELVES into cement boots, then going for a swim.
“‘You don’t have to be a rocket scientist to know your project is in trouble when your client tells you to go back to the drawing board and redesign the condo you were working on for a rental,’ said an architect trading anonymity for candor. ‘And if he doesn’t pay for the redesign, you know you also are in trouble.’”
You don’t have to be a rocket scientist to see that this country is now a Third World craphole either.
yeah? well, don’t let the door hit you in the ass..
joey, he is right in many ways, currently.
We still can redeem the US, but most, many will not DO SOMETHING about it. And continuously until it is changed to the better.
Rocket Science isn’t actually that hard.
& if you honestly believe the USA is third world - then i’d suggest you try visiting the third world. It’s pretty easy to spot the difference.
When out and out bribery is needed/accepted as a way of life, you’ve slipped into the third world…
We aren’t there yet~
Are you sure we aren’t there yet? Seems that politicians are doing it right and left and we do not call a spade a spade.
It is an accepted way of life, we just all claim to not see it when it would damage out delicate sensibilities.
Tomorrow is Sunday and of course many will pray and ask for forgiveness, while Sunday night or certainly Monday, there will be many at the T/A joints, and in the congress/senate/wh, crossing their palms with silver.
I just don’t think “we” are calling it for what it is.
Day to day living and accepted.
Love the Santa Cruz real estate atty’s references:
“you have a pocketful of sand”
“there was a tidal wave coming” [I disagree here - it is a tsunami that's coming]
“some fall into the water and drown” [and some become shark bait]
ah, california
what’s wrong w this statement
”
they will have to cut even more, according to a report released Friday by three City Hall budgeting offices.”
3 offices ?
According to figures released Friday by the state’s Employment Development Department, local employers shed 21,800 jobs in the 12 months through February.”
Those weren’t burger flippers or floor moppers either- I see 22,000 more foreclosures coming on the market soon. Maybe more, since they were probably all “investors” and owned multiple homes.
“By the time the houses were ready for sale, the real estate market had declined, Ross said.”
This is actually a very profound observation.
The NAR is missing out on a new spin of the real estate situation:
The supply of new homes is not keeping pace with the demand for lower home prices!
That explains everything… ;~)
‘It’s like watching a million people handcuffed,’ Purdy said. ‘You see some fall into the water and drown. You notice some of the ones drowning are pulling others off the boat. Then you notice your handcuffs and you’re going to be in the water.
Not me, bro. I could live for 6-7 years off my savings without having to incur a nickel of debt.
P.S. Nice alarmism, comparing a million people swept off to sea with the rather more mundane reality of a bunch of people giving back houses that they were never financially qualified to pay for, and going back to renting. Boo hoo.
…and you could live 10-15 years if the government wasn’t lowering interest rates to subsidize idiots, scammers, and greed
“people giving back houses that they were never financially qualified to pay for, and going back to renting.”
No, no. They become “homeless”. At least that’s what I keep hearing from the MSM.