‘A Lot Of Dropped Prices’ For Long Beach Condos
Some housing bubble updates on California. “Petaluma is making national news again, this time, for its high housing prices. According to a New York Times article, the Santa Rosa-Petaluma area is the third least affordable region nationwide. ‘I think that we’re much more affordable than people give us credit for,’ said (broker) Marsha Harris.”
“The problem in the past, she said, has been the low inventory of available homes, which drove up prices. But while there are often only about 125 or so homes for sale in Petaluma, she said, there are now about 185 homes on the market.”
The Union Tribune. “Sign spinners won’t be allowed on city streets any time soon, despite pleas from condo converters who say they are a valuable advertising tool. Members of the task force argued that sign spinners and other types of temporary signs were especially needed now because home sales were flattening.”
From Long Beach. “A residential open house for downtown is an interesting feat considering only one project is complete and the event comes amid rising uncertainty about the housing market. One of the developments is visionary and calls for construction of 1,300 units in towers 55 and 45 stories tall. Another project is a rising mass of iron and concrete.”
“Are these developers just bullish on downtown Long Beach real estate, or are they trying to make sales before a possible falloff in the residential market?”
“Some real estate agents agree the number of condos being built downtown may be hampering sales of existing units, but the sponsors of the open house say the area is well-positioned to continue its residential boom. ‘Whether you are talking about downtown Long Beach or Southern California, I think there is a housing shortage,’ said Kraig Kojian, president of the Downtown Long Beach Associates.”
“Kojian acknowledged developers may have the ulterior motive of trying to beat a residential sales downturn that is now making itself apparent and to stay ahead of rising construction costs.”
“Some real estate agents are concerned about the number of condos coming onto downtown’s market in the next few years. The DLBA open house is showcasing 2,300 units, and another 3,000 or more units in downtown are expected to come on the market in that time period.”
“An anticipated glut may be combining with a slowdown in the residential market to quash interest in existing condos, said (realtor) Richard Daskam. ‘We are seeing a lot of resale condos on the market right now,’ said Daskam, adding that listings are beginning to sit for longer periods with ‘a lot of dropped prices.’”
“There are 275 condos listed for sale in the downtown area more than half of the 557 condos listed throughout the city. That’s roughly twice as many as last year at this time, Daskam said. Sellers of million-dollar-plus condos are experiencing particularly sluggish sales, Daskam said.”
“For example, a top-floor unit in Harbor Place Tower on Seaside Way in downtown has been on the market for more than 230 days with a listing price of $1.9 million, down from its $2.3 million original listing.”
“In fact, there are more than 20 condos listed in downtown for between $1 million and $2 million, and half of those have been on the market 90 days or more, according to the MLS.”
Sorry,repost..Trying to catch the Doc..
Sorry..OT
Clouseau (DOC);…I went back and read your post several times…First time through I just grabbed what I wanted (Lawyer) and responded with my rant…I want to apoligize…I could have presented my position in a much better way…Particularly since yours was so thorough…
scdave ….As I said in the prior post , I would hire you any day of the week scdave . As you know , I don’t think alot of realtors ,but you are one that I respect .
Thanks Wizard…
No prob.
Anybody even loosely associated w/ RE gets a lot of flack on this board, much of it non-deserved. Like any profession, there are good guys, and bad guys. The bad guys ruin it for everybody, no matter how few there are. Especially when we’re talking people’s (perceived) necessities like housing. (housing is a necessity, owning is not, but most don’t realize that).
I know it gets old real fast…
I’ve seen some pretty senseless attacks and cheap shots vs. you, MrIncomeStream, VaInvestor, SoCalMtgGuy, NNVMtgBkr and a few others. The word “troll” is used far too often IMO… differing opinions does not necessarily mean troll. And guilt by association is not always applicable
Glad we made up!
clouseau
Dropping the prices are the only way to stave off massive unemployment in Los Angeles and Orange County.
The sooner this radical idea is disseminated, the better.
The mentality must change, and fast.
Or-
Mr. Bernanke can keep raising the rate- just like I said he would- until everyone understands.
The rate will continue to rise all through the summer, with one pause, for evaluation, in the late fall.
THAT IS…
Unless people in Southern California start USING THEIR BRAINS to realize that DROPPING HOME PRICES will SAVE THE SOCAL ECONOMY.
That is all…now you may all continue talking about how he can’t keep raising the rate, and how it’s impossible for people to drop prices.
Both ideas are incorrect.
Not even dropping home prices can save the economy. They will destroy the economy with no ATMs to fund spending.
This is fun. Freeways are already lightening up, contractors are getting easier to find. I’m enjoying it!
I am a small player (very very) in a commercial project and last year we were begging guys to get this thing finished. Now these clowns are begging for work. In fact we are doing the TI’s for a 2,500 sq space and I have two guys fighting for the work. I give one the price and the other one underbids and they have done it to each other twice. HAHAHAHA. Finally things are turning.
The trouble is contractors have grown accustomed to their new lifestyles and have the bills to prove it. There are going to be some hard adjustments coming.
I respectfully disagree.
Rapidly falling home prices will create volume, thereby keeping people employed in Southern California.
Right now, nothing is happening.
That’s the worst thing of all.
No one’s even lowballing, since the asking prices are still so detached from reality.
A hard crash benefits SoCal better than a long one.
Half the people in this town are in Real Estate.
If the prices drop far enough, things will start selling again- at lowball offer acceptance FROM low asking prices- and people will still have jobs.
Right now…with no activity…all the major players are getting ready for mass firings.
It doesn’t have to happen.
If 50% of us start TELLING the other 50% of us to start drastically lowering home prices…people won’t get fired.
Strange, but true.
All that’s required is a fundamental change in public perception.
As for HELOC’s…the banks aren’t going to take the homes unless they have to. They’d rather receive a payment, than put homes back on the market.
Thus…the only way out is a mentality change.
Once that public perception is changed, the Fed will pause, look at the data, and hold the rate stable for a while.
We’ll get there.
There will also be an exodus if housing prices do not drop. We have started to make concrete plans to bail for TX if prices do not fall in a meaningful way by the time our oldest is ready for school (two years from August). I will be getting my professional license in TX in September, and will start looking for jobs there early next year if we don’t see some movement.
We’re not alone. The elementary schools in the community right next to ours are closing left and right, because first-time homebuyers cannot afford the area.
Huntington Beach lost 2 elementary schools this year.
The property was sold to developers for more homes.
We have all ready started to see this in Northern Nevada. One of the figures they look at when guessing how many kids will be in school the following year is new housing. It seems that this year those houses were not owned by famlies. It caused budget shortfalls. LV had the same problem.
Joe: Austin. Not Dallas.
Enrollment in my (Conejo Unified) blue ribbon school district has been falling for the past two years and we’re starting to lose teachers. Two of the 17 students in my daughter’s Kindergarten class moved away midyear, both to states with cheaper housing market. Of course LA Unified is still building schools, so people from other states can feel assure that if they move to LA and buy a $500K bungalow they can put their kid in LAUSD, biggest supplier of future taco bell employees where 60% of students learn to read.
That is exactly my plan as well. I have multiple exit points that correspond to shifts in my son’s schools. If prices do not come down dramatically - and at this point it is looking more like 50% or better - then it is so long Cali, howdy Texas for me. The property taxes are higher in TX and even though that is offset by no state income tax income is not as persistent as the property tax so that must be factored into retirement costs down the road.
You are correct. Only sales create value to sellers and buyers. If the seller holds out and no sale, then NO ONE is happy. We all know that the prices will adjust by about 40% or so. The only question is, do prices stay flat and allow inflation to erode the real value over a decade, or do we see a quick price adjustment, and people can get on with their lives.
I’m sure hopping that seller sentiment changes very soon.
The freeways are lightening up because gas is nearing $4 friggin’ dollars a gallon here thanks to all of the taxes and environmental restrictions!
I can afford it, but good lord those poor bastards that bought homes in Palmdale and commute in every day must be hurting!
jj i spent all day trying to convince my asst mgr not to buy a home in lake los angeles.he is buying a 1400 sq ft on i acre for 270k.a 5/1 adj i/o for 80% at 7.35% and a 20% down at 11.25% no money down loan.his fico is 520 and has 3k in the bank.he works in 1000 oaks and the commute on a good day is 2 hrs each way.it seems he needs more room as he is renting a 1 bedroom in north hollywood for 750$ a month with his babies mama and 3 kids.she wants out of the relationship if he doesnt buy a home for the family so he is stuck.god i tried to help talk him out of it but he wants to be a homeowner.i cant believe the bank will lend money like that and besides his wife just got laid off 2 weeks ago and her new job doesnt start for another 2 weeks.
Wait a minute. An 80% loan at 7.35%, assuming 30-yr amortization = $1,488/mo. P&I. A 20% second at 11.25%, assuming 30-yr. amortization = $524/mo. P&I. So this fellow is going from a $750 rental to an unsustainable $2,000+ payment before taxes and insurance? Didn’t anyone counsel him to rent a bigger place than what he has now? If his rent doubled, typically the quality ans size of the rental would more than double and he would be paying only about 2/3 of the proposed house payment, taxes and insurance, plus gas for the extra commute.
Should have added, if you make both loans interest only, you still do not have a rational argument for buying versus renting a larger place.
Interest only for both first and second mortgages, payment = $1,829 P&I.
In that case it would be cheaper to pay the child support after she leaves
yes chip i i tried but he has fire in his eyes because he just made up with her and he wont listen
Taxes and regs. play a role, to be sure. However, the price of crude is a much bigger factor. $70+/barrel is no joke, and crude oil price is that largest factor of what gas costs at the pump. Taxes and regulations have not changed that much. If you’re questioning why prices are so high, look to the fact that oil has more than doubled in price in recent years.
Iraq is producing less oil than they were before the war, Venezuela and Nigeria are experiencing varying degrees of political turmoil, and China is emerging as a major consumer of oil. It’s easy to see where things are heading.
The United States has the lowest gasoline taxes of any first world nation. And as much as no one likes taxes, the gas taxes in the U.S. do make a certain amount of sense. Gas taxes go towards roads construction/maintenance. Europe’s gas taxes are much higher but they fund other things like social programs. Cutting gas taxes here would make the price at the pump go down but that could be offset by worse road conditions which would lead to higher traffic.
I read a stat the other day that the average family spends something like 3-4% of their income on gas.
Welcome to the true cost of gas boys and girls. Guess what? It’s going to get a lot worse. By this time next year, light sweet crude will be well north of $100/Barrel.
Oil will be our undoing in the end. The housing bubble is nothing compared to deflating oil production bubble.
2 words: Peak Oil
Bull$hite…
Gas prices are up due to a little misadventure in the Iraqi Sandbox.
Oh and so management at Exxon and Halliburton can reap some serious profits.
Pay attention…cause everytime W, Condi or Donny mentions Iran they shoot up again.
I agree with Auction Heaven. Dropping prices will not do squat for those who are already burned. But it will stop MORE PEOPLE from opting in to the insanity and jeopardizing themselves.
If Americans buyers are so dense that they’re going to keep the high priced housing thing going, then those rates are just going to have to keep going up til they yell uncle.
Auction:
I had a physically large friend that eats a lot.
There is a great little Italian place (Pizza D Oro) at Indianapolis and Newland. They have all you can eat lasagna on Sunday nights.
We went there and ate. He finished his first plate of lasagna and asked for another. The waiter obliged. A few minutes later the next plate came out and it was about 25% of the size of the original piece of lasagna.
My friend was a bit incensed.
He pulled the waiter aside and said “Look we can do this the easy way or the hard way it is your choice.”
Your argument to the RE Industrial Complex could be summed up with “We can do this the easy way or the hard way, it is your chocie.”
Thanks Sunset.
Everyone keeps telling me I’m nuts, and I know I’m not.
Let’s take the lady that is trying to sell a condo for $760,000.
She probably bought it for $280,000 back in 1999.
If she cuts her price to $400,000, my wife and I look at it.
We offer $325,000. She counters with $350,000.
Sold.
She still makes $70,000 dollars- just breaking even- and avoids forclosure and bankruptcy.
The real estate agent gets paid.
The mortgage company gets paid.
Something so simple seems to elude so many, here in Orange County.
People still can’t imagine that breaking even is enough.
Instead, they whine and whine- while no one is buying anything.
Dumb, dumb, dumb.
Think I need some lasagna.
I agree, ‘07, but if the woman in your hypothetical did any cash-out refinancing along the way, she can’t come down to your number without bringing cash to the table. I agree that an “attitude adjustment” on the part of sellers is required to save jobs, but … let’s face it … many, perhaps a majority, simply can’t. They’ve already spent their equity.
If that’s the case, and she HELOC’d herself…I guess we’ll be talking to the bank at some point.
But I’m thinking it’s possible that everyone didn’t HELOC themselves to the max.
Some people do cash-outs but only take a few thousand.
My bet is that this pissy woman is simply greedy.
As well as getting ‘hosed’.
Feepness is right, dropping home prices leads to foreclosures due to HELOCs dropping off a cliff. When people don’t have cash the don’t go out to eat, etc. which means people in non-RE business start to lose jobs then they have foreclosures then it gets really ugly.
I’m thinking we’re going to see two foreclosure spikes. The first wave will be RE agents and mortgage brokers who drank the NAR Koolaid followed by mid to low income service sector people who no longer have the RE agents and mortgage brokers to wait on or sell to. They lose their jobs and have to sell but the RE/MB foreclosure sales will have already killed comps.
I think the second wave will be far bigger and it’s going to take out banks like WashMut etc. I don’t think GM is going to survive in this type of environment, not to mention gas prices, and you can bet a lot of GM employees have mortgages.
We’ll see in 18 months!
Auction is right the pain would be shorter with a sudden crash in prices. I just don’t think it will be that “easy”. Instead it will be the “soft” landing. Years and years of “soft”. How fun!
We both agree about that.
Extended ‘Soft Landing’ over a period of years = Using Brillo Pads for Toilet Paper after eating Bad Fish.
I don’t know Auction it might not be a slow painful ‘Soft Landing”. Your right that people who have equity can still come out with a profit ,and move the market . It doesn’t help when the NAR predicts that “real estate is going to shoot upward next year “,causing sellers to think this is just a little slowdown .
May want to add airlines to the Oh SHIT list. As I recall last oil spike, they were struggling when oil was, what $55/bbl. Delta/United/AA, all were looking like they were gonna auger in. Now, $70-75. Here’s an idea of their risk, from United’s Q1 release:
The company expects mainline fuel price to average $2.15 per gallon for the second quarter and $2.06 per gallon for the full year (including taxes). The company currently has no fuel hedges in place for the remainder of 2006.
Most of the fuel hedges, even for the more profitable airlines like Southwestern, will be unwinding in the next year or two. Probably not a good time to own airline stock.
you wouldn’t know it from the fare prices. $900 EWR-IAH last week? please.
DROPPING HOME PRICES will SAVE THE SOCAL ECONOMY.
That’s like saying the trees waving make the wind blow. You’re confusing cause and effect. The market dictates home prices, but the worsening contraction of the credit bubble — which threatens to implose the gargantuan debt pyamid that California’s “economic prosperity” has been floating on — will choke off both the productive, and, especially, the speculative “fast money” economy in California. Any natural or social disasters will only accelerate the slide.
Ben, you’ve got to stop this lying. I talked to Suzanne and her research shows nothing about dropping prices. Not here, not anywhare. Who should I believe? She’s a professional and she researched this or you and all these alarmist ideas that are so strange no one saw them coming at all never mind this fast. Now just stop this nonsense right now and go back to wondering why prices are still rising and real estate never goes down.
LOL.
Here’s a funny, and true anecdote from this weekend.
My wife and I decided to do a bit of sleuthing on some properties near where we live, so we got on our bicycles and headed out.
As we wenting cycling down Pacific Coast Highway in Huntington Beach, we switched to riding on the sidewalk so we wouldn’t get sideswiped by drunk folks coming from the bars on Main Street.
More than a dozen times we almost ran into ‘For Sale’ sign after ‘For Sale’ signs on the curbs, and sides of the sidewalks.
It was truly ‘bubblicious’.
But here’s the funny part.
We came upon a condo display with xeroxed copies inside. Black and white. Genius. Bad pics, too.
While looking at the still way overpriced ad, with my wife next to me, both of us holding our bikes, I neglected to notice a young woman standing off to the side of us, talking with an older lady.
“Holy muther of Jesus!” I cried, staring at the ad.
“What is it honey?” asked my wife.
“This is one of the places that was going for $900,000 plus back in August!”
“Wow.”
“Whoever owns this puppy must be taking some really hard pipe straight up the freakin’ poop shoot, I would say!”
My wife signalled for me to stop talking so loudly.
I stopped, noticing the younger woman was walking toward me.
“Did you have a question about the property?” she asked.
It was obvious she was pissed, and had heard me.
“Actually, I do have a question. Is this a 2 bath unit, or just one?’
“2″, she replied curtly.
“Sure is beautiful”, I said, trying to make peace.
She stared at me, knowing I wasn’t about to ask her to see it, and well aware that I was well aware of the pain she was enduring.
“That’s why I bought it”, she said.
Flipping her long blond hair pissily, she turned and walked away.
My wife hit me in the ribs with an elbow.
“I think you insulted her. She heard you.”
Just then, the older lady walked up to us.
“He’s right you know, she really is getting hosed on it.”
And with that, the older lady turned and walked away.
I couldn’t stop laughing about that the rest of the day. Almost ran into more ‘For Sale’ signs on the way home.
The ocean looked great, the beach looked great, the new TOOL album is Number One- as well as incredible-
…and life appears to be getting back to sanity around here.
The prices need to fall harder, and faster, to avoid an economic meltdown in Southern California…but I guess I should have hope.
What was the original asking price?
If I recall correctly, she had it up to $920,000 back in August.
Now she’s asking $760,000.
We’re almost there.
When she gets to $400,000, my wife and I will actually ask to ’see it’.
Oh, the humanity!
We came upon a condo display with xeroxed copies inside. Black and white. Genius. Bad pics, too.
Last Sunday I went to several open houses in Colorado Springs’ prestigious Old North Side. The prices ranged from $499 to $939K, which is a lot for this area. Most of them have been sitting on the market for months, although I’m starting to see the first meaningful (5-8% reductions). The thing that struck me was that ALL of the fliers were black and white, and most of them looked decidely amateurish, poorly designed and laid out.
It’s almost like the realtors don’t really expect the houses to move until the sellers make deep price reductions, so they’re just going through the motions and trying not to bleed too much money through wasted marketing expenses.
Either that, or they’re still too cocky.
By the way, I just noticed that the overpriced condo I was looking at is now ‘inactive’.
Maybe she pulled it off the market?
Or maybe she heard the old lady agree with me that she’s “getting hosed”?
That still makes me laugh.
A little old lady saying “getting hosed”!
If you REALLY want to save money on selling costs, you can do it FSBO with a zerox stuck to the telephone pole like that 850K condo in Brooklyn!
Speaking of drunks coming from Main Street.
I was driving south on PCH at Bolsa Chica.
A Northbound crazed Toyota Corrolla swerves, loses control, jumps the median and is in my lane, I swerve and it misses me.
The Corrolla hits a Suburban and disintegrates. The debris field was 50 feet.
I go back and help the injured.
2 back seat passengers thrown out of the car (no seatbelts and drunk)
Driver is in shock and snoring loudly, which is a pretty bad sign.
Passenger seat dude is combative. They are all drunk.
It was crazy but just another day in HB.
Holy muther of Jesus!
Glad you are okay!
I like the part where you go back to help the injured. Same thing I would have done. Nice job.
Dang.
All that action with a 10 day old newborn boy.
Congratulations!
(Hands Sunset a cigar…)
Sunset’s a Daddy! How cool!
(Can’t wait ’til I can do that)
Awesome!
Thanks, and being off from work I have actually been able to surf this week.
It has been pretty fun in between diaper changings and feedings.
out of curiosity, why would snoring be a bad sign? I’ve been first-on-scene at a couple of horrific wrecks but I never encountered snoring.
He was in bad shape shock wise.
There were a Fireman, Nurse and myself (expired EMT) on site.
The guy was sweating profusely, in a decorticate posture and snoring.
Overall, baaaaad news for him.
Of course “shortage” only applies when there is demand for 2, 3, 4, 5, 6 + houses per person. Also know as “investing”. What people only want ONE house, then what?
Update on the 2 condo towers in Irvine, off Jamboree and the 405, NO OCEAN VIEWS (dont be fooled by what agents might claim).
The towers have sold out from builder and they (Bosa) are gone. These are now resales (flips).
As of 5/10/06 at 5pm (pacific):
Actives: 78- (33% of entire project) With high listing at 2.75M and the low at 725K. There are 11 units listed over 2M and most of total active units are listed beween 900K-1.5M.
These “original owners paid beween 550K-1.5M from the builder.
Pending/Backup: 2- at 775K and 875K respectively. Both contracted in April, with an average 88 days on market between the two.
Sold: 6- with high sale at 1.125M (keep in mind, this was the first resale in the whole project). There is another at 1M and the rest between 759K and 920K.
Cancelled/Withdrawn/Expired: 16- Some of these may be back on the market as part of the Active count.
This level of inventory is very high, 13% more than builder expectations. Factor in that many of the units in these towers were purchased by local RE Agents and Mortgage people, things appear to be lining up to get real ugly, real soon here. Last I checked, a couple weeks ago, there were 70 units for sale. I say good luck to all you gamblers who may have bought one of these
(contracted 2 years ago, with developer). With so much inventory, $1000 in hoa dues per month, $800-1200 per month in taxes, the actual mortage (which will be adjusting real soon), utilities, food, entertainment, and that lease on the Mercedes or BMW, and an you are paying 5-10K per month to live in a gloryfied apartment that sides a busy freeway and has no ocean view. There is a technical term we use in the appraisal profession to describe people in such circumstances, SUCKERS!
You sound like music from heaven. GBY.
So given that these towers have been SUCH a raging success, does anybody have a current tally of how many other high rise condo buildings are under construction in the OC? Can anyone spell W - H - I - T - E E - L - E - P - H - A - N - T ?
Thanks for the detailed summary, OC Resident. Eye-opening.
OC Resident - I think that’s very close to the John Wayne Airport. Do you get an upclose view of the jets landing?
I think that would have been very cool when I was five…not so much now.
“Sign spinners won’t be allowed on city streets any time soon, despite pleas from condo converters who say they are a valuable advertising tool. Members of the task force argued that sign spinners and other types of temporary signs were especially needed now because home sales were flattening.”
Of course! If a development doesn’t have enough class to have Sign Spinners, why would I buy?
“Ron Pennock, chairman of the East County Construction Council and head of the task force, said converters have put “their neck on the line” and are suffering because the conversions aren’t selling as quickly as they used to. He argued the ordinance could be interpreted to allow for sign spinners because there is no specific language banning them.”
Here he comes to save the day! The Mighty Sign-Spinner is on his way!
They are not selling as quickly as they used to? LMAO! They are not selling at all! East County San Diego (El Cajon anyway) is the armpit of the county. Some of these conversions here in ‘Diego are pathetic. I’ll be taking a picture for the HBB of a condo-conversion at 70th St. and El Cajon Blvd (great place if you like your crack and hookers in close proximity btw) going for the $300K’s. BTW, this was the same complex in ‘02 that had a triple homicide. It’s been vacant for months. Not a single sold.
One in my neighborhood has that 70s faux-rock facade still on it! It doesn’t look any different than when it was apartments!!!??
El Cajon is mostly apartments and trailer trash, redneck and biker bars.
So what’s considered good in San Diego? In case I wind up moving there, which is possible.
Encinitas, Del Mar, La Jolla, Point Loma, Coronado if you have the $$ and you like the beach.
I was in Point Loma when I was in San Diego. Loved it. Also liked Fallbrook and Valley Center way out of town. Valley Center was fabulous. I was offered a house there on several acres of plum and apricot trees. To this day, I wish I’d bought it.
Valley Center is country living (Except for the casions). I grew up there, but its not really country any more. Oh sure you can have a couple of acres and fruit trees but the traffic is really bad. Plus it is now ringed with Casinos. It would be one thing if the next town over wasn’t Escondido, but you do have to go through it to get to anywhere. Don’t even get me started on Esco, that place is really going to take a hit. At the height of the boom there were 900k houses there.
If you only have $+1/2$, there are a number of new developments in Carmel Valley, with rapid access to the beach (~5-10 miles) along the new 56 highway. I’ve yet to hear of these as “Del Mar Adjacent”, but I would imagine that will be soon coming.
Just saw an ad in the latest coldwell banker magazine for a house in Carlsbad, about 1400 sq. ft. on a full acre; value range of 475-530K,
which means 450 or less. This would have been unheard of 2 years ago, and prices have much further to fall as more inventory comes available every day (22133 on noah gamers site today, up from 21646 on May 1st).
amoney,
I tried to look that up the other day when you posted it. Can’t find it. Is it an exclusive or do you have MLS#?
We drove through Carlsbad (92008) today to see how things are going. Must say it’s not as good as I’d like (fair amount of inventory, but it’s not like every 3rd house is for sale). Hope to see inventory increase more rapidly.
Anywhere NOT in El Cajon, Spring Valley, National City, San Ysidro South-Eastern Downtown, Midway (east Pt. Loma), Normal Heights, North Park, Rolando, Skyline and a few others. Of course, each of these areas have nice parts. However, you are always a few blocks from the ‘hood.
don’t forget Carlsbad
If you are under 30 and want to live near the beach and have fun with cheap rent, move to Pacific Beach. Northern Pacific Beach and the Crowne Point area are awesome for young 20-35ish people.
Long Beach is my home town. These condo towers in downtown are in a gentrified slum. They are vastly over priced and the new inventory will be cannon fodder.
I live in Harbor Place Tower and you are correct. Trying to get to the 405/22 on 7th Street is a nightmare. How classy can a place be with a Roscoe’s 2 blocks away?
I work in downtown LB.
As long as you don’t go above 3rd street it is OK during reasonable hours.
4th and above is pretty slummy.
Another true story from Downtown San Diego. My friend bought a street level condo east of Petco park across from the “Volunteers of America” building. He now knows that building as “The Drunk Tank”. He actually had a homeless lady defecate on the sidewalk in front of his vastly overpriced condo in full view of their living room. Luckily he makes a ton of money so he can ride it out but most aren’t so lucky.
I walked by a condo tower last night and could see what looked like a sales meeting in the first floor lobby. The numb looks on their faces as they listened to the boss spoke volumes.
San Diego’s “Petco Park” is also within several blocks of Father Joe Carroll’s St. Vincent De Paul Village, which provides shelter and food for the indigent. Since it is a major operation, high numbers of transients inhabit the nearby streets at all hours.
Personally, I think the St. Vincent de Paul’s Village is a worthwhile cause, and provides vital support to an otherwise marginalized population. Would I buy an expensive residence ($1/2 - 1 million) in the same neighborhood? I may be liberal, but I’m not crazy.
It was, however, insane for the city of San Diego to hand over expensive downtown property for pennies on the dollar to John Moore (owner San Diego Padres, JMI Real Estate), so that he could build these condomonstrosities.
I actually believing in volunteer organizations to help the less fortunate is not a LIBERAL position. Nope, that’s a conservative position. The Liberal position is that all the property in San Diego should be seized and their owners hung. A board of self-righteous talentless hacks would then oversee the new magic liberal kingdom in which all are slaves to Liberalism.
Ted, awesome, you made my day.
Straw man.
Ted says: “….The Liberal position is that all the property in San Diego should be seized and their owners hung….”
Hmm! I believe that you’re soaking up too much of Rush’s Kool-Aid. Since many ‘Liberals’ own homes, I suppose that they would wish to hang themselves, using what passes for your ‘logic’.
You’re of course obliquely referring to the recent Supreme Court ruling on ‘eminent domain’, which many ‘Liberals’ find as egregious as (apparently) do you.
I think his point was that non-government charities do a better job of helping the poor than do bureaucracy weilding politicians. And he’s right that liberals(in the Socialist sense) aren’t big fans of private property ownership.
Well said Ted !
I’m super-liberal: I’d round ‘em up and put ‘em all on a bus to the middle of the Mojave Desert where they could drink and defecate to their heart’s content without bothering anybody else. And I’d tattoo the word “BUM” on each of their foreheads so if they wandered back we could snag ‘em. Or is that super-conservative? I forget.
Yeah, my point was ratherly rudely made by myself. But it is that believing in voluteer charities to help the poor is NOT a Liberal position. Liberals want the government to “solve” problems, usually by seizing property and punishing the “evil” rich.
As opposed to the current crop of conservatives who want to skip the whole problem solving thing, and just sieze the wealth (and power).
“Volunteer charities” are a great solution for penny-pinching conservatives who don’t want to pay taxes, even though they themselves prospered with the help of other taxpayers.
Selfish greed, plain and simple.
The term “conservative” is trashed. just like the liberals are all calling themselves progressives. i’m hearing it more and more on talk radio: right-wing types are calling themselves “libertarian”
Shorter Ted:
White is Black; Up is Down; Bush is Great
I work very close to the St. Vincent de Paul facility. I understand that they recruit homeless from other towns/cities to bring themn to SD. In return, St. Vincent de Paul recieves funding fromt eh state or feds depending on the size of their client base. So, perhaps St. Vincent de Paul is actually a money making machine? Tell me I am wrong!
Regardless, I am not a conservative nor do I feel like I am a liberal… given the definitions that we’ve come to know those as… but I feel that parents/siblings/children of those bums should be contacted and requested that they take their parent/sibling/child back into their home… so as to remove them from St. Vincent de Paul, SD, and the streets. The city, or perhaps St. Vincent de Paul, shold then pay for a non-refundable oneway ticket out to that destination.
San Francisco does this and I understand it’s quite succesful.
If that doesn’t work… I’d really have little problem with shipping them to an island and doing food drops!
speaking of high rise condo towers, orange county’s only project so far, the marquee park place on michelson in irvine, now has 78 units listed for sale in the MLS at prices ranging from $735,000 and up(there are only about 230 units in the entire development).
and don’t forget the $1,100 monthly association fee and the fact that you can’t have a pet.
Do you realize that these owners pay $253,000.00 per month to the HOA. A grand total of $3,036,000 per year. WHAT IS THAT ABOUT! When I lived in Mission Viejo I lived in a gated community with beautiful landscaping, a multi-million dollar recreation center, 2 pools, spa, weight room, tennis courts huge play area for the kids. I thought I was paying too much with a HOA charging $225.00 per month. What are they getting for their money?
“Do you realize that these owners pay $253,000.00 per month to the HOA. A grand total of $3,036,000 per year. ”
You can’t buy a newer home these days without having to make payments to an HOA. If I ever buy a house, it won’t have any HOA. People who pay those or condo fees aren’t owners. Its like paying rent and mortgage.
Rent is fine enough with me. You can keep the mortgage.
LOL, my HOA is 200 and change a year here in Houston. That is about 20 a month.
Wonder what the HOA would be in in some of the master-panned communities in Rancho San Margarita. Saw 4 homes for sale in one 2-block stretch of homes-one of the homes asking a million dollars.
Have seen those condos going up along Jamboree south and north of the 405 fwy. There are what looks like completed condo units in two tall towers easily seen as you enter the 405 going south from Jamboree. The building of Condo units immediately adjacent to industrial parks may be the new thinking in urban planning: to build housing units within and among industrial parks instead of in separately zoned areas. The thinking is to reduce traffic congestion by having people live close to their workplaces. Charles Hugh Smith on his weblog had an article about this recently, and several cities such as San francisco are planning developments which integrate retail,commercial light industrial and residential complexes together.
Impac Mortage has numbers out today (IMH):
The mortgage operations acquired and originated $2.1 billion of
primarily Alt-A mortgages compared to $6.0 billion for the fourth
quarter of 2005 and $4.7 billion for the first quarter of 2005;
Outlook
“Given current trends, the Company remains cautiously optimistic that 2006 will continue to bring improved financial performance. We believe that our core strategy of maintaining a large portfolio of primarily high credit quality, adjustable rate residential and commercial mortgages, along with our strong liquidity position and centralized platform leave the Company well positioned to deliver long term value to our stockholders” commented Mr. Joseph R. Tomkinson, Chairman and CEO of Impac Mortgage Holdings, Inc.
Mr. Tomkinson further commented, “With respect to our mortgage business, we believe that based on economic forecasts, we will continue to be in a healthy acquisition and origination market. However, as competition has intensified, many of our competitors have relaxed their underwriting guidelines and created what we believe to be more layered risk in the market. Essentially, we are not comfortable investing in certain higher risk mortgage products, and as a result have revised our underwriting guidelines and adjusted pricing.” Mr. Tomkinson concluded, “Although total acquisitions and originations are down, we have successfully reduced expenses, improved profitability and continue to remain confident in our ability to navigate a more challenging environment and grow our business.”
downtown longbeaurl][url]read an article in LB businesss journal about the new pike rainbow pier/harbor/urban shopping center [/url] built over the old pike amusement park which was closed[/url][url][/url] in the late 70’s(along with the tatoe parlors and cheap curio shops). This lastest attempt by Long Beach to build up the oceanfront harbor south of Ocean blvd has become a fiscal fiasco. Checked it out april 29th sat and it was empty, no activity, very few shops/renants operating. Neihter Shoreline village nor the aquarium of the pacific doing well. There has also been built up in that area a huge amount of oceanfront condo units right between ocean blvd and the new rainbow pier development. And still more units being added on. Problem is, and this is not acknowledged by the various Long Beach articles, is that there simply is not the high-income /high-level jobs base in long beach to bring any sufficient discretionary spending to the dwtn oceanfront shops. Lets compare this to third street promenade in Santa Monica or sunset strip/Santa monica blvd in west hollywood which do have high-levels of income in that area to support thriving bustling outdoor shops and eateries. Not so Lonf beach, whose local inhabitants immediately surounding the dwtn are mainly lower-income. Plus Long Beach lacks high-income indusrtalized/commercial jobs sectors such as the entertainment sector in west LA or the high-tech modern industries found in the irvine/costa mesa/newport beach area of OC which is why the outdoor malls/shops of NB and laguna beach are always busy.
Another problem is getting to dwtn LB is problematic at best: the only freeway into dwtn, the 710, is a trucking-clogged nightmare and the lateral connecting 405/91 fwys are only a little less bad. The 605 /west 22/studebaker to pch into long beach from OC would be a better less trucked-choked entryway but you have to negotiate thru long residential stetches to get into dwtn. Thus, access into the LB dwtn harborwalk is somewhat difficult which explains why the dwtn cannot attract much traffic from neighboring cities.regions.counties . Plus the entry is only from basically two directions, north and east.
This is the problem, transporation access, and this applies to tourist access as well. As a matter of fact, the entre greater LA region has a problem with attracting tourists due to the attractions being spread out all over the LA Basin, and the haphazard/mishmash metro public transport grid, which is not too tourist -friendly. Can you imagine a foreign tourist going from LAX via green and blue line to dwtn LB and sharing a train cab with some compton crip/bloods or a tattooed from head-to -foot chicano gang-banger. ch pike development a bust
Another issue that is rarely mentioned is that Long Beach has the worst air quality in all of LA. Although people believe the air is clean because it is coastal, recent studies indicate that as many as 1 in 200 residents will die of cancer because of diesel exhaust spewed 24-hours/day due to the port complex and 710 freeway: http://www.nrdc.org/media/pressReleases/040909.asp
It might help if The LB planning overloards actually provided free parking. You cannot park anywhere in the downtown area without plunking down change, and those meters are everywhere. LB gets a ton of money off the port and has spend huge sums to built up the shoreline but they penny-pinch you to death fpr parking. It is bad enough to get into downtown and then have to be squeezed for parking. The new rainbow harbor walk and the rest of the shoreline attractions(Queen Mary, Aquarium,convention center, pine ave, shoreline village) are actually scenic( if you can overlook the port) and provide a good walking experience but again the problem is that This narrow scenic harborwalk area is surrounded by a 3-mile deep belt of nasty-rundown neighborhoods, the old innor ring of Slums which has been with LB forever. This has plaged the LB planners ever simce the 70’s when they begin to attempt to built up the downtown, startin with the ugly barren mall which has been recently replaced by a wal-mart anchor store, not a big inprovement. Pine ave has seen a succession of failed and close shops, The pedestrian mall has been a failure. Shoreline village has has a succession of BK>s and ownership changes. Disney backed out of a plan to buit a Disney-by -the sea. The queen mary is again in BK. The Problem is the Rifraf spilling out of the innor ring and scaring the visitors. I once took my bike along the bike path from the queensway jetty to the belmont pier, and all i saw were beragged teen hoodlums and assorted poor locals along that beach stretch. The beach path section just past the marina is a nest of homeless drug addicts. I wonder if the LB condo sellers and flippers include this in their brochures.
Well-You guys may be right-that house listed for $1.2 million dollars (Glendale, CA)that I had made an offer just fell out of escrow today.
don’t know why, but it will b e interesting how fast it is back in escrow.
Hey we are right every now and then. LOL.
If that one is snapped up, you might consider this one:
“Yesterday I took my wife to the Indianapolis home show tour. This year’s featured home was formerly the property of ex-Conseco CEO Steve Hilbert. It is a 50,000 square feet French Chateau with 18 baths, a gilded dining room ceiling, and a 4,000 sq. ft. master bedroom suite . You might remember his spectacular rise and fall as Conseco stock went from $50 to 12 cents much like Enron. He still owes 270 million in unpaid loans and was last seen allegedly squirreling away money somewhere down in the Caribbean. The property was alleged to have cost $60 million to build and also includes a full-court replica of the IU Hoosiers basketball court. The entire 40 acre, 50,000 square feet estate is now being offered at $20 million with NO takers. There is one developer however that wants to buy it (for much less) and actually demolish it. He thinks the land value exceeds the value of the mansion. “
What exactly is a sign spinner?
I see these signs on off ramps: “Mak (sic) 15,000/month as a real estate apprentice.” Is *that* the apprenticeship?
The signs I’ve seen say $20,000… I’ll pass you the number so you don’t get taken advantage of those $15K offers.
HELOCs paying for Escalades and Sloburbans? (kudos to Lingus)
Mom wants an Escalade
Most mothers drive an SUV and, if they could drive anything, it would be a nicer SUV.
May 10, 2006: 12:14 PM EDT
NEW YORK (CNNMoney.com) - Perhaps not surprisingly, a new survey reveals that most mothers drive SUVs. And if they could drive any vehicle at all? They’d want a nicer SUV.
In a survey conducted by NADAguides.com, an automotive information site loosely affiliated with the National Automobile Dealers Association, mothers and expectant mothers were asked what type of vehicle they currently drove, what vehicle they would most like to drive and what factors were most important to them in choosing a vehicle.
When asked what type of vehicle they currently drive, 54 percent said they drove an SUV. Twenty-two percent said they drove a four-door sedan. Only six percent of mothers said they drove a minivan.
http://money.cnn.com/2006/05/09/Autos/mom_wants_suv/index.htm
Pretty sad, isn’t it?
Had two friends buy **LARGE** SUVs in the past year, even as the price of oil is moving higher and higher. Tried to talk them out of it, but their “image” is too important. Seriously, they wouldn’t buy a minivan or other sensible car because they were worried about their image. Unbelievable…
Well, we know someone is lying. Only 6% of mothers drive minivans!!!
I actually had a mom complain to me this weekend that she wanted a nicer SUV. She drives an 1998 Explorer, but her sister just got an Esclalade.
We all want more, but when we rationalize our desires into “needs” then we are on that slippery slope that many people have decided to ride down with HELOCs and other “Sophisticated” loans.
Hmmm…I am getting a picture of the harpy in the Century 21 ad demanding an Escalade, because that is what Suzanne drives.
>the harpy in the Century 21 ad demanding an Escalade
“What? What?!!! C’mon, we can do this!”
Minivans may be one of THE most useful but underappreciated vehicles today. If you have a young and growing family, they can’t be beat.
Minivans may be one of THE most useful but underappreciated vehicles today. If you have a young and growing family, they can’t be beat.
_________________
That’s soooo true! We have a Honda Odyssey, and cannot stop commenting on how much we love it!
“Sign spinners left twisting
El Cajon council votes against twirling ads
By Liz Neely
UNION-TRIBUNE STAFF WRITER
May 10, 2006
EL CAJON – Sign spinners won’t be allowed on city streets any time soon, despite pleas from condo converters who say they are a valuable advertising tool. The El Cajon City Council voted 4-1 yesterday to leave its sign ordinance as is. It prohibits people from spinning and twirling giant arrows on street corners to direct drivers to real estate developments or other businesses.”
How tragic. If only the El Cajon City Council were more understanding, then those “human directionals” could keep their jobs, and help sell overpriced condo conversions to the sheeple who buy such domiciles.
YES!!! EUREKA!!!
Greater SD ziprealty inventory = 20,009. A lot of dropped prices for SD housing are on the way as well.
Didn’t we just pass the July 1995 high water mark (19,280) a week-or-so ago? Things are changing too fast for me to keep up anymore…
Ok, I don’t mean to be a Debbie Downer or anything, but you couldn’t PAY ME to live in Long Beach! I’ve read many articles on how vulnerable LB is to a possible terrorist attack. With all the talk of a nuclear weapon possibly falling into the wrong hands and the well known/very publicised fact that less than 5% of all shipping containers coming through LB are inspected–I’ll be damned if I’m gonna pay an arm and a leg to live there!
LB is such an easy target it’s not even funny. A dirty bomb doesn’t even have to reach the inspection point to cause massive casualties–it can be detonated just as it arrives into the port of LB and the fallout would reach 3000 square miles.
As if it isn’t hard enough to sleep at night in LB already with those massive mortgage payments! Now I’d face the risk of being blown off the face of the earth?? Like I said, NO THANKS!
I wonder if the LB city government is aware of the possibility of a 10-kiloton nuclear bomb going off from one of those containers somehow slipped under the noses of our ever vigilant port and federal security. The instant killing radius would be at least a mile, and a 90% probablity of death by blast and radiation within 4 miles, well within the path of the LB City Government offices. Can thwy actually go about their business knowing of this.
Anyone, including yours truly, who lives within the 4-mile kill zone must really have sleepless nights. And what about those LB Condo owners? They would be about 2-3 miles from the zero point of detonation, so would this affect what they can get for their overpriced units.
” real estate agents agree the number of condos being built downtown may be hampering sales of existing units, but the sponsors of the open house say the area is well-positioned to continue its residential boom. ‘Whether you are talking about downtown Long Beach or Southern California, I think there is a housing shortage,’ said Kraig Kojian, president of the Downtown Long Beach Associates.”
What is hampering sales is that the DLBA fails to include in their brochures the magificent views of the Long Beach port infrastructures and all those tankers and cargo ships wallowing in the Harbor. As for a condo/housing shortage, Mayor Villarigosa is pushing for massive buiding of affordable housing units(Condos, Lofts, apartments, ect) in or around Dwtn LA, at least 7,000 planned or in development. look for a big surge in construction of affordable units all over LA city, which is driven by politics and profit( housing affordablility will be, if not now, a major political issue in LA/CA politics). This will further flatten the Long Beach Condo market.
Latest numbers are in for San Diego, April 2006. Here are some excerpts from the article in the Union-Tribune.
By Roger M. Showley
UNION-TRIBUNE STAFF WRITER
4:25 p.m. May 10, 2006
“San Diego County home prices barely budged in April, rising only $1,000 from March to stand at a median $505,000, DataQuick Information Systems reported Wednesday.
Single-family resale homes were down for the second straight month to $555,000, while resale condos backed off $5,000 from their all-time peak of $400,000, reached in March.
Compared to April 2005, the latest median price was up 4.3 percent – continuing a trend that began in August 1996 when year-over-year prices began an unbroken monthly climb.
Meanwhile, sales in April fell for the 22nd straight month on a year-over-year basis and the decline of 30.7 percent from April 2005 was the biggest drop so far.”
No surprises here. YOY appreciation from last April at 4.3 percent is one of the weakest in almost a decade! Also even more striking is the 30 percent YOY decline in sales from last April! The article didn’t have the exact numbers yet, but I calculated it from last April’s 5300 sales, and it comes out to approximately 3700 sales for April ‘06. Slowest April in a decade. Additionally, this is actually a decline from March ‘06 when over 4100 homes were sold. Sales always picks up from March to April! So much for the “spring peak buying season” picking up steam. It’s going to be real interesting to see how things play out for the upcoming summer for San Diego.
Don’t worry just wait for Spring Selling Season to hit, the all you doubters will be sorry. Oh wait. I mean Summer Selling Season.
By my count, we added 1300 homes to the inventory in SD in April. That is supposed to be over and above 3700 sales? NFW. Sales numbers are bogus, just like days on market, just like sales prices (with seller give backs), you name it. The RE market is a fraud designed to part people from their money. We know from a thread on this blog in the past few days that these condo conversion owners set up phony sales escrows. Take those out and I bet the true sales numbers are far more bleak.
The link to the story
http://www.signonsandiego.com/news/business/20060510-1625-bn10homeprices.html
The “TOTAL ACTIVE HOUSE LISTINGS” graph which accompanies the article shows May 2006 inventory of 18,225. But a quick check on ziprealty.com shows Greater SD inventory at 20,009. I wonder how DataQuick cooks the numbers to come in so low?
Here is my favorite line from the story:
“Certainly, San Diego isn’t showing any signs that the sky is falling as it reaches the end of the real estate cycle,” Karevoll said. “The gap between perception and reality is so severe, even among these fairly well-informed people. They’re all kind of hovering, waiting for something bad to happen.”
An inventory crash has been underway since spring ‘04, with inventory currently at seven times the Spring ‘04 listings count and no sign of abating, and prices have leveled off and are poised to start falling. But industry spokesmen like Karevoll will keep denying anything bad is happening until the market has completely tanked, thereby inflicting maximum household balance sheet damage on anyone foolish enough to listen to him and act on his expert opinion.
Good quote, GS.
1600 fewer sales at 6% of $505k is $48,480,000 less in Realtor® comissions last month. Forty Eight Million Dollars.
Why is it that reporters never crunch the numbers and they usually end on a fluffy end note like “Still, there are neighborhoods bucking the slowing trend.”
I refuse to belive they’re just that lazy.
The hits just…
Still, I’ve got 5 bucks that says Fannie Stock goes up tomorrow, just because that’s how they roll.
HOA at $1000/mo? What are they wasting that kind of money on? Mine is $39/mo in ABQ. Also, lived in LA a long time. Long Beach downtown is almost impossible to get to. Other posts are so correct about the semi-trucks. Anyone paying $1M for a POS there has smoked something real funny. The smart people already left. Good luck to those idiots in finding another Greater Fool.
Attn Ben Jones:
Check your email
I’ve arranged for a Canadian news radio station reporter friend of mine to do an interview with you about the US market and your blog here.
If you are going to live in Long Beach, Belmont Shores is your only bet (IMHO) off 2nd St. Anything else is kind of icky…
But don’t buy yet! Wait about 3-4 years.
If you are going to live in Long Beach, Belmont Shores is your only bet (IMHO) off 2nd St. Anything else is kind of icky…
But don’t buy yet! Wait about 3-4 years.
Consumer groups are reminding the Department of Housing and Urban Development that RESPA reform also means regulating mortgage broker compensation so consumers know upfront how much they are paying the broker in a loan transaction.
The yield-spread premiums that brokers receive from wholesale lenders are “kickbacks,” which Congress “sought to forbid” when it enacted the Real Estate Settlement Procedures Act 30 years ago, according to a letter by seven consumer groups.
The consumer groups paint YSPs as an “extra fee the broker extracts from the deal,” which few consumers understand. And these extra fees “fall particularly hard on the most vulnerable consumers,” the letter says.
To “curb abusive” YSPs, the consumer groups are urging HUD to impose new requirements on mortgage brokers that go beyond disclosures. HUD should require brokers to enter into binding contracts with borrowers that list their services and total compensation, according to the April 6 letter to HUD secretary Alphonso Jackson.
A National Association of Mortgage Brokers official called it “outrageous” that brokers are likened to “thieves and scoundrels.”
But the April 6 letter also surprised some brokers because it doesn’t reflect the outcome of hard-fought litigation over the legality of YSPs that consumer advocates and class-action attorneys lost.
The consumer groups also want HUD to rescind a 2001 policy statement on YSPs.
“The letter harkens back to positions taken five or seven years ago when they questioned the legality of yield spreads, which we thought had been resolved many years ago. It is somewhat surprising from my point of view,” said NAMB legislative chairman Joe Falk.
The consumer groups sent their letter at a time when HUD is working on a RESPA reform proposal that might be issued this summer for public comment.
“It’s a pretty aggressive statement that establishes their mark in the RESPA debate,” one observer said.
While consumer groups claim most borrowers would be “amazed” by the compensation brokers receive, Mr. Falk noted that they would also be amazed at the back-end fees mortgage bankers and commercial bankers receive in the form of servicing release premiums and gain on sale.
“The problem with this treatise is it ignores the fact that lenders earn exactly the same if not more than the broker,” Mr. Falk said in an interview.
If brokers have to reveal YSPs, lenders should disclose their profits from servicing release premiums and gain on sale, the Florida mortgage broker said. Otherwise, it would only lead to a basis against brokers and confuse consumers, he said.
NAMB plans to send a letter to HUD in response to the consumer group’s attack.
ACORN, Center for Responsible Lending, Consumer Federation of America, Consumer Action, National Association of Consumer Advocates, National Community Reinvestment Coalition and National Consumer Law Center signed the April 6 letter to HUD.
Thanks for that post. It’s a good one.
“thieves and scoundrels”
ROFLMAO!
“As opposed to the current crop of conservatives who want to skip the whole problem solving thing, and just sieze the wealth (and power).”
Its is natural for government to attempt to “sieze” power/wealth, both are the same thing.
Conservatives know that there are some “problem solving things” that government can do nothing about and usually make worse if they try.
Liberals know this too, but they also know that they can recruit many votes with the empty promises of future social programs that take from one group and give to another.
“Liberals know this too, but they also know that they can recruit many votes with the empty promises of future social programs that take from one group and give to another.”
Gee, how’s that ‘tax cut’ workin’ for ya? If you’re making more than $2M per year, I’d say pretty good. Unfortunately, for the rest of us non millionaires that $200-$2000 got eaten up pretty quick. “Conservatives” have brought us the biggest deficit in history.
When this whole house of cards collapses, it won’t be the fault of Liberals. This is a 100% ‘conservative’ boondoggle.
The YSP is nothing but a theft from the mortgagee. It is a sad part of what drove this giving money for overpriced houses to people that really had no business buying a house to begin with. I can get sarcastic on some things, but this really upsets me as I have seen people who got stuck with $20K in YSP on a loan they won’t be able to pay after 2 yrs. That makes my blood boil at thoses thieves who steal from trusting, but unknowing folks.