Some Aren’t Worth What Buyers Are Offering To Pay
WFAA reports from Texas. “North Texas is home to one of the hottest housing markets in the country. Real estate agent Beth Groenewald, says if you’re looking in this market, you either buy it or say goodbye to it. ‘Jump on it, because it is not going to be here five minutes from now. It’s gone,’ she said. ‘You don’t have to love it; just like it.’ Demand is crazy, and home sale stories like this one told by Groenewald are becoming common: ‘It went on the market Friday night, and I had four offers in my inbox Saturday before 8 a.m. — and we hadn’t had any showings.’”
“New homes are being erected here at the fastest pace in almost a decade. Added together, builders here are on track to put up about 29,000 new homes in the area this year alone. ‘I like having this much demand,’ said Kevin Egan, president of American Legend Homes. Egan’s company is actually turning away some homebuyers there just to pace themselves. ‘Our sales people don’t like it,’ he said, but undoubtedly they do like that as demand and prices go up.”
The Columbus Dispatch in Ohio. “A growing number of deals in central Ohio’s high-flying housing market are being shot down by appraisers. In their reports to lenders, appraisers are concluding that some homes simply aren’t worth what buyers are offering to pay. The findings are forcing deals to be renegotiated and, in some cases, killed. Agents and others say they started noticing problems a year or so ago as central Ohio’s housing market fired up, with homes selling above asking price in a day or two, sometimes in bidding wars.”
“Lenders and appraisers acknowledge that determining value can be difficult in a rapidly changing market, but they say there are ways to account for rising prices. ‘It’s such a dynamic market, if you hold onto just the historic data, you stand a good stand of missing the market,’ said Scott Robinson, a North Carolina appraiser who is president of the Appraisal Institute, a Chicago-based trade association.”
“They also can adjust for the sale date of the comps. ‘Let’s say home prices have gone up 12 percent a year, so if you have a house that sold three months ago, that’s a 3 percent adjustment,’ said Ralph Berger, owner of R.F. Berger & Associates appraisal firm and chairman of Columbus Realtors appraisal committee. ‘Our job is to reflect the market.’”
The Greater Baton Rouge Business Report in Louisiana. “Decreased demand for the high-quality pine timber that is so abundant in south Louisiana is causing a hardship for the area’s timber farmers. Behind the decreased demand for timber is a slowdown in the housing market. Though new home construction has recovered somewhat in recent years from the recession of 2008 and 2009, housing starts are still half of what they were before the recession.”
“The problem has gotten so bad Warren Peters, owner of Peters Forest Resources, and other industry leaders met last week to brainstorm potential solutions to help timber farmers. Buck Vandersteen, executive director of the Louisiana Forestry Association led the meeting and says there aren’t any immediate answers. ‘Ideally, what we need is another mill that could take some of this product,’ Vandersteen says. ‘But there’s not demand for another mill right now. You can’t encourage someone to build something when there’s an oversupply.’”
The Washington Post. “The law of supply and demand generally dictates that when the supply of a resource is low and demand is high, the price will be high. That’s not the case in the D.C. region’s housing market where inventory is tight and sales are up, yet prices are down. Even though sales volume has been higher in each of the past eight months, the median price has fallen in six of those months.”
“Arlington County was among the jurisdictions that suffered declines. Its median price dropped to $535,000, from $560,000. The median price in Frederick County, Md., fell to $270,990, from $281,000. Fairfax City and Falls Church City each saw steep declines in their median prices, but their low number of sales tends to exaggerate price swings. Fairfax City’s median price plummeted to $400,000 from $520,500. Falls Church City’s median price tumbled to $625,000, from $708,750.”
The Aspen Times in Colorado. “Property sales in Aspen continue to slump this year. That’s according to the city’s most recent tax report issued last week. In May, the city’s collection of real estate transfer taxes were down 53 percent for the affordable-housing segment and 52 percent for the Wheeler Opera House portion. In his monthly newsletter issued last week, broker Tim Estin noted that the first five months of this year mark the ‘third-worst performing period’ in the past 10 years in the Aspen-Snowmass real estate market.”
“‘Savvy sellers might consider getting ahead of this dismal news and price with a reality-based mentality,’ Estin reported. ‘Buyers may wish to consider the opportunity here to enter the Aspen market finding better values than last year. The summer selling season will let us know.’”
The Jacksonville Business Journal in Florida. “Lender-mediated residential properties accounted for 17 percent of sales in May, according to the Northeast Florida Association of Realtors. The association highlighted this fact in its monthly report on home sales in the area, but noted that bank-owned properties are playing ‘a sharply reduced role’ in the housing market with the remaining lender-mediated properties accounting for 8.7 percent of listings.”
“Jon Singleton, a Jacksonville Realtor with about 15 years of experience in the area, said that after the economic crash in 2007, the number of bank-owned properties ballooned. Singleton said that while the number of bank-owned properties is lower than in years past, there’s still a large ’shadow inventory’ owned by banks that isn’t being actively sold. He said that while the shadow inventory worries a lot of residential real estate professionals, the number of distressed properties sold off last month is a good sign. ‘That’s a much more balanced number than we have had in years past,’ he said.”
“Lenders and appraisers acknowledge that determining value can be difficult in a rapidly changing market, but they say there are ways to account for rising prices. ‘It’s such a dynamic market, if you hold onto just the historic data, you stand a good stand of missing the market,’ said Scott Robinson, a North Carolina appraiser who is president of the Appraisal Institute, a Chicago-based trade association.”
“They also can adjust for the sale date of the comps. ‘Let’s say home prices have gone up 12 percent a year, so if you have a house that sold three months ago, that’s a 3 percent adjustment,’ said Ralph Berger, owner of R.F. Berger & Associates appraisal firm and chairman of Columbus Realtors appraisal committee. ‘Our job is to reflect the market.’”
So these appraisers are in effect metering the price rises, and since the price rises determines the rises in values they are metering the rises in values.
And a rise in value translates to a rise in wealth. So these appraisers are determining, are metering, rises in wealth.
Nifty! If you are a member of the PTB and you want a controlled boom then find a way to control the appraisers, the ones who have their hands on the money valve.
They apparently aren’t having any problem with appraisals judging from the Texas article:
“I think [I cried] twice. Once was at work in the bathroom,” Sandra Curry told us. The tears were brought on by her search for a place to live, which started narrow, near downtown Dallas. But, eventually, it stretched all the way up to 635.’
‘Her budget expanded just as much. “A $100,000 price span difference from one offer to another,” she said. And Curry made a lot of offers, “At least 10 to 12 of them,” she says. She finally landed a contract that is due to close near the end of June.’
She is going to have a few more cries when the obama housing bubble bursts…
Right around January 20, 2017 (ish)? Unless of course Hillary wins.
No. No matter who wins. And the crash will happen sometime after November 7 2016.
If the new pres wants to spend trillions on more wars, walls, tariffs and deportations, will the crash be worse? that stuff is not free!
@CalifoH20, as if the opposing candidate, if elected will not spend as much as the one who proposes to spend on wars, walls, and tariffs.
Do you seriously think one of those two is going to get the military out of war? The London Bridge is in Havasu. I’ve got it for sale.
so I have to get in line and follow like a good soldier
5 more mos and it is the Trump Depression.
you’re welcome
Remember Lola….
Nothing accelerates the economy and creates jobs like falling prices to dramatically lower and more affordable levels. Nothing.
Part of what has fueled Bubble 2.0 is the large percentage of cash sales…appraisers are not involved in those (am NOT defending appraisers in general but cash deals have been a major factor in inflating prices locally in Calif.)
Hedge funds paying double and triple actual value(which we’ve already established here that this is rule, not the exception) for bulk purchases is your “cash sales”. All excess, empty houses. Millions of them. YellenBucks looking for a place to die.
Not a single end user is paying with cash. It’s all poorly performed due diligence using (dumb) borrowed.money. More YellenBucks looking for a place to die.
they have forgot the three approaches to valuation, replacement cost, market price, and rental value, but to revert to that might cost them their incomes.
They are also suppose to adjust market sale by terms on sales, but that might also be eliminated
Replacement cost is valuation.
Wheel falls off Tesla car - company tries to blame the owner, then makes him sign NDA to get it repaired: http://www.msn.com/en-us/money/companies/for-tesla-owner-losing-a-wheel-was-just-the-first-surprise/ar-AAgW46B?li=BBnbfcN
Our bubblicious economy.
‘Joan Claybrook, a former head of N.H.T.S.A., said requiring customers to keep quiet about repairs aroused suspicion. “I don’t know why they’d do that,” she said. “It makes it seem like they want to cover something up.”
‘Mr. Cordaro said he was further annoyed because Tesla, in its blog post about the Model S suspension and confidentiality agreements, suggested his breakdown had resulted from hard driving. The company said he lived on a long dirt road and noted that his car was “caked with mud” when it was picked up — information that Mr. Cordaro called “a fabrication.”
Yet somehow the “brand” of Tesla is worth $4.4 billion, surpassing VW. Das auto.
im all in on UBER
a car ,an app,now that’s value
How on earth can two real companies that make actual stuff be worth ~$4 billion, while Linked-in, which is basically a want-ads app, was just bought for 5 times as much?
This world is effed up.
oxide: How on earth can two real companies that make actual stuff be worth ~$4 billion, while Linked-in, which is basically a want-ads app, was just bought for 5 times as much?
Expectations of how much the stock will sell for later.
There are companies with negative net worths which have high stock prices, and have had high stock prices (remember the first dot-com bubble).
“Most professional investors — and all amateurs, in my opinion — should avoid negative-net-worth companies like the plague.”
http://www.nasdaq.com/article/stock-market-basics-different-types-of-stocks-cm512276
“Property sales in Aspen continue to slump this year.”
It’s been stated here and elsewhere that the truly rich do not dig into their wealth to live well, instead they dig into what their wealth generates - they dig into the income their wealth generates.
So if their wealth is not generating the income that they are used to receiving then they will need to curtail their lavish spending, and I wonder if what is going on in Aspen and elsewhere is an indication of this.
Thoughts?
So if markets aren’t performing (as well as they should), their dividends/gains suffer. Also if business activity is down, then their residual income is down. I believe ZeroHedge had a breakdown showing the % of debt/income/assets the wealthy to the 5% to the 10% and the 99% had. The wealthy primarily have business assets, aka income generating.
So this would fit that logical narrative of places like Aspen suffering.
o if their wealth is not generating the income that they are used to receiving then they will need to curtail their lavish spending,”
Or raise rents
‘Singleton said that while the number of bank-owned properties is lower than in years past, there’s still a large ’shadow inventory’ owned by banks that isn’t being actively sold’
Median price, up 10% YOY. Are the appraisers reflecting the market?
‘The law of supply and demand generally dictates that when the supply of a resource is low and demand is high, the price will be high. That’s not the case in the D.C. region’s housing market where inventory is tight and sales are up, yet prices are down. Even though sales volume has been higher in each of the past eight months, the median price has fallen in six of those months.’
When prices fall sales should go up. It’s when prices rise and sales go up that defies the basics of supply and demand.
‘Arlington County was among the jurisdictions that suffered declines. Its median price dropped to $535,000, from $560,000.’
If recent buyers put 3% down they are underwater.
prices up .6 w re taxes up 5.5%= price drop
Can make sense if demand is increasing at the same time. And that can be accomplished in the face of rising prices by lowering interest rates, down payment requirements, credit requirements, etc. But yes, all other things equal, and increase in price should cause a decrease in demand.
It could but it doesn’t.
US Housing Demand Plummets to 20 Year Low
http://1.bp.blogspot.com/-0q8fIAsczFk/VUANHEhSbnI/AAAAAAAAjRs/oANwXOUviGw/s1600/MBAApr292015.PNG
‘‘Ideally, what we need is another mill that could take some of this product,’ Vandersteen says. ‘But there’s not demand for another mill right now. You can’t encourage someone to build something when there’s an oversupply.’
‘Realtors and builders are at odds on the fundamental question of whether it’s a supply problem or a demand problem. David Crowe, chief economist of the National Association of Home Builders, counters that builders would churn out more houses if there was sufficient demand to warrant it. “Supply is an issue; that is true,” he said. “But the dominant issue still is demand. That’s the reason builders aren’t building more homes.”
‘The builders association and others say, there needs to be robust demand for starter homes in order for builders to justify developing starter-home communities. Many say that such demand hasn’t yet materialized. “If demand was there, there likely would be more supply,” said Mike Dahl, an analyst who tracks home builders for Credit Suisse AG.’
“Starter Home”. A 4,000 ft2 $500,000 cardboard shack.
Buddy of mine just sold his house; 4 bdr, 3 ba, inground swimming pool, lived in for 4 yrs, to go in the same town into a bigger newer house. It’s just him and his wife and 3 tiny dogs. Makes 0 financial sense, but in these days of easy credit easy mortgage…
Did each dog have a bedroom?
I hate the “tiny dog” people.
Today’s Headlines: Housing Numbers Raise the Roof
4:27 a.m. Tuesday, June 14, 201
Stunning Numbers for Home Sales
Unpredictability in the housing market has become… well, downright predictable. The past week did not disappoint, as it provided a pair of outstanding but surprising reports on home sales.
Monthly new home sales broke several months of stagnation at around the 520,000 mark by soaring to 619,000 in April. This 16.6% surge, the largest percentage increase since January 1992, was accompanied by a collective 39,000 upward revision in the last two months. Pending home sales for April followed with a very healthy 5.1% increase later in the week, blowing past the Bloomberg consensus projection of a 0.8% increase.
Given that pending home sales is by definition a leading indicator of existing home sales, this is excellent news for the broader housing market. New home sales only make up around 10% of all sales and are notoriously volatile — for example, the margin of error on the April new homes report was plus or minus 15.4 percentage points — so a corresponding large increase in pending home sales suggests overall market strength.
The Homebuyer’s Squeeze…….
http://www.palmbeachpost.com/feed/business/consumer-advice/todays-headlines-housing-numbers-raise-the-roof/fCNMjR/
how many were bought by MBA and engineering degree types?
got math?
‘Even though world bond yields have never been lower and an increasing array of bank deposit rates around the world are now negative, investors are willing to hold more cash in their portfolios than at any time since November 2001.’
‘The survey of 213 fund managers with $654 billion of assets under management showed that Britain leaving the European Union was the by far biggest ‘tail risk’ for world markets (according to 30 percent of respondents) followed by central banks’ “quantitative failure” super-loose monetary policy (18 percent).’
‘Investors’ allocation to bonds rose to a net 34 percent underweight from 41 percent underweight the month before. That was the highest in three and a half years.’
‘World bond yields are currently at their lowest level on record, depressed by mounting worries over sub-par growth and anaemic inflation. Germany’s benchmark 10-year Bund yield fell below zero on Tuesday for the first time ever.’
But our leaders told us ZIRP is the way to prosperity!
Free money! Lots of free money.
What could go wrong?
And we must be the smartest people to ever have lived to be the only ones who have ever tried this…
It’s interesting that there are now articles saying stuff like, “why the government should give you $1,000 a week.”
I’m surprised the minimum Govt income proposition didn’t pass in Switzerland. It was going to be, what, $2000/mo? Crazy!!! Glad the Swiss said no, despite their strong penchant for social programs/welfare.
they have pointed tits,machine guns,whitey
SWZ home gamers
The Swiss have closed borders and are super stingy with immigrant visas. They have social programs, but only for their own.
The fact that the proposal went down in flames (70%+ voted no) shows that the Swiss are not a bunch of FSA recruits.
It just means that they haven’t imported enough FSAers to swing the vote yet. Give it time.
I think money for nothing is the future. As the robots replace most of the unskilled/repetitive jobs and cheap immigrants replace “natives” from the semi or skilled jobs, you will have to pay the natives not to riot.
This is just the beginning……
…and disarm. Not to get political, but for everyone’s safety if there is going to be riots for Govt handouts/free money, the elites definitely don’t want the beggars/takers to be armed [legally]
I agree with both predictions. Algorithms aren’t going to purchase consumer goods. Are all the bus, truck and taxi drivers put out of work by self-driving technology going to become coders? Is there any sector of the economy capable of absorbing fast-food workers replaced by robots? I don’t think so, unless they become soldiers. And soon gun control will be favored by the 0.1% regardless of political orientation. I’m surprised it hasn’t happened already, but that’s probably because those people live, for now, in a world where they are insulated from the consequences of their decisions.
Why bother disarming them? The only people that are vaguely organized are militias like the Dildonians that managed to take a bird sanctuary, and we saw how effective that bunch was.
One random guy with an AR-15 is no credible threat to the government. Nor are a million, or 3 million.
Arent there around 60 million gun owners in the USA with approx. 300 million legally possessed guns? Mix in the folks with undocumented gun purchases, illegal posessions, and the elites/Govt may have a problem on their hands.
That’s an interesting point. Imagine the conspiracy theory that someone like Alex Jones could come up with if he was in favor of gun control. The government allows untold numbers of AR-15s to float around the country because they could never be used to overthrow the government. The government is quite happy that Americans use those AR-15s to slaughter each other on a regular basis. It provides a good excuse to militarize police departments and read our email.
‘The government is quite happy that Americans use those AR-15s to slaughter each other on a regular basis’
‘The tragic mass shooting at the popular Pulse nightclub in Orlando, Florida early Sunday morning resulted in at least 50 dead, including the shooter, and 53 others injured. The national media were quick to label it the “deadliest mass shooting” in American history.’
‘American Indians were responded on social media that the media failed to consider Wounded Knee where some 300 men, women and children were killed a few days after Christmas in 1890. Also, not mentioned was the Sand Creek massecre in 1864 where between 70 – 180 Cheyenne and Arapaho were massacred. It is estimated that two-thirds of the slain were women and children.’
Don’t 50 people get shot every weekend in Chicago?
The religion of piece strikes again. They’re looking for a Somali in khaki pants.
http://www.foxnews.com/us/2016/06/14/report-active-shooter-possible-hostages-at-amarillo-texas-walmart.html
Well yeah, but not all at the same time. You have to score it like a video game.
“It provides a good excuse to militarize police departments and read our email.”
Rump is all over that, and the lizard queen no doubt approves.
What about the Mountain Meadow Massacre? Of course, there was more than one shooter there.
So some of the news operations should call Orlando the deadliest in the 20th century. If someone wanted to identify the deadliest day of shooting in American history, it would probably be one of the days at Shiloh, Antietam or Gettysburg.
Irrelevant.
“One random guy with an AR-15 is no credible threat to the government. Nor are a million, or 3 million.”
Tony Long Date of Publication: 06.25.09.
The Lakota and Cheyenne warriors did join the battle with a number of Henry and Spencer repeating rifles, which provided a higher rate of fire than the single-shot Springfield Model 1873 carbines carried by the cavalry troopers.
Battle of the Little Bighorn: Custer’s Last Stand
At mid-day on June 25, Custer’s 600 men entered the Little Bighorn Valley. Among the Native Americans, word quickly spread of the impending attack. The older Sitting Bull rallied the warriors and saw to the safety of the women and children, while Crazy Horse set off with a large force to meet the attackers head on. Despite Custer’s desperate attempts to regroup his men, they were quickly overwhelmed. Custer and some 200 men in his battalion were attacked by as many as 3,000 Native Americans; within an hour, Custer and all of his soldiers were dead.
Custer didn’t have bradleys, predator drones, and automated weapons platforms.
You sure put a lot of stock into that when the Iraqis defeated more, the Afghans too. The military has done studies and most US soldiers will turn their guns around if ordered to fire on US citizens.
Well then, we don’t need guns at all, do we? The military will sort it out for us.
Don’t be a lola.
‘we don’t need guns at all, do we’
The military isn’t at my house. If you have a problem with someone call the cops. See what they say.
Have an ar15 leaned up against the headboard?
“The ultimate crash scenario is England pulls out and everybody looks around and says: ‘They managed to survive. Why do we need this?’ and then they all decide to pull the strings apart and that creates a lot of volatility,” said Boris Schlossberg, managing director with BK Asset Management.’
‘Schlossberg said the fact that Brexit worries are beginning to spill over into financial markets may be a positive. “If more financial assets melt down ahead of time, the more it will scare the people into staying,” he said. “The worst-case scenario is that everything’s complacent, and people can vote for it.”
‘If more financial assets melt down ahead of time, the more it will scare the people into staying’
And this is the ultimate reason BREXIT must be stopped.
I forget the %’s but the UK has become a prison haven for EU prisoners. They are projected to need to build more prisons at more costs to the UK taxpayers. It’s funny how the UK has existed as an empire and economic powerhouse for centuries, and has only been in the EU since 1973. Yet the major counter argument against Brexit, is “oh the economic implosion that will ensue”. Really? They still have their own ’strong’ currency.
Because looting other countries’ resources is so last century.
“The ultimate crash scenario is England pulls out and everybody looks around and says: ‘They managed to survive. Why do we need this?’ and then they all decide to pull the strings apart and that creates a lot of volatility,” said Boris Schlossberg, managing director with BK Asset Management.’
All of the politicians promoting Brexit claim that some sort of trade deal can be made with the EU so that British-made products can continue to be exported to the continent tariff-free. If there’s a possibility that Brexit could lead to the end of the EU, that could cause some British voters to vote to stay in.
‘Staying in will be worse for immigration, worse for jobs, worse for wages and worse for our way of life. Greece is bankrupt. Italy is in danger of going the same way, with even more disastrous consequences.’
‘In Spain, 45 per cent of those under 25 are out of work. And numerous even poorer and worse-governed countries are now joining the EU.’
‘To remain means being powerless to cut mass immigration which keeps wages low and puts catastrophic pressure on our schools, hospitals, roads and housing stock. In every way, it is a bigger risk.’
‘The Remain campaign, made up of the corporate establishment, arrogant europhiles and foreign banks, have set out to terrify us all about life outside the EU.’
‘Nonsense! Years ago the same politicians and economists issued apocalyptic predictions about our fate if we didn’t join the euro. Thank God we stopped that. The single currency’s stranglehold has since ruined the EU’s poorer nations and cast millions on the dole.’
‘Vote Leave, and we will reassert our sovereignty — embracing a future as a self-governing, powerful nation envied by all. We will re-establish the basic principle that we are governed by politicians we elect or eject every five years, not foreign bureaucrats.’
‘The Remain campaign, made up of the corporate establishment, arrogant europhiles and foreign banks’…and sad pandas.
‘Even though world bond yields have never been lower and an increasing array of bank deposit rates around the world are now negative, investors are willing to hold more cash in their portfolios than at any time since November 2001.’
Yeah? Well the risks don’t match the rewards. Increase the rewards and decrease the risks and let’s see what happens.
Until then: Cash.
‘Agents and others say they started noticing problems a year or so ago as central Ohio’s housing market fired up, with homes selling above asking price in a day or two, sometimes in bidding wars’
Central Ohio joined other red hot markets like Perrysburg, Omaha, and Bozeman. Now we have appraisers replicating what has been happening in Boston and LA:
‘Let’s say home prices have gone up 12 percent a year, so if you have a house that sold three months ago, that’s a 3 percent adjustment’
The article mentions some burgs going up 38%. That’s almost 10% a quarter: reflect the market, darn you!
One question; does this market reflection go on indefinitely? Cuz if it does, we may have a perpetual wealth generation machine in central Ohio.
“… we may have a perpetual wealth generation machine in central Ohio.”
Powered by promises of money.
Promises of money is where it’s at; Cheaper that way.
Perpetual money yet no more manufacturing jobs. Weird times…
I predict it ends soon and with many fools telling us they are victims
But, but, but I WANT subway tiles in my kitchen and I will pay whatever the loan to get it.
That may not be a coincidence. Some say these bubbles have been created/allowed to mask the off-shoring. In an age when powerful people say deficits don’t matter (ie we can print money indefinitely) it isn’t much of a leap to conclude governments should hand out cash as opposed to having people pay taxes. The question of ‘would it work’ is always there.
Yes its definitely a way of hiding our true decrease in economic output and thus falling income for blue collar/middle class. Why have factories, when you can just flip your house with easy credit and profit a years salary?
Would it work? Depends on how badly people need to see themselves as above other people. Might be able to pull it of if we could instill some other status system that doesn’t involve material wealth.
I reject almost all conspiracy theories, but it strikes me as unusual that residential real estate in central Ohio and other heartland parts of the country is booming precisely now.
We are a foolish people and we will get what we deserve.
I had to Google Columbus OH economy just to see the validity. To their credit, they do have a strong diverse economy, which didn’t dip much in the recession. They have 4 top Fortune 500 corporations there, chemical manufacturers, some DoD work, insurance, banking, and Ohio State University.
“We are a foolish people and we will get what we deserve.”
Please leave out the “we” stuff, there are many people who don’t or didn’t participate and you’re basically saying they deserve to go down as proxies for a bunch of criminals, deviants and ignoramuses.
If you want to get what THEY deserve, fine, that’s your business. But don’t include me.
If your argument is that, as a citizen of the US, I deserve it because I was here, then tell me what I, personally, should have done, other than not participate in the shenanigans.
Whatever it is you think you did wrong, or whatever you failed to do that you should have done, that’s great you are owning up and taking responsibility. If you feel you deserve punishment, by all means have at it. But don’t think that other people, who don’t deserve it, should join you.
WFAA reports from Texas. “North Texas is home to one of the hottest housing markets in the country. Real estate agent Beth Groenewald, says if you’re looking in this market, you either buy it or say goodbye to it.
are they aware that oil is $48 a barrel
TX relies heavily on RE taxes
It’s different this time
‘Wanda Charles, an Ebby Halliday real estate agent with the Wanda Charles group, loves it. “It is maybe, perhaps a once-in-a-lifetime opportunity,” she said.’
‘But she says each new deal starts with a disclaimer: “What I explain to my clients is that it is fun to sell and it is not fun to buy.”
Maybe, perhaps. Or you might be setting yourself up for the biggest step down since the 80’s.
Prosper, TX New Homes Construction for Sale
540 Homes
http://www.realtor.com/newhomesconstruction/Prosper_TX
Many of these are new:
Prosper, TX Real Estate and Homes for Sale
733 Homes
http://www.realtor.com/realestateandhomes-search/Prosper_TX
Price reduced:
Prosper, TX Real Estate and Homes for Sale
118 Homes
http://www.realtor.com/realestateandhomes-search/Prosper_TX/shw-pr
Chosen at random:
2921 Creekwood Ln, Prosper, TX 75078
5 beds 5 baths 5,100 sqft
$929,900
Price cut: -$20,000 (6/13)
Zestimate®: $946,226
06/13/16 Price change $929,900-2.1% $182.
05/27/16 Listed for sale $949,900+7.9% $186
08/01/14 Listing removed $879,999 $172
04/18/14 Price change $879,999-2.1% $172
03/07/14 Listed for sale $899,000 $176
Property taxes - 2015 $15,969
http://www.zillow.com/homedetails/2921-Creekwood-Ln-Prosper-TX-75078/69634158_zpid/
‘What I explain to my clients is that it is fun to sell and it is not fun to buy’
But you can’t sell if you didn’t buy.
Price cut: -$20,000 (6/13)
That’s yesterday. Having fun yet?
Any well heeled real estate investor will tell you that money is made at the real cash purchase of a property. If you’re not getting a steal it’s not a buy.
Buying is not so bad in a normal market…when I did that in 1997 I looked at about 10 houses and made two offers…one was rejected and one was accepted. Sold in 2007 and tried to buy again in 2011 and it was virtually impossible to compete with cash buyers, gave up after nearly a year. May try again after the current bubble pops. BTW came across an interesting option lately…if you are 62+ you can do a home equity conversion mortgage, basically you put 50% down and then have no payments for life (but DO have to keep the property tax and insurance current) After you pass the house is sold and if there is a profit it goes to your estate…if not the FHA insurance covers any loss the bank might see. (Am NOT recommending this but it is an option I’m considering after the current bubble pops and once I reach 62 in a few years)
http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/hecm/hecmabou
“it was virtually impossible to compete with cash buyers”
Why attempt to compete with endless streams of money borrowed by hedge funds?
I love how miraculously the listing from 2014-2016 gained 8%, especially after a long down 2015 and early 2016 for oil.
In the Dallas area they don’t think about the oil. It’s pure housing bubble money now. Oil isn’t driving this one way or the other. Like Columbus Ohio. About a year ago I learned of a guy in Dallas who bought a house, added a $30,000 bathroom and flipped it for over $100,000 profit. Who needs oil?
“It is maybe, perhaps a once-in-a-lifetime opportunity,” she said.
Watching the video you can tell as it spoke the creature realized it was about to tell the truth:”It is maybe… the peak of the bubble.”
But then her sociopathic Realtwhore reptile brain took over and made sure the message would support destroying the financial futures of her marks, er clients, for that sweet sweet commish.
“Real estate agent Beth Groenewald, says if you’re looking in this market, you either buy it or say goodbye to it. ‘Jump on it, because it is not going to be here five minutes from now. It’s gone,’ she said. ‘You don’t have to love it; just like it.’ Demand is crazy.”
You lost me at “Real Estate Agent”
KR8OR.
Liars. Im seeing houses sitting for weeks here in the North Shore of Boston in Danvers. Places right around from my street, they eventually get “contract pending” or sold signs, but they’ve been moving slower and slower, and all have price reductions.
and june 15th is pretty much the end of the buyer rutting season
Happy Flag Day! (Cue false flag comments)
We should celebrate False Flag Day every September 11.
‘A New York hedge fund manager who at age 28 lost nearly all $57 million he oversaw in less than three weeks was spared prison on Monday, as the judge recognized how quickly and thoroughly the defendant owned up to his crimes.’
‘Owen Li, the founder of Canarsie Capital LLC, was sentenced to probation by U.S. District Judge Robert Sweet in Manhattan, prompting gasps from spectators in the courtroom. The defendant then hugged his lawyer.’
‘Sweet had in March indicated he would likely sentence Li to five years in prison, less than federal guidelines advise and in line with prosecutors’ recommendation. But on Monday, he changed his mind.’
“You have done all a human being could do to go take responsibility and to clean up the tragedy,” Sweet told Li. “Perhaps the lesson that comes out of this sentencing should be that there is redemption, and there is grace.”
‘Assistant U.S. Attorney Michael Ferrara said prison was justified to deter others, and show that is not acceptable to “lose 50-odd million dollars and lie to your investors.”
How many stories do we have to see about banker/investors lying, cheating, scamming millions of $$ and walking away with less penalties than possessing a LB of mary jane or a few grams of coke?
“At the hearing, Resnik said Li made bad trades because he felt compelled to erase earlier losses, reflecting a ‘flawed’ psyche from a life where Li had come to believe perfection was required.”
______________________________/
Clearly the defendant’s alleged psychological need to be perfect did not encompass following the law perfectly.
“At the hearing, Resnik said Li made bad trades because he felt compelled to erase earlier losses, reflecting a ‘flawed’ psyche from a life where Li had come to believe perfection was required.”
It’s sort of like the kid that drove drunk and killed all his friends and the defense was affluenza. If only you can see if from the perp’s point of view, it all makes sense.
It’s called “Offender-Centric” criminal justice policy.
John Corzine laughs with delite…
Pardon Jon Corzine.
Yikes! interestingly the article goes on to say that the defendant had attended Stanford (like the rapist of an unconscious woman who recently got a 6 month sentence for his crime)
Anyone remember this guy? Well, he finally met his maker.
“Police confirmed that Giachetto’s roommate found him face up in bed and foaming at the mouth late Sunday morning and called 911. Paramedics pronounced Giachetto dead at his W. 100th St. apartment at 12:02 p.m.”
http://www.nydailynews.com/entertainment/gossip/confidential/disgraced-stockbroker-stars-dana-giacchetto-dies-article-1.2671892
Of course, he got nailed in the not too distant past when they used to go after these guys on occasion.
Too bad he couldn’t have hung in there a few more years before working his magic. The judge would have awarded him a medal of honor instead of jail time. And he might still be alive, instead of gurgling out his final latte along with his final breath.
Nassau County, FL Affordability Surges As Housing Prices Plunge 6% YoY
http://www.zillow.com/nassau-county-fl/home-values/
Just looked at random listing.
A $230,000 condo with 950 Sq ft.
No mention of HOA fees
Taxes $4,000
Insanity…
HoA fees are killer because they can be increased YoY with no increase in service to the community. When I signed my purchase contract in 2013, fees were $150/mo. Then the Senate was going to allow FEMA flood maps to be redone, jacking up coastal flood rates nationwide anywhere from 10-50%. My association proposed an increase to $188/mo just as I moved in a couple months later. Well the Senate saw the hurt the FEMA flood zone remaps would case and froze the rates at current 2013 levels. Did my HoA go down? nope.
Never again with a condo…or a house. Until its truly affordable.
Zenefits!!!
What, no more boozy parties on company time with “sex on the stairwells”?
Damn, bro, where’s my benefits?
“Lender-mediated residential properties accounted for 17 percent of sales in May, according to the Northeast Florida Association of Realtors.”
What the heck is that supposed to mean? That banks did not foreclose on defaulted mortgages (for how many years in default?), but instead “mediates” a sale of the house to a third pary? Sounds nice, that the bank needs not recognize the default? What is the sinister reason behind this new scheme>?
It means anyone who bought a house in the last 15 years is a DebtDonkey.
I was asking a serious question. I was not looking for a flippant remark, however true it might be, for an answer.
It was a serious answer.
Brexit!!
Has anyone made sense of it all yet? No? Keep trying and thanks for playing! (Bonus hint: this will never be fixed without a purge, followed by a replacement system)
Mount Vernon, VA Affordability Improves As Housing Prices Crater 8% YoY
http://www.zillow.com/mount-vernon-va/home-values/
What’s up with that broad Dana Bash on CNN? She’ looks like she’s got ebola or anorexia.
Obama = Ebola.
Now listen up, son, as Parliament performs “Placebo Syndrome”
https://www.youtube.com/watch?v=eMmMuQcRooI
If she gets any skinnier she’s gonna fall through her ass and hang herself.
Hey Dana would care for some Cheetos?
Parliament — Funkentelechy:
https://www.youtube.com/watch?v=UFalZJ5eEwY
Bootsy trumped by ThunderThumbs.
https://youtu.be/cufB-l6HgMQ
Battle of the Little Bighorn: Custer’s Last Stand
Tony Long Date of Publication: 06.25.09.
The Lakota and Cheyenne warriors did join the battle with a number of Henry and Spencer repeating rifles, which provided a higher rate of fire than the single-shot Springfield Model 1873 carbines carried by the cavalry troopers.
Typical PhD…….. nimrod.
“How I Helped Inflate the Housing Bubble”
http://www.bloomberg.com/view/articles/2016-06-14/how-i-helped-inflate-the-housing-bubble
Guys, the housing bubble is about to bust. Just hang in there a little longer and the prices will smash to the ground again. Then you can buy at a reasonable price - what the house is actually worth.
All this baloney where you buy a house, make it shitty by living in it, coughing, sneezing, pooping, and skin cells flying everywhere, now somehow years later it’s supposed to be worth MORE money? How? Where did the value come from?
I don’t know about you, but last time i checked cars and just about all other consumables go down over time. A house is no different, it is a consumable item because it will wear out over a given time, and require full renovation/restoration.
Therefore, like all other things, houses should DEPRECIATE year over year, until they get to the point of being in shams, and then an investor can come in, buy it cheap, fix it up, and put it back on the market at the “normal” value of a non-inflated house.
Don’t be a fool and buy an overprices house just because it has tile floors and granite counters. That stuff only costs $5,000-$10,000 - not the $50,000-$300,000 extra sellers are trying to charge. Its freakin rocks cut into little squares and a slab. It’s not pure gold.
It would be a better investment to take a $300,000 or whatever mortgage and buy/build a business with it, than waste it on a depreciating liability like a house. But most people are not that smart. Luckily, you and I are.
Yes, stick-built houses in particular do not get better with time, and therefore should not be appreciating assets.