We Can’t Give Away Homes At $100,000
The Denver Post reports from Colorado. “Real-estate agents note that resort communities have certain advantages over the Front Range and much of the nation: Foreclosures have not been a big problem, they remain attractive to retiring baby boomers, and the rich just keep on buying, which helps prop up overall sales. ‘We aren’t seeing foreclosures or the wholesale abandoning of value,’ said Doug Landin, managing broker at Eagle Ranch. ‘I think we are seeing maybe a little bit of a market correction.’”
“Summit County’s inventory of 1,955 homes for sale marks the highest point in three years. Meanwhile, the value of total Summit County home sales this year through May is down 22 percent from the same period last year.”
“Property in Eagle Ranch is still selling for at least 90 percent of asking price, Landin said.”
“But a 10 percent discount off the asking price of a house, while typical in most real-estate markets, is a notable drop in a mountain community. A year ago, an offer that came in 10 percent below asking price could ‘insult’ the seller, Landin said. Soon, it could be welcomed, he said.”
“‘People who are waiting for it to hit the bottom are rolling the dice,’ broker John Trtanj said as he lounged at his open house for a $600,000 two-bedroom condo in Singletree. ‘We’ve been saying for 30 years, ‘It can’t get any higher.’ And every year, it does. And when it gets higher again, this will be the time that people look back and call the best time to buy.’”
The Steamboat Pilot from Colorado. “Recent changes to the city’s community housing guidelines will result in higher costs to developers and increased affordable housing in Steamboat Springs, city officials said Tuesday.”
“City Council President Loui Antonucci, who is also a Realtor, voiced concern about basing the number on home sales prices from last year - a time he considered to be a ‘bubble’ when homes sold for much higher prices than they are selling for now.”
“‘Are these numbers that accurate? Prices are coming down every week. I’m not sure we should base it on those prices,’ Antonucci said.”
The Grande Junction Sentinel from Colorado. “Residential and commercial real estate sales in the Grand Valley are down 28 percent from the same time last year, and home sales decreased by 18 percent, lending officials said last week.”
“‘We’ve had eight quarters of declining real estate sales, so that is more than a trend,’ said Bob Reece, district manager of Stewart Title Company. ‘That’s a reality of where we are today. Anytime you have a decline in the number of home sales, you know you’re going to have a softening of prices.’”
“Housing inventory available is at 2,236 houses right now, Reece said. He didn’t have the inventory numbers from a year ago but recalled ‘it was substantially less.’ Property values in Grand Junction went up so quickly in the past few years that the average buyer got reluctant to buy and borrow money, he said.”
“Moab, Utah’s days as a sleepy, hidden-gem destination with a population of 4,875, according to the U.S. Census, may be numbered. The largest resort development in the town’s history, the Lionsback Resort, is weaving its way through approval and annexation into the city.”
“Moab is under a housing crunch, said Jeff Reinhart, the city’s planning director. Vacation-home seekers are buying homes that would otherwise be affordable for full-time residents, he said, and that is driving up prices.”
”One in three homes in Moab is a vacation home,’ Reinhart said. ‘The growth in that market is killing us.’”
“Julianne Fitzgerald, however, says that market no longer exists. Fitzgerald, a real estate broker in Moab who opposes the development, said Lionsback most likely would sit empty and unsold. She claims the demand for vacation homes bottomed out four months ago after a peak in 2006.”
“‘Right now, we can’t give away homes at $100,000,’ Fitzgerald said. ‘How do they expect to sell $400,000 starter mansions?’”
The Deseret News from Utah. “Home values across the nation may be tanking, but that’s not the case in Salt Lake County. Although appreciation isn’t as high as years past, ‘the Salt Lake market still is fairly strong and robust compared to the national market,’ said Tom Leech, an economic and statistical manager at the Salt Lake County Assessor’s Office.”
“Lee Gardner, Salt Lake County assessor, said he’s not in the business of philosophizing why home values are going up or down, but said that high gas prices could be in play in the southwest corner of the valley.”
“The construction boom out there might not be helping either, Leech said. ‘There just hasn’t been the demand to move out there and occupy it yet,’ Leech said.”
From Utah Business. “Utah’s residential construction industry remains dismal, as home and condominium sales continued to slow during recent months, according to Newreach, a Salt Lake City-based real estate research firm.”
“The report states that the number of new home and condo closings in Salt Lake County fell to 550 units in the second quarter of 2008, down 48 percent from 1,058 closings in the second quarter of 2007. Lot and home prices have also decreased, according to the report.”
“And Salt Lake County isn’t the only county in the Beehive State experiencing a drop in home/condo sales. ‘We’re seeing a decline across much of the state,’ said Todd Cook, VP of housing at Newreach.”
“Salt Lake County currently has 944 complete unoccupied homes/condos on the market, an 8 percent decline from 1,037 units available in the fourth quarter of 2007. This drop is significant, as the state’s standing inventory during the fourth quarter of 2007 increased 205 percent when compared to the fourth quarter of 2006.”
“Jason Eldredge, executive VP of sales at Newreach also noted that there are still development opportunities in the state. ‘Every place isn’t oversupplied; you just need to be sure that your location and prices are right,’ he said.”
“Eldredge reminded developers to be mindful of gas prices and other rising costs when searching for a location to build. ‘People can’t afford to buy on the outskirts because the money that they’re saving by buying there is lost in how much they have to spend on gas.’”
The Arizona Republic. “Metropolitan Phoenix’s foreclosure problem has spread. Many Valley neighborhoods closer in, particularly in south, west and central Phoenix, now have the highest foreclosure rates, according to an Arizona Republic analysis.”
“Foreclosures across metro Phoenix number 16,647 for the first half of the year compared with 9,966 during all of 2007 and 1,070 in 2006.”
“Many of the homes going into foreclosure were bought or refinanced during the peak of the housing boom in 2006, according to property records. Home prices are down almost 30 percent from that time, so many people struggling now owe much more than their home is worth.”
“‘It has become more of an equity problem than a subprime problem,’ said Tom Ruff, a real-estate analyst with Information Market.”
“Notice of trustee sales, or pre-foreclosures, also continue to climb. There were 35,111 pre-foreclosures filed in Maricopa County through July. That compares with 30,166 for all of 2007. When pre-foreclosures stop climbing, foreclosures could peak a few months later, Ruff said.”
“As long as foreclosures continue to rise, home prices are likely to fall.”
“‘Foreclosures are a problem for almost every neighborhood of the Valley now,’ said Margie O’Campo de Castillo of Arizona Dream Realty. ‘The problem has trickled in and will continue to get worse as people lose jobs and struggle in this economy.’”
“Real estate experts say investors and speculators opened the spigot on the foreclosure crisis but now it’s the typical homeowner who is paying the price as the result of job losses in a struggling economy.”
“During June, 40 percent of Mesa’s recorded home sales were foreclosures, 27 percent of Chandler’s were foreclosures and 20 percent of Tempe’s were foreclosures, said Jay Butler, director of real estate studies at Arizona State University.”
“‘My big concern is we’re getting change from the investor-driven to properties that were owner occupied because of job losses’ and other factors, Butler said. ‘No one sees a quick turnaround from the economic issues that the Phoenix area has been having.’”
“He said the Arizona economy has lost 26,000 jobs on a year-to-year comparison basis.”
“Bill Ryan, a broker with RE/Max Elite, which specializes in the Southeast Valley, estimated that about three-quarters of the houses being purchased are foreclosures ‘I have not personally seen a lot of properties go into foreclosure from unemployment,’ Ryan said.”
“The primary reason is that homeowners are giving up on their properties because prices are so low that they can’t envision making money off their home for at least five years, he said.”
“‘Everybody has got to get back to the mindset that you buy a house to live in,’ rather than turn a quick buck, Ryan said.”
In Business Las Vegas from Nevada. “Despite the housing slowdown that has dropped median prices more than 20 percent in the past year, affordability remains a long-term problem that could stop industries and workers from moving to Southern Nevada, according to a study done on behalf of local governments.”
“Even with the price drops, about 45 percent of the market was priced above $300,000, but homes need to be priced between $212,000 to $276,000 to be considered affordable, the study said. Between January and April, 57 percent of the housing units sold on the MLS were priced $250,000 and below.”
“The bigger concern about the housing market, however, is not prices, but the availability of credit, said Steve Schauer, a loan officer with Flagship Financial Group.”
“‘I don’t think the prices are the issue but the stricter loan guidelines,’ said Schauer. That has prevented many buyers from getting loans without putting down 3 percent to 5 percent, he said.”
“Eric Trump, VP of development and acquisitions for his dad’s company, has been coming to Las Vegas every two to four weeks overseeing the 1,282-room Trump International Hotel.”
“The Trump tower in Las Vegas has been deemed a success with 98 percent of the 1,282 units sold. The closings have been slowed by the credit market making it tougher on buyers to wrap up loans. It’s a matter of paper pushing and will take at least six more months to move closings along, he says.”
“‘It is no secret the market conditions have changed,’ Trump says. ‘Eighteen months ago, you could write a FICO score on a cocktail napkin and get what you want. Now with the subprime and overall economy, loans are being more scrutinized.’”
The Review Journal from Nevada. “Short sales have become increasingly prevalent in Las Vegas, where home values have dropped by more than 20 percent in the past year and some 5,000 homes are headed for foreclosure.”
“While more than half of all home sales in Las Vegas have been reported as foreclosures or short sales, the figure is actually closer to 80 percent in the past few weeks, a home loan consultant said.”
“About 26 percent of available inventory in Las Vegas, or 5,800 units, are listed as short sales, reported Applied Analysis.”
“Most buyers get frustrated and go looking for another house, Jo-Anne Guderian of Coldwell Banker Premier Realty said. ‘I had one property in escrow for three months and the buyer walked away,’ Guderian said. ‘They got tired of waiting. I put it back on the market at $325,000 and got an offer immediately.’”
“The problem, she said, is that the lender, Countrywide Mortgage, keeps coming up with a higher price than the market will bear. Countrywide just sold a two-story, 3,758-square-foot model match in the same area for $295,000, she said.”
“Applied Analysis principal Brian Gordon said there’s a ‘disconnect’ between the 26 percent short-sale listings and the 6.7 percent short-sale closings over the past three months.”
“Many agents believe the closing ratios for short sales under contract could be as low as 10 percent to 20 percent, Thomas Taylor of Desert Classic Properties said.”
“‘If this is the case, or anywhere near the case, there are hundreds of buyers being put on hold from a very clogged-up, nonperforming system,’ he said. ‘There is a rumor that Countrywide has decided to not do any short sales for four to six months. This can have a big impact on the market.’”
“KB Home is moving forward with construction and sales of affordable townhomes at Inspirada, a master-planned community in west Henderson. The Monet collection, as it’s being called, are priced from the $140,000s for 1,087 square feet.”
“‘Our home designs and floor plans are driven by market demand and today’s economics are driving some homebuyers to choose smaller, more affordable floor plans,’ KB spokesman Craig LeMessurier said.”
“KB’s larger Rembrandt townhomes at Inspirada start around $190,000 for 1,643 square feet.”
“Tim Sullivan, president of San Diego-based Sullivan Group, advised real estate professionals to watch out for the under-$200,000 segment of the housing market. He counted 21 active subdivisions in Las Vegas with at least one floor plan under $150,000.”
“The percentage of homes selling for under $250,000 went from 28.2 percent in 2005 to 42 percent in 2008 and the percentage of homes under $300,000 went from 44.8 percent to 63.5 percent during the same period.”
“Las Vegas’ housing opportunity index, which measures what percentage of median income households can afford a median-priced home, has gone from 64.4 percent in 2000 to 25 percent in 2007, Sullivan said at a recent seminar.”
The Las Vegas Sun from Nevada. “For more than a decade, Las Vegas has been the envy of the nation in at least one regard: its explosive growth. It’s a story Nevadans have grown accustomed to hearing. And its repeated tellings have fed the belief that such growth would never end, that Las Vegas was immune from the economic pressures that affect the rest of the country.”
“In the past week, several signs, read together, show that long-held assumptions about growth in Southern Nevada could be fundamentally changing.”
“In his previous job, when he compiled Clark County’s population estimates during the 1990s, Jeff Hardcastle said people often approached him with the same question regarding the region’s growth: ‘How long can this go on?’”
“As long as four factors remained in place, Hardcastle would reply: the relative monopoly held by Nevada’s gaming industry; the lower cost of housing, especially compared with neighboring California; the stable local and national economies; and the availability of natural resources such as water and land on which to build houses.”
“‘Since 2001, pretty much all that’s been changing,’ Hardcastle said. ‘And now we’re seeing the culmination of some of these changes.’”
“Commercial development here - which is driven by travel and tourism - has slowed dramatically. Associated General Contractors reported the value of commercial projects permitted during the second quarter of 2008 dropped 66 percent, to $131 million, from the second quarter of 2007.”
“‘Those decisions to build 30,000 hotel rooms were made several years back,’ when times were good, said Linda Macey, properties manager for Southwest Airlines. ‘We’re not sure if anyone knows whether all those rooms will be filled.’”
“Dusty Dickens retired in 2005 after 10 years as director of zoning, demographics and real estate for the School District. Even before her retirement, Dickens said, there were indications growth was slowing. During the peak of the housing boom, teachers and families were selling their homes and relocating to cash in on the bonanza.”
“‘Now you flip it the other way, and families are leaving because they’ve lost their homes,’ Dickens said. ‘Did we see this coming two or five or seven years ago? I don’t think anyone would have seen this sharp a downturn was coming.’”
‘As long as four factors remained in place, Hardcastle would reply: the relative monopoly held by Nevada’s gaming industry; the lower cost of housing, especially compared with neighboring California; the stable local and national economies; and the availability of natural resources such as water and land on which to build houses.’ ‘Since 2001, pretty much all that’s been changing,’ Hardcastle said.’
‘Foreclosures across metro Phoenix number 16,647 for the first half of the year compared with 9,966 during all of 2007 and 1,070 in 2006. Many of the homes going into foreclosure were bought or refinanced during the peak of the housing boom in 2006, according to property records. Home prices are down almost 30 percent from that time, so many people struggling now owe much more than their home is worth.’
‘It has become more of an equity problem than a subprime problem,’ said Tom Ruff’
Yep, cheap land and houses are what the western economies rely on, and these yahoos blew right through that. But the only thing that will get us back on our feet is a return to those fundamentals.
The Republic was pretty quiet about going from bad to worse, and I suppose that is because they played a big role in putting us here. But I expect it won’t be long before we’ll hear the industry beg the states and the BLM to auction land off as cheaply as possible. There is no other way out.
I think Las Vegas may have a bigger problem than that. “Sin” is now ubiquitous, as there are no taboos left, and the air transportation industry is going to tank. Sex, booze and gambling may be a “necessity,” but sex, booze and gambling far from home in a desert is a luxury.
Most visitors to sin city come by car, and it’s $200 to get there and back in gas, from L.A.
Thus, they are staying away in droves…
That seems a bit high. IIRC its about a 500 mile RT (According to mapquest its 263 miles from Caesars Palace to Disneyland)). At 20 mpg that’s 25 gallons which at $5 per gallon is only $125.
If they are driving a 4 cylinder sedan (say a Honda Accord or Toyota Camry) they could get 30 mpg. That’s about 17 gallons. which would be about $80.
If they are staying away, it because many of them are broke to begin with. Gas prices are irrelevant for them. If you have money, an extra $40-60 won’t break the bank.
I was thinking blingy SUV, to bettor suit my premise.
p.s.
Nobody ever speeds (goodbye mpg) on desolate stretches of highway, do they?
Used to cost me < 3.00 in my VW circa 1970. LOL
Nobody ever speeds (goodbye mpg) on desolate stretches of highway, do they?
As long as the speed is steady they should do ok, unless they are driving one of those behemoths with a high drag coefficient.
I was thinking blingy SUV, to bettor suit my premise.
LOL. I understand. Still when visiting from Colorado, it seems like everyone in California drives a 4 cylinder Asian sedan (unless they cfan afford something nicer). But really, I think that you see a higher percentage of behemoths out here in mile high country.
Many of the so called “Boom Towns” across the nation have become the “Economic Blackholes” of today.
Fight the suction as hard as you want, some are just going to lose their shirts and others won’t EVER see the Debt Free Light of Day…Again
Right, just ask Elliot. Hell, they’ll send them up to your room. ( Hard to explain all that travel time to the Mrs? )
It’s easy to gamble from your computer in your home. No need to fly to vegas.
Hey, what ever happened to that Realty Hound guy? Back about a year and a half ago he slammed the commenters here for predicting a collapse in Arizona real estate. I remember him saying that HHB’ers were “on the other side of the sewer grate”.
you can say hello to realty hound anytime between the hrs of 7am-4pm at his local wally world. but look for the smile on his button because it sure wont be on his face.
Yes, but is the “other” side of the sewer grate necessarily the “wrong” side of the sewer grate?
“‘Now you flip it the other way, and families are leaving because they’ve lost their homes,’ Dickens said. ‘Did we see this coming two or five or seven years ago? I don’t think anyone would have seen this sharp a downturn was coming.’”
______________________________________________________________
“It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going direct to Heaven, we were all going direct the other way—in short, the period was so far like the present period, that some of its noisiest authorities insisted on its being received, for good or for evil, in the superlative degree of comparison only.”
Charles Dickens
Tale of Two Cities. Which two cities would fit today?
Only one by Charles Dickens that I have read more than once.
It’s always haves and have nots, only the names of the places vary.
“‘Everybody has got to get back to the mindset that you buy a house to live in,’ rather than turn a quick buck, Ryan said.”
Then prices need to be in-line with rents.
Bubble prices could only be justified by the false belief that prices always go up. If prices aren’t going up, then prices need to fall back to where they were before this insane bubble began.
My house was bought in 2003 for $130K. Peaked in 2006 at $270K. Now at about $190K. As soon as it is $150K or so, then people can think about buying a house as a place to live. Until then, RENTING is the better way to go.
“‘I don’t think the prices are the issue but the stricter loan guidelines,’ said Schauer. That has prevented many buyers from getting loans without putting down 3 percent to 5 percent, he said.”
Three to five percent down is “strict”?!? I guess I am living in Bizarro World….how did I get here??
It is if you don’t have any money in the bank.
John F,
Oh I don’t hold any delusions we’ll have a return to 20% down any time soon. Lenders will be very lucky if they can find potential buyers with closing costs on hand. It’s not that ‘you’re’ being unreasonable but the consumer just can’t fit that mold any longer. Any more than we can pay for a new car with cash?
If we can’t get people to save up for their annual vacations, what chance do we have to get them to save up for a house? But rather than take the low road I prefer to think we can at some point soon actually encourage people to ramp up their retirement savings and allow them in some fashion show that as a “security” for a home loan.
The more they bulk up their 401k… the better the rate they’ll get and the more disposable income they’ll have every month! We have to create a better connection between saving and consumption.
I realize a lot of people will be quick to point out that it is in fact quite ‘already’ the case but before we further consider “$10,000 Tax CREDITS” for buying a NEW home ( NAHB’s brain fart ) can we at least… explore this?
How about this?
You have zilch-o in your 401K at work, correct Mr/Mrs UnqualifiedBorrower? Well, if you go down and to HR and sign up, and show us, that you are putting $100 a month into EACH of your employers plan and then SHOW us that payroll deduction slip we will consider ‘that’ your “security” for your home loan! Sound fair?
I mean, we can’t take decade’s long drug addicts right off the street and give them executive positions can we? We need some baby steps. I happen to think this is a nice start…
Most people do not have 20% to put down in areas like Silicon Valley. So that means they are a bad risk? Not sure I’m seeing a correlation here.
potential buyer,
I’m not sure I see it either? For the most part we as Americans pay for today’s consumption with tomorrow’s paycheck. I just wanted to introduce the possibility that we were being a little in denial about that?
I’m all for reasonable DP’s, but if we can sculpt the consumer’s beg-havior to the negative side, why not at least make an attempt to influence in positive ways for a change?
They used to. And they would again if it were required. Of course, you’d see fewer leased BMWs floating around. Claiming that Silicon Valley people can’t save 20% down because they have such high salaries is stupid. If prices drop back to roughly 1998, I’d have a 50% downpayment.
And when East Menlo is back to costing 100k, a 20k downpayment will be managable by even the service industry.
….I put down 40% on my condo. The bank people must have loved me.
‘We’ve been saying for 30 years, ‘It can’t get any higher.’ And every year, it does. And when it gets higher again, this will be the time that people look back and call the best time to buy.’”
I’d love to corner this guy in the office and place a friendly little bet. Nothing too big - maybe $500 bucks.
“I don’t think anyone would have seen this sharp a downturn was coming.’””
….Um, speak for yourself buddy!!!
“Eric Trump, VP of development and acquisitions for his dad’s company, has been coming to Las Vegas every two to four weeks overseeing the 1,282-room Trump International Hotel.”
“The Trump tower in Las Vegas has been deemed a success with 98 percent of the 1,282 units sold. The closings have been slowed by the credit market making it tougher on buyers to wrap up loans. It’s a matter of paper pushing and will take at least six more months to move closings along, he says.”
______________________________________________________________
98% sold?
Where can I book a bet taking the under?
“you could write a FICO score on a cocktail napkin and get what you want”
Chip off the old block I tell ya’! Great way to do business. Besides, does one ‘really’ need to get on a plane and fly all the way to Vegas every other week to get a sense of what is going on out there? Seriously. What ELSE is young squire Trump “acquiring”?
Gambling/drinking habits? Herpes?
98% put < 1% down and signed a contract, which Trump pretends means sold, but really means bought an option buy which they will refuse to execute.
And you could probably use a credit card to pay the 1%.
Bush bad may sign housing scam bill
no wonder I’m LP
Does LP=long playing?
A broken record.
Naw, taxme’s just hiding out with his Les Paul guitar again. Right, Ex?
“‘Right now, we can’t give away homes at $100,000,’ Fitzgerald said.
Silly me, I always thought that a “give away” was a freebie. 100K is not chump change, especially considering the town’s low wages (median is 38K per family)
(median is 38K per family)
Must be a mistake cause I thought all along that would put you in the $499,000 range?
I wonder what future econ textbooks will have to say about this?
They could try giving them away for $50,000.
“City Council President Loui Antonucci, who is also a Realtor, voiced concern about basing the number on home sales prices from last year - a time he considered to be a ‘bubble’ when homes sold for much higher prices than they are selling for now.”
We were in Steamboat for a soccer tournament last summer. Cranes all over the place. Definitely bubble city (at least for vacation condos). We skipped the tournament this year. I wonder if they are still building like crazy.
Also, Steamboat is your typical tourist town: a minority of well to do’s: doctors, small business owners, gov’t employees, out of town property owners (owning a place in Steamboat is a status symbol in Ft. Collins), etc., and a boatload of po’ folks making $10/hr.
Another report for the Crestred Butte MLS -
Over 15 housing lots under $150K - that was unheard of two years go. In 2005 the same lots were all over $200K!
First hand account….
Went out of town for the week of the 4th of July. Left my dog with SIL, yes, the same SIL that bought a new home just before walking away from her old home… Dog got out. When we got back to town we spent several nights driving around the neighborhood looking for the dog (yes, we found her and got her back).
So, one of the houses has big “BANKED OWNED AUCTION” signs. Right across the street from the builder models. Was driving around the Saturday and Sunday after the 4th looking for the dog. House next door to the bank owned auction… Garage sale both days.
Items for sale at the garage sale?
Large sofas, dining room set, clothes washer and dryer, lawn mower, BBQ grill (pretty much everything you’d need to dump if moving into a small apartment… Oh yea… Also little things you’d no longer need, like water heater, dish washer, toilets, granite counter tops, kitchen cabnets, light fixtures…
The oldest of these houses are about 2-3 years old with new development continuing. 2 things I noticed. 1) There were a ton of “for sale” signs all over the neighborhood. 2) Lots of vehicles with placards on them… Plumbing, construction, landscaping, realtor, electrician, computer services, florist, photographer, etc. etc. etc.
Seems just about everyone in the state was self-employeed in some way. No wonder the unemployment rate has not peaked. People aren’t unemployed, they are self-employed and just having trouble signing new work…
On a side note, 2 of my wife’s co-workers that she regularly eats lunch with have stopped making payments on their houses. One can’t make payments until she’s able to sell the quads, toy hauler and 8 MPG truck needed to tow it. The other wants to refi her 3 mortgages into a new lower-rate loan and the lenders won’t talk to her if she is current.
One of my co-workers is ready to walk fro the house he closed on a year ago. Still has his past house that he’d leased out for a year waiting for the market to recover. When the lease is up, he plans to move back into the old house and walk from the new.
And, the lady I talked out of buying 9 months ago, is now shopping deals again. They can’t possibly go lower, can they. Look woman, we’re only half-way done with this correction!
Wow, all those used consumer goods now competing with the new consumer goods that the retailers absolutely must sell to remain in business.
Can the retailers hang on long enough to outlast the rapidly expanding, but ever depreciating, supply of FB goods?
Seems just about everyone in the state was self-employeed in some way.
It feels that way out here too. When times where good these guys all had money coming out of their ears. All driving 40-50K vehicles, taking vacations to Hawaii and Disneyworld, etc.
funny subject title … my Dutch newspaper has a lengthy article today about why starter homes cost upwards from 200K euro (over $ 300K) over here, and not just 100K euro. For perspective: local median wage is around 25K euro.
It’s all about homeowner subsidies (people here still buy the most expensive home they can get their sticky fingers on, as all downside risk is beared by the taxpayer), entitlement (why start out with a 1-2 bedroom POS home when you are twenty and without a job, if the government will make sure you can own a new 3-4 bedroom home for the same monthly cost) and ridiculous building cost (a construction worker with a few years of job experience takes home more pay than an average academic worker).
And because the cost of land is totally controlled by local government, building societies and big developers, you can hardly buy a piece of land for a tiny starter home for those $ 100K. Obviously things ARE very different in the Netherlands, maybe it is because global warming is limiting the amount of available land ;-(
I do think that “being underwater” might have a different meaning in Holland!
Being “underwater” has a different meaning in Holland!
I talked to a relative who was in Grand County, Colorado and he said that there were many places for sale near Grand Lake. The pine beetles have destroyed or are destroying the trees so everything there is looking pretty desolate.
Prices are still now affordable but seem to be coming down with the increasing inventory.
When I was in Beaver Creek in April, there was apparently a lot of inventory for sale in the mountains (Eagle, Summit Counties).
Retiring baby-boomers are going to be buying this inventory. Where have we heard that before…. Florida… That’s right, Florida real estate is on a permanently high plateau as retiring baby-boomers flock down there.
Retiring baby-boomers are going to be buying this inventory.
Wait until they see how cold and isolated Grand County is in the Winter. Trailridge Rd is closed in the non summer months, so no short ride to Larimer County then, and Denver is far, far away.
Its a beautiful place in the summer, right next door to Rocky Mountain National Park. But its seriously lacking in the amenities found in the ski resort towns, unless you are willing to drive to Winter Park.
Moskie country. They bite harder at the higher altitude, have to, as there’s less air pressure. Or something like that.
Or when they open the back door and find a bear or mountain lion in the back yard. Or a bunch a of Elk (not so scary as bear, but be careful!).
Hey, INColorado, now that I’m also in Colorado, my neighbor sighted a mtn lion in her yard the other day, and the other neighbor saw a black bear. I’ll take them over the moskies, cause they run away when they see you (at least these did) and the moskies gang up when they see you.
But Grand Lake has critters I’m truly afraid of, and that’s those darn moose, they don’t mess around. Mountain lions usually will leave you alone, moose like to charge.
I’ve never been lucky enough to see a moose. Elk seem to be everywhere however.
“starter mansions”
WTF?!?!!??!
SAN DIEGO (Reuters) - San Diego City Attorney Michael Aguirre said on Wednesday he had filed a lawsuit against Bank of America Corp (NYSE:BAC - News) and its Countrywide unit to prevent the mortgage lenders from foreclosing on homes in his city, which he aims to make a “foreclosure sanctuary.”
Aguirre said he plans to file similar lawsuits against Washington Mutual Inc (NYSE:WM - News), Wells Fargo & Co (NYSE:WFC - News) and Wachovia Corp (NYSE:WB - News) in an effort to make the lenders negotiate with mortgage borrowers facing foreclosure.
“We would like to see San Diego become a foreclosure sanctuary,” Aguirre said.
“We haven’t seen the lawsuit and can’t comment,” said Bank of America spokeswoman Shirley Norton.
“foreclosure sanctuary”?
Tijuana-adjacent’s attorney is tilting @ windmills, real or imagined.
‘“We would like to see San Diego become a foreclosure sanctuary,” Aguirre said.’
It seems to be more of a foreclosure hot spot than a sanctuary.
Wouldn’t Aguirre’s proposal override some provision of the Constitution? (Not that there is anything all that unusual about that these days…)
First a sanctuary city for illegals, and now a sanctuary city for deadbeats. No wonder the city government is so corrupt…
San Diego’s government is 2nd to none. (literally)
“We would like to see San Diego become a foreclosure sanctuary,” Aguirre said.
Knock yourself out sparky, you’re just stirring the pot.
He’s gonna make San Diego a “Mortgage Mortuary” when nobody will lend a single thin dime there.
“Aguirre said he plans to file similar lawsuits… in an effort to make the lenders negotiate with mortgage borrowers facing foreclosure.”
He assumes they want to save their home. My guess is that quite a number of folks who find they won’t qualify for relief under congress’s proposed housing bill will whine about it endlessly to the media, take advantage of a few months’ free rent and finally walk away.
Hey HBB friends, it’s me, Lost, and I’m no longer in Utah but am living in a pretty log house with great views of Colorado’s San Juan Mtns, which I’ve mentioned earlier, near Ridgway. No internet, though, so will post while I’m in town, I download the HBB and take it home to read later when I can.
Everything around here is dead in the water, all the way from Montrose to Telluride, nothing selling and prices seem stagnant, though some are dropping. I have a beautiful 2 story log house with 2 stories of floor to ceiling windows (hard on birds, had to put stickers on them) for $900/month, two years ago this would’ve gone for easily 2x that, if not more. Drop dead views and in a very expensive area, only 6 houses in the subdivision, next to a wildlife refuge.
As for Moab, the income they stated as being average is way too high because of the 26% of the poeple there who live under the radar, off the tax books, and real estate sales people tell me nothing is selling, zip, zero. That particular realtor really put her neck out saying they couldn’t give away 100k houses, she’s a keeper, has always been one of the more honest ones there.
I went to a talk last night in the beautiful town of Ouray, it was about a little Scots-Irish woman named Marie Scott, a local legend, who at one time owned over 100,000 acres stretching from Ridgway to Utah, all self-made, and much of it in the GD from buying land for back taxes. Be prepared, opportunities are coming.
wow, house sounds great, Lost In Utah!
It’s awesome, esp. after the squat in Utah!
Welcome back Lost.
It sounds beautiful! Keep posting.
Thanks Lad, and thanks Kim. Hard to post w/o the net, miss you guys!
BTW, I contacted the realtor mentioned in the Moab article and turned her on to the blog, hopefully she’ll start posting on Moab.
Sounds alot like St George. I am thinking that we may soon see prices under 100$ a square foot. That hasnt been here since 2005, so the drop is on and will get rolling fast. Just wish my rent would go below $1.50 a square foot per month.
I told some people at work the housing slump was over and is bottoming out they all objected some quite Persistently.
Interesting these same people told me 2.5 years ago when i first arrived in Phoenix that the prices were just leveling off no crash.
So now they all know it will crash and never get better for 10 years…
I don’t know when the bust will be over I was just gauging a reaction. however usually when Joe6pak gets it its already over.
Not buying here in Phoenix this place sucks RE wise for years to come I will agree with that. No growth control. OK to live here but a house probably never should have rocketed up like they did. It was californicated.
Now should I move back to Ventura County CA a jewel on the CA coast and see what is happening with foreclosures?
Or portland OR and see why its different there?
Just thinking out loud all still up in the air.
Perhaps the most important thing you should be looking for when the time comes to buy a house (whoa nellie~ give it a few years) is the solvency of your potential new neighbors. (you can easily figure out the skinny on 20 houses in the immediate area)
“I don’t know when the bust will be over I was just gauging a reaction. however usually when Joe6pak gets it its already over.”
I basically agree, but IMO, to be anywhere close to a bottom, J6P (and some fraction of the REIC for that matter) must not only grasp that trouble is here and isn’t nearly over, but also grasp that housing isn’t “coming back” anytime soon (i.e. no “V” or “U” bottom).
Rent Baby. I sold my home in SoCal in 2005, then moved to SoUtah. In the 4 months it took to get established I was priced out of a home. But could rent for 50% less then buying. It was a no brainer, Rent till the craze ended. Well the craze is over but the drop has only started. Will I buy NO
Show me the Monet (cue: Peter Lorre voiceover)
“KB Home is moving forward with construction and sales of affordable townhomes at Inspirada, a master-planned community in west Henderson. The Monet collection, as it’s being called, are priced from the $140,000s for 1,087 square feet.”
“Not buying here in Phoenix this place sucks RE wise for years to come I will agree with that. No growth control. OK to live here but a house probably never should have rocketed up like they did. It was californicated.
Now should I move back to Ventura County CA a jewel on the CA coast and see what is happening with foreclosures? ”
ok, so cactus, a question; if you hate the place enough to use an insulting description (californicated), why would you even consider moving back to Ventura County, CALIFORNIA, the source of yer derisive comment?!?
haha never said I hate the place did I ? “californicated” is a very funny word and I like funny words. And I might move back because I can.
Utarr, eh? that,s Nigel “Koi Pond” Swaby of Casey Serin fame comes from!
So the mountain and resort communities that are relatively far from Denver are seeing the messy after-effects of the bursting bubble. What about the Denver area and its southern suburbs, such as Highlands Ranch? Any “boots-on-the-ground” folks in that area care to comment?
Not sure aboout Douglas County, but in Larimer County the Realtors are trumpeting that the worst is over. This of course does not match my “boots on the ground”. Only a couple of houses have sold in my neighbor hood this summer (but also, very few were for sale). Quality employment is in the dumpster. Only HP is hiring, and not a whole lot.
Fear & Foreclosure in Las Vegas, A Savage Journey to the Loss of The American Dream…
“Short sales have become increasingly prevalent in Las Vegas, where home values have dropped by more than 20 percent in the past year and some 5,000 homes are headed for foreclosure.”
“While more than half of all home sales in Las Vegas have been reported as foreclosures or short sales, the figure is actually closer to 80 percent in the past few weeks, a home loan consultant said.”
“‘People who are waiting for it to hit the bottom are rolling the dice,’ broker John Trtanj said as he lounged at his open house for a $600,000 two-bedroom condo in Singletree’”…
And it is arrogant statements like these that inflame and alienate potential buyers. I’ll roll the dice Johnny boy while you keep running your mouth.
Forget about rolling, I am still crafting the dice..will take me at least a year to do that and then may be a year to roll and decide - buy or not
Heck, you can use any die (singular of dice) to make your decision today. Roll the die. If it lands and remains on any of its corners, then now is a great time to buy a house!
It’s interesting all this talk about housing going down, etc…for the most part is true I guess….but the home prices in So Cal are still out of reach for most people. I frankly couldn’t care less what happens in that sh7thole of an area called San Bernandino county. I’d rather walk on hot coals before living out there.
What good does all this reduction everywhere else do when I live in the LA area….where people are still too stupid to not pay $450K for a 2bdrm townhome?
Home prices in even places like hellhole Northridge are still well over $500-600K for anything above 1600sqft. Why am I sticking around here again?