These Are All Good Signs
The Rocky Mountain News reports from Colorado. “More than one out of four homes in the Denver area placed under contract in May failed to close, according to an analysis of a monthly report on homes sold by Realtors. The 25.81 percent ‘fallout rate is staggering,’ said Larry McGee, president of the Berkshire Group, who for the first time analyzed that aspect of the market.”
“Buyers often ask for repairs or improvements that the seller considers unreasonable or too costly, McGee said. ‘The average buyer, smelling blood in the water, feels that the average seller is desperate to sell,’ McGee said.”
“Independent broker Gary Bauer, who also prepares a monthly report based on Metrolist data, said deals that aren’t consummated fall into three camps: buyer remorse, homes not passing inspection and buyers not qualifying for loans under the stricter underwriting standards.”
“The median price of a single-family home dropped almost 10 percent to $226,500 from $251,155 in May 2007, while the average price of a single-family home fell by 15 percent to $276,374 from $318,904 in the same period.”
“Bauer said he is helping a family of five buy a foreclosed home in Commerce City for $70,000, which previously sold for more than $163,000, almost a 60 percent drop.”
‘In 2005, homes priced under $100,000 accounted for 3 percent of the homes sold, Bauer said. ‘Today, they account for about 13 percent of the mix,’ Bauer said. ‘That’s what foreclosures have done to the market.’”
The East Valley Tribune from Arizona. “Le Meridien will have a lot fewer condos and a much-delayed opening date, but a Tempe debut is still in the works, a partner in the much-touted luxury hotel project said.”
“The project will get in gear as soon as the construction market stabilizes and the hotel is redesigned with fewer condominiums, said Adrian Glover, a partner in Sierra Hospitality.”
“Condos, once requisite for new hotel projects, have fallen out of favor with investors because they are not selling, he said.”
The Arizona Daily Star. “Housing news hasn’t gotten any less grim, but some real estate agents are trying to keep the Tucson market from being painted in gloom and doom with a broad statistical brush.”
“Long Realty Co. is using tools from a California data-analysis company to provide in-depth market numbers, including inventory levels and prices, for areas as small as ZIP codes or individual subdivisions.”
“Long representatives said the in-depth information is useful in winning over buyers and helping sellers price their homes competitively. ‘If you’re in an area where you’ve got 17 months (of inventory), versus an area where there’s only four months, there’s an entirely different strategy,’ said Rosey Koberlein, CEO of Long Cos.”
“Overall, the Tucson market had about nine months of inventory and a median price of $195,000 in April, down about 13 percent from the same month in 2007, according to the Tucson Association of Realtors MLS.”
“In the 85747 ZIP code, on the Southeast Side, inventory was about four months, according to Long’s numbers. The median price was down about 14 percent from a year ago at $202,000. The average price was down about 12 percent at $221,076.”
“But in the 85653 area code, in Marana, inventory was at 13 months. The median price was $189,900, down about 25 percent from the same time last year. The average price dropped even further in that time, falling by more than 30 percent to $232,452, according to Long’s numbers.”
The Review Journal. “On Monday, about 100 miles southeast of the Las Vegas Valley in Kingman, Ariz., the Mohave County Board of Supervisors gave Clark County developer Jim Rhodes the go-ahead to begin building a master-planned community that could one day have 25,000 homes and more than 75,000 residents.”
“Since Mr. Rhodes first announced this project in 2004 — when housing prices in Southern Nevada were quickly rising beyond the reach of the valley’s service-industry workers — it has been alternately denounced and dismissed by a variety of interests.”
“Many residents of Mohave County were horrified by such large-scale development, hoping their area would remain little more than a highway stop for travelers and truckers. Others said there wasn’t enough water to support tens of thousands of new residents.”
“The environmentalist set bristled at the thought of people buying homes that create two- to three-hour commutes to Phoenix, Las Vegas, and Southern California.”
“And when home values plunged from the stratosphere, skeptics agreed Mr. Rhodes’ projects would never be built.”
“‘We have addressed every issue that’s been brought up repeatedly by the detractors of the project and we feel it is time to send a message to the development world that Mohave County is open for business,’ Rhodes Homes representative John Gaul said.”
“By the middle of this century, residential communities and businesses will line the empty desert floor between Las Vegas and Kingman. That’s the big picture, no matter how bad today’s news is.”
“The inventory of homes for sale in Las Vegas crept up to 23,348 in May, about 400 more than the previous month, the Greater Las Vegas Association of Realtors reported.”
“Inventory, considered one of the culprits in the valley’s declining housing market, peaked above 24,000 in summer 2007 and has climbed by a few hundred each month since its December low.”
“The median sales price of $236,692 is down 21.5 percent from a year ago but up slightly from April, the Realtors’ statistics showed. Patty Kelley, the association’s president, said she’s encouraged to see sales prices and the supply of homes starting to stabilize.”
“‘These are all good signs for a local housing market that has been working its way through some unprecedented challenges over the past 16 months,’ she said.”
“Realtors had been reporting a steady decline in median home prices during the first quarter, largely due to the high number of bank-owned properties that were selling below market value, Kelley said.”
“About 45 percent of contingent sales have been identified as ’short sales.’ Applied Analysis principal Brian Gordon said. ‘One area we remain concerned about is units being sold as short sales. Many of these units still require bank approval. It’s difficult for lenders to release home sellers from those obligations,’ he said.”
“The number of new listings coming onto the market in May dropped 10.7 percent from a year ago to 5,142 units. Home owners are waiting for foreclosures to work their way out of the market and for better financing conditions before listing their homes for sale, Kelley said.”
The Reno Gazette Journal from Nevada. “The median price for Reno-area homes was $251,500, based on the Global Insight/National City house value report for the first quarter of 2008, 0.2 percent below what the report considers absolute fair value. The last time Reno-area home prices were considered fair value was in 2004.”
“Increased buyer willingness is exactly what Karen Scarbrough is hoping for. Scarbrough, who wants to move to south Reno, offered her 2,350-square-foot home in the Skyline area for sale in October. Interest in the home was scarce in the beginning. But calls started picking up last month after Scarbrough lowered her price to $399,000 from the original $459,000 asking price.”
“Having the Reno area’s housing prices classified as a fair value can only help, she said.”
“‘Buyers can come in without worrying that they will be upside down on their house,’ Scarbrough said. ‘So, it should help both buyers and sellers.’”
“In the Reno area, short sales and bank-owned properties make up about 40 percent of listings but account for two-thirds of the houses going into escrow, said Wayne Capurro, president of the Reno/Sparks Association of Realtors. Given the number of short sales and bank-owned properties in the market, Capurro predicts median home prices to also drop in the next month or two, which is not necessarily a bad thing.”
“‘The median price has to go down to where properties are more affordable and then the number of sales also have to increase,’ Capurro said. ‘Those two things have to happen before we hit bottom and prices start going back up.’”
“Even at today’s lower prices, Scarbrough, who bought her house in 2002 before the bubble started, remains poised to make a good profit on her home. And with banks a lot stricter these days, her purchase of the home she wants in south Reno is contingent on the sale of her current house.”
“‘This house has been very good to us,’ Scarbrough said. ‘But with my husband now working in Carson City and my son deciding to go to Galena, we decided that it was time for us to move.’”
“‘I’m averaging about one to two showings a week, and I have two barking dogs so I have to find somewhere for them to go when we have people over. I am so ready for this house to sell,’ she said.”
From Tahoe.com in Nevada. “Single-family home sales and sales-prices continued to decline in Washoe County during the first quarter of 2008. New single family home sales dropped 56% in the first quarter from the fourth quarter, and 74% from a year ago. Median sales prices were also down 2% from the fourth quarter and 10% from the first quarter of 2007.”
“Sales of existing single family homes were similarly battered: down 27% from fourth quarter, and down 54% from a year ago.”
“There have not been many signs of life in the single family market lately, and I wouldn’t be surprised if we’re in for another 20% decline in median sales prices. What’s that estimate based on? Just for fun, I made a spreadsheet of quarterly home sale prices going all the way back to 1990, then I removed the ‘bubble years’ of 2002-2005 and looked at the average quarterly appreciation rate for the area, which turned out to be 0.96% per quarter.”
“I applied that quarterly appreciation rate to the median sales price of homes in the last quarter of 2001 and began estimating new resale prices from 2002 to today to see what today’s values would look like if we never went through the bubble and the difference was sobering.”
“Assuming that we had avoided the housing bubble altogether and had continued growing at a more reasonable (read: historically average) rate of appreciation, the median home resale price today would be just over $200,000. Using that same source data, the actual median home resale price last quarter was nearly $60,000 higher.”
“That tells me that today’s pricing is still about 23 percent higher than it ’should’ be and leaves the door wide open for continued price adjustments in the area.”
The Salt Lake Tribune from Utah. “Downtown Salt Lake City’s condo market has gone from sizzling to fizzling. Just 12 months ago, buyers signed contracts to purchase more than half of the available units at The Metro condominiums downtown in just the first two weeks they were on the market.”
“Through December, dozens more people committed to buy units. But since then? Just one buyer has signed on the dotted line.”
“A decade ago, condos in the downtown area weren’t selling very well. In recent years, the market has improved as more people have been drawn to downtown living and the proliferation of attractions. But as with the single-family market along the Wasatch Front, tighter lending standards put in place last summer after the nation’s subprime lending crisis have taken their toll.”
“Veteran downtown real estate agent Babs De Lay doubts that the condo market, while slowing, is headed for serious trouble because several projects that would have substantially added to inventories of properties for sale are on hold.”
“‘Lenders aren’t willing to finance anything right now, and that will keep inventory very reasonable for the next few years,’ she said.”
“At The Metro, units originally sold from $150,000 to $900,000. The 16 unsold units are priced from $330,000 to nearly $583,000. The building will be ready for residents to close on their properties and move in this summer.”
“Andre Ausseresses of Salt Lake City, who is under contract to buy in the project, said he has noticed the lack of sales activity in recent months.”
“Ausseresses sold a condo in the Cottonwood Heights area last spring, so he doesn’t have to worry about selling another property before he can close on his new one. The only worry now is that the remaining condos in The Metro get sold and that the developer doesn’t resort to cutting the asking price below what Ausseresses and other buyers committed to pay earlier.”
“Across downtown, to the west, Howa Capital expected to start work on its 90-unit condo and town-home development in January. Instead, the company is set to begin construction shortly on the planned retail and office space of the Marmalade project.”
“‘It’s just not a great business situation to start a condo project right now,’ said Dru Damico, director of development for Howa Capital. ‘We’re seeing a lot of inventory on the market in the price range we’re looking to sell these for, and we’re not seeing a lot of sales volume.’”
“Just how fast the real estate market turned in the Salt Lake area has surprised developers such as Craig Mecham, who is redeveloping part of the heart of Sugar House with a mix of offices, retail space and condos. He said he’s concerned that as he nears the point of breaking ground, commercial and residential real estate are slowing down. The condo market, he said, is one of his greatest concerns.”
“‘Everything is softening. It makes us nervous, to be quite honest,’ he said.”
“Utah’s rising foreclosure rate and its moderating or declining home values has not dampened Lawrence Yun’s optimism. As the National Association of Realtors’ chief economist, Yun offered Utah real estate agents gathered in Park City on Friday a cheery message on the future direction of Utah’s residential real estate market.”
“Home sales and prices are poised to rebound later this year and may reaccelerate in 2009, he said. ‘We went through a period of overly optimistic exuberance,’ Yun said, adding that he now believes the pessimism that followed the end of the national housing market boom has gone way too far.”
“It was just what the real estate agents wanted to hear. ‘People need to make their [home-buying decisions] not on short-term trends but on long-term trends,’ Yun said. ‘Five years from now 99 percent of the markets will have higher values than today.’”
The Deseret News. “Homeowners gleefully watched the value of their homes skyrocket last year. Now one of the state’s leading economists says it’s good for Utah that those values are falling back to earth. And we should root for them to fall a bit further, Wells Fargo vice president Kelly Matthews said Friday.”
“A market correction was inevitable. Now, Matthews said, ‘Prices have outstripped income so people cannot buy, afford or sustain their mortgages.’”
“‘We all hate the idea of falling home prices,’ he said, ‘but we have to realize it’s an affordability problem. We’re not going to get incomes rising any faster than they are or interest rates that are any lower.’”
“If home values do reach a 20 percent drop, homebuilders can start building homes again, ‘hopefully,’ Matthews said, ‘homes we can afford to buy.’”
Now one of the state’s leading economists says it’s good for Utah that those values are falling back to earth. And we should root for them to fall a bit further, Wells Fargo vice president Kelly Matthews said Friday.”
A Wells Fargo bank vice president is one of the state’s leading economists? My, my…we can’t see a conflict of interest there, now can we?
Not that I disagree much with anything he said here, but while they largely avoided subprime, wasn’t WF one of the leading pushers of HELOCs and reverse mortgages?
Well, the WF economists in Utah have been talking sense for over a year now. I have to give them credit for that.
Ben, I hope you’re not driving and doing HBB at the same time!!! Jeezlouise, guy, be careful!
Memo to Kelly,
Homebuilders can start building again when most of the existing inventory (new and resale/foreclosure) has been absorbed. If you start lending to them before then, you’re an idiot.
Bill
off-topic
Does anyone know of the current Lake Tahoe housing market condition?
Spoke to a friend from Danville, Cal yesterday. He just bought a vacation home last year at Lake Tahoe.
Prior to this revelation, I told him that the entire RE market will be going down further as the next wave of reset from Alt A. He got quietly at first, and then admitted that he bought a vacation home at Lake Tahoe.
interesting.
Tahoe has barely started to go down in price, except for some of the areas in or near the big fire they had recently.
Here’s a story from the Sacramento Bee from a few weeks ago:
http://tinyurl.com/4oq67y
“Overnight stays at hotels and motels have fallen 16 percent in the past decade, according to the Lake Tahoe Visitors Authority. That’s been partly offset by increased occupancy of time shares and vacation homes. But many here are troubled by the number of older motels and other businesses that have closed or been torn down for redevelopment.”
“They’re trying to change the image of Tahoe,” said Cheryl Horner, manager of the Red Hut Cafe, a fixture in South Lake Tahoe since 1959. “They’ve tried to make it more high-end, and I think it’s hurt some of the small businesses. … Everywhere I go, I see another business going out.”
‘In 2005, homes priced under $100,000 accounted for 3 percent of the homes sold, Bauer said. ‘Today, they account for about 13 percent of the mix,’ Bauer said. ‘That’s what foreclosures have done to the market.’”
Well no, rather it’s what the market has done to foreclosures.
Foreclosures are the result of a falling market, not the cause. While the market was rising there were virtually no foreclosures because the buyer could always refinance or sell for cash.
The foreclosures we are seeing right now are primarily due to ARM resets and only secondarily attributable to a falling market.
The increase in supply due to foreclosures pushes prices down, as does the credit crunch. This is just common sense / basic economics. When there is a greater supply of something in relation to demand then prices fall. More houses on the market due to foreclosures (more supply) and fewer buyers who are able to qualify for a loan or are willing to buy in a falling market (less demand) equals greater competition among sellers and therefore lower prices.
“Downtown Salt Lake City’s condo market has gone from sizzling to fizzling.
I would have thought that anyone wanting to pay a premium to live in downtown SLC would by definition be more “fizzling” than “sizzling”.
IMHO, the only benefit of 3.2% beer is if pregnant women carelessly drink it.
On the upside, I have never seen so many tasteful porn shops as I have in downtown SLC.
Downtown SLC is getting fun - for people my age. It’s NOTHING like it was 5 years ago when I moved here. There’s a healthy competition between sushi restaurants and boutiques, bistros and lounges. Our nightclub scene sucks though (I think). SLC is a ghost town compared to real metro cities, but the current caliber of urban-ness works for the locals.
I actually found this blog while reeling from having walked away from a condo that quite suited us. Paying their asking price would be condoning the developers’ greed. I was fuming, scrolling through local news in the real estate section, and only a few commentors were calling out the problem. One of them posted the link to the HBB and it was history for me. Back then, we had no idea what an ARM was, but the developer was bragging about his 1% interest rate and stuff, telling us how easy it was to get financing. It was his way of trying to downplay the financial rape he was trying to commit on us. That was almost 2 years ago, and the development still looks totally unfinished. This was WestGate, not the Metro development, but still. It stung at the time, but we’re SO GLAD we walked.
“More than one out of four homes in the Denver area placed under contract in May failed to close, according to an analysis of a monthly report on homes sold by Realtors. The 25.81 percent ‘fallout rate is staggering,’ said Larry McGee, president of the Berkshire Group, who for the first time analyzed that aspect of the market.”
My sister’s home was among the one out of four that closed in Denver last month. I advised her to wait, on the grounds that a qualified buyer is at severe risk of overpaying under current market conditions, but she could not bear renting for another few months.
“‘We all hate the idea of falling home prices,’ he said”
Really???
Lost,
Are you out in the countryside, away from your landlord?
Hey, I did a post in the Bits Bucket, get over there and help me out!
The Salt Lake Tribune from Utah. “Downtown Salt Lake City’s condo market has gone from sizzling to fizzling.”
I enjoy visiting Salt Lake.
However, many of the individuals that I know personally who live in Salt Lake (and have never lived anywhere else) think that they live in a vibrant, edgy, progressive “City” along the lines of Chicago or L.A.. It isn’t.
Having the Olympics there a few years ago just seemed to increase their attitude.
One can see how this attitude might have overwhelmed common-sense when it came to the idea of building $350,000.00, $500,000.00 or $900,000.00 downtown condo “lofts” and then trying to find individuals who could afford the rate.
Median income for a family household in Salt Lake is around $45,000.00 a year which might give one an insight into what affordable home (and loft) prices should actually be there.
And what’s with all the “sponsorship” to get into the bars?? What kind of crap is that?
I just want a friggin’ beer.
“Inventory, considered one of the culprits in the valley’s declining housing market, peaked above 24,000 in summer 2007 and has climbed by a few hundred each month since its December low.”
No, inventory is not a culprit, it is a measurement of the problem. That’s no different than saying that (during a recession) the unemployment rate is the culprit for the lack of jobs.
If you want culprits, the first ones, by far in my opinion are the bond rating companies (Moody’s, S&P, etc) - for giving AAA ratings to this worthless paper - none of this would have happened if they had done their jobs. After that, I put the banks…they hire the “top of the class”, the “best and brightest” available - yet they could not see any problem with these loans until last year, even though inventories built all through 2006 and half of 2005. Finally, I group mortgage brokers, real estate brokers, and speculators. These people aren’t paid the BIG BUCKs to see if the market is overextended…rather, to me, they’re trying to make some money by pushing the limits…..and the brain-children should have pushed back, but didn’t.
This misunderstanding of “cause or symptom” is typical of people who don’t understand economics… usually journalists who fall prey to a good spin by some “financial expert”… these journalists are easily intimidated by these “experts” and regurgitate verbatim the spin they’ve documented in their little notebooks…
Well, I hope whosoever feels drawn to buying a *luxury* “Le Meridien” condo hotel unit looks closely at the ones which are already in existence. I know of at least one which is nothing to write home about, and nothing like a Meridien hotel. Thin walls, hallways and doors banged up after three years. Furnishings of much lower quality than in a traditional Meridien hotel. It just screams ‘we got your $s, haha’.
Lawrence Yun of the NAR is like a bad case of STD (Sexually Transmitted Disease) which keeps coming back. Unfortunately, there are no anti-biotics we can give him and the majority of realtors, which will make him, and them, go away - at least for another 3-5 years.
Comment of the century. Sounds like a guarantee. After all, everyone wants to live in, (looks at notes to remember city and or state) Utah, and real estate is local. Yun must have awesome speech writers.
“‘People need to make their [home-buying decisions] not on short-term trends but on long-term trends,’ Yun said. ‘Five years from now 99 percent of the markets will have higher values than today.’”
I think Yun’s taking a cue from the global warming crowd. Make sure that your predictions are far enough out there in time that you’ll be long gone and no one will remember.
Predicting the next year or two hasn’t gone so well, in either of their cases.
What did the climate-change people miss?
Lotsa winter snow in California? Check.
Higher than normal spring temperatures in the mountains? Check.
Fast melt of the snowpack? Check.
Ensuing drought because the melted snowpack flooded rather than trickled downhill? Check.
I’m not saying every prediction is right, but that set is exactly what was predicted.
Also, the real name of the phenomenon, not the MSM name–it is “climate change,” not “global warming.” I know the brain-dead MSM can’t get it straight; I presumed those on this blog would be able to handle the complexity of the issue, even if they disagree with the claim.
IAT
Modernity and science have brought us this far. You should learn some respect. Global warming predictions are based on the best understanding of related physical laws that we currently know. Yun’s predictions are based on hope for sales and not on any kind of reasonable economic analysis. A good book about this kind of controversy is _The Heated Debate_ which is primarily about climate analysis but oddly enough applies to economic analysis as well. To paraphrase very briefly getting emotional and getting scientific are two very different things and are unrelated except for the way they interfere with each other.
I have plenty of respect for science, I work in science and related engineering fields. I have 20+ years experience in precision temperature measurement, some of that in climatological applications. Global warming is about starting with a political conclusion, and working backwards. It too, is based on hope, hope for a particular type of political change.
Nothing wrong with wanting political change, as far as that goes, but the science is only a veneer. The GW models have no predictive capacity - they completely missed the recent cooling trend until after it began to happen. So they reworked the models, and they continue to fudge the temperature data to make things come out the way that they want. Yes it’s cooling, but it’s still warming. As with Yun, they’re just making it up as they go along.
I have no respect for fraudulent misrepresentation of fact, combined with a complete unwillingness to debate. What are they afraid of debating if the science is settled? They should learn some respect for genuine, sincere, informed skepticism, considering they’re the ones who want to turn the world upside down. The burden of proof is on them, stop playing on doomsday emotions and start pursuading those of us who don’t seem to get it.
Some kind of slowdown has infected the site. I wrote on this point 90 minutes ago, and it still has not posted. Hmm. Kinda reminds one of climate change–if we wait for *all* the data to be in, it will be too late.
At any rate, what I wrote was something like this:
1)Climate change is the name, *not* global warming. If you are a scientist you should respect the name of the theory. You don’t call relativity theory lightspeed theory. There’s a reason.
2)All the predictions of the climate change theory concerning California water have come true. Lotsa snow in winter. Early and warmer Spring. Thus, faster melting of the snowpack which overwhelmed capacities and led to floods. Now, expected summer drought.
If you call it “global warming” the above scenario may make no sense, because it was cold in winter, and only warmer in the spring. BUT, if you recognize climate change can produce both warmer springs and colder winters (or even colder Springtimes and warmer winters, because the climate is more complex than a simple uni-directional, uni-dimensional term suggests), then what is happening in California (and elsewhere) does not undermine the climate change theory.
Finally, I think updating one’s model in the face of evidence is science. Faith persists despite the evidence. So, from one scientist to another, why are you attacking the scientists for being scientists? And, why are you persisting in your faith that nothing is amiss?
IAT
So the climate never changed until humans started burning lots of carbon?
Do we know what caused all the prior global warming and cooling cycles before our species began influencing things?
Bill,
I have always found this to be the . . . funniest argument ever. So, think about it this way. You are a passenger in a car. The car is going faster and faster. Some of your fellow passengers believe this acceleration is explained by the driver applying more gas to the engine. However, you doubt their claim, and suggest the driver has no role whatsoever in this accelerating vehicle.
So, let’s say you are right — the driver is not the cause of the acceleration. So, this is good news? Given your theory of the acceleration, you have no idea 1)how fast the car will go, 2)whether your steering mechanisms will work, 3)whether you can even slow the car down. So, if anything, successfully persuading us that the driver is irrelevant to the acceleration only necessitates even more drastic action to stave off destruction!
So, analogically, if humans have not played a role in the current climate change, then this only increases the necessity of humans to dramatically change their behavior because, given your theory, we now need to take counter-measures sufficient to work against whatever other cause there is!
So, the task you have set humanity is a lot more difficult, and a lot more urgent (because we now have no theory to explain what’s coming next). Unless you think humans can survive in all possible climates, it appears that by successfully convincing us that humans have played no role is to force us to commit to even more drastic changes.
Thanks for that. Thanks a lot.
IAT
I’m confused by your explanation….if we as humans did nothing to cause climate change then why is it urgent that we make changes to fix it? I’m not arguing, just wanting a clarification.
IAT:
“1)Climate change is the name, *not* global warming. If you are a scientist you should respect the name of the theory. You don’t call relativity theory lightspeed theory. There’s a reason.
Ummm, according to theory, isn’t it all supposed to be based upon warming, i.e. infra-red reflective impedance as a result of the amount of carbon dioxide (and other GHG) in the troposphere?
“Climate Change” is just NewSpeak for mankind’s attempts to communicate with the weather. Those communication attempts, by the way, used to be called “Religion”.
Talk about confusing symptom and cause. The original cause is warming, but the outcome may be warming in some places, cooling in others.
When you have a temperature, is your whole body hot? Or, instead, do you sometimes find your head is hot, but your hands are chilled?
I know, I know, this is not a technical explanation, it is an analogy. I am trying to bring something no human has ever seen — runaway climate change — into the realm of the fathomable. Most people have had fevers, and many who have recognize that it is 1)a symptom (of an infection of some type), 2)a cause (of the death of the infecting organisms) and, most important here, 3)not uniform throughout the body. Analogically, climate change is a symptom of something that has changed (many believe human action in this case), it is causing other things (e.g., California water woes), and it is not uniform in its impacts.
NOTE: Just as fevers can have many causes, and that friend who sneezed on you yesterday may have caused today’s fever but your fever two months ago may have had some other cause, climate change can have many causes, and just because humans did not cause the previous ones does not mean they may not be causing this one. Of course, as I stated earlier, we’d better hope humans are causing this one, or we are in worse shape than we realize.
IAT
Well, in that case, as a self-proclaimed scientist, kindly provide a link to any empirical evidence which conclusively proves that “warming” causes “cooling”.
You have stated that the “outcome of {global warming} may be warming in some places, cooling in others.”
I believe this to be farcical. Please enlighten me, without references to psuedo-science alarmist sites that say the “jet stream will change latitude”, or “the Gulf Stream will stop flowing”, or similar nonsense.
You have accused me of confusing symptom and cause - OK, here is your opportunity to prove to me that global warming has caused cooling, in a scientifically meaningful manner, capable of empirical measurement and statistical validation.
I’m all ears - who knows, you may even convert me!
I think before I get rolling with a bunch of links, we need to agree that the theory concerns CLIMATE CHANGE, *not* GLOBAL WARMING. The MSM focuses on global warming, but scientists discuss climate change, not global warming. If we can’t agree to discuss the science using scientific as opposed to brain-dead MSM terms, then there’s no point in continuing.
Why? Because you seem to be all ears as to whether warming causes cooling, which is a silly question. If you want a serious answer, you’ll ask a serious question. And, one serious question is:
If the climate is de-stabilized by a shock to the system, what are the complex outcomes that would ensue. Would any such shock always produce uni-directional change on the globe, or might a more complex set of climatic responses follow?
That’s a serious question. If that’s what you mean to ask, let me know. However, if you mean to play the game of “when does making it hot make it cold,” there’s no need to continue.
Let me know.
IAT
IAT: Your comment:
“Talk about confusing symptom and cause. The original cause is warming, but the outcome may be warming in some places, cooling in others.”
You accused me of confusing symptom and cause. I asked you for emprical evidence.
Your response is sadly typical of climate change alarmists.
Prove to me that “… The original cause is warming, but the outcome may be warming in some places, cooling in others.”
That’s all I ask.
Don’t shift the goal-posts.
IAT:
To be perfectly frank, I don’t care whether the preferred nomenclature is “Global Warming” or “Climate Change”.
It doesn’t make one jot of difference, and in fact is merely deceitful semantics.
See, it MUST be “warming” upon which you and your ilk rely, because it is the effect of carbon dioxide (and other greenhouse gasses) upon the Sun’s infra-red reflection from the planet’s surface which seems to have got your knickers in a knot.
Warming. From the Sun. Warming. Contributed to by carbon dioxide. Warming. Causing climate change.
You say:
“Talk about confusing symptom and cause. The original cause is warming, but the outcome may be warming in some places, cooling in others.”
I refute your allegation that I have “confused” symptom and cause.
I have asked for proof.
Semantics is not at issue.
In my first post I noted I was talking about climate change. But, the use of the erroneous term persisted. I pointed out the goal post hours ago — I can’t help it if you’re looking in the wrong direction.
Although I doubt you’ll accept my evidence (of the claim that climate change theory is not about universal warming), here’s some:
1)
http://ipcc-wg1.ucar.edu/wg1/Report/AR4WG1_Print_Ch11.pdf
See page 850, column two, which reads, in part:
Snow season length and snow depth are very likely to decrease in most of North America except in the northernmost part of Canada where maximum snow depth is likely to increase.
2)
http://ipcc-wg1.ucar.edu/wg1/Report/AR4WG1_Print_Ch05.pdf
See page 391-392 which reads, in part:
A major feature of Figure 5.1 is the relatively large increase
in global ocean heat content during 1969 to 1980 and a sharp decrease during 1980 to 1983. The 0 to 700 m layer cooled at
a rate of 1.2 W m–2 during this period. Most of this cooling
occurred in the Pacifi c Ocean and may have been associated
with the reversal in polarity of the PDO (Stephens et al., 2001; Levitus et al., 2005c, see also Section 3.6.3). Examination of the geographical distribution of the differences in 0 to 700 m heat content between the 1977–1981 and 1965–1969 pentads and the 1986–1990 and 1977–1981 pentads shows that the pattern of heat content change has spatial scales of entire ocean basins and is also found in similar analyses by Ishii et al. (2006). The Pacifi c Ocean dominates the decadal variations of global heat
content during these two periods. The origin of this variability
is not well understood.
In other words, even as land mass temperatures are rising, the oceans are heating, but some cooling has been observed. More heating in the Pacific, which means other oceans may be cooling.
3)
Oh, and here’s a paper you might find interesting:
http://www.springerlink.com/content/g618316500q56235/
“Impact of carbonaceous aerosol emissions on regional climate change” by E. Roeckner, P. Stier, J. Feichter, S. Kloster, M. Esch and I. Fischer-Bruns
The abstract says:
Abstract The past and future evolution of atmospheric composition and climate has been simulated with a version of the Max Planck Institute Earth System Model (MPI-ESM). The system consists of the atmosphere, including a detailed representation of tropospheric aerosols, the land surface, and the ocean, including a model of the marine biogeochemistry which interacts with the atmosphere via the dust and sulfur cycles. In addition to the prescribed concentrations of carbon dioxide, ozone and other greenhouse gases, the model is driven by natural forcings (solar irradiance and volcanic aerosol), and by emissions of mineral dust, sea salt, sulfur, black carbon (BC) and particulate organic matter (POM). Transient climate simulations were performed for the twentieth century and extended into the twenty-first century, according to SRES scenario A1B, with two different assumptions on future emissions of carbonaceous aerosols (BC, POM). In the first experiment, BC and POM emissions decrease over Europe and China but increase at lower latitudes (central and South America, Africa, Middle East, India, Southeast Asia). In the second experiment, the BC and POM emissions are frozen at their levels of year 2000. According to these experiments the impact of projected changes in carbonaceaous aerosols on the global mean temperature is negligible, but significant changes are found at low latitudes. This includes a cooling of the surface, enhanced precipitation and runoff, and a wetter surface. These regional changes in surface climate are caused primarily by the atmospheric absorption of sunlight by increasing BC levels and, subsequently, by thermally driven circulations which favour the transport of moisture from the adjacent oceans. The vertical redistribution of solar energy is particularly large during the dry season in central Africa when the anomalous atmospheric heating of up to 60 W m−2 and a corresponding decrease in surface solar radiation leads to a marked surface cooling, reduced evaporation and a higher level of soil moisture, which persists throughout the year and contributes to the enhancement of precipitation during the wet season.
I.e., cooling in Africa. Of course, this is one model. There are several different models. The field is very active, and things are unclear. But, if you disagree that climate change can lead to both cooling and warming at the same time in different places, I suggest you contact those authors and ask them to clarify their claims. I’ve pretty much done all I can do here.
Respectfully yours,
IAT
IAT:
Thanks for another scalp to hang upon my AGW trophy wall.
A serious question: Can you confirm that you are in fact a scientist, and specify your field and honoraria, in which case your scalp will be exhibited in the special display area of my trophy wall, along with several others.
Thank you for playing.
Global warming predictions are just like Elliot Wave predictions: useless. There are so many knobs and dials in these models that after the fact, they can be twisted to get an exact fit. Then people use the models to predict what will happen. When it doesn’t happen, the knobs and dials can be twisted again to fit the data. Lather, rinse repeat.
It never boggles my mind that the weather reporters can’t predict tomorrow’s weather very well, but we’re supposed to trust that they can predict it 50 years into the future?
Lastly, the Earth has its own cycles, regardless of humans. It was damn hot during the Jurassic period, wasn’t it, and damn cold during the ice age? Was it man burning fossil fuels that caused these cycles? The Earth also lathers, rinses and repeats. We’re along for the ride.
I can’t tell you who will be murdered in New York City next year, nor can I tell you how many murders will occur on each day. But, I can tell you that the murder rate for the year will be around 7 per 100,000 +/- .6. It is often easier to predict a long-run trend than an exact event and its timing.
I assumed all my fellow bloggers here already knew that. Most of us accurately predicted every event now unfolding in the national housing market. Yet, for months, or years, we endured the smug attitudes, condescending idiocy, and outright hostility of those we tried to warn of the impending comeuppance. Why? Because we were not accurate enough on the timing, even though we were extremely accurate on the ultimate outcome.
So, comparing the weather forecaster to the climate forecaster is . . . unhelpful. Predicting the weather for June 9, 2008 in location X is much more difficult than predicting the climate for YEAR 2058 should A, B, and C happen, especially when you consider the tightness of the bounds needed for Monday’s forecast to be useful (e.g., if its supposed to rain during rush hour, I carry an umbrella, but if it will rain in late morning, say 10am-noon, no need to have an umbrella, and so on).
As a member of both the global warming and peak oil “crowds” who will be young enough to see the devastating impact of both, let me give my prediction to put up against John Gaul’s: by the middle of this century the area between Las Vegas and Kingman will remain almost totally depopulated and every single thing that Rhodes Homes builds will dry up and blow away.
k2dentalman,
You raise a good question. I suggested we need urgently address climate change because every species that evolves into existence evolves into existence in a particular climate. As climate changes, many species go extinct. Thus, humans may be done in by climate change, and therefore, to the extent possible, we should do what we can to slow or reverse it.
However, it is possible that humans will be no worse off if climate changes. By “no worse off” I mean that all of the necessities of human life — abundant potable water, feed, breathable air — and the developments that have increased human longevity — agriculture, drugs, and so forth — still exist, are accessible, and can be maintained. It is not clear this is true, and by the time it is clear one way or the other, it will likely be too late to do anything about it.
It is true that 99.9% of all species that ever lived are now extinct. But, we may be the first able to foresee and thus prevent its own extinction. If people choose to do nothing and let the climate do what it will, that is a defensible position. But, they should admit that is what they are willing to do, and not propose arguments about how humans didn’t cause it, so humans should be unconcerned. That argument is a red herring.
IAT
Why do I call it a red herring? Would those arguing we should do nothing because the doubt that humans caused climate change make the same argument in analogous situations:
1)A comet that will wipe out the species is speeding toward earth. We have the chance to deflect it’s path if we act quickly, but it will cost us trillions of dollars. But, wait! A vocal group of people say “It does not appear that humans caused the impending collision with the comet, so we shouldn’t do anything about it until we can prove a human role.”
2)An earthquake strikes a region of the world, thousands die, and tens of thousands are injured. We could relieve the suffering of thousands with a small outlay of pennies from every resident not affected. But wait! A vocal group of people rises up and says, “It does not appear that humans caused the earthquake, so we shouldn’t do anything about it until we can prove a human role.”
And so on.
This is a red herring. The presence of a red herring doesn’t mean the climate change thesis is right, but, I gotta say, *this* seems the funniest argument against the thesis that one could make. One wonders about the motivation behind the promulgation of such sophistry.
IAT
IAT,
Your circuitous argument above appears to be attempting to express the “Precautionary Principle” (a.k.a. the “Prevention Principle”), in vague and ambiguous terms.
Are you sure that you are a scientist?
The Precautionary Principle has been a mainstay of the loony left/environmentalist “watermelons” (green on the outside….red on the inside) for years.
In simple terms, the Precautionary Principle says that if there is any risk, no matter how remote the possibility, of harm to any group of people or the environment, then no matter the cost that risk of harm must be mitigated.
Seeing that you like analogies, unscientific as they tend to be, here is the perfect analogy for the Precautionary Principle, taken from your example (1) above, and mildly altered:
1)A comet that will wipe out the species is speeding toward earth.
There is a 1% chance that it may impact the planet.
We have the chance to deflect it’s path if we act quickly, but it will cost us trillions of dollars.
Should we spend trillions of dollars, (whilst causing utter chaos to the world econmy) building an enormous nuclear bomb, which we cannot test, and a huge rocket to deploy it, which we also cannot test?
As to your earthquake analogy, I do not understand this at all - are you suggesting that catastrophic earthquakes are anthropogenically driven?
Oh, JT, while I had disagreed with you, I had respected you. But, then you had to go and reveal your . . . inability to fairly dialogue. There was nothing in my analogy about a 1% chance of the comet hitting the planet. In my analogy we knew the comet was going to hit the planet.
And the earthquake one, yes, again, you reveal an inability to dialogue fairly, a commitment to “winning” (another example, the “trophy” wall). All very . . . unscientific.
But, because you insist on the clarification of the obvious, here goes:
1)The earthquake example is meant to convey the irrelevance of a human causal role for the question of whether we should heal human pain.
2)The comet example is meant to convey the irrelevance of a human causal role for the question of whether we should work to prevent human pain.
Now, as for the “Precautionary Principle,” I don’t think you aptly convey my view. There are a few parameters that go in to making decisions in situations of risk, some of which are (to simplify):
a)The probability of the dangerous event
b)The loss associated with the dangerous event
c)The cost of avoiding the dangerous event
d)The cost of waiting for better information on a-c.
Probabilities scale from 0 to 1; all other quantities can be variously scaled.
So, if the probability of an event is .000001, but the loss (b) is every single human on the planet, and the cost of avoiding the event (c) is within the realm of the spendable, and the cost (d) of waiting is in the best case scenario that nothing need be spent, but in the worst case scenario is the loss of every single human on the planet, well, most people would say those two losses (b and worst-case d) trump the low probability of the event.
I say “most people would say” because that really is a question of values. If you value human life low enough, then you wouldn’t conclude that we need act immediately. As a person who is a scientist I think it appropriate to identify where values enter the equation. Because values do enter the equation reasonable people can disagree on whether to do anything and even if the agree that something should be done, they can still disagree on what to do.
I suspect, JT, that if you could get your head around the idea that we are all trying to figure this out and disagreement is actually productive for that process, and could stop trying to “win,” maybe you’d see that the real problem here is not the science — every technological decision ever made has some degree of uncertainty, because scientists cannot eradicate uncertainty. If you can’t handle uncertainty, then you shouldn’t be making decisions. No, the problem is that people have different values — I value fireplaces, someone else values eating cow, someone else values flying to Asia, and so on. All those acts impact the prospects of climate change.
Because people have different values, rather than calmly discuss those differences and come to some agreements, they often seize on the ineradicable uncertainty of science to justify their refusal to negotiate change. But as any true scientist will tell you, we can’t wait for the science to confirm everything, because if that’s the plan, we can stop waiting, because science won’t completely confirm “everything” until we run the experiment (and, ideally, run it multiple times). However, as humans may be extinguished by said experiment, I would say my values call for us to spend the money to reduce the risk, not wait for conclusive proof we won’t get until it is either too late, or vastly more expensive and destructive.
Sadly, if looking at the housing market has taught me anything, it is people prefer to wait for all the data — even if waiting destroys them, and even if a cold-calculation shorn of emotion would have revealed their impending doom.
No trophy case for me — I prefer dialogue, not decapitations.
IAT
I can’t tell you who will be murdered in New York City next year, nor can I tell you how many murders will occur on each day. But, I can tell you that the murder rate for the year will be around 7 per 100,000 +/- .6. It is often easier to predict a long-run trend than an exact event and its timing.
I assumed all my fellow bloggers here already knew that. Most of us accurately predicted every event now unfolding in the national housing market. Yet, for months, or years, we endured the smug attitudes, condescending idiocy, and outright hostility of those we tried to warn of the impending comeuppance. Why? Because we were not accurate enough on the timing, even though we were extremely accurate on the ultimate outcome.
So, comparing the weather forecaster to the climate forecaster is . . . unhelpful. Predicting the weather for June 9, 2008 in location X is much more difficult than predicting the climate for YEAR 2058 should A, B, and C happen, especially when you consider the tightness of the bounds needed for Monday’s forecast to be useful (e.g., if its supposed to rain during rush hour, I carry an umbrella, but if it will rain in late morning, say 10am-noon, no need to have an umbrella, and so on).
(Apologies if this posts multiple times — it has failed to go through)
Dear Michael Viking,
I can’t tell you who will be murdered in New York City next year, nor can I tell you how many murders will occur on each day. But, I can tell you that the murder rate for the year will be around 7 per 100,000 +/- .6. It is often easier to predict a long-run trend than an exact event and its timing.
I assumed all my fellow bloggers here already knew that. Most of us accurately predicted every event now unfolding in the national housing market. Yet, for months, or years, we endured the smug attitudes, condescending idiocy, and outright hostility of those we tried to warn of the impending comeuppance. Why? Because we were not accurate enough on the timing, even though we were extremely accurate on the ultimate outcome.
So, comparing the weather forecaster to the climate forecaster is . . . unhelpful. Predicting the weather for June 9, 2008 in location X is much more difficult than predicting the climate for YEAR 2058 should A, B, and C happen, especially when you consider the tightness of the bounds needed for Monday’s forecast to be useful (e.g., if its supposed to rain during rush hour, I carry an umbrella, but if it will rain in late morning, say 10am-noon, no need to have an umbrella, and so on).
“‘People need to make their [home-buying decisions] not on short-term trends but on long-term trends”
Or you could turn that statement around and say, “If you are only in a position to make less than 5-year plans regarding where you live, then definitely don’t buy!”
lol.
Its starting to become common talk about the more intelligent non-bears that we’re in a recession. I’m talking about small business owners (successful ones, not the candle shops…), doctors, etc. They either have seen the signs before or else recognize that an economic downswing is effecting their business. Its has really started to hit some of the previously immune areas within the last 60 days. Look at restaurant staffing… its down.
Got Popcorn,
Neil
Why, oh why would they build in the middle of a desert?
Because Western water law allows interests to totally take all of a river flow and divert it for commerce. Hence, Fresno, a hot hell hole where I reside, grows loads of crops, as we all know. The San Joaquin (fed by Sierra snows), goes dry not far from where it is dammed at Millerton Lake. Usually at a place, I swear to God, is named Gravelly Ford.
They do the sane general thing in Bakedfield, where they have a sense of humor and sell T-shirts, “Bakersfield, a riverbed runs through it.”
I rarely use all caps and am not shouting, but hear my testimony: ALL OF THE WATER Is diverted.
And no, they don’t “how you did it back east,” I’m told, as if logic flows from certain geographic regions and not others. I’m from Ohio originally, where if someone says “the river’s up,” it is not a trifling comment.
Anyway, drought will continue to put downard pressure on farm lands in west Fresno. No water no crops no value, not even spec homes.
Prolly room for more prisons to suck our taxes away.
Anybdoy paying attention to the FlipThatHouse show?
I’ve always wonder whether they are BSing. Today they are showing a house bought in Whittier/CA bought for pretty much scrap value $535k and they want to sell for $850k with $100k improvements.
They totally change the roof, every visible room, the pipes, the back/front yard, and guess what $100k in CA get you? My friend spent $30k just upgrading their kitchen (not even as nice as shown), the show’s price? $6000. Probably only the material cost.
Then they claim that the neighborhood’s cheapest price is $850k. I look through the listings on Realtors and there is absolutely no house in Whittier sells for more than $700k with less than 2000sf (their house has only 1600sq). And it seems houses in $600k range there are still in bigger footage and has big yards, a lot of them are pretty well maintained as well.
Yeah right, you can just buy the house, your project manager “friend” will take care of the rest, even putting his own money buying your flipping material, and you make $200k while his bill is only $100k, INCLUDING all your costs rehabitting the house.
What, your project manager can’t get a HELLO or no money down loan while you can pay a $535k crap and make $200k with him putting his money down?
This is hilarous.
I saw one today. I’m not sure if it was the other show “flip this house”. Well a flipper renovated a LA home. (Looked like it was in the bad part of town. He bought it for $290K and spent 35K. At the end of the show (first day of the open house), a lady came in and saw the house, signed the loan docs on the spot, and purchased it that same day. I was laughing my ass off. They even had the “SOLD” sign handy and stuck it on the sign. The house was sold for $405K.
Okay, this lady was alone, looked lost of words. I was thinking, how can this lady pay a $2800K loan payment plus all the other stuff like tax and insurance etc. This was a “2008″ episode. the flipper looked like he was the RE and a Loan broker. It looked like a drug deal. Hilarious.
I hear Tucson RE is holding up better than Phoenix ? The expensive areas and homes above 500K? Lots of for sale signs up in expensive equestrian part ofAhwatukee Phoenix today.
“Realtors had been reporting a steady decline in median home prices during the first quarter, largely due to the high number of bank-owned properties that were selling below market value, Kelley said.”
You mean homes that were selling below your delusional bubble market value.