May 31, 2016

The Money Started Leaving

A report from Fairfax New Zealand. “The Government may be denying the hot-property interest of Chinese investors but real estate agents are opting for the reverse tactic in a wave of new marketing material being sent out to homeowners. Ray White’s Mt Albert branch in Auckland recently posted a flyer to local residents about a ‘new generation of Chinese investors’ looking to make their ‘presence felt’ in the property market. The company claims it can connect vendors with ‘Chinese clients looking to buy in New Zealand.’”

“It comes after a Barfoots market newsletter in March, headlined ‘Chinese buyers coming back to Auckland property market.’ It quoted property coach Ron Hoy Fong predicting a huge increase in house values. ‘The market is going bananas after May. I anticipate we’ll jump back up to the 50 per cent over capital values this year,’ the newsletter said. Ray White agent Susan Woods-Marwick said the flyer was solely aimed at those who might be interested in selling their house. ‘My flyers aren’t for the Chinese buyers. My flyers aren’t directed at buyers at all. My flyers are directed at the vendors.’”

The Business News Network in Canada. “More homeowners in the oil patch are falling behind on their mortgage payments as Canada’s housing agency warns crude prices remain the most significant threat to the market. The number of Alberta and Saskatchewan homeowners falling 90 days behind or more on their CMHC-insured mortgages continued to move higher in the first quarter, according to the Canada Mortgage and Housing Corporation. In Alberta, the arrears rate hit 0.35 per cent as of March 31 from 0.25 per cent a year earlier. While the rate is still low, it has increased 40 per cent in one year. In Saskatchewan, the arrears rate was 0.70 per cent at the end of the first quarter – up from 0.48 per cent a year earlier. That’s an increase of 45 per cent.”

“Meanwhile, fresh concerns were raised Monday about foreign money and the potential to derail the Vancouver and Toronto markets. Sherry Cooper, chief economist at Dominion Lending Centres, notes Vancouver home prices have ’surged exponentially with the rising outflow of Chinese capital looking for a home.’ To a lesser degree, the same is true in Toronto, Cooper wrote in a note to clients. That said, ‘A slowdown in the volume of Chinese capital moving into Canadian housing is a meaningful risk factor for the hottest markets in Canada,’ according to Cooper.”

Channel News Asia on China. “China’s US$50 billion replica of Manhattan in the northern port city of Tianjin still lies mostly unfinished and empty nearly a decade after construction began. Several reports have labelled the development in Yujiapu a ghost town. It is being billed as China’s version of the Big Apple. But 8 years after construction began, many of the buildings appear unfinished. Some construction sites have been abandoned, while the streets are deserted.”

“A newly-built shopping mall lies just a short walk away from a brand new train station connecting Yujiapu to Beijing. But there are hardly any shoppers. Restaurants in the mall are struggling to stay afloat. The Hexiangan hotpot restaurant started operations in January. On most days, it is raking in only about US$300 a day. Its manager Mr Lin said: ‘We had high hopes for the future of this place when we selected this site, but we didn’t think it could be as bad as this.’”

The South China Morning Post on Hong Kong. “Homes in Hong Kong are among the world’s most expensive, but getting a foot on the property ladder has become surprisingly easy recently, thanks to aggressive mortgage tactics by developers desperate to push sales in a falling market. Offering home loans of up to 80 to 95 per cent of a flat’s value, without the need for proof of income, has become the sales tool of choice for many developers, allowing buyers to bypass strict guidelines on mortgages offered by banks but sparking concern that buyers may be setting themselves up for defaults and the loss of their homes should the economy remain sluggish.”

“‘Developers provide a solution for those who cannot pass the banks’ mortgage stress tests. Recently, about half of the new flats sold have gone to buyers without regular incomes,’ said Louis Chan Wing-kit, Centaline Property Agency’s managing director for residential.”

“These buyers, whatever their jobs, either had insufficient savings to make the down payment of 40 per cent of a flat’s value under banks’ standard mortgage lending requirements or were those able to pay upfront but whose monthly salaries failed to meet banks’ requirements, he said. He expected some developers could even offer 100 per cent mortgages if the market deteriorated further.”

Bloomberg on Taiwan. “Taiwan’s home prices, which have fallen in the past year ending a decade-long bull run, are poised to extend declines as the economy contracts and a new presidential administration focuses on equitable wealth distribution.”

“Home values in Taiwan dropped 1.2 percent and transactions declined 15.5 percent since the first quarter of 2015, according to data from the Interior Ministry, while capital Taipei was the world’s worst property market in the year ended March among major cities tracked by Knight Frank LLP. Taiwan unveiled measures targeted at speculators after home prices as much as tripled since 2004 amid low mortgage rates. The central bank in 2010 started limiting the amount of funding property buyers can borrow, while a transaction tax of as much as 45 percent, which takes into account both land and home values, took effect this year.”

“Sentiment started slowing in late 2014 and in 2015 ‘the money started leaving,’ Billy Yen, Taipei-based managing director at DTZ Cushman Wakefield, said, referring to wealthy Taiwanese who started to invest outside of Taiwan. In the wake of the new policies geared toward more affordable housing, would-be buyers found ‘the government is no longer friendly to the market,’ Yen said.”

The Media Max Network on Kenya. “Is the property market as lucrative as we are being made to believe? Of course developers and those selling plots want to make everyone believe so. But the bitter reality is that the property market is cooling off. Recent real estate market development indices by Kenya Bankers Association and Hass Consult have been pointing to a slow down. This is manifested in a drop in demand for houses and reduction in rents due to an oversupply in certain segments of the market.”

“While these indices often give a short-term view of things, if looked at in the long term by studying trends, you can see the warning signs. The verdict from anyone, including lay investors, is that ‘you can’t go wrong with land.’ But these people are not telling first-time investors that most of the prime land that delivered the quick riches has shrunk and the remaining small swatches will cost you an arm and a leg. Now investors have moved into agricultural land far off Nairobi and other towns, buying farm land then parceling them into smaller plots. These are the people who are making a killing.”

“The smaller plots are sold at prices that give them over 500 per cent returns. Sellers will use any infrastructure nearby – be it a school, college, road or even factory – to squeeze premium price. But looking at most of the land on sale, some very many kilometres from the nearest town (in Nairobi the distance is reaches even 70km), you can easily see land is over-valued.”

“People who are buying as short-term speculators to double or triple their investments in a year or so are getting so disappointed. At times they can’t even get interested buyers if they wanted to get their money back.”




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100 Comments »

Comment by Ben Jones
2016-05-31 02:54:20

‘Speculators seek better investment returns: CCTV.com’

‘Q1: What are the economic factors that are prompting Chinese to invest in the US real estate market?’

‘A: Well, of course, the biggest reason is the rapidly recovering US housing market over the past few years. Here in China, the country has just registered the lowest GDP growth in a quarter of a century, which was 6.9 percent, and the economic slowdown might well continue. Although it doesn’t mean that China’s economy is facing a hard landing or depression, for speculators, they are seeking investments that can best guarantee a return. More importantly, China has a growing middle class who can now afford to buy US real estate for different purposes. According to the report, only 39 percent of Chinese investors in the US are buying houses to live in. A significant 23 percent are investing at low prices and hope to sell later at higher prices. Another 7 percent buy for their children to attend better schools in the US.’

‘Q2: Apart from short-term economic speculation, are there any other reasons behind Chinese people’s buying frenzy in US real estate?’

‘A: Well, an interesting fact in China is that there is a strong belief in the potential of real estate to appreciate, particularly in big cities. That’s partly because Chinese have experienced a dramatic and sustained increase of housing prices over the past decade. Here we have a chart to show the trends of the last 10 years in housing prices in China’s top four cities, Beijing, Shanghai, Guangzhou and Shenzhen. We can see that Beijing’s housing prices soared fastest, by well over three fold, and Shanghai was the slowest among the four, but still by nearly two fold. This makes investment in real estate one of the most rewarding among all assets for Chinese over the past few years. And it’s particularly true for ordinary people who have few other channels to invest their money and shield against inflation. The soaring housing prices also help make people with real estate assets economically better off and those without apartments struggling to buy one today. Now back to the US market, the report shows a similar trend. Most buyers are individuals, rather than companies, and the top three regions for Chinese people to invest are in California, New York and Washington.’

‘only 39 percent of Chinese investors in the US are buying houses to live in’

That’s why they need 4 or 5 of them.

Comment by Professor Bear
2016-05-31 06:56:26

“A: Well, an interesting fact in China is that there is a strong belief in the potential of real estate to appreciate, particularly in big cities.”

Are these the same people who believe that powdered rhinoceros horn can help stimulate an erection?

Comment by Combotechie
2016-05-31 07:49:24

“powdered rhinoceros horn”

Some interesting trivia from Wikipedia …

Rhinoceros horns, unlike those of other horned mammals (which have a bony core), only consist of keratin, similar to human hair and nails. Rhinoceros horns are used in traditional medicines of both Europe and Asia, and for dagger handles in Yemen and Oman. Esmond Bradley Martin has reported on the trade for dagger handles in Yemen.

Contrary to popular belief, the market for rhino horn is not largely driven by practitioners of Traditional Chinese Medicine specifically. Rather, Vietnamese are currently the biggest consumers of rhino horn and Vietnamese demand drives most of the poaching which has shot up to record levels. Some wealthy Vietnamese inhale the powdered horn as a status symbol; in Europe and Vietnam, rhino horn is believed by some to have aphrodisiac properties. The “Vietnam CITES Management Authority” has claimed that Hanoi recently experienced a 77% drop in the usage of rhino horn, but National Geographic has challenged these claims, noticing that there was no rise in the numbers of criminals who were apprehended or prosecuted.

It is a common misconception that rhinoceros horn in powdered form is used as an aphrodisiac or a cure for cancer in Traditional Chinese Medicine as Cornu Rhinoceri Asiatici (犀角, xījiǎo, “rhinoceros horn”); no TCM text in history has ever mentioned such prescriptions. Western media has falsely propagated this idea for a long time and to an extent, that it eventually caught on in Vietnam. In Traditional Chinese Medicine (TCM), rhino horn is considered an effective medicine sometimes prescribed for fevers and convulsions, a treatment not supported by evidence-based medicine and has been compared to consuming fingernail clippings in water. In 1993, China signed the CITES treaty and removed rhinoceros horn from the Chinese medicine pharmacopeia, administered by the Ministry of Health. In 2011, the Register of Chinese Herbal Medicine in the United Kingdom issued a formal statement condemning the use of rhinoceros horn. A growing number of TCM educators is also speaking out against the practice. Discussions with TCM practitioners to reduce the use of rhino horn, has met with mixed results, because some still consider it a life-saving medicine of a better quality than its substitutes.

In March 2013, some researchers suggested that the only way to reduce poaching would be to establish a regulated trade based on humane and renewable harvesting from live rhinos. The WWF however opposes legalization of the horn trade, as it may increase demand, while IFAW released a report by EcoLarge, suggesting that more thorough knowledge of economic factors is required in order to justify the pro-trade option. The South African government has supported the establishment of a legal trade of rhino horn stating that at the 17th Meeting of Conference of the Parties to CITES (CoP17) in 2016 they will apply for a legal trade in Rhino Horn in an attempt to reduce poaching and prevent the extinction of this species.

To prevent poaching, in certain areas, rhinos have been tranquillized and their horns removed. Armed park rangers, particularly in South Africa, are also working on the front lines to combat poaching, sometimes killing poachers who are caught in the act. A recent spike in rhino killings has made conservationists concerned about the future of the species. An average sized horn can bring in as much as a quarter of a million dollars in Vietnam and many rhino range states have stockpiles of rhino horn.

In 2011 the Rhino Rescue Project, organized by Ed and Lorinda Hern of the Rhino & Lion Nature Reserve in Krugersdorp, South Africa, began a horn-trade control method consisting of infusing the horns (while on the animal) with a mixture of a pink dye and an acaricide (to kill ticks) which is safe for rhinos but toxic to humans. After sedating the animal, holes are drilled into the horns, fittings added, and the cavity connected with rubber hoses to a two-foot-by-four-inch diameter metal container of the liquid mixture which is then pressurized. The infusion takes less than 20 minutes of the 45 minutes of anesthesia; because of the high pressure exerted on the animals’ internal organs from their large body weight, they are turned every 7 minutes while sedated. The procedure also includes inserting three RFID identification chips and taking DNA samples.

Because of the fibrous nature of rhino horn, the pressurized dye infuses the interior of the horn but does not color the surface or affect rhino behavior. The acaricide is expected to cause nausea, stomach-ache and diarrhea, or convulsions for anyone consuming the horn, depending on the quantity, but would not be fatal; the primary deterrent being the knowledge that the treatment has been applied, communicated by signs posted at the refuges. The original idea grew out of research looking into using the horn as a reservoir for one-time tick treatments, and the acaricide is selected to be safe for the rhino, oxpeckers, vultures, and other animals in the preserve’s ecosystem. It was claimed that the dye can not be successfully removed from horns, and would remain visible on x-ray scanners even when the horn is ground to a fine powder.

The UK charity organization Save the Rhino has criticized horn poisoning on moral and practical grounds. The organization questions the assumptions that the infusion technique works as intended, and that even if the poison were effective, whether middlemen in a lucrative, illegal trade would care much about the effect it would have on buyers on another continent. They also claim that poisoned horns could heighten demand for non-poisoned horns among wealthier buyers or could fuel the belief in magical properties of the horn if people survive the poisoning. Additionally, rhino horn is increasingly purchased for decorative use, rather than for use in traditional medicine. Save the Rhino questions the feasibility of applying the technique to all African rhinos, since the acaricide would have to be reapplied every 4 years. It was also reported that one out of 150 rhinos treated did not survive the anesthesia.

Comment by Ethan in Northern VA
2016-05-31 08:12:19

Local tech group here is working on UAV systems for hunting Rhino poachers. I think I just read that another company just figured out how to make lab-grown Rhino horn and is planning to flood the market at 1/8th the price.

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Comment by Professor Bear
2016-05-31 07:05:15

‘only 39 percent of Chinese investors in the US are buying houses to live in’

To their credit, the young Chinese family who bought the small rental next door live in it. (I know just how small it is, since I was half the team that moved out our single mom neighbor who used to rent it.)

My sense is that the new neighbors overpaid the Echo Bubble peak by ten percent or more, though time will tell.

Comment by Andre The Giant
2016-05-31 10:04:52

‘only 39 percent of Chinese investors in the US are buying houses to live in’

That’s right. Remember what happened to Japanese ‘investors’ 1989-2000 when the got the rug got whipsawed out from under them.

 
 
Comment by CalifoH20
2016-05-31 09:24:34

Cheaper to buy the USA then invade us.

Comment by oxide
2016-05-31 10:49:53

+1

“Q2: Apart from short-term economic speculation, are there any other reasons behind Chinese people’s buying frenzy in US real estate?’

‘A: Well, an interesting fact in China is that… we also buy real estate to launder ill-gotten corruption monies, and as safe-houses to make little American anchor babies in when the SHTF here, but come on, we aren’t going to admit that to the press. Therefore I’ll just repeat the reason of short-term economic speculation, but throw in some fake statistics as a distraction …there is a strong belief in the potential of real estate to appreciate, particularly in big cities.”

Fixed it for them.

Comment by Andre The Giant
2016-05-31 11:01:02

Hey Donk.

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Comment by In Colorado
2016-05-31 14:25:00

You nailed it, Oxide. Upper class Mexicans (especially those from the political classes) hide their ill gotten gains outside Mexico. I suspect most LatAm “investors” do it for the same reason: if they need to bug out, they have a house and a nest egg waiting for them.

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Comment by Ben Jones
2016-05-31 03:02:49

‘Canada’s biggest bank has sounded the alarm about overbuilding in Toronto’s condo boom, saying the level of new units coming online coupled with existing ones that are yet to sell have the market in ‘high risk’ territory. In a report Friday, economists Robert Hogue and Craig Wright wave a red flag about activity in the condominium segment in many cities, but single out Toronto with being especially problematic.’

‘In the first quarter of 2016, there were almost six new condo units under construction across the country for every 1,000 people, just off an all-time high hit in 2014. “This level is well into the high risk zone,” the bank says, which it defines as anything about 4.5 condos under construction per 1,000 people.’

‘So far, the booming market in Canada’s largest city has been able to absorb all those new units, as there’s still strong demand for housing in the downtown core. Should that change down the line, the sheer volume of new units will cause problems in the entire market.’

“High levels of construction entails the risk that many units may reach the completed stage at once, thereby flooding the condo resale and/or rental markets,” the bank said. Those new units come on top of a glut of existing unsold condos, which have inched up to concerning levels in recent months.’

‘The condo market was singled out for being a possible danger in every major city the bank looked at, including the four biggest housing markets of Toronto, Vancouver, Montreal and Calgary. While Toronto was deemed the biggest threat, the bank said the sheer volume of condos coming down the pipeline could pose problems in almost every market.’

“The prospects for high levels of condo completions in the period ahead in markets such as Toronto, Montreal and Calgary maintain above-average absorption risks,” Royal Bank said.’

Comment by Ben Jones
2016-05-31 06:56:13

‘there’s still strong demand for housing in the downtown core. Should that change down the line, the sheer volume of new units will cause problems in the entire market’

Of course there’s strong demand. Every time it wanes a bit the central bank cut interest rates. Has for years. Anyway, you are building your way to affordability! That’s the only approach anyone knows. If these people default, the banks can just sell the condos and get the money back, right?

 
Comment by taxpayers
2016-05-31 11:20:14

we sounded the alarm last year- oil under $70 = Canadian recession

 
 
Comment by Ben Jones
2016-05-31 03:03:11

‘Canada Mortgage and Housing Corp. is projecting between 5,300 and 5,700 multi-family construction starts in the Calgary census metropolitan area this year. In 2015, shovels turned for 8,895 of these units. CMHC expects multi-family activity next year to fall in the 5,100 to 5,500 start range.’

‘Supply is a key factor in the projected pullback in new construction, says Richard Cho, principal of market analysis for CMHC. “We are see not only an increase on the resale market but also on the new home market,” says Cho. “Multi-family inventories have been rising throughout 2016 and the number of multi-family units under construction are elevated, so we do expect to see some more upward pressure on inventory for the balance of 2016.”

‘There were 367 completed but unabsorbed apartments in the Calgary area by the end of April, which is up from 61 a year earlier. New inventory on duplexes and townhomes were also on the rise. There were 107 townhomes ready for possession compared to 28, and duplexes jumped to 130 from 72.’

‘On the resale market, apartment inventory between Jan. 1 and the end of April rose eight per cent to 1,443 units from 1,332 during the same time in 2015, says the Calgary Real Estate Board. For attached homes, which applies to duplexes and townhomes, supply jumped 18 per cent year-over-year to 1,394 from 1,177.’

“The absorbed at completion number is also coming down,” Cho says. “In the past, we would typically see around a 90 per cent absorbed at completion (rate) for multi-family, that’s down to about 80 per cent so far.”

‘Rental vacancies are also expected to climb this year, says CMHC. It should reach seven per cent this year, which is up from 5.3 per cent in 2015. In 2017, vacancies should slide back to 5.5 per cent, the agency adds. The cost of rent should also ease in Calgary this year.’

Wasn’t that the goal all along; build your way to lower rents?

 
Comment by Combotechie
2016-05-31 06:00:40

BUSTED!

“Letter: A fabricated story from a U.S. senator”

“First Published May 30 2016 05:54AM • Last Updated May 30 2016 10:59 am

“On May 26, the Deseret News published an op-ed by Sen. Orrin Hatch: ‘My Meeting With Supreme Court Nominee Eric Garland.
‘ He described meeting with Garland, and how it hadn’t changed his stance on blocking nomination hearings.

“Strangely, his op-ed appeared on the newspaper’s website at midnight, at least six hours before this supposed meeting could have happened.

“Perhaps it remains to be seen whether Sen. Hatch is a time traveler, or simply a mendacious liar with a seat in the Senate Judiciary Committee, but any newspaper with journalistic integrity would have noted such a laughable inconsistency.

“Instead, the Deseret News quietly scrubbed the article — but not before screenshots were obtained and reported on by national news outlets. Its URL displayed, ‘Oops, the page you are looking for cannot be found,’ until the column suddenly reappeared, with the time of publication altered from midnight to 5:10 p.m. along with an editor’s note: ‘A draft of this op-ed was erroneously published on DeseretNews.com prior to final revisions and edits from Sen. Hatch. We apologize to Sen. Hatch and our readers for this error.’”

 
Comment by rms
2016-05-31 06:17:23

“Don’t look behind the curtain.” –The Wizard.

 
Comment by snake charmer
2016-05-31 06:40:01

That brings back a memory: I was on the school newspaper staff in junior high school, and one of my fellow staffers wrote a glowing review of the orchestra concert, unfortunately several days before the event happened. Junior high is an appropriate way to describe the psychosocial development of many members of our utterly mendacious Congress.

Comment by Ethan in Northern VA
2016-05-31 08:14:40

The big newspapers bank articles about famous people dying. Once in a while they slip and activate the story.

 
Comment by oxide
2016-05-31 13:40:41

Anyone who’s ever been in high school band would be suspicious of a “glowing” review, no matter when it was written.

 
 
 
Comment by Apartment 401
2016-05-31 06:42:13

Current banner ad on HBB promoting 5% down mortgages for first time loanowners:

http://m.mecu.org/promotions/5-5arm.aspx

Comment by taxpayers
2016-05-31 08:51:16

3% is high- smelly mel watt will get yo asz in fo free,yo

 
 
Comment by Professor Bear
2016-05-31 06:44:17

“The smaller plots are sold at prices that give them over 500 per cent returns. Sellers will use any infrastructure nearby – be it a school, college, road or even factory – to squeeze premium price. But looking at most of the land on sale, some very many kilometres from the nearest town (in Nairobi the distance is reaches even 70km), you can easily see land is over-valued.”

So let me get this straight: Kenyan land investors buy a large parcel of land, split it up into, say, ten pieces, then sell each piece for 6/10 the amount paid for the original parcel?

Something about the story doesn’t add up. Does Kenya perhaps face rampant inflation? What does the nearby infrastructure have to do with ’squeezing premium price’? Who are the bagholders, and how and when will they realize it?

Comment by Prime_Is_Contained
2016-05-31 07:35:47

7.32 percent
Kenyan annual inflation rate accelerated to 7.32 percent in November of 2015, after a 6.72 percent growth reported in the previous month and above market expectations. It is the highest inflation rate since August of 2014, boosted by increasing cost of food, housing and utilities.5 hours ago

 
Comment by In Colorado
2016-05-31 08:48:08

What does the nearby infrastructure have to do with ’squeezing premium price’?

It probably means that the subdivided lots will also have infrastructure. You can’t take power, water, sewage and phone service for granted in the third world. A subdivided lot might not get them for decades, if ever.

 
 
Comment by Professor Bear
2016-05-31 06:49:47

“BEIJING: China’s US$50 billion replica of Manhattan in the northern port city of Tianjin still lies mostly unfinished and empty nearly a decade after construction began.”

Perhaps Hollywood could lease the area to shoot a post-apocalypse movie set in Manhattan after all the people disappeared?

Comment by Ben Jones
2016-05-31 07:12:27

The wait at the restaurants should be short.

Comment by The Selfish Hoarder
2016-05-31 07:52:41

Ha!

 
 
Comment by In Colorado
2016-05-31 08:49:25

I’ve heard they have great Chinese food.

 
 
Comment by Prime_Is_Contained
2016-05-31 06:57:24

Comment by MightyMike
2016-05-30 12:47:00

So you, like the hedge fund guy, must assume that you won’t become unemployed during this recession.

Nope—I just don’t mind if I do, because I have been saving my pennies for a rainy day for quite some time now.

Wringing out the mal-investment is still the right thing to have happen, even if it causes a recession that affects my job.

Comment by drumminj
2016-05-31 07:19:23

Nope—I just don’t mind if I do, because I have been saving my pennies for a rainy day for quite some time now.

+1 to getting back to a healthy state, even if it means there may be short term pain for us. It will be far better in the long-run.

 
Comment by Prime_Is_Contained
2016-05-31 07:41:34

Comment by MightyMike
2016-05-30 21:14:49

There’s probably no clear way to determine if an individual investment is what you call a mal-investment.

I think there is one super-simple and clear way to determine if an individual investment is mal-investment: normalize rates and see what happens to the return on that investment. Simple, no?

Comment by MightyMike
2016-05-31 11:08:36

That sounds like a definition of mal-investment, which is a good thing to have if we’re going to discuss such a concept. However, your statement leads to another problem. Someone has to decide what a normal interest rate is.

 
 
Comment by MightyMike
2016-05-31 11:06:57

Nope—I just don’t mind if I do, because I have been saving my pennies for a rainy day for quite some time now.

There’s not much difference there in what you’re saying. Huge increases in unemployment generally result in increases in divorce, bankruptcy, homelessness and suicides. You’re confident that you and your family won’t suffer.

Comment by drumminj
2016-05-31 21:43:48

You’re confident that you and your family won’t suffer.

No, actually he never said he wouldn’t suffer. Just that he’s put himself in a position to minimize suffering if possible. That whole planning ahead/for a rainy day thing that most folks don’t do — much easier to rely on the government/prudent to bail you out.

 
 
 
Comment by Ben Jones
2016-05-31 07:09:03

‘Vancouver, Let’s Stand Up to Moneyed Interests of Real Estate’

‘Given the trajectory of affordability in this city, what do concerned residents have to lose?’

‘Post-war bungalows in Dunbar are now somehow worth over $3 million, up 30 per cent since last year. Large tracts of formerly vibrant neighborhoods now sit unoccupied even as our homeless population swells. Renters in droves are displaced by illegal Airbnb suites as landlords try to service astronomical mortgages — or simply because they can. Finding stable housing in our beautiful city is becoming a desperate game of musical chairs.’

‘Real estate value in Greater Vancouver swelled by an eye-popping $89 billion last year — equivalent to 37 per cent of the entire province’s GDP. That massive influx of money is swamping every comparatively puny policy tool the city has at its disposal.’

‘Other writers have documented what is driving this housing bubble. Vancouver is just one of dozens of potential destinations for the global elite to park their wealth, in what experts call the “hedge city” phenomenon. This is by no means limited to one particular country, but China is a pertinent example. Over 3.6 million nouveau riche millionaires in Mainland China are understandably anxious to get their wealth into jurisdictions with less corruption, pollution and economic instability.’

‘Our discounted currency makes this capital flight even more attractive. And in typical Canadian fashion, our assets and resources are often handed over with minimal government scrutiny or local benefit. B.C. does not require property purchasers to declare what country they pay their taxes in. And recent media accounts suggest a role of organized crime in the lucrative land rush.’

‘With such absent, ineffective or incompetent public oversight, why wouldn’t offshore buyers flood into Vancouver’s housing market? These investors are obviously not concerned about a potential crackdown from Victoria, Ottawa or any city hall. They might, however, be concerned if a co-ordinated group of concerned folks took up residence on their front lawn or master bedroom — particularly if it made front-page news overseas.’

‘What is happening here is profoundly troubling not only to the future of Vancouver, but our entire nation. Global forces are driving both unstable property speculation in our largest cities, and increasing social divisions. Unless governments act, perhaps the rest of us should.’

Comment by Ben Jones
2016-05-31 07:19:03

‘Governments terrified of popping foreign-buyer housing bubble: Don Pittis’

‘Unrelenting rise in house prices leaves governments bewildered over how to respond’

‘The difficulty governments face is that while Canadian manufacturing and exports fall, while oil and resources crash, the property market has become the spark plug of the economy. The proverbial engine of growth is firing on a single cylinder.’

‘Efforts to tabulate exactly how much foreign money is entering the market are unlikely to be definitive. The debate over whether it is five, 14 or 66 per cent of sales, to quote some of the estimates in a recent Maclean’s article, will not be easily resolved. Family members can be placeholders for overseas investors. Layers of corporate ownership can do something similar, as South China Morning Post Vancouver correspondent Ian Young explains.’

‘And that may be just the way a lot of those who benefit from the real estate market want to keep it.’

Comment by Apartment 401
2016-05-31 07:29:39

the spark plug of the economy

“This sucker could go down” — George W. Bush

 
Comment by In Colorado
2016-05-31 08:50:55

These guys remind of those who are urging a “no” vote on the Brexit.

Comment by snake charmer
2016-05-31 10:06:23

Sooner or later, these nationalist/separatist movements are going to succeed. Either that, or democracy will be suppressed. The status quo ideology is not going to improve the lives of enough people to win at the ballot box.

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Comment by In Colorado
2016-05-31 10:10:16

If the UK calls it quits, it’s over; there will be an eventual rush to the exits, which is why the PTB in Brussels and Berlin are fighting it tooth and nail.

 
Comment by MightyMike
2016-05-31 11:13:42

I’ve read that the Scottish nationalists say that Brexit could lead Scotland to leave the UK because the Scots want to stay in the EU. These separatist movements can get complicated.

 
Comment by taxpayers
2016-05-31 11:23:21

sell off the 4.3 trillion fed swamp and you’ll know.

 
 
 
 
 
Comment by Professor Bear
2016-05-31 07:09:35

These 7 data points reveal the sorry state of Americans’ finances
By Maria LaMagna
Published: May 27, 2016 10:08 a.m. ET
A new Federal Reserve report shows some Americans aren’t doing as well as they think
David McNew/Getty Images
Not everyone feels good about his or her financial state.

More Americans may think they’re “living comfortably” or “doing okay,” but many are far from fine.

In a survey of about 5,700 people released Wednesday by the Federal Reserve, respondents said they are doing better than in recent years, but the results show they are still facing tough choices, leading them to make some bad financial moves, from taking on risky loans to undersaving for retirement.

Comment by snake charmer
2016-05-31 08:28:29

Over the weekend, I read Samuelson’s piece on that Fed survey, entitled “Good News for the Middle Class.” Samuelson gently rebuked those who were pessimistic about the economy and their place in it. Nowhere was it suggested that the source of the information might taint it, or that the survey findings are being rebuked on a weekly basis by primary and caucus results.

Even Samuelson’s expression evokes Rudyard Kipling. A worldview of comfortable certainties, soon to be totally upended.

 
Comment by oxide
2016-05-31 12:59:15

A ha. The 46% factoid has been sloshing around, but I had been looking for a better breakdownn. From the article:

—————–
About 46% of adults who responded to the Fed’s survey said they could not cover an emergency expense of $400 without selling something or borrowing money.

Among those who said they couldn’t cover the $400 expense, 38% said they would put the amount on a credit card and pay it off over time, 28% said they would borrow money from a friend or family member, 17% said they would sell something, 7% said they would use money from a bank loan or line of credit and 4% said they would use a payday loan, deposit advance or overdraft. Another 31% said they just wouldn’t be able to pay the amount.
——————

If 38% of the 48% are able to use a credit card, then the total proportion of people who *can* cover $400 is closer to 64%, not 46%. Not that this is a good thing.

What’s much more worrying is the 14% of the total who can’t pay that $400 at all. No credit, no payday loan, no family.

Comment by Neuromance
2016-05-31 15:59:12

I find polls curious. I wonder kind of sampling they’re getting.

I’d love to provide my opinion to pollsters, but I’m no more willing to provide personal information to an anonymous caller (and they’re all anonymous - anything can be programmed to display in the call window) for a phone call of indefinite duration and whose purposes are completely unknown, any more than I’m willing to do the same for an email.

A polling company which would approach vetted people first, to build up a true cross-sectional base of the population, and give them some pittance to answer questions (although I think the opportunity to influence policy would also be an attraction) I think would be a much more accurate way to obtain information than those who would be willing to opine to anonymous requestors.

Those freely willing to provide personal information and opinions to anonymous requestors are probably biased towards certain intellectual and financial demographics. I don’t mean that in an entirely negative way. It could include extremely extroverted types but also less savvy types as well.

 
 
 
Comment by Ben Jones
2016-05-31 07:22:58

‘Every other day in the United States press there is a headline warning of an impending “China Crisis”, whereby the steady stream of Chinese students seeking US education will presumably dry up and universities which foolishly put all their eggs in the China basket will be left in the lurch, forced to consider shuttering in the face of huge budgetary deficits.’

‘Are these scenarios likely? Doubtful. International students make up just 5% of the total student population in the US, so the losses to any one university or programme shouldn’t be catastrophic. But when you consider that Chinese students account for nearly a third of total international student enrolments, it points to a general complacency that persists in US higher education internationalisation strategy.’

‘We are in a bubble, and eventually the growth from China will stall. Universities need to be proactive and strategic about diversifying now, so they can avoid taking an economic hit when the inevitable finally happens.’

‘There are too many factors to list that have led to our current international enrolment predicament with China. But, if we distill all the data down, there are several ‘big’ events that stand out as having had the greatest impact.’

‘First, there was a healthy Chinese economy and a strong middle-class that highly valued education, creating an inflated population of degree-seekers. Unfortunately, the Chinese education infrastructure just couldn’t accommodate the influx of students, so families began to look outside of China. Many saw a US diploma as global currency and were willing to make a sizeable investment to send their children overseas.’

‘At the same time, in the US, statehouses across the country were slashing higher education budgets. The appeal of the Chinese student was powerful. The quick influx of students helped balance budgets previously in the red and the sheer size of the applicant pool meant that universities could easily meet enrollment quotas without stretching their recruitment budgets.’

‘Between 2004 and 2014, Chinese student enrollments grew by nearly 400%.’

‘But the percentage started to slip – the most recent Student and Exchange Visitor Information System, or SEVIS, data puts that growth rate at just 6.5% between 2015 and 2016, where it had been 13.3% the year before, and 14.9% the year before that. To be clear, these numbers still represent large numbers of students, but year over year growth rates are declining.’

 
Comment by Ben Jones
2016-05-31 07:27:02

‘Offering home loans of up to 80 to 95 per cent of a flat’s value, without the need for proof of income, has become the sales tool of choice for many developers’

And Hong Kong is the most expensive housing market in the world right now. If these people don’t pay up, the developer can just foreclose and sell it again. Maybe for even more than the first time, right?

 
Comment by rj soon not to be in chicago
2016-05-31 07:37:24

AND the tally is…..?

Memorial Day weekend toll: 69 shot, 6 fatally

http://www.chicagotribune.com/news/local/breaking/ct-chicago-shootings-memorial-day-20160530-story.html

Comment by Young Deezy
2016-05-31 07:52:05

Only 6 deaths? Terrible aim.

Comment by In Colorado
2016-05-31 10:07:47

That reminds me of a skit from Mencia’s old show on Comedy Central, where he teaches gang bangers how to aim (don’t hold the gun sideways)

 
Comment by Larry Littlefield
2016-05-31 10:09:51

We don’t even know that the six who died are the ones who died are people the shooters were trying to hit.

 
 
 
Comment by Apartment 401
2016-05-31 07:46:01

Camping crisis: Some western Boulder County sites under siege

“USFS designated-dispersed areas are free, do not have amenities such as picnic tables, restrooms or electrical hookups, but are typically marked as such and sometimes include an established fire ring.

The rules are that nobody can occupy one for more than 14 consecutive days or 28 days in a 60-day period. And the fundamental outdoorsman’s credo applies: Pack it in, and pack it out.

Enforcing the regulations is extremely difficult for agencies faced with limited resources. And increasingly, federal and local officials are finding that the pressure on such camp areas from the homeless, the disenfranchised and those who have chosen to drop out of society is mounting and taking a heavy toll.

The problem is hardly isolated to national forests in Boulder County. The phenomenon has received attention at the national level, and was the subject of a USFS-commissioned study in 2014, led by Josh Baur, an assistant professor in the Department of Health Science and Recreation at San Jose State University.

Boulder County Sheriff’s Office records show that the number of calls handled between West Magnolia, Gordon Gulch and Ruby Gulch shot up from 213 in 2013 to 294 in 2014 and hit 388 in 2015. Counting calls through April of this year, the three have registered 1,012, dating back to the start of 2013.”

http://www.dailycamera.com/boulder-county-news/ci_29949360/camping-crisis-some-western-boulder-county-sites-under?source=mostpopular

 
Comment by Apartment 401
2016-05-31 08:11:02

“Prices in the Denver area jumped 10.0 percent in March from a year earlier, nearly twice the national average gains, the report said.

Only Portland (up 12.3 percent) and Seattle (up 10.8 percent) saw greater year-over-year resale price gains out of 20 cities tracked by the report series.

Denver’s monthly gain in March was exceeded only by Seattle (up 2.4 percent) and San Francisco (up 2.3 percent).

Denver’s Case-Shiller home price index reached 179.20 in March That means that local home resale prices averaged 79.2 percent higher than they were in the benchmark month of January 2000, according to the Case-Shiller report series, based on non-seasonally-adjusted data.”

http://www.bizjournals.com/denver/news/2016/05/31/home-price-growth-rate-in-metro-denver-outstrips.html

Comment by In Colorado
2016-05-31 08:54:54

That’s unpossible! We are told here on a regular basis that Denver is “cratering”

Comment by Andre The Giant
2016-05-31 09:42:28

Which is very much different than your link-less workplace bidding war stories 2x/week that everyone knows is BS.

 
Comment by Ben Jones
2016-05-31 09:51:05

To the contrary, I have pointed out that median prices are still up and away in Houston and Manhattan. It was the Denver UHS who said sellers were chasing the market down at the end of last summer, and more recently that 1 in 5 deals were falling out of contract because buyers were resisting.

Comment by In Colorado
2016-05-31 10:06:14

I wasn’t talking about you, Ben. I don’t recall that you ever said that Denver was “cratering”.

FWIW, one of the guys on the team at the office has lost a few bidding wars this month. It’s still crazy here.

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Comment by Ben Jones
2016-05-31 11:36:05

If houses are falling out of contract, it shows a bunch. A decrease in the “gotta get in” mentality. Sellers holding out for little details. These things will call a major turn way before the median price does.

 
 
 
 
Comment by Rental Watch
2016-05-31 09:20:07

The power of compounding.

1.79^(1/16) = 3.7% annual growth (compounded)

Inflation over that timeframe would have put the value at 1.39.

So, if the value was a “fair” value in 2000, home prices are approximately 29% higher than they should be at this point…

Comment by taxpayers
2016-05-31 11:25:29

Dc case shiller index since 2000 =209
vs. Detroit where they make stuff = .98

 
 
Comment by Andre The Giant
2016-05-31 09:26:39

Indices aren’t very reliable are they? Stick with the data my friend.

Washington Park(Denver), CO Housing Prices Crater 22% YoY On Ballooning Housing Inventory

http://www.zillow.com/washington-park-denver-co/home-values/

 
 
Comment by phony scandals
2016-05-31 08:15:34

Meanwhile, mourners attended a vigil for the ape, and the hashtag #JusticeForHarambe trended on Facebook.

Comment by Apartment 401
 
Comment by rms
2016-05-31 10:57:04

The ape gets killed because mom can’t control her three-year old child?

Comment by oxide
2016-05-31 12:42:05

Apes won’t sue. Moms will.

 
 
 
Comment by Apartment 401
2016-05-31 08:16:32

“Immigrants fleeing gang violence in Central America are again surging across the U.S.-Mexico border, approaching the numbers that created an immigration crisis in the summer of 2014. While the flow of immigrants slowed for much of last year, nothing the U.S. government does seems to deter the current wave of travelers.

The Border Patrol ends up releasing the vast majority of family members it apprehends because U.S. court rulings restrict its ability to detain them.

Asylum applicants are allowed to hop a bus to join family elsewhere in the U.S., where they await their hearing. Currently, nearly a half million cases are backlogged in U.S. immigration courts, with an average wait time of almost two years — though the government is trying to expedite the recent arrivals. Critics call this policy of catch and release “de facto amnesty.”

http://wcqs.org/post/us-mexico-border-sees-resurgence-central-americans-seeking-asylum

Comment by phony scandals
2016-05-31 08:40:15

“Asylum applicants are allowed to hop a bus to join family elsewhere in the U.S.”

The Texas Greyhound is frequently spotted on I 95 in this part of Region IV.

Comment by Apartment 401
2016-05-31 08:53:00

Acts of love.

 
 
 
Comment by Apartment 401
2016-05-31 08:19:33

Old and on the Street: The Graying of America’s Homeless

“LOS ANGELES — They lean unsteadily on canes and walkers, or roll along the sidewalks of Skid Row here in beat-up wheelchairs, past soiled sleeping bags, swaying tents and piles of garbage. They wander the streets in tattered winter coats, even in the warmth of spring. They worry about the illnesses of age and how they will approach death without the help of children who long ago drifted from their lives.

“It’s hard when you get older,” said Ken Sylvas, 65, who has struggled with alcoholism and has not worked since he was fired in 2001 from a meatpacking job. “I’m in this wheelchair. I had a seizure and was in a convalescent home for two months. I just ride the bus back and forth all night.”

The homeless in America are getting old.

There were 306,000 people over 50 living on the streets in 2014, the most recent data available, a 20 percent jump since 2007, according to the Department of Housing and Urban Development. They now make up 31 percent of the nation’s homeless population.”

http://www.nytimes.com/2016/05/31/us/americas-aging-homeless-old-and-on-the-street.html

 
Comment by rj soon not to be in chicago
Comment by In Colorado
2016-05-31 09:44:23

Meanwhile, Steven Hawking insists she’s the right choice.

 
 
Comment by Larry Littlefield
2016-05-31 10:08:28

No bits bucket?

This column, from a conservative columnist from a right wing think tank in the right wing New York Post will make your head explode.

http://nypost.com/2016/05/30/trump-is-right-about-our-need-to-dump-debt/

How is that for income redistribution, the free shit army, and the ware on savers. After all savers are holding that debt. “Wall Street” took its percentage and moved on.

She’s probably right. But attitudes are a lot different than they were back when those on the right tried to reprise the mid-1990s by blaming the whole financial crisis on poor Black people.

 
Comment by Rental Watch
2016-05-31 10:10:40

It’s that time of the month…the Case/Shiller data comes out and Prof. Shiller comes out to speak.

http://www.bloomberg.com/news/videos/2016-05-31/shiller-not-enough-houses-low-inventory

It’s not clear whether Shiller thinks there are not enough houses on the market for sale, or whether he thinks there are enough homes physically (ie. we need to build more homes).

Comment by In Colorado
2016-05-31 10:19:31

The thing about artificially restricted supply, it can push prices up, but only so far. At some point buyers simply accept that they can’t afford it and quit trying to buy. And that is when the bubble pops.

Comment by Rental Watch
2016-05-31 10:36:57

What do you mean by “artificially restricted supply”? Who is artificially restricting supply? How much supply are they holding back (and is the amount being held back meaningful)?

My question is simple.

Are we lacking in supply of listings? Or
Are we in reality lacking in supply of housing, which is showing up as relatively few listings?

If it’s the former, then I agree with you. Perception alone is supporting home prices.

Comment by In Colorado
2016-05-31 11:50:51

You restrict subdividing and the issuing of building permits and utility hookups. That’s how you create an artificial shortage.

The last time, in Bubble 1.0, the builder boys went crazy and built like there was no tomorrow. In my little burg they were building 1000+ new houses a year.

Fast forward to the present. Now they are only building 300 houses a year in my town, mostly in the $300K+ range. Used houses below 300K, especially those in low to mid 200’s, sell in a single day. That is clearly the sweet spot, yet builders are NOT building houses in that price range. Why not? Shouldn’t they be building them like crazy?

What I have been told is that lots are hard to come by, even though there undeveloped land as far as the eye can see. That is the artificial shortage I’m talking about.

(Comments wont nest below this level)
Comment by Rental Watch
2016-05-31 14:55:24

I would call an “artificial” shortage one where the homes actually exist, but are held off the market for some reason. In other words, there are plenty of homes in existence, but there is the appearance of not being enough.

What you are describing is an actual shortage.

And in the markets in which I am familiar, they aren’t building homes for less than $300k because they can’t do so and make a profit.

With roads, curbs, gutters, utilities, and impact fees, in many markets your cost of a finished lot is $100k before you even buy the land.

Add direct costs at ~$65 psf (yes, they are higher than $50 now), for a 2,000 square foot home, that is another $130k, and you haven’t paid for all the soft costs (property taxes while you build, insurance, warranty, sales staff, sales commissions, etc.), which could easily add another $15-$20 psf, if not much more.

So, before you even buy the dirt, you might be into a 2,000 home a total of $260k.

A builder won’t work for free, so they need to earn some profit, say, 10%. And now you are up to $285k. Even if the land is cheap, you would have a hard time selling for less than $300k.

 
Comment by Andre The Giant
2016-05-31 15:07:27

$55/sq ft(lot, labor, materials and profit) anywhere in the country. And we do it all year long.

 
Comment by The Central Scrutinizer
2016-05-31 16:55:53

No we don’t.

 
Comment by Andre The Giant
2016-05-31 17:27:35

Data my friend.

Lynden, WA Housing Prices Crater 11% YoY; Housing Inventory Skyrockets Statewide

http://www.zillow.com/lynden-wa/home-values/

 
 
 
 
Comment by Andre The Giant
2016-05-31 10:32:52

With millions of excess empty and defaulted houses out there I don’t think there’s much need to build more of them. Like the blog owner says…. it makes no sense to build your way out of a bubble.

 
 
Comment by Combotechie
2016-05-31 10:25:29

Years ago, in my old school student days, this would be called “cheating”:

“Essay writing industry ‘booms’ as students demand tailor-made coursework.”

http://www.telegraph.co.uk/business/2016/05/29/essay-writing-industry-booms-as-students-demand-tailor-made-cour/

Comment by Combotechie
2016-05-31 10:45:52

An older treatment (Oct 2012) of the same subject from The Atlantic that goes a bit deeper in depth:

“Write My Essay, Please!”

“These days, students can hire online companies to do all their coursework, from papers to final exams. Is this ethical, or even legal?”

http://www.theatlantic.com/national/archive/2012/10/write-my-essay-please/264036/

Comment by CalifoH20
2016-05-31 13:14:53

They also take photos of their tests and sent to their friends who have a test later.

 
Comment by snake charmer
2016-05-31 15:35:04

I remember that piece as exceptionally disturbing (and there was another, somewhere, from a person who actually wrote these papers, saying his clientele ranged from wealthy students at private high schools to Ph.D candidates). An excerpt from the Atlantic piece:

“Another disturbing question concerns the writers who produce such essays. Why would someone who has earned a master’s degree or Ph.D. participate in such ethically an dubious activity? One answer may be that many academics find themselves in dead-end, part-time teaching positions that pay so poorly that they cannot make ends meet, and essay writing can be quite a lucrative business. For students who can wait up to 5 days, one service charges $20 per page, but for those who need the essay within 16 hours, the price quadruples to $80 per page. The “works cited” portion of essays can generate additional revenue. The same service provides one reference per page at no additional cost, but if students feel that they need more citations, the charge is $1 per source. Some struggling academics may also view ghostwriting as a form of vengeance on an educational system that saddled them with huge debts and few prospects for a viable academic career.”

 
 
Comment by junior_bastiat
2016-05-31 19:52:45

Friend in college days 20 years ago did this for extra money. One of his customers was some chub going to UCLA, a senior who had never written a single paper - paid for them all. My friend also sold his urine for people who needed to pass a drug test.

 
 
Comment by Jon
2016-05-31 10:55:04

“Housing minister’s comments about ‘whining’ people are insulting: critic”

http://www.news1130.com/2016/05/26/housing-minister-whining-critic/

Comment by Ben Jones
2016-05-31 11:13:12

‘NDP Housing Critic David Eby feels Coleman’s comments are simply out of touch and show the Liberals don’t understand how difficult it is to buy a home here. “Keep in mind, this is the same housing minister who just last year said that house prices in Vancouver were ‘actually pretty affordable.’ And that was just days after a report finding Vancouver to be the least affordable city in entire world,” says Eby.’

“[Coleman’s] response that he believes that people who are concerned about affordability are whiners is entirely in character and actually totally explains why this government has refused to take action on the issue.”

Comment by In Colorado
2016-05-31 11:42:29

Not to worry, eventually Mr. Market will “take action on the issue”.

 
 
 
Comment by Andre The Giant
2016-05-31 11:43:22

Cheer up my friends and remember……. There is no crisis with falling housing prices.

Nasssau County, FL Housing Prices Crater 6% YoY

http://www.zillow.com/nassau-county-fl/home-values/

 
Comment by Andre The Giant
2016-05-31 12:07:25

Take it from me….

“There is No Crisis with Falling Prices”

http://netrightdaily.com/2008/10/there-is-no-crisis-with-falling-prices/

 
Comment by Senior Housing Analyst
2016-05-31 12:30:48

Tampa, FL Real Estate and Homes for Sale-5,354

http://realtor.com/realestateandhomes-search/Tampa_FL

Tampa, FL Real Estate and Homes for Sale-1,787 Homes,Price Reduced

http://realtor.com/realestateandhomes-search/Tampa_FL/shw-pr

33% of all Tampa, FL sellers reduced their price at least once.

 
Comment by aNYCdj
2016-05-31 13:42:23

interesting …..How Many Americans Have Gone Through Foreclosure?

http://finance.yahoo.com/news/many-americans-gone-foreclosure-110000606.html

During the Great Recession, many Americans lost their homes due to foreclosure. In fact, according to real estate data company RealtyTrac, there were 6,324,545 completed foreclosures from January 2006 to April 2016.

“It is a big number,” Daren Blomquist, Senior Vice President of RealtyTrac said in an email. “Normal would be around 250,000 bank repossessions per year. These last 10 years represented the biggest loss of home ownership and shifting of real estate wealth since the Great Depression.”

The Current Status of the Housing Market

The market has improved, but that doesn’t make it immune to foreclosures. (You can see the 10 states with the biggest foreclosure problems here.)

“The foreclosure crisis is largely behind us, although still certainly lingering in certain pockets,” Blomquist said. “Unfortunately, we are already seeing signs of another housing bubble in certain markets, so people should continue to be cautiously optimistic when it comes to the housing market.”

But Blomquist says people who can truly afford to buy a home may still benefit from it.

“Homeownership done responsibly is still one of the best ways to build wealth,” Blomquist said.

What a Foreclosure Can Mean for You

“Foreclosure will obviously create a crater in a credit report for some time,” Troy Doucet, attorney with Doucet & Associates in Columbus, Ohio, said in an email. “However, foreclosure is not the end of the world. Those with foreclosure in their credit past will find their credit scores slowly improve as time passes. After a few years, they may even be able to buy another house.”

If you default on a loan or go through a foreclosure, it will appear on your credit report for seven years. But you can work to improve your credit score. (Consider these steps to fix your credit.) To see how your mortgage payments are affecting your credit you can take a look at your free credit report summary, updated monthly, on Credit.com.

Comment by Andre The Giant
2016-05-31 13:50:21

They had MT Pockets before they borrowed the money(which is why they borrowed)…… now they’ve got no pants.

See what happens when you grossly over pay for a depreciating asset like a house?

 
Comment by rms
2016-05-31 20:33:08

“…there were 6,324,545 completed foreclosures from January 2006 to April 2016.”

Think of all that lost 1099-C tax revenue; loosers [sic] got off easy.

 
 
Comment by phony scandals
2016-05-31 19:20:37

Connecticut has among the worst rent, wage gap

Mark Saunders Published 3:20 pm, Tuesday, May 31, 2016

A recent study found Connecticut is within the top ten states with the largest hourly wage and housing wage gap. Renters typically earn about $8 an hour less than what is needed to afford a two-bedroom apartment in the Nutmeg State. Check out how Connecticut ranks among the worst and best. Photo: Justin Sullivan, Getty Images

A recent study found Connecticut is within the top ten states with the largest hourly wage and housing wage gap. Renters typically earn about $8 an hour less than what is needed to afford a two-bedroom … more

It’s not easy being able to afford your own place anywhere nowadays. And Connecticut is no exception—especially on minimum wage.

Data website TrendCT recently looked at data on the average hourly wages and the required hourly wage to afford a two-bedroom house in each state, based on information from the National Low Income Housing Coalition.

It’s estimated that with Connecticut’s average hourly wage of $16.21, workers need to work 103 hours a week, to achieve the state’s needed $24.72 housing wage, in order to afford a two-bedroom home. That’s a difference of $8.51 an hour. The state was the sixth-highest on the list.

The average housing wage is estimated as what a worker would have to earn without spending more than 30 percent of their income on housing.

 
Comment by phony scandals
2016-06-01 06:33:01

100

 
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