The Crazy Game Of Overbidding
A report from the Oregonian. “After a record-setting July, the local real estate market cooled slightly last month but continued the trend of year-over-year growth, according to the latest numbers from the Regional Multiple Listing Service. Brigitte Pascutoi, managing principal broker in John L. Scott’s Beaverton office, said in a statement that ‘prices appear to be hovering around their high point.’ ‘We see a plateau between $346,495 for a median Hillsboro price and $382,000 for a median Beaverton price,’ Pascutoi said. ‘The market has been cooling this past month and hence the plateau in price. … Despite this somewhat shy but consistent decrease in market action, we are still in a strong sellers’ market.’”
King 5 News in Washington. “Seattle’s red hot housing market seems to be putting the American dream of home ownership on hold for many, according to a new survey by Zillow. The survey shows a vast majority of renters don’t see themselves owning homes in the near future. Only two percent of Seattle renters said they plan to buy a house in the next 12 months. Last year, 7 percent of respondents said they planned to buy in the next year.”
“‘I’m in no rush to buy,’ Alok Lathi said Sunday. His family recently moved into a three-bedroom house in Seattle’s Queen Anne Hill neighborhood. ‘I don’t want to play the crazy game of overbidding,’ he said.”
The Tampa Bay Times in Florida. “The Florida tourism industry has an affectionate relationship with Canadian snowbirds. Some economists worry that the usual influx of Canadians — who own property here, spend weeks in seaside vacation rentals and camp out in RVs across the state — may rethink their travel plans this year as their economy slumps and the U.S. dollar remains strong.”
“‘What very well could dampen Canadian visitation this winter is how their economy contracted during the first six months of this year,’ said Sean Snaith, director of the Institute for Economic Competitiveness at the University of Central Florida. ‘The good thing is it’s still cold and snowy up there, which could still drive people here. But they face some significant headwinds for their economy. The Canadian dollar depreciation means they’re paying more for every hotel rate or theme park ticket. That’s a big jump in prices for Canadians who are already facing a weak economy.’”
“‘When we have room rates that are going up in price and the value of their currency is dropping, that could definitely be a double whammy,’ said David Downing, executive director of Pinellas County’s tourism marketing agency. ‘The last time we saw a fluctuation like this was in 2009, but it wasn’t as pronounced because the U.S. wasn’t doing so well, either.’”
The Kingman Daily Miner in Arizona. “The average home price in Kingman and Golden Valley increased to $138,879 in August, compared with $127,453 in the previous month, according to statistics from the Kingman Golden Valley Association of Realtors. Pat Tenney, a mortgage officer with Midwest Financial in Lake Havasu City, said she’s not so sure about the appreciation percentages. Tenney gets home purchases and refinances that are constantly running into appraisal issues.”
“‘So they say everything’s getting good, but I don’t know what’s going on out there,’ the mortgage specialist said. ‘I ask Realtors why prices are going up and appraisals are low and I see price reductions coming across my e-mail every day. There are people that bought during the bubble when everything was overpriced and now they’re pricing at reality, and I agree with that.’”
The Midland Reporter Telegram in Texas. ” Karr Ingham, the Amarillo economist who prepares the Midland-Odessa Regional Economic Index for the Midland Development Corp. and Security Bank, reported the sixth consecutive decline in the index for July. He said the decline from June to July was also the largest month-over-month decline so far since the index turned downward. Ingham said housing sales rebounded slightly, however, sales are down 8.7 percent so far this year compared to last year. ‘When you don’t have a sense of optimism for the future, especially for your job outlook,’ you’re reluctant to invest in a home, Ingham said.”
“Another reason is that Midland-Odessa housing prices remain high, though they have retreated slightly, he said. Midland-Odessa real estate is ‘an interesting market to watch; it is so out of whack,’ he said. Traditionally, up-cycles would produce high housing sales and prices, whereas a down-cycle would produce falling sales and prices. But in Midland-Odessa, ‘there was a time prices were rising so rapidly not everyone could afford to be in the market. Our hope is for prices to come down and the market to come into alignment with what would be considered reasonable pricing levels. The market has settled down in terms of price increases, but we still haven’t seen prices come down very far,’ he said.”
The Wall Street Journal on New York. “The first telltale signs of a softening of the white-hot Brooklyn rental market have come into view. As a torrent of new inventory washes across the borough, a handful of REITs, analysts and developers are sounding warnings about a possible supply glut that could play out over the next couple of years. Fanning the fears of saturation are scores of multiunit glass towers that are opening, topping out or breaking ground in Downtown Brooklyn, Williamsburg, Greenpoint and Fort Greene.”
“In any hot market, developers ‘tend to overdo it…get excited and go too far,’ said Drew Babin, senior research analyst at Robert W. Baird & Co. who tracks both Equity and AvalonBay Communities Inc., another multifamily owner that in July cited weakness in its Brooklyn portfolio. ‘New supply can eventually kill rent growth, and you’re seeing an overhang of new supply in Brooklyn,’ Mr. Babin said.”
“appraisals are low and I see price reductions coming across my e-mail every day.”
Offload the shanty while you still can.
“‘I’m in no rush to buy,’ Alok Lathi said Sunday. His family recently moved into a three-bedroom house in Seattle’s Queen Anne Hill neighborhood. ‘I don’t want to play the crazy game of overbidding,’ he said.”
A Realtor’s worst nightmare: Broke, overmortgaged homeowners plus savvy renters who refuse to overpay…
‘The good thing is it’s still cold and snowy up there, which could still drive people here. But they face some significant headwinds for their economy. The Canadian dollar depreciation means they’re paying more for every hotel rate or theme park ticket. That’s a big jump in prices for Canadians who are already facing a weak economy.’
No money, no winter migration of Canadian snowbirds to Florida…
It’s not just Canadian tourists. The impact of the collapse of emerging market currencies against the dollar — for Latin American countries, this is in the range of a 70% fall — is being underestimated, grossly. I’m guessing Florida will be seeing fewer Brazilians by an order of magnitude.
On another subject, I’m amazed more tourists aren’t repelled by the high taxes levied on hotel rooms and rental cars.
“I’m amazed more tourists aren’t repelled by the high taxes levied on hotel rooms and rental cars.”
It is really quite absurd just how many of these taxes there are, and how much they can add to one’s hotel bill.
P.S. Don’t forget parking! At many hotels you have to pay for that too!
P.P.S I forgot ‘Resort Fee’! Gotta pay to use the pool, and you can’t opt out!
Ah yes, the mandatory fees. At one Orlando resort hotel that shall go unnamed, I was slapped with fees that I couldn’t opt out of — a WiFi fee, and a charge for two bottles of water. I had to pay for these things even though I told the check-in clerk that I wasn’t going to use the Internet or drink the water.
Parking was extra, and exorbitant, so I’m very familiar with that one too.
“The average home price in Kingman and Golden Valley increased to $138,879 in August, compared with $127,453 in the previous month, according to statistics from the Kingman Golden Valley Association of Realtors.”
The average home price of $138,879 in August minus the average home price of $127,453 the month before means the average home price increased by $11,426 IN ONE MONTH!
Buyers and sellers - strangers - set the prices for the houses they buy and at the same time they do this they set the values of the comps - in this case they increased the values of the comps by $11,426 over the period of one month.
Why, it’s a miracle! How many of you people out there in HBB land are able to increase your wealth by $11,425 in one month just by living in your house?
(doin’ some math here …)
Why, at this rate one will add to his wealth by $137,112 in just one year! How amazing is this? And just what would you expect the average person would want to do if they were to easily - EASILY - generate $137,112 in one year just by doin’ nuthin’? Perhaps SPEND IT!
Spend it like a drunkin’ fool?
Well, ain’t that the hopes of those PTB buys! Keep the prices increasing and you will keep generating lots of wealth and the newly-generated wealth will generate lots of spending - lots and lots of spending - and this spending will keep the miracle economy humming right along just as if everything is wonderful.
But … but … but … what would happen if (the horror) prices went into reverse and took the magically-created equity with it? What then? What would those PTB guys do then?
(Hint: Rising home prices is pretty much all they’ve got)
Stay tuned.
We see a plateau
there’s that plateau word again
Did anyone opine whether it seemed permanently high?
they won’t have time
Only in Colorado.
‘Bet you never thought you’d be seeing this: in the past year, average rents in Bushwick have dropped 16 percent due to a massive increase in housing units available.’
‘According to the most recent MNS rental report and DNAinfo, between August 2014 and August 2015, rents decreased from an average of $2,485/month to $2,090/month, and the number of available apartments on the market quadrupled.’
‘Construction continues at a breakneck pace on the many, many new developments throughout Brooklyn, including megaprojects like City Point and Pacific Park, but the high number of apartments coming onto the market has some wondering: is this pace sustainable?’
‘There are a lot of new developments being built in the borough, adding an unprecedented number of units to the market—more than double the number of units will be ready for occupancy in 2015 than were available in 2012. And in 2016, the number will get even higher: a whopping 4,990 units are expected to be available, surpassing the recent high of 3,282 in 2008.’
‘There’s also the issue of what types of units are coming onto the market. Developers in Brooklyn are focusing largely on luxury apartments, which, according to the WSJ, are “intensifying competition for the same pool of moneyed millennials, hip techies and so-called broken-hip-sters, empty nesters and baby boomers flocking to the urban core.” (Oh boy.)’
If New York can be overbuilt, any place can.
‘Ask financial professionals in the Milwaukee area whether they think there is a construction revival here, and they almost always bring up the same word: cranes.’
‘From the Northwestern Mutual Tower and Commons project in downtown Milwaukee and the wave of apartment complexes going up in the city and suburbs to new buildings in Kenosha County, cranes protruding from the landscape stand as visual evidence that southeastern Wisconsin is participating in the biggest surge of construction spending in the United States since the Great Recession.’
“It’s really great to drive around and see cranes, because for so many years we didn’t see anything,” said Chris Goller, the Wisconsin regional president for PNC Bank.’
‘Sikich’s Adams said even though it may seem apartments are being overbuilt, the demand is there. “We’re starting to see, as the economy gets stronger, more millennials moving out of their parents’ home. Where they’re going to go first is apartments,” Adams said.’
‘He added, “Then you also have boomers who are now retiring, and a lot of them are moving into senior citizens or senior living type apartments, which are also being built.”
Midland- talked to a guy that said a yard near him EVERY truck was parked- the rigs & support trucks
every is a big number
‘Frustrated homebuyer Pablo Nunez lost one house when he was outbid. Another deal died after a low appraisal. Nunez, a business owner who rents a home in West Palm Beach with his wife, is learning the agony of hunting for homes in a price range where demand outstrips supply.’
“We’re trying to keep it under $200,000, but it’s kind of difficult, so we’d be willing to go up to the $220 to $230 range,” Nunez said.’
‘Multiple offers and aggressive bids bring back memories of the housing bubble of 2004 to 2006. Back then, public officials fretted that middle-income buyers might no longer be able to afford home ownership in Palm Beach County.’
‘But buyers are diving into a market that has shifted sharply from a decade ago. In one change, affordable new homes have all but disappeared from Palm Beach County’s housing market.’
‘Construction of entry-level homes ground to a halt during the Great Recession, and homebuilders have yet to resume the sort of large-scale building that drove Palm Beach County’s housing market for decades. New homes account for only 3 percent of home sales in Palm Beach County, and the average price of those homes is $650,000, said David Cobb of housing research firm Metrostudy.’
‘In other words, builders aren’t aiming for the lower end of the market — and it seems unlikely that they’ll ramp up production.’
This is why it doesn’t matter how many houses are built:
‘the average price of those homes is $650,000′
Even rentals are “luxury”. The land has skyrocketed and I’ve noticed the developers don’t have a problem with that.
Heck of a job Janet, Mel.
“A lot of people,” Mike said, “are going to have to start making some difficult decisions.”
$650K for a starter house?
And none of these “experts” sees a problem with this?
Here in SoUtah we have a glut of $650,000.00 and over homes for sale. If you check the stats you will see that we sale about 10 per year.
We have about 450, in this price range, listed for sale.
You do the math.
I was at a Hospital Christmas party in 2008. At past medical get togethers in previous years I was quite vocal about our local bubble and the crash that was coming. However, I was mostly ignored and after repeated kicks under the table, from my wife, I would drop the conversation.
At the 2008 party I had one Doctor who followed me around all night frantic about the crash, which at that point was now clear to everyone present. His problem was that the great deal he got on his house ($1.5 million in a fairly dull community) no longer looked so good as it was now worth half that amount.
He based this loss number on the fact that his neighbor/homebuilder across the street had put his house, with the same floor plan and ammenities up for sale at $750,000.00. His homebuilder had lost his business and was having a fire sale on both his house and his numerous toys.
I told the Dr that at this point in time I couldn’t offer any helpful ideas as the time to do something productive was before the crash happened, not after.
Fast forward to now, I had the opportunity to talk to the Doctors wife a few weeks ago at another party. They still have not been able to sell the house after seven years on the market. However, they did just build a new home ($1.8 Million) in another, “nicer neighborhood”.
She saw the puzzled look on my face upon hearing the good news and added that their current realtor assured them “the market was getting stronger” and that it was just a matter of time before they would sell the old house.
I heard her asking others at the party, as the night progressed, if they knew anyone who was looking for a “beautiful house at a great price”.
I think that I’ll be safe at this years Christmas get together but I wouldn’t be surprised at all if I have both of them following me around at the 2017 party.
Proving once again, that you just . . . can’t . . . fix . . . stupid.
‘A letter published in today’s paper, written by John Lorf of Bozeman, argues that the city now has “a worse traffic problem than San Francisco.”
‘The whole thing is worth a read (it’s quick), but here’s the basis for his argument, based on what appear to be back-of-the-envelope calculations about his personal commute: “I used to work 12 miles from my house in the SF Bay Area and it would take me 40 minutes to drive every day. Sounds horrible right? Well, I now live four miles from my office in Bozeman, a straight shot down 19th and for the last month it has taken me no less than 20 minutes to get home from work.”
“Here is the math: Bay Area commute: 3.3 minutes per miles traveled. Bozeman commute: 5 minutes per miles traveled.”
‘He goes on to criticize infill development like new multi-family condos and apartments (something that’s considered a priority by city planners), saying they’ll just make the problem worse.’
‘A commenter on the web version of the article makes a similar point: “Why do we need density when there is so much land available?”
It’s an interesting conundrum. Mass transit doesn’t work without mass density. But between suburbia and mass density is a wide chasm of medium densities where mass transit is not economically feasible.
So, you either deal with sprawl and less traffic, or work your way (perhaps over generations) to higher and higher densities that ultimately result in economically feasible mass transit.
The 2010 census put Bozeman’s population at 37,280 and the 2014 census estimate put the population at 41,660.
https://en.wikipedia.org/wiki/Bozeman,_Montana
Look at the photo and see if there is a shortage of land.
I never said there was a shortage of land. There usually isn’t.
The only shortage that exists is a shortage in the willingness of local municipalities and residents to allow development of that land.
So, as I note, Bozeman has a choice…allow sprawl without limitation on all the land that is there, or approve higher densities…and perhaps 60-100 years from now, a good bus system will pay for itself.
Nor is there a shortage of houses Rental_Fraud.
‘a shortage in the willingness of local municipalities and residents to allow development of that land’
I’ve documented that land in Bozeman went up 200-300% in the past three years. There’s actually a glut in expensive houses.
776 properties found
Bozeman, MT Real Estate and Homes for Sale
http://www.realtor.com/realestateandhomes-search/Bozeman_MT/type-single-family-home,condo-townhome-row-home-co-op,multi-family-home,mfd-mobile-home
246 properties found
Bozeman, MT Price Reduced Homes for Sale
http://www.realtor.com/realestateandhomes-search/Bozeman_MT/type-single-family-home,condo-townhome-row-home-co-op,multi-family-home,mfd-mobile-home/show-price-reduced
This is just land:
626 properties found
Bozeman, MT Real Estate and Homes for Sale
http://www.realtor.com/realestateandhomes-search/Bozeman_MT/type-land
Land that is approved for building homes? Or simply raw land?
My point is that in places like TX, where zoning doesn’t exist, the land component of the cost of developing a home is minor…because anyone with a piece of dirt can build a home on it.
Yes, land goes up and down, but it goes up and down with far more volatility when you are talking about land approved for residential development in a market where it is difficult to obtain such approvals.
While it’s hard to do, the data that is interesting is the difference in value of a piece of land that is entitled for residential development vs. a piece of land that is NOT.
If the difference in price is minor, then you can conclude that there is no bottleneck at the approval level. Land values are driven more by the market than by artificial restrictions in supply.
If by obtaining an entitlement to build homes you can increase the value of the land you own by 10x (which does happen), then you can conclude that there are artificial restrictions in land supply for residential development.
“you can increase the value of the land you own by 10x (which does happen)”
And the only way to arrive at some artificially inflated price is by way of kickbacks, payoffs and brown envelopes….. It’s called fraaaaaaaaaud.
You seem to always refer back to the payoffs. Why is that?
http://www.norcal-ai.org/amass/doc-get-pub/article/16/2012FC_Project_Entitlements_Developer_Perspective_D_Cropper.pdf
For a little education:
http://wchpartners.com/land-entitlement
And some more education, with the applicable quote from this website:
“In a jurisdiction with a relatively favorable, development-friendly climate, the entitlement premium and risk are lower because of higher potential supply. The highest premium and corresponding risk can be found in urban or coastal areas where growth is constrained by vocal opponents, making entitled land truly a precious commodity.”
The applicable phrase in the last line is “entitled land”. Land without entitlements is worth far less.
http://www.irvinehousingblog.com/2007/07/16/land-value-101/
For those who want to understand how land values are really obtained:
Note the applicable quote on this page:
“Builders pay for lots, not land.”
If the land has no lots approved on it, it is MUCH less valuable than if you have the ability to construct a home on it.
Then why were houses in 1970 Palo Alto about the same price as the little town where I was born in Texas?
Because that’s before the massive wave of “I’ve got mine, screw the next guy” started in California that’s made building housing expensive & time-consuming, added to massive job growth (due to the semiconductor & PC biz, etc).
Strange that our cost to execute a construction contract in CA is no more or less than anywhere else.
CEQA was passed in 1970. It did not take away entitlements, but following 1970, obtaining new entitlements got harder, and harder.
Here’s a handy-dandy flowchart to follow all the places that the Sierra Club can sue you for not following the proper procedure.
http://www.califaep.org/ceqa/ceqa-flowchart
The really fun part about CEQA is when you get delayed (for political, market, or opposition reasons), and you need to start your consultant reports over again because someone might make the argument that conditions changed (and delay you again if you decide NOT to redo all your consultant reports).
I can’t speak to the comparison from PA to your town in TX, but my great aunt moved to Palo Alto from SF in 1946, and even then, Palo Alto was considered expensive relative to SF.
Here’s a fun little webpage that spells out the divergence of home prices in CA from the rest of the country tied neatly to 1970 (passage of CEQA).
http://www.lao.ca.gov/reports/2015/finance/housing-costs/housing-costs.aspx
“Housing in California has long been more expensive than most of the rest of the country. Beginning in about 1970, however, the gap between California’s home prices and those in the rest country started to widen. Between 1970 and 1980, California home prices went from 30 percent above U.S. levels to more than 80 percent higher. This trend has continued. Today, an average California home costs $440,000, about two–and–a–half times the average national home price ($180,000). Also, California’s average monthly rent is about $1,240, 50 percent higher than the rest of the country ($840 per month).”
And another fun CEQA quote:
“CEQA’s complicated procedural requirements give development opponents significant opportunities to continue challenging housing projects after local governments have approved them.”
In other words, you get through the CEQA process to the satisfaction of the local government…but opposition groups can STILL sue you on CEQA grounds.
Awesome.
‘Palo Alto was considered expensive relative to SF’
Yeah, but we had oil.
So the Sierra Club and too many regulations makes the prices high. But, Miami Beach has hardly any restrictions and their prices are higher than yours.
Most people ignore that the house prices rose because of increasing demands as the people pour into California for the work, and that includes the increase of aliens, also known as farm workers.
You bring in 1,000,000 workers from anywhere and you will drive all home prices us, unless, that is, you build the homes before the influx of workers.
As an appraiser here from 1954 to 1984, I saw the increasing demand and the slow but steady rise in prices. And after that, with the increasing supply of alien workers the demand increases , and price soared.
the home I bought for 26K in 1966 is now about 27 times in price, and I have no intention of selling it, unless the fire gets it some times in the future, and then it will be sold to the insurance company.
Population is falling in CA.
And if you think that house is worth some insane amount, I challenge you to find a buyer for half that amount.
“Population is falling in CA…..”
Not true.
It’s true Jingle_Fraud. CA sustained a net population decrease of 1 million since 2004….. and falling.
“So the Sierra Club and too many regulations makes the prices high. But, Miami Beach has hardly any restrictions and their prices are higher than yours.”
Yes, and that is precisely why when people asked me if they should invest in Florida Real Estate, I told them that I wouldn’t touch it with a 10-foot pole. I simply don’t understand how prices are so high…especially when there is massive numbers of new condos planned.
https://www.google.com/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=california+population
California Population Falls 1 Million Since 2004
http://www.sacbee.com/site-services/databases/article32679753.html
‘A new report from Zillow found that people are less optimistic about the housing market in some of the country’s largest tech hubs. Residents of Seattle, San Francisco, Denver and San Jose think now is a worse time to buy a house in their city than just six month ago.’
‘Denver saw the biggest drop in confidence, with 46 percent of people saying now is a good time to buy versus 54 percent back in January. San Jose has the lowest confidence of the major tech hubs and fell 7 percentage points, with just 36 percent saying now is a good time to buy. San Franciscans’ confidence is down as well, dropping 5 points to 40 percent optimism.’
‘Some have blamed the tech industry for rising home prices in tech hubs, and with some investors are warning of a tech bubble, those home prices could deflate if the bubble pops. If that happens soon, which some are predicting, people buying houses now may have a hard time recovering their initial investment in their homes.’
http://www.bizjournals.com/denver/print-edition/2015/09/11/what-people-in-denver-earn-the-big-wage-squeeze.html
‘Developer Gregg Wolin has been in the real estate business for 25 years, but few projects have tested his “humanity” and “ethical fiber” as much as Park Highlands in North Las Vegas.’
‘The sprawling development, long seen as an economic boon to the city, went bankrupt twice before a single house was built. After the economy tanked, the land was chopped up among numerous buyers, all of whom had veto powers over project plans.’
‘Park Highlands has been in the works for almost a decade and was estimated to cost more than $3 billion. But delays piled up because of the recession and the rotating cast of investors pursuing different agendas.’
‘By next year, landowners say, construction could be underway at both, part of a broader effort to revive sprawling residential developments in Southern Nevada that fizzled during the downturn. Wolin, co-founder of Crescent Bay Holdings in Scottsdale, Ariz., says there’s “no reason we can’t have dirt flying” in the first half of 2016 at the Villages, which today consists of open desert.’
‘Perhaps boosting things is the availability of cheap money: Interest rates are low, lenders are issuing more mortgages in Las Vegas and buyers here are making smaller down payments.’
‘Moreover, Las Vegas’ homebuilding market is dominated by large, publicly traded companies such as Lennar Corp. and KB Home. Builders buy land in master-planned communities to develop subdivisions, and whenever there’s an uptick in demand for new homes, there’s plenty of money out there “to take advantage of it,” Wolin said.’
‘Park Highlands isn’t the only community to rise from the dead. Other mini-cities that got derailed during the recession but now are back in business include 2,200-acre Cadence in Henderson, 1,700-acre Skye Canyon in northwest Las Vegas, and 1,900-acre Inspirada in Henderson. Also, an hour’s drive north of Las Vegas, developers of Coyote Springs — which has been planned for at least 15 years but has almost nothing besides an 18-hole golf course — are looking to revive the long-stalled, 43,000-acre project.’
The article is right and LV development is back to what I saw during the bubble. I had an architect show me a spot (in the middle of nowhere past Summerlin) where Hughes Development is going to put up several hundred homes.
I asked him if the issue of water availability is being addressed during the many meetings that he’s involved in concerning this development. His answer was no and that he believed that Vegas was working on getting some water from Northern Nevada.
I asked him if he was aware of the fact that Lake Mead was the primary source of water for his Town (over 90%) and that the lake was at the lowest level recorded since its birth.
His answer to both questions was no.
‘The real estate investment trust, Mack-Cali possesses a 525,000-square-foot commercial condo unit at 125 Broad St. This single New York property is currently being unloaded by the company. It appears that the restructuring of the company resulted in the selling of their Manhattan property. Crains New York Business earlier revealed that Mack-Cali aims to eliminate its real estate holding in New York City as part of its divestitures.’
‘Mack-Cali bought the unit in 2007 for $273 million from SL Green Realty Corp. The 525,000-square-foot condo comprises of floors two to 16 at 125 Broad St.’
‘As a real investment trust company, Mack-Cali has come a long way. According to a recent post by The Real Deal, “The firm owns 29.7 million square feet of office space and 19 multifamily rental buildings containing roughly 5,700 units in the Northeast.”
The Manhattan property is not the only property that Mack-Cali has disposed recently. Mack-Cali sold 3 of its workplace structures at the Moorestown Corporate Center, totaling 0.2 million square feet in Moorestown, N.J. The net sales profits were $19.4 million, and it suffered a loss of around $0.1 million from the sale.’
‘Yahoo Finance previously reported that, “As of Dec 31, 2012, Mack-Cali had total debt of $2.2 billion, with a weighted average annual interest rate of 5.86 percent.” Yahoo Finance further reported that, “Its debt-to-undepreciated assets ratio was 36.7 percent, and cash equivalents of $58.2 million.’
http://www.realtytoday.com/articles/35435/20150915/property-check-mack-cali-plans-unload-new-york-city.htm
‘Home prices are overheating again. In fact, twice as many metropolitan markets were considered “overvalued” in the second quarter of this year as compared to the first three months, according to a new report from CoreLogic. That is, prices are inflated relative to incomes. This is not, however, a “housing bubble,” because by definition, an economic bubble eventually bursts, and home prices are very unlikely to fall.’
“Just because you’re overvalued doesn’t mean that you’re in a bubble or there is an impending crash. Some markets are overvalued because of strong fundamentals,” said Sam Khater, CoreLogic’s deputy chief economist.’
http://finance.yahoo.com/news/frothy-yes-dont-call-housing-162520158.html
“Some markets are overvalued because of strong fundamentals,”
http://tinyurl.com/pjaw3ow
btw what happened to Diana Olick? Didn’t she used to write with some integrity?
It’s 2006 all over again.
Except this time it’s all just so predictable & disgusting.