For Almost Five Years We Were On An Upward Spiral
It’s Friday desk clearing time for this blogger. “Shares of apartment landlord Equity Residential fell the most since March after the company cut its revenue forecast for the third time this year, citing greater weakness than it anticipated in the Manhattan and San Francisco rental markets. Equity Residential is among landlords having to work harder to lure tenants in the high-cost markets of Manhattan and San Francisco as an apartment-construction surge gives residents more bargaining power and limits how much owners can raise rates.”
“AvalonBay gave renters lease-signing concessions worth $300,000 in the second quarter, four times more than in the same period a year earlier, Chief Operating Officer Sean Breslin said on the company’s earnings call. ‘Markets do reset from time to time, either due to new supply or changes on the demand side of the equation,’ Equity Residential CEO David J. Neithercut said on a conference call. ‘Unfortunately at the present time, we’re experiencing both factors in two of our most important markets.’”
“Slower sales and a glut of inventory has led to a buyers’ market for South Florida luxury properties, according to Miami Beach real estate agent Jill Eber. ‘For almost five years we were just on an upward spiral,’ Eber, of Coldwell Banker’s the Jills, told a gathering of real estate professionals. ‘But, right now, it has adjusted and it has become more of a buyers’ market.’”
“There are hundreds of unsold luxury homes priced above $500,000 in the Flagstaff area but just 36 priced below the median sales price inside the city limits. The median sales price for a home in the Flagstaff area in June was about $334,000, Century 21 Flagstaff realtor Stephen Brighton said. That price represents a 9 percent dip in the median price from May, which was $368,000. Brighton said in an email that those million-dollar home owners may be overly enthusiastic about the housing market.”
“Brighton said that so far this year, nine homes in the area have sold for $1 million or more. Last year, 20 homes sold for $1 million or more. ‘It’s a pretty safe bet that we’ll see a fair amount of price reductions from impatient, motivated sellers that don’t want to sit through winter and then have to revisit the selling season in 2017,’ he said.”
“Hamptons home sales cooled in the second quarter compared to the same period last year, according to reports released this week. Town & Country Real Estate noted ’significant drops’ not only in the number of sales but also in dollar volume and median price in most of the 12 hamlets and villages it covers on both East End forks. ‘I think the glaring trend is, there were declines in markets that are normally strongholds, such as the estate sections of Southampton, East Hampton and Water Mill,’ which includes Sagaponack and Bridgehampton, said Judi Desiderio, the CEO of Town & Country. ‘The crown jewels got a little dusty this year.’”
“Economic research head Wan Suhaimie Wan Mohd Saidie said Budget 2017 will still be very ‘rakyat-centric’ for the property segment with goodies to be given out under government housing schemes. ‘If we are lucky, (there would be) additional subsidies for government affordable housing. We do expect Bantuan Rakyat 1Malaysia (1Malaysia People’s Aid) to be given out as well.’”
“The cut in the overnight policy rate by 25 basis points and ever further cuts are unlikely to spur lending to the sector, he noted. ‘We think adjustments to the 70% loan-to-value cap (LTV) on third home purchases is also unlikely as those who are buying third homes are investors/speculators rather than genuine home buyers, so increasing the LTV may send the wrong message to the rakyat. Fiscal measure-wise, lowering or removing the real property gains tax will be detrimental for the property market as it may cause a panic sell which further exacerbates the oversupply situation.’”
“Kyrgyzstan and other Central Asian countries are constantly trying to attract foreign investment, which is very important for the local economies and one of the most important answers to persistent economic stagnation. Over the first three months of 2016 Kyrgyzstan’s gross domestic product dropped by 4 per cent to the amount of 78.8 billion som, while its industrial output lost a staggering 24.3 per cent on-year.”
“The basic explanation is rather simple: the Kyrgyz nation is spending more than twice the amount that it earns. The number of lavish mansions and luxury estates mostly around Bishkek but also in other parts of the country is mushrooming. So is the construction of luxury housing in the capital most of which stand all but empty. The reason is quite simple — Kyrgyz do not have any other place to hide their cash if not to build apartments and develop real estate.”
“Thousands of house sales across London have collapsed since the Brexit vote as alarmed buyers scramble to pull out of ‘overpriced’ deals, the Standard has learned. Agents said increasing numbers of ‘desperate vendors’ are prepared to accept previously unthinkable price cuts. Matthew Wright of the Marylebone and Mayfair branch of estate agents Winkworth said: ‘There are definitely people more eager to sell than previously who have instructed us to take quite substantial discounts. The rule of thumb is that people are offering 10 per cent below, but we have had offers at 50 per cent below and plenty at 20 to 25 per cent.’”
“With economic worry rife in Alaska, the annual three-year outlook luncheon hosted by the Anchorage Economic Development Corp. was a popular affair. AEDC President and CEO Bill Popp didn’t shirk from delivering some unpleasant news to the business community: 27 years of steady economic growth in the city came to an end in 2015.”
“Many in the audience lived through the disastrous recession of the 1980s, when at least a dozen banks failed and thousands of homes went into foreclosure. Popp emphasized that housing prices, while lower, have not dropped dramatically and it’s primarily sellers of pricier homes who are seeing values fall and days on the market exceeding a year or more. In terms of inventory, the Anchorage housing market is starting to look as it did during the Great Recession of the late 2000s, but not the crisis levels of the mid-1980s.”
“Popp echoed the opinion of realtors who note buyers now have more choices as a period of tightness in Anchorage’s housing market appears to have ended. ‘Housing is coming off of a four-year sellers’ market,’ Popp said.”
“It’s still not clear what will cool this smokin’ hot housing market and these unsustainable prices. Will it be an easing, a plunge, a bursting or what? Crib regularly tells you readers that as Amazon goes, so go housing prices here. One friend who’s pretty good with these things said it appears Amazon has effectively accomplished it’s build-out and is now ready for the transition to cash-cow. That friend thinks one big question is when does Amazon start hiring people in other places instead of continuing to concentrate on South Lake Union. If Amazon does that, that would be an easing.”
“The next force at play is just natural capitalist economic flow. Nationally and locally we are attempting to grapple with the widening gap between uber-rich and the poor, with a shrinking middle class in between. That’s a bubble itself that will burst. It has advanced like a bad cancer into the unhealthy range. We see it here in these unsustainable housing prices. We closed recently on a sale for a younger couple with two kids who had to look in Renton to find a home to buy. They said the other day that every one of their friends have migrated out of Seattle. Same with the older couple of teachers who migrated to Tacoma in search of a home.”
“Forces like that ebb and flow. They build then push over their banks. People can only commute so far in such mind-bending traffic. Light rail will be painstakingly slow in making that commute more palatable. Ten and 15 percent annual increases in housing prices can’t be, and aren’t, matched — as housing prices must be — with income gains.”
‘Finance Minister Moshe Kahlon took the unexpected step of declaring that the real estate market is in a bubble, and that it will burst.’
“There’s a bubble here. There’s a bubble, and the more I get into it and the more we work on it, we are identifying it. A bubble that was inflated by contractors, inflated by developers, inflated by banks, and a bubble that will burst in the end,” Kahlon said in a Channel 10 interview.’
‘Kahlon wouldn’t be the first to say that Israel’s real estate prices could be characterized as a bubble. The Bank of Israel regularly warns that one of the main threats to Israel’s financial stability come from its housing market, and in 2014, an IMF report found that home prices were about 25 percent higher than their fundamental value justified.’
‘Rather, it was Kahlon’s use of the term “burst” that was unusual. Asset bubbles, in which prices become significantly overvalued, can either deflate, coming down slowly toward their fundamental value, or burst, creating a sudden shock.’
‘Yet Kahlon insisted on the terminology, saying repeatedly that the bubble would burst and that investors would “jump from the roofs,” though he tried to walk back the imagery somewhat, saying they would be low roofs.’
“I think this bubble will burst, and I can’t tell you how much, but there’s no reason in the world. There’s no shortage of apartments. Today, today as I sit here with you, there are 30,000 apartments in contractor inventory that still haven’t been sold. The investors stopped buying,” he said.’
“There’s a bubble here. There’s a bubble, and the more I get into it and the more we work on it, we are identifying it.”
It’s a bird, it’s a plane, IT’S A SUPER BUBBLE!
The world is in one giant, artificially low interest rate induced, CREDIT SUPER BUBBLE.
‘Aberdein Considine senior property partner Bob Fraser said the North-east was now a house-buyers’ market. He said: “Clearly, the market in the North-east is tougher than it has been at any point in the past decade.’
“However, the region has benefited from a property price boom over that period at a time when the rest of Scotland was suffering from the recession. It’s now a buyers’ market in Aberdeen and Aberdeenshire – offering opportunities to first-time buyers and those looking to move up the property ladder.”
‘An arrest has been made in a local major real estate and mortgage fraud crime ring. Mark Franklin Broeg was arrested Wednesday after being indicted by a Deschutes County grand jury on numerous felony charges related to both mortgage and rental fraud schemes.’
‘Broeg faces seven felony counts including Racketeering, Mortgage Fraud, and other theft related charges. A co-defendant in the case is Michelle Marie Anderson. Anderson is a licensed realtor with Artisan Realty Group, LLC in Sisters, Oregon.’
‘The investigation uncovered an ongoing mortgage fraud scheme, implemented by Mr. Broeg. According to State investigators, Mr. Broeg created a fictitious business, McCoy Capital, which he used in an attempt to obtain fraudulent loans and illegal commissions, while posing as a mortgage broker. These illegal business activities included attempts to fraudulently purchase both residential and development properties here in Deschutes County, valued in total over $5 million dollars.’
‘Co-defendant, Ms. Anderson is alleged to have obtained the assistance of Mr. Broeg in one transaction, in which she attempted to complete a fraudulent home purchase. In addition, Ms. Anderson is alleged to have been involved in her own ongoing rental scam, defrauding landlords in Sisters of thousands of dollars over the course of 2015.’
And for this one indictment, how many scammers are there that haven’t been indicted? It’s like playing whac-a-mole.
These people are small potatoes, and not too smart to boot.
Yellen the Felon and her gang of counterfeiters and racketeers remain at large.
Guy reminds me of Mickey Rourke. Hehe.
“Two charged in Deschutes County real estate, mortgage fraud scheme”
http://www.ktvz.com/news/two-charged-in-deschutes-county-real-estate-mortgage-scheme/40920656
Seattle Times, 1992
May as well do what you’re good at.
Mark Franklin Broeg, 35, pleaded guilty in U.S. District Court in Tacoma to conspiracy, securities fraud and mail fraud in connection with the two-year scheme, in which investors purchased high-interest promissory notes secured by deeds of trust on properties in Vancouver and Portland.
From now on, I’m googling anybody I do business with.
Looks like Broeg has learned well… always “bait-the-trap” with a split-tail.
The Census Bureau, which has been tracking homeownership rates in its data series going back to 1965 on a non-seasonally adjusted basis, just reported that in the second quarter 2016, the homeownership rate dropped to 62.9%, the lowest point on record.
It matches the low point in Q1 and Q2 of 1965 when the data series began. At no time in between did it ever fall this low. And it was down half a percentage point from 63.4% a year ago.
http://wolfstreet.com/2016/07/28/american-dream-homeownership-rate-record-low/
One of the commenters on that Wolf Street article quotes house prices in Euros and goes by the name “nhz.” Didn’t he used to post here?
I think that’s him. He hasn’t been here in a long time.
like a bad cancer into the unhealthy range
The American “economy” of 2016, LOLZ.
It’s a ZeroHedge article, go back to the Washington Post if you don’t like it:
“The non-thinking tattooed masses are unaware and apathetic, as their inability to think critically has left them trapped in the “all is well” paradigm peddled by their government keepers and their corporate fascist benefactors. But a growing minority of critical thinking individuals recognizes the desperate attempts of the elite establishment to cover-up the systematic breakdown of our degraded systems of commerce and finance. The alternative media proliferating on the internet is providing rational, fact based analysis of our true situation. That is why the establishment wants to lock down and control the internet.”
http://www.zerohedge.com/news/2016-07-28/worlds-made-hand-survival-fittest-will-replace-checking-facebook
That was an interesting article. I’m not a Kunstler fan, though. Maybe I would be if I read his books and not his editorials.
He is hostile to Southerners and has a tendency to caricature some aspects of Southern culture. Other than that, his books, both fiction and non-fiction, are an entertaining read. I just finished “A History of the Future,” and “The Long Emergency” very much shaped my own thinking.
Best of all, the steerers have no traction on the hbb.
Crater.
More ZeroHedge with lots of charts and graphs revealing the lie:
http://www.zerohedge.com/news/2016-07-28/why-mainstreet-isnt-buying-obamas-economic-story
Washington Post, New York Times, Huffington Post, CNN, NPR are so desparate to control the narrative.
And Facebook, Twitter, Google, Reddit are actively censoring any denial of the narrative.
“This sucker could go down” — George W. Bush
“And Facebook, Twitter, Google, Reddit are actively censoring any denial of the narrative.”
Yep. And at the same time, a lot of otherwise well meaning young folks are all in a tizzy over it. Upvotes! Downvotes! Algorithms! That’s what matters. Jeebus.
Take your pick: Disease, famine, nuked cities, population bomb, idiocracy
We’ve already reached IDIOCRACY, so no choice to be made there.
Peddling fiction there mi amigo.
It’s official. The world is run by some seriously twisted freaks.
Jeffrey Epstein is laughing at you. All of you.
When TSHTF, I have a feeling he won’t be laughing anymore.
I liked the observation by one of the ZH commenters, that this is the way it goes when empires are in collapse. It’s tough to take, but deviant behavior dominates.
Even the more decent, productive folks will actively participate in bringing about the collapse, in the hopes that it will wipe out the evil they have to contend with.
“Big darkness, soon come” — Hunter S. Thompson
But first, the little darknesses. The many, many little darknesses as the more productive, the people who keep things running and working, one by one realize that what they’re supporting is not worth it. They realize their efforts benefit the fat lard who spends all his time on his I-phone, the coked out boss, the FSA.
And they start to slack off themselves. Meters don’t get read, mail gets thrown out instead of delivered, customer service calls stack up, neglect sets in, things go downhill fast. This is what happens.
“Big darkness, soon come”
I thought that was Sitting Bull.
count me in as one more cynical person who’s going Galt.
no more cash contributions for school supplies to my kids teachers after seeing how many millions the San Juan District wastes. (North Sacramento area)
and no more buying yearbooks, paying extra for field trips & other items for the “poor” kids at school as I see their parents in new cars w. $hiny rims . . . and the kids dress in pricey sports jerseys while I buy mine modest clothes
all of these leeches are on the public dole and proud of it!
all the money they save using EBT & other freebies gets spent on BULLSHIT LUXURIES that the working responsible person cant afford.
hell, I haven’t had cable in years but it seems every “poor” family has at least one effin cable box.
(yeah, I know it could be cheap/subsidized but so what & fuck you anyway. that’s just money that could/should be used to support yourself and pay some FUCKING BILLS)!!
. . .. waiting for the usual bleeding-heart back-to-school backpack drive that the TV / poverty pimps try to guilt us into paying for, so the perpetual FSA saves THAT money fo’ mo baby daddy beer / drug / tattoos / vapes
Right on, aqius. Good to see you, btw. The back to school BS gets cranked up good around these parts, as well. All the retirees fall for it, big time, every time.
hey . . . hi-5 back to you, Palmetto!!
(btw, I’m not a complete heartless bastard. I’ve gladly bought pressed cubans for the street people in Ybor during the 1980’s but drew the line at cash handouts.)
and I cant even begin to count the times I’ve given stranded kids rides homes when their parents “forgot” they were at elementary school here in CA .. . or didn’t care as they were home all drugged-up! breaks your heart.
didn’t seek any reward or need any fanfare / I’d hope someone would do the same for my kids if needed.
There’s nothing cheap money cannot solve. - BernaQE
I generally agree with that. People don’t realize just how thin a veneer civilization is. We look at Sierra Leone or Iraq and think, that could never be us. But it could be, with the right precursory circumstances. Thucydides wrote about the social impact the plague had on Athens, one of the more sophisticated societies of the time.
“People don’t realize just how thin a veneer civilization is.”
Exactly. Stupidest thing ever done was to abandon mechanical systems more or less entirely for electronic, and then make it all interconnected. Always at least have mechanical back up.
I wouldn’t give you two cents for these computerized cars in an emergency. Give me one of those old blatty cars or trucks like they have in Cuba.
One need only look at what happened to the Soviet Union to realize big countries go down, hard.
China went down hard, too. Probably a couple of times. All of Europe has gone down hard a number of times over the centuries. Venezuela is in process at the moment.
It’s pretty gross what happened in the Soviet Union during and after the collapse (which Washington played a big hand in, btw, especially Al Gore, believe it or not. Which is why I laughed when Bill Clinton and then GW Bush bit him in the arse. Guy deserves every bit of misery that came his way.)
“Jeffrey Epstein is laughing at you. All of you.”
And getting his helmet polished. Veal Island.
Elected by drooling imbeciles, aka the Obama Zombies, McCain Mutants, and Romney Retards.
[Fort Wayne, IN]
“A councilman voting against the project said he was uncomfortable with the ratio of public funds to private funds represented. Working through the haze my head began to spin, but it is important to take a closer look at the numbers surrounding this project. The project is expected to cost about $40 million. In addition to the $4.1 million from the city, the project is being funded with about $17 million in federal New Markets Tax Credits, about $5 million in local equity, and about $5.5 million in state Community Revitalization Enhancement District (CReED) credits, Brad Toothaker, managing partner of Great Lakes Capital, told the council. The firm has also asked northeast Indiana’s Regional Development Authority for $2.8 million in Regional Cities Initiative funds to fill the final funding gap. “In the spirit of truly getting as much introduction of upside funds into the project, we’re working with the state of Indiana to grow the CReED credits that are available based on some project cost allocations,” Toothaker said. If approved, that would allow the company to reduce its request from the regional development authority.”
“Footnote; I wrote this article on May first, however, I have been slow to hit the publish button because it may not interest all that many people. Where it becomes important is if many other cities have also started down a similar path that blurs the line between private and public, sound investment and speculation. We are borrowing from the future for pet projects of the political class.
Footnote #2; It should be noted that while the amounts being spent may seem very modest to people living in America’s coastal cities and other regions of the country these are still substantial sums in a many areas. As always your comments are welcome and please feel free to view the archives for another post you might find interesting.
Footnote#3 Since this was written the 20 million dollar revitalization of a one block historic area into a multipurpose area is now being hailed mas a 30 million dollar project.”
http://brucewilds.blogspot.com/2016/07/an-example-of-local-government-run-amuck.html
need groceries and beer, time to pull some equity b@tchez!
Until then fetch me some Cheetos.
The New York and SF apartment markets are a test of free market economics.
Left wingers in both cities say relying on supply and demand doesn’t work in housing, and you have to have the government heavily involved.
Developers say they could bring the prices down if they were allowed to build.
Well, you’ve had pro-development situations in both cities for some time, with very liberal zoning in NYC and tax exemptions for new housing. And no payment by new residents for infrastructure and public services, which are increasingly overtaxed.
And there is a development boom of massive proportions.
But will the resulting easing of availability and pricing trickle down to ordinary people, or will units just be held off the market until they owners get their prices? We’re about to see.
We may be about to see some sort of major infrastructure failure in a major metro. I dunno, a bridge collapse, grid outage that lasts, that sort of thing.
‘Equity Residential is among landlords having to work harder to lure tenants in the high-cost markets of Manhattan and San Francisco as an apartment-construction surge gives residents more bargaining power…‘Markets do reset from time to time, either due to new supply or changes on the demand side of the equation,’ Equity Residential CEO David J. Neithercut said on a conference call. ‘Unfortunately at the present time, we’re experiencing both factors in two of our most important markets.’
Supply and demand putting the hurt on one of the biggest landlords in the two most expensive markets. Like the Israeli said above, there is no shortage. There never was. They’ve built their way out of the bubble, and now huge loses will be the result.
Re-posting this from yesterday:
‘A Toronto economic analyst and former politician has blamed governments and “our own house horniness”—and not foreign investors—for sky-high Canadian home prices.’
“There’s simply no data showing foreign guys caused houses to go ballistic, and overwhelming evidence Canadians have done this themselves (with the help of politicians),” wrote Garth Turner on his blog, The Greater Fool. “Even the latest Van stats reveal locals and foreigners spent an identical amount per purchase, and Canadians outnumbered them by nine-to-one. Case closed.”
‘Turner, a former Conservative and Liberal MP, acknowledges that most readers of his blog are “on the side of stiffing the out-of-country buyers”. But he points the finger at public officials for pushing homeownership through some risky means.’
“In fact for decades, there’ve been strong pro-real estate measures enacted by every successive group of politicians, leading us directly to now—when the average family can no longer afford the average home,” Turner writes. “Artificially-low borrowing rates, government-backed mortgage insurance, legislated 5% down payments, RRSP homebuyer loans, first-timers grants, property tax rebates, land transfer tax exemptions—the list of interventions is endless. So now crap houses cost a million. Good job, government.”
‘Furthermore, Turner maintained that the housing market is teetering “even as most people are completely blind to the risks”. And he pointed out that lawyers, realtors, accountants, and advisors are already figuring out ways to avoid the new “head tax” on foreign investment. He predicted it will only result in the creation of a “bloated bureaucracy which may cost more than it collects”.
‘Meanwhile, Canada Mortgage and Housing Corp. issued a report this week saying “overvaluation and overbuilding remain the most prevalent problematic conditions observed in 15 centres” in Canada.’
“Strong evidence of problematic conditions is seen in Vancouver, Toronto, Calgary, Saskatoon and Regina,” the report stated. “In Toronto and Vancouver, this is due to the combination of price acceleration and overvaluation. In Calgary, Saskatoon and Regina, this is due to the combination of overvaluation and overbuilding.”
‘the list of interventions is endless. So now crap houses cost a million. Good job, government’
House Horny! Suzanne gets me so hot!
EQR trading at $67.99 now, down from its 52 week high of $82.39. The earnings report did not sink in yet, as the stock is up today.
Though I own shares in EQR through VGSIX, I want to buy individual stock in it at some point. Too high for now. EQR is like Toyota while AVB is like BMW. I go for better value in rough times.
I would buy in at $40
You’ll get your wish. I’m certain of it Poet.
Ben, a serious question.
You’ve said that we can’t build our way out of a bubble. I’m saying that a major reason for high prices/rents now is that we are undersupplied (as evidenced by 30-year lows in vacancy rates), NOT a bubble.
In 2004-2007, we had a HUGE building boom (peaked at approximately double today’s pace), and it had absolutely no immediate effect on home prices. Prices kept going up. This supports your view that you can’t build your way out of a bubble. The bubble eventually collapsed under it’s own weight, and once the bubble popped, this over-development had massive implications on prices.
Today, the addition of supply is having an immediate impact on high rents. There is no lag.
Question: Isn’t the fact that rents are softening immediately upon the addition of supply evidence that the reason rents were high in the first place was lack of supply?
As I said elsewhere, go back and look at this blogs posts from early 2006 and you’ll see FB’s left and right. There was never a shortage of rentals. Rents were going up because there was an epic apartment flipping/”value add” thing going on, backed by the government. I’ve documented it over and over, like the 30-40 year highs (in mostly luxury) apartment boom.
https://www.census.gov/housing/hvs/data/histtabs.html
Look at Table 11A.
Median Asking Rent changes year to year from 1988 in the US have ranged from -1.6% from 2004 to 2005, and a high of 9.7% from 2001 to 2002.
Average median asking rent growth from 2004 to 2007 was 2.7%.
There was nothing remarkable about rent growth in the US during the bubble years. It generally tracked inflation. In large part, this was because there was plenty of rental supply–vacancy was relatively high during that period–approximately 10%.
Yeah and a lot of conversions of apartments to condos.
Then the crash, and some reversions from condos to apartments.
I don’t really understand your point SH.
My point is simple. When there reasonable supply of rental properties relative to demand for them, rent growth is muted (should generally track inflation). When there isn’t enough supply, rent growth is higher than inflation. When supply is added, rent growth then slows.
I understand that this logic flies in the face of the absurd argument that low interest rates and easy money are pushing rents higher, but it’s a basic Econ 101, and explains very well what we are currently seeing in the market.
I think the supply / demand equation is better than planned economies (I’m old enough to remember the old Soviet Union’s “five year plans” bs).
But I think it’s not perfect. Around here apartments are being built like crazy. You’d think salaries would go up at as fast a rate.
But they ain’t.
I just checked a third party rental website (a big one) for multiple unit dwellings (out west we call these apartment complexes). My 704 square foot model is now advertised at $150 more than what I am currently paying per month. My lease expires six months from now. That’s a ten percent increase.
Flies boldly in the face of new apartment construction.
When the LL tries to raise your rent, go check out the kinds of deals the new apartment developers are willing to offer for you to move in…1 month free? Perhaps 2?
Your landlord will have a harder time raising your rent if you have options. If you have no options, well, you’re kind of screwed, aren’t you?
More development = more options = less power in the hands of landlords = more power in the hands of renters = lower rents
They are “building like crazy”, but what is the starting vacancy rate in the OC? 4%? 5%? Gotta build a lot more to balance that market.
“you’ve had pro-development situations in both cities for some time”
In the case of SF, this is following decades of severe growth restrictions.
And they still have rent control in SF, which distorts markets considerably.
Your own link shows 18 million excess empty and defaulted housing units.
Just picked up this book off the library’s newly released non-fiction shelf:
“No subject is more hotly debated than the extreme measures that our government has taken after 9/11 in the name of national security. Torture, extraordinary rendition, drone assassinations, secret detention centers (or “black sites”), massive surveillance of citizens. But while the press occasionally exposes the dark side of the war on terror and congressional investigators sometimes raise alarms about the abuses committed by U.S. intelligence agencies and armed forces, no high U.S. official has been prosecuted for these violations – which many legal observers around the world consider war crimes.”
http://hotbookspress.com/books/american-nuremberg/
President Trump will continue this proud tradition, and keep us safe.
And I’m listening to A Saucerful Of Secrets, you should try it sometime:
https://en.wikipedia.org/wiki/A_Saucerful_of_Secrets
Pink Floyd — Apples And Oranges (1966):
https://www.youtube.com/watch?v=iJSIazpQZRg
Feds expand controversial tracking of secret home buyers to Broward, Palm Beach and more
Feds say more than 25 percent of reported transactions were suspect in Miami and Manhattan
July 27, 2016 02:15PM
By Sean Stewart-Muniz
http://therealdeal.com/miami/2016/07/27/feds-expand-controversial-tracking-of-secret-home-buyers-to-broward-palm-beach-and-more/
In California it’s gotta be double that at the least.
25% is probably low estimate.
http://abcnews.go.com/Health/outbreak-locally-transmitted-zika-virus-confirmed-continental-us/story?id=40989431
“Scott said a small area in northern Miami that is about a square mile in size is the only area where the Zika virus is being transmitted from mosquitoes to people.”
heh. Northern Miami. That’s some serious code right there. And trust me, they’re not talking about the Aventura area.
Zika is contained!
Hialeah? Little Haiti?
heh, only a Floridian could get that code. It’s meaningless to people who have never lived here, and even to those who do live here, but don’t keep up with South Florida.
Correctomundo on door #2. See what they did there? They said “NortherERN Miami” in order to be politically correct, I’d bet money. They can’t say “North Miami” because it would send the Haitian community activists into a tizzy.
Not that I blame them. Many of those folks are the hardest working sonsabeetches in the entire US. Two, sometimes three jobs and many work the lowest, most menial jobs in South Florida. No FSA for them. They’re just so happy to be somewhere that isn’t Haiti, they’ll do anything. Not surprised that’s where it hit, because so many are in the lowest rung of healthcare support jobs, from hospital hazmat handling to emptying bedpans and wiping buttocks in nursing homes. And they do these things often cheerfully, always stoically, despite the abuse they sometimes get. My guess is that’s the vector on which it entered their community.
oops, I wuz wrong. So were the media outlets that said “Northern Miami”. It’s Wynwood, which was a heavily Puerto Rican area at one time. I wouldn’t even consider it a northern part of Miami, that’s weird. As you know, these distinctions are important in Miami Dade County.
It’s actually an arts and fashion district now.
I’m glad it wasn’t North Miami. Those folks don’t need this, after all they’ve been through.
“corruption and devastation follows her wherever she goes.”
So true. I seriously can’t believe that she got nominated for prez. Totally blows my mind. Forget the emails (bad enough) but this Clinton Foundation thing is a mind blower. I watched a video of a woman outside the DNC talk about what happened in Haiti as a result of the Clinton Foundation’s cronyism. I had no idea about any of it until I watched Clinton Cash. Why are these people not behind bars?
I watched “Clinton Cash” the other day. Even if you’ve read extensively about these global grifters, it’s shocking. No one I’ve told about the movie is interested in seeing it (none of them would ever vote for Hillary anyway.) That doesn’t surprise me - watching it after a hard day’s work could make your head explode.
It’s tempting if you are in the middle to say that Clinton Cash is a hit piece from a right-wing journalist.
HOWEVER, one part of Clinton Cash was what prompted the NY Times to research and write about Uranium One…on other words, if the NY Times explores a major claim a supposedly biased author makes, and essentially supports the story, then it’s hard to ignore the rest.
Clinton supporters will always find ways to explain away her corruption and venality. And their votes for same.
Russian billionaire scores demolition permit to raze Trump’s former estate in Palm Beach
Billionaire was outed as home’s true owner during divorce proceedings
July 27, 2016 12:45PM
http://therealdeal.com/miami/2016/07/27/russian-billionaire-scores-demolition-permit-to-raze-trumps-former-estate-in-palm-beach/
Too tacky for even the Russians…
Greetings from Budapest!
It’s hot and humid here. Tons of tourists, the bulk of which seem to be broke ass young adult backpackers, mostly from eastern Europe. You’re far more likely to hear people speaking in some Slavic tongue than in English, unless they are talking to Hungarians, in which case they speak to each other in English.
Will have a more detailed report when I get back.
Real estate! Find out how much a month for a second home for a yank please.
$1 mil us dollar and you get a ee hottie.
Have fun! Be sure to stay in Eastern Europe.
In addition to the housing situation, what’s the food like?
It depends nowhere you eat. The tourist trap places blow. But other places are great and cost about half of what a comparable meal goes for in the USA.
I haven’t looked at real estate. Have been told that outside of Budapest that it’s cheap, whatever that means. Few people outside of Budapest speak English, and Hungarian is as bizarre as languages can get.
Is Lola with you?
I was under the impression that Lola spends the nights with you.
You should try to get out of your mom’s basement once in a while and see the world.
Weak my friend. Weak.
+2 (HA & Lola)!
Weaker. And living in your mt skull, rent-free.
“Kyrgyz do not have any other place to hide their cash if not to build apartments and develop real estate.”
How did hiding cash in real estate become such a huge priority in every corner of the planet at the very same time?
‘The number of lavish mansions and luxury estates mostly around Bishkek but also in other parts of the country is mushrooming. So is the construction of luxury housing in the capital most of which stand all but empty’
All over the world. But Yellen can’t see it.
Yellen the Felon chooses not to see it. There, fixed it for ya.
Donald Trump’s Candidacy—–The Good And The Bad Of It
by David Stockman • July 29, 2016
“No, not even close. America is heading for a devastating financial collapse and prolonged recession that will make the last go-round look tame by comparison. Under those circumstances the very last thing it will need in 2017-2018 when the brown stuff hits the fan is a lifetime political careerist and clueless acolyte of the state who knows all the right words and harbors all the wrong ideas.
Indeed, during the coming crisis America will need a brash disrupter of the status quo, not a diehard defender. “……(continued)
http://davidstockmanscontracorner.com/donald-trumps-candidacy-the-good-and-the-bad-of-it/
So he’s put a date on his gloom and doom prediction, which is fairly unusual for his crowd. Though “2017-2018″ is a two year period. You would think that a genius like Stockman could be more specific. We’ll have to see something happens during those two years that is a lot worse than the last recession.
Stockman could be more specific
No we should we all be blind and listen to Yellon who can’t tell a difference between a bublle and an airplane.
Yuuuge GDP miss = no liftoff till kingdom come.
You gotta assume Yellen knew this stuff when she was speaking so glowingly about US economy just 2 days ago.
#dogandponyshow
Seems like the PPT has done a fine job of keeping the headline U.S. stock market indexes propped up today, despite the big miss on GDP.
It sure is nice getting paid to buy a house! Now that is the american dream!
‘There are hundreds of unsold luxury homes priced above $500,000 in the Flagstaff area but just 36 priced below the median sales price inside the city limits. The median sales price for a home in the Flagstaff area in June was about $334,000, Century 21 Flagstaff realtor Stephen Brighton said. That price represents a 9 percent dip in the median price from May, which was $368,000. Brighton said in an email that those million-dollar home owners may be overly enthusiastic about the housing market.’
‘Brighton said that so far this year, nine homes in the area have sold for $1 million or more’
When I left Flagstaff they had just approved 4500 houses, not one of which was affordable for median incomes. Not long before that I had first hand knowledge of a builder who put up a fancy house for $37/square foot. And that was using local labor, not Phoenix illegals.
“Not long before that I had first hand knowledge of a builder who put up a fancy house for $37/square foot.”
It’s fairly easy to do. No new fangled work methods required.
I don’t know why people so desperately want to believe things should be overvalued. It’s a box of air. Sure, a band-aid at a hospital costs $600. A fighter jet costs a trillion bucks before it even takes off. A house in Flagstaff that cost $15,000 to build 40 years ago is “worth” $400,000. We’re being ripped off, it’s as simple as that.
Or it could be;
-The target is just simply uninformed, doesn’t know the value of a dollar
-The target has MT Pockets, therefore it really doesn’t matter what the price is so long as the entry point is presented, knowing there is no other possible way to enter.
-The target realizes after the fact, thus the only acceptable path forward for them is maintaining the massively inflated price and market rigging scheme.
You always fail to explain the obvious: if a builder could profitability build a house and sell it for such a low price, people would be lined up 200 deep to get one.
Why does that not happen?
You always fail to think it through: If there were demand at “such a low price”, contractors would line up 200 feet to build them.
Why does this not happen?
No, Ben Jones you are wrong. We have been told that everybody wants to live there.
‘For almost five years we were just on an upward spiral’
‘buyers now have more choices as a period of tightness in Anchorage’s housing market appears to have ended. ‘Housing is coming off of a four-year sellers’ market’
The other day a poster said this blog had been wrongly telling people this was a bubble for 7 years. (Which just so happened to be around when he bought some shacks, making him the perfect timer). The best deal I worked on was a $12,000 auction purchase in December of 2010. We could have bought 3 more that day if we had more money. There were more to come, in 2011 and 2012. These time lines get arbitrary. Like when people say the bust of 2008. Look back at this blogs archives in early 2006; there were FB’s left and right.
Heck, I hardly had time to post anything 7 years ago because I was working on foreclosures 7 days a week.
Ben Franklin said 6 months after the revolution that so much had been incorrectly written about events that no one in the future would know what really happened.
“Ben Franklin said 6 months after the revolution that so much had been incorrectly written about events that no one in the future would know what really happened.”
Sigh. That’s the truth. And it makes me question if ANYTHING written in history is actual.
One of the things I’ve experienced this election cycle is the naked disinformation that exists out there, much of it deliberate. Any of the posters who witnessed my little go-around with Mikey regarding the guy who claimed to have been paid $3500 to be a Trump protester knows I fell for that one.
But even so, even after looking at the guy’s denials and snarking and admission of fakery, I wonder. Maybe he was paid, and denied it, who knows? The only thing fake about it is perhaps the amount he was paid. By now we’ve heard the accounts of people who say they were recruited and paid $50.00/day to fill seats at the DNC. And the “white noise” machine positioned above a certain section of seats to drown out dissent.
I forget where I’ve read it, but someone did a little survey and some of the people that were surveyed swore up and down they’d seen ads by the Trump campaign, when no such ads have been run. It isn’t until the past few days that they’ve been releasing pro-Trump ads, and even then, these are from super PACs, not the Trump campaign itself.
We live in the swing portion of the ultimate swing state, and I have yet to see or hear a single Donald Trump ad. The closest thing was by proxy — an ad for Carlos Beruff, running for the U.S. Senate, in which Beruff said that, unlike Marco Rubio, he was not afraid to support Trump. Beruff, by the way, is a developer.
Yes, the Beruff-Rubio matchup should be interesting. I don’t trust either one.
I haven’t seen a Donald Trump ad, except for on line. However, there have been plenty of Hillary anti-Trump ads and frankly, there’s one that I can see how people would think it’s a Trump ad, because it could actually be seen as a positive for Trump, lol.
‘Who Hacked the DNC?’
Remarkable how they can turn the attention away from ‘let’s slime the Jew so my southern Baptist peeps won’t vote for him.’
Controlling the narrative, Ben Jones, control.
Citizen! The Comrades of Proven Worth and their Oligopoly-owned media adjuncts have invested enormous sums in crafting The Narrative. Now you and your obnoxious pal Hessel mock and deride The Narrative, and in doing so confuse the weak minds and low IQs we have so assiduously won over. When Comrade Hillary becomes Supreme Leader and our Democrat Supermajority is a fait accompli, you and the other naysayers will finally be frogmarched into our reeducation camps for some much-needed attitude adjustment…for the children. A dossier is being compliled by our progressive operatives on the HBB…forward!
Trump and his supporters are the racis ones.
From:MARSHALL@dnc.org
To: MirandaL@dnc.org, PaustenbachM@dnc.org, DaceyA@dnc.org
Date: 2016-05-05 03:31
Subject: No shit
It might may no difference, but for KY and WVA can we get someone to ask his belief. Does he believe in a God. He had skated on saying he has a Jewish heritage. I think I read he is an atheist. This could make several points difference with my peeps. My Southern Baptist peeps would draw a big difference between a Jew and an atheist.
https://theintercept.com/2016/07/22/new-leak-top-dnc-official-wanted-to-use-bernie-sanderss-religious-beliefs-against-him/
‘Director of National Intelligence James Clapper, speaking about the hack of Democratic Party emails, said on Thursday the U.S. intelligence community was not ready to “make the call on attribution” as to who was responsible.’
‘The White House said earlier the FBI had not disclosed any information about who was behind the hack. Cyber security experts and U.S. officials said on Monday there was evidence that Russia engineered the release of sensitive Democratic Party emails in order to influence the U.S. presidential election.’
‘The emails were released by the anti-secrecy group WikiLeaks on the eve of the Democratic National Convention, and appeared to show that the Democratic National Committee favored Hillary Clinton over her chief rival, U.S. Senator Bernie Sanders.’
‘Clapper, speaking at the Aspen Security Forum, acknowledged that “there’s just a few usual suspects out there” who might be responsible for the cyber intrusion, suggesting it was the work of a nation-state rather than an independent hacking group. “We don’t know enough to ascribe motivation,” he said. “Was this just to stir up trouble, or was this ultimately to try to influence an election? That’s a serious proposition.”
‘Russian officials have dismissed the allegations of Moscow’s involvement. “It is so absurd it borders on total stupidity,” said Kremlin spokesman Dmitry Peskov. “The Americans need to get to the bottom of what these emails are themselves and find out what it’s all about.”
‘get to the bottom of what these emails are themselves and find out what it’s all about’
These people should be arrested for using the DNC in this manner, IMO.
These people should be arrested for using the DNC in this manner, IMO.
I agree.
The woman who resigned got a cushy campaign job. Like Assange said, it was a message that if you protect the Iron Maiden you will be rewarded.
But in the face of such open corruption and dirty dealing, what is everyone talking about? Russians!
What’s creepy about the spin on the DNC hack is how it has echoes of the run-up to the Iraq War, the dis-info about Saddam Hussein and yellow cake uranium and that sort of thing.
This was an earlier post on ZH today:
http://www.zerohedge.com/news/2016-07-28/power-nyet-how-one-word-staggered-imperial-washington
“The way things are supposed to work on this planet is like this: in the United States, the power structures (public and private) decide what they want the rest of the world to do. They communicate their wishes through official and unofficial channels, expecting automatic cooperation. If cooperation is not immediately forthcoming, they apply political, financial and economic pressure. If that still doesn’t produce the intended effect, they attempt regime change through a color revolution or a military coup, or organize and finance an insurgency leading to terrorist attacks and civil war in the recalcitrant nation. If that still doesn’t work, they bomb the country back to the stone age. This is the way it worked in the 1990s and the 2000s, but as of late a new dynamic has emerged.
In the beginning it was centered on Russia, but the phenomenon has since spread around the world and is about to engulf the United States itself. It works like this: the United States decides what it wants Russia to do and communicates its wishes, expecting automatic cooperation. Russia says “Nyet.” The United States then runs through all of the above steps up to but not including the bombing campaign, from which it is deterred by Russia’s nuclear deterrent. The answer remains “Nyet.” One could perhaps imagine that some smart person within the US power structure would pipe up and say: “Based on the evidence before us, dictating our terms to Russia doesn’t work; let’s try negotiating with Russia in good faith as equals.” And then everybody else would slap their heads and say, “Wow! That’s brilliant! Why didn’t we think of that?” But instead that person would be fired that very same day because, you see, American global hegemony is nonnegotiable. And so what happens instead is that the Americans act baffled, regroup and try again, making for quite an amusing spectacle.”
And the message is even clearer when you see the plans to reward donors with political positions.
People say that the Russians are doing this to help Trump.
BS. If they are in fact behind the leaks, they are doing it to delegitimize the US government to some extent globally (regardless of who ends up in power).
This is exactly what we would do if we had dirt on their corruption. It’s not to help one candidate or another, it’s to tarnish the whole crooked system.
I bet the DNC emails were stored in Amzon or other clouds.
LOL
“And the message is even clearer when you see the plans to reward donors with political positions.”
LOL, watch out for the cracks in that glass ceiling. Washington just might get its first Whorehouse Madam.
Which is kind of funny, when you think about it. One of the more vicious rumors about Bubba is that his mother was a small town prostitute and madam, and that his marriage is the result of some serious mommy issues.
Reminds me of my son who crapped his pants the other day. First, he denied it. Then he said that it wasn’t poo. Then he said that I must have done it when he wasn’t looking.
Just because someone shows the world that you sh*t your pants doesn’t mean that they are to blame.
This is good:
Can Facts Slow The DNC Breach Runaway Train?
‘Rep. Nancy Pelosi, the Minority Speaker of the House of Representatives and a member of the House Select Committee on Intelligence, has determined that the Russian government hacked the DNC. Not because of any intelligence that she has received from her committee. She just knows: “The Russians hacked the Democratic National Committee,” she told MSNBC during an interview at the Democratic National Convention in Philadelphia. “There is no question about that. My source is not the Intelligence Committee of the Congress of the United States. It is what I know: They have hacked. That’s a fact.”
https://medium.com/@jeffreycarr/can-facts-slow-the-dnc-breach-runaway-train-lets-try-14040ac68a55#.pkbpno8xb
This is typical of abusers. The crime is not what dirt was exposed, it is that the dirt was exposed.
Soul Asylum: Runaway Train
https://www.youtube.com/watch?v=Zf8n0rc1JHc
Saratoga, CA Affordbility Improves As Housing Prices Sink 4% YoY
http://www.movoto.com/saratoga-ca/market-trends/
Palm Beach Post:
Housing bubble crisis: A decade later, where are we now?
http://www.mypalmbeachpost.com/news/business/a-decade-after-bubble-a-not-quite-full-recovery-fo/nr6pn/
Real estate ETF hitting all-time high today:
https://finance.yahoo.com/quote/VNQ?p=VNQ
Yield chasing?
In part, yes.
But some of the REITs have also been showing very strong rent growth, and supply additions are not very substantial.
I said long ago that I was a big fan of Industrial REITs (internet drives warehouse need), and so I have meaningful investments in PLD, FR, TRNO–and a smattering of smaller investments in others.
In reading PLDs earnings call transcript the other day, the CEO of PLD noted that in 2012, he was laughed at when he said he saw 25% rent growth in the coming years. He got 35%. But that 35% just gets the rents back to the NOMINAL rents from 2000. He believes that they should be meaningfully higher still.
This is just one portion of the REIT universe, but the rise in industrial REITs is not just based on yield chasing.
All that said, I believe a meaningful portion of the rise IS yield chasing…it’s just that there are strong fundamentals supporting a lot of commercial real estate product types as well.
Then it sounds like commercial rents have a long way to fall. Especially considering the ballooning commercial vacancy rates and amount of new inventory coming on line.
Purchased PLD from $7 to $13 per share. Stock price now $54.
PLD portfolio occupancy at 96.1%, same as last quarter.
Purchased FR from $2 to $8. Stock price now $29.
FR portfolio occupancy at 95.8%, up from 94.8% last quarter.
No ballooning vacancy yet. Development is still muted.
I do agree with you, that increased development will be a warning sign for occupancy and rent growth. That said, my basis is so low, I think I’ll just hold these stocks long-term given the secular trend away from traditional retailing.
I will guarantee that the occupancy rate is fuzzed just like the FB daily ative users.
Go ahead and short the stocks then. That should work out just fine for you.
Why risk that when they’re borrowing cash for share buybacks?
What does it look like when the bubble bursts? An example:
How Palm Beach County’s economy has suffered after real-estate bust
11:52 p.m. Saturday, Aug. 20, 2011 | Filed in: Business
http://www.palmbeachpost.com/news/business/how-palm-beach-countys-economy-has-suffered-after-/nLxFr/
crushing.housing.losses.
Denver = Debtver.
HELOCs and cash out refis are the only thing keeping this fake boom afloat.
‘The California Association of Realtors is disappointed in a new policy announced recently that the Federal Housing Administration (FHA) will begin insuring mortgages on certain properties with Property Assessed Clean Energy (PACE) loans.’
‘In a statement, CAR President Pat “Ziggy” Zicarelli said, “Although CAR supports voluntary consumer-friendly energy improvement programs for homeowners; CAR believes that HUD was ill advised to approve placing PACE loans in a senior position to FHA first mortgages. Doing so places FHA homebuyers and taxpayers at risk and does homeowners a disservice by approving a loan product without consumer protections and which is aggressively sold to homeowners who rely on FHA financing for safe and affordable mortgages.”
‘Zicarelli added, “This loan product has no minimum disclosures, no underwriting of the borrower, no proof that the borrower has the ability to repay, no three-day right of rescission, no marketing limitations, no interest rate or fee caps, no kickback prohibitions; nothing.”
“If the housing market of the last decade has taught us anything, it’s that first-time homeowners and low-and-moderate-income homeowners are the most vulnerable and will be taken advantage of. Sadly, it is they who the FHA is inviting unregulated PACE lenders to target.”
Oh dear…
‘no minimum disclosures, no underwriting of the borrower, no proof that the borrower has the ability to repay, no three-day right of rescission, no marketing limitations, no interest rate or fee caps, no kickback prohibitions; nothing’
I got this email yesterday:
Good Afternoon Ben-
Fannie Mae just announced their changes to HomeReady mortgage, their low-down-payment program. These new changes are set to expand access to credit, broaden options for borrowers to meet the homeownership eduction requirement as well as new borrower one-on-one assistance. On top of these new changes Fannie Mae will be making future changes at the end of 2016.
The current changes are in full effect, and Matt Weaver VP of Finance at Finance of America Mortgage, a Blackstone Company can give his insight on these new changes and what they mean for homeowners:
-Ownership of other residential properties
-Removal of homeownership education for limited cash-out refinance transactions
-Removal for landlord education for HomeReady loans secured by two-,three,or four-unit properties
-Deleting references to post-purchase early delinquency counseling requirements
-Accepting homeownership education from Community Seconds or Down Payment Assistant Program Providers
This thing is already so wide open they could drive a bus load of strawberry pickers through it, and now worser?
‘changes to HomeReady mortgage, their low-down-payment program…are set to expand access to credit, broaden options for borrowers’
Looks like it’s 2006 again.
Bigger and better.
Happy Friday!
http://i.imgur.com/DzZH8.gif
Downtown Los Angeles Housing Prices Crater 16% YoY As Tsunami Of New Inventory Floods Market
http://www.zillow.com/downtown-los-angeles-ca/home-values/
The five major Canadian banks are faced with planning up to a 50% reduction in hot real estate market prices. To encourage them, Vancouver has introduced a 15% purchase tax on foreigners and Toronto is expected to do the same within a month.
In Vancouver lawyer’s staffs are not sleeping trying to document emergency closings on luxury housing before midnight August 2. Deals are being flipped at discounts as well.
In Canada if you are faced with negative equity in your mortgage you have to pay the difference - unless you go bankrupt.
Interesting, a principal residence profit is not taxable income. But forgiveness of a mortgage debt is taxable income.
Fortunately Canadian bank leverage is good, but even that cannot withstand a high volume of personal bankruptcies due to overpriced housing.
Ms Yellen, et al, you have set the stage. Either do something or get off the throne. You have let the bubble go on too long.
Notorious BIG — Things Done Changed (1994):
https://www.youtube.com/watch?v=rdciOXroU9o
Boogie Down Productions — South Bronx (1987):
https://www.youtube.com/watch?v=vsrOy32nJdI
In the 70’s a friend of mine thought it was amusing to take me on surprise rides through the South Bronx. I did not think it was funny. It was bad enough to watch the buildings burn from our rooves in northern Manhattan. They put up those fake paper windows in the buildings after that, so it was all good.
thats when america turned into functionally illiterate morons, ive always said the kkk would have loved rap music being forced on these people 24/7.
when i was doing paralegal work, that always struck me how illiterate criminals are and yet we do nothing to educate them properly so they wont come back. yes they really have to learn how to read,write and speak English.
Folks are back to buying houses so they can make some easy cash. Nothing has changed.
Since the losses were absorbed mostly by printing more cash no one leaned any lessons.
Are you sure az_donk?
US Housing Demand Plummets To 20 Year Low
http://1.bp.blogspot.com/-0q8fIAsczFk/VUANHEhSbnI/AAAAAAAAjRs/oANwXOUviGw/s1600/MBAApr292015.PNG
Takoma Park, MD(DC Metro) Housing Prices Crater 28% YoY As Price Declines Ramp Up Nationally
http://www.movoto.com/takoma-park-md/market-trends/
DOW 50k!
When a Comrade of Proven Worth swears she’s not taking away your guns, trust me, the time has come to buy more of them.
http://www.zerohedge.com/news/2016-07-29/hillary-promises-im-not-here-take-away-your-guns
Is Zika bullish for housing? It’s certainly bullish for the DNC (Zika babies being the perfect Democrat lifetime dependency voters).
http://www.bloomberg.com/news/articles/2016-07-29/florida-says-zika-cases-likely-transmitted-locally-in-u-s-first
Yelen the Felon’s next escalation in her War on Savers: NIRP.
http://www.zerohedge.com/news/2016-07-29/fed-preparing-negative-rates-heres-sign-everyone-missed
How the mighty are fallen.
http://www.businessinsider.com/inside-50-cents-6-million-dollar-connecticut-mansion-2016-7
“…decadent Connecticut mansion…”
Gotta wonder what the annual property taxes are for that crib?
Uh-oh….
http://www.telegraph.co.uk/business/2016/07/29/housing-market-on-hold-slowest-sales-in-13-months/
Dumb ‘em down and profit, indeed.
http://charleshughsmith.blogspot.mx/2016/07/social-fragmentation-suits-powers-that.html
Why buy it when you can rent it for half the monthly cost?
Buy later after prices crater for 70% less.
A preview of coming attractions once Hillary and the DNC’s Comrades of Proven Worth establish their permanent Democrat Supermajority and unveil their collectivist kleptocracy. Forward!
http://www.zerohedge.com/news/2016-07-29/socialist-utopia-slave-nation-venezuela-unveils-shocking-forced-labor-law