April 29, 2014

It’s Never Going To End

The Boston Globe reports on Massachusetts. “The success of shows like ‘Flipping Boston’ has been one factor contributing to the boom in house-flipping since the economic downturn began in 2008. Kerry Sullivan, a Wellesley-based real estate agent, and Lenny Rowe, a member South Shore Association of Realtors, haven’t seen much flipping activity at all. Peter Souhleris, when not on TV, runs Peabody-based CityLight Homes, speculated that his and other flipping TV shows could be creating more competition. ‘Are we shooting ourselves in the foot? I don’t care. We know the market so [well]. . . I think there is so much out there that it’s never going to end,’ he said.”

The Philadelphia Inquirer in Pennsylvania. “The city’s for-sale housing market is experiencing fits and starts on a seemingly unending road to recovery. The luxury rental market, on the other hand, remains hot. Economist Kevin Gillen, who tracks real estate in the region, said, ‘I can’t help but have the same feeling about the rental market today that I had about the housing market back in 2005. I don’t know exactly when the market will rebalance itself between renters and owners,’ Gillen said, ‘but I do know that if something can’t go on indefinitely, it won’t.’”

Foster in New Hampshire. “A large part of the population is still choosing to rent rather than buy, even though rent can cost up to 30 percent of their income. ‘Over the past 5-10 years, we’ve seen a decline in the number of homeowners in the age group from 25-34. What’s happening is that particular age group is putting off home purchase,’ Dan Smith, the director of Housing Research at the New Hampshire Housing Finance Authority, said.”

“Pat Beaver, who has been selling homes in Strafford County area for more than 15 years, agrees the economy has had a negative effect on the number of young homeowners. Beaver explained that many people refuse to sell unless they can get back what they owe on the house. ‘A lot of people put their houses on the market expecting to cover what they owe against them. During 2003, 2004 and 2008, a lot of those homes were overvalued. A home could be worth $200,000 on paper and actually be worth only $175,000. If you have an overinflated price to begin with, you’re not going to get it back unless the market goes up again and that’s not happening.’”

Press of Atlantic City in New Jersey. “Home sales dropped nationally and in South Jersey in March during the early portion of the spring buying season, according to data from national and state Realtor associations. Some of the inventory includes distressed properties that may be in inferior condition and unappealing to house hunters discouraged by lengthy and uncertain settlement periods.”

“In the first quarter of 2014, foreclosure activity in Atlantic, Cape May, Cumberland and Ocean counties increased faster than the state average of 66 percent from the year before, according to RealtyTrac. In Atlantic County, year-over-year filings — including pre-foreclosures, notices and banks taking ownership of properties — were up 116 percent in the first quarter; 127 percent in Cumberland; 71 percent in Ocean; and 90 percent in Cape May County, RealtyTrac said.”

“‘The only downside we’re having right now is there’s not a lot of quality inventory — a great percentage of the inventory is still distressed sales,’ said Brenda Lawn, of Berkshire Hathaway HomeServices Fox & Roach in Northfield.”

The Lohud Journal News in New York. “In Westchester, foreclosure judgments this first quarter nearly tripled to 180 from 62 in the first quarter of 2013. Rockland County had 46 judgments in the quarter, compared with 18 in first-quarter 2013. ‘The number of foreclosure judgments in the first quarter of 2014 is almost three times the number from the first quarter of 2013,’ Westchester County Clerk Timothy C. Idoni said. ‘But rather than a rash of all new filings, we are seeing a cleanup of situations where homeowners have been in trouble for a long time.’”

“James Passabet Jr., a 27-year mortgage loan professional now with PNC Bank, says he isn’t shocked by a flurry of judgments this first quarter. ‘A lot of these are coming home to roost. It is a function of the system saying, ‘Enough is enough.’ I have known people where it has taken three to four years with reviews, modifications and more paperwork,’ Passabet said. ‘It has finally come to the point where the court is asking if borrowers want to keep the property or walk away.’”

“Putnam had 81 judgments distributed among its six towns, said Michael Bartolotti, first deputy county clerk. The numbers range from 19 in Carmel and 16 in Southeast to four in Philipstown. Rockland had 84 judgments for 2013, with no town immune. An analysis shows there were 26 in Ramapo, 17 in Haverstraw and five in Stony Point, for example. ‘Foreclosures are in every community and (it) causes a certain amount of shell shock in buyers,’ said Bartolotti. ‘People looking to buy are concerned when they see these numbers, and they don’t want this to happen to them.’”

The New York Post. “A Queens man convicted of defrauding distressed homeowners in a mortgage scam is seeing his own Howard Beach home overrun by squatters while he’s sitting in the clink. Neighbors of the two-story house worth $562,000 on 90th Street say the brazen interlopers have been bounced and arrested — but they keep coming back. ‘Who are they, and where did they come from?’ fumed one resident, adding that one squatter laughed when police cuffed him last week. ‘When the cops came, he had no shame.’”

“The house’s owner, Isaak Khafizov, 27, was sentenced to nine years in federal prison last month for bilking people out of hundreds of thousands of dollars after promising to get their mortgages modified and lower their monthly payments. Vicki Tepper, a victim of the scheme, said that with his new home woes, Khafizov was getting ‘what he deserves.’ ‘He messed with a bunch of people’s lives,’ said Tepper, who owns a pet shop in New Jersey. ‘He took our money, and he tricked us into believing things that weren’t true.’”

“Assemblyman Phillip Goldfeder said a bank has repossessed the home and plans to take legal action to remove the squatters. ‘The most ironic part is the guy went to prison for mortgage fraud, and now his home has been a hub for criminal activity,’ Goldfeder told The Post.”




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85 Comments »

Comment by Ben Jones
2014-04-29 05:24:59

‘With huge numbers of would-be buyers, Boston needs more condos right now. But it’s going to be a while before there’s a big uptick in supply.’

‘The average price for a downtown condo is now running at almost $1 million, as an inventory shortage is driving up prices. Millennium Place sold out its 256 units in record time and some are being quickly flipped for huge profits.’

‘At the same time, thousands of luxury apartments have hit the Hub market because lenders started backing rental complexes, but now some are fearing an apartment glut.’

“It always takes a while for the supply to catch up because condo financing lags the market,” said Dom Lange, co-owner of Broadway Village Real Estate.’

Comment by Blue Skye
2014-04-29 05:46:37

I believe you’ve told us many times that Condo flipping is the final stage of a housing mania.

Comment by Puggs
2014-04-29 11:30:00

No, I think it’s when they start converting cardboard apartments to condos.

 
 
 
Comment by Ben Jones
2014-04-29 05:30:18

‘A recent study by Community Housing Innovations Inc. claims young talent is becoming increasingly rare in towns like Southampton and East Hampton due to high costs of living as well as a lack of jobs and affordable housing and rentals.’

‘Overall, Long Island lost 12 percent of its 25- to 34-year-olds between 2000 and 2010, according to the nonprofit housing agency. Housing Innovations found that higher income municipalities like Westhampton, which lost 57 percent of 25- to 34 year-olds, have lost far more young adults than lower income municipalities such as Patchogue, which registered a 4-percent gain.’

“A big issue we hear from chamber members is that it’s hard for them to find talented individuals to work for them—even part-time high school students to get started working for the local businesses, maybe go to school and come back and be interested in working there later on,” Mr. Schlendorf said. “That, unfortunately, seems to be diminishing because a lot of young ones are not coming back after school is over.”

‘
Mr. Schlendorf said he believes high real estate costs, along with stigmas attached to the idea of workforce, or affordable, housing, are to blame for Long Island’s dwindling millennial population.’

‘Maine had the smallest rate of growth in real personal income among 49 states from 2011 to 2012, according to the U.S. Bureau of Economic Analysis. That measure, released by the Bureau of Economic Analysis on a state-by-state basis for the first time, accounts for regional differences in prices paid by consumers for goods and services. The data is adjusted for inflation.’

“The data would basically confirm a lot of Maine workers’ experience over this time period. Maine saw a relatively fast increase in the cost of living, especially in the goods people buy,” said Joel Johnson, a policy analyst at the Maine Center for Economic Policy.’

‘Johnson said Maine suffered from a surge in rents and the price of housing, as well as oil prices that rose during the recession.’

Comment by Blue Skye
2014-04-29 05:55:45

I went to HS in the ’60s in a little town near Summit NJ, which at the time boasted its residents had the highest income tax bracket in the country. 90% of my classmates moved away after finishing school. 90% of the parents moved away upon retirement. Housing was too expensive.

Comment by In Colorado
2014-04-29 08:31:09

So, since everyone moved away, is it cheap now?

Comment by Blue Skye
2014-04-29 10:00:50

Not at all.

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Comment by MacBeth
2014-04-29 06:58:31

LMAO!

All these middle-aged, deep-pocketed wannabes over the years, moving to “where the action is” and “for the lifestyle”, are finding themselves increasingly stuck among a bunch of old people for whom action of any kind is increasingly difficult.

Poetic justice.

Comment by oxide
2014-04-29 10:18:28

I don’t understand this post. Who are the middle-aged people and where is this lifestyle? They moved to Maine for the action and now they’re stuck with retirees who can’t afford to sell out to FL?

2014-05-03 21:37:18

Have you ever even been to Maine?

I have criss-crossed Maine many a time.

Maine is:

(a) legendarily beautiful. It is easily, quite easily, a competitor to the gorgeous beauty of the Pacific Coast.

and

(b) insanely poor. It is easily, quite easily, the Mississippi-equivalent of the East Coast.

That houses in rural Maine are fetching these numbers is beyond absurd.

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Comment by Ben Jones
2014-04-29 05:33:02

‘In 2013, Eastern Connecticut posted its highest housing sales volume since 2009, and real estate officials are optimistic that the upward trend will continue.’

“My view for this year is I believe the number of sales will be an improvement over last year (2013) but still won’t be back to normal levels,” said John Bolduc, CEO of the Franklin-based Eastern Connecticut Association of Realtors. “I also think the median sale price is going to stay flat at best. There’s still quite a few foreclosures and (lender-owned) properties out there.”

Comment by Housing Analyst
2014-04-29 06:06:41

“I also think the median sale price is going to stay flat at best. ”

Yes Johnny Bolduc…… You’re probably right but everyone is going get a whole lot more house for the money this year…. like they have since 2007 and continue to do so over the next few decades.

Considering the Bolduc’s are one of a number of extended families that has cemented itself in rural areas from the tip of Maine west to the NY/Vt border and south to NewHaven, CT since the 1600’s, I’m sure he’s got good reason to say what he did.

Comment by MacBeth
2014-04-29 07:01:32

Never heard of him. Or the family.

Comment by Housing Analyst
2014-04-29 07:18:00

french canadian lumberjacks.

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Comment by MacBeth
2014-04-29 07:46:07

It’s interesting, HA.

On the one hand, I don’t give a rip about real estate in New England, or about the Chinese in California.

I live far away from both, so I don’t care. The Chinese and their antics on the West Coast are not something I focus on. The Chinese are not a bellwether of housing in my area and I don’t know of any Chinese moving in. I didn’t care about Hurricane Sandy’s effect on New York City, either. Non-news.

On the other hand, I recognize that the most trustworthy information out there focuses on the local and regional, from local and regional media.

The contrast of content between California media and Indianapolis media, in housing alone, is marked.

I smell a sea change coming in 2-3 years that favors local and regional over national. Not just in media and housing, but in philosophy and government.

 
Comment by Housing Analyst
2014-04-29 08:18:49

The problem with that is that opens up the discussion to the grandest housing lie of them all…. “location”. And as you know, the expression “Location location location” and its’ syphilitic cousin “all real estate is local”. And we know these marketing expressions are merely an attempt to get the target to pay far more than the property is worth.

 
Comment by oxide
2014-04-29 10:45:26

“I smell wish for a sea change coming in 2-3 years that favors local and regional over national.”

Fixt for you. But I don’t know how shifting to local or regional would work, unless there is a clear political secession. One could argue that technology has made the Town of 1795 into the State of 2013. And economy of scale works for government just as it does for private business.

 
 
 
 
 
Comment by Ben Jones
2014-04-29 05:36:18

‘Cherry Hill-based TD Bank, which has 45 Bergen County branches, is making it easier for first-time home buyers to qualify for financing by offering them loans that require little money down and no mortgage insurance, a company official said.’

‘The changes made by TD, as well as by some other lenders, are the latest sign that a credit crunch that’s frustrated many potential buyers, especially first-timers, may soon ease up.’

‘Last week, TD dropped the down payment requirement for its “Right Step” first-time home buyer program to 3 percent of the home’s value from 5 percent, and it stopped requiring mortgage insurance – which is paid by the borrower but protects the lender from default risk and can add more than $100 to a monthly payment.’

‘Some other lenders are easing off strict loan requirements for prospective home buyers. San Francisco-based Wells Fargo, which has more than 300 branches in New Jersey, has since the beginning of the year returned to making loans to those with credit scores as low as 600, a market that used to be commonly described as subprime. A spokeswoman said it’s too soon to say how well the program is working.’

‘A number of wholesale lenders, including Carrington Mortgage Services LLC in California, also have recently lowered credit score requirements.’

‘Companies are easing loan-qualifying criteria as the post-financial crisis regulatory landscape has become more clear to lenders, who are reeling from a steep drop in refinancing and are eager to drum up new business, industry experts say.’

‘Mortgage companies are turning once again to customers with modest savings and tainted credit histories, said Don Frommeyer, a mortgage originator in Indianapolis, who is president of the Association of Mortgage Professionals. “Everybody needs volume,” Frommeyer said.’

Comment by MacBeth
2014-04-29 07:07:16

‘Mortgage companies are turning once again to customers with modest savings and tainted credit histories, said Don Frommeyer, a mortgage originator in Indianapolis, who is president of the Association of Mortgage Professionals. “Everybody needs volume,” Frommeyer said.’

Interesting statement.

According to this, buyers have all the power, not the sellers or the mortgage companies.

As it always has been. Only problem is the buyers don’t realize it.

Comment by Mr. Banker
2014-04-29 07:20:53

“According to this, buyers have all the power, not the sellers or the mortgage companies.”

Yep.

“As it always has been. Only problem is the buyers don’t realize it.”

Yep again.

Comment by Mr. Banker
2014-04-29 07:25:12

Milton Freidman used to ask his students: “Did you vote today?”

The answers invariably came back as: “No, there’s no election.”

“Well, did any of you buy anything today?”

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Comment by MacBeth
2014-04-29 07:35:23

Funny, isn’t it?

That the very same people who admonish the banks are the very same people who have an unquenchable need to buy housing in expensive cities.

They readily cede their power to sellers and banks because they so badly want their “I have arrived” lifestyle.

And confirmation of it.

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Comment by Mr. Banker
2014-04-29 07:42:14

“Funny, isn’t it?”

Hilarious. And extremely profitable.

 
Comment by Mr. Banker
2014-04-29 08:00:14

“They readily cede their power to sellers and banks because they so badly want their “I have arrived” lifestyle.”

Pure beauty. Others - marketers - spend tons of money convincing the convincible that the just gotta have that “I have arrived” lifestyle (as you put it) and then the convinced are brought to me whereby I am allowed to take a cut of the transaction.

You can’t lose with the stuff I use.

 
Comment by MacBeth
2014-04-29 08:34:44

People are dumb. And horrendously insecure. Weak in the ego.

Combine them, Mr. Banker, and you win.

 
 
 
 
 
Comment by Housing Analyst
2014-04-29 05:38:54

Seattle, WA Housing Prices Slide Lower On Rising Inventory

http://www.movoto.com/seattle-wa/market-trends/

Comment by Jingle Male
2014-04-29 07:48:48

HA, more ridiculous stats today? Home prices in Seattle went from an average of $285/SF last year to $297/SF this year.

You clearly don’t know up from down. If only you could live up to your name and Analyze something. HA!

Comment by Housing Analyst
2014-04-29 08:06:42

$440k a year ago
$425k today

Why buy when prices are falling?

Comment by Jingle Male
2014-04-29 08:41:15

It is a smaller house you knucklehead. Analyze it.

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Comment by Jingle Male
2014-04-29 08:42:25

Yes, keep saying that HA. You’ve been saying it for several years…………just as housing has increased in value by 30%. Just keep renting…that seems to be what you’re good at doing.

 
Comment by Housing Analyst
2014-04-29 08:43:22

Focus on the data. Don’t take it personal.

 
Comment by Jingle Male
2014-04-29 12:36:08

Here is an analysis from someone who actually does analysis….

“In a way this reminds me of 1994/1995. 30 year fixed mortgage rates increased from around 7% in 1993 to over 9% at the end of 1994 (the Fed had raised the Fed Funds rate from 3% to 5 1/2% during that period). A number of analysts thought the economy was going into recession based on slightly higher taxes, a higher Fed Funds rate - and they were pointing to the slight decline in new home sales as an indicator. I disagreed.

I was one of the most optimistic people around at the end of 1994 and I was arguing that new home sales had bottomed in 1991, sales were still very low, housing was a slow moving market, and the demographics supported a higher sales rate over the next several years. New home sales were only 666 thousand in 1993, 670 thousand in 1994, and 667 thousand in 1995 - basically flat for a few years - and then increased to over 800 thousand in 1997.”

 
Comment by Housing Analyst
2014-04-29 15:49:31

No no J._Fraud…. stay on topic.

$440k in 2013
$425k 2014

 
Comment by FED Up
2014-04-29 22:34:57

Increased in 1997..

All due to the tech boom that went bust in 2000. And what happened after that? Oh that’s right, the Fed started on a policy that created the housing bubble. And then, unbelievably, the Fed did it again in 2008 and is still doing it today.

 
Comment by Jingle Male
2014-04-30 03:02:23

So…FED up, it appears by your name that you have something important to say.

The FED policy is real and it supports the economy going up? Or perhaps you resent the FED and hold their policy in contempt?

Either way, their policy is real. My father always suggested it is counter productive to fight “city hall”, so I choose to accept the FED policy and work within its framework.

 
 
 
 
 
Comment by Housing Analyst
Comment by Jingle Male
2014-04-29 07:51:40

Demand “craters”. Is that why home values are up from $259,000 to $272,000 year over year?

You keep saying the market is tanking, but when I analyze the stats you post, it is clear you don’t know anything.

Comment by Housing Analyst
2014-04-29 08:03:00

Demand J_Fraud… Demand!

 
 
 
Comment by Housing Analyst
2014-04-29 05:46:21

Kirkland, WA Housing Prices Crumble 6%; Inventory Up 30%

http://www.movoto.com/kirkland-wa/market-trends/

 
Comment by Housing Analyst
2014-04-29 05:49:43

Corvallis, OR Housing Prices Crater 25% YoY; Inventory Up

http://www.movoto.com/corvallis-or/market-trends/

Comment by Jingle Male
2014-04-29 07:54:26

Demand “craters”? Is that why home values are up from $137/SF to $159 year over year?

You keep saying the market is tanking, but when I analyze the stats you post, it is clear you don’t know anything.

Housing Fraudster with no analytical skill.

Comment by Housing Analyst
2014-04-29 07:57:14

Dump that shack while you can still save some skin J._Fraud.

Comment by Jingle Male
2014-04-30 03:03:55

The cash flow is the best thing about all my real estate holdings. Why would I want to stop the cash flow?

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Comment by Housing Analyst
2014-04-30 07:01:05

You’ve yet to substantiate any of your claims…. including your claim of being a “general contractor”. Start there.

 
 
 
 
 
Comment by Housing Analyst
2014-04-29 05:54:24

Tillamook, OR Housing Prices Plunge 13% YoY

http://www.movoto.com/tillamook-or/market-trends/

Comment by Jingle Male
2014-04-29 07:56:43

Prices “plunge”? Is that why home values are up from $127/SF to $132 year over year? How is that plunging?

You keep saying the market is tanking, but when I analyze the stats you post, it is clear you don’t know anything.

Housing Fraudster with no analytical skill. The only thing plunging is your grip on reality as it goes down the drain.

Comment by Housing Analyst
2014-04-29 07:59:09

$299k a year ago-
$199k Today-

What’s not to like about falling housing prices J._Fraud?

Comment by Housing Analyst
2014-04-29 08:33:40

Correction:

$229 a year ago
$199k today

Still it’s a savings of $30k. Who can afford to lose that kind of money?

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Comment by Jingle Male
2014-04-30 03:06:40

You are silly HA. Prices for the same size home are up 2% YoY.

 
Comment by Housing Analyst
2014-04-30 06:59:06

Of course a newer house is going to cost more J._Fraud.

 
 
 
 
 
Comment by Housing Analyst
2014-04-29 06:16:18

Ventura, CA Housing Prices Collapse 34% YoY As Inventory Skyrockets 83%

http://www.movoto.com/ventura-ca/market-trends/

Comment by Jingle Male
2014-04-29 07:59:17

Prices “Collapse”? Is that why home values are up from $290/SF to $417/SF year over year? How is that collapsing?

You keep saying the market is collapsing, but when I analyze the stats you post, it is clear you don’t know anything.

Housing Fraudster with no analytical skill. The only thing collapsing is your credibility with your ridiculous posts.

Comment by Housing Analyst
2014-04-29 08:11:04

$682k a year ago
$450k today

That’s a helluva price decline. Watching housing prices fall can be quite a savings. That’s what you should do.

Comment by Jingle Male
2014-04-30 03:10:43

Can you read? You are comparing a 2,348 SF house to a 1,259 SF house.

HA, this is why I have to comment on your posts. You provide misleading evidence to HBB readers. Analyze HA, Analyze. Just like your name says.

The price in $/SF is up YoY.

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Comment by Housing Analyst
2014-04-30 06:57:35

$682k a year ago
$450k today

That’s a 34% decline. *THINK* J._Fraud.

 
 
 
 
 
Comment by Ben Jones
2014-04-29 06:16:24

‘The New York attorney general says 9 percent of New York’s residential mortgages, representing nearly 225,000 families, are in distress, meaning at least 90 days delinquent. More than 42,000 are a year behind.

says funding for a network of counselors and legal help for troubled homeowners will increase $10 million to $30 million for the year.

‘New York’s foreclosure rate remains 5.8 percent, nearly three times the national average, following the 2008 burst in the U.S. housing bubble. One reason is New York’s foreclosure process - averaging 820 days - is nearly three times longer than the national average, partly due to homeowner rights to court-supervised mediation.’

‘For many, buying a house is the American dream. But these days, snagging a suitable home has turned into an all-out war in some places, with victory often going to the highest bidder.’

‘This combination has stirred up a nightmare scenario for many homebuyers and a dream come true for sellers.’

“It’s a tough market to be buying in,” said New York real estate guru Barbara Corcoran. “Every buyer’s uncomfortable. If you’re an aggressive buyer, it’s the kind of market that brings the fangs out. If you’re an insecure buyer, it’s the kind of market that’s going to scare the crap out of you.”

Comment by Housing Analyst
2014-04-29 06:20:45

The number of defaulted DebtDonkeys still living on the premise in NY is surpassed on by California.

 
Comment by MacBeth
2014-04-29 07:04:20

“It’s a tough market to be buying in,” said New York real estate guru Barbara Corcoran. “Every buyer’s uncomfortable. If you’re an aggressive buyer, it’s the kind of market that brings the fangs out. If you’re an insecure buyer, it’s the kind of market that’s going to scare the crap out of you.”

Whatever.

Comment by Tarara Boomdea
2014-04-29 10:27:48

Old video in which elitist media whore realtor Barbara Corcoran was irritated because Ron Paul was selling his “regular” house FSBO (at 1:25)

http://www.today.com/video/today/45984563#45984563

 
 
Comment by Rental Watch
2014-04-29 12:01:05

Corelogic came out with their Foreclosure Report today for March. According to that report, NY has 4.6% of their mortgages in the foreclosure process, only surpassed by FL at 5.8%, and NJ at 6.0%.

Serious delinquency paints the same picture:

NY: 7.7%
FL: 10.3%
NJ: 9.9%

For perspective, the national average was 1.8% for foreclosure inventory and 4.7% for serious delinquency.

Comment by Housing Analyst
2014-04-29 15:48:02

Don’t forget CA.

Comment by Jingle Male
2014-04-30 03:13:56

No one can forget California. HA, HA!

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Comment by Ben Jones
2014-04-29 06:20:10

‘Ask the Realtor’ is a weekly column from the 3,000+ member RealSource Association of Realtors.’

‘Q: My parents have a home they can no longer afford. How long will it take to foreclose on their home? Timothy C. - Totowa’

‘A: Timothy, before your parents file for foreclosure, please consider first meeting with a Realtor, tax professional and or an attorney. Foreclosure brings with it any number of issues that, in this case, can impact your parents’ lives. That said; in New Jersey, it takes about 250 days or more to effectuate an uncontested foreclosure. With New Jersey being a statutory right of redemption state, your parents can actually reclaim their property by making payment in full of the sum of the unpaid loan plus costs. They will have a time limit of only 10 days to undertake such redemption after the foreclosure sale. Lastly, if your parents’ home is sold for less than the loan amount which the underlying mortgage secures, a deficiency judgment may be obtained.’

Comment by In Colorado
2014-04-29 08:34:34

“before your parents file for foreclosure”?

Uh, doesn’t the bank do that?

Comment by oxide
2014-04-29 19:24:31

No no, the best part is that the parents have 10 days after “they” file foreclosure to “make payment in full of the sum of the unpaid loan plus costs.” Like on Day 9 after foreclosure they’re going to show up in court, say “no really, just kidding, we didn’t mean to miss those payments, here you are, can we have our house back now” and write out a check for $225,000 on the spot. ??? :roll:

(which makes me wonder if this realtor hasn’t pulled this sort of stunt somewhere.)

Comment by Jingle Male
2014-04-30 03:17:43

You are funny Oxy.

I agree there are people around the real estate industry with no grip on reality. They are part of the UNreal estate industry! This guy also forgot to mention the steep overrides added by the loan servicer and their law school monkeys. Probably 10% or more when all is said and done.

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Comment by Doom
2014-04-29 06:22:40

Rent is the worse 4 letter word. Rent a TV,furniture,car,apt,house, this should be is a short term means to get to the end game of owning something.

Comment by Housing Analyst
2014-04-29 06:27:00

Yes. A bank account full of cash.

Again….

Why buy at these massively inflated prices when you can rent for half the monthly cost?

 
Comment by MacBeth
2014-04-29 07:09:54

I assume Bill in LA rents his furniture.

Comment by Housing Analyst
2014-04-29 07:23:14

Why buy and maintain a motorpool of excavators, pigtails and triaxles when I can rent them? Everyone calls a crane service when it’s time to fly iron, other heavy equipment is no different.

Comment by MacBeth
2014-04-29 07:51:04

True. As well as most infrastructure and farming equipment.

Why own it? You just have to find a place to store it once you have completed your task.

People would be shocked (shocked, I tell you!) to learn what they can check out from their local libraries. I’ve checked out drills, floor sanders, bicycles, microwaves, tents.

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Comment by In Colorado
2014-04-29 08:37:19

People would be shocked (shocked, I tell you!) to learn what they can check out from their local libraries. I’ve checked out drills, floor sanders, bicycles, microwaves, tents.

Interesting … our library doesn’t have such nice toys available. Other than books and other media, the only other thing they have are Kindles, and the waiting list is looooong.

 
 
 
Comment by Bill, just South of Irvine, CA
2014-04-29 19:58:07

I did so on Tampa Florida. Cort furniture. All down to cutlery and toaster. Surprisingly everything was modern looking, clean, neat, and comfortable. Mattresses are always new. The only exception was the vacuum cleaner. It was $390 per month for the furniture.

But…on my way back to L.A. I had about only five boxes and a suitcase I sent by UPS to my Phoenix UPS address. Sent my stuff over, got the tracking info, turned in my rental car at the airport, and flew to Phoenix. By Tampa.

My hourly rate was $85 and a big chunk of that was untaxed. My former supervisor there gave me a great LinkedIn Recommendation. It was not up to him to fire me. It was 2 managers up. My former supervisor left out of frustration because of the idiotic upper management.

{ sniff! I miss consulting gigs like that! }

Comment by Bill, just South of Irvine, CA
2014-04-29 20:02:19

And I was going to rent from Cort when I got back to LA in February 2012. But the apartment complex that I usually rented at had new ownership and was much worse. Costs higher and no assigned parking for studios. So I said “F” it. I invested a total of $78 in three air mattresses over a period of 16 months. Had my own dishes and stuff. I did not need much.

Now in the OC I sleep on an air mattress. My second in 9 months. But I did buy a Fridge. The place did not come with a fridge. Since I’m a direct hire and have slightly more job security than I did as a consultant.

(Comments wont nest below this level)
Comment by Jingle Male
2014-04-30 03:23:01

Bill JSOIC,

My bride and I slept on an air mattress when we visited our child in Santa Monica a few months ago. It was quite the set up: power pump, head board, mattress and “box springs”, so it was 24″ tall. Very comfortable set up. Plug in the pump and presto change-o. I had no idea air mattress technology was so advanced!

 
Comment by Bill, just South of Irvine, CA
2014-04-30 06:34:36

Yes. People who never had the air mattress might laugh, but if you can handle $50 per year (two air mattresses per year because sometimes all of a sudden there is a leak), you have incredible comfort and much more mobility.

I have an occasional very bad back problem and had it since age 21. So I can attest to the comfort of my Target $23 air mattress.

If I was consulting now I would be renting my furnishings and have a normal bed in my OC place.

But I’m still in essence mobile and consider my job temporary. It’s a stepping stone, even though I don’t intend to leave it for awhile.

Hmm…New company. I just was thinking since we all are changing, when we will be vested in our 401ks from the old company. Possibility is that this could be immediate. The new company has no matching contribution so there has to be some different form of incentive to make us want to stay. :)

 
 
 
 
 
Comment by Ben Jones
2014-04-29 06:25:03

‘The Massachusetts Association of Realtors reported Wednesday that homeowners for the second straight month added homes to the market, compared to the same months in 2013, but home sales last month were down 11.5 percent compared to March 2013.’

‘The median selling price for single-family home in Massachusetts last month was $314,063, up 8.3 percent from $290,000 in March 2013 and marking 18 consecutive months of year-over-year increases.’

“While the market still needs more homes for sale – including both existing homes and new construction- the increase in new listings in March is a good sign,” association president Peter Ruffini said.’

Comment by Mike
2014-04-29 14:51:27

I live in one of the most expensive suburbs of Boston (Lexington). The market has gone totally bonkers here. Prices are up 13% according to the normal metrics over last year, but now we are seeing inventory go up as people are seeing this and trying to cash in. Houses are listing for easily 20% above what they should be and it’s insanity. One house in our town sold earlier this year for $100k over asking after a bidding war. The initial asking price was already high. My wife and I refer to this house as “patient zero”, it is the house that made everyone else go crazy.

 
 
Comment by Housing Analyst
2014-04-29 06:26:00

La Mesa, CA Housing Prices Crater 8% YoY; Inventory Skyrockets 41%

http://www.movoto.com/la-mesa-ca/market-trends/

 
Comment by Housing Analyst
2014-04-29 06:39:54

Encinitas, CA Housing Prices Dive 5% YoY; Inventory Balloons 33%

http://www.movoto.com/encinitas-ca/market-trends/

 
Comment by Housing Analyst
 
Comment by Puggs
2014-04-29 11:39:38

“…We know the market so [well]. . . I think there is so much out there that it’s never going to end,’ he said.”

I think he knows something certain people have been saying for some time.

Got zombie inventory?

 
Comment by hero
2014-04-29 22:52:02

Does anyone know about real estate in Honolulu area????

I know it’s expensive but just curious.

Comment by Housing Analyst
2014-04-30 02:43:46

You best be selling it…. Do not delay.

 
Comment by Jingle Male
2014-04-30 03:25:37

If it is over $55/SF, don’t buy. In other words, never! ….at least according to Housing Analyst!

 
 
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