August 27, 2014

Paranoia About Buying At The Top

The Marin Independent Journal reports from California. “Marin home prices edged up 5 percent in July. The median price of a single-family home was $960,000 in the county, and 276 homes sold this July, compared with 325 in July 2013, according to CoreLogic DataQuick. Sales were down in most Bay Area counties, plummeting 7 percent in the area overall and 33 percent in San Francisco. ‘There’s a whole range of thinking’ as to why so few homes are on the market, said Jeff Sterley, a Pacific Union agent. One reason, he said, is that ‘people want to see their price come back to at least the amount it was at the former peak.’ Prices peaked around 2006 and then plunged, coming back around 2012. Sterley believes these would-be sellers are watching and waiting to make a move, and many will make that move in 2015.”

“‘People who want to retire and move out of Marin and are ready to downsize will feel more comfortable once the nest egg has been restored. There are people who will get strong appreciation in 2015. They are going to feel they are in a position to make a move once they have gotten their equity back plus,’ Sterley said.”

The Union Tribune. “The yearly growth in home prices continued to slow in real-estate markets across the United States in June, and San Diego’s was no exception. Michelle Silverman, a La Jolla based Realtor with Berkshire Hathaway, said she’s seen the market slow as higher inventory has made buyers more sensitive to price. ‘I think the move-up buyer isn’t moving up right now,’ she said. ‘They’re looking at what I have, and what is out there, and do I want to make that stretch right this moment?’”

The Los Angeles Daily News. “Housing inventory surged again in July in the San Fernando Valley from a year earlier. Last month, the Valley’s supply of properties for sale jumped 27.5 percent — from 1,470 in July 2013 to 1,874 — said the Van Nuys-based Southland Regional Association of Realtors, noting a two-and-a-half-month supply at the current sales pace. The year-over-year inventory increases began in July 2013, and they have been more than 20 percent each month since October, the association said.”

“Prices continued moderating last month. In July, the median home price increased 3 percent, from $505,000 a year ago to $520,000, but a drop of 3 percent from June. Sellers are becoming more realistic about setting prices, buyers are becoming more selective, and multiple offers, common a year ago, are rare now, association CEO Jim Link said. ‘They have a choice for the first time in a while, and they will not overpay. There are still a lot of people in the market who are sensitive to the last (price) run-up, and there is also some paranoia (about) buying at the top,’ Link said.”

“In the smaller Santa Clarita Valley market, home sales fell 4 percent — from 221 a year ago to 212 in July, an increase of 12 percent from June. The median house price there increased 8 percent, from $430,000 a year ago to $465,000 in July, but declined 3 percent from June. Inventory in the market, though, soared 48 percent, from 492 to 726 properties. ‘The rapid price rise had to moderate,’ Nancy Starczyk, president of the association’s Santa Clarita Valley Division, said in a statement. ‘Each tick up in prices locked more prospective buyers out of the market. Some owners still mistakenly expect prices to keep going up, up and up, yet that’s not realistic.’”

The Orange County Register. “What’s up with mortgage rates? Jeff Lazerson of Mortgage Grader in Laguna Niguel gives us his take. ‘From rate sheets hitting my desk that are not part of Freddie Mac’s survey: Locally, well qualified borrowers can get a 5-year ARM at 2.875 percent with 1 point, borrowing all the way up to 1 million dollars in loan amount or add 1/4 percent to 3.125 percent in rate and get a loan amount to 2 million dollars. I have a confession to make. Today’s flat prices are going to start falling pretty hard after the first of the year – when the Fed starts raising short-term interest rates. Uncle Sam is the leading suspect behind the crisis of home affordability.”

“If you need to sell between now and the next two years, sell now. List your home at fair market value. There’s too much competition in the market to do otherwise. According to Steven Thomas of reportsonhousing.com, the number of Orange County property listings now is 8,000, compared to 5,869 one year ago. He observed, ‘Buyers are second-guessing purchasing altogether.’”

“The U.S. government controls 90 percent of the U.S. mortgage market. In one form or another, a tremendous amount of unnecessary and unaffordable rate and points are added to your mortgage with no change to this thinking in sight. Housing is sinking, for one, because of this expensive anchor around every borrower’s neck.”

The Desert Sun. “Trying to sell a home in the Coachella Valley? Soon, fewer agents outside of the desert may see it. The desert’s largest group of real estate agents plans to remove its property database from a giant pool of regional listings across Southern California. The split goes live Wednesday, eliminating access from agents in the Inland Empire and Los Angeles, Ventura and Orange counties.”

“But the move concerns outside agents, who say making data more exclusive will hurt home prices and hinder their ability to sell a desert home. Laura Steelman, a La Quinta homeowner, wants to eventually sell her 3,000-square-foot house in a gated community. She’s now concerned that fewer buyers will see her property, leading to fewer bids and offers. ‘It’s a disservice for the homeowners in the valley,’ said Steelman, an assistant to an Orange County broker. ‘A lot of owners here come from not only out of the state, but out of the country, so how does that work?’”

“‘We want those prices to go up,’ said John Stewart, an individual investor from Orange County who flipped two desert homes in the last two years. ‘By having this kind of closed system where you exclude other agents, the 100,000 agents from the rest of Southern California from seeing your properties, how can it not affect sales?’”




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74 Comments »

Comment by azdude
2014-08-27 05:34:39

If you buy at the top doesnt that lock you into a bailout check?

Comment by Get Stucco
2014-08-27 05:58:20

What it locks you into is thirty years of debt slavery.

Comment by azdude
2014-08-27 06:44:38

arent you a slave if u have to rent?

Comment by Housing Analyst
2014-08-27 08:11:07

Given the fact rental rates are half the cost of buying at current grossly inflated asking prices of resale housing, answer your own question.

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Comment by Gabor
2014-08-27 10:41:52

Where? I’m seeing rental rates about 80%-90% of buying in south FL. Still better to rent, but it isn’t half.

 
Comment by Guillotine Renovator
2014-08-27 16:23:25

“Where? I’m seeing rental rates about 80%-90% of buying in south FL. Still better to rent, but it isn’t half.”

Blind RAGE has a way of ignoring facts.

 
Comment by Housing Analyst
2014-08-27 18:21:35

I enrage you.

~The Enrager

 
 
Comment by Prime_Is_Contained
2014-08-27 08:42:52

arent you a slave if u have to rent?

We are all slaves to our body’s’ basic needs.

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Comment by Beer and Cigar Guy
2014-08-27 08:57:55

Not me. I haven’t pooped in over 7 years. Just quit ‘cold turkey’. In another few months after I’m completely full of shit, I’m taking my Realtwhore’s test. Yeah, buddy.

 
Comment by Housing Analyst
2014-08-27 18:24:20

“Where? I’m seeing rental rates about 80%-90% of buying in south FL. Still better to rent, but it isn’t half.

In all 50 states. It requires honest math.

 
Comment by joesixpack
2014-08-29 18:20:23

“after a few months……..”

I think you are ready now. (—–)

 
 
Comment by Bad Andy
2014-08-27 08:46:53

You’re a slave any way you look at it. Even after your home is paid off, you still have to maintain it and pay property taxes.

The only way not to be a save is to live in a van by the river.

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Comment by oxide
2014-08-27 09:05:52

I guess slavery is a relative term. Owning a house outright, property taxes and all, is less deep into slavery than renting when you’re 70. If someone is able to rent for 30 years and accumulate enough money to buy a house outright, all the more power to them. But it’s not so easy to pull of, long term. Rent needs to stay low and returns need to stay good for it to work.

 
Comment by Bad Andy
2014-08-27 09:29:43

I tend to agree, however I get blasted here.

The van by the river however is slavery to no one. You simply need the initial investment of the van.

 
Comment by Housing Analyst
2014-08-27 09:31:57

Ask the simple question. What is more costly?

Donkeys don’t like that answer.

 
Comment by "Auntie Fed, why won't you love ME?"
2014-08-27 10:06:54

Ah, yes. “If you don’t own your residence, then you live in a van down by the river.” That old yarn.

 
Comment by Guillotine Renovator
2014-08-27 10:28:21

If you live in a van down by the river, you’re a slave to big oil. That van doesn’t run on free water.

 
Comment by Claudius Maximus
2014-08-27 11:13:37

This trope gets tiring. Most of the dopes who bought during the past two run ups did not do so with outright ownership in mind. They did it thinking they’d come off as mini-Trump clones. The vast majority of these idiots will never get to a place where they own the homes they’re in free and clear.

There are realistically three types in real estate, a small group who own their homes lock and stock and those multitudes renting their home from either a landlord or the bank. It’s funny how those people renting from the bank consider themselves the bedrock of the community while simultaneously always looking for government handouts/bailouts.

 
 
Comment by Get Stucco
2014-08-27 19:06:27

Nope. We can leave any time our annual lease is up for renewal.

Slavery is getting yourself stucco in an overpriced mortgage on a rapidly depreciating crap shack which you will never be able to sell for enough to repay your creditors.

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Comment by octal77
2014-08-27 11:40:11

“…thirty years of debt slavery…”

If it was just 30 years you would getting off easy.

Even with a paid-off mortgage, folks that buy too much house are still going to be crushed with property taxes, insurance, HOA dues, maintenance and the like.

What really bothers me is property tax. Even here in Calif. with prop. 13, 2% year/ 30 years compounded is a lot of money.

Short of getting a direct line to the tooth fairy, how is Joe Sixpack going to be able to afford his house?

 
 
Comment by Puggs
2014-08-27 08:08:15

That, or no mortgage payments for 4 -5 years.

 
 
Comment by Ben Jones
2014-08-27 05:37:39

‘Amid the affluence of Silicon Valley’s highly paid technology employees, an “invisible workforce” of low-paid support staff at the region’s tech companies has emerged, making one-fifth the wages of the digital workers, according to a report released Tuesday.’

‘Janitors, landscapers, grounds keepers, facilities cleaners and security guards working under contracts to provide support services to technology sites make about one-fifth the wages of software developers, systems software employees and network engineers, the study by a San Jose-based labor group, Working Partnerships USA, determined.’

‘The low-paid contract employees make an average of $13 an hour — well below the $62 an hour for software and networking employees, the report found.’

‘For every tech job created in Santa Clara County, four other jobs are needed to support that technology employee, the study estimated.’

‘The wage gap comes at a time when prices for homes and apartments have soared in Silicon Valley and numerous other parts of the Bay Area.’

Comment by Ben Jones
2014-08-27 05:40:35

‘The affordability of homes in Monterey County has increased slightly in the second quarter of this year. Still, just 26 percent of homes are considered affordable — a drop of more than 25 percent since 2011, according to a report from the California Association of Realtors, or CAR.’

‘Sandy Haney, CEO of the county Association of Realtors, said the latest number, an increase of 3 percent from last quarter, was no reason to celebrate. “You’ve got the first-time homebuyers that are going to get kicked out of the market,” she said.’

‘The rate is typically determined by a monthly home payment which should not exceed 28 percent of gross monthly income. Thirty percent of homes are considered affordable in the state, a drop of 6 percent from this time last year, according to CAR.’

‘Homebuyers would need to earn a minimum annual income of $93,590 to qualify to buy the statewide median-priced home at $457,140. In Monterey County, the median home price is $460,000, requiring $94,180 to be able to make monthly mortgage, tax and insurance payments.’

‘The situation is worse in neighboring counties. Just 18 percent of homes in Santa Cruz County are affordable and 24 percent in San Luis Obispo County, according to CAR.’

‘The latest figures were enough for Rep. Sam Farr (D-Carmel) to comment on during a meeting Tuesday with veterans in Marina. “What have we done to this place?” Farr said. “We’ve made it impossible for the workforce to live here.”

Comment by azdude
2014-08-27 06:45:39

tech and govt jobs?

Comment by cactus
2014-08-27 13:07:23

tech and govt jobs?”

Retired CA state workers. just like Prescott AZ.

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Comment by scdave
2014-08-27 07:25:27

Janitors, landscapers, grounds keepers, facilities cleaners and security guards working under contracts to provide support services ??

They bunk up…Three or four to a one bedroom apartment…I have seen it in entire apartment complexes..Carports are full of cars but the real eyeopener is the piles of bicycles…Maybe 20-30 in a pile…

Comment by Housing Analyst
2014-08-27 08:12:55

Entirely normal right Dave? Go ahead and say ” it’s always been that way.”

Comment by Guillotine Renovator
2014-08-27 10:29:34

You’re enRAGEd.

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Comment by dwkunkel
2014-08-27 08:55:40

The differences in education might explain the difference in wages.

Comment by Army No. Va.
2014-08-27 09:07:30

A janitor can be replaced in a day. An openstack developer or tech presales ? Not so much. Pain level of time of loss to time of new hire far more impact to business too.

 
Comment by Prime_Is_Contained
2014-08-27 09:12:00

Education is part of it, but the ability of software to replicate with virtually zero cost is another big part of it. Software, once written, can be run on hundreds of millions of computers at the same time.

Imagine the utility of a landscaper, who, ala the sorcerer’s apprentice, could landscape a million yards at a time! Assuming he could keep it under control, his hourly rate would be tremendous.

 
 
Comment by Rental Watch
2014-08-27 09:04:35

A friend of mine runs a nice hotel on the mid-Peninsula–it’s a small hotel, known for its service. For years, he has complained of trying to staff the hotel–it’s simply too expensive for his workers to live close.

And the problem is getting worse.

Comment by Army No. Va.
2014-08-27 09:11:31

Then he needs to pay more. Or go in with other businesses and offer subsidized living locally.

Comment by Rental Watch
2014-08-27 10:23:31

Paying more only works so well if your competition does not. His problem is that he cares about the quality of the staff, and so he is picky (meaning that his labor pool is already smaller than the competition)–I know people who forego staying at the Four Seasons to stay at his hotel because they know they will be treated well.

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Comment by Guillotine Renovator
2014-08-27 10:32:15

He’s simply delusional. The pay is not commensurate with the expected skill level.

 
 
 
 
 
Comment by Ben Jones
2014-08-27 05:42:37

‘Home prices took a dramatic jump last year, fueled by all-cash investors on the low end of the market. While the gains are finally easing, much of the damage has already been done.’

‘The least affordable markets in the U.S. today are all in California, according to Zillow, it takes nearly 43 percent of the average resident’s income to afford just the median-priced home. It is not much better in San Francisco, or in San Diego.’

“A lot of buyers are priced out of the market, so we’re seeing a lot lower traffic,” said David Fogg, a real estate agent in Burbank. “They’re all talking about how much property values have gone up just in the past year. As a result, many of them aren’t able to buy right now.”

Comment by Whac-A-Bubble™
2014-08-27 05:57:17

‘Home prices took a dramatic jump last year, fueled by all-cash investors on the low end of the market. While the gains are finally easing, much of the damage has already been done.’

Whatever became of the notion that every home price increase was an improvement?

Comment by Shillow
2014-08-27 06:22:31

“much of the damage has already been done”

WTF? Sure because once prices go up they are stuck up there forever. Nothing could happen to change that like, umm, maybe, price declines?

No one wants to believe another crash in prices can happen. To quote an internet celebrity: They don’t think it be like that but it do.

Oxide J-Fraud and the rest, please pipe in with some braying on how prices are sticky on the way down or permanently high plateaus or something.

Comment by Rental Watch
2014-08-27 09:13:44

I think I’ve shared the data from Shiller before, but prices nationally have risen already to a level that is consistent with a market top.

However, the addition of new supply is NOT consistent with a market top…yet. From my perspective, I expect there to be a correction at some point over the next 3-6 years, but I don’t see a near-term catalyst (there isn’t crazy construction of single family residences, there isn’t crazy underwriting, there isn’t an inordinate number of ARMs being taken out–making owners sensitive to interest rates, etc.).

What is the catalyst for a near-term crash in home prices?

I think there will certainly be a better time to buy at some point in the medium term (within 7 years), but I don’t expect a crash in the short term (within 2 years).

But that’s just my opinion. I’m sure you have your own.

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Comment by Neuromance
2014-08-27 17:40:30

Rental Watch:What is the catalyst for a near-term crash in home prices?

What happens if this is true?

“It’s been nearly seven years since the market for so-called private-label mortgage bonds, or those that aren’t backed by government-related entities, dried up. For years, government policy makers and financiers have speculated over when those markets might meaningfully revive.

But given the weak issuance of such private mortgage-backed securities since the financial crisis deepened, there’s a good case to be made that that market is dead, said Joseph Tracy, a senior adviser at the New York Federal Reserve Bank, at a conference sponsored by Zillow last week in Washington.

More than $1 trillion in private-label mortgage-backed securities were issued by Wall Street firms in 2005 and 2006, but the market imploded in late 2007. In 2010 and 2011, a handful of deals came to market, consisting entirely of “jumbo” mortgages that are too large for government backing.”

There’s no actual profit in mortgage financing other than that which the government and central bank print and provide. The reason is that at these price points, it’s not credible that enough of the debt will be paid back to make purchasing mortgage debt without a government guarantee, profitable or prudent.

This indicates to me prices are well above sustainable levels. If the government or central bank are forced to pull back their house price supports (government in form of buying mortgages, the central bank in the form of buying MBS from the government and buying government debt which may come in some measure from government housing agencies).

So - the government and central bank will continue that policy until they are forced to change.

It’s also seems there’s an element of mania about the housing market - it’s the “can’t lose” investment, despite the past several years of experience. House prices have been climbing for the past few years and house flippers are once again advertising on DC news radio.

 
 
Comment by oxide
2014-08-27 09:27:45

Prices are sticky on the way down in areas with jobs. As SCdave said, tenants bunk up, which allows landlords to keep rents high, which allows house prices to stay high. At least in my area, any house bought below market is usually given an expensive fix-up and re listed. Those investors/banks are not “giving away” the house. They need to recoup the cost of fix-up, and with mark-to-market, they can stay irrational longer than buyers can stay solvent or homeless.

And for all the talk of craaaater, house prices still haven’t fallen back to 2011-2012 levels, certainly not where I live.

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Comment by Housing Analyst
2014-08-28 04:02:15

Donk, prices don’t much matter considering demand collapsed “where u live”.

Next.

 
 
 
 
Comment by rj chicago
Comment by rms
2014-08-27 18:19:08

+1 Interesting POV. Great comments too; the proles are catching-on.

 
 
 
Comment by Ben Jones
2014-08-27 05:49:15

‘There Is No California Comeback’

Comment by Get Stucco
2014-08-27 06:01:15

For liberals this is a story of “progressive government” — the model of high taxes, heavy regulation and government “investments” leading to prosperity.

That’s the message from the left’s leading economic sage, Paul Krugman, who recently wrote that the lesson from the “California comeback” is “that you should take anti-government propaganda with large helpings of salt.”

“Tax increases,” he maintained, “aren’t economic suicide; sometimes they’re a useful way to pay for things we need.

Damn progressives!

Comment by Ben Jones
2014-08-27 06:11:45

‘Krugman was a guest on CNN’s “Fareed Zakaria GPS” on Sunday. Speaking with Zakaria and Harvard economist Ken Rogoff, he made the same case he has been making for years–that deficits are not the top economic concern of the day. Krugman noted that the effort of World War II helped end the Great Depression, and joked that something similar was needed today.’

“If we discovered that, you know, space aliens were planning to attack and we needed a massive buildup to counter the space alien threat and really inflation and budget deficits took secondary place to that, this slump would be over in 18 months,” he said. “And then if we discovered, oops, we made a mistake, there aren’t any aliens, we’d be better–”

“There was a ‘Twilight Zone’ episode like this in which scientists fake an alien threat in order to achieve world peace,” Krugman said. “Well, this time, we don’t need it, we need it in order to get some fiscal stimulus.”

Comment by Get Stucco
2014-08-27 06:18:27

‘Krugman noted that the effort of World War II helped end the Great Depression, and joked that something similar was needed today.’

Is he perhaps the most dangerous broken window economist on the planet?

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Comment by Guillotine Renovator
2014-08-27 10:41:37

The guy is an absolute imbecile. When oil was over $140 per barrel, he was screaming that it was not a bubble. After it melted down to ~$35 per barrel, we never heard a peep from this two-bit hack. Why does this mouthpiece even get a platform? Somebody needs to stand up, and tell him to SHUT UP.

 
Comment by iftheshoefits
2014-08-27 13:58:11

After reading a number of Krugman critiques over a year or two a while back, where the critic quoted verbatim something he wrote when Repubs were in power, then a verbatim quote from him saying the exact opposite with Dems in power…. I realized he was useless for any economic insight as his economics is about 95% subservient to his politics. Whatever economist he might once have been, he is no more. I ceased paying attention to anything he writes.

He’s also a petty, vindictive, self-absorbed little man from some of his carry-ings on that I hear about. I have a hard time taking any one seriously who takes him at all seriously.

 
 
Comment by rj chicago
2014-08-27 08:12:11

Krugman is an a**hole!!!

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Comment by Army No. Va.
2014-08-27 09:17:23

Play the cards right (wrong?) with Isis and Iran and we get WW3!!!!

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Comment by Army No. Va.
2014-08-27 09:22:17

Ukraine too

 
Comment by In Colorado
2014-08-27 09:48:55

Play the cards right (wrong?) with Isis and Iran and we get WW3!!!!

That will provide a ton of “broken windows” stimulus. Unfortunately nukes might be used to break the windows.

 
 
 
 
Comment by rms
2014-08-27 18:15:30

There are just too many people in California who are on the dole.

 
 
Comment by Whac-A-Bubble™
2014-08-27 05:55:54

“…La Jolla based Realtor with Berkshire Hathaway…”

Sounds like Uncle Warren saw a great opportunity to get into the game with the likes of Gundaker and Coldwell Banker, and he went for it.

 
Comment by Ben Jones
2014-08-27 06:05:18

‘Nearly half of all mortgages that are still “underwater” in Los Angeles and Orange Counties are held by homeowners aged 35 to 49, according to Zillow.’

‘Just 9.3% of homeowners in metro Los Angeles now owe more on their house than it is worth - barely half the rate a year ago and well below the national average of 17%. Of those loans, 45.8% are held by members of so-called “Generation X.”

‘Gen-Xers were entering prime home-buying years a decade ago, just as prices soared, then plunged. “They were the ones who bought the most at the bubble,” Olsen said. “They’re your shoppers during those peak days. And they were hit the hardest.”

 
Comment by Get Stucco
2014-08-27 06:06:45

“‘People who want to retire and move out of Marin and are ready to downsize will feel more comfortable once the nest egg has been restored. There are people who will get strong appreciation in 2015. They are going to feel they are in a position to make a move once they have gotten their equity back plus,’ Sterley said.”

What if the market crashes again before they have gotten their equity back plus? I’m guessing some of these folks may find they’ve gotten stucco forever.

Comment by Guillotine Renovator
2014-08-27 10:52:35

Has Sterley identified the demographic who will be stepping forth to pay peak bubble pricing+ to facilitate this dreamy nest egg restoration? And, are these fantasy-price sellers the same ones whose houses have been rotting away on the MLS for nearly a decade thus far, with nary an offer?

 
 
Comment by Ben Jones
2014-08-27 06:08:09

‘Six people pleaded no contest Tuesday for their roles in severely vandalizing a foreclosed home in 2012 during a “Sharpie party.” During a Sharpie party, evicted tenants pass out markers and vandalize property before the bank assumes control.’

‘The Merced County District Attorney’s Office said the evicted tenant, Mathew N. Clements, 27, invited as many as 100 people to the party, passed out felt-tipped markers and encouraged people to damage the home.’

‘Partygoers caused about $24,000 in damage Feb. 25, 2012, to the home at 1046 Mirror Lake Drive, committing various acts of vandalism authorities described as “shocking,” “senseless” and “extreme.”

Comment by oxide
2014-08-27 09:36:26

Sharpie ink dissolves readily in acetone (nail polish remover). I haven’t tried it on paint, but I think the paint could withstand it easily with a little touch-up.

Those partygoers must have breaking windows or cementing toilets. I don’t see how you can inflict 24K of damage with a Sharpie.

Comment by "Auntie Fed, why won't you love ME?"
2014-08-27 16:01:40

They must have done more than just Sharped.

 
Comment by rms
2014-08-27 18:24:15

“…or cementing toilets.”

Now there’s some RAGE.

 
 
 
Comment by Get Stucco
2014-08-27 06:16:29

“What’s up with mortgage rates? Jeff Lazerson of Mortgage Grader in Laguna Niguel gives us his take. … Today’s flat prices are going to start falling pretty hard after the first of the year – when the Fed starts raising short-term interest rates. Uncle Sam is the leading suspect behind the crisis of home affordability.”

I thought the Fed was privately owned, not part of the Constitutional federal government.

But no matter — the cat’s out of the bag now that the Fed is behind the crisis of home affordability. And when interest rates go up to normal levels again and home prices go back down, that will also be on the Fed.

Comment by Shillow
2014-08-27 06:36:20

Why would they raise interest rates and bankrupt the government even further?

Comment by azdude
2014-08-27 06:59:21

the FED can control interest rates buy local and state govts really control the economy via regulation. more govt jobs seems to equal fewer private jobs? any correlation?

 
Comment by cactus
2014-08-27 13:17:11

Why would they raise interest rates and bankrupt the government even further?”

If we have a deflation like many think why would they raise rates ?

 
 
Comment by Guillotine Renovator
2014-08-27 10:55:30

While the Fed is behind it, nobody even peeped when Obama was openly stating that we needed to get house prices back up.

 
 
Comment by rj chicago
2014-08-27 08:08:51

AS the quote from Ben’s post this morning notes above:

“The U.S. government controls 90 percent of the U.S. mortgage market. In one form or another, a tremendous amount of unnecessary and unaffordable rate and points are added to your mortgage with no change to this thinking in sight. Housing is sinking, for one, because of this expensive anchor around every borrower’s neck.”

This friends is one BIG reason the market is such a mess. Govt. can even run the post office much less the entire nation’s housing supply. Slaves to government we are.

 
Comment by Army No. Va.
2014-08-27 09:18:42

Ukraine too.

 
Comment by "Auntie Fed, why won't you love ME?"
2014-08-27 09:19:11

“‘People who want to retire and move out of Marin and are ready to downsize will feel more comfortable once the nest egg has been restored. There are people who will get strong appreciation in 2015. They are going to feel they are in a position to make a move once they have gotten their equity back plus,’ Sterley said.”

There must be LOADS of people who want to retire in 2015, but didn’t purchase their first house until 2005 or 2006. Because it’s normal for a person to avoid a normal housing market their entire lives, but then suddenly buy a house near the peak of a historic housing bubble in their mid-50s.

Comment by oxide
2014-08-27 11:33:27

Auntie Fed, LOADS of people bought during a normal market, and then cash-out refi’d in the bubble market. And blew the cash on boats and b**b jobs (to prevent the hub from “seeking arrangement.”)

They are toast.

Comment by "Auntie Fed, why won't you love ME?"
2014-08-27 16:56:47

God will save them. It’s Marin.

 
Comment by Housing Analyst
2014-08-28 04:06:04

And so are you Donk. Good luck offloading that shack at any price.

 
 
 
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