Buyers Are Looking For Projects That Will Rapidly Appreciate
KUTV reports from Utah. “Utah’s housing market is booming with homes selling in a matter of days with multiple offers at or above asking price. Prices have been rising so fast, some worry the state and the nation could be in for another housing bubble. Here in Utah, home prices have recovered to pre-crash prices, adjusted for inflation. Nationally home prices are about one percent shy of the peak pre-bubble. ‘The area I am worried about is the value of new home construction,’ said Robert Spendlove, a senior economist for Zion’s Bank who keeps a close eye on Utah’s economy. Overall, he sees strength. Looking at the housing market and especially new home builds, he ‘wouldn’t say people should wait- but they should be careful not to overbuild.’”
“His reticence comes from the possibility that interest rates could rise while families are waiting for their house to be built, pricing them over their allotted budget by the time they reach closing. But there are differing opinions on whether or not Utah is nearing a housing bubble. Jim Wood, who’s studied Utah’s housing market for 40 years and is a senior fellow at the University of Utah’s Kem Gardner Policy Institute, ‘doesn’t see any sign of a bubble in the housing market, nor in new construction.’”
“He’s watched housing in Utah since the early ’70s and believes Utah’s prices will only keep increasing into 2017. Wood tells people “don’t wait for prices to go down. That’s not going to happen in the short term.’ If you’re in the market for a new house, Wood’s advice ‘would be to get into a home as soon as you can.’”
“Only time will tell if Utah’s housing market will stay on its upward trajectory, but neither economist sees a big bubble that will burst and hit Utah families. There is also a difference in the so called bubble effect this time around. The difference today is that rising prices are not being driven by bad mortgages.”
The Wall Street Journal. “Mortgage-finance giant Freddie Mac and two nonbank lenders are loosening income and documentation requirements for mortgage applicants in a new pilot program. The changes announced Monday are designed to help boost mortgage originations among first-time buyers, applicants with low-to-moderate incomes and those who live in underserved areas.”
“The moves come nearly a decade after the start of the mortgage meltdown, as many consumers remain shut out of the housing market largely because they can’t meet the underwriting criteria that most lenders require. Under the Freddie program, applicants will be able use the income of people who will live with them but aren’t going to be on the mortgage to qualify.”
“In addition, income from second jobs that borrowers have held for a relatively short period will be factored in. The pilot also doesn’t require bank statements that would show a paper trail of how some borrowers save for their down payments. Many of the pilot’s features are similar to what Fannie Mae currently allows on some mortgages it purchases but are new for Freddie Mac, which is among the largest purchasers of mortgages in the country. Freddie Mac says it purchases one in every four mortgages originated by lenders in the U.S.”
The Nevada Appeal. “The Nevada Rural Housing Authority Home at Last program is providing an increasing number of mortgage grants in Fallon. The program, which started 10 years ago and expanded its loan product suite last year, has helped 146 families in Churchill County with $20.4 million in mortgage assistance. The Home at Last enhancements combined with the Federal Housing Administration (FHA) mortgage insurance premium decrease last year is encouraging low-to-moderate income borrowers into the housing market, often for the first time.”
“The program has provided $1 billion in mortgages and $28.6 million in down payment assistance to help over 5,300 households statewide. The expansions addressed homebuyer and lender feedback to provide more borrower down payment and closing cost aid. ‘Many people think homeownership isn’t possible due to rising home prices, reduced inventory or lack of a down payment,’ said Diane Arvizo, director of Homebuyer Services for the program. ‘The reality is with rising rents, lack of adequate and affordable rental housing as well as the influx of people moving to the region to seek expanded job opportunities, now is a great time to buy.’”
The SFist in California. “Smack dab in the middle of a terrible affordability crisis, San Francisco is getting a jolt of what it really needs: ultra high-end condos. Or so argues Forbes, which on Friday published a post celebrating the fact that housing in the city by the Bay has ‘finally’ begun to cater to the super rich. Think helipads, infinity pools, and brass door-handles custom-forged ‘a few steps from the Seine’ — you know, rich people stuff.”
“‘After years of lacking the kinds of glossy, amenity-filled towers found in abundance in other big markets, high-end condominium developments are coming to San Francisco,’ the article explains. ‘And they are packing some of the highest price tags in the city.’”
“But don’t worry, these building aren’t pulling in global investors who will buy the property and just leave it sitting empty. Rather, Forbes tells us, they are meeting a local need. ‘These projects will appeal to local buyers,’ Alan P. Mark, the president of a high-end development sales and marketing firm, explained the paper. ‘Bay Area buyers are looking for projects in prime locations that will rapidly appreciate.’”
The Record in New Jersey. “The asking price has been lowered – again – on the Saddle River chateau owned by Grammy-winning singer/songwriter Mary J. Blige. The eight-bedroom, 4-acre estate is now listed for $9.88 million, down from $13 million earlier this year. The house had been on the market for as much as $13.9 million in 2011. Blige bought the gated stone manse at 119 E. Saddle River Road for $12.3 million in 2008, as the housing bubble was beginning to deflate. The home was brand new then; it had been built on speculation on the site of two ranch houses.”
“Blige is not the only Saddle River celebrity trying to sell a home. Rosie O’Donnell has listed her home at 115 East Allendale Road for just under $6.5 million. The actress/comedian bought the six-bedroom house for $6.375 million in October 2013. Another celebrity, Sean ‘Diddy’ Combs, recently sold his Alpine home for an undisclosed amount. He had bought it for $6 million in 2004 in the name of an LLC and had been trying to sell it, off and on, since 2006. In 2011, the asking price was $13.5 million, but that was cut several times, reaching $7.9 million earlier this year.”
“There are 38 homes listed for sale for $6 million or more in Bergen County, according to the New Jersey Multiple Listing Service.”
The Advertiser in Louisiana. “Lafayette and its neighbors remain mired among the worst 10 housing markets in America, Nationwide Economics reported. Nationwide economists said Lafayette ranked fifth in the bottom 10 of 400 housing markets across the country. All of the bottom 10 are located in identifiable ‘energy’ markets. ‘You’re still seeing the downstream impacts of low oil prices,’ said senior economist Ben Ayers.”
“While mining and logging has ‘hit bottom’ and was ’slowly coming up,’ he said, manufacturing jobs declined by about 3,000 in the five-parish area that includes Acadia, Iberia, Lafayette, St. Martin and Vermilion. ‘Manufacturing falling off is not helping,’ he said.”
“For those shopping for a home, the low ranking means ‘it’s a great time to buy,’ Ayers said. For homeowners looking to sell: Not so much.”
From the last article:
Bottom 10 Housing MSAs
Bismarck, N.D.
Midland, Texas
Casper, Wyo.
Houma-Thibodaux
Lafayette
College Station-Bryan, Texas
Odessa, Texas
Dallas-Plano-Irving, Texas
Hammond
Victoria, Texas
If they’re right about Dallas, there will be a whole lot of FB stories in the future.
exp for college station it looks like all oil, all the time
It’s probably how Nationwide measures it. Dallas is supposed to be diversified out of oil. College Station is a college town.
‘After years of lacking the kinds of glossy, amenity-filled towers found in abundance in other big markets, high-end condominium developments are coming to San Francisco,’ the article explains. ‘And they are packing some of the highest price tags in the city.’
Manhattan has this and it’s nosediving. Miami Beach too, and they have over 150 months of inventory and thousands on the way. And this:
‘U.S. house hunters frustrated by a shortage of listings should consider the Sunshine State.’
‘While overall U.S. home inventory continued to decline in July on a year-over-year basis, a fifth of the nation’s 100 largest markets saw increases in supply, according to a report Wednesday from real estate search engine Trulia. Half of the top 10 gainers were communities in Florida.’
‘Cape Coral-Fort Myers and Miami led the country with advances of 37 percent and 33 percent, respectively. Two other markets in the greater Miami area – West Palm Beach and Fort Lauderdale – saw increases, at 18 percent and 16 percent.’
“Sustained price increases over the past several years are finally lifting up underwater homeowners to a point where they are financially comfortable with selling their home,” said Trulia chief economist Ralph McLaughlin. “In addition, we’ve also seen a large increase in premium inventory in several markets, such as Miami and San Francisco.”
‘San Francisco housing stock rose 19 percent over the past year, ranking seventh in inventory growth among the 100 markets tracked by Trulia.’
I bought a house in the Lafayette area in the 80s after the oil bust. 50% off! What a steal. Got fired. Found out I had overpaid by a lot.
A co-worker bought a foreclosure in Detroit in a nice neighborhood, about 50% off, and it continued its downward spiral. It recently sold, and he had to bring about $7,000 to the closing table.
Lot’s of people are going to find this out with cars they financed for 7 years when the “real” economy emerges.
Most of them will walk/send in jingle mail.
Then the banks will find out how hard it is to get blood from turnips.
Ahem…
‘Under the Freddie program, applicants will be able use the income of people who will live with them but aren’t going to be on the mortgage to qualify.’
‘In addition, income from second jobs that borrowers have held for a relatively short period will be factored in. The pilot also doesn’t require bank statements that would show a paper trail of how some borrowers save for their down payments.’
did they have this “living there” unmarried clause back in 05?
fckin WOW !
But rocketing housing prices aren’t a problem because mortgages now are so much better ….
you just need to be boning more than one chick that’s willing to pay the mortgage
hmmmmmmmmmm
Some people will say this is not subprime but I fail to see the difference.
‘Under the Freddie program, applicants will be able use the income of people who will live with them but aren’t going to be on the mortgage to qualify.’
Getting married means goodby benefits; scams-я-us.
If the couple is married and both names are on the mortgage, then the spouse’s income counts as part of the household income anyway. There’s no incentive to not marry.
So, it’s the Freddie Mac version of HomeReady. Here are the FAQ’s for HomeReady. It’s a small needle to thread: https://www.fanniemae.com/content/faq/homeready-faqs.pdf
” There’s no incentive to not marry.”
Oh there are a few.
Yeah, I was thinking I should comment on that qualifier, but I couldn’t fit it into the post. Of course I was referring to qualifying for a mortgage.
May I never become desperate enough to be the cow who gives out the milk for free.
Hmm looked up similar townhouse in area I live. Asking price is around $500,000. The similar place I rent is $2150/mo now (after two increases.) So 3% down type loan it would cost a ton more a month to buy a similar place. Seems inverted.
Tax assessment is $435K.
I think everyone is trying to cash out on the foreigners that seem to move to the area and pay whatever.
I’ve seen a huge increase in listings around my small town north of Boston. They sell in a couple weeks at most. People are definitely sensing a top.
Yup, right on time too. A lot of these buyers will be the ones who are finally out of the 5 year penalty box.
The one house I believe was purchased in 2002 or 2003 for ~$330K or so. So it’s an original owner. I bet they missed it though.
Loudoun?
to see how taxs are going visit our web
“The difference today is that…”
Isn’t it always different this time?
The Coming Ice Age - 1978 - YouTube
https://www.youtube.com/watch?v=1kGB5MMIAVA - 366k -
Warmists gonna warm.
Those Warmists were chillin.
the Velvet Underground — Cool It Down (1970):
https://www.youtube.com/watch?v=DLVaVwbQDc0
By Adam Walinsky
‘I was a Democrat all my life. I came to Washington to serve President John Kennedy and Attorney General Robert Kennedy. When the president was murdered and his brother struck off on his own, I joined his Senate campaign and staff as his legislative assistant and speechwriter, until his presidential campaign ended with his own assassination. I ran on a (losing) Democratic ticket in the New York state elections of 1970. When I was working to enact my own program of police reform in the 1980s and 1990s, then-Governor Bill Clinton was chairman of my National Committee for the Police Corps.’
‘This year, I will vote to elect Donald Trump as president of the United States.’
‘So profound a change, and a decent respect for old friendships, requires me to deliver a public accounting for this decision.’
‘Here it is. John and Robert Kennedy devoted their greatest commitments and energies to the prevention of war and the preservation of peace. To them that was not an abstract formula but the necessary foundation of human life. But today’s Democrats have become the Party of War: a home for arms merchants, mercenaries, academic war planners, lobbyists for every foreign intervention, promoters of color revolutions, failed generals, exploiters of the natural resources of corrupt governments. We have American military bases in 80 countries, and there are now American military personnel on the ground in about 130 countries, a remarkable achievement since there are only 192 recognized countries. Generals and admirals announce our national policies. Theater commanders are our principal ambassadors. Our first answer to trouble or opposition of any kind seems always to be a military movement or action.’
‘Nor has the Democratic Party candidate for president this year, Hillary Clinton, sought peace. Instead she has pushed America into successive invasions, successive efforts at “regime change.” She has sought to prevent Americans from seeking friendship or cooperation with President Vladimir Putin of Russia by characterizing him as “another Hitler.” She proclaims herself ready to invade Syria immediately after taking the oath of office. Her shadow War Cabinet brims with the architects of war and disaster for the past decades, the neocons who led us to our present pass, in Iraq, in Afghanistan, Syria, Libya, Yemen, in Ukraine, unrepentant of all past errors, ready to resume it all with fresh trillions and fresh blood. And the Democrats she leads seem intent on worsening relations with Russia, for example by sending American warships into the Black Sea, or by introducing nuclear weapons ever closer to Russia itself.’
‘In fact, in all the years of the so-called War on Terror, only one potential American president has had the intelligence, the vision, the sheer sanity to see that America cannot fight the entire world at once; who sees that America’s natural and necessary allies in this fight must include the advanced and civilized nations that are most exposed and experienced in their own terror wars, and have the requisite military power and willingness to use it. Only one American candidate has pointed out how senseless it is to seek confrontation with Russia and China, at the same time that we are trying to suppress the very jihadist movements that they also are attacking.’
‘That candidate is Donald Trump. Throughout this campaign, he has said that as president, he would quickly sit down with President Putin and seek relaxation of tensions between our nations, and possible collaboration in the fight against terrorists. On this ground alone, he marks himself as greatly superior to all his competitors, earlier in the primaries and now in the general election.’
‘Moreover Trump marks himself as a man of singular political courage, willing to defy the hysteria of the Washington war hawks, the establishment and the mainstream media who daily describe him as virtually anti-American for daring to voice ideas and opinions at variance with their one-note devotion to war.’
We have American military bases in 80 countries, and there are now American military personnel on the ground in about 130 countries, a remarkable achievement since there are only 192 recognized countries.
Yup. All empires go on forever, until they don’t.
“We have American military bases in 80 countries…”
Any of ‘em secular?
Racis.
http://www.cnbc.com/2016/09/21/troops-prefer-trump-and-even-johnson-over-clinton-new-poll.html
When people talk about how superior Clinton would be as Commander in Chief at handling US security based on her “experience”, they might want to take a look at what those in uniform think.
It’s easy to make such statements from the comfort of your faux-leather office chair. When you are making a judgement while wearing Kevlar, it carries a tad more weight.
For perspective, HRC underperformed Obama by about 10 points (Obama polled in the mid-20’s).
“Mortgage-finance giant Freddie Mac and two nonbank lenders are loosening income and documentation requirements for mortgage applicants in a new pilot program. The changes announced Monday are designed to help boost mortgage originations among first-time buyers, applicants with low-to-moderate incomes and those who live in underserved areas.”
Haha… underserved areas aka el-barrio and ghetto; it’s different this time.
Wood tells people “don’t wait for prices to go down. That’s not going to happen in the short term.’ If you’re in the market for a new house, Wood’s advice ‘would be to get into a home as soon as you can.’”
Ripped right out of the Real Estate “Reasons to buy in ‘05″
‘Realizing there were no other options, he decided to create his own startup — Point — that would allow investors to take equity shares in residential homes.’
http://finance.yahoo.com/news/vc-backed-startup-wants-to-unlock-an-18-trillion-asset-class-170825734.html
Yellon the f***** C***!
I am sorry people like Yellon, Bernake et all have made me lose any respect for humanity.
She’s not that bad. You’re overreacting.
I think you have a typo there - understandable, as the h and the j are right next to each other.
Vancouver empty home tax to include Airbnb properties
The maximum fine for evaders set at $10,000
by Laura Kane, The Canadian Press
September 21st, 2016
Online only.
VANCOUVER – Vancouver’s proposed empty homes tax would include secondary properties being booked on the vacation rental website Airbnb, with the maximum fine for people who evade the levy set at $10,000.
New details of the tax emerged on Tuesday, when council voted to push ahead with public consultations. Mayor Gregor Robertson stressed the aim was to free up supply in the city’s crunched rental housing market.
“Ultimately, the goal is to get thousands of units back into rental housing at a time when it’s almost impossible to find a rental home,” Robertson told council.
The province granted Vancouver the authority to create the tax in July, months after a city-commissioned report found that about 10,800 homes were sitting empty, most of them condos.
Staff have been speaking with experts and researching other jurisdictions’ taxes and presented a report Tuesday with their suggested approach. The levy would be the first of its kind in Canada.
http://www.moneysense.ca/spend/real-estate/vancouver-empty-home-tax-would-include-airbnb-properties/
The terrifying signs of a looming housing crisis
By Yoav Gonen
September 20, 2016 | 9:23pm
The number of New Yorkers applying for emergency grants to stay in their homes is skyrocketing — as the number of people staying in homeless shelters reached an all-time high last weekend, records show.
There were 82,306 applications for one-time emergency grants to prevent evictions in fiscal 2016, up 26 percent from 65,138 requests the previous year, according to the Mayor’s Management Report.
The city’s fiscal year runs from July 1 to June 30.
http://nypost.com/2016/09/20/more-new-yorkers-apply-for-emergency-grants-to-stay-in-their-homes-report/ - 293k -
But the economy is flying for those 1%’ters!
If Angelina would chill she and Marion could have a Brad sandwich. No need to sell the mansion(s) at a loss.