Sellers Have To Find A Way To Become More Flexible
WMTW reports from Maine. “The real estate market is on fire in Maine’s largest city. In many cases, homes are being snapped up even before they hit the market. Some say the market conditions are mimicking that of 2006. In the desirable east-end section of Portland, everything is going faster than it can be listed. The broker for a building being converted into 10 condominium units said five of the units were sold even before they hit the market. ‘Literally like within 72 hours of hitting go online, we had five units under contract within 72 hours. Now, even if you go back one year, that was not happening then,’ said Tom Landry of Benchmark Residential & Investment.”
“Low interest rates and low inventory are helping fuel the frenzy. Elizabeth Freeman is one of those home buyers who admits she didn’t act fast enough and lost out on a few properties she liked. ‘It’s hard in the hot neighborhoods to find something that’s not only reasonably priced or somewhat, and if it is, it’s gone in a day or two. So yeah, it’s a tough market right now,’ Freeman said.”
The Boston Globe in Massachusetts. “There’s a bit of good news for renters stretching to afford Greater Boston’s sky-high housing market: At least it’s not getting worse. Monthly rents barely increased in the first quarter of 2016, according to a report, as a wave of new apartment buildings competed for tenants. Winter is often a soft period, said Lauren Jezienicki, vice president of Bozzuto Development Group, which builds and manages apartment buildings in the area. But this winter was softer than usual. ‘There have been more concessions being offered,’ Jezienicki said. ‘I think a lot of it is due to the new supply coming on line.’”
The Real Deal on New York. “So this is what a ‘penthouse correction’ looks like? Of the 261 penthouse units for sale in Manhattan as of April 1, more than 35 percent of them had price chops since being listed, according to data compiled by listings portal StreetEasy at The Real Deal’s request. The median penthouse price was $6.7 million, and the average discount was nearly 10 percent, the analysis found.”
“The steepest cut was at Walker Tower, where the 5,995-square foot penthouse is now asking $55 million, down from $70 million, a 21.4 percent reduction. The recent cuts shouldn’t be a total surprise, given the growing sense that Manhattan’s ultra-luxury residential market is saturated and experiencing a slowdown amid global economic uncertainty. The overall market dynamic has also shifted in buyers’ favor, particularly on the high end. ‘Sellers have to find themselves a way to become more flexible,’ said Brown Harris Stevens’ Kathy Sloane. ‘It’s a buyers’ market and buyers are saying, ‘Fine, we won’t bid.’”
CNBC on South Carolina. “A sharp drop in vacation home sales last year may just be the tip of the iceberg. With the nation’s political future uncertain, real estate agents say buyers are leery of the economy and more hesitant to put money down on a discretionary purchase like a vacation home. In Hilton Head, South Carolina, real estate agent James Wedgeworth said the lower end of the vacation home market is still good, but anything over $1 million sits. And there is a lot of high-end product available. ‘We’ve got more supply than you can wave a stick at. We’re running 18-months supply,’ Wedgeworth said, referring to the high end of the housing scale.”
The Daily Sentinel in Colorado. “Prospects for rapid growth in the local real estate market weakened after Grand Junction endured the third-biggest drop in healthy market conditions of any city in the country, according to the index published last week by Nationwide Economics. The study considers employment, for example, because job growth normally produces a rise in incomes and enables buyers to buy new homes, said David Berson, the index’s chief economist. Unemployment insurance claims rose dramatically in the past six months in part because of layoffs at several large Mesa County employers, the Mesa County Workforce Center reported.”
“Layoffs reported at Halliburton in the fourth quarter last year, and at United Parcel Service and GE Oil and Gas earlier this year, raised alarms about the health condition of the city’s housing market, index economists concluded. ‘In response to a challenging market environment,’ GE Oil and Gas, for example, restructured in February to reduce costs, said Lindsey Benton, a company spokeswoman. ‘As a result, we … decided to close the Grand Junction, Colorado, office.’”
“Like Grand Junction, however, Boulder also saw its relatively healthy real estate market fall ill, but for a different reason. High mortgage costs in the Boulder area were the primary reason Nationwide lowered the fast-growing city’s index score from 0 to -1 after the first quarter. According to the index, the home city of the University of Colorado weathered the seventh- largest decline in healthy market conditions of all 400 cities considered.”
The Houston Business Journal in Texas. “Houston’s home foreclosure rate has been falling in recent years, but low oil prices could mean rising foreclosures in the Bayou City. However, foreclosure activity is rising in Texas, driven by weakening housing markets in former oil boom towns like Midland. The number of foreclosure starts in 2015 jumped 15.7 percent statewide and as high as 36 percent in cities like Midland, according to RealtyTrac.”
“Caroline Allison, a Houston Realtor with Keller Williams Metropolitan, fears the impact of falling oil prices — job losses leading to home losses — could ripple out from the oil patch to larger oil-dependent markets like Houston. Allison said she has noticed an uptick in the number of foreclosure listings in recent months and the number of clients looking to downsize their homes.”
“One of Allison’s clients, she said, is a former energy employee who was making $800,000 a year. The client, whom Allison didn’t identify, was laid off and found himself having to sell his multimillion-dollar home in The Woodlands and move into a smaller home, she said. ‘I’m seeing some deep downsizing,’ Allison said. ‘People have hit hard times and they’re trying to hold on.’”
“Some of Allison’s clients who have been laid off don’t want to give up their standard of living and their home. However, the sooner they make a decision, the more of their wealth they can preserve, she said. ‘You don’t want to burn through your retirement savings until you have no choice but to sell the house or let it go to auction,’ Allison said. ‘Most people end up in foreclosure because they were procrastinating.’”
‘Some of Allison’s clients who have been laid off don’t want to give up their standard of living and their home’
their standard of living and their home
Do these people ever save any money?
‘Most people end up in foreclosure because they were procrastinating.’
If you have to borrow money for 25 or 30 years to buy something, you can’t afford it.
But…but…interest rates. Now I can afford MOAR house!!!
I can afford MOAR house - unless this……
Subprime auto loan losses hit 11.2%: Moody’s
Reuters 4/7/2016 9:58 AM ET
Print Article
By Joy Wiltermuth
NEW YORK, April 7 (IFR) - Startup lenders in the US$40bn subprime auto ABS market that target borrowers with fragile finances helped push loan losses to a four-year high of 11.2% in January, Moody’s Investors Service said.
The closely-watched monthly metric, which is used by investors and analysts to gauge the health of outstanding auto ABS, rose from 8.8% in January 2015 and 7.8% in January 2014, Moody’s said on Wednesday.
The credit rating firm singled out roughly US$1bn of new securities sold by new entrants Global Lending Services, GO Financial and Skopos Financial as particularly concerning because their debut bonds sold last year contain loans that have quickly faltered.
“On one hand, they are small,” said Moody’s vice president and senior analyst Corey Henry about the sector’s newcomers in an interview.
“But if you have a market downturn these players are less likely to survive the shakeout.”
Concerns about rising loan defaults and fickle conditions for those heavily-reliant on the ABS market for funding have kept the subprime auto sector in the spotlight.
Skopos issued its first rated securitization of AA/A to B+/B rated notes in November.
Since the deal was issued, however, cumulative loan losses have quickly climbed to above 5% in March from about 2% in December, according to data provider Intex.
For GO Financial, which sold its first rated ABS in May, monthly loan losses nearly doubled in March to roughly 10% from about 5% in December.
Global Lending Services, which issued a deal in July, has seen its loss rate rise to roughly 4% in March from under 2% in December.
That compares to a low 2%-3% monthly loan loss range maintained by the sector’s benchmark names AmeriCredit and Santander Drive during the first 13 months after their securities were sold to investors, according to Moody’s.
Losses are expected to eventually reach up to 9% on AmeriCredit deals, which rolled up 12% loans to borrowers with 575 FICOS. But those typically rack up during the later part of the life of an auto loan.
The rated trades from GO Financial, Skopos and Global Lending Services, however, rolled up mostly riskier used car loans to borrowers with low FICO 543-555 average FICO scores at rates of 19%-21%, according to Kroll Bond Rating Agency data.
Morgan Stanley analysts also weighed in on the matter this week, but argued that most subprime auto bonds - with the exception of the November trade from Skopos - were still well-insulated from seeing their first dollar of principal write-down.
“In anticipation of worse collateral quality, the current structure of these Auto deals remains fairly resilient,” they wrote in a recent report.
None of the three new platforms have sold bonds with stamps of approval from Moody’s, Standard & Poor’s and Fitch Ratings. (Reporting by Joy Wiltermuth; editing by Shankar Ramakrishnan)
I was hoping that the article would publish pictures of some those million-dollar homes. But NO, got a Glamourshots blowup of Caroline Allison the realtor.
“But NO, got a Glamourshots blowup of Caroline Allison the realtor.”
I wouldn’t buy a house from her, but I’d enjoy sharing a glass of wine and a salad.
“I’m seeing some deep downsizing,” Realtor Allison said. “People have hit hard times and they’re trying to hold on. But lucky for me being a parasitical sociopath has me sucking their blood on the way up and on the deep downsize down! I get that sweet sweet commish either way! CHACHING”.
No kidding:
‘the sooner they make a decision, the more of their wealth they can preserve, she said. ‘You don’t want to burn through your retirement savings until you have no choice but to sell the house or let it go to auction’
Because if it gets that far she won’t get a sale.
‘the sooner they make a decision, the more of their wealth they can preserve’
I’d bet she was shakin’ her pom-poms 6 months ago. How many suckers did you put a hard sell on that are looking for boxes and driving uber now?
corrupt.lying.realtors.
“Caroline Allison, a Houston Realtor with Keller Williams Metropolitan, fears the impact of falling oil prices — job losses leading to home losses — could ripple out from the oil patch to larger oil-dependent markets like Houston. Allison said she has noticed an uptick in the number of foreclosure listings in recent months and the number of clients looking to downsize their homes.”
It’s beginning to look like 1986 all over again.
The folks I most pity are those who moved from elsewhere to Houston for better economic prospects. Where will they turn if Houston tanks?
Note that these dopes were earning $800k/yr, presumably on a W-2.
How do all these people end up with MT Pockets after earning that kind of dough?
Answer: They bought a house.
“They bought a house.”
They committed themselves to buying a house. If they actually bought the house then the house would be theirs, but they didn’t so it ain’t.
The wonder behind it all is a person can seemingly buy a house without actually buying it.
This wonder can easily drive up the prices of homes because, even though the seller gets his money at the time of dotted line signing ceremony the buyer doesn’t have to pay it, he only has to promise to pay it.
If the pain of making a promise of paying a high price does not come even close to the pleasure of receiving a high price (and this appears to be the case) then the path of least resistance to price movements is upward.
Thanks for the clarification $hitHouse philosopher.
People like to say they “bought a house” to sound impressive. But I always nail them on that phrase. I ask if they owe zero on it.
More $hitHouse philosophy (FWIW) …
This may seem to be a minor point but it isn’t:
The RE industry has two major divisions - renters and homeowners - but I think there should be three divisions - renters, homeowners and homebuyers.
Those who are in the homebuyer division believe themselves to be belonging in the homeowner division but actually they are closer to being in the renter division.
“…Those who are in the homebuyer division believe themselves to be belonging in the homeowner division but actually they are closer to being in the renter division….”
The only difference is that instead of renting a home they are renting money.
At double the monthly price of renting the house.
You aren’t really renting money either. You are buying money, for example you buy $500K NOW for $800K. The NOW costs $300K.
However, interest-only loans… now THAT is renting money, and not much different than renting the dwelling.
No Donk. $500k principle, $500k taxes and depreciation then the $300k interest. $1.3 million for a $150k item nets you a $1.15 million loss.
Instead you could have rented it for $300k netting $1 million in the bank.
Are U.S. stocks tethered to oil?
As oil goes, so goes the S&P 500
Adam Shell, USA TODAY
50 minutes ago
A motorist fills her car with gas at a gas station near an oil field pumping rig Feb. 12, 2016 in Oklahoma City.
(Photo by J Pat Carter/Getty Images)
It’s back! The correlation, that is, between oil prices and the direction of the U.S. stock market.
Oil prices, which had been sliding recently, dragging stocks down with it, soared more than 5% Wednesday to settle at $37.75 a barrel. And the price of the benchmark Standard & Poor’s 500 stock index followed suit, rising 1.1% to 2066.66, extending its year-to-date gain to 1.1% and putting it within 3% of its May 2015 all-time record close.
The correlation appears intact Thursday. After climbing 55 cents and as high as $38.30 per barrel in early trading Thursday, U.S. crude has been in and out of positive territory and was up just four cents two hours before the U.S. stock market opens. The S&P 500 was pointing lower, off nearly 12 points, or 0.6%.
Indeed, as oil goes, so goes the stock market. Higher oil prices, which were pushed up by a surprising drop in U.S. crude supplies last week and renewed hopes of a production cut from the world’s leading producers later this month, are viewed as a double positive by Wall Street. More expensive crude signals demand is holding up. Rising crude prices also takes pressure off oil companies that have borrowed a lot of money to finance their growing operations.
Of course, some of Wednesday’s rally, could be credited to the Federal Reserve. In the minutes of its March meeting released Wednesday, the U.S. central bank suggested it was leaning against not hiking interest rates in April, citing the “view that the global economic and financial situation still posed appreciable downside risks” to the U.S. outlook.
…
High oil prices mean high prices of fuel for the car. This means less money to buy Starbucks or Peets. Or iPhones or In-N-Out lunches. Conversely, low gas prices mean more money to spend on travel, hotels, air fare, iPhones, Starbucks, Peets, In-N-Out lunches.
I don’t buy the notion of high gas prices being good for stocks in general.
I believe the current situation is somewhat unique, thanks to a bevy of junk bonds fueling the oil bubble that are now on the brink of blowing up.
For how long can oil come up out of the ground at 1 million barrels per day in excess of demand before there is literally nowhere left to store it?
The way for the oil market, where supply currently exceeds demand by 1 million barrels per day, to reach equilibrium is for prices to fall. Lower prices would both reduce the rate of extraction and increase the quantity demanded.
Energy Commodities
Commodities Oil Gold Agriculture Livestock Currencies Index Interest Rates
US oil ends 1.3 pct lower on Cushing data, high Iraq exports
1 Hour Ago
Reuters
U.S. oil prices fell over 1 percent on Thursday after industry data suggested a key pipeline shutdown had not reduced crude flows to the U.S. storage base by as much as expected.
Market intelligence firm Genscape reported a build of 255,804 barrels at the Cushing, Oklahoma delivery hub for U.S. crude futures during the week to Tuesday, traders who saw the data said.
The build came despite TransCanada having shut since Saturday its 590,000 barrels per day (bpd) Keystone crude pipeline that moves crude to Cushing and Illinois.
Genscape did note a 481,485-barrel decline at Cushing in the five days to Tuesday, apparently due to the Keystone shutdown that was caused by a potential leak, traders said. But that wasn’t enough to offset total inflows for the week.
“I guess people were expecting even more impact from the Keystone closure,” said a trader.
Brent futures were down 36 cents, or 1 percent, at $39.47. U.S. crude futures fell 49 cents, or 1.3 percent, to $37.26 per barrel.
Higher Iraqi oil exports also underlined the global oversupply situation despite a positive U.S. government report on Wednesday on U.S. crude supply-demand that drove prices up by 5 percent.
U.S. crude inventories fell 4.9 million barrels in the week to April 1, compared with analysts’ expectations for an increase of 3.2 million barrels, according to data from the Energy Information Administration on Wednesday.
“We are in the aftermath of yesterday’s (EIA) data, but if you zoom out there’s still oversupply and record inventories,” said Hans van Cleef, senior energy economist at ABN Amro in Amsterdam.
“Production numbers from places like Iran and Iraq are in focus with people looking to see how it translates into the overall supply picture.”
Oil exports from Iraq’s southern ports have risen to an average of 3.494 million barrels per day (bpd) in April, an official from the state-run South Oil Company said on Thursday. This was above the 3.286 million bpd average for March.
A planned meeting of major oil producers on April 17 to freeze output around current levels, which in most cases remains at or near record highs, would do little to reduce an overhang in production with at least 1 million barrels of crude pumped every day in excess of demand.
…
The Wall Street Journal
Today’s Markets
Oil Rally Fades, Sending Global Stocks Lower
Banking shares fall but health-care sector makes gains
A rally in oil prices faded Thursday, sending global stocks mostly lower. Photo: Feng Renhua — Imaginechina
By Christopher Whittall and
Mike Bird
Updated April 7, 2016 8:21 a.m. ET
Global stocks edged lower in volatile trade Thursday, with investors now waiting for a new catalyst to set a direction.
The Stoxx Europe 600 was down 0.5% around midday, weighed down by a fall in banking shares. Futures pointed to a 0.6% opening loss for the S&P 500. Changes in futures aren’t necessarily reflected in market moves after the opening bell.
Earlier Thursday, European markets inched up following an unexpected decline in U.S. crude stockpiles Wednesday that pushed Brent crude sharply higher. The higher oil price had supported Asian markets earlier, but a fall in crude in European trading put pressure on the region’s stocks.
Brent crude, the international benchmark, was down 0.10% at $39.82 in choppy trade.
“What you’ve seen so far year-to-date is a lot of volatility in the market,” said Blake Crawford, a portfolio manager at J.P. Morgan Asset Management. “At the moment, people are waiting for a catalyst to push markets one way or another.”
…
Boston Metro Housing Market Caves; Prices Crater 11% YoY On Falling YoY Prices Statewide
http://www.zillow.com/ma/home-values/
I live in MA (hate it), only lived here for less than a year, and I am definitely seeing signs of cooling. In the “North Shore” area, in my town, I have been seeing the same houses sitting on the market stagnant now for weeks.
I was shell shocked moving to Mass, as the old money and funny money is endless. People pay $300+k for a crap shack to bulldoze and build a new cheap crap shack for another $500k. No idea how people can afford that. I feel like a hobo and I’m a mechanical engineer.
when you escape NE u never go back
in VA now
Greetings! Im actually originally from VA..well sort of. Lived there the longest (military kid). I certainly miss the freedoms and less taxes….Shoot in Mass they only allow criminals to own guns and even bigger criminals to own property!
I feel like a hobo and I’m a mechanical engineer. In these modern times, hobos & mechanical engineers are in the same social class.
Yes this is true, feudal times indeed. Serfdom!!
feudal times indeed. Serfdom!!
The laws of republics cannot contain the power of the new super-rich.
The laws of republics cannot contain the power of the new super-rich.
Laws are for the little people.
Not just mechanicals either, non-software EEs are right there with you.
Welcome to the ‘gig’ economy, where we have no full-time employees, and everybody rides the rails to their next job.
everybody rides the rails to their next job
At least modern hobos and tramps will not show up covered with coal dust like they did a century ago. That’s progress for you!
Maybe I should take my BS M.E. and license and frame it in my Civic and moonlight on the side for Uber/Lyft?? So I can afford a crapshack? Hahaa….God bless the US of A.
To what end? Why buy today when you can buy later for 65% less?
Remember…. Current asking prices of resale housing are 300% higher than long term historical price trend and double construction cost(lot labor materials and profit).
I’m seeing sh*t shacks in Metro West Boston sit without buyers. Check this:
http://www.zillow.com/homedetails/91-White-St-Belmont-MA-02478/2101762258_zpid/
03/29/16 Listed for sale $725,000
08/11/15 Listing removed $689,000
07/08/15 Listed for sale $689,000
I went to see this place for the LOLz. Smells like cat piss, horsehair plaster, floors are a mess, kitchen is awful and needs to be gutted & redone, the “garage” is actually a “studio”, whatever the hell that means, and can’t fit a car, and this sh*tbox is on a busy street. But hey, if it couldn’t sell at the height of last year’s mania at $36K under the current ask, I’m sure a price hike will do wonders.
I’m scheduled to see a place that just dropped it’s ask by $50K. Will report back.
Zestimate
$675,409
-$9,973 Last 30 days
Dumb question, but how reliable are the Zestimate? Just out of curiosity…. What do they base it off of?
go west, live near the Rockies!
Excerpt from a subscriber content Denver Business Journal article titled Soaring Denver home prices don’t dampen homebuyers’ desire, says survey:
“Aspirational and emotional factors motivate more than three-quarters of Denver first-time homebuyers, a new survey by Bank of America says.”
Desire? Aspiration? Emotion? LOLZ
I know someone that bought in Loveland a year ago and now has to move
maybe they can cover the 6% ?
‘Soaring Denver home prices don’t dampen homebuyers’ desire’
In a mania, people buy houses because the price is going up.
how many years for oil to get back to $80 ?
any opinions ?
VA_Donk,
Why would it when production costs are in the $5-$10 a barrel range. The question is, how long will it for oil prices to roll down to production costs.
Remember…. Nothing accelerates the economy and creates jobs like falling prices to dramatically lower and more affordable levels. Nothing.</b
The big energy players are cancelling multi billion dollar projects that were pinned to high priced oil all over the world on the expectation that oil will stay in the $25 to $45 range indefinitely.
$80+ oil wasn’t part of the “business cycle”. It was the result of the biggest credit expansion and construction boom in history. How long until that happens again you might ask.
Wild card is the rate of dollar depreciation…
Consider that we’ve already had the Great Inflation. It was identical to the Great Credit Expansion. What happens after that is something entirely different. To continue inflating, some bigger debt donkey than China has to happen.
When do you expect this great contraction to happen?
It’s happening right in front of you.
Donk Van Winkle?
Mel Watt is handing out mortgages to clans of illegals living 8 to a house, unemployed Millenials can rack up a 700 FICO to speculate on a rotting rattrap in a war-zone north of Philly. Local governments are handing out down payment assistance to people buying half a San Francisco rowhouse “starting from the 1 millions” which shares walls and ceilings with NOT PART OF RESIDENCE. Does this look like a credit contraction to you?
Indeed it does Donk. See for yourself.
US Housing Demand Collapses To 20 Year Low
http://1.bp.blogspot.com/-0q8fIAsczFk/VUANHEhSbnI/AAAAAAAAjRs/oANwXOUviGw/s1600/MBAApr292015.PNG
Who gets divorced in America, in 7 charts:
https://www.washingtonpost.com/news/wonk/wp/2016/04/06/who-gets-divorced-in-america-in-7-charts/
Article reports that for those with a bachelor’s degree, the divorce rate is 28% for men and 29% for women.
And for half of those who remain married, see also the sub-Reddit titled Dead Bedrooms, LOLZ.
Don’t be a betabux. Just don’t.
Denver, CO Housing Market Caves; Prices Dive 6% YoY On Cratering Housing Demand
http://www.zillow.com/denver-co-80203/home-values/
Meanwhile, in the other Colorado:
“The police estimate that there are 1,200 gang members — male and female — in this community of 108,000.”
http://mobile.nytimes.com/2016/04/08/us/heroin-related-violence-mars-pueblo-colorado-effort-to-recover.html
I’m posting this here, in the absence of the Bits Bucket. Palmetto, any comment on this? I only ate at the Colonnade a couple of times, but it’s another part of our local culture and history gone, to be replaced by a luxury condo building with many units sure to be owned by people who won’t even live here and who might be using the purchase as a means of laundering money.
http://tinyurl.com/hhxbfyx
“The Colonnade, the historic waterfront restaurant that has been a staple in South Tampa for more than 80 years, has been sold and the site will be redeveloped into high-rise condominiums.
A joint venture between Ascentia Development Group and Batson-Cook Development Co. purchased the property along Bayshore Boulevard for $6.2 million, according to Hillsborough County Clerk of Court records. The developers plan to build luxury condos with views of downtown Tampa and Hillsborough Bay.
…
‘We thank the ownership family of the Colonnade for entrusting us with a property where they served the Tampa community for many generations,” Jay Tallman, principal with Ascentia, said in a statement. “We are excited to bring a new project to life along Bayshore Boulevard, and we are confident that what we will propose will set a new standard of excellence for Tampa.’”
The only waterfront restaurants left in Florida will be at the bottom of a condo tower.
And you can thank the UN Agenda 21 development template for that.
Will there be valet parking for my black helicopter?
Geez, snake, I saw actually saw that story on the newz. Never dined there myself. As sad as it is to see a long time local institution go away, I don’t blame the owner of the property for selling it. I certainly would.
My prediction, though, is that it ends up vacant and sits there for years. So I hope the owners got all their money up front.
I actually think they sold at the perfect time. I’m surprised they held out this long. I agree, it will sit vacant or be built and remain empty for a while. Something like Skypoint in DT Tampa.
The clientele definitely was older. But the food was above par. I agree that it’s hard to turn down $6 million, and hey, you don’t have to stay in business if you don’t want to. But something unique to Tampa is going to be replaced by something banal everywhere. Back in the 2004-06 timeframe, my favorite Tampa burger place, Jimmy Mac’s, was torn down to make way for a forgettable condo-townhouse-luxury homes development in the Westshore area. I recall that a local reporter covered the development’s opening party–remember those? IIRC the story mentioned circus acrobats and top-shelf liquor. The logo, however, looked sinister and brought Medusa to mind.
I am new to the HBB, but I love it! I got in and out of the housing market so quick, it was such a dumb move on my part to “get out of the den” back in VA. But I am glad I got rid of that 30 yr note, I took a small loss to get rid of the permanency and debt load, but hey I can move wherever now.
On that note, I am currently in Mass (less than a year). You should see the absurdity. People here (spoiled housewives) think $600-800k crap shacks are nothing. Go figure they have a huge 2 ct useless rock on their fingers. I have never seen so much funny money wealth in my life (grew up military). Buying $300-400k crap shacks in CASH only to bulldoze and build a new uglier crap shack. I cant believe I feel like a hobo as a mechanical engineer in this area, as if I made a horrible career/educational choice.
Just rent and live it up. You’ll have so much money left over after paying rent you won’t know what to do with it.
Remember…. Rent is a small fraction of the cost of buying a depreciating asset like a house at any time in the last 15 years.
Yep, I am definitely renting. My mentality when I first bought a crap shack condo was “I’m throwing away money renting”…so typical. Now I just say to heck with it, and enjoy texting my landlord when the toilet doesn’t flush right.
No more HOAs, I don’t care for painting walls, buying appliances, or accruing useless $h!t that requires an attic or garage to store!
Buying a house used to be the “smart” thing to do. Back in the days of down payments, and when your monthly mortgage payment was less than an equivalent rental. That was the payoff for assuming the “risk” of owning the property.
Now? In a lot of circumstances, not such a good deal. Like paying more than an equivalent rental, for the privlege of being able to paint the walls any color you want. Or “job security” and the current lack thereof. Or the fact that homeowners are one big, fat, non-portable target for state and local taxing authorities.
In my case, I had forgotton on how much free time you have as an apartment dweller, vs. spending tons of time and money on maintaining the property when you own the place.
back in the days of a 3.5% growth econ
now and for many years growth w be sub 2%
Ha remove govt spending and we are negative “growth”. Our GDP would be a joke.
I will say in Hampton Rds Virginia area it made more sense to own because the stability of the military work and the rental/mortgage price was nearly even.
“the rental/mortgage price was nearly even.”
Only when using DonkeyMath. Once all expenses are accounted for, rental rates are a small fraction of the cost of buying.
the stability of the military work
The stability of government spending.
I’m ex-757′er! Just moved to Northern Virginia from Norfolk about 2 years ago.
Housing was grossly overpriced there as well.
“UK Housing Bubble Pops: London Offers 20% Discounts On Luxury Apartments”
http://www.zerohedge.com/news/2016-04-07/uk-housing-bubble-pops-london-offers-20-discounts-luxury-apartments
It’s going to take far more than a paltry 20% reduction to get back to long term historical price trend metrics.
“The department of education (a useless body that I would eliminate in one second if given the chance), cannot figure out why this is happening.”
http://www.zerohedge.com/news/2016-04-07/shocking-statistic-over-40-student-borrowers-dont-make-payments
The education loan was supposed to pay for itself.
heh, just like the war in Iraq.
Well, “higher education” turns out to be another taxpayer funded bankster scam.
No “pent-up demand” for $500,000 starter homes happening here.
Majority of millennials have ‘no idea’ when student loans will be paid off:
“More than a third of millennials say they wouldn’t have attended college at all had they known the extent of the costs in advance … millennials, defined as those between the ages of 18 and 35, have an average student debt of $41,286.60 … 15 percent of those polled said they weren’t sure what their student loan balance was, and more than a third didn’t know what the interest rate is on the debt.”
http://www.bloomberg.com/news/articles/2016-04-07/majority-of-millennials-have-no-idea-when-student-loans-will-be-paid-off
I know when my brethren’s loans will be paid off. When Obummer waves his magic wand and takes from everyone else to “restructure”.
I’ll expect a $40k check for me being a good ole American and getting through school debt free. Wont happen of course…
Bainbridge Island, WA Housing Market Craters; Prices Plummet 6% YoY As Excess Housing Inventory Balloons
http://www.zillow.com/bainbridge-island-wa-98110/home-values/
Subprime is back:
http://www.bloomberg.com/news/articles/2016-04-07/apollo-s-push-into-a-lending-business-that-others-call-predatory
“This sucker could go down” — George W. Bush
Cover your eyes jingle:
“In my experience, about 50 percent of people default or move out in the first year,” said Herriage, who’s now buying, flipping and renting homes and lending money to real estate investors. “When you look at neighborhoods where this is prominent, most are well below the median home price for that metro area and the person obligating themselves to payments is almost always going to be below the poverty line.”
https://www.cars.com/vehicledetail/detail/657927943/overview/?aff=criteo&BAC=criteolf91814
why do peeps buy tiny houses
just get this
Re: Comment about the listing from Roeland Park, Kansas I posted yesterday
Asking $139K. Property taxes = $3000/year or thereabouts.
Yeah, it’s high. Welcome to Kansas. If you think that sucks, just wait until you go get your car tags renewed.
Add to that the 8-9-10% sales tax rate (depending on location). On EVERYTHING, including prescriptions and food.
Add to that the fuel tax.
Gotta give the “producers” that super low/0% income tax rate.
But why should I bitch? I’m paying ZERO state income tax on my 1099 income.
I joined the gold rush, just like 300K “independent businessmen/1099 contractors” have gone the LLC route since 2012.
I’m sure the Missouri Dodge dealer I bought my car from appreciates it. As do the Missouri gas stations, with their lower gas taxes.
So does Colorado and California, which is where a lot of the local 1%ers spend their time, especially in winter. Calculating precisely, of course, how long they can stay there without being considered permanant residents.
So Kansas is conducting the experiment of replacing income taxes with consumption taxes.
Pretty much. They raised sales and cigarette taxes last year.
The year before that, they cut a bunch of money from the schools and programs for the “takers”.
The government got sued for underfunding the schools. The Kansas Supreme Court agreed. Brownback’s answer is to push the legislature into discontinue making Kansas Supreme Court positions permanant, and pack the court with his flunkies.
The beatings will continue, until the economy improves.
All of this was supposed to lead to a Supply-side/Trickle down utopia with growth making up for the lost revenue.
Suuuuuuuure. And the checks in the mail. And I’ll pull out this time, honest I will…………
But isn’t that what the lotto is for?
Move to the earthly paradise of California….
Property taxes…by millage lower, yes, but values are much higher, so if you bought recently, you’ll be paying more
Car tags - not sure, b/c my cars are pretty old (but still >$100 for the oldest, plus smog checks every other year, which keep going up in price)
Sales tax - about 10%, too, although food is excepted
Fuel tax - yup, got that, too, plus the EPA rules that add to the cost
And, finally, of course, we’ve got all CA’s great and wonderful income tax!
So what income tax state has significantly lower non-income taxes than Kansas? (Besides Oregon, which has no state sales tax. Note that OR’s neighbor, Washington, has sales tax but no income tax. Which is better?)
lol.. Stop on by Western New York State and see what $3k in taxes will get you.
I’ve all but given up hope of owning (here anyways…)
http://www.realtor.com/realestateandhomes-detail/12974-Clinton-St_Alden_NY_14004_M49440-56586?ex=NY587661953
“Open Floorplan…” rofl I wonder if that means the roof caved in…?
Rich
‘Like Grand Junction, however, Boulder also saw its relatively healthy real estate market fall ill, but for a different reason. High mortgage costs in the Boulder area were the primary reason Nationwide lowered the fast-growing city’s index score’
Who says all borrowing is the same? Getting nervous bankers?
I thought that was a strange statement too but didn’t comment.
What’s the problem??? Delinquencies ramping from already record high levels?
“Getting nervous bankers?”
Not at all. My a$$ is covered and it will remain covered for as long as my financial status anointed to me by my fully owned political lackeys remains as TBTF.
Suckers. Bahahahahahahaha
There is no “pent-up demand” for $800,000 starter homes in Boulder.
Boulder, CO Real Estate and Homes for Sale
422 Homes
http://www.realtor.com/realestateandhomes-search/Boulder_CO
Boulder, CO Price Reduced Homes for Sale
77 Homes
http://www.realtor.com/realestateandhomes-search/Boulder_CO/show-price-reduced
Per a quick perusal of Glassdoor, software engineers working for Google in Boulder make from $105K to $145K.
Which as of now, is only 340 jobs.
The rest of the flyover, back office economy can not afford $800,000 starter homes in Boulder.
Which as of now, is only 340 jobs.
Are you forgetting the rich? They don’t need no stinking jobs.
WHITE CITY: THE NEW URBAN BLIGHT IS RICH PEOPLE
BY ALEXANDER NAZARYAN
… There is really only one strike against the New Urbanism, but it’s a strike thrown by Nolan Ryan: It turns cities into playgrounds for moneyed, childless whites while pushing out the poor, the working-class, immigrants, seniors and anyone else not plugged into “the knowledge economy.” Right around the time that Michael Bloomberg was remaking Manhattan as a hive for stateless billionaires, I saw a slogan that captured perfectly the new glimmer of the city: “New York: If you can make it here, you probably have a trust fund.”
http://www.newsweek.com/white-city-new-urban-blight-rich-people-443310
Might as well call it the “oligarch economy”.
Most of Maine is rural and so cheap (nothing left) after logging completely pulled out. The seacoast (Kittery to Portland to Bar Harbor) is the playground of the uber wealthy of NE.
People actually commute 1-2 hrs from Maine/NH all the way into Boston to make that good “city money”, ha, what a joke. No one ever factors what their time is worth when they move further and further away from the city of their work.
Portland’s market is a joke, besides a few breweries, an art school, small oil ports (ha, $/bbl), there is nothing in Portland but young hipsters and homeless.
Portland is no different than Boston. Massively inflated prices 3x higher than long term trend, record mortgage delinquencies, record vacancy rates, record amounts of excess empty houses.
And Somalians, right?
The left keeps complaint about taxes being too low in KS
They have a floating restaurant(DeMillos’) Whoop-di friggin do!
I repeat myself (apologies), but the price dive on the rental we’re in resumed its plunge after a five day pause - $1,200 down today to $264,945 (Zestimate), purchased at $276,100 (plus substantial bucks for a half reno) in May, 2014. Add in the cost of no takers for the rental for months at a time until we came along.
I’m looking at it daily with the same grim fascination I had watching prices fall here in Las Vegas in 2011-2012. For this place, recent peak $296K, historical peak $475K, 2346 sq. ft., 1968 house still decrepit in spots.
A coworker in my industry bought suuuuuper low in LV. I think at it’s peak this condo was sold for $400k or something dumb, and he picked it up for $50k in the dip. I wonder how bad some of these markets will drop….
You’d have to have rocks in your head to buy a house at these prices anytime in the last 15 years.
so write a lease w a monthly “adjustment ” clause
it’s fair since u share the risk
That sounds intriguing, but I’m locked in until end of June, 2017. I don’t know if a LL would go for that unless the rent was going anywhere but up. It is true that if the downward slide continues, I’ll be overpaying the market rent. I signed two years because I am just so sick of moving.
TBoom, I never circled back to let folks know how things went with my LL selling the house we were renting (we’ve moved out at this point)
They were very invasive, showing up without any notice (and walking around in the back yard without even knocking on the front door to let us know they were here). When I let them know this was unacceptable, they came back talking about damage to the trees in the back and the house, and how they had to be there to fix it (there’s no damage). They also said they were listing the house in 2 days and would put a lock box on the door.
With the consultation of a lawyer, we sent them a nice stern letter outlining our rights and our position on what’s reasonable and what’s not. Didn’t hear a peep from them for 2 weeks - but they stopped coming to the house. The next contact was an email with the subject “48 hours notice”. They did that twice — gave notice twice, came, did their thing, and left.
So, in the end it worked out, though we do have to pay the lawyer. Money well spent in my book!
Now we just need to prepare for the battle over the deposit
Thanks for relating your experience when I asked a while back!
Ugh. Drumminj, I’m so sorry to hear that. They’re so damned predictable. I had hoped your experience would be better. It’s a real Jekyll and Hyde thing. Their lack of consideration for your situation is the part that’s really galling. Sure, it’s their house, but why must they act that way? It’s a rental - what did they think you were going to do, wreck the place? They’re not just graceless, they’re nuts.
Some people take the lord in landlord too seriously
Serfs out!
US Steel laying off 25% of their salaried employees.
http://triblive.com/business/headlines/10263460-74/steel-company-workers
Hope none of them overpaid for homes in lovely Lawrenceville.
Falling demand / low steel prices / cheap foreign imports — it’s a wonder US Steel still bothers to exist.
Shoot I didn’t even know we still had US Steel. All the steel used on the Navy ship I worked with was from China (no joke). The piping material all came from Mexico. Even the US taxpayers are on the hook for foreign profits!
Overcapacity in pretty much everything everywhere.
Don’t borrow money to buy things you don’t really need at bubble prices.
wait till the 84 month car loan world pops
steel will get creamed
In the usa. But the Chinese and Indians need cars, lots of cars…
Comment by Muggy
2016-04-06 09:28:45
My CU has below on the banner at login, where there is hardly EVER a special notice. This is the FIRST time I have ever seen this:
“A reminder for members with mortgage loans: Past Due reminders are based on the due date (the first of the month). We provide 15 extra days, and do not consider your mortgage loan late unless it remains unpaid after the 15th.”
Comment by Jingle Male
2016-04-06 11:22:49
This is standard on all loans I have seen in the last few years. I like it because I pay the loans on the 7th, giving me time to deposit rents into the account. Very convenient.
……………………………………………………………..
Rolling in the cash flow, eh?
Meanwhile, here in San Diego housing prices and “all cash” buyers have gone insane!!!
Where in the hell are so many people getting so much cash to purchase a half million plus stucco/chickenwire/styrofoam crap shack!? Where!?! I want some too!!!
http://www.bubbleinfo.com/2016/04/07/is-it-a-good-time-to-buy-a-home/
It really makes me wonder where I am going wrong in life.
Not living at home until 30? Being born to the wrong genes/last name? Family not coming off the boat here first in the 1700-1800s??
Maybe my first and foremost mistake is being an engineer and not a financial industry paper mover?
Dandroidz - since you’re new here, be sure to check out the Joshua Tree Extension (Firefox or Chrome) — makes keeping up with the blog a heck of a lot easier (and enjoyable!)
Dan isn’t new here.
@Jake
I am actually new here! I’ve been reading it over the last couple months, but never commented. I figure I will now add commentary.
mmmmkay.
Fake Yuan.
San Diego is gross, too crowded, too dirty.
And too damn hot.
Guess where *I* am spending the next month X(
1984 - Crazy Eddie - YouTube
http://www.youtube.com/watch?v=jc-Mhynh_pg - 173k -
San Francisco County, CA Housing Market Craters; Prices Dive 5% Countywide As Demand Plummets To 20 Year Low Nationwide
http://www.zillow.com/san-francisco-county-ca/home-values/
Creeping closer to closing. It’s the biggest financial mistake of my life and I can’t wait.
https://www.youtube.com/watch?v=qLlUgilKqms
“It’s the biggest financial mistake of my life and I can’t wait.”
Don’t feel bad. Bright young people in my circle are making the same mistake. So long as everyone is doing it, where is the risk?
Take yer headphones off for 10 seconds, then pop em back on if you don’t like ads.
Grateful Dead — He’s Gone (live in Europe ‘72):
https://www.youtube.com/watch?v=7BgzrfUA8lo
David Cameron’s eyes are sort of piggy and just a tad too close to each other.
+1 Yep, beady-eyes.
Palm Beach Gardens, FL Housing Market Craters; Prices Plummet 7% YoY
http://www.zillow.com/palm-beach-gardens-fl-33410/home-values/
How is the Chinese government’s corruption crackdown working out?
ft dot com > World > Asia-Pacific >
China
April 7, 2016 5:07 am
Panama Papers tie more top China leaders to offshore companies
Patti Waldmeir in Shanghai and Tom Mitchell in Beijing
In this March 13, 2016 photo, Chinese Communist Party Politburo Standing Committee members Liu Yunshan, right, and Zhang Gaoli read a work report during a plenary session of the National People’s Congress at the Great Hall of the People in Beijing. The Panama Papers document leak reported by the International Consortium of Investigative Journalists names family members of eight present or past members of China’s all-powerful Politburo Standing Committee, including the brother-in-law of president and Communist Party leader Xi Jinping, daughter-in-law of the Politburo Standing Committee’s fifth-ranking member of Liu, son-in-law of Zhang, the seventh and lowest-ranking member of the Politburo Standing Committee, and a distant relative of the founder of the communist state, Mao Zedong.
(AP Photo/Andy Wong)
Two more members of China’s top leadership have been caught up in the growing global controversy over offshore companies after it was revealed that their relatives used the services of Mossack Fonseca, the Panamanian law firm that has helped global political elites manage their fortunes.
In its latest Panama Papers revelations, the International Consortium of Investigative Journalists said in-laws of Zhang Gaoli and Liu Yunshan were shareholders in companies incorporated in the British Virgin Islands.
Mr Zhang, executive vice-premier, and Mr Liu, the ruling Chinese Communist party’s propaganda head, both sit on the seven-member Politburo Standing Committee, China’s most powerful body.
It was not clear what assets Mr Zhang’s son-in-law, Lee Shing Put, and Mr Liu’s daughter-in-law, Jia Liqing, controlled through the BVI vehicles.
The revelation brings to three the number of Standing Committee members with relatives cited in the Panama Papers.
In its initial report, the ICIJ said Deng Jiagui, brother-in-law of Chinese president Xi Jinping, was among Mossack Fonseca’s clients. Mr Deng’s wealth was first revealed by Bloomberg in 2012.
…
twitter.com/billsmafia72/status/597559420617371648 - 112k -