A Cash For Clunkers For Housing
Readers suggested a topic on timing and the housing bubble. “How soon from now will broad awareness of the U.S. echo housing bubble lead to a tipping point where nobody is willing to buy any longer and a large number of recent investors try to cash in at about the same time?”
A reply, “Remember the rapid collapse in sales post-homedebtor tax credit? Less than 90 days.”
One said, “I don’t know about my prognostication skills, especially because prices are always ’sticky’ headed downwards, but it will happen quickly and I do believe it has already started. In its least destructive incarnation, all Housing Bubble 2.0 has done is sucked in the 2nd tier of greater fools and pulled forward future demand. With the Fannie/Freddie trickery and block sales of foreclosures/distressed to the hedgies, it was more like a ‘Cash for Clunkers’ for housing.”
“Hedge funds and every other ‘investor’ in housing don’t want to own houses. They don’t want to be landlords or leasing companies- they want the cash. They want to be liquid and nimble so that they can quickly leap upon the back of the next great thing like a rabid Capuchin Monkey. Well, housing ain’t real liquid and they are going to realize that very quickly. When values fall enough, or sales/rentals under perform enough or some MORE attractive bubble grows fast enough, these indifferent investors are going to slit each others’ throats trying to get out from under these buildings.”
“I think it will start to get more interesting after August, because most people with children have to be settled into a school zone by then. It would also seem that monthly expenses for mothballing/carrying an empty house- in most of the country- might be more expensive during the winter months.”
And finally, “It will be entertaining. I didn’t expect the sucker’s rally to play out this way, but I can see it will lead to a rush to the exits. Downleg 2.0 was baked in the cake though. Buckle up!”
The Beach Reporter. “In the past 12 months, the median price of a home in the six-county region increased $85,000, to $385,000 from $300,000 in June 2012, said DataQuick. The median price has risen enough to match that of April 2008, when prices began dropping. The percentage increase is the largest since DataQuick began tracking the market in 1988. Price gains exceeded 20 percent in all counties, the company said, and the median has now increased from the year-ago level for 15 consecutive months.”
“However, interest rates have spiked and the higher prices have eroded affordability, and just when those factors will put pressure on the market is unclear.”
“The biggest price gain last month came in Los Angeles County, where the median price increased 30.8 percent, to $425,000 from $325,000 a year earlier. Sales fell 3.6 percent, to 7,342 properties from 7,619 a year earlier. San Bernardino County logged the second biggest increase, with the median price up 29.1 percent, to $204,000 from $158,000 a year earlier.”
“Buyers who can find properties remained confident about the housing market, DataQuick said. Last month, they paid $4.7 billion in down payments or cash purchases, down from May’s record $5.5 billion and up from $4.1 billion a year ago.”
“Sales in the $300,000-to-$800,000 range — a category that includes move-up buyers — increased 22.7 percent year over year. Sales of homes costing $500,000 or more rose 35.9 percent, and those more than $800,000 were up 33.6 percent. Meanwhile, sales of homes priced below $200,000 dropped 43.2 percent year over year, and those below $300,000 fell 35 percent.”
“During June, sales of foreclosed properties accounted for a 9.1 percent market share, down from 10.9 percent in May and 24.4 percent a year earlier. June’s share was the lowest since foreclosure took up 7.9 percent of sales in July 2007. It peaked at 56.7 percent in February 2009, in the midst of the Great Recession.”
“Does all this add up to another bubble? Not yet, say most market watchers. ‘It’s not indicative of a speculative bubble, nor is it indicative of a housing market that is fully healed. It will be healed when we have a supply side that meets up with demand,’ said Robert Kleinhenz, chief economist at the Kyser Center for Economic Research in Los Angeles. ‘When we get that more normal supply of houses for sale, the price increase will taper off to single or low double digits — and in all likelihood that’s probably a year away.’”
The Arizona Republic. “Mortgage interest rates have jumped over the past two months from levels that now look like once-in-a-lifetime lows. The spike hasn’t choked off the housing recovery, but it has left plenty of would-be homebuyers, already with a wary eye on rising prices, on edge.”
“‘We almost panicked that prices have gone up so much since November,’ said Riannon Bradshaw, who with her husband, Rob, has been looking for a larger home for their Queen Creek family of five. ‘With interest rates going up, too, it has created a sense of urgency.’”
“Adding to buyers’ frustration: Median Phoenix-area home prices have surged almost 60 percent, to $185,000 from $116,000, since the market hit bottom a few years ago, with relatively few properties available for sale. ‘I’m afraid that if we don’t get out there and find a house within the next few months, we’ll be permanently priced out of our dream home,’ said Bradshaw, who would like to stay near her current neighborhood but purchase a house with roughly 1,000 more square feet. And if the Bradshaws do move, they would give up the lower mortgage rate obtained when they bought their current home in 2010.”
“Carole Turley of Peoria worries that her payments will rise in coming months. She has a home-equity line of credit, with an interest rate tied to the prime rate. Unlike 10-year Treasury yields, the prime hasn’t budged. But Turley is concerned, especially because she has a principal repayment looming in a few years. ‘The rate could go up to 10 percent. It’s very scary,’ said Turley, who is retired. ‘Being on a fixed income, that would make a huge difference.’”
“Wendy Bergsman of Mesa, a retired state government worker, said she would welcome higher interest paid on her bank accounts. Even with Social Security and a pension, she still needs to watch her expenses, and low saving yields don’t help. ‘My parents saw their savings increase, but we’re lucky if ours just stay the same,’ she said. ‘Yields already are (nearly) zero point zero. How much lower can they go?’”
“Sun City West retiree Walter Pack bemoans the drastic slide in yields on bank CDs. One-year CDs, which paid an average of 3.8 percent in July 2007, have shriveled to about 0.2 percent today, according to Bankrate.com. ‘We’ve been hurt,’ Pack said in an e-mail, accusing the Fed of harming savers to prop up banks. ‘The Fed is to blame, definitely.’”
‘I’m afraid that if we don’t get out there and find a house within the next few months, we’ll be permanently priced out of our dream home’
04-06 all over again.
Last night my neighbor used the “they’re not making anymore land” argument. (This is in SW Riverside county, 30 miles from the coast). He’s actively trying to purchase a house with 0 down.
It’s just too close to 2006 so I cannot excuse these FBs for having memory problems. The smart people educate themselves and seriously consider arguments against big commitments. This is my approach to life that helped me breeze through the stock market bottoms of 2003 and 2009. This is my approach to buying gold as well. Emotion has to stay completely out of the big financial decision.
Same thing before putting the ring on the bride. But that decision must be made far in advance. My ex roommate and his girlfriend had a big wedding all planned. One week before the wedding he sent out an e-mail to ALL and told all invitees he will take care of refunds on their lodging deposits or whatever. This was before he told his fiancée! Doh! And I knew about this because of an e-mail sent out by her a few hours later!
he will take care of refunds on their lodging deposits or whatever.
Good thing he made the decision just before the scheduled wedding rather than just afterward.
‘I cannot excuse these FBs for having memory problems’
Especially since this lady lives in Queen Creek, which had possibly the highest foreclosure rate in the history of housing.
Yep, just two years ago it was possible to rent a 3/2/2 for $750/mo in that area. And now people are tripping over each other to bid on those homes, far away from the metro area and any real jobs.
(P.S. - $20 dollars in my pocket will take the bet that the GM proving grounds don’t get redeveloped into anything substantial prior to 2020. It’s another Westgate in the making.)
“One week before the wedding he sent out an e-mail to ALL and told all invitees he will take care of refunds on their lodging deposits or whatever. This was before he told his fiancée! Doh! And I knew about this because of an e-mail sent out by her a few hours later!”
That had to be extremely painful for all parties concerned.
Big weddings are a waste of money, unless both families are filthy rich. I’ve noticed the more elaborate the wedding, the longevity of the marriage is shorter. I know very few big wedding couples still married, and lots of city hall couples still together. This is coming from a 50 pair of shoes lady.
” I cannot excuse these FBs for having memory problems”
They just have selective memory and remember all the people who made money rather than all those that lost money. Sort of like people who remember that “big hand” in Vegas but block out all the times they lost.
Last night my neighbor used the “they’re not making anymore land” argument.
How Freudian coming from zero down, empty pockets and tire kickers.
What he really meant?
They’re not making any more entry points for dumb, borrowed money. I must move fast.
Tell the dumb mother f_cker to enjoy his handcuffs.
Dammit, HA! Quit waffling and tell me how you REALLY feel about it! (As I wipe icy-cold Smithwick’s Ale froth from my keyboard).
Hey…. the truth never changes when Dumb.Borrowed.Money is involved. That clowns motive so damn transparent yet nobody seems to see it.
How can that be?
LOL! I had to look at that article and see if the year was 2013! Ms. Bradshaw must have been in a coma during the years 2003-2007.
the obama housing bubble v2.0 will continue until:
1. $60 billion/month in QE stops
2. The government stops borrowing 46 cents for every dollar it spends
3. The government stops guaranteeing 90%+ of all mortgages
4. The government stops the bailouts of TBTF banks
For the record, it’s supposedly $85 bn in QE3 per month ($45 bn T-bonds, $40 bn MBS).
Not sure where I heard this and I don’t have a reference (maybe talk radio), but I think they officially spend 40 and 45 bn on these programs but sometimes can spend MORE. The number that came to mind was $60bn as 2banana said and when they cut back to 40 or 45 the economy started going downhill fast.
Anyone heard of this or is the new drink (Capt. Jack Sparrow) I discovered tonight having it’s way with me?
the obama housing bubble v2.0 will continue until:
1. $60 billion/month in QE stops ???
Hey….2-Fruit…Tell me again who appointed Barnanke….
Bernanke then served as chairman of President George W. Bush’s Council of Economic Advisers before President Bush appointed him on February 1, 2006, to be chairman of the United States Federal Reserve.
Hey….2-Fruit…Tell me again who appointed Barnanke….
Hey…….Obama appointed him most recently - it no longer has anything to do with what Bush did in 2006. IMHO you’ve just demonstrated the classic behavior often mentioned here by Smithers(?): When Democrats are in office, the problems are due to something Republicans did and we can’t help it. When Republicans are in office, it’s all their fault and they must be removed…Congrats!
…and as you have demonstrated, republicans behave exactly the same way.
This is why democracy is dead in this country. Drooling imbeciles voting for ‘their’ team.
“Price gains exceeded 20 percent in all counties, the company said, and the median has now increased from the year-ago level for 15 consecutive months”
What happened last time this was the case to those who didn’t sell within a few short years after buying?
It seems pretty obvious: NEVER BUY IN A FLIPPER’S MARKET!
By the time these type of price “gains” are being reported, it’s already too late.
I know you’ve been already waiting a long time. I don’t think waiting another year or two will matter.
Why do they always quote the “median price”? This has nothing to do with whether prices are rising in general, and only speaks to the price of the house that is currently selling. If you look at the price history of individual houses, they are not up that much. I think median price is a better indicator of who is currently buying, and what is currently offered for sale. But to try to sell that as an indication of generally rising prices, is very misleading.
I wonder about the next leg down. The government will likely make it drag out again for half a decade with gimmicks and give aways and more debt. The setup seems more harsh than in 2006. The magical China growth engine is gone, the European dream is gone, the magical free energy industry is on its deathbed, we have millions fewer jobs to start, the price of food has doubled, & etc.
Not to mention we’ve gone from enthusiasm over hope and change to the mad emperor channeling his inner trayvon.
We’ve had six years to reposition ourselves for what comes next.
We will probably have another 3 more years for the repositioning. Or 3 months.
Perhaps next time around, they can line up the bailouts in advance, so they don’t have to experience another “egg all over our faces” moment like Paulson and Bernanke did in Fall 2008?
Not to say that they can’t drag it out for a few more years- heaven knows I never thought that they could break/twist this many laws and get away without someone with power crying ‘FOUL!’- but from the limited view I have, it feels different. Anybody with a functioning brain stem and 5th-grade math skills knows that the economy is actually in much worse shape than in 2007. MUCH worse. There is nothing fundamental supporting this suckers rally in housing- NOTHING. It is even more tenuous and more fragile than in 2007 and when ANY catalyst sets it off, I think this time it really will go into free fall- there is NOTHING supporting it, not even delusional thinking and denial (even the MSM admits/acknowledges its a bubble). So, will Bernanke, Obama, et al ride to the rescue? Politically, (which is all they really care about) I don’t think that they can. From a previous thread (with a couple typing corrections), this is what I think could very well happen.
“No, I don’t see another bailout as being feasible- there are no votes for Washington to gain and many to potentially lose. The individual speculators have no mouthpiece except the NAR and no other unified muscle/lobbiest. The hedgies are mostly comprised of (or are perceived as) rich, hard-core, right-wing Republicans. Obama and Democrats will not risk political capital to save hedgies, because they are not going to start voting Democrat out of gratitude. If the Democrats tried, there would be an angry backlash and the Dems could actually lose votes/seats. How will you sell a bailout for ‘ rich, fat, old, white millionaires who gambled their excess cash in driving up the cost of housing for the common man’? Because that is how it would be portrayed.
Since there is significant risk, but no gain in saving them, the political animals will look for some way to profit from the speculators’ demise. They will get mileage from demonizing the hedgies and blaming them for the bubble, holding up their plight as an example of ‘fairness’ and ‘our free market at work’. House prices correct significantly, most of the Bubble 2.0 purchases were cash so there is not additional credit-related systemic risk, the ‘Bad Guys’ get outed and thwarted, a few billion in excess hot money gets sucked out of the system, Obama gets his ‘teachable moment’ in the spotlight and rides off into the sunset on his unicorn, having saved capitalism while ensuring ‘fairness’ once again. Everbody wins. Except those who don’t.”
IOW the Bailouts of the corporations and banks, and the Fed buying back toxic MBS only is delaying the severe correction and not really correcting the problem caused by government meddling of the economy in the first place.
All smoke and mirrors. It’s a musical chairs game. If we have three more years of this inflated assets thing, you may as well stay in stocks.then in two years switch to 50% t bills and 50% commodities, which of course includes oil and precious metals.
I am too scared of real estate to obligate myself to any one community. Good neighborhoods can go bad very fast. Saw that happen in Fresno.
IOW the Bailouts of the corporations and banks, and the Fed buying back toxic MBS only is delaying the severe correction and not really correcting the problem caused by government meddling of the economy in the first place.
That’s what I’ve been saying right here all along. Still waiting…
“not really correcting the problem”
more like choosing the winners and losers
“…the price of food has doubled…”
I know food prices have increased, but have they really doubled?
We need a great contraction. Problem is there never was and never will be any support for this politically from either side or any politician wanting to get re-elected. There won’t be any support from the American people either. I just don’t think that is who we are as a society, certainly not now, maybe never.
We are a cancer patient that will not choose chemo, but instead remains in denial. We have gangrene but won’t accept the amputation.
The only way it ever happens is when it is forced on us and there is no other choice. Great Depression, War, some awful huge unavoidable mess. There is no managed or controlled correction in housing or in anything else.
We ain’t got a consituency, Homer Stokes got a constituency.
There is no managed or controlled correction in housing or in anything else.
I disagree. It may be distasteful, but there IS a built-in controlled correction, the unstoppable march of time. It wouldn’t surprise me if some of those frank conversations in the “quiet rooms” amounted to: just hang on until the baby boomers die off. Eventually they will retire and let the Gen X get the jobs with income, they will stop using social security, medicare, and yes banana, those public pensions. These retirements are not lavish on an individual basis; but there are are so many of them. New workers don’t have those built-in retirements. Should be interesting…
Eventually they will retire and let the Gen X get the jobs with income, they will stop using social security, medicare, and yes banana, those public pensions.
I think Gen X will get bypassed as always…their best hope is to own their own business.
“We have gangrene but won’t accept the amputation.”
Detroit = amputated organ?
Or bailout recipient?
Time will tell.
I find it amusing that people think that higher mortgage rates might translate to higher savings rates. That doesn’t help the banks.
“That doesn’t help the banks.”
It’s a mixed bag. On the one hand, higher savings rates would mean banks have to pay more to attract deposits. On the other, higher lending rates would give banks greater incentive to make loans and enable them to earn more interest income from loans they make.
It sounds like a conundrum until you realize the simple solution: Since banks borrow short-term and lend long-term, let long-term interest rates adjust upwards while holding short-term rates near zero.
11:38 am Jul 17, 2013
Markets
Tapering, Short-Term Rates Are Two Separate Conversations
By Vincent Cignarella
UniCredit Chief US Economist Harm Bandholz appears to have nailed the confusion surrounding statements by Bernanke and investor interpretation. It’s Bandholz’s contention the chairman is attempting to explain “asset purchases and short-term interest rates have different roles” — an opinion that frankly makes sense out of the confusion of future Fed policy.
The Fed is using the asset-purchase program in an attempt to stimulate economic growth, largely due to the absence of sound fiscal policy. The central bank is trying to improve the labor market within the context of maintaining benign inflationary expectations. To this end, asset purchases will continue until such time that the labor market recovers. Unemployment isn’t close to being low enough to where the Fed will begin tapering, and while incoming data will determine the timing, Bernanke made it abundantly clear today there is no “preset course.”
The outlook for short-term interest rates is decidedly different. Separate from QE or asset tapering, the Fed has emphasized that low rates will remain even as the economy recovers and unemployment falls in line with more-appropriate levels. As long as inflation remains benign, short-term rates will remain low — and as I wrote in an earlier piece, what appears to be the course is a reversal of Operation Twist. An attempt by the Fed to shorten the duration of maturities, not necessarily reduce the size of the balance sheet. At least not at this time.
Shorter duration will steepen the curve and give the Fed greater flexibility in tapering as maturities get closer to what is the duration of what is more typical of FOMC operations. That’s historically the tool of choice in the Fed’s arsenal.
Understanding the distinction between the two distinct programs — asset purchases and short-term interest rates — will give investors greater clarity. It is also paramount for the Fed. If investors can’t make the distinction between the two, a Fed exit via tapering will have a dramatically negative effect on interest rates and the US economy.
…
Wasn’t there a sort-of ‘cash for clunkers for housing’ program roughly concurrent with the automotive program? I believe it was called the “First-time Homebuyers Tax Credit.” Though it lacked the “clunkers” component, it had a similar objective, which was to stimulate sales (whether of cars or houses) at a time of depressed demand in the wake of the Great Recession.
My SIL and her husband bought a $175,000 condo out on the desert flats of West Salt Lake City, partially in response to the credit incentive.
Dough For Dumps
Cash For Shacks
Schekels For Shanties
Suckers For Self-Slavery
Cash for crapshacks
Wagons for Donkeys.
LMAO….. Wagons for Donkeys.
++++++++A1
Would now be a good time to use an adjustable rate mortgage to buy a home in the U.S.?
Why adjustable-rate mortgages are hot again
PHILIPPE HUGUEN/AFP/GETTY IMAGES - When buying a house, it is important to calculate which mortgage is best for you. Many borrowers are considering adjustable-rate mortgages, which fell out of favor during the recession and recovery.
By Katherine Reynolds Lewis, Published: July 18
When Brian Bartlett bought a one-bedroom condominium in Rosslyn last month, he asked his mortgage broker to price a range of mortgages, from a one-year adjustable rate to a 30-year fixed rate. The seven-year ARM ended up giving him the best rate without picking an uncomfortably short time frame.
“My decision was pretty much to get the lowest rate possible while also managing the risk,” said Bartlett, who is 29 and single. “It was right in the middle, the sweet spot for where I am in my age and my situation. Seven years from now, I’ll probably be in a much different place financially and in my personal life.”
…
Geezus!!
“The rate for the mortgage he chose will stay at 3¼ percent for seven years, and then may adjust each year thereafter, based on the Libor rate. But the highest the rate could be is 8¼ percent and the lowest is 1¼ percent. Bartlett put down $350,000 in cash to get the mortgage under the conforming loan limit of $417,000 and obtained an interest rate half a point lower.”
My god, did he actually pay upwards of $700K for a one-bedroom condo? I suppose Rosslyn is hip, but not that hip. And where did he get his hands on $350K cash?
Bet it is in this development:
http://www.realtor.com/realestateandhomes-detail/1610-Queen-St-Unit-232_Arlington_VA_22209_M69162-35708?row=49
“And where did he get his hands on $350K cash?”
By renting for the fraction of the cost of buying and saving the difference. I know I know….a foriegn and broad concept for your mind to grasp.
As much as I’d like to believe that, odds are low. Very few people make the kind of money it would take to save that much by age 29 while living cheap. A vanishingly small number.
Analyst/Pimp, I rented for over a decade, frugally, to save up my down payment. Needless to say, my cash pile was nowhere near $350K.
And if this 29-year-old had been savvy enough to rent and save the difference, every bleeding month, as I did, then he wouldn’t be so quick to throw $700K+ at a one-bed apartment, no matter where it was.
If I had that kind of cash, I would go Oil City on an acre in the boonies and ask you to build me a 700 sq ft house for $35K.
Yet you went ahead and paid 4x construction costs for a run down 30 year old ranch.
You really need to think…… *think* before you speak.
ARM is making comeback — and could save arm and a leg
By Kenneth R. Harney
Friday, January 28, 2011; 11:05 AM
After years of virtual exile from the home-loan arena, is the adjustable-rate mortgage staging a quiet comeback? Could an ARM be on your shopping list the next time you need to buy or refinance a house?
You might be surprised by what they offer.
A new survey of 112 lenders by mortgage giant Freddie Mac found that ARMs are starting to attract applicants again. Adjustables accounted for just 3 percent of new home loans in early 2009, but are projected to be the final choice for nearly one in 10 borrowers this year. In the jumbo and super-jumbo segments, the share will be even larger, said Freddie Mac chief economist Frank Nothaft.
…
Back the wagon up!
Hee Haw!
Hee-haw all you want, but if somebody is buying these relatively “safe”
ARM’s on the secondary market, then you will never see your 65% craaater. As was said the other day, the banks/gov aren’t making housing more affordable through lower prices, they are doing it though looser financing. That will keep prices bouncing along the 2009 “bottom” for quite some time.
btw, read your post about your early lineman days. Thank you for informational posts like that.
And if you paid as much attention to the fundamentals as you do my former occupation, you’d realize how distorted your thinking is.
… we’re not holding our breath.
California housing market bouncing back at record pace
http://abclocal.go.com/kabc/story?section=news/business&id=9178009
Levine at Beacon Economics is full of it, and so is the realturd interviewed. A 28% pop sounds like bubblicious territory to me.
How much NAR money does Beacon take these days to fund its research program?
Just thought I would give another update. I wish I could post a screenshot from my iPad and Realtor.com APP. The local neighborhoods in my area (Central FL) are teeming with homes for sale. It seems like inventory is popping up all around, and for the first time since last fall there are price reductions. I looked at two properties today with a 20k reduction (320k to 299k - about 8%). My best guess is we are at 2004 prices in this area, a full 4 years into the earlier bubble.
This fall is going to be interesting - real interesting. I expect the “inventory shortage” to go away quickly.
‘A 28% pop sounds like bubblicious territory’
Consider this:
‘Sales in the $300,000-to-$800,000 range — a category that includes move-up buyers — increased 22.7 percent year over year. Sales of homes costing $500,000 or more rose 35.9 percent, and those more than $800,000 were up 33.6 percent. Meanwhile, sales of homes priced below $200,000 dropped 43.2 percent year over year, and those below $300,000 fell 35 percent’
I’m not saying it’s so, but in this circumstance, a median price statistic could show a huge increase when prices are actually falling. The mix is shifting so much, only a price per square foot would get close to what’s happening. BTW, Dataquick tracks that, but the media only publishes the median.
Yes, you always say it better than I can! I wonder how many people can decipher this from the constant drone of ” the median price is up x%?
Ben
Thanks for the post and nudge.
Our home model w/o a pool went out
$110K more than we paid 10 months post our COE. That’s insane. Our neighborhood should really be at $250K (2002 prices).
We’re considered a starter home neighborhood. $490K is not a starter home,
or even a move-up unless you’re making a bundle and can REALLY afford it. Holy Cow!
One-story move downs are in demand in our area. Baby Boomers are dumping their McMansions and looking to pay cash.
That’s why the Case Shiller indices make so much sense…they track sale pairs (same home sold twice), and when looking at large numbers of these pairs, they can not only control for size (which doesn’t get controlled for with the median calc), but also specific neighborhoods, age, quality, etc.
Median is misleading in a flat market (since the mix changes with the seasons) as well as in both up and down markets.
It makes sense to liars like yourself.
CS excludes defaulted property.
Talk about your debt bomb…
CONORD, N.H. (AP) — Federal officials preparing to sell the New Hampshire compound of a tax-evading couple convicted of amassing an arsenal of weapons can’t guarantee that explosives and other booby traps aren’t hidden on the 103-acre spread.
In fact, they will openly warn bidders that land mines might be planted throughout Ed and Elaine Brown’s bucolic property in the small town of Plainfield. And they say prospective buyers won’t be allowed on the grounds until they submit a winning bid that frees the government of liability for dismemberment or death.
until they submit a winning bid that frees the government of liability for dismemberment or death.
Let the bidding wars commence!
Buy now and be blown up forever.
I’m reading some articles based around the Realtytrac flipping report. Here’s one:
http://hamptonroads.com/2013/07/region-ninthmost-profitable-market-home-flips
‘The average profit margin on local homes sold during the period after being owned for six months or less was 13 percent, RealtyTrac said. That tied Hampton Roads with Charleston, S.C. Daytona Beach, Fla., topped the list with a profit margin of 82 percent. Omaha, Neb., came in second at 56 percent. Five other Florida metro areas and Pittsburgh finished above Hampton Roads.’
‘RealtyTrac said flippers still lost money, on average, in 27 of the 100 U.S. markets it surveyed in the first half of this year, and it said 32 markets saw a decline in flipping.’
‘In Hampton Roads, median home prices have not yet recovered to 2007 levels, and distressed sales - those of homes in foreclosure or whose mortgages are underwater - still account for more than 20 percent of all sales.’
The one comment as of now:
‘Submitted by ethan2: Home prices returning to 2007 levels is not a recovery. A recovery is them going down. The American economy is so weak!’
The report doesn’t include what the ‘investors’ had to put into the house. So it would seem flipping is losing money in many markets. What is being overlooked in many of these articles is that if prices were rising quickly, (or rising at all) there would be money to be made.
Wow…. “Ethan” is actually thinking. Stunning.
My m.in.law will take what she paid in 2001 for a condo in FL
any takers?
My mom is wanting to sell her condo and move to DFW to be near my sister and her kids.
She’s been drinking the koolaid…….says it’s a “sellers market” because the TV said so.
“Sales are up” she repeats……..Yeah? Compared to when?
One of the reasons that there has been “low inventory” around here, is because everbody knew in 2009-2012 that they were going to have to “give it away”. Herr Goebbels and his associates at the NAR have convinced them that now is the time to sell. So the busiest guy in town is the guy that makes “For Sale” signs.
Trouble is, who are they going to sell to? The 20-30 year olds who went to college aren’t coming back. Neither are the kids who joined the military……when they GTFOOD, they realize what a $hithole this place is becoming, and don’t come back. The rest get to try to land a government job of some kind, or compete for Lucky Duck jobs with the illegals.
This particular town has been insulated from a lot of the economic displacement, because it’s a “government town”…….state and Federal offices and courts, lobbyist offices, VA hospital. Tons of government and railroad retirees. The Air Guard/aka the “Double-Dippers Flying Club”. Lots of retail sales from families driving over from Fort Riley.
The biggest non-government employers are the railroads, health care for the gazillions of retirees, retail distribution centers, the potato chip plant, and the new, built with government handouts, candy bar factory.
The kids with money go off to college. The kids with no money and Republican parents all join the military. (Why not? The pay is good. My buddy has a son, 26 years old, who flies F-16s for the Air Guard in another state. With flight pay, pulls down $100K/year……and that’s without being deployed.)
Of course, their relative economic stability isn’t because they are all nursing from the government teat, but because of the local’s die-hard, Republican/Gaultian, boot-strapping, hard-nosed, let-the-wretched-refuse eat tree bark/don’t worry about the poor, God will provide (if they are good Christians like us) mindset.
Using examples like amusement parks in Idaho for illustration, some people say that the economy is doing great. Yeah, I’m sure that the places that cater to the banksters/1%ers, or are in areas propped up by government subsidies/favored businesses are doing okay. Every major town has enclaves like that.
The rest of the country (my off the cuff guesstimate is 60%) is characterized by people with no money, businesses with no sales, and government with no tax base.
this is an excellent post. please re-post tomorrow so more can read it…
“any takers?”
Sorry, I’m not in the market for a mother-in-law.
Blue
lol very funny
5
7