A Fascination With A Fiction
It’s Friday desk clearing time for this blogger. “Texas home prices are still out of whack with most big city markets overvalued, according to Fitch Ratings. Looking across the country, prices are most overvalued in Austin, by 20.6 percent, and Reno, Nev., 20.2 percent. Prices in San Antonio are 19.8 percent ahead of where they should be an Houston prices are 14.7 percent overinflated, according to Fitch. Texas residential real estate values are at an all-time high. And in North Texas, prices are growing at a percentage rate of almost three times long-term averages. ‘It is likely to take some time for prices to return to sustainable levels, though we’ve started to see a significant slowdown in growth, especially in Houston,’ said Stefan Hilts, one of the authors of the report.”
“Homebuilder John B. Kennelly is under siege on two fronts with a $38 million foreclosure judgment threatening to send his waterfront homes in Broward and Palm Beach counties to auction, plus a new foreclosure lawsuit over his Boynton Beach project. Builders are scoring loans again, but Kennelly can’t seem to find buyers. Resident Alan M. Hess described the condition of Estates of Boynton Waters in an email to the Business Journal in June: ‘The clubhouse is finished, but a disaster, as it is not maintained. The tennis courts are crumbling and can’t be used. There are 85 homesites; 58 are built and occupied. There are about 12 homes in various stages of constructions – unfinished and have been this way for 4-5 years, and about 8 vacant lots.’”
“That was fairly common at stalled home projects in 2009, but this is 2015 and South Florida is in a residential building frenzy.”
“Just because you paid below the asking price, doesn’t mean you got a deal. Sales prices in Soho and Nolita fell short of asking prices in the second quarter, according to a new Streeteasy report, though the cause is likely to be sellers’ inflated expectations. Asking prices in Nolita have jumped 26 percent year-over-year. Those in Soho rose 23 percent. Given those increases, sellers need not worry much about the 2 percent gap between asking and sales prices found in the report.”
“‘It could be that their strategy is aim high and bring it down only if necessary,’ Streeteasy data analyst Alan Lightfeldt told DNAinfo.”
“Low condominium sales and a slowing market brought developers behind the old Newfoundland Telephone building in St. John’s back to the drawing board last year, scrapping a plan for luxury condos in the derelict structure. Opting for rentals instead of condos is a trend seen in Halifax, according to Chris Janes, senior market analyst with the Canada Mortgage and Housing Corporation. The average price is about $260,000, and Janes said that’s a far cry from the average $400,000 condo in 2012.”
“One of the reasons why the market has slowed so drastically since the peak in condo sales three years ago is an oversaturated market, he said. ‘Builders started getting overzealous, I think, back in 2012,’ Janes said.”
“Guernsey’s housing market is slowing, with the lowest number of properties sold since 1999, according to government figures. The average price for local market houses fell for the second quarter running, down more than £30,000 on the same period in 2014. Rosemary Farish, who sold her house recently, said she carried out improvements on her home expecting it to go quickly but it took 18 months to sell.”
“She said: ‘The first time we reduced it by £20,000, then we reduced it by £40,000 and in the end to sell it we reduced it by £90,000. I felt a bit sick but we’ve got no grief as we brought at a time when house prices where nowhere like they are now and we were able to buy cheaper than expected. It is an incredibly slow market and the only people selling are those that know they have to drop the price.’”
“Property prices in Dubai Marina have dropped by as much as 18 per cent over the past three months, according to the classifieds website Dubizzle. The company’s second-quarter report shows that sale prices for a studio apartment fell by 18 per cent in the Marina to Dh900,000, while three-bed properties dropped in price by 14 per cent to Dh3.6 million. ‘Prices of properties for sale decreased across Dubai, with the exception of studios and two-bedroom apartments on the Palm Jumeirah increasing up to 6 per cent,’ said Ann Boothello, product marketing manager for dubizzle.”
“China’s massive anti-corruption crackdown is being felt in places like Australia as Beijing’s investigators seek the extradition of those the government says have fled with ill-gotten gains. But, back in China, questions are being asked about the real motivations for this campaign as well as the methods being used to interrogate officials who are deemed to be corrupt by the Communist Party. Outside a municipal government office block in downtown Nanjing, ABC’s Foreign Correspondent team came across a passionate demonstration. The protesters alleged their homes had been stolen by unscrupulous developers in collusion with corrupt local officials.”
“‘My house was demolished illegally,’ one woman told Foreign Correspondent. ‘It’s been six years and they haven’t paid me. Give me back my house. ‘They beat me. They detained me. What can I do?’ Stories like this can be heard right across China. In town after town; city after city, people say they have been forced from their homes and paid a tenth of what it would cost to buy a new flat in the area.”
“Australia’s ‘fascination‘ with real estate is leading us into trouble, putting households in ‘risky’ financial positions while starving other parts of the economy. That is the view of one of the most influential economic actors in the country. In a speech on Wednesday, Reserve Bank of Australia deputy governor Philip Lowe pointed to a trend that has wide and dangerous implications for Australia’s economic future. And it’s all based on the ballooning cost of real estate.”
“According to Mr Lowe, that nominal increase in value does not represent a meaningful increase in wealth. ‘Have we really become wealthier as a nation simply because the value of our land has increased?’ he asked, before answering his own question with a bit of sass. ‘The answer would clearly be yes if this increase was because we had discovered more land. To my knowledge, though, this has not happened.’”
“One of the main problems, said Mr Lowe, is that the increased money Australians are spending on housing has not been going into new housing stock, but into existing stock. In other words, land. ‘So our fascination with housing,’ said Mr Lowe, ‘is really, mostly, a fascination with land.’”
“Monash University economist Professor Jakob Madsen acknowledged that Australian households’ obsession with property is in part to blame, he said the banks must also share the blame. He said that in the good times – like the mining boom of the first decade or so of the 21st century – banks tend to lend too readily. ‘When there is a mining boom, there is a lot of money flowing into Australia, and it goes straight to the banks, and the banks don’t know what to do with it, so they lend it out.’”
“If the rise in the cost of houses is driven largely by credit, Professor Madsen said it ’smells a little bit of a bubble.’ ‘And if it’s a bubble, then it’s unproductive. It doesn’t say anything about the future. And so in that sense, the wealth is a fiction.’”
‘According to a recent Web article, San Luis is Arizona’s worst city to live in, but Eloy and Coolidge are close behind. The website, roadsnacks.net, listed Eloy as the second-worst place to live, while Coolidge came in fifth. Once it was finished bashing San Luis, the article called Eloy “a hot mess.”
‘Most notably, it cited big economic problems, a high crime rate, a low adjusted median income and a high housing vacancy rate as to why Eloy ranked so poorly on this list.’
“You can quote me on this, that article is bulls—,” Eloy Vice Mayor Micah Powell said. The city is faced with a plethora of empty houses though, Powell said, and that does hurt the community on a couple of levels. He added that the Code Enforcement Department has made a lot of progress toward getting those properties condemned and demolished, but it’s a time-consuming process, especially tracking down the owners.’
“There’s a lot of pride and love for Eloy — and I’ll stand up for what we’re doing. Eloy is not a ‘hot mess,’ Powell said.”
‘When considering home prices, a buyer can’t do much better than in Eloy, where average homes are valued at only $63,000. That’s the second lowest in the state. But residents earn far less than in other cities, so their mortgage payments might still seem high.’
‘Low median income, a lack of things to do and vacant houses contributed greatly to Eloy’s low ranking, but so did the crime rate. “Coolidge has the seventh-highest crime rate in Arizona, where residents have a 1 in 17 chance of being robbed every year. Homes are the fifth-cheapest in the state ($81,000), and the student-teacher ratio here is far below average as well.”
‘Officials in Coolidge and Pinal County were none too pleased with what the article had to say about Coolidge, questioning the author’s intent and credibility to assess Arizona. “I think this guy is one of those guys who wants everybody living on top of each other and drinking cappuccino on his patio,” said Rick Miller, Coolidge’s growth management director and head of the Coolidge Economic Development Committee.’
Gee, let’s see:
1. 60% Hispanic population.
2. 1/3 of the population lives in poverty.
3. The major employer is a prison.
4. Per capita income is about $9000.
I don’t feel the need to look any further. Do you? Eloy is a piece of Mexico.
Back in 2002 a contractor I worked with in New Jersey and I were discussing if it would be smart to buy a house in the area of Eloy. It would be more than 50 miles from Tucson and have to be at least 50 from the client company in Phoenix to be able to be useful for tax purposes of consulting.
I did not know that area was a trash heap, but it does make sense. Rural areas are economically depressed all over the USA. The job flexibility is better in large metro areas.
Come to think of it, I did quite well by having my tax address in Arizona and consulting on the east coast and west coast, but would have done reasonably good by living in Huntington Beach or cheaper Fountain Valley and be a direct hire at a large company and move between companies every three years. Commuting is not so bad as long as it is under 30 miles to the office. offices near LAX and offices in Orange County.
Now I am going into that mode. 30% savings rate out of my income keeps me living in a small apartment and driving an old car. But it is almost all Roth accounts. Saving your entire net income every three years is a nice concept.
This was posted before but I wanted to add one of the comments:
‘Nevada homes not only were the most overvalued in the country at the peak of the housing bubble last decade, but prices are among the most inflated now, new data show. Homes statewide are 15 percent overvalued, tied for highest in the nation with North Dakota and Hawaii, according to analysts with Fitch Ratings.’
The comment:
‘Y’know, they could’ve gotten the same answers if they only asked someone who actually works in the valley.’
I wonder if Fitch has ever looked at the long-term data, to answer the following question: Once a region has reached 20% overvalued (or 15%, or whatever), on average it will be x months until a correction.
In that data, they should be able to determine whether there ever cases where a market is persistently overvalued for many quarters, or many years? And if so, what are the conditions that support such overvaluation?
In other words, a bit of guidance on whether you should casually walk to the exit to become a renter, or run like hell.
Clearly you haven’t studied the long term data Rental_Fraud. If you did you wouldn’t have overpaid by 3 times for that shanty you bought in 2010.
‘While 763 Dungannon people are desperate for a roof over their heads, a total of 2478 houses in South Tyrone and Fermanagh are registered as empty, one of the highest totals in Northern Ireland.’
‘The glut of properties mostly dot the local countryside, with many of the homes unoccupied since they were built during the housing boom, which ended in 2008. It is believed that many of the homes are being held from sale or rental by investors and developers until the market improves.’
‘And with fewer homes being built, there is no end in sight for the households stuck on the local Housing Executive waiting list, which currently has 1017 families in housing stress. Of the two homeless hostels in the Mid Ulster District, one is oversubscribed, while the other is 90 percent full.’
hilary will move the “poor” into empty homes
SJW
Your “Hillary will violate me” fantasies are disturbing.
wait till she gets in
4 years of steers n queers
w policies to the left of Obama
Whoever gets elected will simply be serving TPTB.
‘Northern Colorado’s boom built on former farmland’
‘Unlike its neighbors, Fort Collins is largely landlocked — meaning there’s little available space left for new development.’
Dead center in the middle of the US and it’s landlocked…….. BWHAHAHAHAHAHAHAHAHAHAHA
I know, it’s terribly amusing. Here, look at all the space that they can’t build on for some reason:
https://en.wikipedia.org/wiki/File:FortCollinsPanorama1.jpg
There is no general land shortage in the United States. Land that’s covered by buildings and pavement probably totals up to about the same area as Ohio. The only shortage that exists is characterized by affordable pricing in a strongly racially-White area that’s conveniently placed for commuting to jobs.
All it takes is one meeting of the zoning board. It’s not like they need to build a canal.
‘Good luck finding a one bedroom apartment in Manteca that has adequate living space for less than $1,000 a month. The city’s four largest complexes that offer one bedroom options all have topped $1,000.’
‘The reason for double digit rent increases in the past two years can be summed up in two words: Bay Area. Saybrooke Point Apartments on Blossom Hill in San Jose gets $2,295 for a one bedroom unit and $6,749 for a three bedroom.’
‘An average apartment in 10-mile radius from San Jose is now renting for $2,829 a month. One bedroom units are at $2,343 up from $1,395 a decade ago. A growing number of renters in Tracy are people who work in the Bay Area and are getting squeezed out of the rental market. Apartment complexes in Manteca are starting to see the same trend as well.’
‘For the long-run, that means the transformation that happened in Dublin of becoming a major hub for condos and apartment complexes due to its proximity to major freeways accessing various job markets could happen somewhere in the Northern San Joaquin Valley as the years roll on.’
‘In other words, up until now it was only those looking to buy or rent a home that fled eastward over the Altamont Pass. Now it is apartment renters as well.’
‘That will have major ramifications for workforce and affordable housing in Manteca that has traditionally meant apartments. Someone commanding $25 an hour can squeeze out people who are earning $10 an hour.’
‘In a nutshell, many Manteca renters may ultimately be squeezed out of Manteca.’
‘Almost one-third of California households, 31 percent, can’t meet their basic costs of living, this, according to a United Ways of California report. The Census Bureau developed an alternative poverty measure to address the shortcomings of its half-century-old traditional poverty yardstick. Known as the Supplemental Poverty Measure, it shows that California has the nation’s highest poverty rate, 23.4 percent.’
‘But, while showing a higher poverty rate for California than the old, official measure, the Supplemental Poverty Measure still indicates a lower rate of poverty than does the study from United Ways of California. The difference is likely due to the fact that the Census Bureau only looked at state-to-state housing costs while the United Ways researchers included a far larger basket of goods and services—all of which cost more in California than in America at large.’
‘Advocates for the poor would be well-advised to look first to examining policies that create artificial scarcity in housing markets. As with the ongoing student loan/college tuition fiasco, subsidizing demand with taxpayer money without first allowing supply to increase is only a recipe for a costly, overheated market.’
“‘Almost one-third of California households, 31 percent, can’t meet their basic costs of living,”
Even the press knows how impoverished Californica has become.
California The Welfare Capital Of The US
http://www.sandiegouniontribune.com/news/2012/jul/28/welfare-capital-of-the-us/
no worries WPA (Super SJW) is kicking in at the pump
The funny thing is, the poors here make as much as the self-righteous flyoverlanders that are so fascinated with them.
“Advocates for the poor would be well-advised to look first to examining policies that create artificial scarcity in housing markets. As with the ongoing student loan/college tuition fiasco, subsidizing demand with taxpayer money without first allowing supply to increase is only a recipe for a costly, overheated market.”
+100
Step #1: Reform CEQA. There need to be serious consequences for those who repeatedly bring frivolous lawsuits on CEQA grounds to delay projects.
Step #2: See Step #1.
The Sierra Club (and others) have made it standard operating procedure to delay projects by suing on CEQA grounds. Many of the lawsuits are thrown out within 6 months, but they all cause delay and extra cost for developers.
If you are not adhering to CEQA, a project should not be approved, but it should not be so easy to delay projects that are following the rules.
And that limits supply of approved lots, increases the cost, and makes selling entitled land very often a seller’s market in CA.
The politicians know this is a problem, but they can’t get out of the way of themselves to actually reform the law. There was an effort to do so a few years back, but if I recall correctly, it failed because there were some additions to the reform package that would have made CEQA worse.
‘In a nutshell, many Manteca renters may ultimately be squeezed out of Manteca ??
Yes, the Manteca/Lathrop hub has been the target of major developers for sometime now…Its not just renters going over the hill for work either…They travel in all directions…HWY #99, #205, #5 & #580 are @ crossroads there…
As far as cheaper rent vs. Manteca…You only need to go up the road 20 miles to Stockton…You will cut your rent in half or more…
356 properties found Manteca, CA Real Estate and Homes for Sale
http://www.realtor.com/realestateandhomes-search/Manteca_CA/type-single-family-home,condo-townhome-row-home-co-op,multi-family-home,mfd-mobile-home
67 properties found Manteca, CA Price Reduced Homes for Sale
http://www.realtor.com/realestateandhomes-search/Manteca_CA/type-single-family-home,condo-townhome-row-home-co-op,multi-family-home,mfd-mobile-home/show-price-reduced
Surely we can give the dishwashers $400,000 loans to correct this situation.
723 homes sold in the last 6 months per Zillow. 356 is about 3 months of inventory. In other words the price reductions are more about people trying to overprice than there being too many homes on the market relative to demand, which is why prices are rising faster than inflation in Manteca (over 6% in the past 12 months).
Denial. It’s not the river in each up Rental Fraud.
The reality is is prices are being slashed and prices are falling because housing demand has fallen to 30 year low in California.
‘Angry Airbnb hosts have vented their frustration with the online room-booking company after it said it would hand over homeowners’ details to the Revenue Commissioners. The company said that they may take a legal challenge against a Revenue decision that states homeowners letting out rooms through the website on a short-term basis are not eligible to earn up to €12,000 tax-free under the rent-a-room scheme.’
‘However, they have also stated that all earnings people make through the site must be classed as a taxable income.’
‘Many left the meeting angry. One man travelled from Cork, but was told he could not enter because he had not responded to an invitation on time.’
“I have a mortgage of more than €300,000, but lost my job last year so have been using my house to earn some extra money to pay the bank,” he said. “My social welfare is under threat now too as my Airbnb money is considered a taxable income and apparently it does not count under the rent-a-room scheme,” he added.’
why don’t people just post on craigslist and skip the taxman?
‘Linda McDale is about to close on a new home. In fact, she just finished the inspection report with her realtor Monday afternoon. She and her family spent more than a year looking for the right house. “You have to move quickly. If you see something you want, you have to move quickly and look a lot,” McDale said.’
‘Realtors in St. Charles County say they are experiencing the best housing market since 2006. “I think we could call it a mini boom. We are doing great here,” said Leah Petrus, with the St. Charles County Association of Realtors.’
‘Petrus said median home prices have increased about 11 percent from last year. And they’re selling fast. Petrus also said it’s both a sellers’ and a buyers’ market. Sellers are getting fair market rates for their homes, and buyers have plenty of inventory to choose from.’
‘Not long after Robin and Anthony Hood moved to Bush Hills in 2008, they set off a smoke alarm while cooking a meal and were surprised to find that firefighters were surprised.’
“The fire department came and passed by our house, turned around and passed by our house again until I came out and ran down and they were like, ‘Oh, somebody lives in this house! We thought this house was still vacant,’” Anthony Hood said.’
‘Robin Hood heard a similar thread when she started getting involved with the neighborhood association. “At the meetings the number one thing that would always come up is ‘the vacant property next to me’ or ‘this is blighted,’ it was just so repetitive,” she said.’
‘But during evening walks around the neighborhood they became aware of attractive but vacant homes that were drawing interest from potential buyers but were not on the market, as well as deteriorating eyesores.’
‘The Hoods have also traveled in search of ideas for their neighborhood, attending conferences in other cities seeking solutions to similar issues. Especially with respect to fostering a healthy mix of families in the neighborhood, Anthony said they’ve learned there are no best practices, only better practices.’
“There could be a time where this neighborhood is bustling with energy and there are no vacant properties but, did we push out the original people that were here and now people are priced out of the neighborhood?,” he said.’
‘Rising government debt is seen by many as posing a threat to the economy, but most cities across the country are opaque about their debt loads, a research report said.’
‘The study by researchers at Tsinghua University on the financial transparency of local governments covered 652 cities across China. It found that only six cities – Beijing, Guangzhou, Shanghai, Tianjin, Ningbo and Xiamen – told the public last year how much debt they had.’
‘The report comes amid rising concern about the amount of debt held by local governments. Last year, the Ministry of Finance ordered local officials to file reports on their reviews of debt loads, and later complained that many lower-level governments submitted inaccurate figures. The ministry has not published any of the information it received.’
‘Figures released on August 3 by the Chinese Academy of Social Sciences, a government think tank, show the central and local levels of government had total liabilities of 56 trillion yuan in 2013. This included government debts, non-performing loans held by state banks, foreign loans and deficits in social security funds. Governments at all levels had assets of 111.9 trillion yuan, the think tank said.’
‘Yu Qiao, a professor at Tsinghua’s school of public policy and management who headed the study, said that although the Budget Law required local governments to be financially transparent, there is no strict requirement on local debt disclosure. The law also lacks detailed regulations for statistical methods and disclosure procedures, he said.’
“There is confusion on many concepts, and a local government can handle things based on their own interpretations,” Yu said.’
‘25 Places Where People Paid Too Much for Their Homes’
‘#20. New Haven Metro, CT’
‘% Homes with Negative Equity: 24.73%
1-Year Change in Negative Equity Homes: +10.17%
3-Month Change in Negative Equity Homes: +2%’
‘#2. Worcester Metro, MA’
‘% Homes with Negative Equity: 39.55%
1-Year Change in Negative Equity Homes: +31.95%
3-Month Change in Negative Equity Homes: +6.41%’
more homes w negative equity during the echo bubble?
por que ?
are they being released by the banks?
Doesn’t matter really. Millions of suckers have been paying grossly inflated prices for depreciating assets for 15 years straight. Then doubling down on those losses by financing.
HA, HA! ….or maybe they purchased a home 15 years ago and just about have it paid off. Good thing I never listened to you. I like using the rental income to purchase homes and eventually own them free and clear. I have two free and clear now and added 7 more in the last downturn that are well into the principal reduction phases of the mortgages. They all cash flow nicely and will add significantly to my retirement security.
But you didn’t commit suicide 15 years ago. You got suckered in 2007.
How many of those dumps have you defaulted on so far Jingle_Fraud?
‘The Reserve Bank has warned Australia is experiencing a huge transfer of wealth from its younger to older generations, with property prices rising faster than incomes, that is “unlikely to make us better off as a nation” if the trend continues. Deputy governor Philip Lowe says the growth in land and property prices in recent years has provided “windfall gains” for some Australians, including older homeowners with no children, and owners of investment properties.’
‘In one of the strongest comments yet from an RBA official on the question of rising property prices, Dr Lowe said on Wednesday that it was arguable that the “main impact” of the pace of the property price increases was a change in the distribution of wealth in Australia, rather than an increase in national wealth.’
‘He admitted that, despite experiencing capital gains on their properties, many Australians may be feeling worse off at the moment because they would be worried about future housing costs for their children.’
“Many parents around the country look at the high housing prices and worry that their children will not be able to afford the type of property that they themselves have been able to live in, even if their children were to have the same life-time income profile as they have had,” Dr Lowe said in Perth. “How the intergenerational distribution ultimately plays out will depend critically upon the extent to which the gains that have accrued to the current generation are passed on to the next generation.”
‘Dr Lowe also suspected that household balance sheets were “a little more risky” than they once were. He said low interest rates were helping the economy through a period of transition but Australia needed to start seeing more investment in new assets that were crucial to the “sustainable expansion” of the economy.’
‘There’s an almost casual assumption among the economentariat that the Reserve Bank will on Tuesday deliver a fourth successive official interest rate increase. The assumption is as unwarranted as the focus on the number of successive moves is silly. The economentariat really should get a grip. It has bookended the break by running from one side of the metaphorical ship to the other.’
‘Two months ago, the “meme” was how a third successive rate increase would be “unprecedented” — leading many to predict a pause at the December RBA meeting. Now a new “meme” about rising inflation in an improving global economy has been embraced. So they’ve generally embraced an even more unprecedented four in a row without blinking. Or should that be thinking?’
‘Now RBA governor Glenn Stevens is neither going to frame his recommendation to the board nor the board make its decision on the basis of one bad day at the bourse. It’s not yesterday’s fall in itself which is significant but the broader uncertainty it speaks to. Indeed, not just uncertainty but very serious question marks over likely developments in the global economy and financial markets this year.’
‘I would suggest the divergence between expectation and outcome last year is not just food but a veritable feast for thought. But beyond the general caution, there are two very specific ones — what happens in China and in the US. It is not even dimly appreciated that our economy is now totally hostage to what happens in China.’
‘But the more we bask in China’s embrace the more vulnerable we are to it turning sour. This year that question is likely to be posed, and posed aggressively, potentially without much warning. China’s insatiable appetite for our — and the world’s — resources delivered a double-edged benefit that was not well recognised. It didn’t just increase the volumes and prices we got from China, but the prices we got from everyone else.’
‘The reverse, if it came, would also be double-edged. If China cut volumes and prices, it would cut the prices we got from everyone else. And because we have become more reliant on resource exports in recent years, the pain would be worse.’
‘Disturbingly the potential downside is not as comfortably symmetrical as the upside has been. Brutally though, there is no “there, there”, in terms of a thriving non-resources-based economy in the rest of Australia. Last year we discovered that when America sneezed we no longer caught cold, thanks to China. We are now at risk of discovering that if China sneezes we will get something worse than a “cold”. The real concern is that China is unlikely just “to sneeze”, but itself suffer the equivalent of a cold or worse.’
‘If, of course, it happens. But if it does, we will then also discover that our foreign debt is not as benign as it seems today. Easily rolled over (and further increased) by our banks under the umbrella of the federal government’s Triple-A credit rating and the banks’ own relative strength. But also all built on the perception of Australia as a very attractive proxy for investing in the China story. If that story turns sour?’
‘These are the substantive uncertainties and balances of risks that the RBA has to weigh. It’s not just about inflation.’
‘El Pollo Loco shares tanked by up to 15% in premarket trading on Friday after the company reported quarterly results that missed on revenues. On Thursday evening, the restaurant chain posted revenues totaling $89.5 million, missing the estimate for $93 million according to Bloomberg. Adjusted earnings per share came in at $0.18, in line with forecasts.’
‘The company’s shares soared 55% at its IPO last July. Shares are down 6% year-to-date, and have cratered 50% over the past 12 months.’
The bust doesn’t destroy wealth.
I’ve asked before, is this our economy? Treating chicken places, burritos and grilled cheese sandwiches like tech stocks. Heck, even most “tech stocks” are mostly glorified craigslist dealies.
‘Billionaire Jack Ma has faced criticism about the quality of goods on his e-commerce sites. Now his push into Internet finance is raising red flags as he puts risky bonds a few clicks away from China’s 668 million netizens. Ma’s Zhao Cai Bao, a platform that lets small businesses and individuals borrow from investors, has overseen 250 billion yuan ($39 billion) of financial product sales since starting last year. Recent offerings: unrated bonds from a hotel operator in Anhui province and investment firms set up last year in a Shenzhen financial zone still under construction. None of the prospectuses online provide revenues, profit, assets or debt.’
“The risks of such financial products are high,” said Liu Dongliang, a senior analyst at China Merchants Bank Co. in Shenzhen. “You shouldn’t sell bonds issued by small companies with no ratings to just any individual investor.”
“The bust doesn’t destroy wealth.”
If the bust destroys prices and prices are a measure of wealth then the bust destroys wealth.
And (the most fun part) prices are what results from the actions of buyers and sellers - which means if buyers and sellers decide that the price should be high then the resulting wealth will be high. And the reverse is also true: If buyers and sellers decide the price should be low then the resulting wealth will be low.
A bit crazy, no?
This is what destroyed the wealth:
‘The company’s shares soared 55% at its IPO last July’
A true miracle.
I’m going to refi and then
go
w
shake shack
uber
the goog alphabet
just the sure things
I like the low carb combination of two pieces of chicken, cole slaw, broccoli, and with a cup for water at El Pollo Loco. Great for body building.
‘That was fairly common at stalled home projects in 2009, but this is 2015 and South Florida is in a residential building frenzy.’
‘Builders are scoring loans again, but Kennelly can’t seem to find buyers.’
‘Alan M. Hess described the condition of Estates of Boynton Waters in an email to the Business Journal in June: ‘The clubhouse is finished, but a disaster, as it is not maintained. The tennis courts are crumbling and can’t be used. There are 85 homesites; 58 are built and occupied. There are about 12 homes in various stages of constructions – unfinished and have been this way for 4-5 years, and about 8 vacant lots.’
Be sure and send in that HOA payment Alan, or you’ll find your furniture sitting beside the crumbling tennis court.
‘The clubhouse is finished, but a disaster, as it is not maintained.”
A depreciating pile of mess. Worthless.
If they lived in an apartment complex, the clubhouse and tennis courts would be open and maintained.
‘My house was demolished illegally,’ one woman told Foreign Correspondent. ‘It’s been six years and they haven’t paid me. Give me back my house. ‘They beat me. They detained me. What can I do?’
‘Stories like this can be heard right across China.’
But their IQ is so high.
Bonafide and proven degenerate gamblers.
Prices in San Antonio are 19.8 percent ahead of where they should be an Houston prices are 14.7 percent overinflated, according to Fitch. Texas residential real estate values are at an all-time high. And in North Texas, prices are growing at a percentage rate of almost three times long-term average
since most local funding comes from re tax in TX $49 oil will change things drastically
A merica’s Most Sex-Happy Cities
We looked at condom sales, birth rates, sex toy sales and rates of certain STDs, to determine the most sex-crazed cities in the nation.
four of the top 10 are right here in TX! So, you see, TX isn’t such a bad place after all. I guess all that bible thumping gets people worked up!
http://www.menshealth.com/health/americas-most-sex-happy-cities
Everything’s bigger in Texas . . .
Plano, TX Housing Prices Crater 18% YoY; Housing Inventory Billows 126%
http://www.movoto.com/plano-tx/market-trends/
Buyers do you read or even believe what is happening in energy and especially oil. If you live in Texas, ND,LA, Colorado get a Re agent or sell buy owner sell now, while there are still blind buyers out there. Late 2016 and beyond all bets off, the country and these states especially will be dead broke and no house sells or much else. Folks ,that oil at 100 a barrel not ever coming back?
Matter of fact many McDonalds,All Sam’s Club, All Lowe’s, and a lot of Wall Marts are going away. 2017 is going to be D -Day no matter who gets in office, you just can’t over come 100 trillion dollars in debt, monopoly money can and that is where we are headed for our currency, as I always said, as long as we are the worlds currency we are in fair shape I now see in 2017 we will not be in that postion?
You would think, but it appears the boom has people thinking they’re immune. How in the world Texans could talk themselves into that is beyond me. Still, I have to admit we all did it in the 80’s too. In hindsight, we laughed at our own stupidity. And it was just a couple of weeks ago I posted that Dallas magazine article with the graphics of people running from house to house with wheelbarrows full of money.
Look at Alberta; the roof is falling in and they have their fingers in their ears.
I was just thinking, how could the lenders not at least pull back a bit? I’ll bet Fannie, Freddie and FHA are running full-tilt this very minute. If what Fitch is saying about Houston is true, well I did have that Woodlands (Houston) broker quoted recently that it’s shaping up to be a disaster. Don’t forget, 15-17% of news houses are being built in Texas. Heaviest concentration in Houston; Taylor Morrison.
Home moanership is a religion. If you posted the above on Yahoo real estate articles you’d be rustlin’ people’s jimmies.
This is your best point of the day: A rating agency finally issued proper forward concerns and no one listens. The lenders just keep piling it on in the easily (for Fitch and the HBB) identified higher risk markets.