March 25, 2014

Buying For Speculative Purposes

The Los Angeles Times reports from California. “The overflow from China’s economic high tide is transforming the housing markets of suburban Los Angeles. Affluent Chinese home buyers are driving prices past boom-era peaks, spawning a subset of property brokers and mortgage lenders that cater to their distinct needs. ‘People are getting money out of mainland China and sticking it here,’ said Mel Wong, president of the West San Gabriel Valley Assn. of Realtors.”

“But it’s getting more expensive quickly. Heavy demand pushed the median home sales price past $1.32 million last quarter in Arcadia’s 91007 ZIP Code — 30.5% above its peak in 2007, during the housing bubble, according to DataQuick. Next door in the 91006 ZIP Code, prices are up 23.7%. Other areas with prices exceeding their peaks include Walnut, Temple City, San Marino and parts of San Gabriel and East San Gabriel, all hubs for Chinese investment.”

“The Chinese buying spree sometimes borders on recklessness, said Dominic Ng, chairman of Pasadena’s East West Bank, the largest Chinese-American bank. Unwary buyers accustomed to urban China’s $1-million-plus luxury flats take ‘housing tours’ and snap up homes east of Riverside or in Arizona without considering the cost of property taxes (China has none) or maintenance of homes with pools and yards. ‘They look at the dinky little apartment in Shanghai or Beijing — you know, like one-fifth the size — and they say this is affordable,’ said Ng, who fears prices will appreciate less than the buyers expect. ‘They are buying for speculative purposes.’”

“Others want the prestige of a San Marino or Pasadena mansion, even if paying for it means working in China and rarely visiting. One of Ng’s neighbors bought a Pasadena estate, then lived there for just two days out of the two years that followed. ‘He was not renting it out,’ Ng said. ‘People have so much money, they just say, ‘What the heck. It’s a nice neighborhood. I might as well just buy one.’”

“It’s a story echoed by Patti Hahn of Arcadia, gesturing to the house next door, which sold for $2.45 million last year, up from $1.55 million in 2006, the last time it changed hands. ‘No one lives there,’ Hahn said.”

The San Francisco Business Times. “The troubling news out of China could have an even bigger impact on the Bay Area’s hot housing market. As with the U.S. financial crisis that hit with full force in 2008, the weakest players are the first to succumb. Clearly, the Bay Area’s frothy real estate market is also enjoying a big lift from the gusher of cash flowing into technology startups and the subsequent wealth creation that was on full display this week with Airbnb reportedly hitting a $10 billion valuation, or more than the price being paid to take Safeway private.”

“Tom Perkins, speaking to the Commonwealth Club last month, said plenty to stir controversy. But one of his observations was on the money: the amount of capital flooding into the hands of Bay Area venture capitalists and entrepreneurs is being driven by the Fed’s low-interest-rate policy that pushes everyone to take more risk to generate the returns they need, whether that’s grandma or the managers of grandma’s pension fund.”

“The money coming into Bay Area real estate from China and other countries includes not only the widely publicized deals, but also the world’s wealthy quietly looking for safer places to stash cash. As one real estate expert, commenting on rising condo prices in places like San Francisco and Miami, recently told Bloomberg TV, ‘We’ve become very good at building safe deposit boxes in the sky.’”

The Daily News. “The short supply of homes for sale in the San Fernando Valley eased in February as inventory increased 37 percent from a year earlier. At the end of last month there were 1,419 houses and condominiums listed for sale, up from 1,033 a year earlier, said the Van Nuys-based Southland Regional Association of Realtors. At the current sales pace, that would be enough homes on a market for 3.2 months versus a 1.9 month supply a year ago. That’s the longest amount of time since February 2009.”

“‘The coming months may show that buyers and sellers reassessed the changing market during February,’ association president Roger Hance said in a statement. ‘We’re confident that deep demand for housing will yield increased home sales, although minus the multiple-offer frenzy of 2012 and 2013 and with prices rising at a much slower, unhurried pace.’”

“During February the median price of a Valley house increased 13 percent to $475,000 from $422,000 a year earlier. But the median price fell by $10,000 from January. Sales of previously owned homes dropped 16 percent to 320 from 381 a year ago and fell 8 percent from January. In the Santa Clarita Valley homes sales fell 22 percent to 119 from 153 a year ago. The median house price rose 16 percent to $439,500 from $379,000 a year earlier.”

The Signal. “A California appellate court has ruled in favor of developers planning to build 21,000 homes on the banks of the Santa Clara River and has tossed out a 2012 court decision opposed to the project. The first phase of Newhall Ranch was approved by Los Angeles County supervisors in February 2012 after exhaustive studies. The project calls for developing 422 lots on about 295 acres. That would produce 270 single-family homes, 744 condominiums and 430 apartments.”

The Manteca Bulletin. “Developers are betting Manteca is going to go boom. There are 14,310 housing units either making their way through the approval and entitlement process at city hall or have lots that are ready to build. The housing units on the table have the potential to add more than 40,000 residents to Manteca. The city’s population at the start of the year was estimated at 72,000 by the California Department of Finance.”

The Daily Press. “City Councilwoman Angela Valles stepped up her support this week of a proposed major shift to less-dense housing districts, urging planning commissioners and fellow council members not to ‘bow down to developers and the building industry.’”

“The proposal has been met with staunch resistance by several from within the development industry, including Building Industry Association Baldy View Chapter CEO Carlos Rodriguez. A key outspoken opponent to one of the most controversial components of the proposal — increasing minimum lot sizes for new single-family residential districts from 7,200 to 10,000 square feet — Rodriguez said on Thursday that it could be ‘the most significant proposed change in a quarter of a century in the city of Victorville.’”

“‘All eyes in Southern California are on the city of Victorville right now in the building communities,’ he said, referring to an interested 1,500 or so BIA member companies occupying the lower half of the state. ‘I feel so alone (on the dais),’ Valles said. ‘I have to remember it’s the people that voted me up there. … The BIA is not shy about going after politicians who stand up to them.’ Rodriguez declined to respond to that allegation.”

“Mayor Jim Cox said on Thursday that he didn’t want voting on the recommendation to drag on, but appeared less willing to throw full support behind a 10,000-square-foot minimum standard. Nonetheless, he said larger lot sizes, in general, were the way to go. ‘We have the small lots because of builders in the past (who said) ‘here is a way to build housing for your populous they can afford,’ Cox said. ‘This council does not agree with this. We don’t need to promote low-cost housing, we have an abundance of supply.’”

The Santa Cruz Sentinel. “Buyers are looking but there’s not much to look at. As of the first week in March, there were 455 listings in Santa Cruz County, the fewest in nine years, according to Gary Gangnes of Real Options Realty, who tracks the market. Home prices tend to drop in the winter, but the median, the mid-point of what sold, stayed in the $600,000s this year after reaching $674,444 in November. In February, the median price was $622,500, Gangnes said.”

“Glenn Fuller, a full-time appraiser since 1983, considers interest rates of 4.5 to 4.75 percent ‘a heck of a generous loan.’ Yet, move-up buyers are rare. ‘The availability of money turns out to be a bigger thing than I ever thought,’ Fuller said. ‘Most people are saying, ‘What’s my monthly payment?’ If they raise interest rates, no one will be able to qualify (for a loan).’”

“If he bought a home for $1.3 million, he said, his property taxes would jump from $3,000 a year to over $13,000 a year. ‘Once you get your property taxes set, it makes a lot more sense to remodel your house rather than buy,’ Fuller said.”

“Tom Brezsny, an agent with Sereno Group, recalled how in 2005, the inventory of homes for sale was low, but there was a robust move-up market because it was easy to borrow money. Homeowners would get an equity line of credit to fund a down payment, then shop around. Loans were easy to get, borrowers did not have document employment, assets, and income sources, and once they found the home they wanted, they could easily sell their old house, which was worth more because of rising prices.”

“Those easy money days are gone, homeowners haven’t forgotten how the market blew up and ‘they’re not willing to take the risk,’ Brezsny said.”

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Comment by Housing Analyst
2014-03-25 04:47:29

Rising inventory and collapsing demand for housing.

If you’re on the hook for a rapidly depreciating house, you best be looking to dump it while you still might be able to get something out of it. Limit your losses while you still can. At least in California.

Comment by Housing Analyst
2014-03-25 05:39:56

Contra Costa County, CA Housing Demand Crashes Through Crisis Era Floor; Now at 10+ Year Lows

Comment by Housing Analyst
Comment by Whac-A-Bubble™
2014-03-25 08:48:40

-23.2% Q-o-Q…Oof! Where are the all-cash Chinese buyers when you need them to purchase your overpriced crap shack?

Comment by Whac-A-Bubble™
2014-03-25 05:57:55

“The overflow from China’s economic high tide is transforming the housing markets of suburban Los Angeles. Affluent Chinese home buyers are driving prices past boom-era peaks, spawning a subset of property brokers and mortgage lenders that cater to their distinct needs. ‘People are getting money out of mainland China and sticking it here,’ said Mel Wong, president of the West San Gabriel Valley Assn. of Realtors.”

I wonder what will transpire when the high tsunami tide recedes.

Will people be surprised to learn that what goes up often goes back down?

Comment by Bill, just South of Irvine, CA
2014-03-25 06:30:41

I was wondering if there will be enough wealthy Chinese moving into California to take over the land the Mexicans claim is theres. Whites are too politically correct and weak to counteract the blatant claims by Mexicans on California. But the Chinese would stand up to them for sure. Asians can never be accused of racism.

Comment by cactus
2014-03-25 06:39:07

But the Chinese would stand up to them for sure.”

Yep you nailed it.

Comment by Ben Jones
2014-03-25 07:10:59

With banners on bamboo poles?

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Comment by Puggs
2014-03-25 11:05:15

LOL…nice segue from yesterdays “angry chinese” article.

Comment by MiddleCoaster
2014-03-25 07:49:19

Asians can never be accused of racism.

Why not? There is plenty of racism among various Asian ethnic groups.

Comment by Bill, just South of Irvine, CA
2014-03-25 19:11:12

True but I was trying to say it’s politically incorrect to accuse a non-white of being racist. You must be unAmerican!

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Comment by rms
2014-03-25 23:46:37

There is plenty of racism among various Asian ethnic groups.

+1 Indeed. Don’t forget their ranking of economic caste.

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Comment by snake charmer
2014-03-25 07:49:18

What will transpire? The reckless with political connections will, to the extent possible, be bailed out a public expense. What else is government for?

And we’ll have yet another sustained chorus of how no one could have seen this coming, an excuse which is designed to preserve the credibility of flatfooted leadership and profoundly failed institutions.

Comment by Whac-A-Bubble™
2014-03-25 06:00:25

“Tom Perkins, speaking to the Commonwealth Club last month, said plenty to stir controversy. But one of his observations was on the money: the amount of capital flooding into the hands of Bay Area venture capitalists and entrepreneurs is being driven by the Fed’s low-interest-rate policy that pushes everyone to take more risk to generate the returns they need, whether that’s grandma or the managers of grandma’s pension fund.”

Poor grandma. Her assets are going to get washed out to see with the Fed’s receding tsunami tide of liquidity.

Comment by LolaLOL
2014-03-25 06:46:03

Does Grandma own her home?

Comment by Ben Jones
2014-03-25 07:14:44

‘with Airbnb reportedly hitting a $10 billion valuation, or more than the price being paid to take Safeway private’

Something’s rotten in Denmark.

Comment by snake charmer
2014-03-25 07:56:16

What does that company even do? I also saw today that some company that makes a fad game played on cell phones is going to go public.

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Comment by Ben Jones
2014-03-25 08:34:18

‘What does that company even do?’

Believe it or not, they have a web site that helps FB’s pretend to be short term vacation landlords. It’s illegal in most places, but don’t mind that. They’re on the in-ter-net! And they have offices in, wait for it, San Francisco!

‘The Airbnb Headquarters in San Francisco may be the ultimate reflection of both the brand, and the tech world’s new way of working.’

‘The look is one part new Internet bubble, one part San Francisco–handmade, one part newly iconic brand, and one part design school chic.’

‘Airbnb…has recently been subpoenaed by the New York State Attorney General in an ongoing dispute over what the government is claiming are unpaid hotel taxes. More than connecting travelers to hosts, though, Airbnb is part of the new post-crash, post-recession, post-stability mini-economy, in which bartering has become standard practice and the share economy has replaced the former American dream of individualized ownership.’

Comment by Tarara Boomdea
Comment by Ben Jones
2014-03-25 09:53:32

‘There seems to be evidence Airbnb is already disrupting the traditional hotel industry. For starters, the company would be worth more than Wyndham Worldwide, valued at $9.3 billion, and Hyatt Hotels, at $8.4 billion. That’s without ever breaking ground on a hotel or shelling out for a hospitality staff to turn down beds or deliver room service. The chief executive at hotel consulting firm Lodging Advisors told the Wall Street Journal he estimates that the 416,000 Airbnb guests who visited New York for the 12 months ending in July 2013 cost the city’s hotel industry about one million room nights.’

‘Another company that has created a new market by letting people share excess resources is Uber, which has enabled qualified car drivers to be chauffeurs. Valued at $3.8 billion, Uber has faced taxi industry opposition ranging from cab-driver strikes in Paris and Milan to bans or caps in Miami and Seattle.’

‘Then there are sharing economy startups such as the peer-to-peer online marketplace Style Lend, which allows users to share and rent each other’s designer clothes. And 1.7 million people have joined car sharing services including Car2Go and Zipcar.’

Comment by oxide
2014-03-25 10:19:55

Agree, Ben. I’d much rather own Safeway.

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Comment by LolaLOL
2014-03-25 06:24:38

California and real estate fraud are like peanut butter and jelly.

Comment by Puggs
2014-03-25 10:05:14

And it drives around in black BMW’s and Luxury SUV’s.

Comment by rms
2014-03-26 00:00:50

“California and real estate fraud are like peanut butter and jelly.”

+1 A title held for decades by Florida.

Comment by Housing Analyst
2014-03-25 06:46:45

Ventura, CA Housing Prices Crater 19% YoY

Comment by Housing Analyst
2014-03-25 06:50:28

Thousand Oaks, CA Median House Price Falls $248,000, YoY

Can you imagine taking a $250k loss on a house in a single year? Oops.

Comment by Housing Analyst
2014-03-25 07:01:22

Encino, CA Housing Prices Collapse 25% YoY

Comment by Fang Nu
2014-03-25 07:02:25

Does anyone know if the chinese are buying up Mexico also?
If they are too unsophisticated to understand maintaining a home and taxes, they must be too unsophisticated to understand drug wars and cultural problems.

Comment by In Colorado
2014-03-25 08:47:02

The Mexican constitution has restrictions on foreign owner ship of property near the border or on the coasts. There is a loophole which allows foreigners to purchase said properties via a 30 year Trust (Fideicomiso) with a Mexican bank. At the the end of the Trust the property has to be sold to a Mexican national.

Comment by Fang Nu
2014-03-25 16:15:09

So… the mexican government had a better/any plan than;
United States

Comment by Housing Analyst
2014-03-25 07:15:02

Agoura Hills, CA Median List Price Collapses 45% YoY

Comment by Housing Analyst
2014-03-25 07:21:31

The china effect is fading…… with dramatic impact.

Comment by Beer and Cigar Guy
2014-03-25 13:08:24

But not in Vancouver or Toronto, right? Because ALL of the filthy rich Chinese and Brazilians (funny, but you don’t hear that nationality invoked in the NAR incantations any more) want to live in… Canada. They are not making any more Canada, ya’ know…

Comment by Housing Analyst
2014-03-25 15:14:32

Where’ve you been? It’s been hilarious around here lately. LolaLoL drives the humor, a few of us torture the hiding lying realtors. Grab a donkey and enjoy the ride.

Comment by Housing Analyst
2014-03-25 07:26:19

New Housing Sales Crater

With 25 million excess empty and defaulted houses, building fewer of them isn’t a bad thing.

Comment by Captain Credit Crunch
2014-03-25 07:28:34

The best quote of the month: ‘The availability of money turns out to be a bigger thing than I ever thought,’ Fuller said.

Comment by Ben Jones
2014-03-25 07:36:04

‘One simply cannot compare today’s prices for homes with prices in the past to determine whether or not a price bubble is developing. That is why measures, including price-to-income and price-to-rent, are key to determining housing valuations.’

‘Of the 100 largest metropolitan markets in the United States, 19 or nearly one-fifth are overvalued. Even more critically, three of the nation’s five most overvalued housing markets are in southern California and eight out of eleven of California’s large metropolitan markets are overvalued.’

‘Trulia concludes that national housing prices are roughly in line with fundamentals, however, it is important to note that the same cannot be said for most of California’s major housing markets where prices are outstripping people’s ability to pay for a home. The median price paid for a house in California in February 2014 was $355,000, up 22.8 percent on a year-over-year basis and up 60.6 percent from the post-peak trough of $221,000 in April 2009 but still below the peak of $484,000 in the spring of 2007.’

‘The problem with local overvaluation in California is exemplified in the case of Los Angeles where a median house is now valued at 7.7 times the median household income in that market as shown on this graph’

‘At this point, we can only guess how much of a negative impact a real estate market correction on the west coast could have on the nation’s economy. With nearly 10 percent of America’s detached homes located in California, the impact could be substantial.’

Comment by Housing Analyst
2014-03-25 07:39:49

Good thing we have National Assoc of Stealtors affiliate Trulia to establish reality for us.

In the meantime, new housing units continue to be built profitably in the lower 48 states for $55/square foot.

Comment by Furlow
2014-03-25 23:48:44

Dude, we all agree with you that prices are going to come down. But please STFU about being able to build a HOUSE for $55/sq. ft. Unless you’re referring to a mobile home as a “housing unit.”

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Comment by Housing Analyst
2014-03-26 08:44:02

Tsk tsk…. Don’t like that reality eh realtor? I’m sure it conflicts with every word you use to screw the public.

Comment by Ben Jones
2014-03-25 07:56:43

‘Placentia, a Los Angeles suburb with median home prices 34 percent above the state level, is struggling for fiscal survival amid a California renaissance led by Governor Jerry Brown. Even with the lowest jobless rate since 2008 and Brown predicting the biggest budget surplus in more than a decade, California is at risk of logging its first local-government bankruptcies in almost two years. The disparity highlights the hit-or-miss nature of the recovery, said Michael Coleman, fiscal adviser to the League of California Cities.’

“For higher-quality issuers, things are stable or improving,” said Michael Johnson, who helps oversee $8 billion as managing director of Gurtin Fixed Income Management LLC in Solana Beach, California. “For those that are lower quality or were on the brink during the recession, they’re still on the brink or worse.”

‘Suburbs such as Placentia, Upland and Adelanto reap none of the income-tax bounty that provides two-thirds of revenue at the state level. The communities rely on real-estate levies, capped at 1 percent of the most recent sale price under limits known as Proposition 13, and sales taxes — if they have the businesses to generate them.’

‘In Placentia, which bills itself as a “pleasant place to live,” two-thirds of its 52,000 residents own their homes, with a median value of $515,400, compared with about $384,000 statewide. Yet the community 30 miles (50 kilometers) southeast of Los Angeles faces deficits for at least the next five years, a consultant concluded in December.’

‘Upland’s city manager warned of bankruptcy in October, and Adelanto declared a fiscal emergency in June. Such a declaration is a prerequisite under state law before seeking court protection.’

‘California is one of 28 states with no tools to help cities in fiscal distress, Moody’s Investors Service said in a September report. “The serious issue is that people in communities and organized labor think the problem has passed and it has not,” said Coleman from the League of California Cities, referring to trends that may push cities into bankruptcy. “It’s actually getting worse.”

Comment by Ben Jones
2014-03-25 08:07:13

‘California, with its high cost of living and health care, leads the nation in the percentage of older adults living in poverty, according to a 2013 report by the Kaiser Family Foundation. Twenty percent of California adults over age 65 live below the poverty threshold of about $16,000 annually, when taking into account the higher cost of housing and health care.’

‘Allen Stross of Berkeley started working at age 13. He’s been a delivery boy, a sign painter, a Navy sailor and a photographer for the Detroit Free Press. Now, at age 90, he and his wife live on about $21,000 a year. After they pay for rent and medications, they’re left with just $416 a month.’

“No restaurants. No movies. No new clothes. We look for a lot of freebies,” he said.’

‘Diana Davis, 60, worked in canneries for more than 40 years, retiring only when arthritis made physical labor impossible. Now she lives in a studio at a West Oakland senior complex, for which she pays $443 per month. Her Social Security income is $800 a month. After paying her phone and PG&E bills, she has little left for food, toiletries and laundry. She eats for free at St. Mary’s Center in Oakland. If AC Transit didn’t offer senior discounts, she couldn’t afford to visit her daughter and grandchildren in Hayward.’

“I live on the generosity of the people of the state of California,” Davis said. “If they stop giving me money, I’ll have nothing. … Yes, I worry. I worry about what will happen to me if my rent goes up, or if I can’t take care of myself. I take antidepressants because I need them. Otherwise I’d think about killing myself.”

Comment by Housing Analyst
2014-03-25 09:12:45

California Most Impoverish State In The US

(geography adjusted)

Comment by Doom
2014-03-26 02:00:15

You wouldn’t know it, just look at all the expensive cars you see day in day out?

You must think Cal. Is a cross between Okla and Ark, tell me Housing Analyst, which states above would you rather wake up in?

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Comment by Housing Analyst
2014-03-26 02:31:55

Rapidly depreciating cars at a grossly inflated price using borrowed money.

What’s the default rate on auto loans in CA? 50%? 60%?

Comment by Ben Jones
2014-03-25 08:15:39

‘North County real estate professionals discussed the housing market at a recent roundtable discussion hosted by The Daily Transcript at the North San Diego County Association of Realtors’ offices. About 21 percent of San Diego County’s detached homes and 45 percent of condominiums are investor-owned, said Alan Nevin, director of economic and market research at Xpera Group.’

‘For many first-time homebuyers, their only shot in the county is to buy a condo, but Fannie Mae and Freddie Mac guidelines “basically almost force condo projects to become 100 percent investors,” Nevin said.’

‘Cristine Clark, Realtor at Realty Executives, said investors are still a huge part of the marketplace. “They feel the market is going to be strong through 2015, so they’re looking for inventory to flip,” Clark said.’

‘Chris Hasvold, broker at Coldwell Banker Village Properties, stood out in the group as an agent who focuses on Fallbrook. Well-priced inventory is gone in a week, he said, but there’s a three-year supply of properties of more than $1 million. He said his inventory is up 40 percent year over year and sales have been holding firm.’

‘Spring has sprung, but the housing market might not see a significant shift from cold to hot. “I don’t think in California we even notice those cycles,” Clark said.’

‘Two-thirds of households in San Diego don’t have anyone younger than 18, meaning the school schedule won’t affect homebuying habits, Nevin said. About 28 percent of those living in North County can afford a median-priced home, Brown said.’

‘Nevin said he tends to ignore the affordability statistic because it’s based on the whole population and homebuyers are only a small segment.’

Comment by Whac-A-Bubble™
2014-03-25 08:56:04

The race is on by the investor-owner of the home next door to fix it up to sell before the next leg down in the real estate market. Time will tell how this turns out, but given the news that the economies in both China and the U.S. are slowing down, he’d damn well better hurry!

Comment by Whac-A-Bubble™
2014-03-25 08:58:30

Fear of slowdown in US and eurozone as China’s factories cut output
Manufacturing activity falls to lowest level in eight months as Beijing’s economic reforms start to bite
Phillip Inman Economics correspondent
The Guardian, Monday 24 March 2014 17.29 EDT

Factory output fell in the first three months of the year. China’s premier, Li Keqiang, told lenders to China’s private-sector factories they should expect debt defaults. Photograph: AFP/Getty Images

China’s factories cut their output in the first three months of the year, according to a survey of the manufacturing sector that has sparked warnings of slower growth in the US and the eurozone.

Comment by Whac-A-Bubble™
2014-03-25 09:00:09

Asian Stocks Fall After U.S. Manufacturing Index Drops
By Yoshiaki Nohara
Mar 25, 2014 4:08 AM PT

The MSCI Asia Pacific Index fell after the biggest rally in a month yesterday as data showed slowing U.S. factory activity and investors weighed prospects of recession in Russia.

The MSCI Asia Pacific Index fell less than 0.1 percent to 134.30 as of 7:32 p.m. in Tokyo after rising as much as 0.2 percent. The gauge rose 1.2 percent yesterday, the steepest advance since Feb. 21. Banks warned Russia’s economy is at risk as the world’s leading industrial powers threaten further sanctions to deter it from invading other parts of Ukraine after the annexation of Crimea.

The U.S. factory data “is a little bit weaker, but nothing changed much,” said Donald Williams, Sydney-based chief investment officer who helps manage about $1.6 billion at Platypus Asset Management Ltd. in Sydney. “It’s a grinding recovery and some of the data are better than expected and some are worse.”

Comment by Puggs
2014-03-25 10:03:44

Silly infestors…2008 never ended.

Comment by a guy from Seattle
2014-03-25 09:10:39

Houses still fly in Seattle… I am not sure whether it is investors or a momentum of the last year, but I don’t really see ant changes. The rents are also going up…

Comment by Housing Analyst
2014-03-25 09:27:06

Seattle, WA Housing Prices Dive 10% YoY

Comment by Ben Jones
2014-03-25 09:49:53

‘Hundreds of people rushed to withdraw money from a branch of a small Chinese bank after rumors spread about its solvency, reflecting growing anxiety among investors as regulators signal greater tolerance for credit defaults.’

“It’s true that these rumors exist, but actually (the bank going bankrupt) is impossible. It’s a completely different situation from the problem with the cooperatives,” said Zhang Chaoyang, an official at the propaganda department of the Communist Party committee in Tinghu district, where the bank branch is located.’

‘Zhang was referring to an incident that rattled depositors in Yancheng in January, when some local rural cooperatives — which are not subject to the supervision of the bank regulator — ran out of cash and locked their doors. Local officials say several co-op bosses fled after committing fraud.’

‘When contacted by Reuters by phone on Tuesday, an official at the Jiangsu Sheyang Rural Commercial Bank branch hung up, saying she was busy.’

Comment by AmazingRuss
2014-03-25 15:07:07

“Local officials say several co-op bosses fled after committing fraud”

… and are now living in million dollar tract houses in San Jose.

Comment by inchbyinch
2014-03-25 22:17:39

Anything coming out of the Southland Regional Association Of Realtors (Van Nuys, So Ca) is suspicious. That place is a propaganda goldmine. I was once a member.

Comment by Housing Analyst
2014-03-26 08:41:27

That’s true of any realturd outfit.

Comment by john
2014-03-26 19:29:05

when do you guys think the housing bubble will pop. Just curious. Last time I thought it was going to pop in 05 but still lasted longer.

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