July 30, 2015

Preparations For Growth Can Be Overly Optimistic

The Los Angeles Daily News reports from California. “New home building is finally showing signs of life around the Valley with several projects underway or in the planning stages, including one that will bring a taste of Manhattan-style living to the well-heeled. The projects are in Sylmar, Winnetka and Woodland hills. Santa Clarita-based Williams Homes Inc. is doing two of them. ‘We made this bet about two years ago,’ Keith Herren, Williams’ executive VP, said of the decision to develop the Winnetka property. ‘We like the San Fernando Valley and we like the City of Los Angeles. There is unlimited demand (for housing.)’”

KPHO in Arizona. “People have lost faith in the stock market and they’re apparently getting over the fears created when the housing bubble burst. ‘Real estate is something that’s tangible,’ said Nathan Pierce with Strong Tower Real Estate Group. He’s not surprised people trust Maple Street more than Wall Street. He’s hoping to flip a $275,000 home in central Phoenix for $700,000, but he said the average person can start smaller. ‘I think people need to start with their primary residence first because, for the majority of Americans, that’s the biggest investment they’ll make anyways,’ Pierce said.”

The Boston Globe in Massachusetts. “Buying a home in the Boston area has been a high-stakes competitive sport, marked by packed open houses, pitched bidding wars, and ultimately, disappointment. That may be slowly changing. Some brokers say they’ve detected a shift in the market that could signal more opportunities for buyers. ‘It has become a little less crazy for buyers,’ said Lara Gordon, a real estate agent who works primarily in Cambridge and Somerville. ‘Instead of competing against 15 to 20 offers, maybe it’s three to five offers.’”

“In June the number of home listings that came on the market increased by 11.6 percent. ‘We’re heading to a more stable appreciation,’ said Alison Socha, a real estate agent in Melrose. ‘The buyers now are being more cautious. They don’t want to get into major-league bidding wars. They are tired of being the bridesmaid, and they’re feeling that the market has reached the high and that it’s settling.’”

From The Paper in Texas. “Residents of The Woodlands – or Houston commuters driving through the area to and from Dallas and other points north – have found themselves stuck in all kinds of traffic. A significant reason for the massive surge in infrastructure upgrades is due to the world headquarters of Exxon/Mobil moving into the neighborhood. For over a year, local residents have been bracing themselves for the influx of what was estimated to be 50,000 new inhabitants. However, the current substantial drop in oil prices put a hold on much of the transition, and only a fraction of the predicted total have moved in.”

“Kimberly Nicole, a Realtor based in The Woodlands who caters to upscale and elite homes and clientele, terms situations like this ‘The Exxon Effect,’ where preparations for growth can be overly optimistic. There is a glut of new building and real estate agents alike; when the bubble pops as reality sets in, there are too many empty houses and an overabundance of those wanting to fill them.”

“‘The Woodlands situation is an example of how a housing market can fluctuate as wildly and as immediately as the New York Stock Exchange,’ she said. ‘Most agents are unprepared for the tumult; it’s the savvy agents who are familiar with all aspects of real estate that can successfully navigate through the turbulence.’”

The Journal in Nebraska. “The city of Plattsmouth is helping to pave the way for a new housing development to be constructed within the city limits. The final assessed value of each home and lot it sits upon is estimated at $210,000. ‘Per the contract, the developer must make its best effort to assure minimum assessed valuation of $210,000, real estate and house combined. That valuation exceeds most homes in the immediate area,’ said City Administrator Erv Portis.”

“A recent survey identified the lack of housing and the updated Plattsmouth Comprehensive Plan addresses the need to address the shortage. The plan identifies a shortage of homes in the middle and upper-middle income ranges. ‘On the other hand, a glut of homes valued between $25,000 and $50,000 exists. Homes in this bracket, discourage middle income families from ‘moving-up’ in the housing market due to concerns on whether the home would be able to sell.’”

Vegas Inc. in Nevada. “The apartment industry is one of the most-active areas of real estate locally and nationally, especially for development. In Las Vegas, investors have been buying and building multifamily properties as younger residents shy away from homeownership and because many locals — their personal finances wrecked by the recession — haven’t been able to land a mortgage, let alone afford a down payment, and have to rent.”

“Developers completed about 1,700 units last year. As of December, they were projected to open roughly 5,750 units this year and almost 2,000 more in 2016, according to CBRE Group. Not everyone’s cheering the workload. Some people have said developers are piling in too quickly and overbuilding, especially in the southwest valley, where it seems most of the projects are concentrated. ‘Apartments have probably gotten a little ahead of themselves right now,’ RCG Economics founder John Restrepo said a few months ago.”

The Pasadena Star News in California. “At age 29 and in a committed relationship with his girlfriend, Daniel Garcia, a Long Beach barista, thinks occasionally about what it would be like to own a home. But then he’d rather pay off some personal debt and travel a little more. He’s not alone. While 74 percent of millennial renters between ages 18 and 34 plan to buy a home one day, 53 percent who expect to purchase a home said they are putting it off until at least after 2018, according to a survey of more than 5,800 millennial renters nationwide by Apartment List.”

“Garcia rents near downtown Long Beach. He said while he and his girlfriend, a graphic designer, are Southern California natives, they haven’t ruled out moving out of state to buy a home. But the American dream, defined by previous generations as owning your own place, seems to be a foreign concept to those his age. ‘I’m 29, I have friends that are a little older, some a little younger,’ Garcia said. ‘None of my friends actually own a house. It’s not a topic we bring up too much.’”

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Comment by Ben Jones
2015-07-30 03:09:55

From the LADN article:

‘The two-story homes will be about 2,465 square feet and have three to five bedrooms. They will be priced in the mid-$400,000 to low $500,000 range, just below the current median price of a re-sale Valley home. Williams’ Foothill 74 townhomes will have floor plans ranging from four bedrooms with 1,738 square feet to five bedrooms with 1,901 square feet. They will be priced in the high $300,000 range.’

‘Warner Center is a trendy, hip place where the phrase “luxury living” is a conversation condiment. Shawn Evenhaim, the company’s founder and CEO, wants to kick it up a notch at the complex that will probably include apartments.’

‘And the Valley doesn’t yet have what’s on his mind. “This is something I’ve really wanted to do for the last 20 years,” he said. “The Valley doesn’t really have any kind of luxury living.”

So hundreds of thousands of dollars and no luxury?

Comment by Dman
2015-07-30 06:30:23

I wouldn’t even bother looking at an apartment in a complex with “luxury” in it’s name.

Comment by dwkunkel
2015-07-30 10:22:58

Whenever I hear or see the word “luxury”, I want to throw up!

Comment by cactus
2015-07-30 09:03:31

The projects are in Sylmar, Winnetka and Woodland hills.”

Sylmar ? Must have got a deal on the land maybe an old junk yard ?

Comment by Ben Jones
2015-07-30 03:17:50

‘For over a year, local residents have been bracing themselves for the influx of what was estimated to be 50,000 new inhabitants. However, the current substantial drop in oil prices put a hold on much of the transition, and only a fraction of the predicted total have moved in’

‘Royal Dutch Shell warned on Thursday that lower oil prices could continue for several years, and said it was planning for a prolonged downturn. Earnings in the second quarter, on a current cost of supplies (CCS) basis, came in at $3.4 billion - down from $5.1 billion for the same quarter a year ago…Shell also revealed plans to further reduce 2015 capital expenditure (capex) to $30 billion.’

‘On Tuesday, BP reported a second-quarter replacement cost loss of $6.3 billion and warned that low oil prices were here to stay. On Wednesday, French oil giant Total reported that net profit fell 2 percent in the second quarter, and the company stepped up its cost-cutting drive.’

This always happens. It comes time for crow, and the poster has disappeared.

Comment by Ben Jones
2015-07-30 03:23:07

‘Midland’s housing market produced a record for houses sold during the month of June. Figures from the Permian Basin Board of Realtors indicated 228 homes were sold in June — the most according to their records, which go back to January 2008.’

‘For those homes sold in June, the median sold price was $250,000, a 12 percent decrease compared to June of last year. The average sold price dropped 17 percent year-over-year. It should be noted June 2014 experienced the highest home prices on record, with average and median sold prices reaching $340,000 and $280,000 respectively.’

‘The price drop reflects the drop in oil prices since November of last year. Odessa also showed signs of strain in its real estate market, as the number of homes sold dropped by a quarter compared to June 2014, according to data from the Texas Real Estate Center at Texas A&M University. Average home prices fell by over 5 percent, while median prices remained stagnant. Until June Odessa’s real estate market seemed to have fared better than Midland’s as home prices continued to rise and inventory remained low.’

‘Home prices are not the only measure to have fluctuated since the price of oil fell. Apartment prices have been cut by over a quarter, while occupancy has fallen by over 10 percent, according to a previous article.’

Then there is this unclear correction to the article:

‘Editor’s Note: This story has been altered due to a change in the numbers reported by the Permian Basin Board of Realtors. A report attached to an email to the Reporter-Telegram on Tuesday indicated there were 797 “active residential” listings. A PBBOR official later confirmed that number. An email that contained the report also included that “There were 434 Active listings on the last day of June.” The figure was not included in the attached report and was not brought to our attention when a call was made confirming the 797 number. The Reporter-Telegram is correcting the report to show this change.’

Comment by taxpers
2015-07-30 04:04:11

Midland vs Odessa
What’s the dif?

Comment by Ben Jones
2015-07-30 08:58:42

‘Midland vs Odessa
What’s the dif?’

Odessa has a semi-pro football team.

I think I found what the editors note is about. I searched for housing only:


806 properties found

So their inventory almost doubled in July, even with record sales.

Oh dear…

325 properties found Midland, TX Price Reduced Homes for Sale


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Comment by Jingle Male
2015-07-30 03:52:39

Maybe he is busy updating his resume…

Comment by Mafia Blocks
2015-07-30 04:34:08


Comment by Ben Jones
2015-07-30 07:29:54

I was just looking at the census bureau numbers on new construction. Seemed heavy on the south. I wonder how many lots are tied up in Texas?

‘Searching for a new home? Browse the 6,100 new homes in Dallas, Texas below. If there is a new home being build to match your needs you are sure to find it here. There are currently 251 home builders in the Dallas Area to choose from in 656 new home communities. Choose from the 4,892 home plans or the 1,208 quick move-in homes to find the perfect home for you in the Dallas area.’

‘It’s not just big hair and cattle down here in Dallas anymore. This is a world-class city with great Texan flair.’


Check out the prices on these beauties.

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Comment by Mafia Blocks
2015-07-30 08:11:50

Big hair? Big haircuts.

Frisco, TX Housing Prices Crater 14% YoY; Inventory Skyrockets 125%


Keep slashin’.

Comment by rj chicago
2015-07-30 07:46:49

Just read too that Chevron is letting go a good number of folks.


Comment by Ben Jones
2015-07-30 07:56:25


Price Reductions 944 1,251 1,288 1,435 1,557 1,668 1,912

New Listings 2,334 3,451 3,302 3,611 3,908 3,944 4,012

Inventory doubled since the beginning of the year:


Comment by In Colorado
2015-07-30 08:13:30

I have a friend who inherited a house on Coronado Island SD, and two appt bldgs in SD.

Heard on the radio this morning that Nobel Energy wants to drill 80 new wells in Northern Colorado, in the Pawnee Grasslands.

Comment by Mafia Blocks
2015-07-30 09:00:12

“It comes time for crow, and the poster has disappeared.”

He was furiously backpedalling the last time I saw him. He looked like he just got shot out of a cannon.

Comment by AmazingRuss
2015-07-30 09:07:01

You can bet he’s lurking, looking for something, anything to dispute.

Comment by Mafia Blocks
2015-07-30 09:12:29

He and Lola have that same trait. Argue about nothing.

Comment by Wang6Pack
2015-07-30 17:09:55

Don’t listen to ‘em Dan the man, you are my hero!
7% for the next hunderd years!
and as soon as my Ordos apartment brings me riches I’m pouring it all into Royal Dutch Shell! SHABAM!

Comment by Ben Jones
2015-07-30 03:30:50

‘The crime statistics released this month by the Los Angeles Police Department were sobering, particularly in Downtown Los Angeles, where all manner of law-breaking shot up. Now area stakeholders have a big question for the brass at Central Division, which covers Downtown: How will they respond?’

‘The city recorded a 12.7% increase for Part 1 crimes, which detail the most serious offenses, among them homicide, robbery and aggravated assault, and a 20.6% increase in violent crime in the first six months of the year, compared to the same period in 2014, according to the LAPD.’

‘The numbers were higher in Central Division. Through July 18, Part 1 crimes increased by approximately 34% from the same period last year. Additionally, Central has seen a 60% increase in violent crime.’

‘Specific categories in Central Division saw skyrocketing increases. Aggravated assaults rose 77%, with 461 reported so far this year compared to 260 at this time in 2014. Robberies spiked 51%, from 255 last year to 385 this year. Rapes rose 22%, from 50 to 61.’

‘The trend in Central Division was not limited to violent crime. Property crime, which includes car theft, personal theft and burglary, surged 25% higher. Burglaries jumped from 114 last year to 182 this year, an increase of 60%.’

‘The numbers have sparked concern across the community. Although she stressed the need to consider the local figures within the context of crime citywide, Carol Schatz, president and CEO of the Downtown Center Business Improvement District and the Central City Association, called the numbers for Downtown “alarming.”

‘Her take was echoed by Patti Berman, president of the Downtown Los Angeles Neighborhood Council. She said she hears complaints on a daily basis from residents and doesn’t know what to tell them.’

“I’m hearing much more than I did a year ago about quality of life issues involving assaults and property crime. Everyone is feeling the pressure,” Berman said. “People are becoming very unhappy. Some are becoming frightened and some are leaving.”

This link is the LA Downtown News, which is devoted to mostly residential development of its namesake. Now, how much for one of the thousands of condos being built down there?

Comment by rj chicago
2015-07-30 07:49:06

Ben - you been to central LA in recent years?

Comment by Ben Jones
2015-07-30 08:04:40

I’ve never been there.

‘Downtown Development: Updates on 90 Projects’

‘If there is any question that the Downtown development scene has reached the stratosphere, then just glance toward South Park. There, a trio of Chinese companies are working on mega-developments each worth about $1 billion. They will lead to a collective 10 new high-rises. When taken with other South Park projects, more than 5,500 housing units are in construction or in the planning pipeline.’

‘The Arts District, meanwhile, continues to boom — projects such as the recently announced Soho House show that the action has “jumped” Seventh Street and the community is expanding to the south. Though it may seem impossible, the activity will only pick up, as a batch of high-profile developments are in the homestretch.’


Comment by rj chicago
2015-07-30 10:21:27

You have to visit there at some point to believe it for what it is and it is Sodom and Gammorah in situ!!!
I attended a small private architecture school called Sci-Arc - Southern CA Inst. of Architecture 3+ decades ago - Sci-Arc moved its campus to the Santa Fe building on what was the fringe of downtown central business district about 10 years ago to an abandoned freight forwarding facility in what is now the arts section of LA.
I went back for a celebration of the 40th year of its founding in April 2012 - and was utterly amazed at what had happened there in the intervening years since I left Cali.
There is one section adjacent the arts district that is indistinguishable for downtown Guadalajara - another section that is predominantly LGBT bars and hangouts, then the arts section, restaurants in rehabbed buildings and on and on.
To hear of increasing crime in a section of LA that has this mix of stuff going on is not surprising. When I was there a couple years back I did not feel threatened but I could sense that there was a tension if you will with guys like me - WASPy as they get - being looked at as if I were the odd ball - which in reality I was.
This reality hit when near the Staples Center at Olympic and Spring Streets at 3 in the afternoon in broad daylight before a home town basketball crowd - I look out over my dashboard of my rental car (which by the way are relatively cheap in LA because EVERYONE drives to get about) crossing the street are leather bound full on trannies of African male persuasion in full regalia. All I could say to meself was - Lord get me outta here before you pour down hot coals on this place.
Downtown LA is just a lost place - morally corrupt beyond measure.
And you have to see it to believe it.

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Comment by Dani W
2015-07-30 14:31:13

God forbid there should be a little diversity in California. eyeroll.

Sounds like a happening place to me.

Comment by Mafia Blocks
2015-07-30 15:11:23

Right…. “diversity”.

Did you ever wonder why so many realtors involved in crime are in CA?

Comment by cactus
2015-07-30 09:08:59

particularly in Downtown Los Angeles, where all manner of law-breaking shot up.”

Prop 47 ?

Comment by cactus
2015-07-30 09:17:03

House next door still for sale, got a flyer in the mail reduced price.

RE Its very slow to sell around here 93021. Boom is over.

Comment by Ben Jones
Comment by Mafia Blocks
2015-07-30 11:59:00

It’s good to see falling housing prices regardless of location but in particular CA.

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Comment by Ben Jones
2015-07-30 03:36:10

‘Budget motels last resort for California families out of options’

‘The problem of children growing up without a secure place to call home is growing worse nationwide. In 2013, an estimated 2.5 million children lived in run-down motels, cars and shelters, on friends’ and relatives’ couches and on the streets, according to the National Center on Family Homelessness, a nonprofit research institute. That was up 8 percent from 2012 and 67 percent from 2006.’

‘In California, a higher percentage of children are homeless — 5.7 percent — than all other states but Alabama and Mississippi, according to the National Center. They number more than half a million. Budget motels have become the last resort for those with nowhere else to go.’

‘The situation is particularly stark in San Bernardino County, where 9 percent of public school students are identified as homeless, compared with 4.3 percent in Los Angeles County.’

‘Life at the Country Inn is little different from similar run-down, midcentury lodgings across the street and in other parts of town.’

‘The children here pay no attention to the meth merchants on the sidewalks. To the emaciated woman who furiously paces the upper deck, naked. To the men in nice cars who drive slowly through their makeshift play area scanning the doorways for prostitutes.’

Somebody here yesterday was saying how affordable most of California was. Sounds like paradise. I bet the SBC air is really comfortable.

Comment by Dman
2015-07-30 06:49:59

I get the impression that California is like Florida - drive a few miles away from the coast, and the reality behind the façade appears.

Comment by taxpayers
2015-07-30 07:59:16

inland FL is scary
got teeth?

Comment by Mafia Blocks
2015-07-30 08:07:55

“I get the impression that California is like Florida - drive a few miles away from the coast, and the reality behind the façade appears.”

Same in NYC. You better be packing something.

Comment by AmazingRuss
2015-07-30 09:14:06

There is more white trash in the Central Valley than anywhere else in the world.

Comment by scdave
2015-07-30 11:27:42

drive a few miles away from the coast, and the reality behind the façade appears ??

Not true…There are many nice little towns…Winters is just one good example…

Comment by Dman
2015-07-30 12:09:09

True, Florida’s small towns are humble but honest (most of them). I love the old south architecture. Some rural areas give off a bad vibe, but that’s just drive through country anyway.

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Comment by Ben Jones
2015-07-30 03:54:55

‘Everything is affected by the price of oil, and as of Monday, the price of oil was lower than it has been since the dramatic price drop at the start of 2009. Park County and Wyoming as a whole depends on the price of oil for tax revenue, employment and the benefits that come from having oil workers and their families reside here. When the industry takes a dive, the impact is far-reaching.’

‘The oil from Park County traditionally sells cheaper than other oil, topping out at $70 per barrel last year, said Park County Assessor Pat Meyer. “The kind of oil in Park County is not the sweet stuff,” Meyer said. “Park County is mainly oil — oil is our big boom.”

‘The drop in oil prices hit Park County a little later than the rest of the country, with minimal impacts to the price in 2014. “So this year I wasn’t too concerned; we were right where we were last year and not down much in oil production,” Meyer said. “The big hit was back in October, the last quarter went down quite a bit.”

‘In terms of how much tax revenue would be lost under those conditions, Park County’s revenue would drop by about $2.5 million, roughly 10 percent of their total, Meyer said. The county’s current property tax income is $10.4 million and that would go down to about $8 million, he said.’

‘Those estimates are based under the assumption all of the wells will continue producing, Tom Fitzsimmons said, noting that some oil wells will stop production when oil prices get too far below $50 per barrel.’

“If they can’t afford to produce, the wells and the revenue goes away entirely,” Fitzsimmons said. “This week, we showed an increase in inventory. There is more oil coming on than we are consuming.”

‘In 1982, local oil sold for $29.46 per barrel on average — making up 90 percent of the county’s valuation at $680.5 million. Then, just five years later, it dropped to $11.31 per barrel and made up 72 percent of the total county valuation at $233.5 million.’

“The ’80s were terrible; they (the county) cut everything shortly after that,” Meyer said. “It was a big drop — we had to cut people from the offices, cut vacation times; they were just cutting everything.”

‘The downturn 30 years ago had an impact on the housing market as well. “In the ’80s there were foreclosures all over town and houses boarded up,” said Rocky Mountain Oilfield Services owner Dan Groves. “All the major companies left Powell and never came back.”

Comment by taxpers
2015-07-30 04:02:22

Cutting gov workers vacations !
Oh the humanity

Comment by rj chicago
2015-07-30 07:57:01

Yep the 80’s oil city busts were really bad - cut a diaganol from Calgary to Houston through Montana, WY, Denver, Amarillo to the Gulf Coast and what you saw was a lights out moment the likes of which I had never seen in my young life at the time. It was for that reason that I lost my job there in the Big D, CO and ended up moving to the utopian paradise called Chicago ILLANNOY. Oil busts have consequences the likes of which no one is immune.

Comment by Ben Jones
2015-07-30 03:59:10

‘He’s hoping to flip a $275,000 home in central Phoenix for $700,000, but he said the average person can start smaller.’

Hmmm, I wonder if there’s some appraisal fraud going on around these parts:

‘The Phoenix housing market posted strong gains in June in terms of volume, according to the latest data from RL Brown Housing Reports. But new home prices dropped and existing home prices are flat, according to the Scottsdale-based real estate research group.’

‘Compared to last June, housing starts by builders were up 46.5 percent. The number of new and existing home sales were both up 24.2 percent.’

‘That’s good news for a regional housing market that has grappled with some soft indicators. While there were gains in the number of sales and permits taken out by builders, new home prices dipped 3 percent in June versus June 2013.’

‘The median new home price in the Valley was just under $291,000.’

Comment by Ben Jones
2015-07-30 04:05:09

‘While downtown Raleigh’s condos boom, its retail busts ‘

‘Other stores—including Blake Street Shops and Studios in City Market, Phydeaux in Seaboard Station and the Kindred artisan boutique on South Wilmington Street—have had to relocate or close their doors recently because, the owners have said, their rents became too high and they weren’t getting enough foot traffic to keep up. Gift shop Cimos and clothing/convenience store Estate Essentials went online-only; Glenwood South boutique Cat Banjo will do the same at the end of the month.’

‘Meanwhile, the owners of CU Fitness (a gym) and Artcraft (a sign shop), both on Hillsborough Street, are worried they’ll be pushed out of downtown as well, if York Properties, which owns their spaces, announces other plans for that block. Respective owners Alison Katschkowski and Jim Jackson rent month-to-month at a below-market rate; they say York hasn’t indicated what it plans to do yet, but Jackson says he won’t be surprised if he comes to work one day and finds a notice on his door telling him to be gone in 30 days.’

‘As rents downtown continue to climb—they’re nearly double what they were a decade ago—local retailers fear they’re going to be priced out. The foot traffic in many areas hasn’t kept pace with all the newly built apartments—and their parking accommodations—that are driving up rental prices to unaffordable levels.’

‘This doesn’t surprise Ann Marie Baum. She opened her own furniture store, Cherry Modern, on Glenwood South in 2004; her monthly rent was in the low-$9,000s, but she took the risk because she expected other stores to open up around her and drive business.’

“The whole city was telling us, ‘There is going to be so much retail down here, you’re in the place to be,’” she says. “We were paying crazy money, and they were like, ‘It’s coming,’ but all that came were bars and restaurants, nothing else.”

Urban living = barflies.

Comment by Mafia Blocks
2015-07-30 06:35:18

Bar flies, crime, paranoia, graft, theft, corruption, sexual predators. Yup. City life is so appealing.

Comment by redmondjp
2015-07-30 10:27:46


The greed of commercial property owners . . . and my own observation says that they would rather sit on empty space than keep rents reasonable and have fully-occupied buildings.

This kills the local small businesspeople - maybe that is by design, who knows.

Comment by CHE
2015-07-30 11:41:40

Seeing that happen all the time where I live in West Hollywood. Old businesses being pushed out because of huge rent hikes and new businesses lasting just a few months and then months and months of empty space again.

There must be some advantage to sitting on empty commercial space because there’s so much of it in prime areas on Sunset and Santa Monica Blvds.

Comment by Ethan in Northern VA
2015-07-30 13:29:29

But the chain food places seem to be able to handle it? That seems to be the only business that really works?

I seem them EVERYWHERE and they’re usually busy. Five Guys, Chipolte, Moes, Noodles & Co, Baja Fresh, on and on.

Where I live, taco bell 3 tacos costs the same price as say noodles & co food. It’s strange. Fast food prices have definitely gone way up.

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Comment by scdave
Comment by Ben Jones
2015-07-30 04:11:54

‘The increases in the median price for a home in Flagstaff appear to be slowing, Brighton said. The median price of a home in Flagstaff in June was $335,000, a 10 percent increase from the previous month, but only a 4 percent increase over the median price of a home in June 2014. Prices for the first half of 2015 increased by 5 percent to $319,000 compared to some of the double digit gains the area has seen in past months.’

‘The price rise slowdown may be due to the number of homes that are now on the market, he said.’

‘Inventory levels have also increased with the summer weather and as home owners see other homes selling, Brighton said. There is currently a five-month supply of homes on the market price at or below $335,000. About a third of those homes are currently under contract.’

‘Homes priced above $335,000 are not selling as quickly, he said. There’s about a 13-month supply of homes priced over $335,000 currently on the market with less than 20 percent of them under contract.’

Comment by Dman
2015-07-30 06:59:55

“‘Homes priced above $335,000 are not selling as quickly, he said. There’s about a 13-month supply of homes priced over $335,000 currently on the market with less than 20 percent of them under contract.’

Flagstaff is a nice little town, but it sounds like they went overboard on the high end housing, just like everywhere else. I wonder how many houses in the area are still waiting to be foreclosed on?

Comment by rj chicago
2015-07-30 08:01:59

And DMan.
The thing that has always had me wondering about Flag is the fact that where is the viable employment in norther AZ to support these prices. What I see everytime I am up there are employees at the A and P or whatever market that is, a lumber yard, NAU employees and that is about it - where is the cash coming from to support 335 k house prices? Alot of I-40 related business in blow by country as well.

Comment by Dman
2015-07-30 09:16:27

Maybe the college and some professionals, but I’ve wondered the same thing. Maybe they were banking on the snow birds?

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Comment by rj chicago
2015-07-30 10:23:43

Recall too that the Canadians because the loonie is taking a hit against King Dollar are vacating as well.

Comment by CHE
2015-07-30 11:45:27

Snowbirds in Flagstaff? It gets awfully cold and snowy in the winter at 7k feet.

Comment by Dman
2015-07-30 12:34:12

I think the residents of both Chicago and Detroit would gladly trade winters with Flagstaff.

Comment by rj chicago
2015-07-30 13:50:42


Comment by Ben Jones
2015-07-30 04:18:16

‘The massive valuations of the latest Internet sweethearts has some seeing a bubble in the making. These high valuations include Uber at $50 billion, similar to FedEx, Salesforce, Caterpillar and Target; Airbnb at $25 billion, similar to utility Pacific Gas & Electric and Netflix; and Snapchat’s $15 billion, which is roughly equal to Whirlpool and Tyson Foods.’

‘Investors aren’t the only ones who get hurt when a bubble pops.’

‘IT employment, excluding tech manufacturing, at 3.527 million in 2001, declined about 5% or by nearly 200,000 jobs in the following year, according to data by TechServe Alliance, an industry group. IT employment didn’t regain its 2001 level until 2005.’

‘Meantime, the bubble also crushed computer science enrollments. In March 2000, the NASDAQ composite index reached a historic high of 5,048, at just about the same time undergrad computer science enrollments hit a peak of nearly 24,000 students at Ph.D.-granting institutions in the U.S. and Canada, according to data collected by the Computing Research Association in its most recent annual Taulbee Survey. (There are many more computing science students enrolled at non-Ph.D. schools.)’

‘By 2005, computer science enrollments had halved, declining to just over 12,000. Remarkably, it has taken nearly 15 years to reach the earlier enrollment peak.’

‘On July 17, the NASDAQ hit its highest point since 2000, reaching a composite index of 5,210. In 2014, computer science undergrad enrollments reached nearly, 24,000, almost equal to the 2000 high. They may well be past it now.’

“It’s often difficult to recognize a bubble while you’re in it, as unreasonable optimism and speculative greed lead to the belief that a ‘new paradigm’ will validate wildly aggressive projections,” said Bruce Bachenheimer, clinical professor of management at Pace University and executive director of its Entrepreneurship Lab. “It certainly appears that certain sectors of the market are due for a major correction,” he said.’

‘If we are in a bubble, the impact on computer science enrollments — similar to what happened in 2000 — won’t be immediate. “The decline in enrollments typically lags about two years the decline in the industry and employment,” said Hal Salzman, a professor of planning and public policy at Rutgers University, who studies the science and engineering workforce. “So if this is a bubble, students would be smart to anticipate it in their choice of major.”

Comment by Ben Jones
2015-07-30 04:36:39

‘A report by the research firm Mattermark showed venture funding for US startups jumped to $US17.1 billion ($A23.05 billion) in the second quarter from $US15.65 billion in the previous three months.’

“They (investors) are looking for that alpha,” Deeter said at a forum on the state of venture funding. “It’s worked so far, but when the music stops they will pull back lightning fast.”

‘The discussions come amid debate over the growth in “unicorn” startups, those valued at more than $US1 billion, which may shake up some sectors or which may simply be overvalued. According to the research firm CB Insights, there are now 122 private companies valued at $US1 billion-plus and worth a collective $US4,459 billion.’

‘Of particular concern is the huge growth in funding for privately held startups which delay the more conventional approach to raising capital through initial public offerings on the stock market. Until recently most firms raising hundreds of millions of dollars needed to go to the public stock markets and open themselves up to more scrutiny in their finances and strategy.’

‘An IPO requires “really rigorously evaluating the financials,” said Dayna Grayson, a partner in New Enterprise Associates, which has investments in about 300 tech and healthcare firms. “When they are doing a private placement, they are looking at the financials a couple of times and then they are out marketing the deal,” she told the Aspen forum.’

“It’s very different. They can delay the IPO and they can delay the financial rigour that they might otherwise have to put into the company.”

‘Nevertheless, Deeter said many venture investors are still being seduced by the lure of high growth, even if there is no clear path to profits. “We’re not value investors. We fall in love and close our eyes,” he said. “We believe we’re getting bailed out by growth rates and we’re seeing spectacular growth rates.”

‘Durban said he felt”constrained by financial logic and linearity,” adding that he sees many tech firms that are “fundamentally mispriced” by their cash flow. “When the market feels like this you have lots of liquidity,” he said. But if the stock market starts to fall, he said, the privately-held firms will see values slump “at a much greater rate”.

“So, if the market drops 10 per cent the private market can go down from 30 per cent to no-bid,” he said.’

Comment by Dman
2015-07-30 07:14:54

dot com bubble dot two.

Comment by AmazingRuss
2015-07-30 09:25:41

It’s on. I see it all around me, and I see the tech job market faltering. Chinese investment is propping it up… Most of the people hiring are Chinese backed. Time to repatriate that money we gave them for plastic crap, returning broken promises of ever greater riches.

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Comment by taxpayers
2015-07-30 06:49:21

These high valuations include Uber at $50 billion,
The entire world taxi market is 100 billion
=about 4 billion for uber
now that they’ve deregulated the market there will be no profit

Comment by Ben Jones
2015-07-30 04:40:13

‘Who is to blame for San Francisco’s affordable housing crisis? According to SPUR’s Gabriel Metcalf (“What’s the Matter With San Francisco?”), it’s the city’s progressives. Metcalf argues in a story last week that San Francisco progressives had “a fatal, Shakespearean flaw:” they “decided that new development, with the exception of publicly subsidized affordable housing, was not welcome.”

‘This meant that “instead of forming a pro-growth coalition with business and labor, most of the San Francisco Left made an enduring alliance with home-owning NIMBYs.” Metcalf concludes that this led to the city’s acute housing shortage, and skyrocketing rents that prevent progressives not currently living in San Francisco from moving here.’

‘But while I agree with much of Metcalf’s arguments about housing development, his article includes a glaring omission: the role of realtors.’

‘Realtors, not anti-housing progressives, are far and away the party to blame for San Francisco’s affordable housing crisis (by “realtors” I mean those associated with the CA Association of Realtors or local associations that lobby in Sacramento against tenant protections).’

Comment by Mafia Blocks
2015-07-30 06:05:37

‘Realtors, not anti-housing progressives, are far and away the party to blame for San Francisco’s affordable housing crisis (by “realtors” I mean those associated with the CA Association of Realtors or local associations that lobby in Sacramento against tenant protections).’

Review the executed documents, follow the money, file the charges.

Comment by Rental Watch
2015-07-30 08:54:51

“Rents are skyrocketing in San Francisco because state law prevents the city from restricting rent increases on vacant apartments. Realtors get all the credit for putting the city in this policy straitjacket. In 1995, realtors’ won passage of the Costa-Hawkins Rental Housing Act in 1995 (CA Civil Code Sections 1954.50 et seq.), making housing forever less affordable in rent-controlled jurisdictions across California.”

What a joke of an argument.

Let me get this straight.

Realtors are to blame for high rents because they lobbied for a landlord’s ability to raise rents without limit after a tenant leaves?

There are hundreds, if not tens of thousands of places around the country without such limits, and they do not have the same kind of rent growth as San Francisco.

The problem is that there is not enough supply. If there was enough supply, landlords wouldn’t have the market power to raise rents as high and as quickly.

Comment by Mafia Blocks
2015-07-30 08:58:09

SF is full of excess and empty rentals.

Comment by Bluto
2015-07-30 11:04:01

That authors math skills are a bit weak..

“Absent Costa-Hawkins, San Francisco rents on most vacant apartments would be at least 25-50% cheaper today. In cases like the Hayes Valley 1 bdrm units now advertised for over $4000, the rent would likely be 75%-100% less.”

so at 100% less rent would be free??

Anyway, don’t know what the answer is, most of S.F. was built out long ago and the city is surrounded by water on 3 sides. There was a fair amount of building going on there when I was a kid but that was 50 years ago. Hard to say what vacancy rent control would have done had it been enacted 20 years ago or if the law would have passed a vote then. I rented an apartment in S.F. back then and it was affordable…but no way I could do it now and will never move back to my hometown, left 19 years ago before it became insanely expensive. When the current tech bubble pops it could get interesting, when the dot com bubble imploded in 2000 or so suddenly S.F. apartments were readily available at much lower rates.

Comment by Ben Jones
2015-07-30 04:46:30

‘Short-term vacation home rentals are big business. The CAST report details how 10 towns — Breckenridge, Crested Butte, Durango, Estes Park, Frisco, Jackson, Mt. Crested Butte, Ouray, Park City and Steamboat Springs — are dealing with the challenges, and it suggests communities learn from each other.’

‘In 2014, more than 2.1 million rentals were listed on the top-three hosting sites — AirBnb, Homeaway and FlipKey — and more hosting sites pop up all the time.’

‘Of the 10 towns, Breckenridge had the second-highest portion of housing used as vacation rentals, with 41 percent of 7,187 estimated units in 2014, behind Mt. Crested Butte’s 52 percent.’

‘Breckenridge’s largest employers came to officials at the start of last ski season and urged action. “Certainly short-term online rentals can’t be helping the situation,” Waldes said, but the shortage could be caused more by landlords raising rent as the economy has improved and with increased property values.”

‘Mindy Brewer, who has lived in the Wellington neighborhood with her family for the last 10 years, said the proliferation of websites like AirBnB has affected Wellington dramatically in the last year or so. She said the Wellington’s HOA dues have risen, and neighbors might be breaking the rules because they’re struggling financially.’

“People are just getting off track with affordable housing and what that was supposed to create,” she said. “Everybody’s just forgetting.”

‘As a property manager, she said she gets 100 inquiries in an hour after posting a long-term rental listing, and sometimes people will offer to pay $50 more a month because they’ve gotten so desperate for housing.’

‘The vacation-rental industry has grown beyond its sharing economy status and no longer uses only spare bedrooms, homes empty while owners are on vacation and second homes that owners visit a few times a year.’

‘Community leaders have said they want to continue supporting those doing business legally, like Tammy Ramsay, who manages five vacation rental properties in Keystone. “The short-term rentals create lots of work for the people in our county,” she said, from housekeeping, maintenance and landscaping teams to massage therapists and home chefs. “Short-term brings so much more than rental income to the owner.”

Comment by Ben Jones
2015-07-30 04:50:50

‘No wonder you can’t find an apartment in this town. Airbnb is gobbling up a huge chunk of apartments in some of the city’s hottest zip codes — snagging as much as 20% of vacancies in parts of Manhattan and Brooklyn, according to a new study by two affordable housing advocates.’

‘The East Village led the list with a whopping 28% of its units going as illegal hotel rooms on the popular home-sharing site, according to an analysis from New York Communities for Change and Real Affordability For All.’

‘The 20 most popular Airbnb neighborhoods — in Manhattan, Brooklyn and Long Island City, Queens — have lost 10% of their available housing units to Airbnb, according to the study.’

‘Airbnb has maintained that its users are overwhelmingly tenants looking to make a quick buck when out of town, but the study found that the average rental was available for 247 days a year, and rented 109 nights a year.’

‘That number would support criticism that huge numbers of shady landlords were using the website to convert rental units into illegal hotel rooms, exacerbating the city’s housing crisis to make a profit.’

‘It’s illegal to rent out your apartment when you are not home, but you can rent out a room when you are, according to the law. The study — which mined Census data and the company’s website — found that close to 60% of the nearly 27,000 available units were for “whole apartments rentals,” which means they are illegal.’

‘But Airbnb blasted it as “lies, fuzzy math and faulty stats.” “The notion that 1 in 4 apartments in the East Village is rented via Airbnb is not just ludicrous, it is also not supported by a single piece of data,” said a spokesperson.’

Comment by Ben Jones
2015-07-30 04:55:34

‘Ben Hoffman of Brighton was looking for a reprieve from last winter’s harsh weather when he and a friend booked a four day trip to Miami. They thought they found a good deal on an apartment through Airbnb.’

‘But their expectations were quickly dashed. “We were basically staying in what equated to a prison cell,” explained Hoffman. “Bed bugs. No air conditioning.”

‘The high rise apartment building was cluttered with construction vehicles. The washing machine had a sign taped to it indicating it was broken.’

‘Hundreds of other upset travelers have reached out to the Better Business Bureau. Some called Airbnb a “scam with false prices and dangerous houses.” Others complained of poor customer service.’

‘Hoffman believes there needs to be a better system between Airbnb and the people who are renting the units. “I think there needs to be some level of validation that the units are being listed legally,” he said.’

‘Some legislators on Beacon Hill agree. “Here in the Commonwealth in the last two years, it has really exploded,” said State Representative Aaron Michlewitz of Boston’s North End.’

‘He’s filed a bill that would require property owners to register short term rentals. “The worst case scenario that we are seeing– basically a person goes, rents it, never stays there,” said Michlewitz. “He just goes to IKEA, dresses up the apartment and just rents it out on a daily basis.”

My contention is if it weren’t for the housing bubble, this wouldn’t be going on.

Comment by Ethan in Northern VA
2015-07-30 13:40:07

Could a renter win doing this? Rent a place just to re-rent it out?

All these landbaron wanna-be landlords never take care of their properties, they just expect payment. Hmmm.

QR code reader on the door and a backend system to automatically call the cleaning people when people check out and email access QR code images for check in.

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Comment by Ben Jones
2015-07-30 05:03:42

‘One longtime Sunnyvale resident, Lorraine Hay, said she feels strongly about the city not requiring hosts to be present for renters.’

“We go other places, we travel, but we like to come home to Sunnyvale. In our absence we offer our home to others,” Hay said. “A primary policy question for the city is, ‘Are short-term rentals appropriate and compatible with residential districts?’ In my humble opinion, absolutely yes. Are we interested in staying at our home and hosting? Absolutely not, thank you. I want to enjoy the freedom of my years that I have left. Our guests are perfectly capable of taking care of themselves.”

‘Planning Commission Chairman Russel Melton was worried about worst case scenarios that could adversely affect neighborhoods when those renting out their homes were not around to watch over their guests.’

“So this is the worst of the worst, you rent out the house and it turns out to be an all-night party for a bunch of teenagers or a hackathon, or it’s a ‘churn and burn’ of strangers and neighbors are worried about their children,” he said.’

This is funny:

‘Are we interested in staying at our home and hosting? Absolutely not’

But your neighbors get to stay home with your guests, huh?

Comment by Mafia Blocks
2015-07-30 06:29:49

Last year I worked with a geologist who used airheadBNB to cop a room in Brooklyn. His wallet got lifted by another airheadBNB occupant who then racked up his credit cards.

Failed business model.

Comment by Ethan in Northern VA
2015-07-30 13:43:10

I stayed at a lawyers house. One week through the system then 3 weeks outside. He was approaching it all laywer like and putting up signs for emergency exit and all that. He said that anything under 4 days of stay and the sanitization work was too much given the money earned. Cleaning all linens and bathrooms. Each visitor was assigned their own bathroom and he got bitchy when I used to downstairs one while he was on the phone near my assigned one. I was trying to be nice *shrug*

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Comment by Mafia Blocks
2015-07-30 14:20:05

They can’t be trusted.

Comment by rj chicago
2015-07-30 08:24:27

I was in NYC back late April / Early May this year - went down to what is left of Little Italy at about Broome and Mott Streets - still great if you have the $$$$.
Earlier that day a friend met me at a breakfast place called the Egg Shop on Elizabeth at Broome - Google map this intersection and you will see at least on street view an old brick building that was (yep it is gone) a parking garage across the street from Egg Shop.
Reason I bring this up is this - the lot is now a hole in the ground awaiting a 5 unit condo building designed by Japanese architect Tadao Ando - his fees ain’t cheap - this led me to ask the proprietess of the Egg Shop - what with the hole across the street? She went into great detail and when I asked price she said to me each unit starts at 5 million without batting an eyelash.
Now one wonders why the AirBnB’s of the world exist.

Comment by Ben Jones
2015-07-30 05:17:23

‘Homes that are underwater — mortgaged for more than they’re worth — represent a much smaller fraction of the housing market than they did a few years ago, according to a new report from RealtyTrac. However, some parts of the country are doing much better than others.’

‘The national average, at 13.3 percent, isn’t all the way back to normal, but it would sound awfully good to places like Tampa, Cleveland, Las Vegas — or Chicago, where almost a quarter of mortgages are still underwater.’

‘Ironically, one culprit may be state and local homeowner protections that make it harder for banks to foreclose, according to Daren Blomquist, vice president for Realty Trac. “You have many properties that are kind of sitting in foreclosure limbo,” he says. “And not only are those properties likely underwater, they’re likely dragging down the values of surrounding homes.”

‘Eight ZIP codes on Chicago’s South and West Sides have underwater rates above fifty percent — more than three times the rate for the Gold Coast area.’

Comment by Ben Jones
2015-07-30 05:20:08

Here’s something from this report that I wonder if the media will notice:

‘The universe of equity-rich mortgaged properties — those with at least 50 percent equity — decreased on a quarter-over-quarter basis for the second straight quarter, down to 10.9 million representing 19.6 percent of all properties with a mortgage at the end of the second quarter. That was down from 11.1 million representing 19.8 percent at the end of the first quarter and down from 11.3 million representing 20.3 percent at the end of the fourth quarter, but still up from 9.9 million representing 18.9 percent at the end of the second quarter of 2014.’

“Although the number of equity rich homeowners with a mortgage has increased by 1 million compared to a year ago, that number dropped by nearly 300,000 between the end of 2014 and the middle of 2015,” Blomquist added. “The number of homeowners with a mortgage who have at least 20 percent equity has dropped by more than 900,000 during the past six months, indicating that homeowners who have gained substantial equity thanks to the housing price recovery over the past three years are taking advantage of that newfound equity. Some are leveraging that equity into a higher LTV refinance or a move-up purchase, some may be downsizing into an all-cash purchase and some may be cashing out of homeownership altogether. Those homeowners cashing out of homeownership altogether would explain why the nation’s overall homeownership rate continued to decline in the second quarter even as homeownership rates among millennials increased.”

Comment by Dman
2015-07-30 07:26:32

“Those homeowners cashing out of homeownership altogether would explain why the nation’s overall homeownership rate continued to decline in the second quarter even as homeownership rates among millennials increased.”

Everything I’ve read says that fewer and fewer millennnials are buying. In fact, their home ownership rate is falling faster than any other age group. Is this guy thinking a slight uptick in the second quarter is some kind of long term trend?


Comment by Rental Watch
2015-07-30 09:00:47

That will be interesting to follow–thanks. From the table they provide, it looks like there no real seasonal trend. Some quarters up, some down. The only thing notable is that there have been two down quarters in a row…will there be a third?

Comment by rj chicago
2015-07-30 08:27:34

yep - and as I posted yesterday - Mayor Tiny Dancer ‘Rummy’ is in a position to impose a property tax increase to feed the pension and public school debt - becauase it is as the Mayor says time and again - it is for the children.
That meme - it is for the children - is such a lie it just makes me wanna puke!!

Comment by In Colorado
2015-07-30 08:54:30

Why aren’t voters revolting? Why won’t they vote in something like Prop 13 or TABOR?

Comment by rj chicago
2015-07-30 10:27:12

Because the voters here have been sitting in a pickled solution of liberalism and FSA they don’t know any other way.
Ask a hard core Chicago resident why they continue to live here and they can’t really give you a good answer ‘cepting - my family lives here. Sheesh!!!
I am heading to CO again this weekend to look about in an attempt to be outta here sooner rather than later.

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Comment by In Colorado
2015-07-30 13:30:48

Because the voters here have been sitting in a pickled solution of liberalism and FSA they don’t know any other way.

So was California, and it voted for prop 13.

Comment by rj chicago
2015-07-30 13:52:49

Prop 13 - look up the date of its passing and report back - Cali has changed ALOT in the interim.

Comment by In Colorado
2015-07-30 14:40:27

Prop 13 - look up the date of its passing and report back - Cali has changed ALOT in the interim.

Perhaps, but I recall it being considered “liberal” even back then (can you say Governor Moonbeam? But you will have no doubt noticed that voters have not repealed it.

Comment by taxpayers
2015-07-30 12:44:39

me want TABOR
VA used to be frugal, now spendthrift like the rest

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Comment by Mafia Blocks
2015-07-30 06:14:15

Comment by Professor Bear
2015-07-30 00:10:00

We live in an era when debt is easily acquired but difficult to repay.

Solution: Don’t borrow, prices fall. It’s the borrowing that drives prices to inflated levels which necessitates the borrowing in the first place. Vicious money-losing circle.

Comment by Puggs
2015-07-30 09:13:24

Most people who borrow $400,000 or more for a crap shack don’t have the experience it takes to whittle down a nut that size. They’ve never scrimped, saved or lived a scorched earth lifestyle to even pay off $50,000.

They’ve been taught you’ll have payments your whole life and only care about “what’s this gonna cost me per month??”

Comment by In Colorado
2015-07-30 10:10:36

They’ve been taught you’ll have payments your whole life and only care about “what’s this gonna cost me per month??”

Not defending $400K crap shacks, but couldn’t the same be said for renting?

Comment by Puggs
2015-07-30 11:43:38

I guess the same could be said for anything you don’t budget for. For most young’ins with no down payment or savings renting is way cheaper than buying. The minute you buy a house with no savings or down payment Murphy will move in with a busted heating A/C and needing a new roof.

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Comment by Mafia Blocks
2015-07-30 13:05:45

How could it considering rental rates are half the monthly cost of buying at current grossly inflated asking prices of resale housing?

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Comment by Ethan in Northern VA
2015-07-30 13:47:53

My rent is $2125/mo. Similar units are now asking $2300-2400/mo. Units for sale ask (and get a lot of traffic :-( around $460-480K

Units are about 12 years old or so. I think all appliances have failed and I see major things being replaced (HVAC Systems) with the neighbors.

Originally $320-330Kish.

Comment by Mafia Blocks
2015-07-30 13:58:58

Sounds like housing prices and rental rates have a long way to fall in NoVA.

Comment by Senior Housing Analyst
2015-07-30 06:16:42

Chevy Chase, MD Housing Prices Fall 21%


Comment by taxpayers
2015-07-30 06:53:22

inventory flat w EVEN price per sq ft down
kinda unusual
inventory is jumping in the area.

Comment by Northern VA
2015-07-30 10:48:27

Chevy Chase is an extremely small area with very wealthy (old money) people. Those statistics could be thrown off by a single sale.

Comment by Mafia Blocks
2015-07-30 12:30:58

Prices are falling across NoVA.

Comment by taxpayers
2015-07-30 12:45:38

NVA where u at?
Im in 22151 near the beltway

Comment by salinasron
2015-07-30 07:13:12

“. He’s hoping to flip a $275,000 home in central Phoenix for $700,000, but he said the average person can start smaller.”

I have a friend who inherited a house on Coronado Island SD, and two appt bldgs in SD. He did a property exchange and sold some in 2006. Bought three properties in Phoenix AZ. He has been underwater on all since the market dropped in 2008. He tried to sell his condo (just about breaking even on rent with condo fees raising) a year ago and could only get $100k less than he paid. His house (that he lives in): just removed all the popcorn ceilings, repainted the inside, and had someone lay 2400 sq.ft. of a wood look floor tile. Now he is to start painting the outside. He has to get around $500K on the sale to break even and so far nothing in his hood is selling near that price (house near by Scottsdale area). He says if he can’t sell he will rent it out next May. In the meantime he and wife are on their 3rd cruise and 2nd vacation outside the US.

Comment by taxpayers
2015-07-30 08:02:23

he’s betting hilary will make u pay his tab

think FREEer hc and more penetration home mort relief for victims

Comment by Mafia Blocks
2015-07-30 08:05:45

He’s better off selling it for whatever it will fetch right now. Wait? The price goes lower.

Comment by Puggs
2015-07-30 09:15:22

Ahhhh, life be good. It’s 2006 all over again for these folks!

Comment by In Colorado
2015-07-30 08:04:01

‘We like the San Fernando Valley and we like the City of Los Angeles. There is unlimited demand (for housing.)’


I guess they’ll be saying “We never saw it coming” soon enough.

Comment by Mafia Blocks
2015-07-30 08:31:37

Emptied pocketed debt enslaved fools.

“California Cities Cracking Down On Summer Rentals”


Next up? California home-debtors offer 2-hour rentals to hookers and johns.

Comment by Senior Housing Analyst
Comment by Mafia Blocks
Comment by Dman
2015-07-30 10:10:08

CNBC (Diana Olick):


“Nearly half the homes in the nation’s top markets are actually losing value.”

I guess our resident senior housing analyst was right all along.

Comment by Northern VA
2015-07-30 10:46:12

Everyone knows that the recovery has been heavily tilted towards the wealthy. Middle class wages have stagnated. Is it any surprise that housing in the most desirable areas have shot up while those areas that the 99% live in have not? I posted these stats here the other day. In Northern VA unless you make 200k-250k+ household income, you cannot buy in good areas. The places where normal people with household incomes of 75-125k can live have not increased. I know a lot of people that would like to move up but their home equity is only building with payments, their home price has not kept up with inflation so to move to a better location with a shorter commute they would have to come up with a lot of cash. Instead, they just stay in their house with their low payment.


Comment by Dman
2015-07-30 11:43:49

“Instead, they just stay in their house with their low payment.”

That may turn out to be the smartest decision they ever made.

Comment by Senior Housing Analyst
2015-07-30 12:27:09

Don’t make the error that housing prices are correctly priced anywhere. Housing prices are grossly inflated irrespective of location.

Comment by rms
2015-07-30 23:35:46

“I guess our resident senior housing analyst was right all along.”

Yep, and the other guy, (broke azz loosers [sic]), is right on the money too!

Comment by rms
2015-07-30 23:47:22

That family in the video clip… clueless debt donkeys. Both of them need a good deep shagging in several positions with the ‘ol Joshua Tree!

Comment by Senior Housing Analyst
2015-07-30 12:32:00

Alexandria, VA Housing Prices Fall 9%


Comment by crispy&cole
2015-07-30 16:43:05

I am back…I called the top and bottom (2009) for my areas…that said. I think we are in 2004 bubble territory again. I

Comment by Mafia Blocks
2015-07-30 16:45:02

Well…. the bottom is far far lower than 2009 prices.

Comment by crispy&cole
2015-07-30 16:55:45

For my local market we bottomed out in March 2009…oil prices exploded (we are an oil town)…prices locally are now close to their 2005 highs (2006 was the peak).

Comment by Mafia Blocks
2015-07-30 17:19:04

You’re referring to the low of the last 14 years. The bottom is something entirely different.

Here’s the case shiller for reference.


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Comment by Mafia Blocks
2015-07-31 18:10:02


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