‘A New Real Estate World’ In Oregon
The Oregonian has this update from that state. “Last year’s frenzied housing market has noticeably calmed this year, even if home prices don’t yet show it, many of the area’s top real estate agents say. ‘Last year, we were managing traffic; now we’re trying to create the traffic,’ said Kathy Hall, a longtime agent. ‘Now, it’s a whole different thing.’”
“The conflicting observations pose a conundrum: How can a softening market produce a rising median price? The answers from the panel of real estate agents: The latest price figures reflect sales closed in May but negotiated a month or more earlier.”
“Eventually, several of the agents projected, marketwide price figures should reflect a moderating rise, say, in the single-digit percentages, but almost certainly not flat or negative.”
“Supply is going up and sales are going down. Sellers put 5,620 new listings on the market in May, up 27.9 percent from the same month a year ago. But buyers that month consummated 3,054 sales, down 6.6 percent, from the previous May.”
“The real estate agents suggested suburban areas and the highest of high-end markets, such as multimillion-dollar properties on Oswego Lake, are feeling pricing pressure earlier than other places. State Economist Tom Potiowsky said the agents’ sentiments, in and of themselves, also amount to reasonable leading indicators.”
“‘I’ve heard the same stories from around the state,’ Potiowsky said.”
“Dave and Debbie Heidel decided to put their custom-built three-bedroom house on the market for $559,000 in late December, thinking it would sell in two or three months. After all, an appraisal in October determined it was worth $549,000, so it should have been worth more by year’s end, Dave Heidel said.”
“Six months and three price reductions later, they’re asking $499,000, and working with a new agent.”
“‘Last year, there was panic in their eyes,’ said (realtor) Bob Haskins. ‘They had to buy a house. Now, they’re more realistic. If it’s priced right, it’s gone,’ Haskins said. ‘But if you’re ambitious on the price, you’re delusional.’”
“Even some homeowners in desirable close-in neighborhoods are finding themselves in a new real estate world. Ron Martin put his 2,800-square-foot Laurelhurst Cottage on the market in March for $419,000. Martin figured he would get an offer in a few weeks, he said.”
“But the house is a little too close to transit for many. Cars sometimes pull up, then drive off without seeing the house’s great features, Martin said. ‘It’s just been amazing,’ Martin said. ‘Has it cooled off that much?’”
…but almost certainly not flat or negative.
Are these the dying gasps of the “real estate never goes down” crowd, or what?
Well it’s flat and negative here in LaPine Or (30 miles from Bend).
Five months ago I mentioned on this blog the California investor that built a new house to flip on the one acre lot next door to my property. It has been sitting empty all this time and with a $20,000 price reduction in the last 45 days to boot. The for sale inventory has tripled since January and price reduced signs are everywhere.
Another flipper from Bend just broke ground yesterday for a new house on a lot a block down the road from me and one is just being completed by another flipper on the road behind my property, amazing!
DJ,
I just love that area. My buddy and I go up to the lakes there with his boat and it is just beautiful. Also for years LaPine was an area that working folks could build a modest cabin and have great times on the weekend. Now? Flipperville? Heaven help us!
DinOR,
Caught 11 rainbows last week at Paulina lake
Actually, the flippers are buying the one acre parcels that have the OLD junkie singlewides inhabited by trashy welfare renters. They remove these eye sores, kick out the renters, and build brand new stick built homes averaging 2000 sq ft. In a period of one year they have transformed the areas around my property into a pretty nice looking neighborhood. I couldn’t be happier!
‘But if you’re ambitious on the price, you’re delusional.’”
Did anyone see CNBC’s propaganda last night? David Learah, Century 21 CEO, and two others were feeding the machine. What complete crap. It made Shiller look like a chicken little. The who thing was so skewed, it was unbelievable. Oh, and if DL said soft landing one more time,I was going to heave….
I totally understand. It’s maddening when you go to Realty Times market conditions web site and the realtors stats don’t match up. They sugarcoat most of it - it’s sickening. Very seldom do you find one that tells it like it is.
That’s why we have these wonderful blogs
I watched the CNBC show. To me, Lereah and the other two RE guys seemed really nervous - it looked like the host and audience wanted to jump the three of them and beat the crap out of them. I think the word is out and people are seeing through the BS.
I saw the CNBC real estate “town hall” and thought it was remarkably balanced given how early we are in the downturn. My hat is off to David Lereah. He is the best at defending the indefensible. Despite the presence of NAR lackeys the show’s premise was clear: prepare for turmoil in the U.S. residential real estate market. Admittedly I did get bored during the last fifteen minutes (when the Wall Street analysts were on) and turned it off.
I saw the show as well. I liked the latest buzz-phase one of the “experts” used: “This is the new normal” referring to high housing prices and related costs.
buzz-phrase, that is. Also the questions from the audience seemed somewhat scripted: “what role has the media played in the recent housing boom”…etc.
CNBC was scrambling for audience members. They were advertising for free tickets the day before. Didn’t look like they scrounged up very many people. And the acoustics were terrible. Maybe the next show will be better.
“This is the new normal.”
That would be the economist from Harvard who famously published a paper about how to support prices by increasing supply.
These experts are “Stuck on Stupid” !!!
I saw a show on NBC on sat. morning - not sure of the name, have to look it up - it was early, they had some other real estate guy named “David” - not Lereah, and every time the host said the word “bubble” in his commentary, the RE guy looked like he was turning green, started squirming in his seat and uttered incredible things like “well, we could only have a bubble and price declines if the inventory went way up and interest rates rose and…” you get the picture. I was sitting there thinking “IDIOT!” Inventory is at an all-time high and rates are risinig every day, what part of WE ARE IN A BUBBLE don’t you understand ???
New normal my ass, that is that Harvard lackey who pulls statistics out of his butt, and says that there is no housing bubble. That guy is bought and paid for by the home builders. He is their bitch.
Ha! the hell with CNBC! This is the most rotten financial media in the world. Are you surprised ? It’s financial junk TV for the masses of morons that inhabit USA and a good part of the world. Long life to you Ben. No not Ben Bernanké. The other Ben, the one that has one of the most entertaining and informative blog on real estate! Boy did you open my eyes!
Amen. CNBC is to serious investing what McDonald’s is to food. Trading floors and investment managers have it on all day, but only because there’s no other choice.
passthebubbly,
I’ve been a “Bloomberg’s guy” for years. They are much better and there’s nothing better than watching Suzie Assad SLAM some CEO builder! She really doesn’t let up. Bloomberg (while not without it’s faults) is head and shoulders above CNBC! CNBC is for guys with two grand in an E-Trade account.
I agree Din;….Bloomberg is pretty much no nonsence…The CNBC people think they are entertainors…
Well exactly. Just give us the news already. We’re all big boys and girls and we’ll use the info as it impacts our portfolios (not what you’re peddling)!
Yeah I saw it. Complete side show. Might as well have showed a bearded lady or something. Just more realtor propaganda.
‘Has it cooled off that much?’ No, of course not Mr. Martin. Congratulations, you have bought and lived in a house, this entitles you to a luxurious lifestyle which comes from the overabundant appreciation that the structure provides. Go on cruises, play the best golf course, send your kids to Ivy league schools, all because of the wisdom of your purchase. Don’t delay, run down and get that home equity line of credit and start living the good life. Don’t you know? All those loser renters and prudent savers will end up subsidizing your high flying way of life because you are now a property owner. Relax, kick back, and rest assured, your house is working for you so you never have to work again.
Exactly. The world does not work that way. How often do “the masses” suddenly accumulate wealth for no reason? It isn’t real. Whether it is what we believe about house prices, or inflation, or anthing else, that lifestyle will be nuetralized.
True, and even when they are in a position to reap real weath due to a windfall (like oil discovery, etc), they usally sell the rights off for lump sum with no thought of future value or returns (just read about the oil boom of the 30s). Which makes the current bubble the more curious, the masses thinking about future returns? Not likely.
Classic Mort. You couldn’t have said it any better!
Get the affluent lifestyle that you deserve now!
Live your dreams without the bother of having the means!
Go on, you’ve earned it and more.
Unlock your home’s leveraging potential today and live like there’s no tomorrow! It’s time your home took care of YOU.
(cough)
Well said.
Mort,
Too funny! I have said this for years. How can this possibly make sense? The bigger problem is that with the MEW (Mortgage Equity Withdrawal) many “homeowners” lost interest in their careers! Why go through the stress of negotiating a salary increase when it would be peanuts compared to your home’s “appreciation”! In fact, who needs to contribute to your 401K at work or save for that matter? Your home will see to all your needs!
Interesting story. I just returned from a long trip, mostly on CA northern coast. One of my favorite areas. I’ve never seen so many “for sale” signs along Hwy 1…in the past, it has been so very rare to see any beachfront for sale. I also stopped by several offices, picking up flyers and speaking w/ agents. Very slow, many sellers bought last year, trying to flip 1M+ beach houses…not happening. Sea Ranch has an abundance of homes on the market. I mean…a LOT. So does Mendocino. Lots of “owners motiviated”. The bubble isn’t just percolating in the obvious places like Phx and Vegas….it’s happening in areas even I’m shocked by.
I’m happy I missed the Festival of Fools last night on CNBC…I’m sick to death of these “experts”…exactly how these paid shrills became experts eludes me, and they’re not even very good at what they’re paid to do.
David Liereah is good at what he does- the MSM and lots of people use his “soft landing” phrase as if it were written in stone.
“Has it cooled off that much?”
Yes, you dinkwad — it *HAS* cooled off that much! Geez, even the mainstream media is figuring it out; where have you been?
He’s been in Oregon. Listening to the past greater fools while trying to find a new one.
“Dave and Debbie Heidel decided to put their custom-built three-bedroom house on the market for $559,000 in late December, thinking it would sell in two or three months. After all, an appraisal in October determined it was worth $549,000, so it should have been worth more by year’s end, Dave Heidel said.”
Bingo. Another two months of dead sales activity during the “traditional” strong spring/summer selling season should finally knock out this flawed logic (although I must admit it did work for at least three years).
Of the five homes for sale in our 150 home development, five are for sale and four are the same floor plan. They started at $850k and have chased each other down to $799k, chipping off 5-10k at a time. The last comp was $750k last October, so they were doing the same thing; taking a comp and adding on the expected gain.
Come Sept/Oct, when school is back in, the harsh reality should really begin to take hold.
Ironically, if they had just priced initially at $750k, and before there were a total of four of them, maybe one or two would have sold and in effect provided some bouynancy to the market. Instead, greed took over.
sp bouyancy or buoyancy? You know, flotation!
as in bubbles in my beer.they always seem to pop.
And flat beer taste real (estate) awful! I think that the real estate bubble will leave in the mouth of most, a real bitter taste.
Last week I heard Mark Vitner (Wachovia Bank Senior Economist) on Bloomberg comment on the below, but had to paraphrase on my post, so I was glad to see he included the same information in Wachovia’s weekly economic report. We’ve discussed this stuff here on the blog but I found it interesting that he came right out and said it:
While the manufacturing sector is revving up, housing is cooling off a bit more than many likely realize. So far, sales and new construction have held up surprisingly well. This past week saw starts climb 5.8% in May, for example, while the most recent sales data put sales of new homes at just under a 1.2 million unit pace. Both numbers vastly overstate the strength in the housing industry. Construction is being bolstered by builders desires to build out some of their lot inventory. The likely result will be a spike in unsold inventories later this year.
The sales data are also deceiving. Sales are recorded whenever a contract is signed. While that makes intuitive sense, it leaves out one important variable, which is the number of contracts that are canceled. Such cancellations have soared recently, particularly in formerly red hot markets, such as Phoenix, southern California and parts of Florida. The net result is that builders are a lot less optimistic about the housing market, which is reflected in the NAHB housing market index, which recently fell to an 11-year low.
http://www.wachovia.com/ws/econ/view/0,,3200,00.pdf
(PDF File of the whole thing. Somewhat boring, unless you have a special interest in the Mexican Peso)
Thanks for the post Warrior….
“After all, an appraisal in October determined it was worth $549,000, so it should have been worth more by year’s end, Dave Heidel said.”
After all, real estate prices always do go up…
He almost sounds like he is whining.
“Six months and three price reductions later, they’re asking $499,000, and working with a new agent.”
I guess it’s the realtor’s fault.
Thar she blows.
I received May 06 Bakersfield numbers:
Listings up 356.3% YOY - 3,555 vs 779
Sales down 33.1% - 459 vs 687
Debt Coverage Ratio - 47.3% vs 38.7% - This is the WHOPPER. Loans are now almost half of salary. These are some FOOLISH folks out there!
That is a huge sea change. Almost every house for sale last May sold. Only 1 in 8 sold this May. Next May 1 in 64?
They aren’t making any more geographically land-locked smog bowls. There’s only so many places in the world you can get a lung full of smog, sulfer and methane. That’s worth a premium to the coasts, which they keep making more of in Dubai, Japan and Singapore. Just bulldoze in some land fill islands — and voila — more coasts. It would require much more effort to create large basins to trap smog.
HAHAHAHAHAHAHAHAHA!!!!!
That is not counting all the new homes for sale, I bet. I have heard about all the LA people moving to Bakersfield and commuting to LA. That seems like one hell of a commute. And I thought the Sacramento to Bay area commuters had it bad. I have to admit I have yet to meet one person in Sacramento that drives to the Bay to work. I talk to different people all the time. Maybe they are always driving, although at $3.00 per gallon and car repair & maintenance it might not be worth it anymore.
I actually did meet one guy that commutes from Placerville to San Francisco (3 hours one way.) Now that’s a super-commuter! I think he only made the drive 2 to 3 times a week, though and slept on the office floor the other nights.
Now that’s someone who loves his job! I personally wouldn’t commute more than 20-30 minutes! With a 2-3 hour commute I would in rather short order be questioning “why do I even exist?”
> I have to admit I have yet to meet one person in Sacramento that drives to the Bay to work.
That is because they spend their live’s in their car. I remember going down to the bay area from Folsom every weekend for the first 3 months that I lived in Folsom. It gets old quick.
The inflationary residential housing value run-up for the last 4 years has been created soley by hocus-pocus financing, aided and abetted by lender coercion of the appraisal process.
Joe Q. Buyer has finally smartened the f*ck-up, and has come to conclusion, the game is rigged, and he isn’t gonna be sucked in by 40 and 50 year debt instruments.
Gonna be a brave new world out there for homesellers-LMFAO!!!
Slightly OT — Soros on the real estate bubble (unlike our top economic policy makers, he sees it…)
Thx, Rich!
http://www.georgesoros.com/excerpt-realestate
Someone needs to go to the SDICA or whatever it is and post this except on that Tuscon guy’s sob story, and be like, “Well, I think George Soros pretty much out invests any of you guys, so I’d take him pretty seriously if I were you.”
Thanks for the post Stucco…
I’m a Portland, OR resident and financial analyst. I went into Pearl District Condos, the main realty group in Portland’s condo mecca, to ask a few questions about the market. This realtor seemed perplexed as to why listings have recently gone from 10 to 70. Condo prices are down about $40-60K by my estimate. Land and the “median” price have remain fairly elevated, but there is definite softening. In my opinion, low inventories of 2.3 months are what’s keeping the market strong. Once this reaches 5-6 months, however, we’ll be speaking a different language. All the hot markets like Portland won’t reach these levels till probably 2007, but we’ll reach ‘em.
I live in the Pearl (as a renter). The latest listings are now 81 (source Pearl District Properties on NW 11th) . On new supply,
http://www.movingtoportland.net/documents/Pearl%20District%20Trends%205%200.pdf
the Metropolitan going up on NW 11th and Lovejoy will be 19 stories and 121 units, and the unnamed building on the “Cronin Block” next to Bridgeport Brewery, will be 15 stories and 244 units.
http://www.movingtoportland.net/condos_pearl.htm
I’m convinced about half are flippers, as was the case with the Pinnacle finished last May. The Pinnacle still looks about a third empty as far as occupancy (they’ve been sold just not occupied). Notice how small the deposits are in the 61 unit Casey that is going up, see link above.
Question, did they tell you or show you that sales are running 30 a month? I would guess closer to 20, placing inventory at about 4 months.
Russ Winter,
Russ, count youself among the WINNERS! Not a day goes by where I don’t see some poor condo flipper BEGGING for someone to please rent his “loft” for 1/3 his PITI is! For now we’ll leave the inflated HOA fees out of the picture. My youngest daughter took us up to visit the Art School and my first question to the sales gal was where the hell do the students park! Where does ANYONE park? I’ll also leave the 70K tuition aside for now. Well the truth is the kid could rent a studio off the park blocks or elsewhere downtown for 3/400 a month. How many parents are “buying” these dumps for their kids and thinking when Jr. graduates we’ll just sell it and it will pay off all of his/her college loans! Yeah, come see me in 3 or 4 years and let me know how that’s workin’ out for ya!
The Metropolitan, The Wyatt … Don’t’ forget about the Casey in the Brewery Blocks. Or the Civic, the Westerly, the Cambridge, and the Vaux in the NW District … and the Benson Tower and Ladd Tower in SW …
They’re all peanuts compared to South Waterfront. The SoWa buildings are huge compared to these other towers, and my bet is that they will draw many potential Pearl ex-suburbanites – the ones that are drawn to the faux urban appeal, but don’t actually want to live in a city. My bet is that SoWa will burst the Portland bubble.
And parking at that art school? I didn’t even have a car when I was in college. Who makes college decisions based on parking?
annata,
So true! I especially appreciate your observation regarding the “faux urban appeal, but don’t actually want to live in a city”! That is soooo right on! My wife had hoped that daughter #2 would be able to commute 1 or 2 days a week for her gen. ed. stuff before getting some kind of apartment as we don’t live in town. But you’re right, going to school means plenty of walking, biking and pub. transit! (As it should). I grew up in Chicago and I see all of the PDX’ers that walk around pretending it is a city! Funny!
Someday when this Bubble bursts, people will actually live in the Pearl, and it’s legacy will be realized. I like it here, I can put away my car, walk everywhere, plenty of great things close. But what good is that for a speculator who only drops by on a weekend once in awhile? I’d say the “investor” who owns my loft, is realizing less than a 3% cap rate, and as you say, he’s lucky to even find a $2,000 a month renter.
Russ Winter,
If he’s making 3% bully for him! BY and large most “landlords” in the “Pearl” are the very definition of “speculator”. They rent them out to the tune of negative cash flow all in the hopes that they will be able to flip it in short order! Look, I don’t know what the “Pearl” thinks it is or what it thinks it can become (everyone there seems to think they are evolving into some higher life form) but I think what it is is OVERPRICED and OVERRATED! imho.
Jenson Hagen,
But be honest Jenson, were you seriously looking to BUY or just curious for a good laugh! I have friends that live up there and in order to buy into that sham you have complete and utter faith that RE (particularly the “Pearl”) will do NOTHING but “appreciate” FOREVER! I mean come on, for what you would be paying there you could live in Manhattan for crissakes! Tell the truth, you were on your lunch hour, were bored and decided you needed a little chuckle right? No right thinking person would buy there now!
Hell no I wasn’t buying. I’m trying to figure out the real estate market because it has direct implications for the general health of the stock market. Even a condo bubble burst could impact the economy.
I keep reading about how the MSM doesn’t get this, or they don’t get that. That is total crap. They get it. They know that housing is a house of cards. But their job is to go out and deliver the corporate message. The message is “keep spending, keep borrowing, everything will be fine in the morning”. They know it won’t, but they always need just a little more time to cash in those stock options before the end.
Housing crash? I don’t think these people give a crap. They have looted the system for all they could get, so what happens next is not their problem. Heck, they may even come out better after the implosion, as they have loads of cash to use to buy up property that comes back on the market via foreclosure. These people run the game and win regardless of the outcome.
In conclusion…
Welcome to America.
Not true actually. I founded and owned a successful newspaper for 20 years. Corporate doesn’t interfere with edit. Editors and reporters are overworked and very ignorant of the real world, particularly when it comes to economic matters or business. Most of what you read in newspapers is press releases. The realtors have better PR budgets, that’s all.
ready to move, I would like to think that you are correct but I find it most unlikely that this story amongst other big stories are just overlooked. Particularly when lots of folks regularly email or mail to these editors/reporters facts that would at a minimum raise questions in the mind of any analytical reporter.
Real estate is just one case in point but there are many others. A case in point is immigration. There are hundreds of stories from the minute men to border agents, that this administration is actively working AGAINST securing the border with Mexico. Then, a story like this http://www.eagleforum.org/column/2005/july05/05-07-13.html comes along and makes sense of the whole affair. Now, I’m not a fan of this particular author and I don’t KNOW what the actual truth of the matter is BUT, the legislation exists, the meetings happened, so the evidence, at a minimum, SCREAMS for a follow up by an investigative reporter. What do we see happening. NADA, ZIP, ZERO interest by ANY reporter. This is a story about the subversion of our constitution. An attempt to dissolve our sovereignty and nothing gets reported in the MSM. WHY?
REP Tancredo of CO is the only guy asking questions and the administration totally stonewalls because there is no press to turn the heat up and force the issue. I’m just pointing out ONE issue. I know of several huge issues that demand attention but all we hear about from the MSM is crap about American Idol or some such nonsense. So, in my opinion, I find it hard to believe that the lack of attention to these issues by the MSM is due solely or even largely to them being overworked or ignorant of these issues. Just my opinion but I couldn’t let the opportunity to vent pass by without comment.
Look at the profit margins of the major newspaper chains - twenty to thirty percent. There *aren’t* very many investigative reporters in the U.S. Most of the metro dailies are hiring 22 year olds with no experience and chasing out the 40 and 50 year olds so they don’t have to pay their benefits. Many of the reporters I’ve met hate to leave the office. They want to report by surfing. And they’ll believe any gov’t press release over any corporate one. It’s our sad educational system. I highly recommend reading European newspapers instead; they’re much better and you can read them online free. Unforunately we imported all the British tabloid celebrity crap, but there’s still some news out there. The only papers in the US worth reading is WSJ and NYT IMHO.
Personally I think the immigration stuff is all being blown up so that the immigrants get blamed in the coming rough economy while the bankers take the money and run.
Well, that article doesn’t address that issue directly. It mostly addresses the fact that the gov’t doesn’t want to fix the immigration issue and why that is so.
Are all the reporters so naive and disinterested in what is happening behind the scenes of gov’t? It just seems so incredible that they all would be disconnected with reality. Take the RE market for instance. Most of the folks on this blog, including myself WAY before I found this blog, new the RE market was going to crash hard. I think it was the most obvious call I’ve ever made but it was a big secret as far as the media was concerned. It almost had to be a concerted effort for that to happen, in my opinion anyway. I can’t arrive at a credible explanation for this disconnect on reporting of this bubble.
Flippers flopping in Tuscon on the SDCIA board:
http://www.websitetoolbox.com/tool/post/sdcia/vpost?id=1205179
Oh, the humanity!
I read the comments on that blog, and am astounded at the mentality. Someone suggested to opt for neg. am. loans and keep continuing to refinance. The fact that they are contemplating that type of logic ought to tell everyone of them on the blog that this is a massive disaster. Instead, they’re talking about sucking up “this one loss” and moving on to better deals. Roger that.
Interesting. I wonder how many are in her shoes? You know it’s a bunch. I hope Chris Szabo has a lawyer.
So txchic57 didn’t make a good first impression… lol
This is too funny
I thought her comment could have been more… directed.
The woman posting basically said “I’m a moron. Please tell me how to lose the least amount of money now that I’ve screwed myself.” And TxChic57 sounded like she was hitting her when she was down. Kind of like kicking a wounded puppy. Or at least a wounded rat. You may not have sympathy for the rat, but why kick it when it’s dying already?
A better attack would have been to point out that in that one thread, the woman had been told to:
1) Commit mortgage fraud.
2) Dig herself deeper in debt with neg/am.
She’d also been given good advice, though, such as “decide which hurts worse - a $60k loss or a ruined credit report. Then do that - quickly.”
Take the time to read the posts on this link. I love TxChick’s post and the comments that were returned. These idiot flippers actually think they are “investors” and say that flipping properties that they acquire at pre-sales has merit…blah, blah, blah. I hope ALL of these speculators that were just working the Ponzi scheme waiting for the next GF all get burned. Most of these guys were probably unlicensed stock brokers selling worthless penny stocks or working some other scheme on old or uneducated folks before they became flippers. GREAT POST TxChick, way to piss them off.
I’m surprised they didn’t remove it. I expected them to. I could have a field day on that board but I’ll leave them to their misery.
txchick57,
Too funny! The responses that I’d read felt like when as an older dad you go into the men’s room and there’s this “newbie” dad fumbling with one of those “changing stations”! While you may feel for the guy you find yourself thanking God (for the kids sake) they don’t use diaper pins anymore! Look guys, this is rudimentary stuff O.K? Suck it up, put a clothes pin on your nose if have to and get it over with already!
Email I just from Engle Homes for INDEPENDENCE, a large master planned community very close to Disneyworld. Starts with a big headline: $5,000 PRICE INCREASES JULY 5TH. They are raising their prices NEXT WEEK. OH, NO! PRICE INCREASES!!! Were we wrong? No bubble? Prices going up?? We’re going to get priced out??!! Please, read on:
ENGLE HOMES
$5000 Price Increase July 5th
Luxury Townhomes From $240s
Single Family Homes From $380s
Grand Opening
Model Center Hours: etc.
Crystal Eisen
ceisen@englehomes.com
Maria Aiello
maiello@englehomes
Katy Orihuela
korihuela@englehomes
Greetings!
This is the last chance to take advantage of our Grand Opening Incentive. Homesites are limited.
You’ll receive the lowest price on your new Engle Home. We Guarantee it!*
Engle Homes assumes the risk. Our price protection promise assures that from the time of purchase until the closing of your new home, should market conditions change and pricing adjust, our lowest pre- construction base price is guaranteed.
So don’t wait any longer! For a limited time, purchase the home you want and receive our guaranteed lowest pre-construction base price.
At Engle Homes we build buyer confidence, no regrets!
Grand Opening Promotion Expires June 30th
$5000 Price Increase July 5th
You Will Receive:
Single Family Homes
Granite Kitchen Countertops
Kitchen Cabinet Crown Molding
Under Cabinet Lighting in Kitchen
Black or Stainless Steel Appliances
Glass Top Range or Gas Range
Choice of Interior Paint Color
Choice of Kitchen Cabinet Hardware
UP TO $10,000 IN CLOSING COSTS*
Luxury Town-Homes
Meganite Kitchen Countertops
Kitchen Cabinet Crown Molding
Black or Stainless Steel Appliances
Glass Top Range
Choice of Interior Paint Color
UP TO $10,000 IN CLOSING COSTS*
*With Preferred Home Mortgage and Universal Land Title.
Luxury Townhomes
1,099 - 1,694 sq. ft. 2 car garage.
Single Family Homes
2,030 - 4,389 sq. ft.
Tile Roofs, 2 & 3 car garages
ASK FOR ENGLE
The prices are going up…but down…wait I’m confused, do I buy now for 5k more and get all the goodies? What if the price goes up 15k, do I get more goodies? If they lower the price I won’t get any choice of interior paint color? Heeeeeeeeelp! Heeeeeeeeeeelp! I’m stuck in a paradox! What do I do?
Choice of Interior Paint Color!!!
Sign me up - i’ll take a 50 year mortgage!
‘Ron Martin put his 2,800-square-foot Laurelhurst Cottage on the market in March for $419,000′
My my. If thats the size of a cottage what is the size of the McMansion
Good catch. BTW Laurelhurst is an older but very nice area of Portland (the streets are lines with old trees that are so huge they actually form a canopy, very nice). Most of the houses houses have been going for around $200/sqft. However the particular house in question could be in disrepair in addition to be close to the freeway.
freewilly,
Normally I would agree? Laurelhurst and many of the surrounding areas do have great “curb appeal” but it’s a lot of “fluff” in so many ways. Public schools are floundering, taxes are just UNREAL and if you have ONE conservative bone in your body you may as well have a target painted on your back. I’ve worked in Portland for many years but I would NEVER consider living there. Keep the “quaint” please, there are too many other options that offer more than cute coffee shops and people pretending they have money.
The ones trying to sell now must be hoping the saying “there’s a sucker born everyday” is still true.
Ben, OT but good negative article from Inman:
Investors less bullish on real estate market
Most expect a market decline over the next year
http://www.inman.com/inmannews.aspx?ID=53703
Listen to to Cathy Austin Fitts on KFI. Click the link You can listen online. She is talking about the real estate economic bubble. interesting.
Listen to to Cathy Austin Fitts on KFI, right now. Click the link You can listen online. She is talking about the real estate economic bubble. interesting.
Foreclosure filings on Florida homes leap
By Pat Beall
Palm Beach Post Staff Writer
Tuesday, June 27, 2006
Florida foreclosure filings jumped by 6 percent from April to May, according to a study by RealtyTrac Inc., an online data concern. That’s one new filing for every 821 Florida households.
By contrast, national foreclosure filings rose by less than 2 percent, averaging about one new filing for every 1,247 U.S. households.
The uptick in foreclosure activity is linked in part to the popularity of “exotic” mortgages. Given the area’s white-hot housing prices, it has been the unconventional loans, including no-interest and flexible interest-rate mortgages offering optional monthly payments, that allowed buyers to squeeze into modest homes with inflated price tags.
As the flexible interest rates of such loans reset, though, payments and overall debt can balloon.
“You just can’t have a median income of $58,000 to $60,000 and live in a $400,000 house,” said David Levin, a Delray Beach real estate consultant. “It just doesn’t work. You don’t need a Ph.D. to understand that $2 will not allow you to afford $3.”
But, he added, “people wanted to believe.”
By McCabe’s estimates, more than one of every two mortgages inked in 2005 had an adjustable interest rate. The Post’s review of mortgage defaults in Palm Beach, Martin and St. Lucie counties from Jan. 1, 2005, to March 31 of this year found that roughly half of the more than 2,100 troubled borrowers had loans with adjustable rates.
Yet, many believe defaults linked to adjustable rates are only the beginning. Interest rates on more than $1 trillion in such mortgages will be adjusted in the next 18 months.
Adding to the financial burden are two unexpectedly big bills facing Florida homeowners: Mortgage rates are resetting upward just as post-hurricane rate hikes in home insurance are pummeling property owners. And Florida Power & Light Co. bills have grown an average of 19 percent since January.
But with 8,898 properties entering some stage of foreclosure last month, Florida earned the unsought distinction of recording the second-highest number of mortgage defaults of any state in the country, trailing only Texas. In rate of growth of foreclosures from April to May, Florida is one of the top 10 states nationwide.
http://www.palmbeachpost.com/business/content/business/epaper/2006/06/27/a1d_foreclosures_0627.html
With all the thunder that Phoenix, Boston, LV and San Diego get it’s a wonder that Portland even shows up on the bubble radar at all! But we are. B/c this crash is about a return to fundamentals I suggest since we have the weakest fundamentals (and a total reliance on CA markets) that in the end we will crash the hardest. No matter what you do you will get paid less for doing it in Portland. In SoCAl we penalize you by charging more for your housing (sun tax+Ponzi scheme) in Oregon we penalize you by paying you less (hermit tax) b/c people move here to left alone with their misery. See, it all works out in the end!
Actually I just moved to Portland from SD and have the same salary as I had in California.
No fear though - I’m not an equity locust - renting and happy to do so at the current levels of imbalance
Uncle Git,
Glad to see you got while the gittin’ was good. If you’re familiar w/the term equity locust you must have visited patrick’s site? Anyway glad to have you! Salaried pos. may have some parity but if you’re an atty., MD or in pro. sales get ready to make less! It’s part of the “hermit tax”. You will grow to hate this place.