A New Era
KVUE reports from Texas. “You don’t have to drive far to get a feel for Austin’s hot housing market. But you may have to drive far to find something you can afford. ‘We tell our people you drive until you qualify,’ said Jonathan Stilley, who works with Private Label Realty and is an Austin Board of Realtor board member.”
“Four of the hottest housing markets in the country are right here in Texas. Austin is among them with nearly 160 people moving here every day. The Llaga family relocated from Massachusetts last year. They’re now house hunting. ‘It’s really expensive in Boston,’ said Chris Llaga. ‘I know this sounds awful, but relative to the rest of the country, it’s affordable.’”
Bloomberg on Washington. “Retired baseball pitcher Jamie Moyer sold his seven-bedroom Tudor mansion in Seattle, complete with a batting cage and saltwater pool, to a Chinese couple for $3.2 million in September. The new owners promptly rented it out to a group of Amazon employees. ‘We will be like San Francisco in five years,’ said Lili Shang, the Realogics/Sotheby’s International Realty agent who represented the buyers of Moyer’s house. ‘It’s a new era.’”
KDVR in Colorado. “Denver’s housing market saw another record-setting month with the average residential home selling for $377,550 in June, but realtors say the market may finally be easing up. The Denver Metro Association of Realtors says for the first time in a while home buyers are starting to go under contract without competing offers and price reductions are beginning to make their way to the market. Some good news though for buyers looking in the $400,000 to $1 million range as realtors say that market seems to be facing a cool down.”
“‘It feels as though it went from 24 hours, 48 hours on the market to two weeks on the market which is relatively still a short period of time but at the same time its more time than what other people have been used to,’ said Realtor Susan Chong.”
The Santa Cruz Sentinel in California. “For Santa Cruz County homeowners, it’s good news. For prospective buyers, not so much. In May, the median price — the midpoint of 183 sales — was $700,000, up from $675,000 a year ago, according to Gary Gangnes of Real Options Realty, who tracks the numbers. The median was $749,000 in March and $755,000 in April. The priciest house in Watsonville is 62 Avocet Circle, a 4,000-square foot home in the Pajaro Dunes development, where the asking price has been lowered to $3 million. The description on MLSListings.com proclaims: ‘Massive rental income opportunity.’”
From NewJersey.com. “And you think it hurt when you had to knock $10,000 off the price of your home. There are a handful of homes around New Jersey that despite architectural pedigree, high-end craftsmanship, over-the-top finishes, extravagant amenities and location, location, location, just can’t seem to sell at any price — involving a minimum of seven digits, that is. These homes have been on the market for at least two years (or on and off the market for as long as a decade); they cost at least $5 million; and their prices have been slashed by at least 25 percent.”
“Three of the homes on the list have cut their asking price in half. The most expensive house on the list — indeed, the most expensive house on the market in New Jersey — has dropped $19 million from its initial asking price. (Yes, you read that right.) The home in Alpine is now a mere $49 million. Take out your tiniest violin and take a look inside N.J.’s ten most hard-to-sell luxury homes.”
Vegas Inc. in Nevada. “Las Vegas’ resale housing market picked up the pace last month with rising sales and prices, although the number of ignored listings also kept climbing, a new report shows. There were 7,432 single-family homes on the market but without offers by the end of June, up 4 percent from both May and last June. Greater Las Vegas Association of Realtors President Keith Lynam said it’s good for local homeowners ‘when prices are appreciating at a healthy pace like this and more homes are selling.’ And although there are ‘too many abandoned homes’ in the area, ‘we see signs that banks may finally be doing more to address this issue,’ he said.”
“Lenders have been ramping up foreclosures in Southern Nevada, seizing homes that in many cases likely have been in default — and possibly empty and in disrepair — for a long time. Creditors repossessed 677 homes in the Las Vegas area in May, the third consecutive month-to-month increase and the highest monthly tally in more than 2 1/2 years, according to RealtyTrac.”
62 Avocet Cir, Watsonville, CA 95076
4 beds 5 baths 4,042 sqft
For Sale
$3,000,000
Price cut: -$300,000 (6/16)
Est. Mortgage
$11,225/mo
‘$300K Price Reduction! Massive rental income opportunity!’
Rent Zestimate
$4,715/mo
http://www.zillow.com/homedetails/62-Avocet-Cir-Watsonville-CA-95076/16145627_zpid/
Here’s the headline:
‘Santa Cruz County median May home price drops $55k to $700k’
Then:
‘For Santa Cruz County homeowners, it’s good news. For prospective buyers, not so much.’
Ah yes, Santa Cruz where people voluntarily lowered their water usage and now the city hiked their water rates to pay for the workers retirements and other costs as they weren’t taking in enough money for expenses.
Bastion of liberal hate,drugs and street beggars,
salinasron
Great UC there. My cousin just retired from UCSC and holds 3 degrees. Picturesque area. Northern Ca is probably more our flavor, but we can’t afford it, and the weather is too humid. Lucky you, Ron.
Didn’t “If it’s yellow it’s mellow. If it’s brown, flush it down” originate from SC? (we practice it daily)
and the weather is too humid ??
Where do you speak of ??…Surely not the coast…
Hilarious!
Can’t haul in the taxes needed from a necessity? Just raise the rates of that necessity!
LIberalism = Punish the producers.
Coming soon to a municipality near you!
I’ve been to Santa Cruz one time. It was an absolute pit of drugged out beggars, thieves, and low lifes.
I didn’t think much of San Francisco when I was there. It’s the bubble think. In north Texas in the late 70’s early 80’s, we thought it was paradise. There were songs on the radio about how wonderful Texas was, how smart and beautiful the people were. The TV had shows about Texans that were rated number one. We had the best colleges, the best hospitals and sports teams. Everything was growing, new stores and restaurants. Everybody wanted to live there! It was easy to get caught up in it but looking back, it was just the money.
NYC is experiencing the same undeserved status. Trust me when I tell you, it’s a fawking hole and one that you can’t get away from fast enough.
I’ve been to Santa Cruz one time. It was an absolute pit of drugged out beggars, thieves, and low lifes ??
Next time go down the road to Capitola…See if you come away with the same impression…
Their edicts issued by headquarters got jumbled.
Do they not proof read?
Anyone rich enough to afford $5K in rent can afford to buy a house themselves. Who the hell is renting out a 3 million dollar house anyway?
Rich people don’t buy a houses. They lease them.
Come on Mafia, that’s a load of…you know what.
It’s reality my friend.
My friends are moving out of the Bay Area, but at some point in the future may return. Rather than sell their house, they are renting it. Granted, their house isn’t $3MM, but it’s well over $1MM.
Sounds like a Dingbat Story.
My friends are moving out of the Bay Area ??
And going where ??
As far away from the ProngFest that SF is.
About $200k in materials and labor at todays prices there. Now the materials are 20 years old….. say $120k worth of materials accounting for depreciation.
Wheres the money?
Austin, TX Housing Prices Fall 6%
http://www.movoto.com/austin-tx/market-trends/
U.S. Housing Market On Fire – Best One Since 2006
NEW YORK (MainStreet) - Thanks to robust demand and an ample supply of homes for sale, the U.S. residential real estate market is operating on all cylinders. In fact, Realtor.com calls it the “best buying season since 2006.”
“Although demand has been strong all year, in June we’re finally beginning to see an uptick in supply as sellers become more confident about home prices,” said Jonathan Smoke, chief economist at Realtor.com.
Realtor.com also reports that first-time buyers are lining up to buy new homes. 65% of older Millennials (ages 25-34) say they expect to buy a home within three months - up 12% from the start of 2015. The “hottest” markets include San Francisco, Denver, Dallas, and Boston, the company states. Additionally, the median list price increased to $233,000, up 7% year-over-year and up 2% on a month-to-month basis.
As usual, though, it’s buyer beware no matter how strong the housing market. “Any buyer whose agent says they are in a ‘hot market’ should be wary,” says Brad Chandler, CEO at Express Homebuyers USA, in Springfield, Va. “Buyers should make sure the real estate agent isn’t setting them up to jump at the first opportunity presented, without really understanding the client’s bargaining power.”
full story
http://www.thestreet.com/story/13213312/1/us-housing-market-on-fire-best-one-since-2006.html?puc=yahoo&cm_ven=YAHOO&ref=yfp
‘We will be like San Francisco in five years,’ said Lili Shang ??
You will NEVER be like San Francisco Lili….EVER…
I don’t care for SF, but the quote “like SF in 5 years”, know sense even commenting on that other than some of these cities that are hot now can’t and worth ever sustain what they have going now, matter of fact the old saying “losing your shirt” is very appropriate.
“65% of older Millennials (ages 25-34) say they expect to buy a home within three months - up 12% from the start of 2015. ”
Ya. Sure.
In fact, Realtor.com calls it the “best buying season since 2006.”
Didn’t everything crash the very next year, basically screwing everyone who bought in 2006? Doesn’t sound like the best buying season to me. Maybe Suzanne researched it…
Many homes have been sitting for many months and well over a year, the NRA is like the jobs report, the unemployment rate is really 19% at least not 5.3%.
This comes from a hawk on RE like me, and a hawk is known for great eye sight, my eyes tell me this country is in a fatal dive?
Senior Housing Analyst - Is that your profession?
I’ve been studying LIHTC and want to work for a REIT, changing from Shopping Centers and Mixed Use. My sector is dry. The Senior LIHTC sector is a good place to place my skillset, imho.
78M Baby Boomers, and many aren’t going to want to age in place. Many will want a sense of community and things taken care of.
Other than Del Web (location issues), most developers are vertical builders.
Developers aren’t contractors and contractors aren’t developers.
What is a “builder”?
55 and over communities are very hot around here right now…
Of course they are.
Question: Do San Franciscans think little geisha men and women are going to wipe their bottoms and clean the streets in future years?
Better learn to speak Spanish and Mandarin if you live there and want your needs met in old age. Right? No, probably not right. Your bottom wipers will be Americans of European ancestry.
Erasing the future of your progeny is all the rage in California.
Question: Do San Franciscans think little geisha men and women are going to wipe their bottoms and clean the streets in future years ??
Why are you so engulfed with despise of old people that need care at end of life ?? You have posted like this for a very long time and your attitude is beyond sarcasm…Its a mental sickness…
‘Fears that the senior housing sector could be overbuilt might be all too true, newly released data suggests.’
‘New inventory hit a six-year high in the second quarter, but declining occupancy shows supply is outstripping demand. And this could be only the beginning, as more new developments are poised to come online.’
‘About 3,600 units were delivered in the second quarter of this year, most of them assisted living, according to data released today by the National Investment Center for Seniors Housing & Care (NIC).’
‘That’s a big spike from previous quarters, NIC Senior Research Analyst Chris McGraw tells SHN. Specifically, new inventory has not exceeded 2,600 units in a given quarter since Q2 of 2009.’
‘Texas has been a hotbed of development. Houston has done “fairly well” in terms of absorption, Dallas a bit less so, while San Antonio actually has seen negative absorption.’
‘Riverside, Calif. is another struggling market, while Phoenix and Minneapolis are still seeing gains in occupancy, NIC Chief Economist Beth Mace said in a prepared statement.’
‘As for the nation as a whole, occupancy decreased by 0.2 percentage points from the prior quarter for each seniors housing property type tracked by NIC. The occupancy rate for independent living properties averaged 91% and assisted living properties averaged 88.4%.’
‘Occupancy for independent living was 0.5 percentage points above levels from a year prior, while assisted living was down 0.3 percentage points. For the seniors housing sector as a whole, occupancy 3.1 percentage points above its cyclical low of 86.8% during the first quarter of 2010.’
“Demand, as measured by the number of units absorbed, recovered from the first quarter’s low levels, but the slip in occupancy shows that the pace of demand did not match new supply,” stated Mace.’
http://seniorhousingnews.com/2015/07/08/senior-housing-occupancy-slips-as-new-projects-hit-the-market/
My mother is fighting like hell to age in place at home. My dad’s not in the best of shape, but I don’t dare broach the topic of assisted living.
My grandmother is aging in her long-time home. She thought about a community for seniors, but she doesn’t want to be around all those old people. LOL. She would be one of the oldest ones, but she still doesn’t feel that old and wants a little more age diversity around her. Thank goodness for her church. I’m not very religious (in truth, I don’t think she is either), but she enjoys her bible class and card-playing group and food pantry volunteer group and bake sale fundraisers and etc etc etc. That is all she really wants in life. Not to be defined by being old.
but I don’t dare broach the topic of assisted living ??
but she doesn’t want to be around all those old people ??
My MIL lived with SIL for a very long time until it got to hard for SIL…We decided to move MIL to a assisted living facility…Due to the stressful situation for the last couple years @ SIL house, my MIL just wanted to die..Very depressed, old (89), locked up in the bedroom all day every day…
We moved her to a assisted facility…She has her own room but meals & activities are provided…She’s 92 now and full of life..Complaining about everything again like she did many years ago…Has friends and is active every day…Gets up @ 6:00 to get dressed and go out to breakfast…
No question about it in our case…BEST move we ever made…It extended her life with quality…
House flipper I know is looking into buying retirement homes now.
is looking into buying retirement homes now ??
They are a regulatory, logistics nightmare but if you can get through it they are a money making machineAbout $2500. per bedroom around here…And that was two years ago prior to my other passing away…Its probably $3,000. or more now…
other = mother
“And although there are ‘too many abandoned homes’ in the area, ‘we see signs that banks may finally be doing more to address this issue,’ he said.”
Oh, you noticed.
“Lenders have been ramping up foreclosures in Southern Nevada, seizing homes that in many cases likely have been in default — and possibly empty and in disrepair — for a long time. Creditors repossessed 677 homes in the Las Vegas area in May, the third consecutive month-to-month increase and the highest monthly tally in more than 2 1/2 years, according to RealtyTrac.”
And just why do you think that is?
“Las Vegas’ resale housing market picked up the pace last month with rising sales and prices … (snip)… when prices are appreciating at a healthy pace like this and more homes are selling.”
So banks held their foreclosures off the market until market insanity once again plunged deep into the hearts of the great masses of the unwashed (at the urging of the PTB) and this insanity drove prices up to and even beyond the break-even points of what the banks needed
is order to once again generate a win for themselves and everyone is once again happy and prosperous.
Almost everybody. Those schmucks who thought they were pulling a fast one on the banks by living in and maintaining the houses while not paying house payments just may find their asses tossed out into the street when it suits the bank.
In eastern PA, there’s a zombie foreclosure a few steps away from where I grew up. Place has been abandoned for almost two years, it’s going to shhhh…
…aving cream,
and the township is going nuts. Why? Because the bank won’t do anything with the place.
‘While the median is more than double the national figure, the area remains affordable when compared with West Coast magnets San Francisco, Los Angeles and Vancouver. In San Francisco, the median home price tops $1 million.’
‘Lance Li, a 33-year-old pilot for China Eastern Airlines, began house-hunting in Seattle last month. He and his wife, who live in Shanghai and plan to have children, want to find a place in a good school district before their kids are even born. “A lot of people, they sell their real estate in Shanghai so they have money to buy here,” said Li’s agent, Guoxin Gong, with Professional Realty Services.’
‘The surge in home prices and sales comes amid signs, including a plunge in Chinese stocks, that demand may slow. On Wednesday, Microsoft said it plans to cut as many as 7,800 jobs. Seattle’s median house price is more than eight times the city’s annual median income, well above the multiple of three that demographers consider affordable. The median apartment rent of about $1,500 per month is almost 50 percent above the affordability threshold.’
“This city is going to grow and it will become like Silicon Valley or New York,” said Faith Pettis, an attorney with Pacifica Law Group LLP and co-chair of the City’s Housing Affordability and Livability task force, which is developing proposals to increase the amount of lower-cost housing in the city. “People won’t be able to afford to live here.”
‘Faced with a stomach-turning slide in share prices, many Chinese companies are taking matters into their own hands with a tactic that experts say is bound to backfire: they’re pressing the pause button. About half of the 2,800 stocks on mainland Chinese markets have been suspended from trading as companies attempt to stem further losses by sitting out the market upheaval.’
‘The trading halts appear to be separate from the flurry of measures rolled out by Beijing over the past week, as the country’s communist leaders made increasingly desperate attempts to stabilize tumbling markets.’
‘The government fanned the rally by sending encouraging signals through state media that enticed the Chinese public to pile in to the market. But the ensuing downturn and Beijing’s frantic response, which includes banning major shareholders from selling stakes for six months, highlights the limits of its control over the market.’
‘Experts said the wave of trading suspensions could have the opposite of the intended effect. Instead of stabilizing the market, they could add to the selling pressure by transferring it to other shares that remain active.’
‘It’s a naive strategy that shows “how immature the China market is,” said Jackson Wong, an associate director at United Simsen Securities.’
‘Ordinary Chinese investors have mixed feelings about the trading halts. “I’m worried and happy at the same time,” said Shanghai resident Ella Hong, who plowed 300,000 yuan ($31,400) into six companies starting in May, just before the market turned.’
‘Trading in half of those stocks is now frozen, including two companies whose share prices have dropped by more than half. “What I’m happy about is that they would not lose more in these next few days,” said Hong. “But what I’m worried about is that I heard once the stock comes back to the market, it would drop anyway.”
http://hosted.ap.org/dynamic/stories/A/AS_CHINA_FREEZING_THE_MARKET_?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2015-07-09-06-40-04
What a bunch of idiots. We’re supposed to believe they’re buying houses for kids that aren’t born yet?
‘The Chinese government denounced the market movement as panic selling, and responded to the drop in a way that many analysts saw as a huge overreaction.”
‘Working through various agencies, the government cut interest rates for the fourth time this year, paused new initial public offerings, capped short selling, changed the rules to allow pension funds and the social security fund to invest more in stocks, and ordered state-owned companies and controlling shareholders not to sell their shares. It changed the rules so that investors can, for the first time, use their houses as collateral to borrow money to buy stocks.’
‘Most significantly, it used a state-owned securities financing company to lend $42 billion to 21 brokerages so they could purchase blue-chip stocks – on top of $20 billion that brokerages said they would buy over the weekend. As Gwynn Guilford of Quartz notes, taken together China’s response was bigger than TARP, one of the U.S. government’s prime responses to the financial crisis.’
‘And of course, it sent out many cheerful messages about the stock market through the state-owned media.’
‘The rise in margin lending has deeper roots: the huge expansion in money in China after years of interest rate cuts and easy monetary policy. Even after the U.S. government has been printing money for years, China’s money supply is still significantly larger than America’s — even though the U.S. has a larger economy.’
‘As Scott Kennedy of the Center for Strategic and International Studies wrote in a recent note, “Over a quarter of China’s stock market capitalization is now supported through margin financing, turning an equity market into a de facto debt market.”
‘McKinsey has estimated that, excluding the financial sector, almost half of China’s debt is directly or indirectly related to real estate, about $9 trillion.’
‘When the property market started to slump, it put much of the country’s wealth at risk. In 2014, Morgan Stanley Economist Andy Xie compared the Chinese stock and property markets to a horror movie. “People like to watch, but don’t want to be in it,” he said.’
‘A dip in the market could slow specific reforms. Joyce Poon of GaveKal Dragonomics said in an interview that one of the Chinese government’s goals in stoking the stock market boom is to create an environment where certain companies – specifically, big state-owned companies in non-essential sectors like health care, retail, hotels and low-end technology — can restructure, carry out mergers and acquisitions, and sell stakes to private shareholders. In order to privatize state assets, people must want to buy them, says Poon.’
http://www.washingtonpost.com/blogs/wonkblog/wp/2015/07/08/7-big-questions-about-chinas-astonishing-stock-market-crash-and-what-happens-next/
There’s more at the link. Consider this:
‘taken together China’s response was bigger than TARP’
Think about the magnitude of what’s just happened. We’ve seen a collapse many times larger than Lehman Brothers. Billions are being laundered through real estate all over the world. And the media gives us this “gee whiz, a pilot from China just paid millions for a little house in Seattle.”
Riverside, CA Housing Inventory Explodes 90%; Prices Fall
http://www.movoto.com/riverside-ca/market-trends/
Cypress, CA Housing Prices Fall 6%
http://www.zillow.com/cypress-ca/home-values/
Tarzana, CA Housing Prices Fall 19%
http://www.zillow.com/tarzana-los-angeles-ca/home-values/
“The priciest house in Watsonville is 62 Avocet Circle, a 4,000-square foot home in the Pajaro Dunes development, where the asking price has been lowered to $3 million.”
Pajaro Dunes should be around $300K max. But one things is true in this area and south into Monterey County is that rents are high because there is so little lower cost housing available and only a few leasing companies control the market. If you can find an owner who rents direct you can get a better deal. If you have pets and kids you are pretty much SOOL for anything less than $2200/month and not in the best of areas.
‘There’s plenty of slack still in the labor market, one of the reasons that wages are stagnant. Such is not the making of real good times, at least not yet. The dissonances are easily seen in Washington.’
‘For example, real median household income in 2013, the latest year available, was $60,106, better than the national average but more than $7,500 below the record set in 1999.’
‘Most households that participate in the Federal Supplemental Nutrition Assistance Program (SNAP) have at least one working member. Many are employed in low-wage jobs for prominent national fast-food and retail corporations.’
‘For fiscal 2014, Washington had more than 1 million people getting SNAP assistance. This is double where it stood in 2004. The same trajectory is seen throughout the Northwest.’
‘Another example of the sharp winners and losers in the recovery is lack of housing affordability in Seattle and some parts of the Eastside.’
http://www.seattletimes.com/business/economic-storm-clouds-off-in-distance-from-seattle-boom/
“Facts Don’t Support Houston Area Realtor’s Claims Of Rising Home Sales”
http://coveringkaty.com/2015/04/13/statistical-estimation-turns-negative-yoy-march-home-sales-headline-hcad/
Not in Houston. Not in Dallas. Not in NY, Vegas, San Francisco, LA, Seattle or anywhere else.
Housing Demand Plunges To 20 Year Low
http://2.bp.blogspot.com/-fqSztKilps8/VFlPKlr52JI/AAAAAAAAhKU/v5oS41S-y0s/s1600/MBANov52014.PNG
‘And now let us pause to contemplate Richard Blum’s participation in the destruction of the American dream at the hands of a new phenomenon known as the “Wall Street landlord.”
‘Blum’s wife is Sen. Dianne Feinstein. The California legislator’s latest financial disclosure report, filed with the U.S. Secretary of State on May 15, includes a 2014 Blum Family Partners investment of at least $1 million in Colony American Homes Holdings.’
‘Blum is the billionaire founder of the private-equity firm Blum Capital Parnters. Colony homes are owned under the umbrella of Colony Capital, one of the largest investment firms in the world.’
‘The senator’s disclosure describes Colony American Homes as a “leading owner and provider of high-quality single-family residences for rental across the United States.”
‘Though Blum has taken pains to deny it, reports say he’s worth at least $1 billion. According to a recent Roll Call survey, Feinstein’s net worth is $45.3 million, which puts her in the top tier of wealthy Washington lawmakers.’
‘Colony American Homes was one of several investor-owned landlords highlighted in a June report from the anti-poverty advocates at the California Reinvestment Coalition (CRC). That study focused on the rise of the Wall Street landlord and its impact on California renters and would-be homeowners.’
‘The verdict from the CRC is that Colony American Homes has not been an especially good landlord: rents are above average, utilities generally aren’t included, and maintenance is poor, at best. Moreover, would-be first-time homeowners in California often find themselves squeezed out by cash-rich corporate buyers like Colony American Homes. Rents are going up, and the landlord is nowhere to be seen.’
http://www.bohemian.com/northbay/homewrecker/Content?oid=2728260
There are plenty of these houses in Tucson. As a general rule, they are not being maintained.
I wonder how that high speed rail contract is going to help his bottom line?
Gee, whocouldaknowd eh?
Investment houses have no interest in being property managers - the only thing that they are interested in is ROI, esp over the short term.
I think that there are a lot of entities, big investors and little mom-and-pops, that are learning about the realities of SFR property management.
In short, it’s a big headache. And you don’t make as much money as you hoped when you bought the place.
There’s nothing but losses in it at the price all these fools paid in the last 15 years. If you’re paying more than $20-$30/sq ft, you’re losing money. Alot of it.
I’m seeing this play out across the street, Mafia. Guy bought a house for his daughter to live in while she went to the University of Arizona. She and her buds proceeded to run the place down for five years.
Then, after she graduated and left town, the son and his pals moved in. Let’s just say that they didn’t enhance the value of the property.
Son moved out last year, and it became a rental. The tenants are in the process of moving out, and Mr. Landlord is scurrying about, tending to maintenance and repairs that have been deferred for, oh, a decade.
I’d be very surprised if he gets back what he paid for the place. Why? Because there’s a house for sale in the next block, same price point, and it’s just sitting there. Needs all kinds of work, and the fixer-upper crowd already bought up all the houses that it wants around here.
ooooooph….
Scottsdale, AZ Housing Prices Fall 6%
http://www.zillow.com/scottsdale-az/home-values/
Mafia.. Scottsdale is a very nice place for sure, it is also very weak in resale’s and new. Prices have been dropping there for a year now and it is a worry of the very important RE industry there. Like most places they dance around it and say it could be worse, actually overall the market is worrisome, another year like this and it would be a disaster for the town.
The disaster is grossly inflated prices. The solution is dramatically lower prices.
‘In the Los Angeles area, fewer than one in four households headed by persons in their 20s or early 30s – known demographically as “millennials” – can afford to buy the median-priced home, which now goes for just over $500,000.’
‘Overall, just 34 percent of households in the L.A. metropolitan area can afford that same home. Which means that in the housing department, it only helps a little to be older and more established in a career.’
‘Things are even more restricted in the San Francisco Bay area, where the median-priced home costs about 8 percent more than around Los Angeles. Just 14 percent of all households in the city itself can afford the median-priced San Francisco home, which runs even higher than the regional median. Affordability barely rises in Marin County, where a mere 15 percent of households can afford a median-priced home.’
‘Things aren’t much looser in Sonoma, San Diego, Orange, Contra Costa, Santa Clara, Alameda, Santa Barbara, Ventura and Napa counties.’
‘If that’s not a crisis, it’s hard to see what qualifies. If you’re a 28-year-old father who would like to live and work in the cooler, breezier climes near California’s coast, you can pretty much forget it unless you’re a computer programmer, lawyer, doctor or in another high-salaried job. Even young professionals pulling down salaries approaching $200,000 a year often can’t afford to buy in places like San Francisco, coastal Orange County or the West Side of Los Angeles.’
‘Mother Nature might eventually solve the drought crisis, but it’s hard to see what might solve the housing situation, fast becoming a frustrating catastrophe for many.’
http://www.visaliatimesdelta.com/story/opinion/2015/06/30/housing-now-huge-unheralded-state-crisis/29487961/
” fast becoming a frustrating catastrophe for many.’
Oh, the humanity!
persons in their 20s or early 30s – known demographically as “millennials” – can afford to buy the median-priced home ??
Because they are in dead end jobs with Chiity income…Thats why they are not getting married and if they do many don’t have children…
Sounds like a couple of my neighbors. Dual-career couple with good jobs and zero interest in having kids.
Well… not really. Not at all.
The reason nobody can afford(nor do they care to) to buy a house because prices are inflated 250% over long term trend.
See for yourself.
http://img802.imageshack.us/img802/7812/caseshiller.jpg
You only have to go as far as looking at the number of housing units per capita as compared to the rest of the US to see the problem.
‘‘Things are even more restricted in the San Francisco Bay area, where the median-priced home costs about 8 percent more than around Los Angeles. Just 14 percent of all households in the city itself can afford the median-priced San Francisco home, which runs even higher than the regional median. Affordability barely rises in Marin County, where a mere 15 percent of households can afford a median-priced home.’ ‘
I think of feudal states when I read stuff like this. Pouring most of your after-tax money into a dwelling, just to be able to exist. Guess it works for them that live there. California is a great place to visit, and having a slice of it every so many years for a hiking trip is really great. But the COL is nonsense.
From the Texas link:
‘It’s really expensive in Boston,’ said Chris Llaga. ‘I know this sounds awful, but relative to the rest of the country, it’s affordable.’
http://www.bloomberg.com/news/articles/2015-07-09/queens-condos-set-record-as-manhattan-buyers-priced-out
‘Condominium prices in New York’s Queens jumped to a record in the second quarter as soaring values in Manhattan sent buyers fanning out across the city’s boroughs in search of properties they could afford.’
‘The average price of a Queens condo sold was $575,339, up 20 percent from a year earlier, according to a report Thursday from appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate. In Long Island City, a neighborhood just across the East River from Manhattan better known for its rental towers, the average price rose 28 percent to $1.06 million.’
“This is the search for affordability,” said Jonathan Miller, president of Miller Samuel and a Bloomberg View contributor. “Queens is benefiting from Brooklyn’s success, Brooklyn is benefiting from Manhattan’s success. Next is the Bronx.”
‘In a market where investors and first-time homebuyers are searching for the next up-and-coming neighborhood, Anacostia is heating up — its home prices rising and inventory dropping.’
‘While the $240,000 median sale price in Anacostia is still far lower than the $550,000 D.C. median, prices rose more than 36 percent in Anacostia over the last three months compared with the same time last year.’
‘Nela Richardson, Redfin’s chief economist, told me that as prices in the rest of D.C. increase and inventory remains low, it makes sense that interested buyers will look elsewhere. And given the finite amount of space in the District, the growth in the market was going to reach Anacostia sooner or later.’
“I think people look around and see what used to be sketchy areas in D.C. and see how much they have changed,” Richardson said. “People see the construction cranes and ask if maybe that is the next Logan Circle or Adams Morgan or H street.”
http://www.bizjournals.com/washington/blog/2015/07/let-the-bidding-wars-begin-anacostia-housing.html
Plano, TX Housing Prices Fall 21%
http://www.movoto.com/plano-tx/market-trends/
Alameda, CA Housing Prices Fall 8%
http://www.movoto.com/alameda-ca/market-trends/
“Lenders have been ramping up foreclosures in Southern Nevada, seizing homes that in many cases likely have been in default — and possibly empty and in disrepair — for a long time. Creditors repossessed 677 homes in the Las Vegas area in May, the third consecutive month-to-month increase and the highest monthly tally in more than 2 1/2 years, according to RealtyTrac.”
Only 24.9 million excess, empty and defaulted houses remain. Get rampin’.
Denver is over. Over.
Hey Ben -
This just came across my desk from a fellow worker here in the Land of ILLANNOY!!!
30% increase on houses where the folks are already struggling to keep up the mortgage payment -
All I can say is thank God I do not own property here otherwise for me the beatings will continue until moral improves.
And Rummy says - we are willing to do the things to ‘right the wrongs that have been committed over the years.’ Interpreted as F…you Daley!!
Thing he fails to admit is a good part of the wrong is him!!! This guy is a real tool. But then the low info crowd - they voted him in by a big majority in the mayoral nag race in April this year.
For them the beatings WILL continue until moral improves.
Enjoy your day!!!
Monday, July 06, 2015 04:54PM
CHICAGO (WLS) — Chicago homeowners could face up to a 30 percent hike in their property taxes to pay for the city’s financial problems.
Not only is that much of a city property tax increase possible, there are efforts under way on the state and county levels to raise income and sales taxes, all because politicians are running out of options to pay their public worker pension debt.
“We are willing to do things to write the wrongs that have been committed over the years,” Chicago Mayor Rahm Emanuel said on July 1.
When Mayor Emanuel suggested a $200 million property tax increase to help pay teacher pensions, he did not mention the additional increases that might be needed to pay city worker and police and firefighter retirement benefits.
a 30 percent hike in their property taxes to pay for the city’s financial problems ??
Its a extraction of your equity…Basically, increasing the carrying cost of buying a house thereby reducing its value to a potential buyer…Same thing happens with mismanaged HOA’s when they double or triple the monthly dues…
If you have to borrow for 15 or 30 years, it’s not affordable nor can you afford it.
Out here in Palm Beach County, Florida, the building beavers have been going to town in a frenzy. Building permits were flying. Communities sprouting up out of nowhere. Last week permitting activity virtually stopped. Is the party over?
Florida is still #1 on foreclosures. The country foreclose sale rate has been down from 300-350/week to 200-250/week.
Clifton Park, NY(Saratoga County) Housing Prices Fall 7%
http://www.zillow.com/clifton-park-ny/home-values/
“Phoenix-area Realtor Gets 5 Years In Prison”
http://www.bizjournals.com/phoenix/news/2015/06/24/phoenix-area-realtor-gets-5-years-in-prison-as.html