The Frantic Pace Of Sales Has Abated
The Greeley Tribune reports from Colorado. “Weld County housing prices hit another milestone in May as the median sales price for the county shot up over the $250,000 landmark. During the past two years, the median price for single-family homes has risen 50.5 percent, from $172,700 to $260,000. But as housing prices continue to climb across the Front Range, wages remain stagnant, posing the question of affordability for those who live in the area. Mike Ramstack, a longtime broker and owner of Pro Realty, said he is nervous another housing bubble burst is on its way because people won’t be able to afford their homes. ‘I think we’re heading toward a big correction,’ he said. ‘We have people moving into the area, but from what I can see, wages haven’t risen that much to offset the increase in prices.’”
“Having so little inventory, or available houses, is causing a lot of the problem. He said some people are bidding $15,000-$20,000 more than the asking price and they’re still not getting the house. ‘People are getting what I call ‘auction fever,’ Ramstack said. ‘They’ve got to get it, and they overbid.’”
The News & Observer in North Carolina. “Triangle home sales rose 10 percent in May compared with the same period a year ago. The inventory shortage is particularly acute for homes priced under $300,000, as rising land costs have made it difficult for homebuilders to offer new product priced in that range. ‘It’s insane,’ said Van Fletcher, a real estate agent with Allen Tate, who has sold or put under contract 48 homes this year. ‘Every single one that I’ve put under contract, whether I represent the buyer or seller, is a multiple offer.’”
“Stacey Anfindsen, a Cary appraiser who analyzes MLS data, said the Triangle remains very much a bifurcated market. While demand is far outstripping supply at lower price points, it’s a different story at the upper end of the market. Sellers above $500,000 in many areas of the Triangle are having a much harder time selling their home. Anfindsen said a wave of new construction in the Falls Lake area is expected to make it even more challenging. ‘The re-sale market for $700,000 to $800,000 and above is going to get worse in the next six months to a year because there’s really nothing they can do to compete with new construction but lower the price,’ he said.”
The Naples Daily News in Florida. “A flood of new supply cooled sales of existing homes in the Naples area in May, though prices continued to inch forward. A report by the Naples Area Board of Realtors comparing May to the same month a year earlier showed inventory levels of resale homes and condos jumped 37 percent, to 5,207 from 3,800. That’s a boon to buyers, said Jeff Jones, managing broker at the Naples-Park Shore office of Coldwell Banker, in the report. ‘As more properties come on the market, buyers will have more options and won’t be forced to make aggressive offers,’ he noted.”
“Supply grew by more than 50 percent in the $1 million-and-above price range. But those who have been most squeezed by the housing shortage — buyers in the $300,000-and-below range — also found some relief. Supply in that segment jumped 29 percent in May over the year, to 1,391 from 1,076. Single-family home supply jumped 27 percent, to 2,744 from 2,168, while condo inventory increased 51 percent, to 2,463 from 1,632. With more to choose from and less pressure to buy immediately, the frantic pace of sales of last year has abated. Following a downward trend that began during season, overall closed sales dropped 17 percent, to 838 from 1,010.”
“‘The properties that are selling now are homes by owners who have priced their homes realistically,’ said Brenda Fioretti, managing broker at Berkshire Hathaway Home Services Florida Realty, in the report.”
Richmond Biz Sense in Virginia. “After dodging a foreclosure auction and weeks of negotiations with would-be residents, the developer of a stalled West End condo project has entered Chapter 11 bankruptcy. Tiber Partners LLC, the embattled ownership group behind the delayed Tiber condos at Libbie and Guthrie avenues, was ordered to enter bankruptcy protection. The ruling comes less than two months after three couples who put down deposits to purchase condos at the stalled development sought to force Tiber Partners into Chapter 7 bankruptcy.”
“In 2013, George’s John K. George & Company broke ground on the 15-unit condo development with units ranging from $575,000 to $1.2 million. Planned to be delivered to residents in 2015, the project remains unfinished with the delays coming to a head when John K. George & Co. and Tiber’s developers argued in court over completion of the project. While they traded allegations in court, people who put down deposits on the unfinished condos filed liens and lawsuits of their own.”
The Forum News Service on North Dakota. “Residential lots that Halliburton purchased for employee housing in Williston will soon be auctioned off to the highest bidder. The oilfield service company is selling 21 residential lots in Williston’s Harvest Hills neighborhood through a live auction June 30. The residential lots, as well as two commercial lots in Williston, will sell without a minimum bid, said Fontana Fitzwilson, executive VP of sales for Williams and Williams Real Estate Auctions, which is handling the sale. ‘They want buyers to know they’re committed to selling these,’ Fitzwilson said.”
“New home construction in Williston has significantly slowed with the drop in oil prices. Williston had issued four building permits for single family homes this year, according to numbers updated through the end of May. In 2015, Williston issued 76 building permits for new homes, the lowest number in six years. Williams County listed the value of the residential lots as between $50,000 and $70,000 in 2015.”
The Calaveras Enterprise in California. “Oak Canyon Ranch near Copperopolis, once planned as the largest golf course resort and housing development in Calaveras County, will instead remain as grazing land and could soon be permanently preserved through a conservation easement. The Calaveras County Board of Supervisors opened the door for that conservation easement by voting unanimously to give its blessing to the proposal. At a later date, the board will also have to rescind the development plans that were approved in 2003 for the 3,171-acre ranch.”
“The board acted at the request of members of the Airola family, who have leased the land and raised cattle on it for 60 years. Airola and his wife Deloris, 58, said that the family suffered through some glum years after the massive development was approved, never knowing when their lease might be canceled so that bulldozers could move in and construction begin. But larger market forces kept that from happening. After the housing crash of 2008, the demand for golf course homes in the Mother Lode stalled. Land prices came down until, last year, the Airolas were able to purchase the land.”
“Bill Airola is now retired from his veterinary practice, so he and Deloris have the time to run the ranch with a little help from their four sons. ‘Ever since we’ve been able to purchase it, it has been like a dream come true,’ Bill Airola said. ‘I have to pinch myself every once in a while about this.’”
“The project approved in 2003 would have allowed two golf courses, 2,675 single-family homes and a village center with a 300,000-square-foot commercial area, including 1,200 apartments and an 800-room hotel. ‘Unfortunately, the timing was not good for this project and it went belly-up,’ said Planning Director Peter Maurer. ‘The property owners have no intention of developing the property. This will continue the productive use of that property as a cattle-ranching operation.’”
“In 2013, George’s John K. George & Company broke ground on the 15-unit condo development with units ranging from $575,000 to $1.2 million.”
Haha. $575k-$1.2 mil condos in Richmond, VA?! The same Richmond VA with a bunch of starving artist kids who graduated from VCU in downtown with massive debt and no jobs besides baristas? The same Richmond VA that ranked in the Top 10 in murders nationally a few yrs ago? I don’t know if anyone here has been to Richmond VA, I love Virginia, but Richmond is the antithesis of a state capital city.
My how times have changed….not.
Had the same thing in Norfolk VA. Barr Construction turned a business into overpriced condos along Brambleton. It took them forever to sell units, probably still half empty.
Lol. Norfolk. Where they prayed the Tide lightrail would somehow change the perception of Norfolk. Look at East Beach community, what a farce. $600k-$1 million homes on the corner of shore Drive/ OV Ave. Prime flooding area. Whne I was studying the FEMA flood maps for that area, East Beach’s community was conveniently in the “non hazard zone” but the whole entire surrounding area was at risk for a “once in a century” type storm…hmm weird…
Norfolk is awful. A buddy and his wife lived there; I visited on three occasions. Can’t imagine living there.
Is the PETA headquarters still there?
It is still there, very inconspicuous waterfront building, small, ugly. I grew up in Virginia Beach, which is where the military and DoD folk live to avoid living in Norfolk. My alma mater/uni, ODU, has a text alert system. Every Fri night, kids were robbed wandering down the wrong street heading back from a party (idiots) at 2 am, those incidents were clock work, coupled with the occasional gun shot warning or being held at knife point in the wee hours.
my kid fly out of Oceana- ,lots of family stress types there
Family stress types? Like family oriented?
Ahh Ocean - the sound of freedom. Until one of those jets crashes into your apartment complex like in 2012. In the height of the market, VB kept allowing devs to push closer and closer to the landing zone/runways of Oceana. Finally the Govt threatened to close shop and open up a new master jet base in the middle of NC. VB saw the writing on the wall and 5,000 middle class families uprooting, and immediately told Devs to stop encroaching
Norfolk: At least it’s not Suffolk.
What happens to our current interest rates of 3% if the bubble bursts? Could they go back to the 5% (or higher) level. In that case wouldn’t it be better to buy real estate now, lock the 3% up for 30 years even if a crash takes the price of you home down temporarily?
Why buy today what you can buy later after the correction for 65% less? Rent for half the monthly cost in the meantime.
I know right. I’m waiting for housing to be added to the constitution as an inalienable right. Gimme my houses yo, then I just gotta hold out for that guaranteed monthly income.
You can rent for half the monthly cost today. There is no need to wait.
I remember the hype of 5.5% interest rates, and the rush of refi’s then. Crazy to think we’ve had 3-3.5% for 7 or 8 yrs.
“What happens to our current interest rates of 3% if the bubble bursts? Could they go back to the 5% (or higher) level. In that case wouldn’t it be better to buy real estate now, lock the 3% up for 30 years even if a crash takes the price of you home down temporarily?”
If a 3% interest rate allows a house to become “affordable” (and I tend to choke on that word as it is used here) then what happens to the term “affordable” if interest rates rise? What happens to prices if what is now affordable is redefined, redefined in a downward direction?
Keep in mind that these hefty prices are not paid by the buyers, these hefty prices instead are promised to be paid by the buyers - promised to be paid over spans of time that are measured in decades. If the promises are barely affordable (choke) at 3% what happens to the promises when this 3% goes to 5%?
What happens to the prices that are supported by 3% interest rates when these interest rates are raised to 5%?
“… even if a crash takes the price of you home down temporarily?”
And your neighbor’s home too, temporarily.
Think about this: If you can barely squeak in at 3% then so it is with your neighbors. If you go underwater when rates are raised then so do your neighbors.
Take a look at neighborhoods that go underwater. What happens to them?
People who live in such neighborhoods are trapped; If you live in such a neighborhood then you, too, will become trapped.
Allow me to restate this:
People who BUY in such neighborhoods are trapped; If you BUY in such a neighborhood then you, too, will become trapped.
There.
How many years has the FED been jawboning about raising interest rates now? It is all hype and bs. The rate hike cycle is over. There is too much debt to raise rates.
They are rigging the stock market to justify having rates at zero so casino gamblers can get some yield and not be totally pissed. They are using the stock market to compensate for having to keep rates at zero.
The only way rates are going to go up if there is a currency crisis.
You sheep need to save more for retirement! LMFAO
There is no “saving” for retirement. At practically no return on CDs or bonds, the middle class is forced to gamble their savings on the DOW.
Hey Donk.
At practically no return on CDs or bonds, the middle class is forced to gamble their savings on the DOW.”
gamble on RE
There is no “saving” for retirement.
No, this _is_ old-fashioned “saving for retirement”—you expect to have to save nearly every dollar that you will need to spend in the future. In such an environment, inflation is the grim reaper; no return on your investments does not necessarily mean that there is no inflation chipping away at the money that you are saving.
http://www.freemansperspective.com/why-so-hard-to-save-money/
“The Simple Reason it’s so Hard to Save Money in Today’s World…
When analyzing the economics of civilizations, the big question is this: Where does the surplus go?”
And…
For 200 years (from mid-17th to mid-20th century), prices fell and, therefore, the value of people’s savings increased over time.
“Myth 7: Deflation – falling prices – is unthinkable, and would cause a catastrophic depression.
The public memory is short. We forget that, from the beginning of the Industrial Revolution in the mid-18th century until the beginning of World War II, prices generally went down, year after year. That’s because continually increasing productivity and output of goods generated by free markets caused prices to fall. There was no depression, however, because costs fell along with selling prices. Usually, wage rates remained constant while the cost of living fell, so that “real” wages, or everyone’s standard of living, rose steadily.”
https://www.lewrockwell.com/1970/01/murray-n-rothbard/ten-great-economic-myths/
oxide: At practically no return on CDs or bonds, the middle class is forced to gamble their savings on the DOW.
Better hope more money keeps flowing into the market than flowing out.
Compared to today, life was pretty miserable before World War 2.
I am living in the last bust.
My LL has been communicating for months that her refinance was in process. Less than 10 days ago she frantically calls and says no one will refinance her Jumbo ARM from 2006 (she tells me many details I would have liked to have known before- she paid too much, put more money in, has barely any equity in the house and has been working an extra job to pay for $1000 overage our rent didn’t cover). She put the house on the market immediately (a no-no since we wrote into the lease that it couldn’t be for sale while we rented). Our downside? We went month to month after the first year- we thought we’d find something better to go to that doesn’t have a ski slope for a driveway before winter came again.
So this is what happens when rates rise and the affordable becomes not.
I am living in the last bust.’
Yep my landlord wanted to move into the rental and “start his new life” gave me 60 days to get out.
I bought a house screw these CA landlords. This was in 2012 since then its gotten way worse.
Landlord moved in painted one wall black and sold it for a 100K profit.
The real question is what happens when that Amazon stock is $200/share instead of $650. Or what happens when Netflix ($100/share) doesn’t add any new subscriptions, and people cancel due to rates exceeding $15/mo?
Heck even Microsoft ‘only’ has a P/E of 38.5. Exxon has a P/E of 30. The analysts say that P/E is no longer a measure right? Isnt it some kind of new price-growth potential ratio, or some other accounting schtick to BS the market?
The good thing about stocks is they can only go to zero. Houses go negative.
Wait. I think you’re onto something there. Could that be the next financial tool? Negative stock ownership? I guess that would be bonds. Hmmm…I’m sure the financial geniuses can bamboozle a new scheme up.
Are you assuming that home prices would be unaffected if rates rose from 3% to 5%?
If so, I suggest you enroll in remedial finance immediately.
If the 3% bubble bursts, interest rates will go down to 1%, not rise to 5…
Interesting logic there. And when rates go to 15% because they have everyone convinced rates are about to go lower?
And when rates go to 15% because we can’t possible pay back all the debt and try and make a deal.
That’s what I expect plus selling off assets , stiffing retirees, etc.
Have to first wait until everyone is convinced it can’t happen.
I agree.
I actually think the FED is SHORT interest rates.
I think rates can spike up into 2021.
What happens to our current interest rates of 3% if the bubble bursts?”
Interest rates would go up if there is a inflation scare and a dollar devaluation and probably RE would go up because its a hard asset.
That happened back in the 1970’s could it happen again ?
The economy is so screwy right now I have no idea.
Up is down. War is Peace. Debt is profit.
Fair is foul and foul is fair.
Hover through the fog and filthy air.
Buy low, sell high. Not buy high and cross your fingers.
Fed Focus
Bond bubble bursting? Don’t hold your breath
by Paul R. La Monica @lamonicabuzz
June 6, 2016: 12:53 PM ET
http://money.cnn.com/2016/06/06/investing/bonds-bubble-interest-rates-fed/
For the bond bubble to burst, the bond sellers would have to actually find BUYERS! lol
da bear
Builder pays $33.7M for land near Naples golf course
Naples-based London Bay Homes paid $612,727 per acre and plans up to 250 homes
June 19, 2016 03:45PM
http://therealdeal.com/miami/
“…paid $612,727 per acre and plans up to 250 homes…”
Looks like another two-hundred-fifty starter homes.
HA and his 9 user names can build those, no matter how big for .28 cents a sq ft.
lol@lola.
Dow set for 200-pt gain as polls show a swing away from Brexit
Dow set for 200-pt gain as polls show a swing away from Brexit
YMM6 -0.02% SPU6 1.34% NQU6 1.31%
Brexit polls show resurgence in ‘remain’ support
European stocks leap as Brexit polls show shift to ’stay’
The sterling pound has been rising since the shooting ‘accident’ of that campaigner.
There’s too much at stake to allow Brexit. Interesting graph on the “Remain” odds.
http://www.zerohedge.com/news/2016-06-20/martin-armstrong-assassination-conspiracies-theres-too-much-stake-allow-brexit
With Rates In The 3s, Post-Bankruptcy Applicants Are Asking When They Can Buy Again
June 18, 2016
http://themortgagereports.com/20953/mortgage-after-bankruptcy-chapter-7-and-13-every-loan-type
Hopefully never unless they have all cash yo.
Smelly Mel watt ,Mr housing for Welfare cheats will get them loans
‘Asking When They Can Buy Again’
Wait. Do they mean these people didn’t pick through the multiple offers and get the sweet cash to snap up a Grand Rapids house and telecommute?
They are still running adds on tv in CA to help the folks who were duped 10 years ago. This seems like a real joke here.
Keep your home CA!
All it does it make home more pricey for everyone else.
Stucco shacks around me are 300k. Most people will never really own anything.
They could be 1/3 of the way into owning their overpriced crapshack. Instead of crying poor innocent lamb to the banker wolves, they could have lived within their means. Help! Help! I read today that SoCal could be experiencing power outages as natural gas is in short supply. No gas, no water, high temperatures, expensive houses…
I know a handful of people who are re-buying under owner terms. Which is a better backstop rather than it getting pushed on the public if they default again.
‘During the past two years, the median price for single-family homes has risen 50.5 percent’
Somebody is watching this, right?
No bubble here. Rather prices have normalized after the Great Recession. (Collective amnesia prevents recalling what happened to U.S. home prices over the 1890-2007 period.)
Artificial stock and home prices make people feel wealthy and they buy stuff.
70% of the economy is consumer driven. WTF?
They say CA is back to full employment. They have even passed france as the worlds 6th largest economy. Let the good times roll!
So many new food delivery apps in the pipeline. Saw an app the other day that calculates how much money you spend taking a dump at work. VC funding baby….let the money flow
Yup. Pretty much any service that makes life easier for a single male millennial programmer, living in a downtown condo w/o a car. “Bring me a sammich and I want it now!”
And I’m not against tech apps of course. Google Maps navigation, great. Uber disrupted the taxi industry and it needed to, SF taxi prices were RIDICULOUS when I was there for work. But when there are 3-5 clones of Uber, 3-4 food delivery apps, 2-3 instant picture apps, 50 different 3rd party texting apps, it just becomes ridiculous. All these devs/companies are trying to pay programmers $80-100k and they have no actual product to sell.
Uber’s getting pretty desperate too though - they got money from the Saudis and now they are selling bonds to raise cash.
Uber may have a product people love but its business model is based on an Ayn Randian dystopia fantasy that isn’t sustainable in real life.
Still the total private venture capital is about 100 billion. Bernie Madoff’s ponzi scheme wiped out $50 billion and that was just one small part of the last implosion.
I don’t think its all going to come crashing down this time - I think it’ll be a slow unwind with actual companies buying these high flyers for parts but I see a slow unraveling of the housing market in the Bay Area as people get cautious.
The speculators with there stupid BRRR plans, though , are going to see those dominos fall.
‘Anfindsen said a wave of new construction in the Falls Lake area is expected to make it even more challenging. ‘The re-sale market for $700,000 to $800,000 and above is going to get worse in the next six months to a year because there’s really nothing they can do to compete with new construction but lower the price’
The good ol’ new construction creating new FB’s routine. Well, it had to happen. These builders all of a sudden found a way to build for less.
Cover your eyes rental watch:
‘The inventory shortage is particularly acute for homes priced under $300,000, as rising land costs have made it difficult for homebuilders to offer new product priced in that range’
’selling 21 residential lots in Williston’s Harvest Hills neighborhood through a live auction June 30…without a minimum bid’
I had seen these listed on Williams site a week or so ago. I hope they publicize the results because other wise you don’t know what the sale price is unless you are bidding (or there in person, I’ve been to a bunch of these just to see who was bidding and how much was paid, etc).
Without reserve; this is a chance for these Williston boosters to get out their wallet and show how much they believe in hype. Did they ever build that lazy river?
Here’s the link for the auction:
Harvest Hills Lots - 23 Total Lots
Williston, ND 58801
SELLS WITHOUT RESERVE
Property Type: Land
https://www.williamsauction.com/residential-real-estate-home-auction/north%20dakota
I see Williams is cranking up the machine again. They were prolific in 2009.
It is practically impossible to overstate how cruddy the Orlando area is. I realize that, in light of the Orlando massacre, this public official’s post was insensitive, but he spoke the truth.
“In a time of universal deceit - telling the truth is a revolutionary act. George Orwell”
http://www.nbcnews.com/storyline/orlando-nightclub-massacre/florida-official-kenneth-lewis-suspended-over-anti-orlando-facebook-post-n594966
I can attest to how bad the area is, and not just the city, but parts of its suburbs as well. I moved there at the peak of bubble 1.0 and came screaming back to the Tampa Bay area after just six weeks. The place is a nightmare.
That’s unpossible! The whole town is sprinkled with pixie dust, right?
I could never imagine living in Florida. The only member of our extended family who has been a victim of a violent crime was shot during a mugging in Tampa.
Certainly Tampa is not the only U.S. city where muggers occasionally shoot their victims?
“The whole town is sprinkled with pixie dust, right?”
Evil pixie dust. From the Evil Kingdom. That poor kid getting dragged under the stinking swamp waters by an alligator is an apt metaphor for the Orlando area. It kind of tells you everything you need to know.
When I left and came back here, I found a cheap rental, breathed a sigh of relief and discovered the HBB. This was at the end of 2005. If I recall correctly, one of my early posts was a rant about the Orlando area and some of the creepy experiences I had there.
Speaking of muggings, when I was living there, I was in one of the local shops in Sanford and the lady who ran it answered the phone at the shop and starts shouting “Oh my God, what happened? Are you OK?”, etc., etc. When she hung up, she announced to her patrons that a good friend of hers had just been mugged in broad daylight in downtown Orlando.
Even going to the grocery store I felt like I was taking my life in my hands. With a few exceptions, most of the people I met there were either hostile or crazy, sometimes both. It’s the only place I’ve ever lived where I was panhandled right on my front porch.
As far as I am concerned, Ken Lewis was being kind in his comments.
I remember visiting Disney with my family in 2001. My brother and dad ran to Walmart for some necessities and they both were stunned by the Middle Eastern population/turbans.
I hope Disney world tanks before I have kids so I don’t have to think of an excuse to skip that hell. Woohoo 100 degrees outside, $6 waters, and 2 hr lines
I dunno who y’are, but you make some great posts. And yer a young ‘un, right? How did you get red pilled?
Disney World bites the big one and anyone who would take their children there now should be locked up for child abuse. Even back in the 80s, when I went for the first and only time just to see what the fuss was all about, it creeped me out big time.
I am a concerned citizen “millennial” who works for a living and hates this BS. I found out about the HBB a couple months ago and was instantly a fan, and began to educate myself on housing, Robert Shiller, etc.
I dislike how dumb my peers are. Crying about debt, no jobs [liberal arts baristas], and having their parents pay their cell phone bill. My parents taught me how to pay the “iron price”, (Game of Thrones reference). My eyes were really opened upon moving to New England and seeing one of the largest housing farces on the face of the planet.
It’s always great when people like yourself breathe new life into the blog.
Lol, having been born in NY and raised in the mid-Atlantic and New England, and starting my working life in Boston, it took leaving the area to make me realize what a farce so much of it was, both economically and socially.
Thank you for your insights on the area.
I actually convinced one of my coworkers who rents in Boston to wait for the coming drop off. Do not buy this market I plead to him and broke out my case.
I grew up military, and traveled quite a bit for my job, so I have had exposure to different areas, Boston, the South, California, Seattle, Florida. Boston takes the cake. Families with a “Cape” house, a regular suburban house, and a condo in Fl all off single family income some how. Kids up here are so darn spoiled they have no idea that owning or only having 1 house is totally normal. I see houses being bought for $300,000, and immediately a 40 ft dumpster is in the driveway, new rook, new windows, new siding…Its CRAZY.
Yeah, the Florida economy is really great with all of those minimum wage tourism, health care and construction jobs.
I like the DMV better than Disneyland, no charge to wait in line with the misfits.
I wouldn’t mind living in Key Largo.
Haven’t been there in a while, but Key Largo used to be OK. Great fishing. One thing I can say, it won’t have much of a vagrant problem, because there’s no place for them to go other than mangrove swamp. They all continue on down to Key West for the good life.
The Greeley Tribune reports from Colorado. “Weld County housing prices hit another milestone in May as the median sales price for the county shot up over the $250,000 landmark. During the past two years, the median price for single-family homes has risen 50.5 percent, from $172,700 to $260,000. But as housing prices continue to climb across the Front Range, wages remain stagnant, posing the question of affordability for those who live in the area.
What I have heard through the grapevine is that Greeley’s growth is being driven by neighboring cities like Windsor, Loveland and Fort Collins, where average and median prices are much higher.
A quick google search for Ft. Collins found this little gem:
http://www.coloradoan.com/story/money/2015/05/17/rising-home-prices-put-strain-fort-collins-homebuyers/27480605/
Today, they both work full time and second jobs. Together they earn about $63,000 per year — just less than the city’s median household income of $63,500 for two.
After getting outbid on four homes within their price range, “we’re wondering if we can buy a house here,” Josh Taylor said. “We’re a little outgunned financially.”
People like them have been throwing in the towel and moving to nearby Greeley, while commuting to their jobs at the Fort. Of course now, Greeley is also becoming unaffordable. As the article above mentioned, just two years ago the median price in Greeley was 170K. Now it’s about 260K, still lower than Ft. Collins’ 320K, but for far too many people Greeley, which is an armpit of a town, is no longer affordable.
I glanced at the article. Never mind the house prices. thexreal story is that a college educated couple is making 63K. and that’s TWO people with two college degrees, working ~3 jobs total. WTF are they doing to be paid so little?
They need to give up the craft beer and artisan bread and head for Oil City.
As for them being “college grads” I’m gonna guess they both majored in something useless. You can get a decent job in Fort Collins, IF you were a STEM major. I’m gonna go out on a limb and guess that the couple in the article majored in something with the word “Studies” in its name and are probably working in menial jobs.
I don’t get the whole allure of Ft. Collins. Sure, Old Town is kind of hip, but unless you have some coin, those $7 beers in the cool pubs will leave you broke and fast. The rest of the town is either the University district or neighborhoods full of cookie cutter houses. Oh, I forgot! They have a Trader Joe’s too!
Another interesting quote from the article:
Nearly a third of Fort Collins residents earn less than $49,999 and about half earn less than $74,999, according to the American Community Survey’s five-year estimates.
That creates a disconnect between new homes being built and those who can qualify to buy them. Which in turn creates enormous demand for lower-priced homes.
This seems to be the story everywhere. It’s also happening in Loveland. Nothing but $300K+ being built, during the previous bubble, they built thousands of $200K houses here. They were smaller, usually 1500 sq ft ranches with a basement. Now it seems that the new “entry level house” is ~2200 sq ft and costs 60% more.
Yet wages have been in the tank here for years. All I ever hear at social gatherings is “yeah, I didn’t get a raise this year, again. Oh well, at least I haven’t been laid off. Did you about Joe? He got laid off and he had to accept a 15% pay cut at his new job, and he had to beat out 60 other applicants for it.”
2 sociology majors = 2 baristas.
…… and one massive moon crater filled with debt.
And 2 new cars, courtesy of 84 month loans.
Which represents greater losses to depreciation, a car or house?
Amen.
I’ve got a story about what happens when you “stretch” to buy a house. This is in NOVA. Female colleague at a former yob gets an inheritance. Uses it as a down on a $590K house in Reston.
Over the two years that she and her husband have owned it, she has become increasingly disconsolate.
She’s living a stress sandwich. Yob is a snake pit. Husband’s been out of the workforce - has maladies (legitimate) that are so overwhelming he will never return. The nut on the house is a millstone. Medicare is half a decade away.
I had gone over the Oil City plan multiple times. She went and bought the elephant anyway. She and huzzie could have left the area, bought a house or condo (whatever) for cash, and added five quality years to their lives. She COULD have gone to work PT at the Whole Paycheck or whatever.
But NOOOO. She’s stuck in a toxic yob with a sick huzzie and a huge nut.
I think she’s beginning to see the sense of living closer to the bone, though. The stress engine is not huzzie’s illness: it is being chained to an acidic hamster wheel to feed the mortgage.
Oil City is a mighty good alternative when you are caged into that scenario. (Shhh - my current yob is benign and I have calmly retired in place. There is no downside - I can go Oil City within months). I amiably continue to rent my behavior in exchange for filthy lucre for no more than eight hours a day.
My friend used to bring out a clove of garlic and a silver cross and place it in front of her when I used to try talking some sense into her. Now she has a wild and crazy look, a big nut, has acquired cats, and is willing to listen to heresy.
I’m still renting, waiting for the Big One. When I go Oil City, it’ll be cash on the half-shell, bay-bee!
Overpaying for an already overpriced house and commuting for it is a national RIGHT.
People buy $300,000 - 100 yr old homes deep in NH or Maine and commute alllllllll the way into Boston to earn $75,000-$100,000. Hours in traffic. Every. Single. Day.
Speaking of land prices, how is the Midwest farmland bubble holding up these days?
Commodities & Futures
Farmland Values Fall Sharply in Parts of the Midwest
Chicago Fed cites biggest drop since 1987
Corn planting in Princeton, Ill., last month.
Photo: Bloomberg News
By Jesse Newman
Updated May 12, 2016 4:30 p.m. ET
Real farmland values in parts of the Midwest fell at their fastest clip in almost 30 years during the first quarter, according to a regional Federal Reserve report on Thursday.
Falling crop prices have weighed on land values from Kansas to Indiana over the past two years as farm income declined and investors who had piled into the asset at the start of the decade retrenched.
Three regional Federal Reserve banks all reported year-over-year declines in farmland values in their districts and said the drops would continue, though their forecasts were based on surveys taken before the recent rally in corn and soybean prices.
The St. Louis Fed region that includes parts of the U.S. agricultural heartland in Illinois, Indiana and Missouri reported the steepest decline, with the average price of “quality” farmland falling 6.4% in the quarter, the biggest decline since its survey began in 2012.
The Chicago Fed said prices for similar land in its district fell 4% from a year ago, the seventh successive quarterly decline. Adjusted for inflation, prices in an area that includes parts of Illinois, Indiana, Iowa, Michigan and Wisconsin fell 5%, the biggest quarterly drop since 1987.
Declines in the Kansas City Fed’s district, which includes Kansas and Nebraska, were less pronounced, but the bank said prices for nonirrigated cropland fell 4% in the quarter.
Though some agricultural markets have rallied in recent weeks, prices for corn and wheat are still more than 50% lower than their 2012 peak, and the U.S. Department of Agriculture has projected that net U.S. farm income will fall this year to the lowest level in more than a decade.
…
My BIL owns land in rural Missouri which he has been holding onto for the appreciation. So far as I am aware, it’s undeveloped.
It looks like appreciation may have turned into depreciation before he managed to cash out his holdings.
But I thought that was Garden of Eden speculation? The land’s worth is not in the crop value.
Generally worthless items aren’t included in the value of something. Worthless dirt is no exception.
Without the mania, land is only worth what it produces.
Falling land prices, falling income and massive property tax hikes.
Where will this end?
——–
U.S. farmers fret as property taxes soar amid souring incomes
Reuters - June 7, 2016 - P.J. Huffstutter
Collapsing prices for U.S. corn and soybeans have made it harder for some farmers to pay their property taxes, at a time when these tax bills are soaring and the rate of farm bankruptcies is growing.
Over the past three years, farmland property taxes have jumped as much as 400 percent in parts of the United States, according to state and federal government data. One farmer in Ohio said his property tax bill has skyrocketed to more than $100 an acre from less than $20 seven years ago.
Now farm incomes are falling due to cooling export demand and plummeting grain prices. In the Midwest, Chapter 12 farm bankruptcy filings in the first quarter of 2016 soared 60 percent from the same period in 2013, according to court data. In the nation as a whole, Chapter 12 filings are up 18 percent over the same period.
“I hear a lot of, ‘It’s your fault for not saving enough,’” said Aleta Crowe, whose family farms about 2,500 acres of grain crops in southwestern Indiana. “If your property taxes doubled or tripled, would you have thought a few years ago to save money for taxes?”
“You look at the taxes and you think, ‘Holy cow, we can’t buy that farm’,” said Chief Executive Officer Paul Pittman. “We would be doing more deals in Nebraska if the property taxes weren’t so high and unpredictable.”
Well yeah, you have to tax some of the only ‘producers’ left in the whole country. If we don’t build anything, the last baston of America is growing stuff. Tax em into prosperity!
So the price/value of poorly-constructed stucco shacks is skyrocketing, but the price/value of land used to grow the food we all need is dropping?
Could a change in a candidate’s campaign manager signify a failing campaign? (Just a hypothetical… I can’t remember this ever happening within a few months of a Presidential election.)
Nor a book coming out saying a candidate and her husband are potty mouth racists.
The Cleveland Cavs changed coaches halfway through the season. NBA champs.
Bottom line, if the campaign improves, the right move was made. If it doesn’t, then the wrong guy was let go. It happens all the time. I don’t see Mannafort as the type of guy who can organize a rally or volunteers on the ground. We’ll see.
Doesn’t matter who the crew is… if the boss just pops off with whatever random thought he thinks the people in front of him want to hear, trouble is gonna snowball.
‘As more properties come on the market, buyers will have more options and won’t be forced to make aggressive offers’
I hope those recent buyers didn’t pay too much. How long til we hear UHS decry the low-ball offers and insulting sellers? We may have already leap over that phase in Naples. The local media is sure doing its best to massage the situation.
How long til we hear UHS decry the low-ball offers and insulting sellers?
Driving past a property this morning on the way to work, I briefly got an urge to put in a low-ball offer. This house is back on the market after falling out of escrow once, with no sign of another offer in several months, IIRC—it’s tagged as a short-sale, so maybe it’s getting to be time to start making some insulting offers? The seller’s shouldn’t really care, and I like the idea of insulting the lender…
‘Merika.
She’s got tattoos and an ankle monitor, and though you can’t tell from this angle, she is pregnant. Happy fathers day, wherever he may be…
http://www.picpaste.com/20160620_081411.jpg
You should man up and make that unique and awesome snowflake and her bun in the oven (are you sure she isn’t just fat?) yours.
Wow. Just wow.
In addition to his comments on Orlando, here’s Ken Lewis’ Mother Day greeting that got him in trouble the first time around and forced the Florida Justice Dept to institute a social media policy.
“Happy Mother’s Day to all the crack hoes out there. It’ never too late to turn it around, tie your tubes, clean up your life and make difference to someone out there that deserves a better mother.”
LMAO! Is that real?!
Your 5% cd yields arent coming back for a long @ss time my friends.
Do any of you people find these FED meetings as pure entertainment anymore?
How many more years can they say they are gonna raise rates and have the media duping everyone that it might happen?
Its like the stock market hinges on every FED meeting. Now they are gonna constantly talk about another rate hike until the next meeting and keep u mesmerized. Its the same old sh@t over and over again.
All these values seem real bogus.
As long as rates are low , corporations can keep borrowing and giving themselves big @ss paydays.
I love all the hype leading up to it “hike on the table? yes, no, probably 3?”…then the Fed states ina nice way the economy is stagnant and/or retracting using ambiguous terms.
it sure is comical isnt it? The media plays along with the bs.
The financial markets are a total casino.
‘U.S. commercial real estate prices may fall as much as 5 percent in the next 12 months amid tightened regulations, a wall of debt maturities and property sales by publicly traded landlords, Pacific Investment Management Co. said in a report Monday.’
‘A global surge in demand for U.S. property investments that pushed real estate values to records may wane as slowing growth in China, lower oil prices and dislocated debt markets threaten to halt six years of price growth, Pimco portfolio managers John Murray and Anthony Clarke said in their report, titled “U.S. Real Estate: A Storm Is Brewing.”
‘Signs of a cooling real estate market have emerged across the country since the start of the year. Commercial-property values in big U.S. cities, which have seen the largest increases during the recent boom, have declined 3 percent in the past three months, Moody’s Investors Service and Real Capital Analytics Inc. said in a June 6 report. Real estate transactions in New York, the biggest U.S. property market, are forecast to decline by as much as 30 percent this year, brokerage Cushman & Wakefield said in April.’
‘Turmoil in the market for commercial mortgage-backed securities has led to higher borrowing costs for landlords, inhibiting future price growth, Pimco said. This is especially true for properties in smaller cities that are more reliant on Wall Street banks for funding.’
‘The tumult in CMBS is due in part to regulations such as Dodd-Frank that make it more expensive for banks to hold securities, according to the report. For example, Wall Street dealers were unable to provide liquidity when hedge funds were forced to sell CMBS holdings amid a global market rout in February, sending prices for the debt plummeting, Pimco said.’
The selloff “highlighted an increasingly important headwind” to commercial real estate from the debt market and had little to do with property fundamentals, Murray and Clarke said.’
‘The future is uncertain for foreign investors, who poured cash into U.S. commercial real estate as the dollar appreciated and overseas economies wobbled, according to the report.’
Way ahead of ya’ Pimco.
‘higher borrowing costs for landlords…sending prices for the debt plummeting’
Looks like interest rates are going up.
tumult in CMBS is due in part to regulations such as Dodd-Frank ??
Dodd-Frank is horrible legislation….
Dodd-Frank financial reform: 14,000 pages of regulations and they’re just getting started…
https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=10&cad=rja&uact=8&ved=0ahUKEwivn_S76bbNAhVQ7mMKHcT1C1cQFghGMAk&url=http%3A%2F%2Fwww.americanthinker.com%2Fblog%2F2013%2F07%2Fdodd-frank_financial_reform_14000_pages_of_regulations_and_theyre_just_getting_started.html&usg=AFQjCNGvEOqlA3evXlfmllD323NRMymZXA&sig2=lCIY-E2qVynnoXbmGKEo0g
why won’t biz grow?
ACA
dodd frank
sarbox
no relief coming
I’ve listened to these apartment guys talk. They go on about their 3 or 5 year, sub-3% adjustable rate loans. Some use interest only, cash-out refinancing over and over. “It’s tax free”, and it is. What happens when they go to refinance and the lender says, “we’re only going to do 75% this time, and the rate has doubled”. “You mean I have to come up with 25% of a 300 unit apartment complex? At 5%, it doesn’t cash flow!”
Not just that, but a move in cap rates from 4% to 5% is a 25% decrease in value. Even if you started with 25% down, you’re wiped out.
A move from 5% to 6% is a 20% decrease in value–near wipeout with 25% down.
And 5% and 6% are still pretty low yields (high prices)–such cap rate moves are not outlandish.
What happens when they go to refinance and the lender says, “we’re only going to do 75% this time, and the rate has doubled” ??
For many, TSHTF….
TS already hit the fan the day they paid a massively inflated price for a rapidly depreciating asset. In this case, an apartment building.
Don’t forget the Govt dictating what businesses are supposed to pay their employees.
“What do they expect me to write, a 100,000-page bill? This is far beyond the capacity, the expertise, the knowledge of a Congress” to detail every new regulation, he said.
He = Chris Dodd
Truer words were never spoken. Congress did not have the expertise or knowledge to create something like Dodd-Frank. What was not said was that no set of regulations should be 100,000 pages.
They turned “too big to fail” into “too small to succeed”.
They created a monstrously complex behemoth to make it look like they were doing something, while assiduously avoiding changing the core cause of the crisis, which was lenders being able to totally shed repayment risk, with de facto government insurance (for the big playes) of the whole house of cards.
Complexity breeds loopholes.
In the runup to 2008, the quants would hide their shenanigans behind pages of abstruse equations, and questions would yield, ‘You’re not smart enough to understand this stuff.’ If Stephen Hawking can explain the universe succinctly, if on a high level, surely the quants should have been able to do the same. The problem is, had they succinctly explained themselves, the fraud would have been exposed.
“what you see is a population that’s just so gullible it has no chance of protecting it’s liberty”
Paul Craig Roberts
6/19/16
Sounds about right.
And by this time next year myself and anyone else who donated money to Ron Paul will be sent to the reeducation camps.
A family member keeps telling me to get the RP 2008 and 2012 bumper stickers off one of the cars.
The RP supporters will become the Proles. Everyone else gets to be brainwashed and work for the various Ministries. The fortunate will become Thought Policeman.
Stupid people just get themselves in trouble with freedom. They instinctively seek someone to tell them what to do.
since 2012
farmland falling 6.4% in the quarter, the biggest decline since its survey began in 2012.
Farmland Partners Inc. (FPI) has been in down trend for years now…
Oh please Orlando Florida is the pits??? Spend a few days in St. Louis Missouri:
Woman slain in downtown St. Louis carjacking; baby girl thrown out of car
http://www.stltoday.com/news/local/crime-and-courts/woman-slain-in-downtown-st-louis-carjacking-baby-girl-thrown/article_bcaf0742-94b5-5199-9b03-48a40aec4934.html
There is also the occasional gun battle from persons in cars shooting at each other while driving on the highway DURING THE DAY at speeds reaching 100mph The locals call that section of highway 70 the Bermuda Triangle. Go ahead google Highway 70 St. Louis and the Bermuda exit to get a feel of the hood.
LOL, what, you want to get into an argument over which place is worse?
The same stuff happens in Orlando, and let’s not forget that Sanford, one of its ‘burbs, hosted the George Zimmerman-Trayvon Martin debacle, which was the seminal moment for Black Lives Matter, which took Ferguson apart.
I hear ya on St. Louis, brah. Orlando is Florida’s St. Louis.
‘People are getting what I call ‘auction fever,’ Ramstack said. ‘They’ve got to get it, and they overbid.’”
No Ramstack, it’s called “Sucker Fever”. There’s one born every minute but it’s times like these when they all show up at once.
Orlando, FL Affordability Improves As Housing Prices Crater 5% YoY
http://www.movoto.com/orlando-fl/market-trends/
Ha-ha, it’s not just housing prices cratering in Orlando, the whole city and surrounding area is a crater, a stinking pit with a gaping maw. Don’t go anywhere near it, it will drag you in.
Speaking of Orlando:
http://www.zerohedge.com/news/2016-06-20/fbi-releases-censored-orlando-911-call-transcripts
ZH has replaced the censored references to ISIS with the term “Hello Kitty”. I about killed myself laughing. I know it’s not supposed to be funny, but Washington and the media has sunk to the depths of insane ridiculousness.
Orlando: Hello, Kitty!
Ministry of Truth. Alter perception. War is Peace. Goldstein yelling time.
Does this apply to other areas of the U.S. also & does that 30% drop this year apply to non-commercial real estate as well…hmmmm, how about Palm Beach County?
“Moody’s Investors Service and Real Capital Analytics Inc. said in a June 6 report. Real estate transactions in New York, the biggest U.S. property market, are forecast to decline by as much as 30 percent this year, brokerage Cushman & Wakefield said in April.’
With housing prices 250% higher than long term trend and double construction cost, what is your opinion?
And why is the construction cost higher these days? I usually only see 1 American supervisor on site and lots of Espanol. Oh and cash for the days wages…
Construction costs are falling and have been.
So are the builders of these paper thin, crap quality multifamily complexes just banking massive profits?
They all depreciate…. rapidly.
Lou: Actually, that article on commercial property in New York said a 30% drop THIS year. So, I’m guessing that we don’t see that in residential property in Palm Beach County. But, I can dream!
Any other guesses?
Why wouldn’t it? Prices are massively inflated over long term trend and double construction costs irrespective of location.
Hacienda Heights, CA Affordability Balloons As Housing Prices Tumble 10% YoY
http://www.zillow.com/hacienda-heights-ca/home-values/
Whew! Supposed to be 106 today in Irvine today. Was thinking about bringing a small fan to my office. She’s a midget who likes my books and music….
Stock market going swell because Brexit is postponed for now.
You know it’s going to happen.
Other interests: Germany bad mouthing the imperialist Nato saber rattling. Maybe the global nuclear clock has been set back by 30 seconds.
https://www.youtube.com/watch?v=IZs2i3Bpxx4
“China’s Millionaire Migration” from Dateline
Wonder where those girls will be in 10 years or so?
Chilling.
US Housing Demand Plummets To 20 Year Low
http://1.bp.blogspot.com/-0q8fIAsczFk/VUANHEhSbnI/AAAAAAAAjRs/oANwXOUviGw/s1600/MBAApr292015.PNG
The S&P is setting up for a big 2017 rally — once this market correction is over
By Avi Gilburt
Published: June 20, 2016 12:02 p.m. ET
Charts show the S&P’s ideal path is lower over the summer
http://www.marketwatch.com/story/the-sp-is-setting-up-for-a-big-2017-rally-once-this-market-correction-is-over-2016-06-20
M/W also pushes the housing market narrative. Median prices up up and away! Solid demand for Month XYZ. New home construction at an all time high, etc etc.
Update: Crude Oil Craters 24% YoY On Plummeting Global Demand
http://www.marketwatch.com/investing/future/crude%20oil%20-%20electronic
I want $1.80 gas again from a couple months ago.
$1.80 is inflated far far above profitability.
Land of the free? Trump mulls Israel-like ‘profiling of Muslims’
Republican presidential candidate Donald Trump believes that the US should take a page from Israel’s playbook and encourage law enforcement to keep a closer eye on Muslims.
The outspoken Republican has previously advocated barring Muslims from coming into the US and, in the wake of the mass shooting in Orlando carried out by gunman Omar Mateen, who had pledged allegiance to Islamic State, he now thinks profiling is a “common sense” tactic.
Speaking on CBS Face the Nation about how the Orlando killings might have been prevented, Trump talked up checking on mosques “respectfully” as a way of tackling radical Islam.
The perpetrator of the worst mass killing in US history was a New York born Muslim. When asked what kind of policy could have prevented Mateen’s rampage, Trump suggested “looking seriously” at profiling.
“I think profiling is something that we’re going to have to start thinking about as a country,” he said.
“You look at Israel and you look at others, and they do it and they do it successfully. And you know, I hate the concept of profiling, but we have to start using common sense,” he said.
https://www.rt.com/usa/347410-trump-israel-profiling-muslims/
Hello, Kitty!
I was thinking of you when I saw the mention of Israel. Your reaction is odd.
It’s a fast moving news day, keep up and the reaction won’t seem odd.
Israel was wicked just the other day. Everything changed today.
I don’t think I mentioned Israel today. Unless you think “Hello Kitty” is code for Israel, lol.
As to the other day, as I mentioned in my post, it was the congresscritter’s staffer who brought Israel up. Out of left field. I merely related the incident.
What is this obsession with Israel, anyway?
Oh, I get it, you must’ve misread the post on Hello, Kitty. It’s code for ISIS, which is not to be confused with Israel, even though they both start with the letters I and S.
Which brings me to the old Bill Clinton joke about the definition of “Is”.
Just one space difference between “is is” and “ISIS”. Not only that, in the language of our wet backed rapefiends, ISIS spelled backward is “Si Si!” Which is “yes yes!”
Coincidence? I think not.
No, I ignored the nonsense about the kitty. My point was that you have no objections to Trump saying that we should follow Israel’s example, while just the other day you were ranting and raving about a congressional staff person mentioning Israel. I have no obsession with Israel. It you and Trump.
Remember when rights advocates cried foul when AZ suggested police be allowed to profile on traffic stops? “Hmm this guy looks Mexican, doesn’t have valid id, and doesn’t speak English” - Bigot assumptions.
I profile snakes. If it looks like a rattler, I pretty much assume it’s venomous.
Is that wrong?
It’s wrong to make no ethical distinction between how snakes are treated and how humans are treated.
And is driving drunk wearing a La Raza shirt…
Young mothers who don’t arrange play dates for their young children in red-light districts. - Bigot assumptions.
I missed it.When did CRE not sck?
https://www.yahoo.com/?fr=yset_ie_syc_oracle&type=orcl_hpset
going to sck worse-er
Jupiter, FL Affordability Surges As Housing Prices Plunge 6% YoY
http://www.zillow.com/jupiter-fl/home-values/
Probably because on the way to Jupiter beach you drive through super ghetto hoods with $50,000 homes with a Crown Vic or Malibu out front sitting on 24’s.
Harry S Dent
@HarryDentjr
More Kids Now Living At Home Since The Great Depression @economymarkets http://j.mp/28ILgQa
CONTRA CLUB, LANCE ROBERTS
A Rudimentary Theory Of Bubbles
by Lance Roberts • June 20, 2016
http://davidstockmanscontracorner.com/a-rudimentary-theory-of-bubbles/?utm_source=ReviveOldPost&utm_medium=social&utm_campaign=ReviveOldPost
Supposed to get up to 110F in my part of Las Vegas today.
This morning, I noticed it was getting warm in the ol’ apartment. I had headphones on up to that point so didn’t notice that the blower in the AC system wasn’t operating. The unit on the patio was operating but I wasn’t getting any of the precious cool air blown into my place.
So I called the office and left for an appointment. By the time I got back, everything was operating and my apartment was almost back down to 78F. No bill to pay. Ah, the perks of renting…
But you can’t paint the walls any color you want.
EPIC FAIL.
LOL!
Dont forget the oven mitts for the steering wheel this week.
Arlington, VA Affordability Improves As Housing Prices Dive 6% YoY
http://www.zillow.com/arlington-va/home-values/
‘A common question among CMBS investors is whether multifamily properties are past their peak, to which Fitch says not yet. Even though they are decelerating, multifamily operating fundamentals remain amongst the best in commercial real estate. Millennials are now the largest segment of the US population, which should be a plus for multifamily CMBS with many millennials likely to opt for renting apartments before buying homes.’
‘That said, markets like Seattle, Washington D.C. and Austin may be susceptible to declines due to additional supply coming online in the near term while supply is causing growth in New York and San Francisco to slow. Oil-rich markets like parts of North Dakota and Texas are also areas of concern. Overall, rent growth is slowing and vacancies are slowly increasing.’
So Fitch missed Denver. Why am I not surprised?
First you will have to pry the millenials out of their parents’ homes.
The ‘millenial’ narrative is just that. A narrative.
Fitch: Oil Industry Exposure, Student Housing Spell Trouble for CMBS
have u guys been seeing more of the ” real estate investor seeks apprentice” signs around town?
Seems like all those get rich quick scammers are back.
Yes the real estate investor seeks apprentice and will buy homes for cash signs are everywhere in Central NC. I saw a lot of the same thing while in nchicago this weekend.
Vin Scully Has Strong Feelings About Socialism - YouTube
http://www.youtube.com/watch?v=XvSew6pkYSM - 244k - Cached - Similar pages
2 days ago .
Has socialism really ever been tried?
or is it like our version of capitalism, with corruption and cronies stealing.
people are the worst!
lol@lola
Vin Scully rarely gets political when broadcasting a baseball game. The legendary voice of the Dodgers decided to talk briefly about socialism Friday night and he doesn’t care for it in the least.
“Socialism failing to work as it always does,” Scully said. “This time in Venezuela. “You talk about giving everybody something free and all of the sudden there’s no food to eat.”
Scully continued.
“And who do you think is the richest person in Venezuela? The daughter of Hugo Chávez. Hello.”
Don’t Blame Socialism For Collapse In Venezuela, Blame Its Dictator.
The point is that the United States is not Venezuela, Bernie Sanders is not Nicolás Maduro and democratic socialism is not Chavism. Simply because Venezuela’s government labels itself “socialist” does not mean that the government actually follows the true principles of socialism. Does calling an elephant a giraffe turn the elephant into a giraffe? Of course it doesn’t, and simply calling a dictator a socialist does not a socialist make.
He’s wrong, which is no surprise.
https://en.wikipedia.org/wiki/List_of_Venezuelans_by_net_worth
It’s always cronies, at the end of the day.
All those Zika babies will make the perfect lifetime Democrat dependency voters. Forward!
http://hosted.ap.org/dynamic/stories/U/UN_UNITED_NATIONS_ZIKA?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2016-06-20-15-21-31
“Wall Street has an unambiguous message for Hillary Clinton: Don’t pick Elizabeth Warren as your vice president if you want to keep getting our money.”
The world would be immeasurably improved if we could take every Realtor and flush them down a toilet.
If you observe a realtor in your neighborhood, go inside, lock your doors and call the authorities immediately.
Tough call, where to spend all that saved money from renting?
http://fresno.craigslist.org/tls/5637272009.html
http://fresno.craigslist.org/cto/5640531185.html
both are red
Get the Mustang!
Isn’t that a low price for a vintage Mustang?
Seems awfully cheap for a ‘67 Mustang… Think it’s hot?
How long is yellen going to force you to buy sh@TTY stock so you can chase yield and have the illusion you can retire someday?
I feel at some point the rug will be pulled out from under people again and they will be broke again . Someone has to pay for this party.
Fremont(Seattle), WA Affordability Surges As Housing Prices Crater 7% YoY
http://www.zillow.com/fremont-seattle-wa/home-values/
A look at 1 vacant home of the 13,000 in Las Vegas
http://www.reviewjournal.com/business/economy/look-1-vacant-home-the-13000-las-vegas
The two-story home at 5450 Nickel Creek Trail near Sam Boyd Stadium is in many ways reflective of Las Vegas’ housing boom and bust.
The three-bedroom, 2½-bath home was brand-new and came with a package of appliances when Felipe Delgado and his children made it their home in November 2006.
Ten years later, the tan home in a gated community stands empty. It has spent most of its existence without someone living in it.
Shortly after moving in, Delgado said the value of his property started declining. He also had an adjustable-rate mortgage and an investment property, a fourplex, he said.
“It was really not a good situation,” Delgado said.
He chose to walk away from both properties, but did not file for bankruptcy based on a lawyer’s advice.
Records show the original price was $217,320. A year after the original sale, the Federal Home Loan Mortgage Co. (Freddie Mac) was named as the foreclosing beneficiary on the deed and sold it about six months later, in April 2008, to Christopher Mitchell and his wife for $144,900. The couple secured a 30-year fixed mortgage from Bank of America at 6 percent interest.
The Mitchells, first-time homeowners, ripped up the carpet and put in hardwood floors. But they didn’t stay for long before deciding to move again.
Mitchell said during that time, police would knock on his door about once a week looking for a missing person or a person of interest. He said he was concerned because his wife was pregnant. They were also going to need a bigger house, he said.
A real estate agent had completed a short sale for his parents, so he asked her to do the same. The agent said it would be easy. So the couple moved out, not knowing the house would sit vacant for several years without a buyer. The house was never rented because the homeowners association prohibits it.
The short sale was stopped and foreclosure began in 2014. Somewhere along the line, the mortgage was sold to Tampa, Florida-based Ditech Financial. As of April, Ditech Financial held the deed to the house. Calls to the company about what they plan to do with the property were not returned.
“I definitely learned a lot through that process,” Mitchell said of his first home.
The Mitchells, and the original owner, Delgado, still reside in the Las Vegas Valley. But today, they are renters.
Both former owners said they would like to again own a home — a few years from now.
In the meantime, the house along with two neighboring properties with boarded-up first-floor windows show that the gated community hasn’t quite recovered yet from the foreclosure crisis.
As of this year’s second quarter, about 400 residential properties in the ZIP code 89122 were vacant, according to RealtyTrac, California-based real estate information firm. In the Las Vegas metro area, RealtyTrac says there are 13,850 vacant residential properties.
And there are millions of them across the country.
“Pimco: There Is A Storm Brewing In The Real Estate Market”
http://www.businessinsider.com/pimco-says-theres-a-storm-brewing-in-us-real-estate-2016-6
Cratering REIT’s, cratering housing.
I am welcoming it. If VGSIX tumbles 50% I will increase my monthly purchases 50%.
VGSIX
It lost more than half in 2009. Quite a chart.
https://www.reddit.com/r/lostgeneration/comments/4ouxrn/i_go_to_bed_in_tears_lower_mainland_renter_rage/