Investors Are Ready To Cash In
The Los Angeles Times reports from California. “Home prices in a dozen Southern California ZIP Codes have passed their peaks during the housing bubble, according to DataQuick. In Arcadia’s 91007 ZIP Code, the median sale price for a previously owned house reached $1.33 million last quarter — 30.5% higher than its peak in 2007. In the city’s 91006 ZIP Code, prices are 23.7% higher. In the San Gabriel Valley, an influx of Chinese buyers has shifted the market into overdrive, real estate agents say. ‘It’s crazy,’ said Pamela Rose, a San Gabriel Valley real estate agent. ‘We are experiencing a lot of overseas money.’”
“Despite steep prices, experts don’t see a bubble forming in these areas. ‘There are important, fundamental reasons that prices moved up,’ said Stuart Gabriel, director of UCLA’s Ziman Center for Real Estate.”
The LA Downtown News. “The surge of investment in Downtown in the last couple years has reminded many people of the pre-recession era. Then, as now, big-budget housing and other projects are announced seemingly weekly. Once again, construction cranes speckle the sky. Most compelling is that global developers will sometimes back big projects that others shy away from. ‘Asian investors seem to be patient investors these days, with an affinity for land and a longer-term thought process,’ observed Eric Sussman, a real estate expert at UCLA’s Ziman Center for Real Estate. ”
‘The demand isn’t just because of the merits of local property, either. Foreign buyers are often looking to diversify their real estate assets, moving away from their home countries as overseas capital markets grow hotter. ‘Take some Chinese investors, for example,’ Sussman said. ‘I used to hear that the growth rate in China was preferable, but now people are seeing the market there as being overheated, as a bubble. They’re looking elsewhere now.’”
The Daily Press. “Shear Realty owner/broker Caroll Yule told the crowd at the Victor Valley Chamber of Commerce event that land sales are picking up. ‘The phones are ringing again. We’re feeling good. We’re even selling dirt,’ Yule said. ‘We haven’t sold a (vacant) lot in six years and now we’re selling them like they’re going out of style.’”
“Yule said at current prices — February’s median price for a singlefamily home in the High Desert was $155,000, a drop of $10,000 from January — home builders can’t make a profit on new construction. ‘Some are building anyway,’ she said.”
“Southern California home prices held steady last month while sales tumbled to a six-year low, further evidence that the market has stalled after a torrid rebound. Sales continued to fall even though buyers have more homes to choose from. In the Inland Empire, which includes San Bernardino and Riverside counties, listings rose 30.5% compared with January 2013.”
“Continuing slow sales could indicate buyers are turning away from higher prices and mortgage interest rates, said DataQuick President John Walsh. ‘The drop in housing affordability is enough to nudge some out of the market,’ Walsh said in a statement. ‘Other would-be buyers have no doubt called ‘time out’ while reevaluating their housing priorities, or watching for signs the market has overshot a sustainable price level.’”
The Union Tribune. “San Diego County’s housing market picked up a little steam in February, but not enough to reverse a trend of declining sales and lower appreciation. ‘Interest rates are eking up, wages are stagnant, and the cost to run a household keeps going up,’ said Mark Goldman, a loan officer and real estate lecturer at San Diego State University. ‘I kind of see this malaise continuing for quite some time.’”
“Goldman said inventory has increased somewhat, reducing upward pressure on prices, and the fix-and-flip strategy is no longer such a great investment. ‘Investors who are purchasing today, with the expectations that values are going to spike, I think in most cases are going to be disappointed,’ Goldman said.”
The Orange County Register. “Perhaps it’s a nervous tic left from the ugly housing collapse, but considering the remarkable Orange County rebound, I’m perplexed as to why a mild midwinter cooling has heightened anxiety among numerous real estate pros. Some of the supposed worry spots in the latest Orange County Housing Report by market watcher Steve Thomas don’t concern me at all.”
“A 67 percent increase in Orange County inventory for sale also isn’t a huge concern to me. It’s actually to be expected when home supply a year ago was essentially nil. And a growing supply can actually lure shoppers back to the game.”
“What does worry me some about our move toward more ‘normal’ homebuying conditions is this: Orange County homes on the market, as of Feb. 27, were 5,403 – up 2,166 in a year. Vacant homes on the Orange County market, typically a marker for sales by a third-party owner or a motivated seller, were 29 percent of all listings this month versus 14 percent a year ago. What could explain the year’s roughly 1,000-residence jump in vacant homes for sale?”
“Don’t blame the lenders. About half of the surge in the supply of Orange County homes for sale is linked to vacant homes not tied to lending issues. Add that up, and it’s a clear sign that investors, many of whom bought Orange County homes at a deeply discounted prices in recent years, are ready to cash in.”
“Sellers were getting away with pricing homes above recent comparable sales, Thomas says. ‘But buyers no longer want to pay more than what’s fair.’ Thomas adds that this surge in investor listings is more evidence that last year’s jump in prices was a bit overdone, ‘and says that there’s not a lot of appreciation left.’”
“Add that up, and it’s a clear sign that investors, many of whom bought Orange County homes at a deeply discounted prices in recent years, are ready to cash in.”
With inventory skyrocketing 67% and housing demand at 17 year lows, how does one ‘cash in’?
Besides, buying a retail product in hopes of reselling it at a higher price is a money losing exercise.
Boom and bust, boom and bust. That is all Bernanke and Felon have to show. More ZIRP, more money printing. When will it all end? Maybe a good sign is how the Santa Claus Party lost in Fl. The MSM sure is ignoring it at the request of the Dictator.
What rules will be suspended today? What laws delayed?
Ask the 1%-ers who are suspending and delaying them.
Yep, through their puppets, including the current one.
Boom and bust, boom and bust. That is all Bernanke and Felon have to show. More ZIRP, more money printing. When will it all end? Maybe a good sign is how the Santa Claus Party lost in Fl.
What? You think the GOP doesn’t like housing bubbles? Who was in charge from 2000-2008? Who do you think appointed Bernanke?
If you don’t like the “Santa Claus Party”, that’s fine. Just don’t expect the other guys to bring any sanity to the housing market. And FWIW, the other party is also a Santa Claus party, the only difference is that their Santa stops by different houses than the the other party’s Santa.
I don’t recall interest rates being held at 0% for 6 years under Reagan. We had normal growth and appreciation in housing prices. The thing that bubbled under Reagan was job growth.
Also you didn’t have to stick your money in the stock market to earn income. CD’s were paying 6,7,8 percent and nobody said the sky was falling in.
In addition Bush was a progressive. This is why Helicopter Ben exists.
or a Christian socialist /governmentarian
I don’t recall interest rates being held at 0% for 6 years under Reagan.
Do you really expect the current crop of GOP’ers to be like Reagan? Do you expect the current crop of Dems to be like Harry Truman?
I’m talking about what they are like now, not in the long gone past.
Then Libertarians are the closest to Reagan economically. The “current crop” of GOPs may also find themselves out of work along with the left if things do not improve. Rand Paul didn’t score a 1st for nothing at the CPAC convention.
But the religious right won’t vote libertarian because of their views on abortion and homosexuality.
Politics makes strange bedfellows, when the economy is at stake how can anyone deny prosperity. I agree it will be hard to turn around the religious right, they are one issue.
“But the religious right won’t vote libertarian…”
I don’t think everyone in this general category votes as an automated block. I would vote libertarian. I’m religious and try to be conservative in matters of prudence, but liberal in the control of others where no harm is done. This is a very traditional Presbyterian view.
We can agree that things are pretty screwed up at the top and it would be better for us if the tree (all of its branches) got a good pruning. Or we can disagree…
LOL!! Reagan tripled the deficit, and gave amnesty to millions of illegals. Is that what the GOP is proud of these days?
Take a look at the revenues under Reagan. They went way up. I agree the amnesty thing didn’t work. Nobody is perfect, except of course all you lefties who hate Reagan. The majority in this country disagree with you.
A banker got beat by a lobbyist. Neither possible outcome would have been a good sign. Wake up.
A banker got beat by a lobbyist. Neither possible outcome would have been a good sign. Wake up.
As long as “our team” wins, it doesn’t matter if the guy is a scumbag. Go Broncos!
“Despite steep prices, experts don’t see a bubble forming in these areas. ‘There are important, fundamental reasons that prices moved up,’ said Stuart Gabriel, director of UCLA’s Ziman Center for Real Estate.”
Round up the usual suspects…
That’s two quotes from people associated with the UCLA Ziman Center for Real Estate. I see that USC has its own pseudo-academic think tank, the Lusk Center for Real Estate. How many of these exist in the state?
Is the house or the linked debt considered a “magic asset”? Meaning, conventional wisdom says it can’t go down in value, only up?
When a magic asset comes into existence, there you have a bubble forming.
You can certainly have assets bid up speculatively in a short period of time, when players think they can get out in time with profit. That’s a type of bubble too, but not as huge as magic-asset based bubbles. A speculative bubble which holds its value can then turn into a magic-asset bubble. If it doesn’t pop beforehand.
“A 67 percent increase in Orange County inventory for sale also isn’t a huge concern to me. It’s actually to be expected when home supply a year ago was essentially nil. And a growing supply can actually lure shoppers back to the game.”
That sucker is turning fast, and there is nothing the denialists can do to stop it.
‘What could explain the year’s roughly 1,000-residence jump in vacant homes for sale?’
‘Don’t blame the lenders. About half of the surge in the supply of Orange County homes for sale is linked to vacant homes not tied to lending issues. Add that up, and it’s a clear sign that investors, many of whom bought Orange County homes at a deeply discounted prices in recent years, are ready to cash in’
What’s most interesting about this is that someone actually looked into the details and found this vacancy matter. It provides a much clearer picture of what’s going on. So why doesn’t CAR do it? Or Dataquick? This information is obviously available.
Remember when someone paid a couple of these data firms to look into shadow inventory?
‘As many as 90 percent of REOs are withheld from sale, according to estimates recently provided to AOL Real Estate by two analytics firms. It’s a testament to lenders’ fears that flooding the market with foreclosed homes could wreak havoc on their balance sheets and present a danger to the housing market as a whole.’
‘RealtyTrac recently found that just 15 percent of REOs in the Washington, D.C., area were for sale, a statistic that is representative of nationwide numbers, the company said.’
‘CoreLogic provided an even lower estimate, suggesting that just 10 percent of all REOs in the country are listed by their owners, which include mortgage giants Fannie Mae and Freddie Mac as well as the Federal Housing Administration.’
Then it’s all forgotten. Even the FHFA said shadow inventory is huge. But posters here will say, “where is this inventory? Where is it?” There’s a shortage! There’s nothing to buy! Let’s go stand in line and maybe, if we write nice letters, people will let us peek into their smelly shack and offer a lifetime of debt to live in it for a while.
I’d say most people aren’t buying it.
bwhahahahaha…. smelly shack!
I’d say most people aren’t buying it.
Exactly the problem … Not buying.
‘Florida’s real estate market remains haunted by decaying and abandoned properties even as new foreclosures slow and home values rise.’
‘These so-called “zombie” foreclosures — properties forsaken by both the bank and borrower — number 54,900 statewide, including 14,600 in Palm Beach, Broward and Miami-Dade counties, according to RealtyTrac.’
‘Many of the homes are stuck in limbo because banks filed to foreclose on them years ago, but then walked away from the case after realizing it didn’t make financial sense to take the home back, said Nicole Clowers, director of the U.S. Government Accountability Office.’
‘U.S. Postal Service information on vacancies was used to study the issue of abandoned foreclosures. But the Government Accountability Office also had access to bank records, leading it to the conclusion that lenders will walk away from a foreclosure if it’s too costly to repossess.’
“In some cases they initiate the foreclosure and then realize it’s going to be a money-losing venture and stop,” Clowers said.’
‘Suburban Lake Worth resident Mike Herndon doesn’t know if that’s what happened to a moldering house in his neighborhood on Burlington Court, but he’s frustrated the home isn’t being maintained by the bank or owner. JPMorgan Chase filed to foreclose on the home in 2010, according to Palm Beach County court records. Herndon said the owner left soon after. The most recent court action taken was in July 2013, but there is still no final judgment.’
‘The Burlington Court home has slowly deteriorated. A leak in the roof turned into a large hole that different property maintenance firms have repeatedly tried to cover with a tarp. Last Thursday’s heavy winds pulled the tarp off again, taking roof tiles with it. “I have been writing letters and emails for the better part of three years trying to get this property taken care of,” Herndon said.’
“54,900 statewide”
So it’s likely triple that amount. Add in the defaulted yet occupied inventory, defaulted empty inventory, delinquent inventory and we’re up in the millions.
We have a house like that in our nabe too. Except the house has a metal roof thankfully. Been sitting empty for over 3 years and is still listed on tax records in former owners name. Last ditch effort was to turn it into an assisted living foster home = fail.
Got zomies??
Except the house has a metal roof thankfully. Been sitting empty for over 3 years
With any luck the metal roof on the shack will last a century while the shorter-lived roofs in the nabe disintegrate - unless a scavenger strips the roof & sells the raw materials. Which outcome is most likely?
Shadow inventory is huge in certain states (FL, NY, NJ, other judicial states), NOT huge in other states.
As of 9/30/2012 (close to when your article was written), the REO held by Fannie was approximately 107k homes (about 9,400 in CA, or about 9% of the Fannie REO).
As of 12/31/13, the REO held by Fannie was approximately 103k homes (about 4,900 in CA, or about 5% of the Fannie REO).
Non-current loan rates at about the same time (9/30/12) per LPS was 8.6% in CA (US as a whole was 11.3%, CA was about 76% of the national rate), as of 12/31/13, CA’s non-current loan rate had fallen to 5.4% (US as a whole was 8.9%, CA was about 60% of the national number).
Over that time, nationally, 2.4 points were shaved off the non-current loan rate (including CA’s reduction in non-current loan rate), CA shaved off 3.2 points during the same time.
In other words, CA (and other non-judicial states) are working through their distress MUCH faster than judicial states. Increasingly the national inventory of distressed housing (non-current loans, as well as REO) is more and more concentrated in judicial states.
How can that be when there are 4 million excess, empty and defaulted houses in legal limbo in CA?
‘working through their distress MUCH faster’
Then why do you have this homeowner bill of rights thing?
Another thing; why is it that 1,000 vacant houses are newly listed in Orange County? Why aren’t these rented and for sale? Think about how much rent per month is being forfeited. The only reason I can think of is it will increase the speed of (potential) sales. Seems a little desperate, huh?
Anyway, so much for the idea that these were all “buy for the long term, rent is the reason” investors. Looks more like speculation now.
“Why aren’t these rented and for sale? Think about how much rent per month is being forfeited.”
The only answer I can come up with is that the American people, not the actual owners, are somehow on the hook for all this lost rent. If private financial institutions’ shareholders had to eat the losses, you can bet those homes would be on the market or rented out tomorrow.
More accurately; Why aren’t they marketed?
I’ll tell you why. If they were, the entire housing market in that seething $hitpot of a state would experience a price collapse.
http://www.realtytrac.com/content/foreclosure-market-report/realtytrac-february-2014-us-foreclosure-market-report-7997
Recent related data from Realtytrac (one of the data sources quoted in the REO article).
The most shocking piece of data…Arkansas, HI, FL, NV and NY all take more than 1,000 days to foreclose…on homes that have already been vacated by their “owner”. Simply ridiculous.
9 of the top ten metro foreclosure rates were in FL.
Among the 20 most populous metro areas, the highest foreclosure rates were in FL (2 metros), Baltimore, Riverside/SB, and Chicago.
And why is CA missing from that list?
‘Don’t blame the lenders. About half of the surge in the supply of Orange County homes for sale is linked to vacant homes not tied to lending issues. Add that up, and it’s a clear sign that investors, many of whom bought Orange County homes at a deeply discounted prices in recent years, are ready to cash in’
That’s the part of shadow inventory which Jingle Male and Rental Watch conveniently ignore.
Is there any chance ensuing panic in China might slow down this juggernaut?
China Steel Mills Slide as Credit Squeeze, Iron Ore Panic Grips
By Bloomberg News Mar 12, 2014 1:29 AM PT
Chinese steel companies, the world’s largest, helped drive a regional industry benchmark index to a seven-month low as concern builds that some mills face financial difficulty amid a government credit squeeze.
“They are having trouble accessing finance,” Yunde Li, chairman of Ishine, a unit of China Zhongsheng Resources Holdings Ltd., which processes iron ore in Shandong, said today in an interview in Perth. Some of Ishine’s steel mill customers cannot make their payments to his company, Li said through a translator, declining to name the companies.
Closely-held steel mills in China are struggling to get funding at the moment and that’s led to panic selling of iron ore, according to Morgan Stanley. The nation’s top banking regulator said yesterday strict credit guidelines will be imposed on mills that were big polluters and users of energy.
“The capital squeeze on steel traders has started to affect mills,” said Henry Liu, Hong Kong-based executive director of China Merchants Capital and head of its commodities research department. “It looks like the credit crunch is worsening.”
Iron ore this week had its biggest drop in more than four years, spooked by the credit squeeze and a surge in stockpiles. The Bloomberg Asia Pacific Iron/Steel Index, which includes China’s Baoshan Iron & Steel Co. and Angang Steel Co. and Japan’s Nippon Steel & Sumitomo Metal Corp., dropped for a third day today, to the lowest since July 31.
“There’re talks some mills are facing tightening credits, as they may be charged with higher interest rates on loans,” said Hu Shunliang, investor affair representative with Maanshan Iron & Steel Co. It hasn’t affected Maanshan, Hong Kong’s second-largest listed steelmaker, he said.
…
What ensuing panic? You mean because they can’t find the plane? Or because of global fraud?
What to Do When China Causes a Stock Market Panic
By David Hanson and Matt Koppenheffer
March 10, 2014
Some market-watchers think China is on the same path as the United States was right before the financial crisis in 2008. Should investors try and understand the dynamics of the Chinese market or stay with their circle of competence.
In this segment of The Motley Fool’s financials-focused show, Where the Money Is, banking analysts Matt Koppenheffer and David Hanson discuss the potential for a Chinese financial crisis and what it could ultimately mean for U.S.- centric stock investors.
…
‘China’s economy weakened sharply during the first two months of the year, deepening concerns that growth in the world’s second-largest economy would decelerate further.’
‘In the real estate sector, which is among the largest drivers of growth in the Chinese economy, Residential and commercial property sales fell 3.7% to 709.0 billion yuan ($115 billion) in the first two months of this year. Total property sales by floor area declined by 0.1% to 104.7 million square meters. Construction starts by area fell 27.4% to 166.9 billion square meters.’
‘China’s largest alumina maker also said that the economy was deteriorating. “The situation is getting tougher and tougher,” said an official at Aluminum Corp. of China, who asked not to be named. The official said alumina prices have fallen below its costs.’
‘Li Guanqun, a 30-year freelance translator in Beijing, said the weak economy has cut demand for her services and convinced her to scrap a European vacation and visit the industrial Chinese city of Wuhan instead. “I think I need to find a part-time job to increase my income,” she said.’
On this:
‘Total property sales by floor area declined by 0.1% to 104.7 million square meters. Construction starts by area fell 27.4% to 166.9 billion square meters’
Uh, overbuilding much?
‘Thursday morning saw the conclusion of this year’s two sessions, with Chinese Premier Li Keqiang taking questions from foreign and domestic reporters at a press conference after the closing of the second session.’
‘China will push ahead with fiscal, tax and financial reforms, which have been set as priorities for the nation’s reform agenda in 2014, the premier reiterated at the press conference.’
“In the course of reforms, vested interests will be shaken and some people’s cheese will be moved,” the premier noted.’
http://www.spencerjohnson.com/Book-WhoMovedMyCheese.html
Heh, looks like the stock market is “responding” to China’s “weakening eCONomy”. Dow down 200 pts, the blame being placed on China weakness.
What a load.
But I think I’m detecting a pattern here. When you see a consistent meme in the financial news for a few days, look for a drop tied to the meme. Seems to be a way of telegraphing the move.
Did the Chinese Premier actually read that book? Next up: sales of “Who Moved My Cheese” spike after Communist Party members discard Mao’s Little Red Book in search of a new set of fundamental maxims.
Did the Chinese Premier actually read that book? Next up: sales of “Who Moved My Cheese” spike after Communist Party members discard Mao’s Little Red Book in search of a new set of fundamental maxims.
Meanwhile, Jiang Six Pack asks: Why would anyone care about moved cheese?
We have a branch office in Beijing, and periodically get visitors from over there. Invariably they find cheese to be gross. Most won’t even eat pizza.
My New boss made us all read that stupid book.
As somebody whose career cheeze has been moved a half-dozen times, I’m not in agreement with you. If anything, the book taught me to be more aware of the bigger picture at work and where I fit into it. It’s so easy to get caught up in one’s routine that one can miss the macro events that will eventually affect one.
“Southern California home prices held steady last month while sales tumbled to a six-year low, further evidence that the market has stalled after a torrid rebound. Sales continued to fall even though buyers have more homes to choose from.”
Sounds like the folks who successfully avoided buying over the past decade may soon have some real choice of new and used home inventory available to them.
So have we now entered the freeze-up zone? Like at the top of bubble 1.0 when everything stalled?
It’s another slow-motion train wreck.
This time I’m even more confident of a looming crash. Even though they pulled out all stops to put in a floor last time. Those FHA limits dropping loan amounts wanna be FBs can get by a quarter to a third will certainly play out in the next several months.
Only an absolute fool would buy now.
“This time I’m even more confident of a looming crash.”
No question of another massive correction; it’s only a matter of when and what exogenous event gets it rolling. The difference this time will be one of magnitude. Clearly it’s going to be larger given the fact that all the previous debt that resulted in the previous collapse was rolled up and is now backstopped by empty promises an additional 4 to 5x. It’s all still there but double or triple the size.
One the fabric begins to tear, the backstops will fall like dominos. If you’re exposed(debt or holding real estate) as this thing unwinds, you’re going to wish you did things differently.
Those chilling, waking up in a sweat at 1A.M. and can’t go back to sleep. Then that anxiety ridden drive to work in bumper to bumper traffic??
~You bought in 2012-13 didn’t you??? That 30 year debt slavery obligation you signed up for doesn’t seem worth all the letter writing and bidding you did, does it?
That 30 year debt slavery obligation you signed up for doesn’t seem worth all the letter writing and bidding you did, does it?
And there was a blast-o-gram from the CEO of your company this morning. Since you didn’t make the numbers last quarter, there’s gonna be a layoff (or an across the board cut in pay, take your pick).
The great thing about having no debt are no obligations. You’re not obligated to put up with outrageous bosses or co-workers.
With housing demand at 17 year lows, just how low can it go? Zero? Combined with rising excess, empty and defaulted inventory, it seems there is no bottom for housing prices.
arcadia is hot and san diego not ?
I’m confused
taxpayers
Arcadia, and many cities in the San Gabriel Valley have a high well educated Asian population, and employment options are solid. South Pasadena was our 1st choice, but man, is it pricey. What a cool city for Baby Boomer empty nesters.
Arcadia has upscale one story homes on large picturesque lots. Very nice stuff. I like to call them “Dr Homes”. The Rose Bowl and Race Track are nearby.
Down South, Del Mar Race Track is north of San Diego. Del Mar is a beautiful upscale town as well.
tx- I thought arcadia was less than nirvana- didn’t know.
taxpayers
Wish I made better decisions. Would love to live in Arcadia. No access to “Life 101-How to make it big” (the manual).
If the Mormons are right, and we pick our parents, I want Warren Buffett as my dad, and Masters and Johnson as my fantasy neighbors next time around. LOL
Chinese.
“…home builders can’t make a profit on new construction. ‘Some are building anyway,’”
What is the advantage of building for a certain loss?
They’re building, not selling. Trust me when I say this; they have huge latitude in moving the sale price without giving up their margin.
Maybe they have fixed costs that don’t go away if they don’t build: truck and other equipment payments, rent and utilities for the office, key staff they want to keep, etc, so maybe by building they reduce their losses? Who knows? Of course you can only do this for so long.
“…so maybe by building they reduce their losses?”
How can you reduce losses on your fixed costs by building at negative marginal profitability. Makes no sense.
I assumed that he had marginal profit. Why build if you are losing money even before fixed costs?
But then again, these are builders we’re talking about. They build because that’s what they do. So forgive me for thinking that there might be some logic to their actions.
I also wonder, how are they financing the construction if they are losing money? I would assume that the local bank would be very careful these days before granting construction loans.
Would now be a good time to purchase an investment property with a one-year adjustable-rate mortgage?
I’m hoping you are being facetious. Look at what professional property owners are doing (REITs), they have decades of experience watching capital markets, and very commonly they have debt that was floating in order to minimize interest cost.
Today, most of the REITs that I follow are getting the longest duration fixed-rate debt that they can, despite all-time low floating rates. For our investments, we look to get fixed rates as much as possible.
Now is a VERY risky time to buy with an ARM. Prices are no longer a bargain relative to rents (high along the coasts certainly), and interest rates are low relative to where they should be.
‘Look at what professional property owners are doing’
‘The demand isn’t just because of the merits of local property, either. Foreign buyers are often looking to diversify their real estate assets, moving away from their home countries as overseas capital markets grow hotter. ‘Take some Chinese investors, for example,’ Sussman said.’
So…
‘The demand isn’t just because of the merits of local property’
What are the merits in downtown LA? Plenty of walls to pee on walking home from the bar?
Ben
DTLA is actually cleaning up big time, although I grant you, some areas are still nasty. The subway stations are the center of the gentrification, filtering out.
Loved the comment in the DTLA News article that this time is different from the Japanese DTLA investment bubble. That’s a stroke of delusional optimism (aka bs).
DTLA is actually cleaning up big time”
yea I noticed that also
cactus
The Skid Row Housing Trust has taken the homeless crowd and gave them a place to live and the community is supplying jobs. Fewer homeless, every time I go to an interview. That’s what all cities should do.
Simi Valley breaks up the encampments in the parks, and complains they re-establish them. No kidding. Moving the homeless around doesn’t work towards any real solution. (Attended a City Council Meeting -fiasco)
Bulletin Mortgage rate for one-year ARM at record low; 30-year fixed rate rises to 4.37% »
March 13, 2014, 10:01 a.m. EDT
30-year-mortgage rate rises to 4.37%
By Ruth Mantell
WASHINGTON (MarketWatch) — The average rate for a 30-year fixed-rate mortgage rose to 4.37% in the week that ended March 13 from 4.28% in the prior week, according to a Thursday report from federally controlled mortgage buyer Freddie Mac. A year ago, the 30-year rate was at 3.63%. The average rate for the 15-year fixed-rate mortgage increased to 3.38% in the latest week from 3.32% in the prior week. Meanwhile, the rate for a 5-year Treasury-indexed hybrid adjustable-rate mortgage rose to 3.09% from 3.03%. The rate for a 1-year Treasury-indexed ARM declined to 2.48%, hitting a record low, from 2.52% in the prior week. The 1-year ARM data go back to 1984.
DTLA has 97 projects in the hopper or have reached completion. The Adaptive Use Ordinance is saving the older landmark buildings, but do they have people to buy or rent all they pricey loft homes? I’m taking a tour soon. Can’t wait!
Hats Off to Skid Row Housing Trust. They are changing the lives of the homeless (with housing options), along with all the other job suppliers. Great to see, as the homeless get displaced for gentrification, they can develop brighter futures.
Too bad your housing mania helps to price people out of homes. Is this a scheme to get the taxpayer to support overpriced housing for the people who are priced out of homes? Seems ironic.
The only good debt is one that has been paid in full. Good in regards the lender. What is good for the borrower isn’t interesting to the lender.
Abilene, TX Housing Prices Crater 18% YoY
http://www.movoto.com/abilene-tx/market-trends/
“Despite steep prices, experts don’t see a bubble forming in these areas. ‘There are important, fundamental reasons that prices moved up,’ said Stuart Gabriel, director of UCLA’s Ziman Center for Real Estate.”
Oh No not again what total BS
All university business schools are corporate interest sponsored. USC and UCLA are just on overdrive, imho. Their corporate sponsor list was interesting insight. Objectivity my arse.
Fear of overpaying at the top should ALWAYS make one pause before attempting financial suicide.
Welcome to the US of ADD.
Number Of Calif. Homes In Foreclosure Process Soars
by Nathan Rott
March 13, 2014 5:00 AM
3 min 41 sec
Foreclosures are at a seven-year low nationwide. In California, however, the number of notices of default, which is the first step in the foreclosure process, jumped.
san fran only up 3% yoy
isn’t that the most unique of nirvanas ?
isn’t that the most unique of nirvanas ?
The googleheads seem to thinks it is.
I love living here. No way I’d ever buy here, though.
Just a fact of a housing crisis, Phoenix for example:
Nov 2008 Listed over 13,000 homes sales about 900
Feb 2014 Listed just over 4,000 homes sales 1,100
No way we are in a crisis folks, these people told you the market was over valued at 8,000 remember, today it is at 16,000 and counting.
Keep getting scared and you will never advance in life, just sit in your rented trailer or apt and watch the rich get richer?
Look at the opportunity right now, there is a lull in the housing market go out and offer on a home, don’t just sit and gloat I told you so, gloat you bought a house that you made a bid on and got it done.
Always ups and downs in business, old companies like JC Penny or Sears fail and you think the sky is falling, it is 2014 and the old guard is changing.
In the 1920 to 1940 tons of car companies failed, did we go back to the horse and buggy. Think out of the box look at your situation, if you can make a deal on your dream of buying a home then do it now, a opportunity is upon you for a short period.
Phoenix?
Housing demand collapsed 26% in Phoenix. Why do you think there are 14,000 excess empty and defaulted houses? No demand.
http://www.zillow.com/local-info/AZ-Phoenix-home-value/r_40326/#metric=mt%3D30%26dt%3D1%26tp%3D5%26rt%3D8%26r%3D40326%26el%3D0
Remember…. Falling housing prices to dramatically lower and more affordable levels is positively bullish and good for the economy.”